Fischler reviews the outcome of the EU summit on agriculture
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CTA. 2002. Fischler reviews the outcome of the EU summit on agriculture. Agritrade, December 2002. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52540
Agriculture Commissioner Franz Fischler took the...
Agriculture Commissioner Franz Fischler took the opportunity of a debate in the European Parliament on November 6th to review the outcome of the EU Summit in relation to the agriculture sector. He argued that the summit established a firm financial framework for future CAP reform and for the incorporation of new EU members into the CAP. He denied that the summit deal had buried the proposal for the de-coupling of direct aid payments from production. It is now clear that reforms in the dairy, sugar, olive oil, tobacco, wine and cotton sectors will have to be financed within the new budget ceiling, as will 70% of the direct aid payments to be made to new member states. However, it should be noted that no limits were set on expenditures under the rural development envelope, which can be expanded in parallel with the reform process. Comment: The Summit agreement limited the expansion of expenditures under the first pillar of the CAP to 1% per annum above the 2006 level for the period from 2006 to 2013. However it should be noted that these limits do not include expenditures under the second pillar (rural development), for which no ceilings have been established. The European Commission has already announced its intention of increasing expenditures under the second pillar from 10% to 20% of CAP expenditures over the coming period The removal of rural development expenditures from the total agricultural budget to which the new ceilings on expenditures on market-support measures apply, would appear to provide additional scope for an increase in market-support measures, since 10% of current expenditures are devoted to rural development. In addition the budget saving made on export refunds in recent years as a result of changes in the €/US$ exchange rate provide additional scope for an increase in expenditures on market support measures over the 2006-2013 period.