News




After Brexit, the UK will face higher prices and reduced availability for 80% of imported food

Following Brexit, the UK will face higher prices and reduced availability for 80% of imported food, as reported by the British Retail Consortium. One of the greatest risks in the event of a disagreement with the EU (negotiations on trade agreements should start in March 2020) is the possibility of applying third country rules requiring veterinary certification for each type of animal product imported into EU markets. There is also a significant increase in administrative burdens. Bureaucratic action could be simplified if the EU and the United Kingdom agree on a zero rate agreement.
More information is available here.

President of the European Council Charles Michel presented new EU budget proposal, including allocation for the CAP, he proposes to cut the budget for rural development programs

President of the European Council Charles Michel (BE) presented on 14/02/2020 a revised negobox - proposal for financial allocations for the Multiannual Financial Framework (EU budget) after 2020. The amended proposal is the result of negotiations between the President of the European Council and national representatives; discussed at the meeting of the General Affairs Council on 17/02/2020, and subsequently during the extraordinary European Summit on 20/02/2020. In 2018, the European Commission proposed an increase in membership fees to the EU budget to 1.114% of GNP, while the European Parliament supported an increase to 1.3% of GNP. The Finnish Presidency proposed membership fees ranging from 1.03 to 1.08% of GNP (1.07% at the end of the Presidency). Charles Michel's updated proposal of 14/02/2020 is closest to the Finnish proposal - Michel proposes to set national contributions of 1.074% of EU-27 GNP (€ 1.095 trillion in commitments), this is a substantial decrease in the budget compared to the Commission proposal. The budget for cohesion policy should be maintained at € 323 billion (in line with the Finnish Presidency proposal).

Concerning the Common Agricultural Policy:

Total CAP budget 2014-2020 (EU-28) : € 411 billions
Total CAP budget 2014-2020 (EU-27) : € 382.8 billions

(currently) 1st Pillar of the CAP 2014-2020 (EU-28): € 309 billion
(currently) 1st Pillar of the CAP 2014-2020 (EU-27): € 286 billion
(currently) 2nd Pillar of the CAP 2014-2020 (EU-28): € 102 billion
(currently) 2nd Pillar of the CAP 2014-2020 (EU-27): € 96 billion
(currently) CAP's share of the total EU budget 2014-2020 (EU-28): 36.1%
(currently) CAP's share of the total EU budget (EU-27): 35.3%

Commission's proposed budget on the CAP 2021-2027 (EU-27): € 324.28 billion
(EC proposal) 1st Pillar of the CAP 2021-2027 (EU-27): € 254.24 billion
(EC proposal) 2nd Pillar of the CAP 2021-2027 (EU-27): € 70 billion
(EC proposal) CAP's share of the total EU budget 2021-2027 (EU-27): 28.5%

Finland's proposed budget on the CAP 2021-2027: € 334.2 billion
(FI proposal) 1st Pillar of the CAP 2021-2027 (EU-27): € 254.2 billion
(FI proposal) 2nd Pillar of the CAP 2021-2027 (EU-27): € 80 billion
(FI proposal) CAP's share of the total EU budget 2021-2027: 30.7%

Charles Michel's proposed budget on the CAP 2021-2027: € 329.3 billion
(Michel's proposal) 1st Pillar of the CAP 2021-2027 (EU-27): € 256.7 billion
(Michel's proposal) 2nd Pillar of the CAP 2021-2027 (EU-27): € 72.5 billion
(Michel's proposal) CAP's share of the total EU budget 2021-2027: 30%

The CAP should represent around 30% of the total EU budget, Charles Michel proposes - compared to the Finnish proposal - an increase in the budget for the first pillar of the CAP by € 2.5 billion, but the second pillar should be reduced by € 7.5 billion. The overall budget for the CAP would be 7.5% lower than the current budget (EU-27), the first pillar budget would decrease by 10.24% (EU-27), and the second pillar budget even by 24.5% (EU-27). New EU budget proposal also foresees an allocation of € 500 billion for environment and climate actions, Charles Michel proposes a budget to better reflect the European Green Deal. Spanish Minister of Agriculture, Luis Planas, has rejected proposals to cut the CAP budget, backing up the budget at the current level.
More information is available here.

President of the European Council Charles Michel supported mandatory capping of direct payments above € 100,000 for basic income support for sustainability

President of the European Council Charles Michel supported in his revised negobox the Finnish proposal to introduce mandatory capping of direct payments above € 100,000 for basic income support for sustainability – capping should therefore not concern eco-schemes, coupled payments (VCS) or aid for young farmers. Capping should be mandatory; Member States could decide voluntarily to deduct up to 100% of labour costs from the total amount before the reduction. External convergence of direct payments should follow the Commission's proposal (closing 50% of the gap to 90% of the EU average), all EU Member States should contribute to external convergence. Charles Michel also proposes to increase the transfer rate between pillars of the CAP from 15% to 20% in order to allow compensation for the reduced budget of the second pillar (Member States can strengthen co-financing of the second pillar). Transfer from the second to the first pillar may be increased to 25% if the level of direct payments per hectare in the Member State concerned does not reach 90% of the EU average.
More information is available here.

President of the European Council Charles Michel proposes taxation of non-recyclable plastic packaging in order to provide new resources of finance for the post-2020 EU budget

One of the main requests of the European Parliament for the post-2020 MFF was the creation of new own resources of revenue for the budget. In this context, President of the European Council, Charles Michel, in his proposal for financial allocations for the Multiannual Financial Framework of 14/02/2020, proposes that "a national contributions calculated on the weight of non-recycled plastic packaging waste with a call rate of € 0.80 per kilogram" and "any revenues generated by the EU Emissions Trading System exceeding the average annual revenue per Member State generated by allowances auctioned over the period 2016-2018".
More information is available here (paragraph 139, page 53).

The European Commission has revised the dates of publication of the Farm to Fork and Biodiversity Strategies, which could be published on 25/03/2020

In recent weeks, the European Commission has announced its plan to publish the Farm to Fork strategy (reduction of pesticides, antibiotics, fertilizers; animal welfare; food labelling; reduction of plastics and plastic waste) and the Biodiversity Strategy 2030 on 31/03/2020. According to the updated schedule, both strategies could be published a week earlier, already 25/03/2020. However, the Commission states that the date is not yet confirmed, therefore further changes may occur. Stella Kyriakides, Commissioner for Health and Food Safety said she would seek to set ambitious and realistic targets for reducing chemical pesticide use as part of the Farm to Fork strategy.
More information is available here.