EU Proposes €300 Billion CAP Budget Cut, Sparking Heated Debate

The European Commission has proposed a new Multiannual Financial Framework (MFF) for 2028-2034, which includes a Common Agricultural Policy (CAP) budget of €300 billion. This marks a significant reduction of over 20% compared to the previous framework, sparking mixed reactions from EU member states. The proposal also allows states to supplement this budget through national and regional plans.

The proposed MFF faces strong resistance from various sectors. Farmers, environmental organizations, and several EU countries express concerns about food security and the Green Deal. While the EU cuts agricultural funds, Germany increases its agricultural budget and restores the agricultural diesel refund, highlighting a growing tension between EU policy and national interests.

Brussels' plan involves combining CAP and cohesion funds into a single pot, abolishing the previous separation between agricultural promotion and regional development. The agricultural budget is set to decrease by over 20 percent, from 387 billion euros to 302 billion euros from 2028 onwards. France and Italy oppose the cuts, with Italy's agriculture minister calling the proposals 'unacceptable'. Eastern German federal states also warn of an 'attack on rural areas'.

European Commission President Ursula von der Leyen defends the plans, but negotiations are expected to be challenging. Several agriculture ministers have already announced their opposition. The German Environmental Aid warns that loosening the link between direct payments and environmental performance could lead to a 'race to the bottom' in environmental standards.

The proposed MFF and CAP budget cuts have sparked a heated debate among EU member states and various interest groups. As negotiations commence, the future of agricultural policy and rural development in the EU remains uncertain.