The Fischler Reform and the Health Check of the CAP

During his second tenure as Commissioner for Agriculture and Rural Development, Franz Fischler observed a progressively favorable political climate for a second reform of the CAP. The mid-term review of the agricultural policy for the 2000–2006 period, in 2003, provided the opportunity to decouple agricultural support from production. The solution implemented involves converting the direct payments provided to farmers for each specific product into a unified single farm payment. This amount, linked to eligible hectares, is awarded to the farmer regardless of his production decisions and even if he ceases activity, contingent upon his commitment to preserve the land in good agronomic and environmental conditions. The Fischler reform, initially targeting only certain productions, is progressively extended to all others as their respective Common Market Organizations undergo reforms and are integrated into a simplified single Common Market Organization (CMO). The following Commissioner for Agriculture and Rural Development, Marianne Fischer Boel, undertakes this task as part of the so-called Health Check of the CAP. Throughout this period, the second pillar of the CAP, dedicated to rural development policy, is gradually strengthened, although its significance remains subordinate to the first pillar concerning income and market policy. In the meantime, new and severe criticisms regarding the agricultural budget emerged, albeit temporarily alleviated by a 2002 agreement between French President Chirac and German Chancellor Schroeder, which remains valid until 2013. However, a substantial pressure on agricultural spending persists.