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Representatives of the United Kingdom informed the European Commission last week of the decision not to extend the transitional period, during which the same rules apply to EU-UK relations as before Brexit. The European Union, on the other hand, was in favour of extending the transitional period. The transitional period should therefore end at the end of this year (it could be extended until the end of 2021).

On 27/05/2020, the European Commission presented Next Generation EU budget totalling €750 billion (NGEU, €500 billion in direct grants, €250 billion in loans) and a new Multiannual Financial Framework. Under the NGEU, the Commission proposes to strengthen the budget of the European Agricultural Fund for Rural Development by €15 billion (€16.5 billion in current prices) to support structural change in rural areas to comply with the Green Deal. Under the MFF, the Commission proposes to strengthen the budget of the first pillar of the CAP by €4 billion (€4.5 billion at current prices) and the second pillar by €5 billion (€5.6 billion at current prices). In total, for the post-2021 CAP, the Commission proposes €348.3 billion at constant prices (€391.4 billion at current prices), with the European Agricultural Guarantee Fund (first pillar, direct payments) reaching €258.3 billion (€290,7 billion at current prices), the European Agricultural Fund for Rural Development (second pillar) will reach €90 billion (€100.6 billion at current prices). Member States will be able to transfer up to 15% between the pillars. Co-financing for the second pillar will be allowed at 70% for less developed regions, 43% for other regions, 65% for AEKO, 80% for LEADER, and 100% for funds transferred from the envelope for direct payments. Regarding €15 billion from the NGEU for the second pillar the Commission states that the measures and objectives for which these funds will be used must be included in the national strategic plans for the CAP, funds will be available when the new CAP enters into force (i.e. not during the transitional period), and it will be possible to use them only for a period of two years until 2024. The allocations for individual Member States are not yet known, funds under the second pillar will be allocated according to the same key as in 2018.
More information is available here.

EU agriculture ministers will discuss the Farm to Fork Strategy and the EU Biodiversity Strategy at an informal videoconference of ministers on 08/06/2020, also a new draft of the Multiannual Financial Framework will be discussed. The Commission presented both strategies on 20/05/2020. Janusz Wojciechowski, Commissioner for Agriculture and Rural Development, and Stella Kyriakides, Commissioner for Health and Food Safety, will also take part in the ministerial discussion.
More information is available here.

On 02/06/2020, the European Parliament's Committee on Agriculture and Rural Development discussed with the Commissioner for Budget and Administration Johannes Hahn the Commission's proposal to strengthen the CAP budget. Mr Hahn emphasized that increased funding for the CAP should achieve the European Green Deal's climate, environmental and food safety objectives. Hahn also said he would support the introduction of mandatory capping in the CAP negotiations.
More information is available here and here.

On 04/06/2020, the European Parliament's Committee on the Environment discussed with the Commissioner for Agriculture Janusz Wojciechowski the CAP and the achievement of the objectives of the European Green Deal. The Commissioner expressed concern about the concentration of the agricultural sector - thousands of small farmers are disappearing due to the growth of large farms and the industrialization of the agricultural sector, and the Commissioner also criticized intensive agricultural production. According to the commissioner, agriculture has become only a "factory" for meat and agricultural production, which also carries risks associated with food safety. Sylwia Spurek (S&D, PL) and Anja Hazekamp (GUE / NGL, NL) supported the reduction of livestock production and its support under the CAP. The Commissioner emphasized that the Commission would promote sustainable meat production, organic farming, and the strengthening of animal welfare rules; The Commission will also strengthen support for small farmers.
More information is available here.