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On 10/11/2020, the European institutions launched trialogues on the CAP reform. By the end of this year, three more trialogues will take place in addition to the CAP Strategic Plans-on 19/11/2020, 01/12/2020, and 10/12/2020. A trialogue on the Common Market Organization should take place on 02/12/2020. During the first so-called super-trialogue, the Executive Vice-President of the European Commission, Frans Timmermans, also emphasized the need to strengthen the ambitions of the new CAP, move towards sustainability and strengthen the role of eco-schemes. Timmermans mentioned that 20% of beneficiaries receive a total of 80% of all CAP funds, which was opposed by the German Minister of Agriculture, Julia Klöckner, who currently chairs the Agriculture and Fisheries Council. The allocation of funds for agri-environmental measures in the second CAP pillar could be problematic - according to the Commissioner for Agriculture and Rural Development Janusz Wojciechowski, the Council's proposal to fully include ANC areas in the proposed 30% for agri-environmental measures in the second pillar is a step back. Inclusion of ANC areas in agri-environmental measures in the second pillar also reject European environmental NGOs, which call the Council's proposal greenwashing. Other topics on which the European institutions do not currently agree will include support for the wine sector. In its opinion on the CAP, the Council agreed to extend the scheme for authorizing the planting of vines until 31/12/2040. Under the current CAP, the scheme is due to expire in 2030, with a revision in 2023. The Council's position was supported by declarations by 11 major wine-growing countries calling for the scheme to be extended until 2050. However, the European Commission rejects the extension of the scheme on the grounds that there are no political or economic reasons for the extension and that, on the contrary, the access of new investors to the sector is restricted.
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The Greens' political faction in the European Parliament, together with environmental NGOs from across the EU, has intensified pressure in recent weeks towards the European Commission to withdraw CAP reform proposals. However, the Commission is not united in responding to this pressure. Earlier last week, Commission President Ursula von der Leyen assured her that she did not plan to withdraw CAP proposals. According to von der Leyen, it will be possible to set the new CAP in line with the European Green Deal and the strategies for biodiversity and Farm to Fork during the EP, EC and Council trialogues. However, on 13/11/2020, Commission Vice-President Frans Timmermans said that if the CAP were not in line with the Commission's vision for green architecture, he could personally support the withdrawal and recasting of CAP proposals. Among the requirements for the new CAP, Timmermans also included an allocation of at least 30% of the envelope for the first pillar for eco-schemes. The European agricultural think tank Farm Europe has stated that withdrawing proposals at this point, where the proposals are already being discussed in a trialogue, would be contrary to EU law. MEPs from the European Parliament's largest political faction EPP (Peter Jahr, DE; Herbert Dorfmann, IT; Norbert Lins, DE; Anne Sander, FR; a Juan Ignacio Zoido, ES) have already spoken out against the Commission's divergent position and supported von der Leyen's earlier statement and rejected the parties' threats to the possible withdrawal of CAP proposals by Timmermans.
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On 10/11/2020, the European Parliament, the Commission and the Council reached an agreement on the MFF and the Recovery Plan, which also includes exceptional support for the agricultural sector of EUR 7.5 billion for the second pillar of the CAP. Of the EUR 7.5 billion earmarked for agricultural policy, 37% of the funds must be used for climate- and environment-friendly initiatives, and 55% for support for young farmers and for investment in rural areas, digitalisation, and sustainability. The funds will be disbursed during 2021 (30%) and 2022 (70%). The European Union should finance up to 100% of eligible actions, Member States will not have to allocate any additional funds from national budgets for these investments. Support for start-ups under rural development programs should also be increased from EUR 70,000 to EUR 100,000. The agreement must now be formally approved by the Council and Parliament, probably during the December part-sessions.
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On 12/11/2020, the European Commission published an evaluation of the mandatory country of origin labelling system for meat and meat products. According to the European Commission's conclusions, labelling is an important tool for providing information to consumers, while not having a negative impact on the European Union's internal market. The evaluation of mandatory country of origin labelling of meat and meat products is part of a comprehensive evaluation of the Country of Origin Regulation for fresh, chilled and frozen pig meat, sheep meat, goatmeat and poultry meat, which should be available in early 2021. The resulting evaluation is likely to have an impact on forthcoming adjustments to the related Farm to Fork labelling regulations.
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The pig price is falling rapidly throughout almost the European Union under the pressure of a weakening market, the closure of the HORECA industry following Covid-19 measures, increased pork production and the spread of African swine fever in the EU. The pork market is significantly affected by, among other things, insufficient capacity in slaughterhouses (in Germany alone, more than a million pigs are waiting to be slaughtered) and restrictions on exports to China. However, the price of meat in Germany remains stable at 1.27 EUR/kg, which worries other Member States, including Denmark, France, and Austria. The Austrian Association of Agricultural Processing Producers (VLV) drew attention to suspected disproportionate dumping offers from Germany.
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