WRITTEN QUESTION E-1638/99

by Efstratios Korakas (GUE/NGL) to the Commission

(22 September 1999)

Subject: The disastrous impact of the CAP and the need to review it

The reviews of the CAP carried out under the Treaty of Maastricht, and under Agenda 2000 to be implemented by the year 2006, are drastically reducing growth rates in agriculture in order to adapt it to market conditions, as shaped by the WTO (World Trade Organisation) and the EMU.

This reduction in growth rates in agriculture has reduced agricultural employment, wiped out small and medium-scale farming, especially in countries like Greece, where the agricultural population was large. It has also produced economic stagnation and rural depopulation, as well as deterioration of the environment.

Will the Commission be persisting with the same policies which will accelerate this disastrous course of events for rural areas, or does it intend to propose, as called for by farmers and in particular those with small or medium-sized holdings, to halt them, and take appropriate action to change their direction?

Answer given by Mr Fischler on behalf of the Commission

(20 October 1999)

One of the objectives of reform of the common agricultural policy (CAP) under Agenda 2000 is indeed to ensure a better adaptation to market requirements. In addition, the reform aims to achieve several other objectives, such as maintaining a fair standard of living for the farming community, integrating environmental goals and establishing rural development policy as a second pillar of the CAP.

It is true that the number of people employed in agriculture, forestry and fishery declined in Greece by 21 % during the period 1987-1997. However, for the 12 Member States the number decreased by 31 % during this period. It is also true that the most important reduction in farm numbers in Greece was observed for small farms operating an agricultural area of less than 10 hectares. On the other hand, the remaining small and medium-scale farms were able to improve their economic base by increasing their production capacities. Possible problems of depopulation and environmental issues are specifically addressed by rural development measures, in particular in objective 1 regions. Despite any diversity at the local level, population statistics indicate an increase of population during the last 10 years for the majority of Greek rural areas (nomenclature of territorial statistical units (NUTS) 3 level).

Following the decisions of the Council and the Parliament, the Commission will continue the implementation of Agenda 2000. Furthermore, the Commission's position on the future development of the CAP will be determined by a wide range of aims, such as a reinforcement of rural development, the overall requirement to integrate consumer concerns such as food safety, environment or animal welfare, the defence of the European model of agriculture on the international stage, the challenges of enlargement, and the need to further simplify Community legislation.

Within Agenda 2000, several reports or mid-term reviews are foreseen to analyse the impact of the reform. The regulations foresee a mid-term review for arable crops (2002), a report on direct payments for oilseeds (by 2002), a report on the budget situation (by 2002), and a review of the milk quota regime (2003). Furthermore, following the decisions on olive oil in June 1998, a reform should be prepared to come into force for the marketing year 2001/2002. Reform proposals are foreseen for the rice sector and for the flax and hemp sector. In the sugar sector, the quota regime will expire in 2000/2001 and proposals will have to be made for a reform of the common market organisation (CMO). In addition, a report on the operation of the CMO for fruit and vegetables is due to be submitted by the end of the year 2000.