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For its 50th year bash, Europe’s CAP readies another dose of ‘reforms’

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The CAP at 50 website

2012 marks the 50th anniversary of the implementation of the EU’s Common Agriculture Policy (CAP), described rather pompously by the European Commission as “a cornerstone of European integration” – well, it is true that farming has done a lot more for the idea of Europa than the euro has.

CAP “has provided European citizens with 50 years of food security and a living countryside”, the celebratory website has explained. The CAP remains the only EU policy where there is a common EU framework and the majority of public spending in all Member States comes from the EU budget, rather than from national or regional budgets, we are told. I should have expected the EU to ignore entirely the trifling matter of the steady impoverishment of European societies, especially the second and third tier Euro societies – which is particularly those countries beyond the EU-15. What has the CAP done for them, for the relative late-comers to the European idea?

But, the Eurocrats have said that “figures show that the CAP has helped see a steady increase in economic value, in productivity, and in trade, while also allowing the share of household spending on food to be halved”. Oh, that’s all right then – we were just looking at the wrong figures. Silly us.

“The CAP is a policy that has always evolved to address necessary challenges,” the pomposity continues. For example, we are told that the reform process since 1992 “has seen a move towards much greater market orientation and away from trade-distorting support” – um, did we notice a few years ago that the average EU cow (or ox) receives more by way of subventions than quite a few of the poorer humans in ‘developing’ Asia, Africa, South-East Asia and South America? Oh, sorry, wrong figures again. Bother such troublesome data.

Being the dynamic and forward-looking CAP that it is, it has also taken “into account consumer concerns about issues such as animal welfare, and the doubling of the number of farmers within the EU (following enlargement from 15 to 27 Member States)”. There we are – that’s the first tier nod to the third tier EU lot, and said ruffians should be pleased.

In October 2011, the European Commission presented its latest proposals for further reforms – haven’t we been through all this before? more reform? are you chaps quite blind to what’s happening to your favourite currency while you’ve been reforming? or is it the very latest blend from the new ultra-snob coffee bistro in Brussels that’s to blame? – to the CAP.

What, pray, are these 50th anniversary, limited edition reforms all about? At “addressing the challenges of today and tomorrow: food security; climate change; the sustainable use of natural resources; balanced regional development; helping the farming sector cope with the effects of the economic crisis and with the increased volatility of agricultural prices; and contributing to smart, sustainable and inclusive growth in line with the Europe 2020 strategy”.

Alea jacta est, and especially those so for farmers and their families who live somewhere between EU15 and EU27, for this is a signal to tighten their already painfully tight belts, and salt what remains of the day’s spud.

Milestones of History of CAP (provided by the EU)

Back in 1962, several key dates marked the beginning of the CAP:
• On 14 January 1962, after 140 hours of negotiations (the first European agricultural marathon), the Council of Ministers of the Six took the decision to proceed to the second stage of the transition period, to establish common agricultural market organisations for each product, to apply specific competition rules and to create a European Agricultural Guidance and Guarantee Fund (EAGGF).
• 4 April 1962:  Following a second agricultural marathon, the texts of the regulations were adopted by the Council.
• 20 April 1962: The texts were published. The date that they came into effect depended on the start of the market season: for instance, for the common market organisation for cereals, eggs, poultry, meat and pork the date of entry into effect was 1 July 1962.
• Among the key dates since then:
• 1962: The Common Agricultural Policy (CAP) is born! The essence of the policy is to provide affordable food for EU citizens and a fair standard of living for farmers.
• 1984: Milk quotas – Specific measures are put in place to align milk production with market needs.
• 1992: “Mac Sharry” reform – The CAP shifts from market support to producer support. Price support is replaced with direct aid payments. There is increased emphasis on food quality, protecting traditional and regional foods and caring for the environment.
• 2000: The scope of the CAP is widened to include rural development. The CAP focuses on the economic, social and cultural development of Europe with targeted multi-annual programmes, designed at national, regional or local level.
• 2003: “Fischler/Mid-term Review” reform – CAP reform cuts the link between subsidies and production. Farmers are more market oriented and, in view of the specific constraints on European agriculture, they receive an income aid. They have to respect specific environmental, animal welfare and food safety standards.
• 2004 & 2007: EU farming population doubles, following recent enlargements with 12 New Member States. EU’s agricultural and rural landscape changes as well.
• 2012: New CAP reform negotiations to strengthen the economic and ecological competitiveness of the agricultural sector, to promote innovation, to combat climate change and to support employment and growth in rural areas.

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