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Brussels plans 'dramatic' overhaul of Common Agricultural Policy
The Observer ^ | July 03, 2005 | Nick Mathiason

Posted on 07/03/2005 4:14:27 AM PDT by knighthawk

The European Commission is planning a radical overhaul of the Common Agricultural Policy. The CAP currently costs European taxpayers £30 billion. In the midst of an attack on the controversial EU farm subsidy regime from Tony Blair, Brussels is attempting to reassert its political leadership of the 25-member trading bloc by putting on the table proposals which could dramatically alter the CAP.

The Commission is floating the possibility of using its upcoming CAP review process to reduce farm subsidy payments to individual farmers. To replace this, the Commission proposes to increase payments for regional rural development.

The move, revealed by well-placed Agriculture Commission sources, could transform the subsidy regime and raise the economic prosperity of Europe's countryside. It could see the EU partner national governments and regions to channel grants. If approved, money will flow east to the poorest part of Europe .

The reform will appeal to the British government's agenda and could ultimately enable a UK government to offer up its £3bn rebate. Number 10 last night reiterated its demand for 'reform of the CAP to be part of overall Budget reform' but said it would not happen overnight.

France will inevitably fight the proposals, though some analysts believe that once President Chirac leaves office wider reform will be possible.

The Commission is also considering limiting the maximum CAP payment to €300,000. This was previously rejected by Germany and Britain. UK opposition to this appears to undermine its CAP reform credentials.

The CAP review negotiations begin in 2008. EU agriculture subsidies have come under attack from Britain after European leaders failed to agree a budget framework last month.

The majority of EU farm subsidies are handed out to the richest farmers. Not only does it mean that surplus food is dumped on the world market, reducing prices, but the CAP works against smaller agriculture businesses.


TOPICS: News/Current Events
KEYWORDS: agricultural; cap; eu; europe; europeanunion

1 posted on 07/03/2005 4:14:27 AM PDT by knighthawk
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To: MizSterious; rebdov; Nix 2; green lantern; BeOSUser; Brad's Gramma; dreadme; Turk2; keri; ...
Europe-list

If people want on or off this list, please let me know.

2 posted on 07/03/2005 4:14:53 AM PDT by knighthawk (We will always remember We will always be proud We will always be prepared so we may always be free)
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To: knighthawk

"The European Commission is planning an overhaul of their agricultural policies."

This is another clear case where socialist theory is again proved unworkable. As long as agriculture is in the hands of bureaucrats it will continue to barely muddle along.

For over 75 years the criminals in the Kremlin with total power over people, prices, wages, materials and all of the means of production and distribution could not find a way to do what a 7-11 Convenience store located in the remotest corner of Idaho could do: Meet demand with supply and make a profit!

But of course, the European Commission have never been to Idaho.


3 posted on 07/03/2005 5:38:33 AM PDT by R.W.Ratikal
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To: R.W.Ratikal

I'm in total agreement with your post #3.

I'll only add what, to me, is one of the key statements in the article:

>>> It could see the EU partner national governments and regions to channel grants.>>>

Still more agencies involved that way, and the money gets eaten up by government workers. And still more confusion in making decisions and relating them to the farmers. Government red tape. Money wasted. This is partially what caused starvation in the USSR, and the fall of the communist government.


4 posted on 07/03/2005 8:02:11 AM PDT by kitkat
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To: knighthawk

This sounds like a big win for Blair and a defeat for Chirac.


5 posted on 07/04/2005 11:39:30 AM PDT by Owl558 (Please excuse my spelling)
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