News




The German Greens are planning to increase the Value Added Tax on meat

The German Greens, with the support of some MPs from the center-right and center-left parties, are planning to increase the value added tax (VAT) on meat in order to promote sustainable livestock farming and strengthen animal welfare. According to the proposal, VAT should rise from the current 7% to 19%, the profit from higher VAT should strengthen animal welfare. The far-left parties are opposed to the proposal for fear that the increase in VAT could adversely affect consumers with lower purchasing power. However, agricultural experts from the German Environment and Conservation Federation said that a VAT increase of 19% is unlikely to reduce consumer demand for meat, given that meat prices are now relatively low.
More information is available here.

The European Commission should publish Member States' positions on bee protection guidelines in September 2019

The European Ombudsman, Emily O'Reilly, has extended the deadline for the European Commission to publish EU Member States' positions on bee guidelines, the so-called Bee Guidance Document. Guidelines were presented in 2013 by the European Food Safety Authority (EFSA), but Member States have not yet agreed on criteria for introducing stricter rules on the use of pesticides that are harmful to bees. The position of the Member States was to be published by the Commission by 10/08/2019 and the Ombudsman extended the deadline until 13/09/2019. Both NGOs and the Green Party in the European Parliament insist on speeding up the implementation of the guidelines, Member States' positions should be public, according to environmental organizations, and published without further delay.

The European Commission has promised to provide EUR 1 billion to European farmers as compensation for any losses caused by the conclusion of a trade agreement with Mercosur countries; the compensation could be financed from the budget of the Common Agricultural Policy

Commissioner for Agriculture and Rural Development Phil Hogan said that the European Commission will allocate EUR 1 billion to European farmers, which should be used to compensate for losses in the event of market disruption in the context of the EU trade agreement with Mercosur. However, the European Commission has not yet provided any further information on this extraordinary support, according to some sources, this is only a step the Commission is taking to ensure support of European farmers for the trade agreement. Indeed, the Commission has not yet given detailed information on from where the EUR 1 billion will be allocated in the event of market disruption - to date, this could be funded from the CMO Regulation, indirectly, and money for the support could be allocated from the general CAP budget. The Spanish NGO ASAJA has already objected to this possibility, calling it absurd, particularly in the context of the already proposed cuts to the CAP budget. The CAP budget could fall by as much as 15% in the next programming period, while Commissioner Hogan warned that Britain leaving the EU could cause a deficit in the EU budget of up to EUR 12 billion. The Spanish ASAJA therefore refused to cut the CAP budget and stated that any compensation for losses due to the Mercosur trade agreement should be financed from sources outside the CAP. The EU agreement with Mercosur and the Commission's proposal to compensate farmers for losses of EUR 1 billion have also been criticized by a number of MEPs and the Italian NGO Confagricoltura.
Summary of trade agreement with Mercosur is available here.

Irish farmers will have to reduce their carbon footprint in order to achieve extraordinary financial support of EUR 100 million; compensations will also be paid for slaughtered animals in the period from September 2018 to May 2019

The European Commission and Ireland have promised Irish cattle farmers’ compensation of EUR 100 million in the event of market disruption caused by the United Kingdom leaving the EU. Last week, Irish Minister of Agriculture Michael Creed said that cattle farmers in Ireland have been confronted with uncertainty, market volatility and low prices since last autumn. Creed also provided more detailed information on extraordinary support for Irish farmers who would have to reduce their carbon footprint to qualify for compensation. Farmers will have to reduce the production of nitrogen fertilizers from cattle breeding by 5% per herd, the reduction will have to take place from 1 July 2020 to 30 June 2021, and production will be compared with the level of nitrogen fertilizer production from 1 July 2018 to 30 June 2019. Furthermore, subsidy shall be granted for each slaughtered adult animal that has been slaughtered between 24 September 2018 and 12 May 2019, compensation will be granted at a rate of EUR 100 per animal, up to a maximum of 100 cattle slaughtered per herd. In addition, the aid will be granted to suckler cows which have calved during 2018, with aid up to EUR 40 per animal, up to a maximum of 40 cows per herd. Breeders of bovine animals intended for milk may not claim compensation if their herds are larger than 40 head of cattle.
More information is available here.

Belgian MEP Marc Tarabella strives to set up a European Food Forum to bring together MEPs, farmers and trade and food processors representatives to discuss food policy

Belgian MEP Marc Tarabella (S&D) seeks to provide support for the establishment of a European Food Forum in the European Parliament, which should bring together MEPs from the EP Committees on Agriculture and Rural Development to discuss food policy; environment, public health and food safety; the internal market and consumer protection; industry, research and energy; and trade. Representatives of these Committees would meet regularly with other members of the Forum, including farmers, food and beverage processors, trade representatives, NGOs and researchers. Membership for MEPs should be free of charge; other members should pay between EUR 500 and EUR 10,000. The first meeting of MEPs who would be interested in establishing the Forum should take place in the second half of September, and the Forum could be officially opened in November 2019.