MercoPress. South Atlantic News Agency

European Parliament poises two clear positions in battle for agriculture subsidies

EU agriculture commissioner Dacian Ciolos: € 48 billion at stake

Members of the European Parliament have set out their list of demands regarding the future shape of the EU common agricultural policy (CAP), insisting that EU farm payments should not be reduced.

In adopting the non-legislative resolution in Strasbourg on Thursday, the Euro deputies also rejected the idea of a partial’re-nationalisation' of the CAP, under which national governments would co-finance farmers, together with the EU budget.

The result allies the parliament with countries opposing a radical reform of the CAP, such as France, but pits it against some in the European Commission and other member states, primarily the UK, which argue the money could be better spent elsewhere.

Agricultural payments make up roughly 40% of the EU's €120 billion annual budget, with the current farming policy set to expire at the end of 2013.

“Since the CAP will have to confront many challenges and pursue broader objectives after 2013, it is essential that the budget ... is at least maintained at current levels,” MEPs stressed in the resolution drawn up by British Liberal MEP George Lyon.

As a result of the Lisbon Treaty, the Euro parliamentarians now have an equal say over CAP reform and the creation of the bloc's multi-annual budget for first time in the EU's history, adding greater importance to Thursday's statement of intent.

EU agriculture commissioner Dacian Ciolos welcomed the result of the vote, saying the suggestions were a useful input into the commission's communication on the post-2013 CAP, expected this November.

“This own-initiative report raises important issues about the need to ensure a better balance at the heart of the CAP between food security and the efficient management of natural resources,” said the Romanian commissioner, whose appointment was supported by French President Nicolas Sarkozy.

Following the communication, the commission will come forward with legislative proposals by next June, roughly the same time it will make suggestions on the shape and size of the EU's overall budget for 2014-2020.

Amongst other measures included in parliament's resolution, MEPs called for an EU funded top-up payment for farmers who reduce their carbon emissions and adopt methods that increase the level of CO2 stored in soil.

They also said the gap between farm payments to 'new' and 'old' member states should be reduced, with farmers in countries that that joined in 2004 or later currently receiving lower levels of direct support. The MEPs said the CAP's two pillars - direct payments to farmers and funding for rural development - should stay put.