The reform of the EU agricultural policy – at the expense of the farmers, a comment by Mrs Monika Kleickmann

A new reform of the EU agricultural policy still lays ahead. As a part of the alterations planned by the EU commission, the direct financial assistance shall be converted to general payments at an amount of approximately 30 thousand million Euros to be paid per year. Those payments shall be fixed according to a certain period of reference. Seeing the agricultural production as well as the market of land and lease, the consequences for agriculture could be incalculable.

According to Mr Fischler, EU commissioner for agriculture, it is planned to restack a fifth in total of the financial assistance mentioned above as from 2004. The money shall be paid into aid programmes for the rural country. This shall be done in steps of 3 percent per year. As regards future planning, it is intended that the EU shall hold back the money. It will then be redistributed among the EU countries, according to various objective criteria. On the one hand it is incomprehensible that payments for agriculture shall be cut, because they are subject anyway to annual loss in value due to inflation. On the other hand, restacking the takings is very questionable. In this context, it will be very interesting to know what will be the objective criteria for restacking the money. In addition to that, an upper limit is planned for financial assistance. This limit is programmed to be 300,000.00 Euros per year. The money saved through this cutting would then be available for free handling for the government of every receiving country. This kind of regulation would hit the large farms in particular and would mean severe disadvantaging for the new German lands. Even the tax allowances resulting from the number of employees will only be of little help.

With regard to the new instructions for the financing of programmes scheduled for the rural country and to the planned cuts on some agrarian markets, further potential for saving money might arise, indicated Mr Fischler. This rash readiness for saving money causes serious damage to the EU agriculture and thus hits rural country for the worst.

According to what Mr Fischler said, all subsidies shall be abolished which are now paid for the storing of cereals, for purchases done by the state to support rye and the special subsidies paid for the cultivation of hard wheat outside the traditional areas of cultivation in the Mediterranean region. Upon untying the matter, stricter conditions are planned for the protection of both animals and the environment. Furthermore, conditions for food quality and land management shall be stricter. What this really means is: less money for more work and worse conditions with regard to the global market! The sell-out of agriculture by means of the protection of animals, environment and land cannot be a serious concept for the EU agrarian policy!

With regard to the WTO negotiations, Mr Fischler emphasised that it would be necessary to enter these discussions in an offensive way and offer a counter-proposal to what the Americans suggest. What he expected from the proposals for reform to be published by the European commission on July 10 would be positive new impetus for the negotiations with the World Trade Organisation. By no means! That who puts his tail between his legs and runs even before negotiations start and eats humble pie with the negotiating parties cannot be taken seriously as a representative of the European agriculture in such company.

The following changes are planned:

·direct payments for the untying of production
·cut by annually 3 percent with restacking for rural development
·cut as from 300,000.00 Euros of financial assistance
·tax allowance of 5,000.00 Euros for the first two employees and 3,000.00 Euros for all other employees

Market policy:

·price reduction for cereals by 5 percent
·abolition of financial assistance for storing
·abolition of subsidies for rye
·cancellation of financial assistance for production of hard wheat