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25 February 2018

Phelim O'Neill on 25 Feb 2018

CAP budget: what is happening when?

Phelim O'Neill takes a closer look at how and when decisions will be made on the CAP budget and, ultimately, farm incomes.

Phelim O'Neill

25 February 2018

European Commission president, Jean Claude Juncker speaking at the "Shaping our Future" conference in Brussels.

The overall size of the Common Agricultural Policy (CAP) budget will be the single biggest factor affecting farmers in Ireland from 2020.The current CAP is worth around €50bn and Commission president Jean-Claude Juncker recently set out three potential scenarios for the next budget:

The overall size of the Common Agricultural Policy (CAP) budget will be the single biggest factor affecting farmers in Ireland from 2020.

The current CAP is worth around €50bn and Commission president Jean-Claude Juncker recently set out three potential scenarios for the next budget:

Maintain current CAP spending levels, which would require 37% of the current budget.

Cut the CAP budget by 30%, which would see average farm incomes drop by more than 10% –maybe more in specific sectors.

Cut the CAP budget by 15%, which would have a noticeable impact on farm incomes in certain sectors.

This week, Günther Oettinger, the EU Budget Commissioner, told the Committee on Agriculture and Rural Development in Brussels that proposed cuts to the next CAP budget are "sensible".

Timeline

The timeline below sets out what is expected to happen in the coming months.

To get the budget and CAP proposals concluded before the end of the current parliament is extremely ambitious.

The basic shape will be thrashed out late this year and early 2019, but the timeline could well slip, so conclusions may not happen until the new Parliament and Commission are in place at the end of next year.

February 2018 – Communication on budget for seven-year EU multiannual financial framework (MFF) published.

Early May 2018 – Draft budget proposals will be presented by Budget Commissioner to fellow commissioners.

May-June 2018 – Agriculture Commissioner Hogan to bring forward his proposals to Commission colleagues and share with Council and Parliament. Budget and CAP parallel discussions.

June-July 2018 – Council and Parliament to start discussions on Commission CAP proposals.

Autumn/winter 2018-2019 – Negotiation and finalisation of Budget and CAP proposals (alongside all other spending programmes) for 2021-2027.

30 March, 2019 UK to leave EU.

May 2019 EU Parliament elections.

31 October, 2019 Current Commission finishes five-year term.

Conflicting Brexit signals from UK government

Who should get direct payments? CAP 2020 talks get practical

Sucklers and farm safety dominate Athlone CAP 2020 meeting

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