Weapons instead of food: EU wants to restructure agricultural budget.

Farmers demonstrated in Brussels yesterday. The reason: The EU budget in the next Multiannual Financial Framework (MFF) is set to be restructured. For farmers, this could mean budget cuts, as funds are also expected to flow into defense.

The Brussels plans are significant: The agricultural budget could apparently be combined with several other funds into one large pot. This could redirect subsidies and grants from the Common Agricultural Policy (CAP) to other projects - such as the procurement of weapons or the reconstruction of Ukraine. Brussels justified its plan with greater flexibility for member states: Countries are expected to have more control over their own agricultural budgets in the future. However, this greater flexibility could also have a negative impact on the agricultural sector if the reforms lead to a reduction in funds.

The agricultural policy is collapsing like a house of cards

Restructuring the EU budget into one large fund so that countries can manage their funds more flexibly threatens the core of the CAP. According to Elli Tsiforou, Secretary-General of the EU's two agricultural umbrella organizations, Copa and Cogeca, negotiations on the reforms are also expected to focus on eliminating the second pillar of the CAP. Demonstrators therefore demanded, among other things, to maintain the two cornerstones of the CAP for the financing of agricultural policy. "Without a clear and protected budget line to support the EU's agricultural framework, there is a risk that European agricultural policy will collapse like a house of cards," Copa and Cogeca stated. Together with the Fédération Wallonne de l'Agriculture (FWA) and the Dutch Boerenbond, they organized the action in Brussels.

We need your consent

This content is provided by . If you activate the content, personal data may be processed and cookies may be set.

A strong agricultural budget for a resilient Europe

"It simply cannot be that the agricultural budget is distributed among different pots. The agricultural budget must be reserved exclusively for those who work every day for our food production," said Flemish Minister of Agriculture Jo Brouns at the demonstration. A common, strong agricultural budget is important for a resilient Europe.

Von der Leyen seeks more flexibility in budget structure

Meanwhile, EU Commission President Ursula von der Leyen clarified at the EU Commission's annual budget conference on Tuesday (20.5.) that the next MFF will be significantly more flexible. According to the Commission President, this will enable the EU to react more effectively to the volatile geopolitical situation and readjust priorities. She also emphasized that "cohesion policy and the Common Agricultural Policy will be central to our next budget."

At the same time, von der Leyen talks about these policy areas being "modernized and better adapted to today's challenges." The EVP politician did not provide further details on EU agricultural policy in her speech.

In March, the heads of state and government of the member states decided that the EU should massively arm itself by the end of the decade to ensure its security. This requires nearly €800 billion.

Agora Agrar think tank sees opportunities in new budget structure

According to the Agora Agrar think tank, it is crucial for the EU's agricultural policy to finance climate neutrality and societal benefits performance-oriented. However, the instruments for assessing farmers' performance also need to be improved. A single-pillar structure would contribute to reducing bureaucracy, Agora Agrar estimates. The think tank also believes that the CAP should move away from income-oriented aid and instead turn towards an incentive system for public goods.

Building new value chains

To get closer to the goals of climate neutrality, Agora Agrar calls for the establishment of new value chains, for example in paludiculture or agroforestry. A coordinated strategy is necessary to tap into these potentials and leverage synergies between various sources of funding. Credible procedures for evaluating EU expenditures are also required. Many control systems for evaluating current environmental and climate expenditures are criticized for various weaknesses.

Evaluating expenditures for agricultural policy in detail

The think tank also calls for a more detailed assessment of CAP expenditures. The aim should be to better achieve societal goals. Among other things, it is suggested to establish a "biodiversity index" and an EU-wide benchmarking system for sustainability. The Strategic Dialogue had insisted on the latter in its final recommendations.

Decision not yet made

EU Agricultural Commissioner Christophe Hansen warned the EU Commission against redistributing CAP funds in favor of defense. "It is difficult to build a continent on an empty stomach," Hansen told the Financial Times. However, the final decision on where the funds will flow will be made by the member states and EU Commission President Ursula von der Leyen.

It could be a hot protest summer in Brussels

Larger demonstrations are expected if the CAP reforms are officially announced on July 16 and farmers continue to feel excluded from the decisions, the organizers of yesterday's demonstration announced.

With material from AgE, Brussels Signal, The European Conservative, The Brussels Times, Berliner Zeitung, Boerenbond