Because the European Parliament, the European Commission, and the EU government leaders have not yet reached an agreement on the EU budget for the coming year and the multiannual budget 2021–2027, there is still no clarity on the looming reduction of agricultural subsidies. In Strasbourg and Brussels, discussions so far have publicly focused on increases in various budgets, while cuts have largely been avoided in the conversation.
The European Parliament discussed the multiannual budget for the European Union this week. Last week, the EU leaders already discussed it at their European summit. The ambition to reach a definitive budget this year has now been abandoned by the government leaders. Opinions vary widely on which country should pay how much and on what the money should be spent.
Along with other net contributors and Germany, the Netherlands continues to insist on a spending cap of 1% of the combined economies. That is roughly the same as the current budget of approximately €1,000 billion over seven years, including the British. The European Commission wants to increase the budget to 1.1%, and the European Parliament proposes even higher contributions, up to 1.3%.
A possible British departure from the EU heavily impacts the EU's financial accounts. Great Britain is a major contributor to the EU. Those funds would disappear if Brexit proceeds. Many member states and the European Parliament argue for more budget for EU policies, including maintaining or increasing spending on agricultural policy.
The new European Commission wants to transfer 40 percent of the European agricultural subsidies to environmental and climate actions against global warming in the coming years. Frans Timmermans, Vice President of the current and incoming European Commission, has already answered this in writing to questions from the European Parliament.
In the new Commission, Timmermans is responsible for the EU's climate policy. According to him, agriculture, alongside other economic actors, will play a ‘crucial’ role in achieving a climate-neutral Europe by 2050. ‘Sustainable land management’ is the key message, he believes.
Timmermans will defend a proposal in the new Commission for a drastic reduction of agricultural subsidies (including a reduction of income support). Because a large part of the prospective new EU Commissioners and most Members of the European Parliament agree with the ‘Green Deal’ and the Climate Pact in Brussels, it is expected that European agricultural subsidies will ultimately also be subordinated to these goals.
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