Ministers held an exchange of views on the future of the CAP and, in particular, on market management measures after 2013, based on a presidency background paper and a questionnaire.
Ministers welcomed the presidency paper as a valuable contribution to the discussion on the future of the CAP, stressing the importance of striking the right balance between market orientation on the one hand and ensuring the viability of agricultural activity in the EU through appropriate market and crisis management instruments on the other.
Many ministers agreed that market orientation of European agriculture achieved as a result of the CAP reforms undertaken since 1992 was sufficient. Many referred to the contribution which existing measures such as direct payments and market management measures make to dampening price and income risks for farmers. At the same time, they highlighted the necessity of keeping an efficient safety net in future, in particular against the background of growing price volatility and market instability, and the EU commitments in the context of the Doha Development Round of the WTO. Many ministers supported the presidency's suggestion of examining the possibility of complementing existing market management measures provided for in the single CMO and made suggestions, such as the creation of income insurance schemes, the strengthening of producer organisations and interbranch cooperation, futures markets and the setting up of a crisis fund. Many delegations also referred to ongoing discussions on the functioning of the food supply chain and asked to take into account the outcome of that work. A substantial number of ministers agreed that the future CAP should provide for a financial mechanism allowing the EU to respond rapidly to serious crises which offers flexibility in responding rapidly to such cases.
A number of ministers considered that market orientation in European agriculture could be further improved and insisted that further efforts to improve competitiveness would offer the best safety net. Some made it clear that any new market measures should not come on top of existing ones and also expressed doubts with regard to the creation of a financial mechanism to deal with crisis situations, as this would involve additional expenditure.
The presidency expressed its intention to table at the Special Committee for Agriculture (SCA) a follow-up paper summarising the Council's debate.
The Council's debate followed previous discussions on the different aspects of the CAP post-2013 held under the French, Czech and Swedish Presidencies. A final general reflection on the CAP post-2013 is scheduled to take place during the informal meeting of the ministers of Agriculture on 30 May - 1 June, to be held in Merida, Spain.
Thereafter the Commission is expected to submit a communication on the post-2013 CAP in late autumn 2010, followed be legislative proposals in mid-2011.