Hot summer for EU leaders
They will focus on agriculture spending, which accounts for nearly half of the EU’s budget.
Nearly quarter of the EU budget is for direct payments to farmers, most of which are converted into the Single Payment this year.
As EU President, Luxembourg’s Prime Minister Jean-Claude Juncker wants governments to agree a joint budget positio before June. But leaders will be slow to negotiate and compromise at EU level, with general elections and EU Constitution referenda causing political paralysis across Europe.
While the UK, Germany, France, Austria, Sweden, and the Netherlands want to cut the EU budget, other member states want a bigger budget to pay for the sugar market reform, and take in the farmers of two new accession states, Romania and Bulgaria.
And when the UK takes over the EU presidency for six months from July, budget progress is even less likely, as the proposals on the table include scrapping an annual €3.5 billion rebate to London.
Farmers can only hope the CAP budget reaches 2007 relatively unscathed; if so, the Single Payment Scheme will have passed its biggest test all the way to 2013.
But until then, there is the danger of an unacceptable cut in the Single Payment, according to IFA President John Dillon.
He has called on the Irish Government to back the EU Commission and oppose the “Gang of Six” countries that are against an EU Budget increase.
“Between 2007 and 2013, agriculture will be the main vehicle to draw down EU funding for Ireland. Apart from the importance of this to the farming sector in Ireland, I believe it is in Ireland’s long-term interests to support the development of the economies of the new member states. Ireland has done well from EU membership. The new countries deserve a similar opportunity,” said Mr Dillon.
