At a high-level press conference today, Copa and Cogeca Presidents warned of the unacceptable cuts in farm spending caused by the new proposals on the future EU budget 2014-2020 from the President of the Council. Agriculture makes a huge contribution to the EU 2020 strategy for growth and employment and these proposals run counter to this, jeopardising food security and employment in EU rural areas.


Speaking in Brussels at the Conference, Copa President Gerd Sonnleitner insisted "The EU agri-food sector employs some 40 million people and it is central to economic recovery and stability in Europe. More and more farmers and agri-cooperatives are going out of business, constrained by high production costs which are often not covered by market prices, poor weather conditions and extreme market volatility. Farmers in Europe also have to comply with high food safety and environmental standards which imports to the EU do not have to meet. Farmers' incomes are half the average level of earnings in other sectors and food demand is on the increase. These latest proposals would result in huge cuts in direct payments to farmers of up to 30% in some countries which is totally unacceptable, and risks threatening food security and causing increased unemployment".   


Cogeca President Christian Pees stressed "Agriculture spending, which is less than 1% of EU public expenditure, has been falling continuously for many years whilst other countries like the US, China and Brazil are investing strongly in their agricultural sector to maintain competitiveness, economic growth and feed an increasing population. Under the new Multiannual Financial Framework (MFF) proposals tabled by President of European Council, Mr Herman Van Rompuy, there would be a further cut in agriculture expenditure, on top of the EU Commission proposals which already reduce the CAP budget by 10% in real terms. This is not acceptable. EU agricultural spending must be kept at current levels until 2020, to ensure farmers and their cooperatives can continue to provide secure, safe food supplies to 500 million consumers. We also need a speedy decision on the MFF and the CAP.  Farmers are currently delaying production and investment decisions because of uncertainty about the future CAP and if this continues it will have disastrous impact on employment in related sectors as well as market stability."

EU Commission President Barroso, together with many MEPs, have also called for a strong, modern, competitive CAP in the future with a good budget behind it. This is more important than ever in the current economic crisis.

The move comes as heads of state and governments debate the issue at the EU Summit.

Tweet