EST 3150 EU Policies and Political Dynamics

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EST 3150EU Policies and Political Dynamics

• Lecture 3
• Agriculture and the Management of EU Monies

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The Challenge of Devising one CAP

• The EU agricultural sector is fragmented into
  several distinct types of operation creating
  different types of output.
• Sectors range from the small and efficient
  (Denmark), large but antiquated (Greece), more
  efficient (France), insignificant (Malta and the
  UK), to modernising (Romania)

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• Differential Impact of Agriculture
• Employment in the sector ranges from a high of
  30 (Romania) to a low of less than 2 in Malta
  and the UK
• Protection of agricultural sectors is standard
  and undertaken by all developed countries as
  wealth normally accompanies an exodus from the
  land
• But protection involves heavy fund
  redistribution, higher prices, unfair trading,
  huge administrative costs and damaged external
  relations

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The Common Agricultural Policy

• CAP was devised in 1960
• Originally a Franco-German compromise
• Article 39 (Rome Treaty) envisaged
• Increase productivity
• Fair standard of living
• Stabilised markets
• Assured food supply
• Fair priced goods

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Agriculture as a Social Policy

• Agriculture is considered special
• Prices fluctuate
• Food stuffs are vital
• The CAP primarily advocated greater production
  but this out-stripped demand leading to excess
  and food mountains

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• CAP has been resistant to reform for several
  reasons
• Main beneficiaries have fought to maintain CAP
  funds (primarily France, Ireland, Belgium, Spain)
• As a highly technical area with its own
  decision-making system within the EU (as we will
  see shortly), agriculture often stands apart from
  the other policy areas and this makes
  cross-policy compromises difficult
• Farmers constitute one of the most powerful and
  formidable lobbying groups in Europe
• Farmers also represent an important minority in
  national politics, often determining the success
  of governments in coalition systems

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Reforming the CAP

• The 1960s Mansholt Plans
• Reform of the CAP became inevitable in the 1980s
  as budget restrictions and mounting concerns at
  over-production led to action

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MacSharry, Delors and the GATT

• The 1992 MacSharry Reforms (and the importance of
  the wider context on the need to strike a
  compromise within the GATT Round of Negotiations)
• Agenda 2000 (a weak compromise, ultimately
  defeated by Chiracs opposition to reforms)

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Recent reforms in Agriculture

• Reforms have continued to develop apace in the
  area of CAP
• 2003 saw radical reforms including the decoupling
  of subsidies from particular crops, single-farm
  payments and increased cross-compliance
• 2003 reforms were heavily influenced by the
  impending 2004 enlargement which brought into the
  EU countries with large but relatively
  inefficient farming sectors
• 2005 and changes to the sugar regime

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The Common Agriculture Policy covers

• Direct payments to farmers, including the Single
  Payment Scheme and the Single Area Payment Scheme
  
• Agricultural markets (including the Common Market
  Organisations, promotion and export refunds)
• Rural Development (including improving the
  countryside and its environment, the quality of
  life and diversification of rural economies, the
  competiveness of agriculture)

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• Environment protection (including the integration
  of environmental objectives into the CAP as well
  as promoting agricultural practices which
  preserve the environment)
• Forestry measures including afforestation efforts
  (primarily concerned with the coordination of the
  forestry policies of the Member States)
• Organic farming (focused on developing the market
  for organic food as well as increasing
  efficiency, transparency and consumer confidence)

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• European system for developing and protecting
  foodstuffs (mainly through the allocation of the
  PDO (Protected Designation of Origin), PGI
  (Protected Geographical Indication) and TSG
  (Traditional Speciality Guaranteed) certificates
  to promote and protect food products)
• Promotion of EU agricultural products, both
  within the Single Market and abroad
• Rules for allowing state aid to the sector, more
  commonly referred to as Agricultural State Aid

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Financial Instrument of CAP

• The European Agricultural Guidance and Guarantee
  Fund replaced in 2007 with
• The European Agricultural Guarantee Fund (EAGF)
• The European Agricultural Fund for Rural
  Deevlopment (EAFRD)

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The Power Triangle at the Heart of CAP
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Decision-making in CAP

• In devising policy, a central dynamic is the
  relationship between the Commissioner and DG AGRI
• DG AGRI has a distinct political culture
• Drafts must be scrutinised by the services as
  well as other DGs directly involved in horizontal
  issues (such as DG TRADE)
• Annual clearing of accounts

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Consultation of Interest Groups

• In devising policy the Commission actively
  consults the principal lobby groups in this area,
  primarily
• COPA (Committee of Professional Agricultural
  Organisations)
• COGECA (General Committee for Agricultural
  Cooperation in the European Union)
• Committee of European Young Farmers
• Coordination Paysanne Europeenne

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Power Politics in the Council

• The core of decision-making is the Agriculture
  Council which meets at least once a month
• The Council is not supported by COREPER but by
  the SCA
• (Special Committee on Agriculture)

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Dynamics within the Council

• The Presidency can play a key part in the Council
  depending on the country involved and the
  priority given to the sector
• Negotiations can be heavily influenced by
  domestic political developments, countries with
  agricultural parties being especially problematic
  during election periods
• Interest groups will also directly lobby
  governments during the actual meetings, the
  networks linking them with government being well
  developed over sixty years

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A Role for the European Parliament?

• The Committee on Agriculture and Rural
  Development (chaired by the Socialists and by an
  Italian MEP)
• just under 90 members/substitutes on the
  Committee
• Malta has no members
• Half the seats controlled by five members
  (France, Germany, Italy, Poland, UK)
• Greater influence through budget, trade

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Agriculture and Comitology

• Comitology covers Regulatory, Management and
  Advisory Committees
• There are no Regulatory Committees at present
• Management Committees chaired by DG AGRI
• Lisbon and Agriculture