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Simplification of Agricultural Aid

  • December 9th, 2006
  • Posted by EUEditor

livestock-resize-200.jpgFurther steps were registered this week (6.12.06) on the simplification of regulation and management of industry assistance, when the European Commission adopted new rules on state aid to the agricultural sector.

Simplification is one plank in the sweeping changes to the Common Agricultural Policy (CAP), aimed at shedding market-based price supports and export subsidies, in favour of direct payments and regional reconstruction.

While aggregate payments are not expected to change ahead of a major budget review, some years away, the structure is targeted also for extensive savings through simpler, new processes.

The decisions this week are in two parts:

  • An exemption regulation allowing member countries of the EU not to notify the central authority of state aid given to small and medium-sized agricultural producers, subject to prior requirements being met for handling such payments.

  • Complementary guidelines.

For simplification, several guidelines on state aid will be revoked, including those on advertising, tests for BSCE (bovine spongiform encephalitis), fallen animals and slaughterhouse waste.

Reference:

For a full report on the CAP changes, see Backgrounder: Update on the CAP, EUAustralia, 29.10.06

The Commission adopts new rules on State aid in agriculture, IP/06/1697; European Commission, Brussels, 6.12.06. http://www.europa.eu/press_room/index_en.htm (8.12.06)

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