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EU policies – Delivering for citizens: Agriculture

28-06-2019

The common agricultural policy (CAP) is one of the oldest common policies in the EU. Its significance is reflected in the proportion of the EU's budget devoted to it, representing approximately 40 % of the total. Developed at a time when Europe was unable to meet most of its own food needs, it was necessary to encourage farmers to produce food by means of guaranteed prices. The policy has undergone regular reform and has evolved over the years. These reforms have sought to improve the competitiveness ...

The common agricultural policy (CAP) is one of the oldest common policies in the EU. Its significance is reflected in the proportion of the EU's budget devoted to it, representing approximately 40 % of the total. Developed at a time when Europe was unable to meet most of its own food needs, it was necessary to encourage farmers to produce food by means of guaranteed prices. The policy has undergone regular reform and has evolved over the years. These reforms have sought to improve the competitiveness of the agricultural sector, promote rural development and address new challenges in areas such as the environment and climate change. Evidence from a series of Eurobarometer surveys indicates that EU citizens have a high level of awareness of this policy area. There is a recognition that the policy is succeeding in meeting citizens' expectations in terms of delivering healthy high-quality food as well as contributing to the protection of the environment. When it comes to agriculture, Parliament's eighth term focused on taking forward not only implementation of the last CAP reform in 2013 but also a series of significant legislative achievements. The areas covered include, for example, unfair trading practices, animal health, plant health and the organic sector, as well as a range of policy-related simplification measures. On the non-legislative front, Parliament pursued its scrutiny role rigorously. Other substantial issues it considered during the last legislature included the future policy direction of the CAP for the post-2020 period, establishing its position on the next multiannual financial framework (MFF), including the overall budgetary allocation for the future CAP and the associated legislative framework. In the case of the latter, this has not been the subject of a plenary vote. This is an update of an earlier briefing issued in advance of the 2019 European elections.

The EU dairy sector: Main features, challenges and prospects

17-12-2018

The EU dairy sector is the second biggest agricultural sector in the EU, representing more than 12 % of total agricultural output. While milk is produced in all Member States, farm and herd sizes, yields and types of farming vary widely across Europe, from free-range farming in Alpine areas to large specialised dairy farms in the north-west and centre of Europe. In 2016, 157 million tonnes of milk were delivered to dairies, where raw milk is processed into fresh products such as cheese or butter. ...

The EU dairy sector is the second biggest agricultural sector in the EU, representing more than 12 % of total agricultural output. While milk is produced in all Member States, farm and herd sizes, yields and types of farming vary widely across Europe, from free-range farming in Alpine areas to large specialised dairy farms in the north-west and centre of Europe. In 2016, 157 million tonnes of milk were delivered to dairies, where raw milk is processed into fresh products such as cheese or butter. Part of the common agricultural policy, the EU's dairy policy consists of a range of instruments designed to support farmers and address market imbalances. In particular, it includes common market organisation, public intervention and private storage provisions, direct payments and rural development measures. The policy has been constantly updated over time, one recent development being the suppression of milk quotas in 2015. The 2014 to 2016 crisis, during which raw milk prices dropped dramatically from around 40 to 25.7 cents per litre, triggered a reaction by the Commission based on public intervention-buying, private storage and a range of exceptional measures. Two aid packages were adopted, including incentives for farmers to reduce production. Recovery was in sight by 2017. In the coming years, growing EU and global demand is expected to support world dairy markets, without hindering price fluctuations and market imbalances. Resilience and sustainability are key words for the future of the sector. This can be achieved with innovation, as a way to reconcile the need for farmers to earn a decent living, consumer demand for affordable and quality dairy products, and environmental/animal health requirements.

Research for AGRI Committee – New competition rules for the agri-food chain in the CAP post 2020

14-09-2018

In connection with the next reform of the CAP post 2020, the Commission has proposed a new Regulation (COM(2018)394 of 1 June 2018) on the common market organisation, amending Regulation (EU) No 1308/2013 of 13 December 2013 (amended by Regulation (EU) No 2017/2393 of 13 December 2017). This draft regulation does not, however, cover questions on the relationship between the CAP and competition; the proposal does not contain any provisions concerning the responsibilities of professional and interbranch ...

In connection with the next reform of the CAP post 2020, the Commission has proposed a new Regulation (COM(2018)394 of 1 June 2018) on the common market organisation, amending Regulation (EU) No 1308/2013 of 13 December 2013 (amended by Regulation (EU) No 2017/2393 of 13 December 2017). This draft regulation does not, however, cover questions on the relationship between the CAP and competition; the proposal does not contain any provisions concerning the responsibilities of professional and interbranch organisations and the possible conditions of their submission to competition rules. The recent Omnibus Regulation (EU) No 2017/2393 has made changes to the legal framework for the application of competition rules to the agreements and practices of farmers and their associations. However, this new legislative framework is not yet entirely consistent and, in the light of the Court of Justice judgment handed down on 14 November 2017 in the Endive case, the progress ought to be consolidated and clarified in order to guarantee the real effectiveness of these provisions and greater legal certainty for operators. This study analyses the development of the relationship between the CAP and the competition rules and highlights the need to take corrective action with respect to current farming legislation to ensure that the CAP has primacy over the competition rules and the implementation of the objectives set out in Article 39 of the Treaty.

Extern avdelning

C. Del Cont; A. Iannarelli

Research for AGRI Committee - Towards the CAP post 2020 - Appraisal of the EC Communication on ‘The Future of Food and Farming’ of 29 November 2017

15-05-2018

This study assesses the European Commission’s plans for CAP reform as set out in November 2017 and subsequently. It discusses the extent to which those plans address the performance of the CAP against its objectives, compares them with the views and ideas of stakeholders and makes recommendations.

This study assesses the European Commission’s plans for CAP reform as set out in November 2017 and subsequently. It discusses the extent to which those plans address the performance of the CAP against its objectives, compares them with the views and ideas of stakeholders and makes recommendations.

Extern avdelning

D. Mottershead, K. Hart, A. Maréchal, S. Meredith, A. Lorant, F. Bas-Defossez, D. Baldock (IEEP), J-C. Bureau, A. Matthews

Research for AGRI Committee - Young farmers - Policy implementation after the 2013 CAP reform

16-10-2017

This report provides information regarding the state of implementation of the current CAP young farmers’ mechanism. The different implementation styles of the Members States are described and the currently implemented policy tools are evaluated. Based on the secondary analysis and case studies, several policy recommendations are formulated, aimed at improving the existing support scheme and assisting young farmers to deal with the major barriers to entering agriculture.

This report provides information regarding the state of implementation of the current CAP young farmers’ mechanism. The different implementation styles of the Members States are described and the currently implemented policy tools are evaluated. Based on the secondary analysis and case studies, several policy recommendations are formulated, aimed at improving the existing support scheme and assisting young farmers to deal with the major barriers to entering agriculture.

Extern avdelning

Czech University of Life Sciences Prague, Czech Republic: Lukáš Zagata, Jiří Hrabák, Michal Lošťák, Miroslava Bavorová Technology Centre of the Czech Academy of Science: Tomáš Ratinger The James Hutton Institute, Scotland UK: Lee-Ann Sutherland, Annie McKee

Current priorities and challenges in EU agricultural policy

20-06-2017

The European Commission's work programme for 2017 includes a commitment to progress and consult widely on the simplification and modernisation of the common agricultural policy (CAP). A public consultation exercise was launched at the beginning of February 2017 and closed on 2 May 2017. A number of stakeholder organisations and think tanks have issued their reflections on the future shape of EU agricultural policy post 2020. In the last reform of the CAP, the European Parliament had a key role to ...

The European Commission's work programme for 2017 includes a commitment to progress and consult widely on the simplification and modernisation of the common agricultural policy (CAP). A public consultation exercise was launched at the beginning of February 2017 and closed on 2 May 2017. A number of stakeholder organisations and think tanks have issued their reflections on the future shape of EU agricultural policy post 2020. In the last reform of the CAP, the European Parliament had a key role to play in this process. Both the Parliament and the Council will have responsibility to legislate on the Commission's proposals. A key role is performed by the Parliament's Committee on Agriculture and Rural Development. Future discussions on these matters can therefore be anticipated. The Maltese Presidency has identified a number of priorities to guide the discussion on future policy and also held a debate earlier in the year on the future of the CAP in the Agriculture Council. A communication is expected from the Commission before the end of 2017. This briefing provides a short overview of these issues, along with a summary of the key elements of the current CAP, some key features of EU agriculture including the prospects for the main agricultural markets based on the Commission's most recent agricultural outlook report. Recent developments in Council are also covered, and a number of stakeholder perspectives are highlighted.

Research for AGRI Committee - CAP implementation: Flexibility given to Member States - state of play and perspectives

15-05-2017

This study discusses flexibility of the Common Agricultural Policy (CAP) from various angles. The current flexibility does not create major conflicts with the objectives of the CAP. It makes decision-making more dispersed over the Member States, but also more effective. There may be small adverse effects on the level playing field. On the positive side, flexibility allows Member States to address specific problems and pursue heterogeneous and/or geographically bound goals. This should be regarded ...

This study discusses flexibility of the Common Agricultural Policy (CAP) from various angles. The current flexibility does not create major conflicts with the objectives of the CAP. It makes decision-making more dispersed over the Member States, but also more effective. There may be small adverse effects on the level playing field. On the positive side, flexibility allows Member States to address specific problems and pursue heterogeneous and/or geographically bound goals. This should be regarded as bounded targeting, not renationalisation.

Extern avdelning

Ida Terluin, Petra Berkhout, Tuomas Kuhmonen

Common Agricultural Policy and revision of the 2014-2020 MFF

30-11-2016

The EU's 2014-2020 Multiannual Financial Framework provides medium-term expenditure predictability in support of investment in Europe's priorities. The Commission presented its mid-term review/revision of the multiannual EU budget (2014-2020) on 14 September 2016 in Strasbourg. Without increasing spending limits, the package as presented is intended to free up an additional €6.3 billion in financing by 2020. These resources will be used mainly to foster job creation, investment and economic growth ...

The EU's 2014-2020 Multiannual Financial Framework provides medium-term expenditure predictability in support of investment in Europe's priorities. The Commission presented its mid-term review/revision of the multiannual EU budget (2014-2020) on 14 September 2016 in Strasbourg. Without increasing spending limits, the package as presented is intended to free up an additional €6.3 billion in financing by 2020. These resources will be used mainly to foster job creation, investment and economic growth and to address the migration crisis. In this context, the Commission presented a legal proposal (omnibus regulation) that contains changes to the basic EU Financial Regulation and to the main EU funding regulations. The omnibus proposal touches, inter alia, on all four of the basic regulations governing the Common Agriculture Policy. These cover Direct Payments, Rural Development, Common Market Organisation and the ‘Horizontal’ Regulation, covering issues such as funding and controls. The changes that are proposed aim at fine-tuning some elements of the current CAP, as described in this briefing, and making life easier for both farmers and national authorities. Looking ahead, the proposed revision of the 2014-2020 Multiannual Financial Frame-work will prepare the ground for a subsequent MFF proposal in support of EU priorities for the post-2020 period. This could be presented by the end of 2017. With the omnibus regulation proposal, it appears unlikely that a major restructuring of the basic architecture of the CAP will take place in the current programming period. More substantial legal proposals for a post-2020 CAP could be presented in 2018, in line with the post-2020 MFF communication. Such a scenario would enable the European Parliament, as co-legislator, to negotiate the implications of the current CAP revision, and a more substantial post-2020 reform for the CAP in parallel.

Studie för AGRI-utskottet – Reformen av den gemensamma jordbrukspolitiken efter 2020 - Utmaningar i samband med jordbruket

14-10-2016

Dokumentet togs fram för seminariet om utmaningarna för jordbruket i EU efter 2020 och förberedelserna för nästa reform av den gemensamma jordbrukspolitiken den 8 november 2016, som organiserades av Europaparlamentets utskott för jordbruk och landsbygdens utveckling (AGRI) och dess utredningsavdelning (AGRI Research) Det innehåller tre studier: 1. Framtiden för direktstöd (av Alan Matthews). 2. Framtiden för marknadsåtgärder och riskhanteringssystem (av Louis-Pascal Mahé och Jean-Christophe Bureau ...

Dokumentet togs fram för seminariet om utmaningarna för jordbruket i EU efter 2020 och förberedelserna för nästa reform av den gemensamma jordbrukspolitiken den 8 november 2016, som organiserades av Europaparlamentets utskott för jordbruk och landsbygdens utveckling (AGRI) och dess utredningsavdelning (AGRI Research) Det innehåller tre studier: 1. Framtiden för direktstöd (av Alan Matthews). 2. Framtiden för marknadsåtgärder och riskhanteringssystem (av Louis-Pascal Mahé och Jean-Christophe Bureau). 3. Framtiden för landsbygdsutveckling (av Thomas Dax och Andrew Copus).

Extern avdelning

Alan Matthews, Louis Pascal Mahé, Jean-Christophe Bureau, Thomas Dax and Andrew Copus

Research for AGRI Committee - The Post-Quotas EU Sugar Sector

03-06-2016

The liberalisation of the sugar market in the EU will bring about changes in the sugar sector. Elimination of production quotas and the minimum price for the purchase of sugar beet will affect competition and sugar production. Foreign trade will play a key role in the market balance. The EU market will become strongly linked to the world market. The sugar sector is of strategic importance and CAP market policy should include instruments that allow the maintenance of sugar production.

The liberalisation of the sugar market in the EU will bring about changes in the sugar sector. Elimination of production quotas and the minimum price for the purchase of sugar beet will affect competition and sugar production. Foreign trade will play a key role in the market balance. The EU market will become strongly linked to the world market. The sugar sector is of strategic importance and CAP market policy should include instruments that allow the maintenance of sugar production.

Extern avdelning

Piotr Szajner, Barbara Wieliczko, Marek Wigier, Mariusz Hamulczuk and Wioletta Wrzaszcz (Institute of Agricultural and Food Economics - National Research Institute, Poland)

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