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The EU Budget and the CAP: An Agenda for the Review?

Author

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  • Rob Ackrill
  • Adrian Kay
  • David Harvey

Abstract

Counterpoint ‐ Ackrill and Kay Professor David Harvey's proposed agenda for CAP reform in EuroChoices 5(1) is, we believe, unrealistic. It pays insufficient attention to the politics of EU policy‐making and ignores the importance countries place on protecting their shares of EU spending. We recognise the incremental nature of CAP reform, but believe this can lead to significant cumulative effects. Our proposal builds on modulation to transfer more CAP spending from Pillar I to Pillar II. Farmers receiving the largest payments should have their payments cut through higher compulsory modulation rates. We also seek a reduction of EU spending on the CAP, with greater national contributions achieved through the established channel of co‐financing. Reply to Ackrill and Kay ‐ David Harvey Ackrill and Kay (A&K) say my suggestions for national subscription, co‐financing and discretion for CAP Pillar 1 spending and associated elimination of the troublesome UK rebate risk a stalemate, and that the further reform will necessarily be incremental, rather than radical. In reply, I argue that some radical reform will eventually be necessary, so that it makes sense to think about the required directions now. I also argue that my own suggestions are not so far from A&K's analysis as they seem to suppose. My suggestions seem little more likely to generate a stalemate than A&K's incremental change forecasts. Contrepoint ‐ Ackrill et Kay Le programme de réforme proposé par le professeur David Harvey dans le numéro 5(1) de Eurochoices nous semble tout à fait irréaliste. Faute de porter assez d'attention à l'économie politique des décisions européennes, il ignore l'importance que les pays attachent au maintien de leur part des dépenses européennes. Nous pensons que les réformes de la PAC ne peuvent être que progressives, mais que de tels processus sont susceptibles d'engendrer des effets cumulatifs importants. Notre proposition repose sur la modulation des transferts budgétaires à renforcer entre le premier et le second pilier. Les agriculteurs qui reçoivent les paiements les plus importants verraient leurs paiements amputés par l'intermédiaire de taux de modulation obligatoires majorés. On pourrait aussi rechercher une diminution des dépenses de la PAC en comptant sur une augmentation des contributions nationales qui passeraient par les canaux habituels du cofinancement. Résponse à Ackrill et Kay ‐ David Harvey Ackrill et Kay affirment que mes suggestions pour le cofinancement et la réduction des dépenses du premier pilier de la PAC, qui permettraient l'élimination des ennuis du Royaume Uni, comportent un risque de blocage, et que de nouvelles réformes devraient être progressives plutôt que radicales. En réponse, je soutiens que des réformes radicales seront nécessaires à terme, de sorte qu'il n'est pas dépourvu de sens de réfléchir dès maintenant à la direction qu'elles pourraient prendre. Je soutiens aussi que mes propositions ne sont pas aussi éloignées de celles de A et K que ceux‐ci semblent croire. Mes propositions sont sans doute un peu moins susceptibles de conduire à un blocage que les prévisions de changements progressifs envisagés par A et K. Kontrapunkt ‐ Ackrill und Kay Die in EuroChoices 5(1) von Professor David Harvey vorgeschlagene Agenda für die Reform der GAP ist unserer Meinung nach unrealistisch. Sie schenkt den Politiken zur politischen Entscheidungsfindung in der EU zu wenig Aufmerksamkeit und ignoriert, wie viel Bedeutung die Mitgliedsländer dem Schutz ihrer Anteile an den EU‐Ausgaben beimessen. Wir erkennen die inkrementelle Natur der Reform der GAP; glauben jedoch, dass dies zu bedeutsamen kumulierten Effekten führen kann. Unser Vorschlag stützt sich auf die Modulation, mehr Ausgaben der GAP von der ersten Säule in die zweite Säule zu übertragen. Den Landwirten mit den höchsten Zahlungen sollten diese durch höhere obligatorische Modulationsraten gekürzt werden. Wir streben ebenfalls eine Kürzung der EU‐Ausgaben für die GAP durch höhere nationale Beiträge im Rahmen der bereits eingeführten Kofinanzierung an. Antwort auf Ackrill und Kay ‐ David Harvey Ackrill und Kay (A&K) sind der Meinung, dass meine Vorschläge zur Abschaffung des problematischen “Britenrabatts” durch nationale Zustimmung, nationale Kofinanzierung und nationale Ermessensspielräume für die Ausgaben im Rahmen der ersten Säule der GAP das Risiko einer Pattsituation bergen. Sie sind darüber hinaus der Auffassung, dass die Reform im weiteren Verlauf notwendigerweise schrittweise und nicht radikal erfolgen wird. Als Antwort darauf führe ich an, dass eine radikale Reform letztendlich erforderlich sein wird, so dass es sinnvoll ist, jetzt über die erforderliche Richtung nachzudenken. Darüber hinaus wende ich ein, dass meine Vorschläge inhaltlich nicht so weit von der Analyse von A&K entfernt sind, wie diese es selbst scheinbar annehmen. Die Wahrscheinlichkeit, dass meine Vorschläge zu einer Pattsituation führen, scheint kaum höher zu sein als die Prognosen für eine schrittweise Veränderung von A&K.

Suggested Citation

  • Rob Ackrill & Adrian Kay & David Harvey, 2006. "The EU Budget and the CAP: An Agenda for the Review?," EuroChoices, The Agricultural Economics Society, vol. 5(3), pages 20-25, December.
  • Handle: RePEc:bla:eurcho:v:5:y:2006:i:3:p:20-25
    DOI: 10.1111/j.1746-692X.2006.00039.x
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    1. Unknown, 2005. "Forward," 2005 Conference: Slovenia in the EU - Challenges for Agriculture, Food Science and Rural Affairs, November 10-11, 2005, Moravske Toplice, Slovenia 183804, Slovenian Association of Agricultural Economists (DAES).
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    1. David R. Stead, 2007. "The Mansholt Plan Forty Years On Le plan Mansholt quarante ans après Der Mansholt‐Plan vierzig Jahre später," EuroChoices, The Agricultural Economics Society, vol. 6(3), pages 40-45, December.
    2. Allan Buckwell, 2007. "The Next Steps in CAP Reform Les prochaines étapes de la réforme de la PAC Die nächsten Schritte in der Reform der GAP," EuroChoices, The Agricultural Economics Society, vol. 6(2), pages 13-19, August.
    3. Alan Greer, 2013. "The Common Agricultural Policy and the EU budget: stasis or change?," European Journal of Government and Economics, Europa Grande, vol. 2(2), pages 119-136, December.

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