Brussels: Changes to the way the Common Agricultural Policy (CAP) will be financed in the upcoming Multiannual Financial Framework 2028-2034 have been unveiled in a letter from European Commission President Ursula von der Leyen to President Nikos Christodoulides and European Parliament President Roberta Metsola.
According to Cyprus News Agency, the letter emphasizes that the CAP will continue to be a central pillar of EU policy, with a budget that is ringfenced, ensuring it cannot be cut or reallocated. This move also aims to address farmers' concerns ahead of the accelerated ratification of the EU-Mercosur agreement involving Brazil, Argentina, Uruguay, and Paraguay.
Von der Leyen's letter highlights that in the 2028-2034 financial framework, the CAP will maintain its role as the main EU policy tool to provide farmers with fair income, ensure long-term food security, and improve living standards in rural areas. The budget for CAP is set at £293.7 billion, embedded within the National and Regional Partnership Plans.
To ensure immediate liquidity at the beginning of the new programming period, von der Leyen proposes early access to mid-term review resources, allowing Member States access to up to two-thirds of the normally available amount, representing around £45 billion. This can be mobilized immediately to support farmers.
Additionally, the CAP budget is supported by reinforced crisis-management instruments. The letter notes that the ringfenced amounts for CAP and early access to resources will be supplemented by a doubled amount of £6.3 billion for addressing market disturbances, known as the Unity Safety Net. Farmers will also have access to crisis payments from a 10% flexibility amount in the National and Regional Partnership Plans in cases of natural disasters, adverse climatic events, or animal diseases.
Special attention is given to rural areas, with at least 10% of each National and Regional Partnership Plan's resources dedicated to investments there. This rural target will reach £48.7 billion, with potential to increase to £63.7 billion through Catalyst Europe loans.
Von der Leyen concludes that the combination of these policy and budgetary tools will provide unprecedented support for farmers and rural communities, potentially surpassing the current budget cycle. She emphasizes the Commission's commitment to supporting the European Parliament and the Council until the new Multiannual Financial Framework is adopted.
The letter's timing is significant, coinciding with an informal meeting of EU agriculture ministers at the Commission's headquarters in Brussels. This meeting precedes the planned signing of the EU-Mercosur agreement on January 12 in Paraguay, contingent on approval from EU ambassadors by Friday, allowing von der Leyen to attend the signing.