Brussels, 03/01/2003 (Agence Europe) - Adopting its opinion on the mid-term review of the CAP (rapporteur Adalbert Kienle, Employers' Group, Germany) at its December plenary session, the European Economic and Social Committee broadly supported the targets set out by the Commission, welcoming the desire to strengthen the idea of multifunctionality within the CAP. The ESC expressed scepticism, however, about the possibility of justifying another cut in cereal prices of 5% on the world market price.
More specifically, in terms of the full uncoupling of compensation payments from production, the ESC stresses it is difficult to predict the economic and structural repercussions of such a measure. Recognising that it might give farmers greater freedom in planning their activity, the ESC feels that full decoupling and regrouping of direct payments under a single farming premium can neither meet the demands of multifunctional agriculture nor sustainably guarantee direct payments and hence proposes in-depth examination of other ways of extending direct payments.
In terms of pursuing WTO negotiations, the ESC recommends that the Commission maintains the position it has defended to date, namely the existence of a link between the traditional trading debates and demands purportedly not linked with trade. The ESC feels it is vital the candidate countries be associated with the consultations over the mid-term review.