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.
Jacques Carles

Agreement on the budget for 2014 – 2020 :
a circumstancial compromise

Jacques Carles,

Executive Vice President, momagri

The summit of the 27 EU leaders reached a predictable agreement on the budget for the Multiannual Financial Framework:
    - A ceiling of € 960 billion (2011 value) on the European Union's spending, which is to say 1% of the EU’s GNI, and € 908.4 billion in member payments to the EU.
A budget cut by 3.4 % compared to 2007-2013, which is to say 34 billion in EU terms.

The highest cut was made in the CAP budget, down from € 420.6 billion in 2007-2013 to € 373.4 billion, which is to say -12,6%.

As for structural funds, these have been cut by € 30 billion, which is to say -8.5%.

Budgets for all other European policies have been globally increased by € 44 billion, which is to say 20%, and are essentially dedicated to promoting economic growth and competitiveness (+37.4%).

The French government feels it has safeguarded its essential interests, as the estimated budget allotted to France will remain more or less stable, down from € 48.9 billion to € 47 billion over the next 7 years. Given the current context, this is undeniably a good result.

The truth is that this agreement is basically a facade for a circumstancial compromise. The budgetary crisis has had devastating consequences, and a large number of European States are still on the path to recovery. As the German Federal elections approach, and the United Kingdom goes on pressing for strict budgetary restrictions, reaching beyond the financial obligations of indebted European countries and imagining a budget that would boost the economy with strategic and ambitious objectives is simply unrealistic.

In this respect, it must be noted that EU’s outstanding debt is € 250 billion, which is to say the budget execution over two years. This means the budget is chronically under-funded and therefore the virtual deficit is rather considerable.

This compromise lacks insight, as it fails to give impetus to European ambitions. A timid attempt has been made to achieve greater flexibility, as from now on payments that have not been made will be deferred to the next financial year.

This is in blatant contradiction with other countries that support ambitious agricultural policies, countries that are capable of meeting the G20’s call for agricultural production that will guarantee global food security!

Europe has been through many serious crises before now, crises which it successfully overcame by setting ambitious strategies and objectives for its farmers. The worst scenario has been avoided, but a new challenge lies ahead: defining a post-2014 CAP founded on new principles. Momagri claims it high and loud: ‘A new CAP is possible’.

Page Header
Paris, 24 June 2019