At the center of the criticism is the new legal and financial architecture of the Common Agricultural Policy (CAP). For the first time since 1962, there would no longer be a separate agricultural fund. Instead, agricultural money will be incorporated into a broad fund within the multiannual financial framework 2028–2034.
This fund, totaling approximately 865 billion euros, is intended to bundle various EU policy programs into national plans per EU country. According to the Court of Auditors, this increases uncertainty for agriculture. The total budget will only be definitively established after the national plans per country have been approved by Brussels.
For agriculture, a cut of tens of billions has been scheduled because the EU wants to free up much extra money over the coming years to strengthen the European economy and for Defense. Moreover, tens of billions for agriculture are being 'held in reserve.' EU countries are being asked to increase their contributions to their agriculture sectors, but the sector must wait to see if those countries will do so.
Another major concern is the greater flexibility for EU countries in their choices and implementation of their national plans. Although customization can have advantages, the ECA warns that this can undermine the common character of the agricultural policy and lead to distortions of competition between EU countries.
This greater autonomy for EU countries in agricultural policy was initiated several years ago with the introduction of the so-called national strategic plans, partly at the insistence of farmers and their organizations who oppose too much control from Brussels.
There is also uncertainty about which measures must be accounted for based on actual production, and which according to accounting milestones or theoretical targets. According to the Court of Auditors, accountability and traceability of EU subsidies up to the end beneficiaries must be guaranteed in all cases. In recent years, it has become clear in several EU countries that European agricultural subsidies have been subjected to manipulation and fraud.
The Commission defends its proposals, stating that the new setup is intended to reduce administrative burdens for farmers and to accelerate financial support to agricultural producers. In the coming year, the practical situation will be that Brussels' discussions about the new agricultural policy will coincide with negotiations on the new multiannual financial framework.