WRITTEN QUESTION P-3226/97 by Sirkka-Liisa Anttila (ELDR) to the Commission (9 October 1997)

Subject: The effect of intensified production in agriculture in Poland and Hungary, and its significance for the balance of the EU's agricultural production

'Agenda 2000' is principally concerned with the EU's eastward enlargement and with improving the competitiveness of its agricultural production on the world foodstuffs market. Eastward enlargement will bring into the EU Hungary and Poland, which have a very significant agricultural potential. Poland's arable land area, if cultivated as intensively as in the Netherlands, would alone suffice to feed the entire population of the EU. The Commission's explanations lack a more detailed analysis of how the new Member States' agricultural products might behave on the world market after accession. Since the Commission has not proposed any kind of estimate of this, the central element needed to evaluate the effects of enlargement is missing.

After the accession of Hungary and Poland, both knowhow and capital will be exported from Western Europe to the new Member States, and from that point on these countries' production potential will be exploited much more efficiently, resulting in even greater quantities of foodstuffs on the EU's common market. Since the EU is expected, on the basis of the production of the existing Member States, to be over-producing cereals, dairy produce and beef, by the beginning of the 21st century, this too makes it vitally important to clarify what effect the new Member States will have on this over-production situation.

Are there plans to place quotas on the new Member States' production, as was done when Sweden, Finland and Austria joined (milk quotas, sugar and starch quotas, and a maximum total area of arable land eligible for EU subsidies)?

If the application of such quotas is planned, to what level of production, at what point in time are they to be tied? How will it be possible to prevent negative effects resulting from the accession of major agricultural producers Hungary and Poland on the balance of the EU's agricultural production? When will the Commission publish clarifications of the effects of increased efficiency on production in Hungary and Poland?

Answer given by Mr Fischler on behalf of the Commission (3 November 1997)

In the Agenda 2000 ((COM(97) 2000 final. )) the Commission has presented proposals to deal with the future challenges of the Community in a comprehensive manner, including the future financial framework of the Union, the future enlargement and reforms of the structural policies and the common agricultural policy.

New Member States will need to apply the agricultural 'acquis' in its entirety as it exists from the date of accession, including production quotas and other supply management measures where applied, with the exception of transitional measures to the extent they are considered necessary. Precise arrangements will depend on the outcome of the accession negotiations and the reform of the common agricultural policy(CAP).

The proposed reforms of the CAP include a reduction in market price support, accompanied by direct payments and an integrated rural policy. The objective of these reforms is to improve the competitiveness of the European agricultural and agro-food industry on the internal and world markets and to ensure a balanced development between production and internal and external demand.

The Commission has analysed the situation in the applicant countries on a continuous basis. Its findings were published in a series of ten country reports published in mid 1995 and in the agricultural strategy paper ((CSE (95) 607. )) submitted to the European Council in Madrid in December 1995. In April 1997 the Commission published a study on the long term prospects in the grain, milk and meat markets, which also included an updated assessment of the prospects in the applicant countries. The Commission is in the process of updating the ten country reports and continues to monitor developments.