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Last week, another round of negotiations on a future EU-U.K. trade deal, again without any major progress. Representatives discussed a level playing field, the overall governance of the future partnership, the criminal and security partnership and fisheries. The European Union and the United Kingdom must decide by 01/06/2020 whether enough progress has been made or whether a transitional period will need to be extended. The current transitional period lasts until the end of this year, if necessary, it can be extended by one year.
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European Commission Executive Vice-President Frans Timmermans said last week that the ongoing COVID-19 pandemic is likely to delay the deadline for presenting the Farm to Fork Strategy and the EU Biodiversity Strategy. According to Timmermans, the strategies should be submitted with a delay of several weeks (not months), the new expected date is 20/05/2020 (originally 25/03/2020, then postponed to 29/04/2020). The new date is still not confirmed, more information should be known after the publication of the Commission's updated work plan over the coming week.
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On 23/04/2020, EU leaders discussed the financial possibilities of the rescue fund and the updating of the proposals of the Multiannual Financial Framework for the period 2021-2027. The Council supported a common and coordinated approach against the pandemic, welcomed the Joint European Roadmap towards lifting of COVID-19 containment measures, and committed itself to monitoring developments. The Council also emphasized the need to ensure a fully functioning Single Market and an unprecedented investment effort. According to the President of the European Council, Charles Michel, it is of utmost importance to increase the strategic autonomy of the Union and produce essential goods in Europe. The Council agreed to set up a fund to support economic recovery, which shall be of a sufficient magnitude and targeted towards the sectors and geographical parts of Europe most affected. The European Commission should therefore analyse the current situation and submit a proposal as soon as possible. The President of the European Commission, Ursula von der Leyen, said that to finance the recovery, she will propose increasing the ceiling of the EU’s own resources from 1.2% of the EU’s GNI to 2%. The draft of MFF and the Recovery Plan should be submitted on 06/05/2020, and according to Ursula von der Leyen, the Recovery Plan should be included in the draft MFF. The Recovery Fund could reach € 323 billion, for example Horizon 2020 (Horizon Europe) and the capacity to use innovative financial instruments and investment programs should be strengthened. So far, the informal proposals only mention adjustments to the Structural Funds budget, not the Common Agricultural Policy.
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On 22/04/2020, the European Commission confirmed the introduction of exceptional measures in the form of three delegated acts and nine CAP implementing acts to help address and stabilize the situation in the agricultural and food markets during the outbreak of the coronavirus. The package of measures also includes a private storage aid for meat and dairy products, or flexibility for market support programmes in the fruit, vegetables and wine sectors. The aid should total around € 80 million, of which around € 30 million will go to support the dairy sector (costs will be covered mainly by the EU budget for 2020). The dairy, flower and potato sectors will also be granted an exceptional derogation from European competition rules - the Commission will allow the use of Article 222 of the Regulation of the European Parliament and of the Council establishing a common organization of the markets in agricultural products. The new measures should be adopted by the end of April 2020 but must first be approved by the EU Member States. The European Parliament's Committee on Agriculture and Rural Development welcomed the Commission's decision but emphasized that much more needed to be done to help the sector. The same opinion was taken by European agricultural organizations, including the largest one, Copa and Cogeca.
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France (as well as organizations representing wine producers) called on the European Commission last week to introduce support for wine sector in the light of the ongoing coronavirus pandemic. The aid should be intended especially for the storage of unsold goods and should also be used to compensate for the fall in production prices. According to the FR and IT, the Commission's support under the proposed market measures of 22/04/2020 will not be enough, therefore enhanced support for the sector beyond the promised measures should be ensured. At the beginning of last week, the European Commission discussed support for the sector with representatives of the European Parliament, discussing exceptional storage measures, emergency distillation, flexibility in green harvesting and alternatives to on-the-spot checks.
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