CAP revision will be painful for Greece
The interim revision of the European Union’s Common Agricultural Policy (CAP) has begun much earlier than expected and has caused a lot of anxiety. At this stage, with the exception of wheat and rice, where proposals to cut subsidies have already been formulated, Greek farmers are not aware of the exact impact the CAP revision will have on them. The Commission is due to make most of its proposals concerning farm products in 2003. The Commission’s outline proposal aims at lowering the burden of the CAP, which costs more than 43 billion euros annually and accounts for over 40 percent of the EU’s total budget. Specifically, it proposes ending the system of subsidies according to production and replacing them by income support based on farm size. This support may not exceed 300,000 euros annually for the largest farms, provided that the producers adhere to certain production quality and environmental standards. Subsidies will be gradually reduced over a period of seven years. To some extent, they will be replaced by an income support of 5,000 euros per two full-time employees, irrespective of the type of farming or production size. Almost all farming activities in Greece will be eligible for this subsidy. However, cotton-growers, used to being subsidized for producing vast quantities without employing too many people, will find they will be getting much less money. They are expected to again take to the streets in protest, as they did this year because – for the first time – they were not only not subsidized for the quantity they (claimed to have) produced, but were, in certain cases, penalized for overproduction and for fraudulent declarations. Greece gets about 2.9 billion euros per year in farm subsidies, which account for 40 percent of the farmers’ total income. Unfortunately, Greek farmers are neither flexible enough nor attuned to market needs to adapt their production fast enough. The European Commission hopes to save 600 million euros in the first year of CAP reform, a sum which will increase by 3 percent over the following seven years. The savings will be targeted toward so-called «restructuring programs.» Becoming eligible for aid from these programs requires good planning, something altogether missing from the Greek agricultural sector. It also mandates a contribution from the State, accounting for 25 percent of the total subsidy. This is money the Greek State is unlikely to find. And, therefore, a lot of money available through the EU will likely be lost. A very important part of the Commission’s proposals is their emphasis on environment protection, food safety and the humane treatment of animals. In cases where these standards are not met, income support will be reduced. This pro-environmental stance of the EU is expected to benefit countries such as Germany, Italy and Netherlands, countries with the good sense to respond to these needs by imposing stricter standards and placing emphasis on organic products, another sector where Greece lags far behind. Never mind the Correct Farming Practice codes and total quality products, on which very few Greek farmers have any knowledge. Our farms continue to consume water in bountiful excess and programs such as the one against nitrogen pollution were simply ignored. Another Commission proposal involved subsidizing the raising of «energy crops,» that is, those that provide fuel when burned. Subsidies for these biofuels are made available only when the farmers have concluded an agreement with a biofuel processing industry. Directed by Chuck Russell, starring The Rock, Michael Clarke Duncan. Five thousand years ago in the city of Gomorrah, an evil ruler is confronted by a skilled assassin.
