The decision to allocate the money to the support package for member states hit by the Ukrainian agriculture influx according to quantitative, rather than qualitative, criteria shows the risk of ‘politicising’ a portion of the EU’s farming subsidies.
You’ve probably read about this story before – either on our website or everywhere else – since the news was so big that it was covered by media outlets across the globe.
Less than a month ago, five EU ‘frontline’ countries unilaterally suspended the import of agricultural commodities from Ukraine, complaining that their farmers were hit by the influx of these goods.
To defuse a potential political crisis, Brussels decided to come to terms and make deals with these countries – despite being most likely in breach of both EU and international law – instead of triggering infringement procedures.
The Commission announced a new €100 million support package to the ‘frontline’ countries – although it was unclear how the EU executive worked out that figure to compensate farmers.
It was already suspicious that it took just over 48 hours from the announcement of the package to the definition of its financial envelope, while calculations for a similar support measure in the recent past took several weeks and an intense back-and-forth with member states.
But while other details emerged, it became even more apparent that despite the Commission’s good reasons to alleviate the pressure on farmers in these member states, the package was a political, rather than evidence-based, giveaway.
The smoking gun was in the criteria for the distribution of the money among the countries involved which, according to a Commission spokesperson, was decided on the basis of two elements.
First, a purely quantitative criterion of the relative increase in Ukrainian imports of grain and oilseeds. In the previous package, qualitative criteria were taken into account instead, such as the impact on markets and supplies or the average storage capacity over 5 years as a baseline measurement.
The second criterium is the direct payment distribution key to reflect the agricultural production potential of the member states concerned.
This means, in simpler terms, that the Commission took into account the weight of each concerned country in the Union’s agricultural sector, based on the number of direct payments they receive.
These new criteria have turned the outcome completely upside down compared to the first package – the best example of this being Romania.
Bucarest wasn’t even supposed to be included in the first package. On the contrary, according to the Commission, Romania actually benefitted from the imports from Ukraine as they were necessary to compensate for lower domestic production.
In the Commission figures seen by EURACTIV, grains harvest in Romania was about one-third lower in 2022 than the five-year average, meaning that, even when adding the imports from Ukraine, there is almost 60% less maize in the country than in normal years, for instance.
In the end, Romania was included in the first package because the EU executive also considered the pressure on logistic chains on the main export hub for Ukraine exports, the Romanian port of Constanta – which ultimately led to higher transport costs and storage shortages for local farmers.
But if in the first package, Romania received only €10 million, under the new quantitative criteria the country was entitled to €29.73 million of aid.
The first controversial aspect of this situation is the risk of shifting from a technical dialogue approach toward some sort of ‘blackmail’ system.
In a sense, lengthy technical negotiations that led to the first package didn’t work for some member states, while the use of blackmail has borne fruit.
But the real slippery slope could turn out to be a certain politicisation of the agricultural reserve fund of the EU’s farming subsidies programme – which is where the money for the package came from.
The fund, with a financial envelope of €450 million per year, is not a new feature of the Common Agricultural Policy (CAP) but was never used in the past because of its previous design.
The fact that it can now be triggered could change the cards on the table.
Requesting extra support for farmers used to be a blurry issue in the past – mostly with the Commission allowing ad hoc state aid packages or market measures – while member states now already know how much money Brussels could spend for ’emergency reasons’ every year.
It means that early Agrifish EU Councils in the year risk becoming some kind of ‘grievance’ meetings in which the Commission takes note of all the requests from member states in order to plan how to spend the yearly extra €450M to alleviate their grievances.
Currently, the CAP is made up of two main items: direct payments to farmers, which together with market-related expenditures form the so-called first pillar, and support for rural development, considered the CAP’s second pillar.
We have reported that a third pillar is taking shape – the social dimension, as CAP payments will slowly be linked to compliance with minimum standards on working conditions under the so-called experimental social conditionality.
The politicisation of the use of the former crisis reserve could set up another – highly political – CAP pillar, not governed by red tape or bureaucratic quibbles, but instead ruled by those member states that speak with the loudest voice.
By Gerardo Fortuna
Subscribe to EURACTIV’s Agrifood Brief, where you’ll find the latest roundup of news covering agriculture and food from across Europe. The Agrifood Brief is brought to you by EURACTIV’s Agrifood Team – Gerardo Fortuna (@gerardofortuna), Natasha Foote (@NatashaFoote), Paula Andrés (@paulandresr_), and Julia Dahm (@dahm_julia)
Agrifood Podcast: PastEUs de nata, year of sustainable food
This week, EURACTIV’s agrifood team tells the story of a Portuguese delicacy that has a strong, unsuspecting link with a foundational moment of the EU’s integration process. We also spoke with French liberal MEP Irène Tolleret about a proposal filed by a coalition of EU lawmakers to proclaim 2024 as the European Year devoted to ‘sustainable and resilient food systems’.
Agrifood news this week
EU lawmaker: If Green Deal crumbles, it is on the centre-right’s head
The ‘crusade’ against the agricultural elements of the Green Deal by the centre-right European People’s Party (EPP) risks upsetting the balance of the established pro-European majority, according to leading liberal MEP Pascal Canfin, who urged the Commission President Ursula von der Leyen to step in. Natasha Foote has the story.
Organic farming and gene editing: Is coexistence possible?
The coexistence of gene editing with organic production systems remains a point of contention within the European Commission. While proponents of the technology maintain the two can go hand in hand, the EU’s organics sector warns coexistence requires robust traceability and liability mechanisms. Learn more.
Berlin split on gene editing ahead of Commission proposal
One month before the European Commission is expected to propose the deregulation of certain gene editing techniques, the German governing coalition remains unable to find common ground and might be forced to abstain. Julia Dahm has more.
MEPs push to dedicate 2024 as European Year of Food Sustainability
A group of MEPs advises the EU executive to proclaim 2024 as a European year of ‘sustainable and resilient food systems’ in a letter seen by EURACTIV. Gerardo Fortuna has the story.
EU lawmakers call for more inclusive school canteen options
Products available in school canteens should take into account children’s dietary restrictions such as food intolerances and allergies, which may include plant-based alternatives, lawmakers said – an issue which has proved divisive among stakeholders. Paula Andrés has the details.
A diverse gut microbiome needs uniform market, stakeholders warn
The EU probiotics industry is currently hindered by a ‘fragmented’ internal market that confuses customers and distorts the playing field for businesses, according to stakeholders, who call for regulatory harmonisation. Natasha Foote has more.
Spanish MEPs stand against citizens’ petition to ban fin trade
With Spain leading shark fishing and the manufacturing of unprocessed shark fins in Europe, Spanish MEPs took distance from their respective political groups and stood against a citizens’ petition calling for a ban on the trade of fins. Paula Andrés has more.
Agri-bites
SURely not another opinion! The European Parliament’s agriculture committee published their draft opinion on the EU’s plans to slash the use and risk of pesticides this week. The draft plan pushes for the “setting, and achievement by 2035, of reduction targets for the use and risk of chemical plant protection products”, as opposed to the 2030 target set out in the EU’s flagship food policy, the Farm to Fork. It also places a strong emphasis on the role of trade in levelling the playing field between EU farmers and imports from the rest of the world.
GI mandate. EU countries’ representatives agreed on a negotiating mandate for the Council to go into inter-institutional negotiations on geographical indications for agricultural products, wine, and spirits on Monday. Among the tweaks made to the original Commission proposal is a push by member states to remove the involvement of the EU’s intellectual property office (EUIPO) – an issue that had brought contention among stakeholders.
Dutch lessons. A delegation from the European Parliament’s agriculture committee will visit the Netherlands from Monday to Wednesday next week to meet with Dutch agriculture minister Piet Adema and discuss a range of topics, including the recent farmers’ protests. The delegation is led by committee chair Norbert Lins (EPP) and includes five MEPs from different groups.
Brazil and Ukraine export champions. Brazil and Ukraine were the main sources of the EU’s agricultural imports in January, according to the most recent outlook report published by the Commission on Thursday. Brazil represented 10% of the EU’s total imports after maize imports grew significantly following a weak harvest inside the bloc. Ukraine’s share rose to 9% of total imports, a 16% increase yearly.
Bees and pesticides new guidance. The European Food Safety Agency (EFSA) published an updated guidance document on the risk assessment of pesticides and bees at the request of the European Commission. It describes how to assess the risk to bees, bumble bees and solitary bees that are exposed to pesticides in agricultural areas.
Eating toward extinction. A new report called ‘More money more meat’ by Compassion in World Farming (CIWF) found how much high- and middle-income countries should reduce animal product consumption in order to live within planetary health boundaries. Spain, for example, tops the EU list of meat and would need to reduce its consumption by 78%, followed by Portugal and Poland. For dairy, Finland is first with a reduction needed of 74%, followed by the Netherlands and Estonia. “In the richest countries we are, quite literally, eating our way to our own extinction,” said CIWF CEO Philip Lambery.
‘Good, clean, fair’ food systems. SlowFoodEurope has published a new report on good, clean and fair food systems and their recommendations for an ambitious sustainable food systems law in the EU. Check it out here.
Put fishers at the helm. EU lawmakers approved a report led by socialist MEP Clara Aguilera asking the Commission to put forward a voluntary regulatory framework at the EU level to include fishers and producers’ organisations more closely in managing fisheries. After a week of intense protest in the fishing community against the Commission’s recent proposals, Aguilera said that ““co-management would bring an element of trust, transparency and participation to the decision-making process in Brussels.”
Fishing tracker is live! The European Commission has created a website that includes real-time data on fishing authorisations granted to external fishing fleets, including EU vessels fishing outside EU waters and non-EU vessels fishing in EU waters. Great news for transparency, according to stakeholders.
“Fat” inflation rates. Continuously high rates of food inflation were spearheaded by significant price increases for fats and oils in the first quarter of 2023, according to Eurostat data released on Monday. Prices for fats and oils this March were, on average, 23% higher than in March last year.
Agrifood news from the CAPitals
PORTUGAL
Portugal to get EU aid following drought situation. Agriculture and Food Minister Maria do Céu Antunes has signed an order recognising a drought situation in 40% of the country’s southern region, which will also activate measures to support farmers, she announced on Monday. Find out more. (Ana Rodrigues I Lusa.pt)
AUSTRIA
Austrian government, industry stumped on slowing food inflation. Austria’s government and industry leaders failed to find a consensus on tackling the ever-soaring inflation on food and drink products at a food summit on Monday. Read the full story. (Chiara Swaton I EURACTIV.at)
GERMANY
Government appoints first-ever animal welfare commissioner. The German government cabinet appointed its first-ever animal welfare commissioner on Wednesday. The commissioner is set to provide independent advice on animal welfare to the agriculture ministry and help coordinate the federal government’s work with efforts at the regional, European, and international levels. Creating the position of animal welfare commissioner will “further strengthen animal protection in Germany structurally and institutionally,” agriculture minister Cem Özdemir said in a statement. (Julia Dahm I EURACTIV.de)
SPAIN
Over 600 million euros to help farmers amidst a drought. Spain has registered almost 30% less rain than average in the past months, leading to water restrictions and the loss of crops. From the packaged announced by Spanish agriculture minister Luis Planas, and ecological transition minister Teresa Ribera, €355 million will go to meat and dairy farming, €276.7 million to agriculture and €5 million to beekeeping. (Paula Andrés | EURACTIV.com)
FRANCE
Plans for Europe’s largest onshore salmon farm divide opinions. Plans for Europe’s largest onshore salmon farm in southwest France viewed as ‘absurd and disproportionate’ by activists and touted by the company behind the project as a chance to push for EU sovereignty, have been put on the radar of the European Commission and Parliament. Read the full story.
ROMANIA
Romania revives state-owned company aiming to build fruit, veg network. Agribusiness House Unirea, a state-owned company that aims to create a national network of fruit and vegetable retailers, will be relaunched next week, announced Agriculture Minister Petre Daea after the concept failed under the previous Dancila government. Learn more.
Events
14 May | Deadline to apply to the 2nd edition of the EU Organic Awards
15 May | SCA meeting
16 May I CEJA Conference – The road to sustainability in agriculture
19 May | CAP network Twitter chat on rural youth employment
