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U-turn on CAP reform

Brussels, May 31st. A coalition of organisations is describing the Luxemburg presidency's latest budgetary proposal recommending that rural funds should be cut by one-fifth as outrageous. The groups (BirdLife International, FoE Europe, International Federation of Organic Agriculture Movements, Eurogroup for Animal Welfare, European Environmental Bureau) are calling for the presidency's proposal, which would effectively reverse the 2003 reform of EU's common agricultural policy, to be rejected by the Council [1].

In the attempt to find an agreement on the EU budget for 2007-2013, the presidency has proposed to axe up to 22% of the rural development subsidies that help support environmentally friendly practices, like organic farming, and other methods that help preserve wildlife and improve animal welfare [2]. The proposal issued on 19 May would spare the lion's share of direct subsidies that have benefited the bigger, wealthier farmers at the expense of an already small but critical budget for sustaining the livelihoods of smaller farmers and rural areas across an enlarged Europe.

The 2003 CAP reform deal in Luxembourg shifted some funds from the first pillar to the second pillar. Only two years later, the Luxembourg presidency wants to do the very opposite: severely cut the second pillar, while keeping the first pillar intact.

Giovanna Pisano from BirdLife International said, "This irrational proposal goes against the spirit of EU agricultural policy reform, which established the need for more money for sustainable farming. If it is agreed, it will be a very sad day for rural Europe. We cannot jeopardise measures that are fundamental to sustainable agriculture and rural development." The coalition is calling on EU decision makers not only to safeguard but also increase rural development funds when they meet in June".

Martin Konecny from Friends of the Earth Europe said, "The Luxembourg presidency should encourage not hinder the ongoing policy reforms championed by the previous EU farm commissioner, Franz Fischler. We have 10 reasons to protect and increase the rural development budget - and the presidency has not given even one good reason for cutting it."

The coalition's 10 reasons are:

• Rural development funds support measures that can help meet Europe's commitments on sustainable development
• They deliver clear public benefits for the countryside
• Can play a significant role in halting biodiversity loss by 2010
• Help with job creation and keep the countryside 'alive'
• Help implement the European Action Plan on Organic Food and Farming
• Are an essential part of continued agricultural policy reform
• Reward good stewards of the countryside
• Improve farm animal welfare
• Support a wide range of beneficiaries in rural areas
• Allow a flexible and focused means to address specific needs

Contacts:

Martin Konecny, Friends of the Earth Europe, +32 2 542 01 85
Victoria Phillips, BirdLife International, +44 7803 151 132
Giovanna Pisano, BirdLife International, +44 1767 680 551


Notes:
[1] NGO statement "Ten reasons to save rural development from cuts": http://www.foeeurope.org/agriculture/publications/ten_reasons.pdf
[2] The second pillar budget for 2007-13 would be cut from EUR 88.75 billion to 69-77 billion, while the first pillar budget would stay intact at EUR 301 billion. Based on the 2003 CAP reform, EUR 7 billion would be channelled from the first to the second pillar during the same period.