Role of Community institutions. Any changes to the Common Agricultural Policy (CAP) should be the result of broad consensus within the EU - Community institutions and member states. In this column yesterday, I criticised what I felt was a “lack of vision” on the part of the European Agriculture Commissioner, who all too often brings up outdated commonplaces. This does not mean that the Commission as a whole cannot do better. Its first preparatory document on the CAP “Health Check” is due to come out in December. President Barroso did give a number of encouraging, albeit vague, guidelines, saying that the EU must do a good deal to safeguard its rural world and to take into account the new concerns about the environment, the quality of life and food safety (see our bulletin No.9500). To this should be added the requirement of substantial food autonomy in Europe and the concern for regional balance, and the complete decoupling between farm subsidies and production should be discarded. Some guidelines set out by Commission services seem, moreover, reasonable and justified (see our bulletin No.9473).
The attitude of the European Parliament will carry considerable weight, and will be positive if the agriculture committee knows how to play its role compared to the excessively pro-globalisation stances of other committees. Despite his nationality (British), Mr Neil Parish, who chairs the agriculture committee, seems to know what the stakes are. Much will depend on the parliamentary rapporteur (or rapporteurs).
Responsibilities of member states. At any rate, the essential role will be up to member states. The vital interests of the whole continent are at stake (I leave the United Kingdom to one side, as its attitude still seems determined by the former Commonwealth regime, when all food products came from Australia, Canada, and New Zealand, and when a high degree of food autonomy in Europe could not be considered as a strategic requirement). We must ensure that France does not appear as the only leader when it comes to safeguarding Europe's agricultural sector. France will naturally be presiding the EU Council during the second half of 2008 and it will therefore be incumbent upon France to initiate the CAP Health Check and to manage the first phase of it - that is, set it in the right direction. But it must not give the impression that it is defending national interests when it is European or global interests that are at stake.
It would be pointless to hide the fact that some of Nicolas Sarkozy's attitudes are beginning to offend certain susceptibilities. In Germany, it is pointed out that it was Angela Merkel who was adamant about, and negotiated, the agreement of the last European Council on the content of treaty reform, whereas Mr Sarkozy had first of all defended the idea of a mini-treaty. The same comment is made about the battle in favour of the real economy and industrial activity compared to financial speculation, a battle that Germany had launched in Europe well before Mr Sarkozy became President of the Republic. Criticism made in Paris about the autonomy of the European Central Bank and the supposedly harmful effects of the euro have been discarded or made more flexible, being quite unjustified. The delay announced by France regarding its budgetary balance continues to give rise to some perplexity. In Brussels and elsewhere, it is said that it would have been preferable to discuss this first of all within the Eurogroup instead of simply going ahead and announcing it. Also, France's spectacular support for nuclear energy embarrasses some member states that have a political need for greater precaution. They all have their advantages and disadvantages.
This said, Nicolas Sarkozy's own personal energy has no doubt given fresh impetus to European activity and has done some shaking up in areas that sorely needed it. The agricultural sector in particular can but gain from straight-talking, as some essential truths had been long concealed, disguised or pushed under the carpet. Mr Sarkozy's speech last week (see our bulletin No.9500) can only be broadly shared by those who have been fighting for years to have Europe give agriculture its real significance. But it must be clear that France does not defend national interests but European interests, and that it is speaking out with a view to the CAP Health Check. Next year, when it holds the EU Council presidency, it will have the task of opening the debate on this subject.
French guidelines. Mr Sarkozy stressed that “agriculture lies at the core of the challenges facing us this century: the demographic and social challenge, the food challenge, the environmental challenge and the energy challenge”. And the EU must face up to it. Mr Sarkozy clearly set out the guidelines recommended by his country. I shall summarise…
Independence and Food Security. “Europeans' food supplies cannot depend on third countries, which are, moreover, exposed to health crises and climate problems that we have no control over.”
Income. “Farmers have to be able to live from selling their products and their labour, through a genuine Community market stabilisation policy… I urge the European Commission to introduce immediately a highly-effective risk and problem management mechanism… There is no contradiction between appropriate valuation of products and a general fall in brand prices.”
Managing Markets. “Living off prices and production also means better organisation. French Minister for Agriculture Michel Barnier will be taking the initiative with a memorandum, which France will be submitting to the European Commission by the end of the year, to change competition law in a spirit of responsibility from the trade organisations and also in consumers' interests.”
A 'Food Policy'. Agriculture has to be part of “sustainable development in France and in Europe by using a genuine food policy to ensure the health standards of products… We will be taking a Community initiative to boost controls at EU borders to ensure that imported farm and agri-food products meet the standard of European products.”
At the same time, “it is essential to set out a new plan to cut the use of fertilisers and pesticides to preserve the health of users and consumers… More research is needed into food, green chemistry
and biotechnology.”
Balanced Town and Country Planning. A “true town and country development approach” is indispensable by means of a “policy to assist the creation of farm businesses and training and to help young farmers get set up. At present, one in every two farmers reaching retirement is not replaced, and this is not compatible with the global demand for farm products which will increase.”
The Doha Round Talks. “The negotiations at the World Trade Organisation (WTO) should start from healthy foundations with clear objectives. Europe cannot abandon defence of its food and farming while others defend and protect themselves… We are gradually moving even further from the initial objectives of the Doha Round. Emerging economies feel that they have only rights without duties under the current international trade system. The success of the round will depend on them. After seven years of negotiations, it is time to reintroduce important subjects for Europe like trade defence rules, investment and non-tariff obstacles. In these international negotiations I demand balance, reciprocity and the Community preference.”
Michel Barnier will open the European debate in 2008. The policy ideas of French Agriculture Minister, former European Commissioner Michel Barnier, already focus on the European and international aspect. He believes the price rise of farm staples “is probably going to last” because, although some of the explanation for it is due to the economy, “there are also structural reasons - the food needs of emerging economies (China and India) are increasing, their populations eat different types of food and there will soon be 9 billion human beings who will have to be fed so more food will have to be produced. In 2003, when I was European Commissioner, we were told that we had to cut farm production and reduce prices. The opposite applies today. (…) We must not forget the low levels of global stocks, due itself to restrictive farm policies, particularly in Europe (…) Changes in the CAP down the years led to a weakening of market regulation instruments. We need a new European agricultural plan.”
Michel Barnier also believes that the price rise “is benefiting farming in developing countries while dumping-level prices are restructuring local farming. In Europe, the price increases will enable farmers to be less dependent on aid. The current situation illustrates the extent to which the new imperatives of independence and food security are becoming more strategic for Europe. We have to redefine the CAP.” He believes that France's chairing of the EU Agriculture Council in the second half of 2008 will be “a key time to share a new vision of the Common Agricultural Policy in Europe (…) This is not simply a debate about agriculture - it concerns each and every one of us. It is a European debate first and foremost.”
I would add that in its conclusions document of December 1997, the European Council said that EU agriculture had to be “multi-functional, sustainable and spread across the whole of Europe.” The objective today is simply to respect this commitment which has been ignored or forgotten over the years.
(F.R.)