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Editorial |
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“Another CAP is possible!”
momagri proposes countercyclical tools to stabilize farmers’ revenues
and fight against the destructive effects of price volatility
momagri Editorial board
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The CAP reform project presented by the European Commission on October 12, 2011 appears as a
temporary text seeking to maintain a budgetary status quo. It does not answer the strategic challenges of the 21st century. These challenges require an efficiency that must be at the same time economic, social and environmental. Based on assumptions that agricultural prices will remain high, the current proposal only partially includes mechanisms to regulate agricultural markets and fight price volatility.
Yet, prices will definitely be highly volatile in the coming years — whether downward or upward — similarly to the extreme price variations observed in 2008 and 2010. Ironically enough, the crisis currently affecting the European Union could well give the opportunity for a new CAP that is to effectively fight the extreme volatility and encourage a quantitative as well as qualitative production.
Momagri believes that another CAP is possible, that can improve the competitiveness of European agricultural markets. The share of the budget currently allocated to SPS would be reoriented toward tools to manage agricultural markets according to a countercyclical approach. The budget of this alternative CAP would be flexible enough to allow for a market-oriented policy that prevents and deals with imbalances, without producing overruns for the multi-annual financial framework.
Below, you will find a link to download momagri’s proposal for the CAP. The document outlines the basic principles of momagri’s proposal as well as our first estimations for the budget impact of this proposal. More budget simulations will be added in the upcoming weeks, based on alternative scenarios.
Download the document “Another CAP is possible”
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