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Last week, the Belgian Presidency presented another compromise proposal to the Member States on new genomic techniques, the compromise was on the issue of patentability. The compromise text was negotiated on 22-23/05/2024 with the aim of breaking the deadlock on the regulation and relaxing the existing GMO rules for plants obtained by new genomic techniques. One of the most problematic parts of the proposal remains the issue of patentability. The proposal presented by the European Commission in July 2023, and on which the European Parliament adopted its position in February 2024, distinguishes between the NGT1 and NGT2 categories (see European News of 11/02/2024 for details). The NGT1 category should be regulated more lightly, similar to conventionally bred plants, while the NGT2 category should continue to be regulated in line with the GMO rules. There is now a dispute between Member States as to whether or not the NGT1 category should be exempted from patentability (the European Parliament supported the patentability ban). The Presidency therefore produced a compromise proposal which complied with the non-patentability requirement - plant breeders applying for NGT1 status would have to prove that they have not applied for a patent, according to the proposal. However, following the latest negotiations, the agreement at member state level continues to be blocked by Poland, Austria, Croatia and Slovakia, among others, countries with a blocking minority.
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The European Union is preparing for the swift approval of a trade agreement with Mercosur after the European elections on 06-09/06/2024, according to Brussels' chief negotiator Rupert Schlegelmilch. Schlegelmilch is continuing to negotiate with Mercosur countries to ensure that all requirements are met and problematic issues are resolved. He said the agreement is currently very much alive.
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The Special Committee on Agriculture has supported changes to cross-compliance rules under the Common Agricultural Policy to reduce the administrative burden on farmers. Germany abstained, arguing that the proposed measures undermine the environmental ambitions of the CAP. Germany believes that the reduction of red tape is necessary and that the adjustments to GAEC 8 are needed, but that the policy objectives of the European Union, including the Green Deal, should not be undermined. Despite Germany's abstention, the necessary legal changes will be included in the country's national strategic plan for the coming year. Now only the EU Council needs to endorse the rule change, on 13/05/2024 during the Education, Youth, Culture and Sport Council.

The future budget of the European Union (Multiannual Financial Framework) will need to be able to address new challenges and unexpected problems, according to Budget Commissioner Johannes Hahn. Hahn said there is a need to ensure that the budget has the necessary flexibility and appropriate speed to respond to new challenges, and there should be a debate on whether the EU is currently funding the right priorities with the right instruments. He said the Union should strengthen the revenue side, including through new own resources.

On 03/05/2024, the European Commission published a report on the short-term outlook for EU agricultural markets for spring 2024. The effects of the climate and geopolitical crisis are having an impact on productivity, trade, consumer demand, prices and, as a consequence, farmers' income. Input prices continue to remain above pre-Coronavir crisis levels despite declines. Fertiliser production in the EU is recovering, but imports remain high. The food price index has decreased compared to 2022, but has not yet fully impacted food prices. However, the price index is 43% higher than in 2015 (even 65% in PL and 69% in LT). EU cereal production is projected to increase by 3% to 278.5 million tonnes in 2024/25. Sugar production will be higher at 15.6 million tonnes, sugar consumption is not yet increasing due to persistently high prices. Despite the declining number of dairy cows in the EU (-0.5%), milk supply is expected to remain stable (+0.4%). Per capita beef consumption in the EU fell to 9.7 kg in 2023 (-4.7% compared to 2022), consumption is also expected to fall by 2.8% in 2024, with production falling accordingly. Pork production fell by 6.6% in 2023 and the decline could slow to 0.4% this year. Poultry meat consumption increased by 3% in 2023 and is expected to rise by a further 2% in 2024.
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