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The Policy Framework of Agricultural Sustainability in the EU Annette Hurrelmann European Commission Directorate General for Agriculture and Rural Development


Sustainability •

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland Commission 1987)

Gothenburg European Council 2001: European Union Strategy for Sustainable Development

Sustainable development has economic, social and environmental components

CAP and sustainable development: where does CAP come from, where is it now, what are the perspectives?

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Evolution of the CAP in the Course of Time Productivity Competitiveness Sustainability The Early Years

The Crisis Years

Food security

Over production

Improving productivity Marketstabilisation Income support

Exploding expenditure International friction Structural measures

The 1992 Reform

Agenda 2000

Reduced surpluses

Deepening the reform process

Environment Income stabilisation Budget stabilisation

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Competitiveness Rural Development

Cap Reform 2003 Market orientation Consumer Concerns Farm income Rural development Environment

Florence, 19/10/2006

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CAP Reform 2003 Budget Ceilings (Brussels 2002)

Budget

Rural Development Policies

Structural improvements and competitiveness

Mechanism of Financial Discipline

Environment; quality; landscape

Decoupling Market policy and income support

Reduced market support

Establishment of Single Payment CrossScheme A. Hurrelmann,(SPS) European Commission, DG Agriculture and Rural Development, G.1 Compliance

4 Axes:

Living conditions in Rural Areas • LEADER Common Rules Florence, 19/10/2006

Modulation

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CAP Reform 2003: Integrating the Environment Agriculture and environment

SOIL AIR / CLIMATE

WATER

AGRICULTURE LANDSCAPE

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

BIODIVERSITY & HABITATS

Florence, 19/10/2006

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CAP Reform 2003: Integrating the Environment

Modulation Market Policy

Horizontal Regulation

Rural Development

Cross-Compliance LFAPayments Environmental Legislation

Good Agricultural and Environmental Conditions

Negative Incentive (penalty)

Agrienvironment measures Positive Incentive (contractual)

Investment Aid Marketing Meeting Standards

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CAP reform 2003

Adjustment of intervention levels

Reinforcing farmers’ market orientation and entrepreneurial role

Decoupling of direct payments

Improving the transferefficiency of direct payments

Cross-compliance

Enforcing standards (environment, food safety, animal welfare)

Modulation

Financial discipline

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Reinforcing rural development Consolidation of the CAP within strict limits of financial discipline

Florence, 19/10/2006

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Two pillars of the CAP

Common Agricultural Policy

1. Pillar

Market support

Direct payments

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

2. Pillar

Rural Development Policy Florence, 19/10/2006

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Rural Development Policy 2007-2013 Three core objectives: Improving the competitiveness of the farm and forestry sector through support for restructuring, development and innovation Improving the environment and the countryside through support for land management Improving the quality of life in rural areas and encouraging diversification of economic activity

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Rural Development Policy 2007-2013 Rural Development 2007-2013 ÂŤ LEADER Âť Axis Axis 1 Competitiveness

Axis 2 Environment + Land Management

Axis 3 Economic Diversification + Quality of Life

Single set of programming, financing, monitoring, auditing rules Single Rural Development Fund A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Challenges and Perspectives “Health Check“: At the time of 2003, 2004 and sugar reforms, a series of “health check” clauses introduced in final agreements Over period 2007-2009 Commission must report on: – Cross-compliance – Partial decoupling – Choice of implementation model for SPS – Certain markets (e.g. milk) “Political reality check” – not planned as major reform Opportunity to reflect longer-term vision of the CAP (post-2013) A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Challenges and Perspectives Budget Review: Invitation by December 2005 European Council to the Commission to make a full wide-ranging review in the context of the Financial Perspectives Covering all aspects of the EU budget, including the CAP, and resources, including the UK rebate Juxtaposition with the “health check�: 2008/2009 CAP budget secured until 2013 (?) CAP budget post-2013 ?

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Challenges and Perspectives 65.000

mio Euro EU-12

EU-15

EU-25

60.000

EU-27

Financial Perspective Markets and Direct Payment

55.000 Agenda 2000 (EU 15) Heading 1a

50.000

?

Brussels Ceiling 2002

45.000 Agricultural Guideline

40.000 35.000

Current Expenditure

30.000 25.000 20.000 1988

1990 1992

1994 1996

1998

2000

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

2002

2004

2006 2008

Florence, 19/10/2006

2010

2012

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Challenges and Perspectives WTO negotiations: Uncertainty over Doha Round

Scenarios: What are the policy options? What is the effect of the policy options?

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Thank you !

A. Hurrelmann, European Commission, DG Agriculture and Rural Development, G.1

Florence, 19/10/2006

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Microsoft PowerPoint - 1 Annette Hurrelmann