Parliament approves an aid package in view of the new CAP which starts in 2023. It will be almost completely sustainable with new multi-year programs on organic farming and environmentally friendly measures, extended beyond three years. But by 2022, 8 billion euros will be disbursed for the recovery of the entire agri-food chain. With 653 votes in favour, the European Parliament approved the transitional rules of the continental agricultural policy. After discussions and conflicts between governments, the purse strings are finally opening together with the exemptions. However, the text approved by Parliament needs the go-ahead from the European Council. But given the broad array in favor, there shouldn't be any obstacles to making the first economic sector of the Union more efficient and greener.
The Covid epidemic has accelerated decisions for the next few years by recognizing the deterioration in production and the crisis in trade. More than one government in recent months had highlighted the contradictions between emergency management and green change in European agriculture. Now, after the vote, the transition certainly promises to be smoother. The key point is the money to be distributed as soon as possible.
According to MEPs, 30% of the funds should be available in 2021, while the remaining 70% will be disbursed in 2022. In the meantime, each Parliament will be able to decide autonomously on other support measures. Without this entering into conflict with the approved transition and the new Agricultural Policy from 2023. In detail, at least 37% of European funding must be devoted to the recovery of organic farmers, to good practices for the environment and climate. While another 55% will need to benefit investments that contribute to a resilient, sustainable and digital economic recovery and young farmer start-ups. On this front, Italy has some advantages with the non-repayable initiatives of the Ministry of Agricultural Policies in support of new youth agricultural businesses. Other tenders have already been announced in collaboration with the Regions.
The two years left before the entry into force of the CAP are therefore decisive tests for individual countries, since they will also cross the availability of the Recovery Fund. Throughout 2022 there will be money useful for rebalancing the sector, recovering expenses and remedying the bank exposures of companies and cooperatives. It is important to streamline administrative procedures and encourage eco-sustainable productions. An economic-financial bridge to be exploited well to increase the ability of companies to compete on the international market which at the end of 2020 returned to being lively after Trump's tariffs.
