New CAP Reform To Offer More Flexibility To EU Agriculture

摘要

1. There is a significant amount of uncertainty surrounding the new Common Agricultural Policy (CAP) as EU Member States will be given more flexibility to draft their own policy interventions in the context of national Strategic Plans. 2. The impact on agricultural markets could therefore follow multiple trajectories, depending on whether countries choose to prioritise environmental objectives over income support to farmers. 3. The result of the European Parliamentary election in May 2019 likely means that the current positions adopted by the European Commission (EC) on the CAP will be maintained. However, the surge of Green MEPs could put pressure on policy-makers to uphold or prioritise environmental goals on a domestic level. 4. In any case, the new CAP policy will attempt to streamline excessively bureaucratic processes. On June 1 2018, the European Commission (EC) presented its legislative proposals for the post-2020 Common Agricultural Policy (CAP), underpinned by nine new objectives. These objectives seek to streamline bureaucratic processes, increase support for small and medium-sized farms, attract more young farmers, ensure a more equitable distribution of payments, and introduce greater linkages between farm subsidies and the provision of environmental benefits (for our previous view on the CAP see ‘Stricter Environmental Requirements Expected In Post-2020 CAP’, November 21 2017).