Common Agricultural Policy reform: contributing now to the debate Water Directors meeting Segovia, 27-28 May 2010 Nicolas ROUYER European Commission DG Environment Water Unit

Overview presentation Common Agricultural Policy reform: contributing now to the debate CAP reform process: first steps 2. Expert Group on WFD & Agriculture: role to play 3. Keynote on CAP reform & water protection Slide 2 / 13

1. CAP reform process: first steps General consultation till June 3rd Conference on July 19th/20th Communication by DG AGRI in November First legal proposals in July 2011 Slide 3 / 13 3

2. Expert Group on WFD & agriculture: role to play The Expert Group has the competence & the legitimacy to provide for inputs  keynote Input is limited to technical aspects the document does not prejudge positions of the Member-States & the COM  disclaimer This paper is presenting first ideas, which will be developed in a second paper The Water Directors to take note of the document by the Expert Group Slide 4 / 13 4

Questions addressed in the keynote: 3. Keynote on CAP reform & water protection Questions addressed in the keynote: 1. What has to be taken into account for an achievement of WFD goals in the agricultural sector? 2. To what extent does the current CAP enable MS and their farmers to achieve the European objectives on water protection? 3. Post 2013 CAP: what could be the best policy options to achieve WFD objectives? Slide 5 / 26 5

In a nutshell, the current CAP: Structural adjustment Pillar I Direct payments Safety net Adjusted SPS Income Markets Price support/ Quotas reform GAEC/CC Public goods Structural adjustment Axis 1 (structural adjustment) Axis 2 (environment) Pillar II Rural development Axis 3 (territory and diversification)

The CAP budgets: Markets Pillar I Direct payments Pillar II Rural Development Modulation

What has to be taken into account? 3. Keynote on CAP reform & water protection What has to be taken into account? Technically relevant measures enabled Sufficient funding Constraints acceptable for farmers Advice sufficiently provided Measures not conflicting within the CAP A flexible implementing tool Controls which reach a relevant level Administrative burden to be moderate for farmers & administrations. Slide 8 / 26 8

3. Keynote on CAP reform & water protection 2. To what extent does the current CAP enable to achieve WFD objectives? Following issues considered: Pillar I & cross-compliance Article 68 of the Rural Developement (RD) Abolishment of set aside Modulation Pillar II measures Funding River basin approach (WFD) vs regional approach (RD) Slide 9 / 26 9

3. Keynote on CAP reform & water protection 3. What could be the best policy options to achieve WFD objectives? - FLEXIBILITY SHOULD BE THE PRIORITY - Following issues considered: Types of payments Funding Targeting of measures supporting the production of public goods Ceiling of the support Slide 10 / 26 10

3. What could be the best policy options to achieve WFD objectives? 3. Keynote on CAP reform & water protection 3. What could be the best policy options to achieve WFD objectives? Contradictions between CAP payments Cross compliance Safeguard mechanism Administrative burden for farmers & administrations Duration of the contract with the farmer and payment modalities Slide 11 / 26 11

3. What could be the best policy options to achieve WFD objectives? 3. Keynote on CAP reform & water protection 3. What could be the best policy options to achieve WFD objectives? Increase of farm advice Administration more working together Co-operative approach with the farmers Slide 12 / 26 12

3. Keynote on CAP reform & water protection A second paper will be developed by the Expert Group later this year Other issues to be then further discussed: Lump sum payements Cofinancing Ways to enlarge cross-compliance … Slide 13 / 26 13