CAP reform: slowly but…

Commissioner Fischer BoelThe more time she has to develop her policies, the better is my impression of Commissioner Fischer Boel. The Financial Times reports on 30th December (find the article here) that she acknowledges the end of full farmer salaries through CAP subsidies. Fischer Boel foresees that farmers will in the future receive parts of their pay through the farming subsidies while they would probably need other incomes on top of that.

Even though she is still a bit reluctant to touch the current budgetary agreement lasting until 2013, at least she works on the reforms she can implement without another IGC-style agreement. Firstly, she prepares for the end of the shameful export subsidies at latest by 2013. Secondly, she tries to end with intervention buying in product markets where I always wonder why the EU has any subsidies from the start (e.g. wine).

What I don’t understand though is what the 2008-review rhethoric is all about as long as she doesn’t want to touch the more central concerns of the 2013 agreement such as export subsidies and ceilings? Maybe she just needs a bit of public pressure to gear up reforms further internally?

2 thoughts on “CAP reform: slowly but…

  1. Liza Sant'Ana Lima

    I think that if the EU agriculture commissionner does not want to touch export subsidies it is simply because at the WTO the EU has already agreed to phase out all forms of export subsidies by 2013. What the EU needs is to stop being hypocrite and assume that the CAP is a trade distorting policy that must stop existing.

  2. Jan Seifert

    Unfortunately, the WTO rounds seems to be stuck, so we won’t have an official commitment to end export subsidies. This is why we need to keep up the pressure on this front – as well as others!
    Unfortunately, other big players like the US, Japan, Norway, Switzerland etc use other mechanisms to protect and oversubsidise their agriculture. This also needs to be addresses. However, I agree with you that this is not a tit-for-tat issue but of our own interest to get rid of this CAP once and for all.

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