EU leaders strike a deal on budget following logjam

The EU summit has sanctioned the €1,074bn multi-annual financial framework (MFF), along with the €750bn Next Generation EU (NGEU), following a logjam caused by disagreement from Poland and Hungary.

Irish Cattle and Sheep Farmers Association (ICSA) president Edmond Phelan has welcomed the deal, insisting that every cent will be needed during a time of profound economic challenge.

“From a farming perspective, it clears the way to move on with delivery of the next CAP. The logjam was beginning to cause a lot of concern about whether CAP funding and additional funds for COVID-19 and Brexit could be delivered.”

CAP funds

The ICSA has welcomed the decision of the summit, coinciding at a time of potential Brexit impasse.

Phelan said: “We will be arguing very strongly that CAP funds must be directed to the greatest extent to low-income cattle, sheep and tillage farmers, who are more than 100% dependent on direct payments for their income.

“It is now time to acknowledge that CAP funds must be balanced in favour of less intensive farmers, given that this is the kernel of the so-called green architecture which underpins CAP funding for the next seven years.”

Contradiction

The ICSA claims it would be a contradiction if the CAP is tweaked to allow significant payments to be diverted to incentivise intensive farming systems.

“Further expansion in dairying should be funded by the marketplace,” Phelan said.

“At the moment, Ireland’s milk price compares poorly with our western EU neighbours and this is not a problem that should be resolved by diverting more CAP funds from low-income cattle and sheep farmers to expanding dairy farmers.”

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