Brussels, 17/03/2008 (Agence Europe) - On Monday 17 March, EU agriculture ministers unanimously adopted conclusions on the common agricultural policy (CAP) “health check”. Among the points to be noted in this text is the rejection of the European Commission suggestion that subsidies for large farms should be substantially reduced. Ministers were cool about the withdrawal of market management instruments in the cereals sector. They now await the legislative proposals which the European Commission is due to adopt on 20 May. Political agreement within the Council is then likely in November 2008. Changes to CAP rules will come into force in 2009.
Two member states abstained when it came to voting on conclusions on the CAP health check: 1) the Czech Republic, which would have liked an even stronger condemnation of the Commission's suggestion that large farms should have their subsidies reduced; 2) Latvia, which wants a fairer redistribution of direct aid (by removing the main allocation criterion related to historic references). Several other new member states and Germany supported Latvia (all signed a joint declaration explaining their point of view on direct aid). Other delegations adopted unilateral declarations: - Denmark, for whom the conclusions were “not ambitious enough”, especially on decoupling of aid; - Greece, because of the adverse effects of the last reform of aid to tobacco producers (Greece's tobacco production fell from 120,000 tonnes to only 20,000 tonnes); - and Austria, concerned about planned measures in the milk sector (2% increase in milk quotas this year, and end of quotas in 2015).
In its conclusions, the Agriculture Council “welcomes” the Commission's communication of 20 November 2007 on the CAP health check. Ministers note the context in which the decision taken in the health check will be made, notably: - the European Council's decisions on the financial perspectives for 2007-2013; - the fact that the Commission describes the health check as constituting a preparatory action for the budgetary review 2008-2009. The Council considers that the Commission's communication “correctly” analyses the main developments since the reforms agreed in 2003-2004 and identifies the main challenges to the CAP in the years ahead. The Council believes that the health check should help better to align the CAP with general societal expectations and with global trends while preserving the European model of agriculture.
The Council welcomes the prospect of simplifying and improving the effectiveness and efficiency of the single payment scheme and in this regard: - welcomes the suggestion in the communication that member states should be allowed to maintain or adjust their chosen model of implementation of the single payment scheme towards a flatter rate in the period up to 2013; - invites the Commission to propose measures to further simplify the operation of the single payment scheme; - concurs with the suggestion that member states applying the single area payment scheme (SAPS) be allowed to continue to do so until 2013.
With regard to cross compliance (payment of aid on condition that certain requirements are met), member states welcome that the Commission intends to examine the provisions within current statutory management requirements with a view to removing those which are not directly relevant to sustainable farming, and to take account of the specific and diverse conditions in individual member states with regard to good agricultural and environmental conditions.
On the Commission's proposals on ceilings and degression of aid, the Council considers that “any substantial reduction of the higher level of payment could cause significant undesirable consequences in some member states”.
The Council points out that decoupling of aid (breaking the link between the premium and the quantities produced) was central to the 2003 CAP reform model. It notes, however, “the Commission's view that coupled support may retain relevance, where production is important economically or environmentally”. It invites the Commission to identify the potential balance of benefits and risks of further decoupling, on the basis of a case-by-case analysis, and to present the possible alternatives. The
Council welcomes the Commission's suggestion that specific support measures be established under a revised Article 69 of regulation 1782/2003 (on the single payment scheme).
The Council stresses how important it is for farmers that the CAP should comprise mechanisms that serve as an effective safety net. In this context, European ministers await further details of the Commission's intention regarding the possible adaptation of market support instruments of the CAP, notably those in the cereals sector, and in particular a detailed impact assessment in order to gauge the possible consequences of these adaptations including for both demand and security of supply.
The Council notes that the present system of dairy quotas is due to expire in 2015 and welcomes the suggestion of ensuring a “soft landing” for the European dairy sector thus assuring a smooth transition to a more market-oriented dairy policy and predictability for the sector. Achieving this soft landing would require: - a gradual quota increase; - possible accompanying measures; - and appropriate use of market management measures; - as well as measures to assist particularly vulnerable areas where expiry of the milk quota system would endanger continued milk production.
The Council is pleased to note that the Commission plans to suggest abolition of the set-aside requirement, whilst at the same time taking steps to preserve the environmental benefits accrued from set-aside.
The Council notes the Commission's intention to: - propose possibilities for developing optimal risk management measures including through the active participation of farmers, the private sector and though professional and industry organisations, and this without prejudice to member states' current activities in this area; - and to carry out a more general examination of risk management for the period after 2013.
The Council endorses the assessment that agriculture faces new and ongoing challenges in the area of climate change, bio-energy, water management and biodiversity. It considers it appropriate to reflect upon effective ways to promote the bioenergy sector in the EU. The Commission is invited to consider all funding possibilities, including modulation, in order to address new and ongoing challenges including through rural development measures. Finally, the European agriculture ministers are pleased to note that the Slovenian and French EU Council Presidencies intend to conclude the Health Check, taking account of the opinion of the European Parliament, before the end of 2008. (L.C.)