Common Agricultural Policy (CAP):
The Common Agricultural Policy is entirely decided at European level and is one of the two most important components of the EU budget .
After many and long trialogues , on June 26, 2013, a political agreement was finally reached between the European Commission, the European Parliament and the Council on the four legislative proposals of the CAP ( Direct Payments , Rural Development, Common organization of the markets – CMO , Financing/ horizontal regulation).
On June 28, 2013 it was also reached, during the Council of Ministers, the agreement on the EU budget , ie the 2014-2020 multiannual financial framework (MFF ), avoiding therefore the possibility of further delays in the process of the CAP reform, that will come into force from 1 January 2015.
For the first time the CAP spending is cut by 4 percentage points (38 % of total EU spending ) .
Download the texts of the 4 CAP legislative proposals:
In the Regulation on Direct Payments, article 38 provides that it is possible to grant coupled subsidies to a list of eligible products, up to 13% (+2% for protein crops) of the national ceilings.
However, tobacco is not included in this list and, if the text are not modified, raw tobacco, from 1 January 2015, won’t be able to access to this measure, regardless of the national choices of the EU countries .
However, it should be reached an agreement on 2014 transitional provisions, applying hence, for calendar year 2014, the current rules with a budget reduction, as provided in the Multiannual Financial Framework (MFF).
On October 23, during an informal trialogue held in Strasbourg, the Council and the European Parliament reached political agreement ad referendum on transitional measures for the Common Agricultural Policy (CAP) in 2014.
The main elements of this agreement were discussed in an informal trilogue on this issue held in Brussels on 17 October.
Read here the press release of the Council on the on transitional measures for the CAP in 2014.
Therefore, in 2014, tobacco farmers who today already can take advantage of article 68 (coupled support), will keep having access to it.
For coupled payments, the Council and the Parliament agreed that in 2014 Member States could increase the maximum rate of certain coupled support schemes to 6.5 % of the national ceilings (compared to 3,5% under the current provisions).
The stages of the CAP reform:
12 October 2011: The European Commission presents the four texts of the legislative proposals for the reform of the CAP
January 23, 2013: vote in the European Parliament’s Agriculture Committee (AGRI Committee). Inside the Regulation on Direct Payments the AGRI Committee adopts an amendment that eliminates the positive list of eligible products (where the tobacco was not included), and instead simply referring to all the products listed in Annex I to the Treaty (in which the tobacco is included).
13 March 2013: The European Parliament approves, in plenary session , the mandate on the reform of the CAP, confirming almost all the amendments already approved by the Agriculture Committee ( AGRI Committee ): with regard to the tobacco sector, the Chamber confirms the amendment article 38 , already approved by the COMAGRI January 23, 2013, which extends the coupled support to all products of Annex I, including tobacco. The amendment passes with a majority important, with 370 votes in favor, 284 against and 21 abstentions.
13 March 2013: The European parliament passed a resolution in which it is rejected the Council’s agreement on the 2014-2020 budget and requires changes to the budget .
March 19, 2013: The EU Council reached a political agreement on the CAP . Tobacco is not included among the sectors eligible to receive aid coupled ( Art. 38 Regulation on Direct Payments ) .
11 April 2013: start of negotiations between the Commission , European Parliament and Council on the reform of the CAP ( trialogue).
June 26, 2013: Agriculture Ministers reached a political agreement on the CAP , but with the extension of Germany and the UK and has reached a political agreement between the Commission, Parliament and Council.
June 28, 2013 : it is reached in the Council of Ministers of the agreement on the EU budget .
September 24, 2013: during the trialogue, representatives of the European Commission, the European Parliament and of the Council reached an agreement on the financial aspects of the CAP reform.
Read here the press release of the Council on the Multiannual Financial Framework (MFF)
September 30, 2013: the AGRI Committee of the European Parliament approved the four compromise texts of the CAP reform
CAP REFORM 2014-2020: all the relevant documents
Agricolture Committee of the EP ( comAGRI)