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5 key concepts behind the brand new agricultural regulation of the EU Commission

5 key concepts behind the brand new agricultural regulation of the EU Commission
ANNOUNCEMENT

What the European Commission is meant to disclose at this time marks solely the primary part of a radical transformation that may redefine the widespread agricultural coverage (CAP) within the middle.

In some ways, imminent modifications are the fruits of the reforms began in response to the protests of farmers, targeted on simplification and discount of conditionality.

Now, these efforts are pushed to their logical excessive.

However, the EU agriculture commissioner Christophe Hansen faces a demanding highway to go, for the reason that reforms must be seen as dramatics.

At the middle of the displacement is an unprecedented simplification: the restrict can be absorbed in a single fund – financing mechanisms beforehand distinct such because the cohesion coverage or subsidies for EU fishing – in a unified collection of supply guidelines for the herbing of funds.

One of essentially the most symbolic modifications is the abolition of the lengthy -standing hood construction constructed round two pillars, a construction going down by the 1999 reform.

For “traditionalists”, this can be a critical blow.

Despite the clear logic on the foundation of this revision: simplifying the EU agricultural regulation – the brand new structure of EU agricultural subsidies can be among the many most advanced components of the following EU funds.

Here are 5 key concepts behind the reform:

1. Evolution in the direction of the revolution

Since it got here into workplace, Commissioner Hansen has repeatedly harassed that the following hood could be an “evolution, not a revolution”. But actuality appears to contradict his rhetoric.

The new construction – and particularly the transition to a single fund and the elimination of robust conditionality – has left many within the stunned sector, given the beforehand average place of Hansen, which has loved the help of the principle events involved.

In fact, it’s a combination of each.

The reform is actually an evolution, primarily based on the current simplification measures launched after the protests of the farmers of final yr.

The new supply mannequin, for instance, additionally intently displays the present system agreed in 2021 on the idea of 27 nationwide strategic plans.

However, these “evolutionary” components have now crystallized in an unlimited scale revolution: a single background, a single funds and a conditionality on the EU stage.

2. The “nice fusion” is extra delicate on agriculture

Another well timed improvement happened: the merger of regional funds and agricultural subsidies.

Both CAP and cohesion coverage, which symbolize two thirds of the EU funds, will now be folded in a wider single fund.

For the agricultural sector, the impression is softened.

A hoop fence mechanism ensures {that a} minimal share of the fund stays meant for agriculture, defending it from funds flexibility that may have an effect on different areas akin to cohesion coverage extra considerably.

Although agriculture acquired a particular consideration, the push of the Von der Leyen Commission for the unconventional simplification of this system has confirmed unstoppable.

3. Rural improvement continues to be there (however not as a pillar)

Since 2000, the restrict has operated with a two-pillar system, separating direct funds (the so-called first pillar) from rural improvement tasks (often known as the second pillar), with the latter financed by means of multi-annual and co-financed packages.

The new EU funds proposal would get rid of the “second pillar” of the hood, however this doesn’t imply that rural improvement will utterly disappear.

Based on the brand new hooding structure, rural improvement actions akin to help for small farmers or agricultural measures will proceed, however not as a part of a definite “pillar” with its distinctive political targets.

Critical components akin to terminology, structural division and basic side have disappeared, though the substance of rural improvement (together with its co -financed attribute) stays.

4. Losing the “C” in chap

The threat of rebirth – the place the “widespread” half in widespread agricultural coverage begins to fade – has grown from the earlier reform of the capital proposed by the then agricultural commissioner Phil Hogan and agreed by the legislators in 2021.

This threat is now a actuality.

Post-2028, the implementation of the CAP can be primarily based closely on the bilateral negotiations between the European Commission and the person Member States.

Other influential actors, particularly native authorities but additionally the European Parliament, could have just a few say.

With the Member States that acquire vital autonomy on the way in which the funds are spent, the restrict is turning into more and more nationwide of character, which might undermine its “widespread” targets.

5. Family foundations with some new twists

Some components of the fundamental restrict will stay intact.

Income help primarily based on the realm and help for coupled income-Central traits of direct funds, will nonetheless be underway (with few modifications).

The disaster reserve, launched within the final reform to face market shocks or catastrophes, additionally survives.

But there are additionally new options.

In specific, all Member States can be required to determine agricultural rescue companies.

These will present help when farmers are unable to work on account of illnesses, childbirth or household help accountability, with the co -financing of nationwide governments.

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