News




Commission Proposes €302 Billion CAP Funding and Doubles Agricultural Crisis Reserve in 2028-2034 MFF

The European Commission proposed the Multiannual Financial Framework (MFF) 2028-2034, setting a maximum commitment of €1,763 billion. The proposal includes €302 billion for agriculture, rural areas, and fisheries, with the agricultural crisis reserve doubling to €900 million annually. The MFF aims to strengthen EU autonomy, deliver policy priorities, and boost crisis response capacity. The proposal also introduces new revenue streams to phase out GNI-based contributions.
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Danish Presidency Sets Council Priorities on CAP Simplification and Post-2027 Planning

The Danish Presidency outlined its priorities for the next six months at the Agriculture Council, emphasizing the simplification of CAP rules and reduction of administrative burdens for farmers. Preparing the post-2027 CAP, including plans to merge it into a single fund focused on competitiveness and ecological transition, will be a central task. Additional discussions will address a European protein strategy, new genomic techniques, animal welfare, and efforts to combat antimicrobial resistance. Commissioner Christophe Hansen urged swift agreement on CAP simplification, highlighting potential savings of up to €1.58 billion for farmers.
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Commission to Propose 2028-2034 MFF with Possible 10-20% CAP Cut and Internal CAP Resource Shift

The European Commission will present its Multiannual Financial Framework (MFF) proposal for 2028-2034 on 16 July 2025, as internal negotiations enter their final phase. While the structure and total funding for the Common Agricultural Policy (CAP) have not been finalized, the Commission is preparing several scenarios that could see CAP funding reduced by 10-20% compared to the current period. Final details on the allocation of funds between CAP chapters remain undecided. Agriculture Commissioner Christophe Hansen told the European Parliament in Strasbourg that difficult negotiations are expected, with inevitable trade-offs between ""winners and losers."" He confirmed the Commission’s support for a distinct CAP budget and maintaining its two-pillar system: direct income support and rural development. Hansen underlined the importance of keeping CAP common rather than fragmenting it into national envelopes or merging it with cohesion policy, an idea still debated. He warned that boosting support for young farmers and generational renewal will require shifting resources within the CAP. Concerns persist that simplifying rules and increasing flexibility may weaken environmental requirements tied to direct payments. Alongside the MFF, the Commission is working on an EU budget reform, proposing to merge up to 14 existing programs into a European Competitiveness Fund (ECF) aimed at strategic areas such as defence, artificial intelligence, and space, with critics warning this could threaten basic research funding. The reform also seeks to improve crisis response, such as aid for Ukraine, with new tools like the Ukraine Reserve and more flexible use of unspent funds. The draft MFF Regulation would change how spending ceilings adapt to inflation, using a fixed 2% deflator for inflation between 1-3% and actual forecasts outside that range. A major budget challenge is the annual €25-30 billion repayment of NextGenerationEU debt, starting in 2028 and running until 2058, placing further strain on EU finances and increasing pressure for new own resources.
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Council to Discuss Danish Presidency Priorities, 2026 Fishing Quotas, Market Situation, and Protein Diversification

The Agriculture and Fisheries Council (AGRIFISH) will hold its first meeting under the Danish Presidency on 14 July 2025 in Brussels. Ministers will review the Danish Presidency’s work programme and priorities for the second half of 2025, focusing on easing the daily lives of farmers, fishermen, and food producers. The Danish Presidency will emphasize regulatory simplification, better regulation, and innovation to support the green transformation and foster a resilient, market-driven sector. Key fisheries objectives include timely adoption of fishing quotas for 2026. The agenda features a discussion with an introductory European Commission briefing on the current market situation for agricultural commodities and food products. The Commission notes relative market stability but highlights concerns regarding adverse weather, animal disease, and ongoing geopolitical tensions. Several delegations plan to address import flows from Russia and Belarus, as well as wine market challenges. A central item is a public debate on initiatives to diversify protein sources for food and feed, aiming to reduce the EU’s reliance on imported protein feed—particularly soya meal—whose supply is impacted by Russian aggression against Ukraine. Under Other Business, Agriculture and Food Commissioner Christophe Hansen will report on the outcomes of the EU-African Union Ministerial Conference in Rome (27 June 2025).

Commission Sets Draft 2040 Climate Target for 90% Emissions Reduction

On 2 July 2025, the European Commission proposed a binding 2040 target of a 90% net reduction in greenhouse gas emissions compared to 1990 levels, advancing the EU's climate neutrality goal. The draft law mandates policy updates to ensure feasibility, limiting international carbon credits and enhancing domestic carbon sinks. Linked to the Clean Industrial Deal and Competitiveness Compass, the proposal aims to decrease fossil fuel dependency and boost economic resilience.
More information is available here.