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Irish Examiner
7 days ago
- Business
- Irish Examiner
What the proposed CAP changes mean for Irish farmers
The proposed EU budget post-2027 has caused waves in the agricultural sphere, with calls to action and pushback coming from all angles. The main worry is the proposed absorption of the CAP under the National and Regional Partnerships Plans (NRPP). The European Commission advertises this move to be more efficient and have a stronger, impactful use of EU funding with agricultural policy 'at its core'. Concerns have been raised revolving around whether money normally allocated to the CAP will be redirected and funnelled into other sections of the NRPP. Initially proposed for the NRPP is €865bn within the 2028-2034 EU budget. Billy Kelleher, MEP for Ireland South, said: 'The 21% cut in CAP funding will cause havoc among farm families in Ireland and across the [European] Union.' Another concern within the proposal is that the income support of €300bn ringfenced for EU farmers post 2027. This is a drop from the €387bn previously set aside for farmers within the current budget. This would mean the nearly 120,000 farmers who avail of EU-funded supports such as Basic Income Support for Sustainability (BISS) or Complimentary Redistributive Income Support for Sustainability (CRISS) could experience drops in the amount they receive. Billy Kelleher, MEP for Ireland South, said: The 21% cut in CAP funding will cause havoc among farm families in Ireland and across the [European] Union… "Perhaps it's a negotiating tactic to force member states to increase their national contributions or to agree on new own resources. Either way, it will make farmers deeply worried about their future viability,' said . According to the 2024 National Farm Survey conducted by Teagasc, direct payments amounted to 60% contribution to a family farm income in 2024 across the sectors examined (dairy, cattle rearing, cattle other, sheep, and tillage). This cut will have significant effects on farming families' incomes and livelihoods if a ringfence of €300bn is agreed. A 'Unity Safety Net' of €900m per year of the budget — a total of €6.3bn — is proposed for emergencies within the sector. This is meant to help ensure stable markets and to assist in times of crisis such as extreme weather events, geopolitical situations or persistent structural challenges for EU-based farmers. With the proposals of a single 'rule book', streamlined payments and a young and new farmers' 'starter pack' for targeted supports could benefit small enterprise farmers and young farmers entering or inheriting within the industry, reducing administrative burdens and offering lump sums. Overview is vague on eco schemes Notably vague within the proposal overview made public by the EU Commission was any mention of farming sustainability and eco schemes. Mentions of sustainability schemes and practices were made with no clear outline or budget proposed. In contrast, a leaked document that was circulated before the initial official proposal made several mentions of eco and sustainability schemes with recommendations to enhance these and similar areas for farmers to receive support based on uptake of beneficial practices. Areas outlined in this leaked document suggested support be provided for farmers or individuals who commit to climate change adaptations, climate change mitigations, soil health, preservation of biodiversity, and development of organic farming. Ireland's presidency of the EU Council With the uproar surrounding the proposed EU budget post-2027, the Irish presidency of the EU Council, occurring in the second semester of 2026, will take place throughout a period of finalisation of the 2028-2034 EU budget. Ultimately, this will have farmers and their organisations alike watching the Department of Agriculture closely. The Irish presidency of the EU Council will mean Irish ministers chairing council meetings, and our very own agriculture minister will chair talks that will focus on the finalisation of the Multiannual Financial Framework (MFF) in the context of agriculture. 'We'll negotiate through this proposal line by line and we'll have a very significant role to play during our EU Presidency in the second half of next year,' said agricultural minister, Martin Heydon, in a recent press release regarding the formation of a CAP consultation committee. The last Irish presidency occurred in 2013, which oversaw the agreement of the MFF of the time. Agreements were also reached on the seventh Environmental Action Programme and the reform of the Common Agricultural Policy. Mr Heydon opened the first meeting of the CAP Consultation Committee, made up of key stakeholders, on July 17, to discuss the prospective CAP and EU Budget post-2027. CAP consultation committee The committee contains representatives from: Department of Agriculture, Food & the Marine, the Department of Housing, Local Government and Heritage (including NPWS), the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, the Department of Climate, Energy and the Environment, the Department of Rural and Community Development and the Gaeltacht; The Agricultural Consultants Association, An Taisce, Bord Bia, the County and City Management Association, the Environmental Pillar, the EPA, Ibec; Irish Cattle & Sheep Farmers Association (ICSA), Irish Co-operative Organisation Society (ICOS), Irish Creamery Milk Suppliers Association (ICMSA), Irish Farmers Association (IFA), Irish Grain Growers Association, Irish Natura & Hill Farmers Association, Irish Organic Association; Irish Rural Link (also representing National Rural Network), Local Development Company Network, Macra na Feirme, National Biodiversity Data Centre, National CAP Network, academic members (UCD and UCC), Teagasc, and Women in Agriculture Stakeholder Group. Mr Heydon said: 'The committee will play a crucial role in ensuring that the CAP reform process is transparent, inclusive, and responsive to the needs of various stakeholders within the agricultural and rural community.' He concluded: 'The Commission proposals for new CAP structures in a new MFF architecture will require careful analysis. This seems like a very big change, but in fact this announcement marks the starting point in a long negotiating process. "I will continue to work very closely with Commissioner Hansen, the European Parliament, and my EU counterparts to ensure that the end result delivers the best possible outcome for Irish farmers and the rural communities in which they live.' Following the committee's meeting, a spokesperson for the Department of Agriculture, Food and the Marine informed the Irish Examiner that: 'Committee members were briefed on the European Commission announcements, bearing in mind that the detailed CAP legislative proposals have not yet been published. Committee members gave their initial reactions to the announcements and outlined their priorities for the CAP negotiations. Opening the meeting, Mr Heydon emphasised that the commission proposals are only the first step in a lengthy negotiation process. He emphasised that stakeholders on the committee will be essential partners in the process of working to secure a robust CAP that delivers for Ireland and for all member states.'
Euronews
18-07-2025
- Business
- Euronews
Ursula von der Leyen's new €2 trillion EU budget: Six key takeaways
For Ursula von der Leyen, the sky might not be the limit. Her proposal for the next seven-year budget of the European Union has taken Brussels by storm with its headline figure: €2 trillion, larger than any number rumoured or leaked in anticipation of the high-stakes announcement. The next budget "will be the most ambitious ever" in the bloc's history, the president of the European Commission told reporters on Wednesday. "It is more strategic, more flexible, more transparent," she went on. "We are investing more in our capacity to respond and more in our independence." But what makes her blueprint so special and distinct from its predecessors? Here are the six takeaways from von der Leyen's budget, under the caveat that things will dramatically change as the no-holds-barred negotiations get underway. Crisis mindset Von der Leyen was perfectly candid about the inspiration behind the €2 trillion budget: her own experience battling back-to-back crises. Her six-year stay in Brussels has seen the COVID-19 pandemic, Russia's invasion of Ukraine, a spike in energy prices, record-breaking inflation, unfair competition from China, devastating natural disasters, disrupting new technologies, cyberattacks, sabotage against critical infrastructure and, more recently, Donald Trump's tariffs. The seemingly never-ending string of challenges has put the bloc's common budget under unprecedented strain to the point that von der Leyen had to ask the 27 leaders to approve a financial top-up in the middle of her first mandate. "Each time, it was extremely difficult to react fast and with the financial firepower that was necessary," she admitted, noting that 90% of the existing funds are already "fixed" and therefore leave a negligible margin for manoeuvre. "We want greater flexibility. Not everything should be decided once for seven years," she said. As a result, the 52 programmes in the ongoing budget will be reduced to 16 in the next, with a share of the money left completely unallocated to allow the Commission and member states to respond faster to the changing circumstances on the ground. At the same time, von der Leyen proposes a special mechanism of up to €400 billion in loans to deploy in case an "unknown crisis hits". The tool will not be immediately created; rather, it will be an in-waiting reserve to be triggered when the need arises. "It's something we have as a possibility, but not to be used for normal times," she said. Contentious merger Brussels is known for blocking controversial mergers in the European market. This time, von der Leyen is turning a blind eye. The Commission chief has envisioned merging what have until now been the budget's two largest envelopes – the Common Agricultural Policy (CAP) and the cohesion funds – into one single pot of money. This brand-new pillar, known as the National and Regional Partnerships Plans, will also encompass funds for social policy, fisheries and maritime policy, migration, border management and internal security, for a whooping €865 billion across seven years. Agriculture and cohesion are "the central pillars of European solidarity and investment in the European model", von der Leyen said. Although the €865 billion might seem enticing, the devil's in the details. The next budget will keep €300 billion ring-fenced for the CAP, including the jealously guarded subsidies for farmers. By comparison, the current budget allocates €386.6 billion for the entire CAP, with €270 billion alone for direct payments. Different agricultural policy experts contacted by Euronews all estimate that, when adjusted for inflation, von der Leyen's proposal will represent a 20% to 30% cut in real terms to the bloc's agricultural spending. It is a remarkable reduction, considering the shockwaves sent by the 2023-2024 farming protests. The move has been immediately denounced by the agrifood sector and is likely to be contested by the CAP's largest recipients, like France, Italy and Spain. At the same time, it will be welcomed by northern member states, which have consistently advocated for downsizing the CAP's lasting dominance in favour of modern-day priorities. Strings attached Another headline-making novelty in von der Leyen's proposal is her strong focus on the rule of law. Her first mandate saw her executive freeze billions in EU funds for Hungary and Poland over their democratic backsliding and continued legal breaches. The freezing, however, only covered a share of the allocated funds to the wayward countries, fuelling criticism that the Commission was carelessly allowing taxpayers' money to flow despite violations of EU law and fundamental rights. The disputes left a mark on von der Leyen: she now intends to make all funds, from farming subsidies to social policy, conditional on the respect for the rule of law. "The rule of law is a must for all funding from the EU budget," she said on Wednesday. "We will ensure responsible spending and full accountability, with very strong safeguards, and the right incentives. This serves the citizens." Member states will have to demonstrate compliance with the rule of law before unlocking the National and Regional Partnerships Plans. Violations will lead to the freezing of payments at "any moment" according to the "nature, duration, gravity and scope of the identified breach", the Commission says. The paralysed money will be channeled into other priorities if the wrongdoing is not properly addressed. While the strings attached will be greeted by most member states, particularly net contributors, it is improbable, to say the least, that Hungarian Prime Minister Viktor Orbán, the chief critic of the rule-of-law conditionality, will endorse the revamped system. Approving the budget requires unanimity, meaning vetoes apply. Standing strong Von der Leyen's massive budget is informed and inspired by the geopolitical tumult of the 21st century and, in particular, Russia's brutal war on Ukraine. Among the unique features in her ambitious blueprint is a separate €100 billion fund dedicated exclusively to supporting Ukraine's recovery and reconstruction, the costs of which swell with each day that Moscow continues its bombardment. The idea follows the steps of the €50 billion Ukraine Facility that leaders approved in early 2024 to make aid more reliable and predictable. It combined non-repayable grants with favourable loans to help Kyiv sustain its fragile economy and repair its infrastructure. The Facility, though, is rapidly running dry. "We are suggesting €100 billion to fill up again the Ukraine Facility," von der Leyen said. Moreover, von der Leyen says the new budget, which might take two years to negotiate, should be revised in the future if any of the candidate countries to join the bloc, such as Ukraine, Moldova, North Macedonia, Albania or Montenegro, completes the process. The ad-hoc review will take into account the size of the new member state, its financial needs and its contribution to the common budget. "It worked in the past accessions, and it will work now," she said. Taking up arms Another evident consequence of Russia's war of aggression is the concentrated push to reinforce defence capabilities across Europe. Leaders have set 2030 as the date by which the bloc must be ready to deter a potential Russian attack. Fulfilling this mission requires eye-watering amounts of money to reverse decades of complacency, expand industrial production and acquire cutting-edge lethal equipment. As part of her plan, von der Leyen puts on the table €131 billion to boost the defence and space sectors, which Brussels considers to be intrinsically linked. A "Buy European" clause will apply to ensure a preference for domestic companies. But there's a catch: under the EU treaties, the common budget is strictly prohibited from financing the direct purchase of weapons and ammunition, which, as it happens, is the most pressing priority for member states today. Von der Leyen tiptoes around the rules by focusing the money on other aspects of arms production, such as research and innovation, economies of scale, the commercialisation of prototypes, the mobilisation of private investment and the aggregation of demand. She also wants to channel more EU funds into transport infrastructure for military mobility "so that our armed forces can move faster, better and together." In other words, everything except the purchase of the weapons themselves. Quest for cash Ambition comes with a price. Von der Leyen's €2 trillion budget for the 2028-2032 period represents a sizable increase compared to the €1.2 trillion budget agreed by leaders in the summer of 2020. Still, she insists the hike should not be felt in the capitals, as long as the capitals empower the Commission to raise money independently. Traditionally, Brussels has relied on two resources – customs duties and value-added tax (VAT) – to cover a portion of the common budget. Now, she wants to add five more. Two of them will be based on the bloc's climate policies: the Emissions Trading System (ETS), the market where companies buy and sell credits to compensate for their greenhouse gas emissions, and the Carbon Adjustment Mechanism (CBAM), which will put an extra price on carbon-intensive imports coming into EU territory. Moreover, von der Leyen envisages three new taxes on electronic waste (e-waste), tobacco products and companies with an annual turnover above €100 million. Altogether, the Commission estimates the old and new own resources will bring in €58.5 billion per year. This amount will be enough to cover the €24 billion in annual repayments of the COVID-era debt and contribute to other envelopes. "The goal is simple: we have to repay our shared recovery borrowing (and) must meet our modern priorities," von der Leyen said. However, the €58.5 billion is idealistic, as it takes for granted that all five measures, including the new taxes, will be swiftly endorsed by member states. In reality, the taxes will be extremely contentious and risk being shot down in the bitter negotiations. Tellingly, von der Leyen's previous proposal to revamp the own resources is still on the table, awaiting a resolution. Gerardo Fortuna and Paula Soler contributed reporting.
Euronews
17-07-2025
- Business
- Euronews
Ursula von der Leyen's new €2 trillion EU budget: 6 key takeaways
For Ursula von der Leyen, the sky might not be the limit. Her proposal for the next seven-year budget of the European Union has taken Brussels by storm with its headline figure: €2 trillion, larger than any number rumoured or leaked in anticipation of the high-stakes announcement. The next budget "will be the most ambitious ever" in the bloc's history, the president of the European Commission told reporters on Wednesday. "It is more strategic, more flexible, more transparent," she went on. "We are investing more in our capacity to respond and more in our independence." But what makes her blueprint so special and distinct from its predecessors? Here are the six takeaways from von der Leyen's budget, under the caveat that things will dramatically change as the no-holds-barred negotiations get underway. Crisis mindset Von der Leyen was perfectly candid about the inspiration behind the €2 trillion budget: her own experience battling back-to-back crises. Her six-year stay in Brussels has seen the COVID-19 pandemic, Russia's invasion of Ukraine, a spike in energy prices, record-breaking inflation, unfair competition from China, devastating natural disasters, disrupting new technologies, cyberattacks, sabotage against critical infrastructure and, more recently, Donald Trump's tariffs. The seemingly never-ending string of challenges has put the bloc's common budget under unprecedented strain to the point that von der Leyen had to ask the 27 leaders to approve a financial top-up in the middle of her first mandate. "Each time, it was extremely difficult to react fast and with the financial firepower that was necessary," she admitted, noting that 90% of the existing funds are already "fixed" and therefore leave a negligible margin for manoeuvre. "We want greater flexibility. Not everything should be decided once for seven years," she said. As a result, the 52 programmes in the ongoing budget will be reduced to 16 in the next, with a share of the money left completely unallocated to allow the Commission and member states to respond faster to the changing circumstances on the ground. At the same time, von der Leyen proposes a special mechanism of up to €400 billion in loans to deploy in case an "unknown crisis hits". The tool will not be immediately created; rather, it will be an in-waiting reserve to be triggered when the need arises. "It's something we have as a possibility, but not to be used for normal times," she said. Contentious merger Brussels is known for blocking controversial mergers in the European market. This time, von der Leyen is turning a blind eye. The Commission chief has envisioned merging what have until now been the budget's two largest envelopes – the Common Agricultural Policy (CAP) and the cohesion funds – into one single pot of money. This brand-new pillar, known as the National and Regional Partnerships Plans, will also encompass funds for social policy, fisheries and maritime policy, migration, border management and internal security, for a whooping €865 billion across seven years. Agriculture and cohesion are "the central pillars of European solidarity and investment in the European model", von der Leyen said. Although the €865 billion might seem enticing, the devil's in the details. The next budget will keep €300 billion ring-fenced for the CAP, including the jealously guarded subsidies for farmers. By comparison, the current budget allocates €386.6 billion for the entire CAP, with €270 billion alone for direct payments. Different agricultural policy experts contacted by Euronews all estimate that, when adjusted for inflation, von der Leyen's proposal will represent a 20% to 30% cut in real terms to the bloc's agricultural spending. It is a remarkable reduction, considering the shockwaves sent by the 2023-2024 farming protests. The move has been immediately denounced by the agrifood sector and is likely to be contested by the CAP's largest recipients, like France, Italy and Spain. At the same time, it will be welcomed by northern member states, which have consistently advocated for downsizing the CAP's lasting dominance in favour of modern-day priorities. Strings attached Another headline-making novelty in von der Leyen's proposal is her strong focus on the rule of law. Her first mandate saw her executive freeze billions in EU funds for Hungary and Poland over their democratic backsliding and continued legal breaches. The freezing, however, only covered a share of the allocated funds to the wayward countries, fuelling criticism that the Commission was carelessly allowing taxpayers' money to flow despite violations of EU law and fundamental rights. The disputes left a mark on von der Leyen: she now intends to make all funds, from farming subsidies to social policy, conditional on the respect for the rule of law. "The rule of law is a must for all funding from the EU budget," she said on Wednesday. "We will ensure responsible spending and full accountability, with very strong safeguards, and the right incentives. This serves the citizens." Member states will have to demonstrate compliance with the rule of law before unlocking the National and Regional Partnerships Plans. Violations will lead to the freezing of payments at "any moment" according to the "nature, duration, gravity and scope of the identified breach", the Commission says. The paralysed money will be channeled into other priorities if the wrongdoing is not properly addressed. While the strings attached will be greeted by most member states, particularly net contributors, it is improbable, to say the least, that Hungarian Prime Minister Viktor Orbán, the chief critic of the rule-of-law conditionality, will endorse the revamped system. Approving the budget requires unanimity, meaning vetoes apply. Standing strong Von der Leyen's massive budget is informed and inspired by the geopolitical tumult of the 21st century and, in particular, Russia's brutal war on Ukraine. Among the unique features in her ambitious blueprint is a €100 billion fund dedicated exclusively to supporting Ukraine's recovery and reconstruction, the costs of which swell with each day that Moscow continues its bombardment. The idea follows the steps of the €50 billion Ukraine Facility that leaders approved in early 2024 to make aid more reliable and predictable. It combined non-repayable grants with favourable loans to help Kyiv sustain its fragile economy and repair its infrastructure. The Facility, though, is rapidly running dry. "We are suggesting €100 billion to fill up again the Ukraine Facility," von der Leyen said. Moreover, von der Leyen says the new budget, which might take two years to negotiate, should be revised in the future if any of the candidate countries to join the bloc, such as Ukraine, Moldova, North Macedonia, Albania or Montenegro, completes the process. The ad-hoc review will take into account the size of the new member state, its financial needs and its contribution to the common budget. "It worked in the past accessions, and it will work now," she said. Taking up arms Another evident consequence of Russia's war of aggression is the concentrated push to reinforce defence capabilities across Europe. Leaders have set 2030 as the date by which the bloc must be ready to deter a potential Russian attack. Fulfilling this mission requires eye-watering amounts of money to reverse decades of complacency, expand industrial production and acquire cutting-edge lethal equipment. As part of her plan, von der Leyen puts on the table €131 billion to boost the defence and space sectors, which Brussels considers to be intrinsically linked. A "Buy European" clause will apply to ensure a preference for domestic companies. But there's a catch: under the EU treaties, the common budget is strictly prohibited from financing the direct purchase of weapons and ammunition, which, as it happens, is the most pressing priority for member states today. Von der Leyen tiptoes around the rules by focusing the money on other aspects of arms production, such as research and innovation, economies of scale, the commercialisation of prototypes, the mobilisation of private investment and the aggregation of demand. She also wants to channel more EU funds into transport infrastructure for military mobility "so that our armed forces can move faster, better and together." In other words, everything except the purchase of the weapons themselves. Quest for cash Ambition comes with a price. Von der Leyen's €2 trillion budget for the 2028-2032 period represents a sizable increase compared to the €1.2 trillion budget agreed by leaders in the summer of 2020. Still, she insists the hike should not be felt in the capitals, as long as the capitals empower the Commission to raise money independently. Traditionally, Brussels has relied on two resources – customs duties and value-added tax (VAT) – to cover a portion of the common budget. Now, she wants to add five more. Two of them will be based on the bloc's climate policies: the Emissions Trading System (ETS), the market where companies buy and sell credits to compensate for their greenhouse gas emissions, and the Carbon Adjustment Mechanism (CBAM), which will put an extra price on carbon-intensive imports coming into EU territory. Moreover, von der Leyen envisages three new taxes on electronic waste (e-waste), tobacco products and companies with an annual turnover above €100 million. Altogether, the Commission estimates the old and new own resources will bring in €58.5 billion per year. This amount will be enough to cover the €24 billion in annual repayments of the COVID-era debt and contribute to other envelopes. "The goal is simple: we have to repay our shared recovery borrowing (and) must meet our modern priorities," von der Leyen said. However, the €58.5 billion is idealistic, as it takes for granted that all five measures, including the new taxes, will be swiftly endorsed by member states. In reality, the taxes will be extremely contentious and risk being shot down in the bitter negotiations. Tellingly, von der Leyen's previous proposal to revamp the own resources is still on the table, awaiting a resolution. Gerardo Fortuna and Paula Soler contributed reporting.
