Franco-German Position on Future of the CAP Released

Last week, German Agriculture Minister Ilse Aigner signed a CAP position paper alongside her French colleague Agriculture Minister Mr. Le Maire in Berlin. The five page paper champions a strong CAP with a budget to match its ambitions. It states that the original objectives of the CAP remain valid, but that the policy should be adapted to meet both the challenges of the ‘new global environment’ and the demands of European citizens. It supports the maintenance of the current two pillar structure and advises against any national co-financing within Pillar One to avoid any risk of renationalisation.

While the paper recognises the environmental challenges facing Europe in relation to climate change, biodiversity and water management, emphasis is placed on the role that direct payments play in providing public goods and the need to retain support for farmers in mountain and other less favoured areas. In light of this, the paper argues that ‘any changes of the current shape of the two-pillar model to improve the legitimity of the CAP in the society (“greening”) must have clear advantages for farmers, rural areas and environment. It should not have any financial disadvantages for Member States and farmers’. More specifically the position encourages the investigation of insurance schemes and mutual funds, which it suggests are implemented within individual Member States’ national ceilings, to help stablise farmers’ incomes. Any debate over the redistribution of funds must take into account the sustainability of Member States’ financial position in the EU budget the paper advises, and the idea of the current EU-wide flat rate payments are rejected by the two countries.

CAP blogger Jack Thurston gives a good overview of the position paper here.

The full position paper can be downloaded here.

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23 Sep 2010




The Institute for European Environmental Policy coordinates CAP2020. It is an independent not for profit institute which undertakes research in a number of policy areas including agriculture and rural development.