Luxembourg, 10/05/2005 (Agence Europe) - France, Spain, Portugal, Greece, Ireland, Denmark (and to a lesser extent Finland) would be the losers of possible co-financing by the Member States of expenditure on the agricultural market during the period 2007-2013 according to a table drawn up by European Commission services and revealed to the press on the fringe of the informal meeting on Tuesday in Luxembourg of EU Member State agriculture ministers. On the other hand, Germany, Italy and the Benelux countries would be the winners of such a measure recommended by Reimer Böge (CDU), rapporteur for the European Parliament on the issue of the next financial framework.
The Commission's table appears in annex to a letter by Mariann Fischer Boel, Commssioner for Agriculture and Rural Development, which was sent early March to Mr Böge on the consequences of possible cofinancing of agricultural market spending. The draft report by Mr Böge was to be adopted on Tuesday evening in Strasbourg by the members of the EP temporary committee on political challenges and budgetary means in the enlarged EU before the European Parliament's examination of the issue during the June plenary session.
In its letter, the Commission confirms its strong opposition to any cofinancing of farm spending, which would be tantamount to generally “renationalising” the CAP, striking a major blow to the main beneficiaries (France and Spain), and would bring into question the reform that was adopted with difficulty in 2003. Mr Böge, for his part, drew up a compromise amendment (which was to be submitted to vote on Tuesday evening at the relevant temporary committee), foreseeing the possibility of compulsory co-financing should needs exceed forecasts. According to the rapporteur, such a solution would make it possible to waive any doubts on the financing of farm aid to Bulgaria and Romania after their accession expected early 2007.
Ten percent cofinancing of direct farm subsidies would, over the period 2007-2013, cost France about EUR 1.4 billion, equivalent on average to about EUR 200 million annually (or an annual loss of 0.011% in Gross National Income for France), according to the Commission's calculations. Spain is expected to pay out a further 1.3 billion (i.e. annual reduction of 0.020% of Spanish GNI). Some Member Sates would have a relatively smaller loss, especially Greece (EUR 1.12 billion, i.e. -0.080% of GNI) and Ireland (530 million, or -0.054%). The other three losers would be Portugal (loss of 88 million, or -0.008%), Denmark (-173 million, or -0.011% of the country's GNI) and Finland (-EUR 4 million from 2007-2013).
The big winners of the cofinancing of farm spending would be Germany (+1.3 billion euros in absolute value over the whole of the period but only +0.007% of GNI), Italy (+551 millions) and the three Benelux countries, which would benefit from a bit of a boost by way of 0.013% of their Gross National Income, according to the Commission.
In her letter, Ms Fischer Boel considers that compulsory cofinancing as suggested by Mr Böge would have the effect of compromising the CAP's function of “solidarity”. She stresses that possible cofinancing should under no circumstances concern the new Member states (which enjoy a progressive system for the introduction of direct subsidies).