Euronatur – 6/9/2005

The EU Financial Perspective 2007 – 2013

Nature Conservation & Rural Development

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

History of the RD in the EU

1975: Mountain Farmers Programme

1988: Structural funds (mainly Objectives 5b „Development of Rural Areas“)

1992: „Accompanying Measures“ (Mc Sharry - Reform)

2000: Regulation 1257/99 – Rural Development as the „2nd Pillar“ of the CAP (2000 – 2006)

2004: Commission's proposal for the „European Agricultural Fund for Rural Development“ (EAFRD) (2007 – 2013)

(Guarantee and Guidance will be merged)

2005: European Council compromise (not adopted yet)

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Development of EAGGF- Guarantee and RD in EU15

4,34,7

4,44,2

2,6

1,82,11,9

0,80,5

0,2

0,00,51,01,52,02,53,03,54,04,55,0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Bil

lio

n €

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Status Quo and Promises

Pillar 1

90%EAGGF -

Guarantee

10 %

Rural Development(Pillar 2)

Former Commissioner Fischler proposed in 2003 to shift 20 % of pillar 1 - budget to rural development (pillar 2).

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Modulation

The CAP-Reform of 2003 enabled all member states to transfer a further

10 % of pillar 1 to „rural development“ measures. (Article 69 – National Envelope)

70%EAGGF -Guarantee 30 % Rural

Development

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Modulation + Article 69New political instruments for sustainable land use:- strong cross-compliance- 20 % modulation- national envelope (article 69)

60%EAGGF -Guarantee

40 % RuralDevelopment

Results:

- Socially and ecologically qualified 1st pillar

- Strong rural development tool box

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Pillar 1

85%EAGGF -

Guarantee

15 %

Rural Development(Pillar 2)

Results of the CAP Reform (2003)

Realities: - Weak cross-compliance- Only 5 % of modulation- Hardly any country adopted „Article 69“

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

BudgetProposal of theCommission

1.025,0 Billion €= 1,24% GNI*

* = Gross National Income

Financial perspective 2007 – 2013

COM1,24 % GNI

301 BillEAGGF -

Guarantee

Rural Develop.

87bn €

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Financial Perspective 2007 – 2013

10,511,6 12,1 12,5 12,6 12,7 12,9 13,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

Bil

lio

n €

2006 2007 2008 2009 2010 2011 2012 2013

Commissions proposal for RD

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Cutback of 20%

Net payers´ position

826,6 Billion €= 1% GNI*

* = Gross National Income

Financial Perspective 2007 – 2013

Net payers´1,0 % GNIworst case

301bn €EAGGF -

Guarantee

34bn €Rural Develop.

Net payers´1,0 % GNIbest case

301bn €EAGGF -

Guarantee

55bn€

Rural Develop.Budget

Proposal of the der Commission

1.025,0 Billion €= 1,24% GNI*

* = Gross National Income

COM1,24 % GNI

301bn €EAGGF -

Guarantee

Rural Develop.

87bn €

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Financial Perspective 2007 – 2013

10,5

4,8 4,8 4,8 4,8 4,8 4,8 4,8

0,0

2,0

4,0

6,0

8,0

10,0

12,0

Bil

lio

n €

2006 2007 2008 2009 2010 2011 2012 2013

Net payers´ proposal worst case

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Financial Perspective 2007 – 2013

Juncker proposal1,06 % GNI

301bn €EAGGF -

Guarantee

Rural Develop.

74bn€

Cutback of 14%

Juncker proposal

876,2 Billion €= 1,06% GNI*

* = Gross National Income

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Financial Perspective 2007 – 2013

10,5 10,6 10,6 10,6 10,6 10,6 10,6 10,6

0,0

2,0

4,0

6,0

8,0

10,0

12,0

Bil

lio

n €

2006 2007 2008 2009 2010 2011 2012 2013

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

COM1,24 % GNI

301bn €EAGGF -

Guarantee

Rural Develop.

87bn€

Financial Perspective 2007 – 2013

Net payers1,0 % GNI

301bn €EAGGF -

Guarantee

34bn€Rural Develop.

Junker1,06 % GNI

301bn €EAGGF -

Guarantee

Rural Develop.

74bn€

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Financial Perspective 2007 – 2013

Commission's proposal: disappointing, continuation of the present distribution of payments (status quo), although new challenges for RD were added (NATURA 2000, EU27)

Net payers: a rollback, give-up of promises concerning RD (made by Com. Fischler)

Juncker's proposal: is only softening the net payers proposal

German NGO-Coalition: Co-funding of pillar 1, real socially and ecologically qualification of pillar payments, doubling of RD Funds up to 25bn €

“One year of EU 25 – Nature Conservation policy experience regarding the 2nd pillar of the CAP and reform prospects”

Situation September 2005

PM Blair opened a discussion about a new distribution of agriculture spending

The discussion has to be used:- to question the spending in the pillar 1 - to strengthen the position of rural development

in the EU (employment, Natura 2000, sustainable agriculture, WTO)

- Secure increasing of funds for RD