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Monday, November 29th 2010

Analysis

A CAP reform too ambitious?

The 18th of november, Dacian Ciolos,European Farm Commissioner presented his proposals on Common Agricultural Policy reform to members of Parliament's agriculture commitee. Those proposals were welcomed by the greatest CAP defenders.

By Arezki Yaiche


A CAP reform too ambitious?
Regulation on farm products prices, stable income for farmers, competition and fight against climate change were the key components of Dacian Ciolos proposals to reform the CAP by 2013.

To see the proposals click here


By the way why do we have to reform the CAP? Lately, a lot of negative points have been associated with CAP : crisis on dairy products quotas, decreasing revenues for farmers, volatily on farm products prices, depletion of natural ressources, pollution due to intensive productions, subsidies on agricultural exports outside europe which undermine the development of an efficient agriculture in some countries. So is it maybe better to get rid of this policy?
It's definitely not a good idea. We should bear in mind the only federal policy of the EU, one of the most important in terms of budget (40% of EU budget) enabled Europe to insure its food production independance along with giving access for its citizens to diversified and sound farm products. A unique model based on the promotion of rural areas and since a few years on environment protection.

Let's try now to understand what is at stake with this CAP reform. As I am not an expert I'll try to simplify this issue.


On the one hand you have the « budget cutters », really popular in this austerity period. They aim at downsizing the CAP budget in order to rather invest in job creations and in ecological policies. How to be against jobs and environment protection?Well, the problem here tough is that it means a greater level of liberalisation for agriculture jeopardizing the life of a great number of small farms. The ones which provide us sound and diversified products comparing to the rest of the world. The biggest and most productive farms will then thrive at the expense of a less productive model but a better model in terms of environnement food quality and rural development (jobs and population would decline).

On the other hand you have the supporters of a strong CAP (such as Commissioner Ciolos). They want to maintain at least the same level of budget while better allocating the spendings. It means giving money in priority for small farms, areas where it's difficult to produce and for the adaptation to ecological friendly production process. Those objectives rely especially on a greater regulation of agricultural markets in order to insure stable incomes for farmers and on a efficient use of natural ressources. You can notice the problem here is the lack of money.

By 2011, Dacian Ciolos will give more details on his propositions to reform CAP for the period 2013-2020. Whatever the propsitions are, the CAP reform is directly linked to the resolution of the greatest issue within the EU. Without a strong and secured EU budget in the long run nothing would be achieve.



Arezki Yaïche



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