Congress report - European Health Forum Gastein

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European Health Forum Gastein 2001
While the public often criticises politicians for their inept handling of such situations, the
recent political solution to scandals and crisis seems to be to tighten up existing legislation
(new regulations) - rather than focusing on the practical control of existing rules. A recent
example is the ban on the use of meat and bone meal in animal feed for pigs and poultry as
a result of the lack of control and illegal use in cattle feed.
As you may know, the Common Agricultural Policy, created already in 1958, has changed
through its reforms in 1992 and 1999 (Agenda 2000). Progressively, support prices have been
reduced, increased direct aid to farmers have been introduced, which are becoming more
decoupled from production and where environmental considerations are coming more and
more to the forefront.
Taken together, these reforms amount to a major change in direction for our agricultural
policy. The new focus is now on the multifunctional nature of agriculture rather than on its
food producing role.
The second large reform, Agenda 2000, decided by the European Council in Berlin, is being
implemented over the period 2000 to 2006. Now, only one year after Agenda 2000 was
introduced there are moves in some quarters to press for yet a further wide-ranging reform
of the CAP before well before 2006.
COPA and COGECA are keen to engage in a debate about the direction agricultural policy
should take once the current CAP reform has been implemented. However, they believe that
a further reform before 2006 is not only unwarranted but also unwise. When deciding upon
Agenda 2000 the European Council requested the Commission to submit a series of reports
over the period 2002 and 2003.
The only possible justification for changing the CAP prior to 2006 would therefore be if
budgetary expenditure in the agricultural sector was at risk of exceeding the ceiling set by
the European Council in Berlin and/or there was a serious deterioration in the overall market
situation.
This is clearly not the case since the agricultural budgetary situation and the market outlook
are sound. COPA and COGECA consider that the European Union must maintain a strong
position in the forthcoming WTO round and farmers and their co-operatives need stability
and a coherent policy.
There is an attempt in some circles to use the above mentioned crisis to press for further
reform of the CAP prior to 2006. Some, for example, are pressing for yet more reform of the
CAP along the lines of the 1992 and Agenda 2000 reforms. This means increased
liberalisation, greater price competitiveness and more rapid productivity growth.
In contrast some others are calling for a move in a totally opposite direction –blocking the
trend towards larger farms and encouraging more extensive farming which will inevitably
reduce productivity and the competitiveness of European farming.
These opposing views are also increasingly reflected in EU policy: on the one hand trade
policy is pushing towards lower prices, forcing farmers to cut costs while internal policy is
resulting in increasingly restrictive regulations on agriculture which lead to higher and higher
costs.
In economic terms, this development means that European society has imposed conflicting
demands on food production at the agricultural level:
While the European society demands
- more productivity at lower prices to meet the WTO trade concerns
It also demands
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