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Agriculture, does Europe cut funds?

Alarm from the governors of the Regions and Confagricoltura over the transitional decisions of the EU Commission. For Italy, about 5 billion less in the period 2021-2027. Repercussions on biology. Speech by Bonaccini

Agriculture, does Europe cut funds?

Is the EU multiannual budget for agricultural policy really at risk? What are the effects on Italian agriculture, in a non-thriving period and with many commitments by companies to encourage organic farming? The governors of the Regions are concerned about the news arriving from Brussels for the announced and partly decided cuts, starting from 2021. The President of the State-Regions and Emilia Romagna Conference, Stefano Bonaccini has already asked Brussels not to provide for any curtailment for those contributions that have been very important in the years of economic crisis that has affected all European countries to a certain extent.

“That money – Bonaccini said – allowed us to lend a hand to the local area, the economy, businesses. The commission, however, has already adopted transitional regulations to bring the Common Agricultural Policy (CAP) beyond 2020. On the same line too Confagriculture that "with respect to the proposal for a regulation for the one-year extension of the reform of the CAP, he hopes that there will be no new cuts in the funds destined for Italian agriculture". According to the president of Confagricoltura, Massimiliano Giansanti, “the proposal put forward by the Commission is an absolutely unfounded proposal from an economic point of view, because it does not take into account the existing gaps in production costs and purchasing power standards. Furthermore, it does not take due account of the fundamentals of Italian agriculture in terms of employees, number of farms, agricultural area and productivity”.

The proposals extend all the agricultural programs adopted by the European Commission on 31 October and apply a reduction in spending within the EU's multiannual financial framework. For Italy, all this is equivalent to minus 2021 billion in direct payments and 3,56 for rural development in 1,27. Even more in detail, we learn from the State-Regions Conference, 140 million (-3,9%) and 230 million less (-15,6%) compared to next year's ceiling. Technically, the transitional regulations take note of the prolongation of the stalemate on the negotiations on the reform and on the 2021-2027 Community budget.

The reversal of agricultural cuts, from the point of view of the Commissioners, is therefore, in fact. But the game is political and this time, unlike in the recent past, the Italian institutions will have to be truly cohesive in order not to depress the agricultural sector. We will continue to insist on trying to avoid "cuts and we will also ask for a meeting soon, as soon as the new Commission is appointed," says Bonaccini. The idea is that the new CAP can enter into force on 1 January 2022. The transitional provisions adopted will, however, have to be discussed by the European Council and the European Parliament, the seats of the final confrontation with the representatives of the states to do battle. 

The context is also not reassuring for American tariffs, the consequences of Brexit and the transversal efforts to grow organic and protected crops. Meeting Commissioner Oettinger, in a previous meeting, the Italian Regions recalled having obtained the zeroing of the cuts, while now there is talk of a possible reintegration. Good news is that of zero tolerance for fraud of EU funds. The Brussels technicians explained that in the future the responsibility for control will be shared with the member countries. The Commission, however, will be able to intervene directly with very heavy sanctions such as the suspension of the disbursement of funds and the financial correction to be paid by the individual country. On this front, Italy will have to be very scrupulous, given the previous millionaire scams that have tarnished the credibility of thousands of businesses and agricultural workers. Minister Teresa Bellanova will have things to do with her.

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