A PLAN that proposes cutting the overall EU budget for 2014-2020 by 5 per cent, or more than €50 billion, has been drawn up by the presidency of the European Union, currently held by Cyprus.
Minister for Agriculture Simon Coveney said he was concerned about the proposed 2 per cent cut in the Common Agricultural Policy (Cap) allocation “although I do acknowledge that this is less than the cuts proposed for other budget headings following intense pressure from Ireland and some other member states”.
The proposals will form the basis of negotiations at a summit of EU leaders on November 22nd.
Cyprus will pass the rotating six-month presidency to Ireland at the end of the year and the Irish Government is hoping the overall budget will be agreed before then.
The compromise proposal has been criticised by richer western states keen to minimise their contributions and by newer member states who rely on EU funds for their economic development.
The plan recommended the deepest cuts to infrastructure spending in the poorest member states, with a less drastic reduction in farm subsidies. The Cap budget would be cut by 2 per cent under the plan.
The Cypriot presidency said the cuts outlined so far were just a start and deeper reductions would be needed to reach a final deal.
The plan would cut the EU’s seven-year regional development budget by about €12.5 billion while agricultural subsidies would fall by about €5 billion.
Sweden, which has long called for a lower share of EU spending for farmers, criticised the balance of cuts proposed by Cyprus.
Its minister for EU affairs, Birgitta Ohlsson, said it was unacceptable that the Cap was protected from cuts. “Nearly 40 per cent of the EU budget is still earmarked for the Cap – a sector employing five per cent of the labour force and contributing only 1.5 per cent to EU GDP, Ms Ohlsson said.
–(Additional reporting: Reuters)
