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Reflection on the possibilities for the future development of the CAP (HealthCheck)

Funding

European Parliament, Contract no. IP/B/AGRI/FWC/2006-Lot 01-C01-SC1

Duration

until December 2007

Organisation

Proejct leader: EuroCARE GmbH

Project coordinators:

Key contribution:

  • Jean Christophe Bureau
  • Heinz Peter Witzke
  • Alexandre Gohin
  • Prof Allan H. Matthews
  • Dr Max D. Merbis
  • Dr Bettina. Rudloff
  • Prof Luca Salvatici

Specialized contributions:

  • Petra Berkhout
  • Thomas Heckelei
  • Prof Michiel A. Keyzer
  • Prof Werner Kleinhan▀
  • Bernhard Oosterburg

Overview

On November 20, 2007, the Commission circulated its "Communication" to the Council and the European Parliament preparing for the "Health Check" of the CAP reform. The Communication set several objectives, namely making direct payments more effective, making market price support instruments more relevant and mastering new challenges such as climate change, price fluctuations and water management. The Commission made specific suggestions, such as adjusting the single farm payments, reforming the conditionality for Single Farm Payments, limiting largest payments, increasing modulation, reforming intervention, abolishing land set-aside and phasing out milk quotas. The Commission also proposed to examine measures for managing risks, to provide incentives to assist the development of bio-energy, and to use modulation of the budget devoted to the first pillar to increase the rural development funding as well as funding new challenges.

The aim of this project is to address three main questions:

  • How to make the Single Payment Scheme more effective, efficient and simple?
  • How to render market support instruments, originally conceived for a Community of six Member States, still relevant in a more and more globalised world and an EU of twenty-seven?
  • How to master new challenges, from climate change to growth in biofuels and water management, by adapting to the new risks and opportunities?

Therefore a focus put on the following topics:

  • Economic effects: Production, including energy crops, organic and quality products, investment, structure, income, rural areas
  • Budgetary effects
  • Direct aids: Single Farm Payments (SFP) and variants, decoupling, Cross compliance, service remuneration
  • Market measures: soft landing and milk, risks and crisis management
  • Modulation, pillar shifting, ceiling on payments, distortion of competition, redistribution, legitimacy, fairness, gradual reduction in subsidies
  • Financial discipline, financing rules, co-financing, renationalisation, simplification
  • WTO negotiations and WTO compatibility, WTO impacts
  • Other: structural contraints. New MS. Regional, national needs. Rural development needs, Non-food production
  • Technical reporting, communication, administration

Contributions of EuroCARE

EuroCare mostly covers the direct aids, especially the SFP and its variants as well as the economic effects of production including energy crops.

Documents

Prof Jean Christophe Bureau, J.-C.; Witzke, H.-P.; Berkhout, P.; Gohin, A., Heckelei, T.;Keyzer, M.A.; Kleinhan▀, W.; Matthews, A.; Merbis, M.D.; Rudloff, B.; Salvatici, L. (2007): REFLECTION ON THE POSSIBILITIES FOR THE FUTURE DEVELOPMENT OF THE CAP, European Parliament