The EU-added value of the CAP Public hearing on “European Added Value” European Parliament, CONT committee 21 January 2019 Rudolf Mögele, European Commission

Why a CAP today? Article 38 1. The Union shall define and implement a common agriculture and fisheries policy. The internal market shall extend to agriculture, fisheries and trade in agricultural products. … 2. Save as otherwise provided in Articles 39 to 44, the rules laid down for the establishment and functioning of the internal market shall apply to agricultural products. 3. …. 4. The operation and development of the internal market for agricultural products must be accompanied by the establishment of a common agricultural policy.

Challenges of CAP have cross-border and global nature which require a common action at EU level - single market for goods and services - economic opportunities to farmers as well as important pressures which require a common safety net, including a system of income support that avoids potential distortions of competition, and underpins food security as well as food safety - increased exposure to world markets, resulting from previous CAP reforms, WTO rules and trade agreements can only be addressed at EU level

Challenges of CAP have cross-border and global nature which require a common action at EU level Sustainability challenges like climate change, water use, air quality and biodiversity, are cross-border and also require EU action to meet EU-wide objectives.

Financial resources One CAP budget instead of 27 national agricultural budgets Managed and spent according to common rules Helps to avoid conflicting subsidisation and the resulting increase in overall agricultural spending Ensures financial solidarity between Member States to materialise

Having a CAP makes sense because we need… Which level of government? Public Consultation Assessing the EU Added Value of the CAP Having a CAP makes sense because we need… Which level of government? 6 6

JRC study Scenario 2030 (non CAP) Removing the CAP would result in - a dramatic (18%) drop in farm income on average in the EU, threatening the economic viability and attractiveness of rural areas, - a sizeable decline in production, - land abandonment, and - more pressure on the environment.

2017 World Bank report According to the 2017 World Bank report “Thinking CAP”, the EU’s agricultural policy results in an overall reduction in rural poverty, and the effect adds up over time. In developing regions, the EU’s rural development approach is increasingly seen as a model to take inspiration from.

CAP benefits Secure supply for 500 million citizens Maintain agri-sector in all EU territories Support ecological/economical sustainability Maintain dynamics of rural areas (80% of EU’s territory) Maintain natural resources (soils, biodiversity, …) Minimize trade-distorting impact on world trade Europe leading exporter in high value food

We face a very heterogenous agriculture across the Union in a common market Importance of primary sector in employment:

EU wide dimension combined with subsidiarity Need to tackle different problems by appropriate different means Take due account of local and regional specificities in Member States Involve stakeholders more directly Avoid „one size fits all“ approaches = aspects pleading in favour of more subsidiarity and proportionality while keeping the C in the CAP

CAP post 2020: New CAP Delivery Model EU level: CAP objectives and common indicators, types of interventions and EU basic rule Provides CAP financing Assesses and approves Startegic CAP plans Monitors and audits performance and compliance Member States SWOT and needs analysis Translate EU objectives in national targets Chose appropriate interventions Develop Strategic CAP plans Report on performance and compliance