Barker Gotelee

Oh Darling - What are you doing?

What does Alistair Darling think he is doing writing to his fellow EU finance ministers stating he wants an end to all CAP direct payments to farmers?  To other member states this is not a realistic proposition. At best it is seriously premature, but what he is achieving is to isolate the UK. And how does isolating yourself play out? If you don’t get your way you appear defeated.  Darling can think what he likes but he should learn diplomacy if he wishes to take other member states with him. The CAP is the EU’s only common policy funded exclusively through Brussels – member states cannot subsidise their own farmers. The EU Treaty states its objectives are to: (a)increase agricultural productivity by promoting technical progress and the rational development of agricultural production and the optimum utilisation of production factors; (b) ensure a fair standard of living for the agricultural community; (c) stabilise markets; (d) assure the availability of supplies; (e) ensure that supplies reach consumers at reasonable prices. These last two are now back on the national political agenda but have always been fundamental to the CAP. Over these objectives are laid further policy objectives including: animal welfare; plant, animal and food health and safety; biodiversity and the protection of wildlife, soil, air, water and the hard and soft landscape. And Darling wants to stop all direct payments relating to these objectives? Agriculture is important to the EU. The 2006 accounts for the 25 EU Member States show a €175 billion trade deficit with the rest of the world – of which the UK accounted for 40%. Agriculture contributed €309 billion to the EU’s €11,312 billion GDP and accounted for 6.1% of EU exports, which were €4.5 billion more than its food and agricultural imports. The CAP not only recognises the importance of agriculture to the rural economy but also looks to strengthen that economy – 25% of the CAP budget is directly aimed at non-farming activities under the EU rural development and environment programmes. Excluding interest charges, the total central, regional and local government expenditure of the 27 EU member states in 2007 totalled €6,423.2 billion or 52.6% of the EU’s GNI. By comparison the EU’s own budget of €126.5 billion represented 0.9% of EU GNI and of this agricultural expenditure was about a third at €42.7 billion. Agriculture therefore costs 0.6% of total EU public spending (or about a third of the cost of the UK’s health services) – a very small price for the EU’s only common policy – a policy designed to ensure sustainable, healthy food for all at affordable prices and a sustainable environment and rural economy. And being the EU’s only ‘common policy’ it is the ‘glue’ that holds the EU together by forcing its member states to sit down together and find workable solutions – even if they are sometimes compromises. Mark Horvath © Barker Gotelee