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The integration of environmental objectives and measures into the Common Agricultural Policy (CAP) has been a long and slow process, with successive reforms proceeding in an incremental manner. Following the CAP ‘Health Check’ in 2008, it is widely anticipated that the 2013 reform will be significant. Part of the impetus for a wide-ranging reform in 2013 comes from competing demands on the EU Budget, including the need for funding to address the climate change challenge and to meet the sustainable growth and competitiveness objectives set out in the EU2020 Strategy.

For the last couple of years there has been a lively and robust debate amongst the broader stakeholder community on agriculture’s role, and the justification for a CAP. IEEP has played a leading role in stimulating this debate through our dedicated website on CAP reform, CAP2020. A more technical debate is now underway on the future policy’s objectives, architecture, measures as well as the contentious issue of the size of the CAP budget. The Commission will publish a Communication on a Future CAP in November 2010, followed by formal legislative proposals in 2011 that will then be debated in the Council and the European Parliament, in parallel to the debate on the 2014-20 Financial Perspective.

Amidst the rhetoric, there continues to be a need for robust concepts, a sound evidence base and clear policy thinking. The long-term legitimacy of the CAP will ultimately come from its relevance to society’s needs, its effectiveness and efficiency during a period of economic austerity, and its defensibility in the eyes of Europe’s citizens.

IEEP has produced a number of recent papers to contribute to the debate of CAP Reform and the EU Budget Review:

A series of papers for LUPG that examine some of the issues surrounding a reorientation of the CAP towards one based on a rationale more focused on the provision of environmental goods and services.

Paper 1: Achieving a transition away from CAP direct payments
This paper examines a range of transitional arrangements that could facilitate a shift in the basis of CAP payments away from the current system of support, towards one based more on the provision of environmental goods and services. The paper considers the advantages and disadvantages, opportunities and risks associated with a range of transitional options.

Paper 2: Scoping the Development of the Environmentally Sustainable Production Agenda This paper explores some of the issues surrounding the need for European agriculture and forestry to play a positive role in managing and enhancing the natural environment as well as delivering sufficient food, fibre and raw materials for human consumption in the future.

Paper 3: The Case for EU Intervention in the Environment This paper discusses the need for state intervention to meet environmental objectives and targets, and the rationale for intervening at the European level.

The Single Payment Scheme After 2013

Understanding and Influencing the EU Budget Review This report sets out the budget review debate so far, as well as the key issues of reference to the environment which are likely to be on the agenda during future stages of debate and subsequent budget negotiations. The report focuses on EU spending which has implications for the Environment Agency. It concentrates on spending on climate change (mainly within the Structural and Cohesion Funds but also through funding for Research and Development), ‘sustainable land use management’ (within the Common Agricultural Policy), and the implementation of EU environmental legislation in general (also mainly through the Structural and Cohesion Funds but also through LIFE+). The revenue side of the EU Budget, which is also part of the review agenda, is not considered here. The paper aims to assist the Environment Agency in developing a detailed understanding of the EU budget review process.

Funding for Farmland Biodiversity in the EU. Gaining Evidence for the EU Budget review This report aims to initiate a transparent debate on the purpose, intensity and spatial distribution of expenditure on the EU’s Common Agricultural Policy (CAP) from the perspective of the protection and enhancement of farmland biodiversity. It does this through a detailed analysis of the CAP budget and the presentation of a number of maps showing the regional variation in the distribution and intensity of both Pillar 1 and Pillar 2 payments.

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