Wednesday, December 7, 2022
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How large are the discounts on European agricultural subsidies?

Because the European Parliament, the European Commission and the EU heads of government have not yet agreed on the EU budget for the coming year and on the multi-annual budget 2021 & #8211; 2027, there is still no clarity about the threat of a reduction in agricultural subsidies. In Strasbourg and Brussels up to now, there have been public discussions about increases in all sorts of budgets, but so far it has been mostly silent.

The European Parliament spoke this week about the multi-annual budget for the European Union. Last week the EU leaders already discussed this at their European summit. Government leaders have now abandoned the ambition to reach a definitive budget this year. Opinions vary widely as to which country has to pay how much and what it should be spent on.
The Netherlands, together with the other net contributors and Germany, continue to maintain a spending ceiling of 1% of the combined economies. That is roughly the same as the current budget of around € 1,000 billion over seven years, including the British. The European Commission wants to increase the budget to 1.1%, the European Parliament wants to increase the contributions even further, to 1.3%.
A possible British departure from the EU leaves a heavy mark on the EU housekeeping book. Great Britain is a big payer on the EU. Those funds disappear if the brexit continues. Many Member States and also the European Parliament are calling for more budget for the EU policy, while also wanting to maintain or increase spending on agricultural policy.
In the coming years, the new European Commission wants to transfer 40 percent of European agricultural subsidies to the environment and use them for climate action against global warming. Frans Timmermans, vice-president of the current and new European Commission, has previously replied to written questions from the European Parliament.
In the new Commission, Timmermans is responsible for the climate policy of the EU. According to the politician, agriculture will play a 'crucial' role alongside the other economic players in achieving a climate-neutral Europe in 2050. The message is 'sustainable land management'.

In the new Commission, Timmermans will defend the proposal for a drastic reduction in agricultural subsidies (including a reduction in income support). Because a large proportion of the intended new EU Commissioners and most MEPs agree with the & #8216; Green Deal & #8217; and the Climate Price in Brussels, it is to be expected that European agricultural subsidies will ultimately also be subordinated to this.


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