We’re threatened by 10% CAP plan
But 15 states would benefit, if Britain and the Netherlands win support for their call on member states to pay for some of the Common Agricultural Policy.
IFA President John Dillon warned in January that the EU Budget for 2007 to 2013 was one of several EU issues which would pose a threat to Irish farmers this year.
His fears have now been confirmed by a report prepared for EU Agriculture Commissioner Mariann Fischer Boel at the request of the European Parliament's rapporteur on the EU budget, Reimer Boege.
The report shows that France and Spain would lose most financially, if part of the massive subsidies which the EU hands out to farmers was to be financed by national budgets.
Germany would be the biggest beneficiary, gaining €185 million net a year, if 10% of farm aid was "re-nationalised".
France would lose €200 million annually in net transfers from the EU; Spain would receive €188 million less per year.
Apart from France and Spain, the report said Greece, Ireland, Denmark, Portugal and Finland would lose out financially if farm spending were partly re-nationalised.
The beneficiaries would be Germany, Italy, Britain, the Netherlands and Belgium.
All 10 mostly east European new members would benefit from such a reform, at least during the 2007 to 2013 period.
Their accession treaty requires the EU to gradually phase in direct subsidies to farmers from the initial level of 25% in 2004 to 100% in 2014. Until 2013, they would not finance farm aid from their national budgets, but they would pay lower EU membership fees. The report said those countries would gain some €1.3 billion from 2007 to 2013, including €466 billion gained by Poland.
Commissioner Fischer Boel has said she does not support national "co-financing" of farm subsidies.
But the European Parliament wants extra farm subsidies for Romania and Bulgaria, due to join the EU in 2007, to come from the existing total, and the equivalent amount of the common farm budget would have be co-financed by national governments.
EU spending on direct subsidies to farmers, the biggest chunk of the CAP, is forecast to cost €215 billion over the seven-year budget period. Cutting those funds by 10% would save about €21.5 billion, but the net benefits would be spread unevenly.
