On behalf of the Council, Fernand Etgen speaks before the European Parliament about the Commission's package of measures to help farming sectors in crisis
Fernand Etgen, Minister i of Agriculture, Viticulture and Consumer Protection, Minister for Relations with Parliament
On 16 September 2015, Fernand Etgen, Luxembourg's Minister for Agriculture, and President of the Agriculture Council, spoke on behalf of the European Council to MEPs sitting in plenary in Brussels, in a debate on the current crisis in the farming sector. Farmers are looking for "concrete responses" which "go beyond mere technical measures" and which "will ensure their sector remains viable", he said. During the debate, MEPs asked Phil Hogan i, European Commissioner for Agriculture and Rural Development, for clarifications on the measures taken by the European executive to resolve the current crisis on the agricultural markets.
For the record, the drop in prices following the Russian ban on imports from the EU, the fall in demand on some world markets, particularly in China, and other factors, affected meat and dairy producers, as well as producers of fruit and vegetables, in many EU countries.
In this context, at the informal meeting of the Agriculture Council on 15 September 2015, the European Commission set out the details of its 500 million euro aid programme to the farming sectors in crisis, which it had announced on 7 September 2015. Of the 500 million euro package, 420 million euros will be paid directly to Member States, via the definition of national envelopes with a distribution that takes into account levels of milk production and short-term impacts such as the Russian ban and the drought.
On the whole, the European Agriculture Ministers welcomed the package as "a first response" to help farming sectors in difficulty, explained Fernand Etgen after the informal Agricultural Council held on 15 September.
Farmers are looking for "concrete responses" which "go beyond mere technical measures" and which "will ensure their sector remains viable", said Fernand Etgen
Speaking to MEPs, Fernand Etgen once again confirmed that farming is "a key sector for the European economy" in terms of jobs, social cohesion and sustainable development. He explained that farmers are looking for "concrete responses" which "go beyond mere technical measures" and which "will ensure their sector remains viable".
Referring to the debates on 15 September, Fernand Etgen stressed how important it was that the European Parliament "contributes to this exercise" and welcomed the recent contributions by the European Parliament's Committee on Agriculture and Rural Development relating to the dairy sector. In their resolution on prospects for the EU dairy sector, adopted on 7 July 2015, MEPs emphasised that the EU and its Member States should do more to help farmers obtain a fair return from the food supply chain, to put in place more effective tools for dealing with market disturbances, and to find new outlets for the products banned from the Russian market.
"Various short-term or medium-term initiatives can be suggested to help address this situation [the worsening situation of the agricultural markets - editor's note], inspired by solidarity", continued Fernand Etgen. In his view, these responses must come "from the national level, as well as the European level" and 'must be able to call upon all the resources available under CAP's two pillars".
In terms of Europe, the measures presented by the Commission are organised around three principles: addressing the cash-flow difficulties farmers are facing, stabilising markets and addressing the functioning of the supply chain, explained the Minister. "While it is desirable to leave Member States significant flexibility, given the diversity of situations and to avoid micro-management from Brussels, it is vital for this aid not to cast doubt upon the market approach taken by the new CAP, especially with regard to the dairy sector since the end of quotas", he added.
Fernand Etgen also stressed the need to give "a certain level of flexibility" to national governments, which "already have a difficult task", particularly in this first year of implementing the new regulatory framework. "I am thinking, in particular, of the option to make advance payments, primarily for farmers' short-term cash flow", he said.
He also mentioned the programme to simplify the CAP, which, in his view, "if well carried out, with the proper priorities", could lead to a reduction in costs for farmers.
Thinking beyond short-term measures
For Fernand Etgen, the "critical" financial situation of many farmers "naturally" leads to putting the emphasis on the short-term financial aspect of the measures. In this context, the Minister believes that it is also necessary "to think about taking steps such as measures to win new export markets, to promote products labelled with geographical indications and other added-value products, and to remove non-tariff barriers, particularly those linked to health risks". He also argued in favour of "more systematic use of the possibilities offered by producers' organisations", for instance in accessing funding under the regulation on the European Fund for Strategic Investments (EFSI).
"But beyond short-term measures, even though medium-term forecasts seem more encouraging, it is still the case that we need to give greater thought to more structural elements", stressed the Minister. He referred, in particular, to ways of guaranteeing "more balanced operation of the food supply chain for the benefit of producers", "swifter assessment of the "milk package" put in place in response to the 2009 crisis, which, in the current circumstances, we cannot wait until 2018 for", and also the development of financial instruments in response to increased volatility in prices on the agricultural markets.
In conclusion, Fernand Etgen called on the European Parliament to finalise the Commission's first package of measures "as quickly as possible" with the Council, "in the first instance" on three points: "the budget negotiations underway for the 2016 budget, as soon as the Commission sends us the letter amending the draft budget so that the funding is available, our procedures for examining delegated acts corresponding to certain measures, and finally by moving quickly to negotiations on the aid mechanism for the distribution of fruit, vegetables and milk at school".
Replying to calls by several MEPs on the need to raise the intervention price, Fernand Etgen stressed "the differences in production costs between Member States, or between different regions", which make it "difficult" to lay down an effective price level that "avoids deadweight effects and is compatible with CAP's market approach". He believed there were other tools for responding to the market situation.
In Phil Hogan's view, the Commission's package is "a good response to the challenges faced by various sectors in the Member States"
Phil Hogan welcomed the support given by European Agriculture Ministers to the Commission's package, and expressed the wish that the European Parliament would offer the same support.
After having set out the details of the various aid measures in the package, he emphasised that it is "a good response to the challenges faced by various sectors in the Member States".
He stated that the package's sources of funding are coming from "existing margins", and it will not be necessary to "dip into the crisis reserve".
The commissioner also stressed that it was important to act "swiftly", as well as the need to take into account "current budget pressures as a result of the refugee crisis". "I am confident that resources are available to cover all the measures, to make a successful response possible", said Phil Hogan.
Finally, in response to statements by various MEPs, Phil Hogan endorsed the market approach taken by the CAP.
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