The EU rural development plan and the international context Sabine LARUELLE Ministre des Classes Moyennes et de l’Agriculture FSAGx – November 30, 2005

Context Globalization of exchanges on planetary scale Qualitative requirements of the consumers Enlargement of the Union CAP reforms (1999, 2003, 2004, 2005) => European agriculture / new realities & challenges

Context Rural territory = 90 % of the European territory Agriculture & forestry = 77 % of the European territory Agricultural and agro-food sectors = –8.3 % of total employment –4.4 % of BNP of the EU-25 Future of the agricultural sector narrowly linked to the balanced development of rural territory Rural agricultural policy has an important role to play in the territorial, economical and social cohesion of the Union

Rural development : basic principles Multifunctionality of agriculture –Acknowledgement en encouraging of the range of services provided by farmers Multisectorial & integrated approach of rural economy –Diversification of activities –Creation of new income & employment ressources –Protection of rural heritage Flexibility of aid –Based on subsidiarity and favouring decentralisation, consultation on the local level & partnership Simplification of the legislation (1 single FEADER fund) Program 2007(?) – 2013 in continuity of the 2 latter

Timing Göteborg (2001) et Lisbon (2003) : definition of principles “ A performing economy needs to go together with a sustainable use of natural resources…” July 2004: proposition from the Commission of a new regulation to rule the 2 nd pillar of the CAP June 20, 2005: political agreement of the aid for rural development through the FEADER fund July 2005: proposition of strategic orientations November 2005 : adoption of strategic orientations 1st semester 2006: detailed program of the strategic plans to be approved by the Commission (1 plan per Region in Belgium) January 1 st, 2007 – December 31, 2013 : start

Financing One single financing tool and program-tool: the FEADER Agreement on the financing of rural development in the framework of financial perspectives –Setback in June 2005 –Agreement in December 2005 ? Global Budget Union : 1 … à 1.26 % of the BNP –Belgian position : 1.15 % Budget rural development : 90 billion € –Approximate Belgian budget : 450 million € Threats – Opportunity (British presidency) –Reduction aiming to sustain R&D –Increase of modulation

3 axes + LEADER AXE 1: Improvement of competition of agriculture and forestry: –Aid for installation of the juniors –Promotion of human capital through education –Improvement & extension of infrastructures –Innovation, aid and improvement of food-quality –Development new outcomes –Anticipated retirement –… BUDGET : minimum 10 % of the national envelop ; rate of common co- financing limited to 50 %

3 axes + LEADER AXE 2: Environment & rural space –Payment NATURA 2000 –MAE –Indemnities for animal well-being –Measures in favor of sustainable development and forestry –Compensation aid for natural handicaps (mountains) –… BUDGET : minimum 25 % of national envelop ; rate of common co- financing limited to 55 %

3 axes + LEADER AXE 3: Improvement of life quality in rural areas & diversification of rural economy –Development of economic activity and employment rate –Diversification of non agricultural activities –Aid for starting up micro-enterprises –Promotion of tourism –Renovation villages –… BUDGET : minimum 10 % of the national envelop ; rate of common co-financing limited to 50 %

3 axes + LEADER AXE 4: LEADER Approach –Combination of the latter 3 objectives –Implementation of development strategies of local action groups according to the ascendant approach. BUDGET : at least 5 % of the funds for national programs

Common strategic orientations will help to : Identify regions where aid creates the most added value on the UE level Belgian concern: strong population density) Establish a link with the principal priorities of the UE (Göteborg, Lisbon) & translation in the DR policy Insure coherence with other common policies, in particular in the area of cohesion & environment Support implementation of the new CAP which is market- oriented and the necessary subsequent re-structuring in all the Member States.

Sabine LARUELLE Ministre des Classes Moyennes et de l’Agriculture Thank you