387 billion euros to be distributed: EU countries agree on agricultural reform

Around midnight, the German Presidency's compromise proposal is on the negotiating table. The breakthrough came early in the morning: the EU member states agree on a reform of agricultural policy. A fifth of the money is to flow into environmental programs.

The EU states have agreed on a reform of the multi-billion dollar agricultural policy. After almost two days of negotiations, the agriculture ministers of the member states agreed in Luxembourg on a compromise proposal by the German EU Council Presidency. Since the European Parliament also wants to determine its final line this week, both sides can then start negotiations with one another.

Because Germany will hold the presidency of the EU states until the end of the year, Federal Agriculture Minister Julia Klöckner led the negotiations. After hours of talks in smaller formats, she went to plenary with the other ministers around midnight with a new compromise proposal. After further improvements, the compromise was reached in the morning. The CDU politician spoke of a "milestone" for a "system change". The agreement is well balanced between nature, environmental and animal protection and food security to be guaranteed in Europe.

Can be satisfied: Agriculture Minister Klöckner.

(Photo: picture alliance / dpa)

Agricultural reform is the largest item in the EU budget. Agricultural policy is currently the largest item in the EU budget at 387 billion euros over the next seven years. Germany is entitled to around 42 billion euros. Many farmers are dependent on direct payments from Brussels, but at the same time fear excessive environmental regulations.

The EU states had been negotiating the reform at the meeting in Luxembourg since Monday morning. In 2018, the EU Commission proposed a comprehensive reform of the Common Agricultural Policy (CAP) for the years 2021 to 2027. There is now a transition phase for the next two years, so that new rules would not come into force until 2023.

Extra money if environmental regulations are met

According to the proposal of the EU Commission, the states should, among other things, have more freedom as to how they want to achieve a number of specified goals – such as preserving nature, protecting the climate and ensuring food quality. To this end, they should each create national plans that would have to be approved by the EU Commission.

According to the Council of Member States, according to the compromise that has now been reached, all farmers will in future be bound to higher environmental standards. Smallholders should therefore be subjected to simplified controls, "which would reduce the administrative burden and at the same time secure their contribution to the environmental and climate goals".

Above all, Klöckner underlined an agreement on mandatory eco-rules. According to this, every EU country should link a minimum share of 20 percent of direct payments to the participation of farmers in environmental programs. According to Klöckner, a two-year "learning phase" is planned during which the funds reserved for environmental programs can also be accessed differently so that the member states do not lose EU funds if not enough farmers take part in these environmental programs.

Late on Tuesday evening, the European Parliament had also agreed on key points of the reform. According to this, at least 30 percent of the direct payments should be reserved for eco-regulations. The subject is also highly controversial among MPs. Because of more than 2,000 amendments, they will probably not agree on a common position until the end of the week. Negotiations between the two EU institutions on a final text could then begin.