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Payments for rural development to suffer cuts of some 770 million euros
Payments for rural development will suffer cuts by about 770 million euros, according to the new proposal for the Common Agricultural Policy (CAP), up to 7.2 to 7.3 billion euros, under the financial framework 2014 - 2020, announced, on Tuesday, Agriculture Minister Daniel Constantin in a meeting with representatives of agricultural producers.
The Minister stressed that the current negotiations show an overall reduction in both pillars (Pillar I direct payments and Pillar II rural development) of between 1.2 to 1.5 billion euros, that fully disadvantages Romania.
'If, initially, we had for Romania 12.8 billion euros for Pillar I (direct payments), the last proposal shows that we are somewhere around 12 billion euros. It is said that we have an increase per surface from 119 euros / ha to 183 euros in 2016. It was a matter discussed and provided by the Treaty of Accession. I am discontent that we keep just what we have had ever since 2005. The claimed increase of 50 percent for direct payments, from 119 to 180 euros, was a provision in the Treaty of Accession', added the head of MADR.
As concerns the payments for convergence zone, the Minister of Agriculture pointed out that Romania will lose 160 million euros from the overall package because of a two-year increase of the implementation period.
'The latest proposal by Van Rompuy is to go with this convergence until 2020. The differences are not large, although significant for farmers, because the payments on this surface are increased by two years, but as an overall package they would represent a decrease of 160 million euros in the aid Romania could receive. The convergence increase is from 180 euro / hectare to 196 euro / ha in 2020 ', Constantin also explained.