The Hagstrom Report

Agriculture News As It Happens


EU budget proposed, rejected

The government of Cyprus, which holds the presidency of the European Union, has proposed a new EU budget with deep cuts to agriculture, but the European Commission and the European Parliament have already rejected it, according to European news reports.

The European Commission had already proposed a budget, but the one from the Cypriot Presidency had tougher numbers.

The European Commission announced that it doesn’t support “the negotiating box presented by the Cypriot presidency,” while the European Parliament stated that the presidency proposal “puts EU policies in jeopardy,” according to the webiste EurActiv.

Copa-Cogeca, the European farm and co-op lobby, called the proposal “totally unacceptable in view of rising food demand, higher production costs and substantial market volatility.”

Pekka Pesonen

Pekka Pesonen
Copa-Cogeca Secretary-General Pekka Pesonen warned that farmers are already being squeezed hard by high input costs and already are expected to do more with less under the Common Agricultural Policy.

The commission’s proposals, Pesonen said, already would mean a cut in the CAP budget of 10 percent in real terms while the Cypriot presidency is proposing further cuts and increased levels of flexibility between pillars.

“Agricultural spending, which is actually less than 1 percent of EU public expenditure, must at least be kept at current levels until 2020, to ensure farmers and their cooperatives have a viable future,” he added.

A European Union summit is scheduled November 22 and 23.