1. The EU-added value of the CAP
Public hearing on
“European Added Value”
European Parliament,
CONT committee
21 January 2019
Rudolf Mögele,
European Commission

2. Why a CAP today?
Article 38
1. The Union shall define and implement a common agriculture and fisheries policy.
The internal market shall extend to agriculture, fisheries and trade in agricultural products. …
2. Save as otherwise provided in Articles 39 to 44, the rules laid down for the establishment and functioning of the internal market shall apply to agricultural products.
3. ….
4. The operation and development of the internal market for agricultural products must be accompanied by the establishment of a common agricultural policy.

3. Challenges of CAP have cross-border and global nature which require a common action at EU level
- single market for goods and services - economic opportunities to farmers as well as important pressures which require a common safety net, including a system of income support that avoids potential distortions of competition, and underpins food security as well as food safety
- increased exposure to world markets, resulting from previous CAP reforms, WTO rules and trade agreements can only be addressed at EU level

4. Challenges of CAP have cross-border and global nature which require a common action at EU level
Sustainability challenges like
climate change,
water use,
air quality and
biodiversity,
are cross-border and also require EU action to meet EU-wide objectives.

5. Financial resources
One CAP budget instead of 27 national agricultural budgets
Managed and spent according to common rules
Helps to avoid conflicting subsidisation and the resulting increase in overall agricultural spending
Ensures financial solidarity between Member States to materialise

6. Having a CAP makes sense because we need… Which level of government?
Public Consultation
Assessing the EU Added Value of the CAP
Having a CAP makes sense because we need…
Which level of government? 6 6

7. JRC study Scenario 2030 (non CAP)
Removing the CAP would result in
- a dramatic (18%) drop in farm income on average in the EU, threatening the economic viability and attractiveness of rural areas,
- a sizeable decline in production,
- land abandonment, and
- more pressure on the environment.

8. 2017 World Bank report
According to the 2017 World Bank report “Thinking CAP”, the EU’s agricultural policy results in an overall reduction in rural poverty, and the effect adds up over time.
In developing regions, the EU’s rural development approach is increasingly seen as a model to take inspiration from.

9. CAP benefits Secure supply for 500 million citizens
Maintain agri-sector in all EU territories
Support ecological/economical sustainability
Maintain dynamics of rural areas (80% of EU’s territory)
Maintain natural resources (soils, biodiversity, …)
Minimize trade-distorting impact on world trade
Europe leading exporter in high value food

10. We face a very heterogenous agriculture across the Union in a common market Importance of primary sector in employment:

11. EU wide dimension combined with subsidiarity
Need to tackle different problems by appropriate different means
Take due account of local and regional specificities in Member States
Involve stakeholders more directly
Avoid „one size fits all“ approaches
= aspects pleading in favour of more subsidiarity and proportionality while keeping the C in the CAP

12. CAP post 2020: New CAP Delivery Model
EU level:
CAP objectives and common indicators,
types of interventions and
EU basic rule
Provides CAP financing
Assesses and approves Startegic CAP plans
Monitors and audits performance and compliance
Member States
SWOT and needs analysis
Translate EU objectives in national targets
Chose appropriate interventions
Develop Strategic CAP plans
Report on performance and compliance