Latest news with #MFF
Agriland
4 days ago
- Business
- Agriland
Heydon committed to 2-pillar CAP but has no ‘crystal ball'
Minister for Agriculture, Food and the Marine Martin Heydon has reaffirmed his commitment to the traditional two-pillar structure of the Common Agricultural Policy (CAP), but has said he has no 'crystal ball'. The minister was speaking at his first appearance as a senior minister in front of the Joint Oireachtas Committee on Agriculture, Food and the Marine. A range of topics came up, with CAP, and its future post-2027, being one of the main issued raised by TDs and senators on the committee. The European Commission is understood to be planning a radical overhaul of the EU's long-term budget, the Multiannual Financial Framework (MFF), in which the funding to member states would be consolidated into a single funding pot, with member states then developing a plan to outline how they would use that funding. This has sparked concern that the two-pillar structure of CAP, and even a dedicated budget for the entire CAP, could be scrapped in favour of a single member state fund. The minister was quizzed on this by Roscommon-Galway TD Michael Fitzmaurice, who asked: 'The overall budget in CAP, is it going to be bigger, yes or no? Is Ireland's budget going to be bigger to accommodate it if we're going to be tweaking around on it? Are we going to have Pillar I and Pillar II, is it going to be the same system?' In answer to Fitzmaurice, the minister said: 'Apologies deputy, I left my crystal ball at home, so I don't have that, and we'd all love to know those answers. 'What I can tell you is we'll know in the middle of July. Around July 16 is when these [plans] are going to be announced, and all I can tell you is we are doing everything in our power. 'I can't be clearer – we want to maintain the [CAP] fund, we want to maintain Pillar I and II, we want a fully funded CAP,' he added. 'Will we get that?… We know all the other demands there are on other sides.' Fitzmaurice then asked if, in a situation where the CAP in its traditional form was not forthcoming, the government would be prepared to step in and 'prop it up'. Minister Heydon said: 'We could end up with so many different scenarios here… If what was leaked out in terms of a single fund was to come about…I would make the point that it would be a very bad thing. That would mean renationalisation of our system. It would actually undermine the whole [EU] single market. 'I'm not going to get into predicting what might come of what outcome, because there's so many different outcomes there can be here. 'What I can tell you right now is we are making every effort across government to put our best foot forward to maintain a fully funded cap with the traditional structure that has served our sector so well,' he added. The minister also noted that, in the second half of 2026, when the CAP budget is likely to be finalised, Ireland will hold the rotating presidency of the Council of the EU, one of the legislative bodies of the EU, meaning Minister Heydon, if he is still in office, will be the chairperson of the council of agriculture ministers during that period. He said: 'The first element of this is actually the MFF. What happens with the overall budget will totally determine what happens with CAP. 'In terms of the role we play in the agriculture council… What we do have is, in the second half of 2026, I'll be the chair of the council of ministers and, as we're working through that, we'll be working on the basis of consensus. 'I'm meeting with every other minister bilaterally to understand their priorities and so they understand our priorities… Hopefully before the end of 2026 under the Irish presidency, I;ll be in a position to get that CAP over the line by means of consensus.
Yahoo
20-05-2025
- Business
- Yahoo
EU budget needs 'a comprehensive overhaul' to handle shocks, says IMF
The EU needs to spend more on public goods to strengthen productivity and growth, said the International Monetary Fund on Tuesday. Speaking at the annual EU budget conference, Alfred Kammer, the IMF's European department director, noted that 'the scale and nature of the challenges ahead require a fundamental rethink'. Kammer suggested that the EU should raise its spending on public goods from 0.4% of GNI (gross national income) to at least 0.9%. Without cuts to existing programs, that would increase the bloc's MFF spending to 1.7% of GNI in the period from 2028 to 2034. That's up from 1.1%, Kammer added. The MFF is the EU's long-term budget which usually covers a seven year period, with the current plan running up to 2027. The IMF noted that Europe is facing a raft of challenges, notably ageing populations, the climate crisis, and a productivity slump. Rising geopolitical tensions and unpredictable US policies are further clouding the region's outlook, as the EU must become more self-sufficient in terms of security. One way to tackle these issues is by boosting growth and improving the single market, said Kammer. While goods, services, capital and people can in theory move freely between member states, the IMF warned that barriers still exist. Related IMF chief: Eurozone has tools for greater growth if it learns from US Capital Markets Union: What is it and what could it bring to Europe? 'The EU single market remains far from complete,' Kammer said at the Centre for European Policy Studies (CEPS) in a separate briefing on Monday. 'For instance, it can take up to 6 months for an EU worker who relocates to another EU country to be legally employed there. Large differences across bankruptcy procedures discourage cross-border investment, while having national stock markets introduces vast inefficiencies in the allocation of capital across the continent. This fragmentation increases costs and hurts business dynamism and growth.' The IMF said it expects growth at 0.8% and 1.2% in 2025 and 2026, a reduction of 0.2 percentage points in both years compared to the projection shared in January. It noted that inflation is decelerating and approaching targets, driven by lower energy prices and tepid demand. Regarding the ECB trajectory, it said the central bank should lower its policy rate to 2% this summer and leave it stable for the foreseeable future. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Agriland
20-05-2025
- Business
- Agriland
Watch: Farmers protest in heart of Dublin city over future of CAP funding
Farmers from all over Ireland gathered in the heart of Dublin city centre today (Tuesday, May 20) to protest over fears about the future of the Common Agricultural Policy (CAP) budget. The joint protest organised by the Irish Farmers' Association (IFA) and the Irish Co-operative Organisation Society (ICOS) took place outside the European Commission's offices in the city centre. The European Commission last week (May 14) published a large package of measures designed to 'simplify the CAP and boost EU farmers' competitiveness'. The CAP is a common policy for all EU countries and is managed and funded at European level from the resources of the EU's budget. The commission is understood to be planning a radical overhaul to the EU budget – the Multiannual Financial Framework (MFF) – as part of which the commission is planning to merge its various funding programmes into a smaller number of funds, which would be allocated all together to member states. However, the IFA has warned the commission against 'stripping away the CAP budget in favour of a single fund approach to the EU budget under the MFF'. The president of ICOS, Edward Carr, has also stressed that CAP is the 'foundation of a sustainable and competitive farming and agri-food sector in Ireland and Europe'. CAP protest The Dublin protest coincided with other protests across EU member states today that were organised by various farming organisations. The protest in Dublin was led by deputy president of the IFA, Alice Doyle, and the president of ICOS, Edward Carr. IFA deputy president Doyle believes that any changes to the CAP could have 'huge consequences' for the farming community in Ireland, and across the European Union. She told Agriland: 'It means that that budget can be pilfered at any time and money from that budget can be used for anything other than just food production. 'The CAP budget has always been there to protect food production, and food security in Europe. If that budget is not ring fenced, there is always a risk that the budget can be used for something else, and that food production will not be supported. 'At this moment, there couldn't be anything more important than food security.' According to ICOS president Carr, farming is not sustainable unless the industry is supported by the European Union. He said: 'We're proud to be farmers, we're proud of what we do, we want to continue to do it, and we want the next generation after us to be able to do it. Unless we are supported it's not possible. 'We are one of the best countries in the world to produce food, and we need to protect that. We can produce sustainably in this country, and that needs to be protected.' 'This is another crossroads, farmers are being faced with a lot of change over the last few years, farmers have embraced those changes, just as there is a little bit of settlement coming back into the change,' Carr added. European Commission The European Commission's representative in Ireland, Peter Power, reassured Irish farmers that they 'will be heard'. Speaking to farmers at the protest, he said that farmers have always been central to the European project, and that that has not changed. 'The president of the Commission (Ursula von der Leyen) has made it very clear, farmers are entitled to a fair and sufficient income. 'Commissioner Hansen came here in January to hear directly about the concerns from Irish farmers. We are in listening mode.' 'The budgetary cycle is kicking in now. Your protest comes at a timely manner, when your voice will be heard,' Power added.
Euronews
20-05-2025
- Business
- Euronews
EU budget needs 'a comprehensive overhaul' to handle shocks, says IMF
The EU needs to spend more on public goods to strengthen productivity and growth, said the International Monetary Fund on Tuesday. Speaking at the annual EU budget conference, Alfred Kammer, the IMF's European department director, noted that 'the scale and nature of the challenges ahead require a fundamental rethink'. Kammer suggested that the EU should raise its spending on public goods from 0.4% of GNI (gross national income) to at least 0.9%. Without cuts to existing programs, that would increase the bloc's MFF spending to 1.7% of GNI in the period from 2028 to 2034. That's up from 1.1%, Kammer added. The MFF is the EU's long-term budget which usually covers a seven year period, with the current plan running up to 2027. The IMF noted that Europe is facing a raft of challenges, notably ageing populations, the climate crisis, and a productivity slump. Rising geopolitical tensions and unpredictable US policies are further clouding the region's outlook, as the EU must become more self-sufficient in terms of security. One way to tackle these issues is by boosting growth and improving the single market, said Kammer. While goods, services, capital and people can in theory move freely between member states, the IMF warned that barriers still exist. 'The EU single market remains far from complete,' Kammer said at the Centre for European Policy Studies (CEPS) in a separate briefing on Monday. 'For instance, it can take up to 6 months for an EU worker who relocates to another EU country to be legally employed there. Large differences across bankruptcy procedures discourage cross-border investment, while having national stock markets introduces vast inefficiencies in the allocation of capital across the continent. This fragmentation increases costs and hurts business dynamism and growth.' The IMF said it expects growth at 0.8% and 1.2% in 2025 and 2026, a reduction of 0.2 percentage points in both years compared to the projection shared in January. It noted that inflation is decelerating and approaching targets, driven by lower energy prices and tepid demand. Regarding the ECB trajectory, it said the central bank should lower its policy rate to 2% this summer and leave it stable for the foreseeable future. Consumer confidence in the European Union and the euro area staged a modest rebound in May, according to the European Commission's Directorate-General for Economic and Financial Affairs (DG ECFIN). The flash estimate released on Tuesday showed the consumer sentiment indicator rising by 1.4 percentage points in both regions, following sharp declines in April. Nevertheless, sentiment remains substantially below its historical average, standing at -14.5 points in the EU and -15.2 in the eurozone. Markets now turn their attention to Thursday's release of flash Purchasing Managers' Index (PMI) figures from Hamburg Commercial Bank, alongside Germany's closely watched Ifo Business Climate survey. These indicators will offer a broader view of momentum across Europe's largest economies and the eurozone as a whole. Consensus forecasts point to marginal improvements across the board. Across the euro area, the composite PMI is anticipated at 50.7, up from 50.4 in April. Manufacturing is forecast to move closer to neutral territory from 49 to 49.3, while the services index is expected to edge up by 0.2 points to 50.3, potentially reinforcing the view of a shallow recovery taking shape. In France, the composite PMI is expected to edge up from 47.8 to 48, still signalling contraction. Manufacturing and services are also forecast to inch up to 48.9 and 47.5 respectively, suggesting continued weakness in domestic demand. Germany's outlook appears slightly more resilient. The composite PMI is projected to increase to 50.4 from 50.1, straddling the threshold between contraction and expansion. Manufacturing is seen improving to 48.9, while services are forecast to reach 49.5, hinting at soft but gradually recovering conditions. Further insight into German economic sentiment will come from the Ifo Institute's May business climate report. Consensus points to an uptick in the headline index to 87.4, from 86.9 last month. The current conditions sub-index is projected at 86.8, while expectations are forecast to improve to 88 from 87.4. European equities rise on Tuesday The euro rose to $1.1250, up 0.1% on the session, extending gains made last week. German 10-year Bund yields held their earlier advance, trading at 2.62%, up five basis points on the day. European equity markets posted moderate gains on Monday, buoyed by the rebound in global risk sentiment from the past week. The Ibex 35 led the region with a 1.55% daily gain by 16:20 Central European Time, supported by strength in the banking sector. The Euro Stoxx Banks index advanced 1.1%, outpacing broader benchmarks. Austria's BAWAG gained 2.79%, while AIB Group rose 2.77% and CaixaBank added 2.22%, fuelling the rally in financials. France's Cac 40 added 0.66%, Germany's Dax climbed 0.51%, and Italy's FTSE Mib edged up 0.46%, suggesting broad-based, if cautious, risk appetite across continental bourses. The Euro Stoxx 50, however, slipped 0.05%, weighed down by a mixed performance among its large-cap constituents, while the pan-European Stoxx 600 rose 0.74%.
Euronews
20-05-2025
- Business
- Euronews
EU budget chief soothes farmers fears over funding changes
Europe's Budget Commissioner sought to reassure farmers protesting outside the institution's headquarters in Brussels on Tuesday for the first time in almost a year. Farmers oppose a Commission plan to consolidate different EU funding streams, such as the bloc's farming, regional subsidy and research funds, into a single budgetary pot. While the idea has not yet been formally proposed, they fear the dismantling of the common agriculture policy (CAP), particularly of its support for rural development. During an exchange on the sidelines of the protest witnessed by Euronews, budget Commissioner Piotr Serafin met with farmers' representatives. Farmers urged Serafin to safeguard a distinct agricultural budget, highlighting the need to support small farms and address the growing challenge of generational renewal in the sector. They stressed the importance of protecting Europe's food sovereignty and ensuring that CAP retains its core identity. 'Tout est clair [all is clear],' Serafin replied in French at the end of the meeting, assuring farmers he had understood their concerns. He said he would relay their message to EU Agriculture Commissioner Christophe Hansen. 'No decision has been taken yet,' Serafin pointed out, adding that the single-pot idea is still only at the conceptual stage. He added that he remains open to dialogue and welcomed continued discussion with the sector ahead of the presentation of the budget proposal. As head of the Directorate-General for Budget (DG BUDG), Serafin is responsible for preparing the next Multiannual Financial Framework (MFF), the EU's long-term budget. The current MFF runs from 2021 to 2027, with the Commission expected to present its proposal for the 2028–2034 cycle in early July. Farmers protested during the previous MFF negotiations in February 2020, opposing proposed cuts to CAP funding. While concerns over funding levels persist, the latest protest reflects deeper anxieties about the CAP's structure. One farmers' representative warned during the meeting against giving member states too much leeway in implementing CAP – a trend reflected in recent efforts to simplify EU policies – claiming that would risk undermining the policy's unity and common EU identity. Speaking to Euronews after the meeting, a senior official for Copa-Cogeca, the EU farmers' lobby, said Serafin's openness to dialogue was a welcome outcome. However, farmers remain sceptical about the future of rural development funding, which they fear may in future be forced to compete with general regional funding in future. Hungary's parliament approved a bill on Tuesday that would kickstart the country's year-long withdrawal from the International Criminal Court (ICC). The vote formalises a process started in early April by Prime Minister Viktor Orbán, who announced his country would quit the global court that prosecutes those accused of war crimes, crimes against humanity and genocide. "Hungary firmly rejects the use of international organisations - in particular criminal courts - as instruments of political influence," the bill, submitted by Deputy Prime Minister Zsolt Semjen, made public on parliament's website, said. According to Orbán, the court is no longer "impartial" but rather a "political court". Budapest has rejected the ICC's arrest warrant against Israeli Prime Minister Benjamin Netanyahu, who is being sought for alleged war crimes and crimes against humanity in the Israel-Hamas war in Gaza. According to the warrant, Netanyahu should be threatened with arrest in ICC member countries such as Hungary. In March, Hungary defied the warrant when Netanyahu arrived in Budapest for a rare trip abroad. The ICC initiated non-compliance proceedings against Hungary in response. Budapest has openly rejected the idea of arresting the Israeli leader and called the warrant "brazen, cynical and completely unacceptable." Netanyahu, in turn, called Hungary's decision to leave the ICC a "bold and principled decision". Hungary's decision to leave the ICC will take at least a year to complete. In withdrawing, Hungary is set to become the first European country of the 125-member court to leave the global authority, and will make it the sole non-signatory within the EU as well. The court was set up over two decades ago to prosecute the world's most serious criminal cases, such as crimes against humanity and genocide. China, Russia, the US and Israel are not members of the court.
