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The EU Budget and the CAP: An Agenda for the Review?

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  • David Harvey

Abstract

The promised review of the EU Budget in 2008 offers an opportunity to bring CAP financing into line with logic, justice and the rest of EU policy. Currently, the CAP is unique amongst European policies in being both mandatory and requiring 100 per cent financing by the EU budget. While this made good sense at the policy's inception, it is now an obsolete anachronism. A sensible and defensible agenda for financial reform, which is all that is on the reform agenda at present, is to make the EU budget responsible for only a fraction (say 25 per cent) of the costs of the current CAP, instead of the present 100 per cent. This would bring CAP financing into line with other EU policies, and make member states separately responsible for the balance for their own farmers, as they so wish, up to the CAP budgetary ceiling already agreed. Any resulting competition between member states in the extent and means by which they continue (or not) to support farmers through direct payments would be controlled through EU Competition and single market policies. Such competition would also provide a good opportunity for experiments with policy development, to the advantage of all, since different policies are required for the different stages of development and different local conditions now evident within the EU. Les modifications du budget communautaire prévues pour 2008 nous donnent la possibilité de remettre les modes de financement de la PAC en conformité avec la logique, la justice et le reste de la politique européenne. A présent, la PAC, au sein des politiques européennes, présente l'originalité d'être à la fois obligatoire et financée à 100% par le budget de l'Union. C'était sans doute nécessaire au début de la construction européenne, mais c'est maintenant un anachronisme périmé. Ce serait un programme intelligent et facile a défendre pour la réforme budgétaire‐ que de laisser le budget communautaire responsable d'une fraction seulement (par exemple 25%) du budget de la nouvelle PAC, au lieu des 100% actuels ‐ Ceci mettrait le financement de la PAC sur le même pied que les autres politiques européennes, en rendant les états membres séparément responsables chacun de leurs propres agriculteurs, s'ils le souhaitaient dans la limite des plafonds budgétaires décidés en commun. Il faudrait alors faire contrôler par les autorités communautaires et les règles du marché unique, toute éventuelle concurrence entre les Etats membres en ce qui concerne l'ampleur avec laquelle ils continueraient ou non à fournir des paiements directs à leurs agriculteurs, et les moyens utilisés pour cela. Une telle concurrence, du reste, constituerait un bon terrain d'expérimentation à l'avantage de tous sur les politiques de développement, dans la mesure où différentes solutions doivent être appliquées aux différents stades de développement et aux différentes conditions dont la variété est maintenant évidente dans l'Union. Die versprochene Überprüfung des EU‐Haushalts im Jahr 2008 bietet Gelegenheit, die Finanzierung der GAP mit Logik, Gerechtigkeit und allen anderen Bestandteilen der EU‐Politik in Einklang zu bringen. Die GAP ist zurzeit verglichen mit den anderen EU‐Politiken einzigartig, da sie sowohl obligatorisch ist als auch zu 100 Prozent aus dem EU‐Haushalt finanziert werden muss. Während dies zu Beginn sinnvoll war, handelt es sich nun bei dieser Politik um einen veralteten Anachronismus. Eine vernünftige und vertretbare Agenda für die Finanzreform, dem derzeit einzigen Punkt auf der Reformagenda, hat zum Ziel, das EU‐Budget lediglich mit einem Anteil (sagen wir 25 Prozent) der Kosten für die aktuelle GAP anstatt der jetzigen 100 Prozent zu belasten. Dadurch wäre die Finanzierung der GAP mit den anderen EU‐Politiken vereinbar, und jeder Mitgliedstaat wäre selbst für den Ausgleich seiner Landwirte im Rahmen der bereits vereinbarten Obergrenze des GAP‐Budgets verantwortlich, wenn sie dies wünschen. Ein daraus folgender Wettbewerb zwischen Mitgliedstaaten hinsichtlich des Umfangs und der Mittel, mit welchen sie weiterhin ihre Landwirte durch direkte Zahlungen unterstützen (oder nicht), würde von den EU‐Politikmaßnahmen für Wettbewerb und Binnenmarkt kontrolliert werden. Ein solcher Wettbewerb böte ebenfalls eine gute Gelegenheit, mit der Entwicklung von Politikmaßnahmen zu experimentieren, wovon alle profitieren würden, da unterschiedliche Politikmaßnahmen für die nun offensichtlich unterschiedlichen Entwicklungsstufen und unterschiedlichen örtlichen Bedingungen innerhalb der EU erforderlich sind.

Suggested Citation

  • David Harvey, 2006. "The EU Budget and the CAP: An Agenda for the Review?," EuroChoices, The Agricultural Economics Society, vol. 5(1), pages 22-27, April.
  • Handle: RePEc:bla:eurcho:v:5:y:2006:i:1:p:22-27
    DOI: 10.1111/j.1746-692X.2006.00022.x
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    References listed on IDEAS

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    1. David R. Harvey, 2003. "Agri‐environmental Relationships and Multi‐functionality: Further Considerations," The World Economy, Wiley Blackwell, vol. 26(5), pages 705-725, May.
    2. Harvey, David R., 2004. "Policy dependency and reform: economic gains versus political pains," Agricultural Economics, Blackwell, vol. 31(2-3), pages 265-275, December.
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