The European Commission found itself in a tight spot, facing a daunting €30 billion annual repayment bill due to Covid-era borrowing. In a bold move, it briefly entertained the idea of tapping into the EU’s sacred cow – farm subsidies. Proposals were swirling around to fold the Common Agricultural Policy (CAP) and cohesion funds into national envelopes, granting more control to member states in spending EU money. This suggested shift aimed to prioritize defense, competitiveness, and climate initiatives. While some saw it as a flexible and streamlined approach, critics viewed it as a veiled attempt to weaken the CAP.
As budget discussions escalated, so did the pushback. Farm lobbyists rallied, agriculture ministers rebelled, and even the Commission’s own agriculture chief, Christophe Hansen, joined the resistance. Amidst this turmoil, Germany’s Christian Democrats urged Commission President Ursula von der Leyen not to blend the farm budget with broader spending plans, emphasizing the importance of maintaining an independent and reliable budget for the CAP.
The initial plan to overhaul the farm budget was ultimately abandoned, with the next CAP resembling its current structure. The Commission’s budget proposal revealed that the CAP would remain a separate pillar in the 2028-2034 EU budget, with rural development funding staying within its existing framework. This retreat marked a significant victory for the farm lobby, illustrating their enduring influence in Brussels despite evolving challenges and calls for reallocating funds to address strategic needs.
However, the triumph is bittersweet for Europe’s farmers as budget constraints and shifting priorities necessitate cuts to overall CAP funding. Anticipated reductions between 15% and 25% signal financial challenges ahead, even though the fundamental structure of the CAP remains intact. The looming cuts could strain direct payments, a crucial component of the CAP, potentially reigniting protests among farmers who feel shortchanged without substantial financial support.
Bernhard Krüsken, general secretary of the German Farmers’ Association, emphasized the urgency of adequately funding agriculture to tackle contemporary challenges effectively. The failed restructuring attempt sheds light on the entrenched resistance to budget reallocations in Brussels, underscoring the enduring influence of traditional alliances and the difficulty of effecting change in EU budget politics.
The compromise reached between advocates for maintaining the CAP and proponents of modernization leaves both sides dissatisfied, highlighting the complexities of budget negotiations in Brussels. While farm groups secure structural continuity without financial security, proponents of budget reform see a missed opportunity for strategic realignment. This episode underscores that power dynamics in EU budget politics extend beyond mere numbers to encompass mobilized coalitions and entrenched positions, with the farm lobby emerging as a formidable force in shaping agricultural policy decisions.
