A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Budgetary discipline threatens the post-2013 CAP budget

5 December 2011



In the current context of economic crisis and budgetary discipline, some Member States of the European Union (EU) want to reduce the CAP budget for the 2014-20 period.

At a debate on the 2014-20 EU financial framework that was held this past November 15, Sweden did in fact request “substantial reductions” of the caps proposed for the CAP, while Germany estimated that one percent of the EU gross national income (GNI) would be adequate to fund the up-coming financial framework, the CAP contributing to the required reduction effort required as compared with the total budget of 1.1 percent of GNI during the 2014-20 period.

While we already pointed out in a recent note1 the risks borne by the U.S. budget to the Farm Bill at a time of economic and budgetary crisis, it seems that the post-2013 CAP financial support is also threatened.

Yet, it is crucial to keep in mind that the share of the CAP in the European budget––and we must remember that the CAP is the only European integrated policy––has continued to decrease, dropping from over 70 percent in 1984 to 40 percent in the 2007-13 period, and to 36 percent based on the Commission’s projections for the 2014-20 period. Such developments are not only showing the efforts made by the agricultural sector during the past forty years, but also the increasing effectiveness of each invested euro, compared with the much more costly expenditures that would be incurred by 27 national agricultural policies. With the current CAP budget accounting for only 0.4 percent of the European GNI, it seems difficult to pursue such restrictive rationale without hindering the ability of the European agricultural policy in achieving its objectives, which have never been so basic.

It is essential to carefully reconsider the possible consequences of the efforts, which are made with a purely economic and budgetary justification, to limit the CAP future capabilities, while it is precisely because of this policy and its budget capabilities that the agricultural crisis consequences were curtailed.

1 Please see momagri November 14, 2011 article at: http://www.momagri.org/UK/a-look-at-the-news/-Doing-more-with-less-the-challenge-of-the-future-Farm-Bill_1007.html

Page Header
Paris, 24 April 2019