On Wednesday, May 2, 2018, the European Commission (COM) came out with a proposal on the EU Multiannual budget for 20121-2027, envisaging that the funding, planned for the Common Agricultural Policy (CAP) in the financial period of next seven years, will be less by 5% as compared with the current EU Multiannual budgetary period for 2014-2020.
The COM proposal offers to continue approximation of direct payments among Member States. Assuming that also in the next period, a gradual adjustment of direct payments would be applied, according to estimates by the Ministry of Agriculture, Latvian farmers would enjoy only a slight increase in direct payments, reaching 80% of the EU average level of direct payments only in 20126 (in 2020, direct payments in Latvia will reach 68% of the EU average level).
The Minister for Agriculture, Jānis Dūklavs points out that the current proposal from COM is not henceforth envisaging an equal level of direct payments for all the EU farmers that might negatively influence competitiveness of farmers in some Member States.
“Regardless of the planned reduction in the EU budget for direct payments for the next programming period 2021-2028, it must be noted that increase in direct payments, planned by COM for Latvia, is a step toward the approximation of direct payments. However, it alone will not ensure fair direct payments therefore the Ministry of Agriculture will continue explaining its position on all the levels. These negotiations will not be easy,” emphasizes the Minister Jānis Dūklavs.
It is planned that proposals on CAP reforms after 2020 will be published by the end of May, 2018. Negotiations on the EU Multiannual budget for the next programming period 20121-2027 will go on one to two more years. The EU Multiannual budget will be approved only by an agreement of all the Governments of Member States.