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Cini: European Union Politics 2e

Chapter 21

British Rebate Vs CAP Reform

The EU's common agricultural policy (CAP) has been one of the most contentious issues in EU policy spheres. Although t he CAP is under fire at the international trade negotiations, where developing countries accuse the EU ( with the US) of protecting their agricultural markets with high subsidies , individual contributions from member states to the EU budget and its overall level of spending have been at the centre of this CAP debate. A griculture's share of the budget , although still much too high, has declined from 70% in 1985 to 46% now, and is due to fall to 30% by 2013 (Haskins 2005) . Recently, France and Britain have appeard irreconcilably divided over the future of the EU budget. The clash between Britain and France began when Jacques Chirac rejected a British proposal to place the rebate on the table if farm subsidies, which benefit the French disproportionately, were reformed. Tony Blair has said he cannot sign up to a deal on the new European budget unless there is a full review of EU farm subsidies in 2008 (BBC News, 9 Dec. 2005). Under the rebate, which was secured by Margaret Thatcher in 1984, Britain gets back a chunk of its annual contribution to EU coffers to compensate for the relatively little that it reaps from farm subsidies under the CAP. The UK has offered to give up some of its rebate , but several member states still show their hostile reactions. The French foreign minister, Philippe Douste-Blazy, said the plan "does not seem likely to bring the agreement we all want" (International Herald Tribune, 6 Dec. 2005). In addition, Italian Foreign Minister Gianfranco Fini said his government had a "negative opinion on the entire proposal" and Spain's Finance Minister, Pedro Solbes, said the British proposal was a "wonderful document for the United Kingdom" (BBC News, 6 Dec. 2005). Although European Commission President Jose Manual Barroso urged, "Everybody has to make concessions . Everybody has to make a move" (EU Business, 9 Dec. 2005), it is certain that tough negotiations are ahead, mainly due to different national interests.

Web Links

CAP Reform
europa.eu.int/comm/agriculture/capreform/index_en.htm

Friends of the Earth Europe – Agriculture Campaign
www.foeeurope.org/agriculture/index.htm

Institute for International Integration Studies, The University of Dublin, Trinity College: Policy Coherence in Trade & Agriculture
www.tcd.ie/iiis/policycoherence/index.php/iiis/home

World Trade Organisation (WTO) Agriculture Gateway
www.wto.org/english/tratop_e/agric_e/agric_e.htm

Further Learning Resources

Daugbjerg , Carsten and Swinbank , Alan (2004), 'The CAP and EU Enlargement: Prospects for an Alternative Strategy to Avoid the Lock-in of CAP Support', Journal of Common Market Studies, Vol.42, No.1, pp.99-119.

Special Issue on CAP Reforms by IEA Economic Affairs (June 2000), Vol.20, No.2.

Grant, Wyn (2003), 'The Prospects for CAP Reforms', Political Quarterly, Vol.74, No.1, pp.19-26.

Daugbjerg, C arsten (2003) . 'Policy feedback and paradigm shift in EU agricultural policy: the effects of the MacSharry Reform on future reform' Journal of European Public Policy Vol.10, N o. 3, pp. 421-37 .