Latest news with #CAP
Kuwait Times
42 minutes ago
- Business
- Kuwait Times
EU sets stage for big battle over long-term budget
BRUSSELS: The European Commission will kickstart two years of tense negotiations when it unveils its proposal Wednesday for the EU's long-term budget including funding reforms that risk renewed confrontation with farmers. EU chief Ursula von der Leyen has to balance a growing list of priorities including bolstering the bloc's security, ramping up Europe's competitiveness to keep up with US and Chinese rivals, countering climate change and paying debts due from 2028. And all of this against a backdrop of soaring trade tensions with the European Union's biggest commercial partner, the United States. The 2028-2034 budget could be worth 1.7 trillion euros, with the commission creating an umbrella 'competitiveness fund' worth over 500 billion euros, EU officials said—but with discussions ongoing, this could change. Von der Leyen could also announce a fund for Ukraine, worth up to 100 billion euros. One of the biggest challenges ahead will be over the size of the budget, as the EU's biggest—and richest—countries want to avoid paying more. But unlike in the previous budget, the EU has debts due from the COVID pandemic, when states teamed up to borrow 800 billion euros to support the bloc's economy. These are estimated to cost 25-30 billion euros a year from 2028. The European Parliament has made it clear that an increase will be necessary. 'We believe that the union cannot do more with the same amount or less. So we believe that in the end, an increase of the budget will be unavoidable,' said Siegfried Muresan, the EU lawmaker who will lead negotiations on behalf of parliament. The previous 2021-2027 budget was worth around 1.2 trillion euros ($1.4 trillion) and made up from national contributions—around one percent of the member states' gross national income—and money collected by the EU such as customs duties. Von der Leyen plans to propose new ways of raising money including taxes on large companies in Europe with annual net turnover of more than 50 million euros, according to a draft document seen by AFP. An area of fierce debate will be the large farming subsidies that make up the biggest share of the budget, known as the common agricultural policy (CAP). Brussels plans to integrate it into a new major 'national and regional partnership' fund, according to another document—which farmers fear will mean less support. The CAP accounts for almost a third of the current seven-year budget—around 387 billion euros, of which 270 billion euros are directly paid to farmers. Centralizing 'funding into a single fund may offer some budgetary flexibility, but it risks dissolving' the CAP with 'fewer guarantees', pan-European farmers' group Copa-Cogeca has said. Farmers will put pressure on the commission from the outset, with hundreds expected to protest outside the building in Brussels on Wednesday. That will raise fears in Brussels after protests broke out last year across Europe by farmers angry over cheap imports, low margins and the burden of environmental rules. Muresan, who belongs to the biggest parliamentary group, the centre-right EPP, urged the same level of funding for the CAP, 'adjusted for inflation'. The commission has stressed the CAP will continue with its own rules and financial resources, especially direct aid to farmers. Brussels could however propose reviewing how CAP payments are calculated to better target beneficiaries. For example, the commission wants to cap aid per hectare at 100,000 euros—a thorny issue unlikely to garner much support. Facing new costs and competing challenges, the EU wants to tap new sources of funding—fast. In one document, the commission suggests the bloc take a share from higher tobacco excise duties and a new tax on non-recycled electronic waste. Such a move, however, is 'neither stable nor sufficient', according to centrist EU lawmaker Fabienne Keller, critical of giving new tasks to Brussels 'without the necessary means to accomplish them'. Wednesday's proposal will launch difficult talks over the budget and is expected to 'as usual, end with five days of negotiations' between EU capitals, an official said. — AFP
Irish Examiner
2 hours ago
- Business
- Irish Examiner
CAP proposal will downgrade food production, says IFA
Farming groups in Ireland and across Europe have criticised EU plans to overhaul the Common Agricultural Payment (CAP) system under new reforms, saying the key farm payment was being downgraded. Under new budget proposals, Brussels is set to propose capping the EU subsidies a single farmer can receive each year, in an attempt to redistribute the bloc's massive farming subsidies in favour of smaller businesses. The proposal would merge the CAP's current two-pillar structure into one fund. CAP, today is worth around €387bn, or a third of the bloc's entire budget. The commission proposal would attempt to redistribute more subsidies to smaller farmers by capping at €100,000 per year the area-based income support they can receive, the draft said. It would also progressively reduce the amount paid out per hectare for those receiving the most. For example, farmers receiving area-based income support above €20,000 per year would have their subsidies above this level cut by 25%, payments above €50,000 per year would be cut by 50%, and payments above €75,000 by 75%, the draft said. Speaking from Brussels, Francie Gorman, president of the Irish Farmers Association (IFA) said what is emerging about how farming will be funded from 2027 is very concerning. 'It is clear that the EU Commission is downgrading the importance of the CAP and food production to allow for greater spending elsewhere,' he said. 'The CAP is being turned into an environmental and social policy. Support for farmers who are producing the most food is being consistently reduced. "The commission seem more interested in finding ways to cut payments to individual farmers rather than support them,' he said. 'At a time when Ireland is a net contributor to the overall EU budget, this level of investment in every parish takes on even more significance. "CAP has been the cornerstone of the multi-billion export sector that underpins thousands of jobs in regions far from the urban centres,' he said. President of the ICMSA, Denis Drennan said the 'reforms' were actually just a speeded-up timetable for the EU's withdrawal of direct supports to farming and primary food production. 'Farmers are going to suffer losses under these proposals and that is indisputable fact,' he said. He said the only absolute certainty arising out of the announcements was that high standard and sustainable food production within the EU would fall and that food prices across the EU would rise as farmers will have to seek more from the marketplace to replace the reduced supports. Mr Drennan said it was absolutely incumbent on the EU Commission to spell out exactly the implications for a typical Irish dairy or livestock farmer in terms of the financial loss under its proposals and how they expect those farmers to make a living based on the commission proposals. This is not the first time Brussels has attempted to cap subsidies, to limit payouts to big landowners and agro-industrial firms. President of the ICMSA, Denis Drennan said it was absolutely incumbent on the EU Commission to spell out exactly the implications for a typical Irish dairy or livestock farmer in terms of the financial loss under its proposals. Picture: Dylan Vaughan "In the previous CAP, roughly 80% of payments went to 20% of the beneficiaries. Past proposals to do this were rejected by EU governments concerned about their farming industries. EU countries and the European Parliament must approve the new budget for 2028-2034. The policy would set overarching EU-wide green targets that farmers must meet to receive subsidies, while obliging countries to set additional, locally-tailored conditions. The minister for agriculture, food and the marine, Martin Heydon said the complex legislative proposals will need detailed consideration. 'The commission is proposing major changes in structure that we will now study in detail in order to better understand the impact on Ireland,' he said. 'Today's publication is just the beginning of a protracted process. "Member states will, through the Council of Ministers, begin the process of agreeing a general approach to the commission's proposals, before engaging in line-by-line negotiations with the EU Parliament and the EU Commission.' Additional reporting Reuters
eNCA
2 hours ago
- Business
- eNCA
EU sets stage for big battle over long-term budget
The European Commission will kickstart two years of tense negotiations when it unveils its proposal Wednesday for the EU's long-term budget including funding reforms that risk renewed confrontation with farmers. EU chief Ursula von der Leyen has to balance a growing list of priorities including bolstering the bloc's security, ramping up Europe's competitiveness to keep up with US and Chinese rivals, countering climate change and paying debts due from 2028. And all of this against a backdrop of soaring trade tensions with the European Union's biggest commercial partner, the United States. The 2028-2034 budget could be worth 1.7 trillion euros, with the commission creating an umbrella "competitiveness fund" worth over 500 billion euros, EU officials said -- but with discussions ongoing, this could change. Von der Leyen could also announce a fund for Ukraine, worth up to 100 billion euros. One of the biggest challenges ahead will be over the size of the budget, as the EU's biggest -- and richest -- countries want to avoid paying more. But unlike in the previous budget, the EU has debts due from the Covid pandemic, when states teamed up to borrow 800 billion euros to support the bloc's economy. These are estimated to cost 25-30 billion euros a year from 2028. The European Parliament has made it clear that an increase will be necessary. "We believe that the union cannot do more with the same amount or less. So we believe that in the end, an increase of the budget will be unavoidable," said Siegfried Muresan, the EU lawmaker who will lead negotiations on behalf of parliament. The previous 2021-2027 budget was worth around 1.2 trillion euros ($1.4 trillion) and made up from national contributions -- around one percent of the member states' gross national income -- and money collected by the EU such as customs duties. Von der Leyen plans to propose new ways of raising money including taxes on large companies in Europe with annual net turnover of more than 50 million euros, according to a draft document seen by AFP. - Funding farmers - An area of fierce debate will be the large farming subsidies that make up the biggest share of the budget, known as the common agricultural policy (CAP). Brussels plans to integrate it into a new major "national and regional partnership" fund, according to another document -- which farmers fear will mean less support. The CAP accounts for almost a third of the current seven-year budget -- around 387 billion euros, of which 270 billion euros are directly paid to farmers. Centralising "funding into a single fund may offer some budgetary flexibility, but it risks dissolving" the CAP with "fewer guarantees", pan-European farmers' group Copa-Cogeca has said. Farmers will put pressure on the commission from the outset, with hundreds expected to protest outside the building in Brussels on Wednesday. That will raise fears in Brussels after protests broke out last year across Europe by farmers angry over cheap imports, low margins and the burden of environmental rules. Muresan, who belongs to the biggest parliamentary group, the centre-right EPP, urged the same level of funding for the CAP, "adjusted for inflation". The commission has stressed the CAP will continue with its own rules and financial resources, especially direct aid to farmers. Brussels could however propose reviewing how CAP payments are calculated to better target beneficiaries. For example, the commission wants to cap aid per hectare at 100,000 euros -- a thorny issue unlikely to garner much support. - More money - Facing new costs and competing challenges, the EU wants to tap new sources of funding -- fast. In one document, the commission suggests the bloc take a share from higher tobacco excise duties and a new tax on non-recycled electronic waste. Such a move, however, is "neither stable nor sufficient", according to centrist EU lawmaker Fabienne Keller, critical of giving new tasks to Brussels "without the necessary means to accomplish them". Wednesday's proposal will launch difficult talks over the budget and is expected to "as usual, end with five days of negotiations" between EU capitals, an official said. By Raziye Akkoc And Adrien De Calan
Euractiv
4 hours ago
- Business
- Euractiv
EU farm subsidies slashed in new long-term budget plan
The EU's landmark farming subsidies programme, the Common Agricultural Policy (CAP), is set to shrink by nearly 30% in real terms under the Commission's proposed EU long-term budget for 2028-2034, unveiled Wednesday. The CAP budget for the next spending period will be €300 billion, down from the current 2021-2027 budget of €387 billion. Adjusted to 2025 real prices, this represents a reduction of roughly 30%. Speaking at the European Parliament, EU Agriculture Commissioner Christophe Hansen said the amount would be ringfenced – meaning it cannot be reallocated to other policy needs. This will encompass area-based payments, as well as other types of compensation, including environmental incentives, investments, and support for young farmers, he added. Hansen described the proposal as a 'good outcome for agriculture and our farmers.' Budget cuts are not the only major change. The CAP will no longer be a standalone fund. Instead, it will be merged into a single mega-fund alongside cohesion and rural development spending, to be managed at the national level. 'Agriculture will be strengthened,' European Commission President Ursula von der Leyen said in a separate press conference, noting that in addition to the ringfenced budget, more member states could reallocate extra resources through the National Regional Partnerships, the single fund for cohesion, fisheries, agriculture and rural areas (€865 billion in total). The two-pillar structure, in place since 1999 and split between direct support for farmers and rural development, will also cease to exist from 2028, according to the proposal. There will be 'one policy and one set of measures', said Hansen, adding that this would be the end to 'limitations' to money transfers between pillars. But not all lawmakers were convinced. MEP Herbert Dorfmann, the European People's Parliament's (EPP) coordinator for agriculture, rejected Hansen's reassurances that farmers would not be worse off. 'Don't try sell us to as a success figure," he said, estimating a 25% decrease. Socialist MEPs also called for clarification. 'Where is the real increase?' asked Dario Nardella, S&D group coordinator on agriculture. What's new As previously reported, Hansen is following through on his pledge to re-think the distribution of area-based payments by reinforcing capping and degressivity mechanisms. He said the changes would allow for 'better targeted' payments, especially for those who need it the most, such as young farmers. Moreover, the minimum amount of direct payments for young farmers will increase from 3% to 6%. He said the new proposal would also improve the definition of 'active' farmer and introduce a method to better account for inflation. Additionally, a new 'farm relief service' will make it easier for farmers to take time off. What's gone Hansen announced the scrapping of the current green conditions attached to direct payments depended – the Good Agricultural and Environmental Conditions (GAECs). Instead, member states should define their own minimum sustainable practices. Environmental incentives, known as eco-schemes, are also set for a shake-up. These will be merged into the agri-environmental and climate measures (AECMs), which remain voluntary and require co-financing from member states. This story was updated.
Euractiv
4 hours ago
- Business
- Euractiv
Farmers fume as EU budget slashes agricultural funds
Farmers warn of deep cuts and a dismantled CAP as the EU unveils its next long-term budget. Euractiv is part of the Trust Project Jeremias Lin Euractiv Jul 16, 2025 18:04 2 min. read News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. While the Commission was tardy in presenting the next EU budget – keeping Brussels on edge – around 300 farmers took to the streets in protest over looming cuts to agricultural funds. The upcoming €2 trillion EU budget (MFF) earmarks €300 billion for agriculture, with an estimated reduction from 25% to 30%. Marching from Parliament to the Commission, joined by a poppy-coloured chorus chanting 'No budget, no CAP, no farmers, no security – will the Commission let us fall so easily?' and led by the EU farmers' organisation Copa and Cogeca, associations from across the bloc expressed collective frustration. Demands and fears The associations are demanding increased agricultural funding, to be ring-fenced, and that the CAP's two-pillar structure be preserved. Irish farmers' leader Francis Gorman slammed the proposal of a single fund as 'a kick in the teeth,' accusing Commission President Ursula von der Leyen of sidelining farmers. 'Get off your high horse,' he said. Secretary General of Copa and Cogeca, Elli Tsiforou, told Euractiv: 'We see a real danger of losing the common character of this policy – of losing its structure, particularly its meaningful two-pillar system that supports farmers.' Tsiforou called the cuts 'disastrous for the future of the sector,' describing them as a counterproductive move at a time when farmers should see an increase in support. 'We will return in September with renewed efforts,' Tsiforou added, as Brussels braces for the return of tractors. For Peter Meedendorp, president of the young farmers' association CEJA, it "is about the very essence of how policy is made in the EU". 'We are united in the internal market, we share environmental and sustainability legislation - so we also need a structural policy that supports the agricultural sector in meeting these shared challenges,' he said. The estimated cut in the budget "would have serious consequences for the next generation of farmers,' Meedendorp lamented. French MEP Céline Imart has already voiced her support. "If tractors have to return to Brussels to make it clear that farmers are fed up with being murdered, I will be with them." (adm, aw)
