Minister Says EU Budget Proposal to Cut Farm Funding

Minister Says EU Budget Proposal to Cut Farm Funding

The European Commission plans to cut funding for agriculture by 30 to 40 percent after 2028 despite an overall increase of around €800 billion in the EU budget for the 2028–2034 period, according to Slovak Agriculture and Rural Development Minister Richard Takáč (Smer-SD).

According to Takáč, the proposed capping of subsidies for large farms will have a significantly negative impact on the Slovak agricultural sector.

"The agricultural sector is set to receive 30 percent less under the new Common Agricultural Policy (CAP) proposal. When accounting for inflation, this reduction could reach up to 40 percent. Although the EC plans to spend more on defence in the expanded 2028–2034 budget, agriculture will see substantial cuts," said Takáč.

He noted that until now, agriculture had a dedicated budget line in the EU framework. "The new proposal merges all funds into one package. This is a very poor approach, as it will result in the loss of a significant amount of funding. The existing two-pillar structure of the CAP will be abolished and replaced by a single agricultural fund," he explained.

Takáč emphasised that Slovakia is among the EU-member states most threatened by the proposed changes, particularly due to the capping of direct payments at €100,000 per final recipient. "Given the size structure of Slovak farms, this proposal effectively spells the end of agriculture in Slovakia," he warned. The proposed budget also removes so-called redistributive payments.

According to Takáč, support for food producers will be moved to different budget chapters when compared to the current framework.

"We'll propose several amendments to the EC. We disagree with the current draft and will advocate for maintaining separate CAP funding for the agricultural sector. We insist on keeping the first and second pillars. We can discuss and potentially accept a €100,000 cap per enterprise, but only if salary costs are reimbursed from EU funds," he added.

According to Katarina Roth Nevedalova (MEP for Smer-SD), all MEPs are dissatisfied with the proposed budget. "The EC has been signalling major changes in the upcoming seven-year budget for several months. However, we didn't expect the proposal to be this catastrophic," she said.

Until now, the CAP, regional development funds and national partnership plans accounted for about 65 percent of the EU budget. "In the new proposal unveiled by the EC this summer, these components will make up only around 45 percent. The saved funds will be directed into a new pillar focused on competitiveness. However, this pillar includes no actual competitiveness measures, only the Green Deal and defence. These are the biggest planned expenditures in the upcoming seven-year period," stated Roth Nevedalova.

Source: TASR

Ben Pascoe, Photo: TASR

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