EESC Raises Early Warning: Impact of EU Expansion on Agriculture

The impending enlargement of the European Union (EU) promises to be a significant milestone, presenting both opportunities and challenges. The EU faces numerous global issues, such as evolving geopolitical dynamics, climate change, and transitions in energy and environmental policies. The European Economic and Social Committee (EESC) emphasizes the need for thorough preparation and adherence to EU values as new member states join.

During its July plenary session, the EESC issued an opinion stressing the strategic complexities of the upcoming EU expansion. The focus is on readiness, sustainability, and balanced support for agriculture and rural areas in both current and candidate member states.

While geopolitical factors are crucial, the enlargement also aims to enhance the EU's strategic autonomy and reduce the agricultural sector's environmental impact. However, previous expansions have yielded mixed results for agriculture. Though new member states have bolstered the EU's agricultural diversity and value, smaller farms and rural areas have not benefited equally. The EESC advocates for a balanced strategy to support family farms and small to medium-sized enterprises (SMEs) in the agri-food sector.

Stoyan Tchoukanov, rapporteur for the opinion, stated, "We must manage both sides of the process carefully, as agriculture has a unique structure. The agri-food sector operates as a system, and disturbing one part affects the whole. Despite the overall success of the last enlargement, it was less beneficial for rural areas and small-scale farmers."

To counter misinformation and ensure a smooth enlargement, the EESC calls for the collection of comprehensive data and the monitoring of agricultural production and reforms. This approach is vital to address concerns and ensure effective legislative and reform implementation.

The Common Agricultural Policy (CAP) is evolving to emphasize eco-systemic services over traditional support. Candidate countries must adapt to these new CAP objectives and values. Prior agreement on necessary reforms and financial frameworks is essential before the enlargement.

The enlargement will increase the EU’s agricultural area by one-third, with Ukraine’s accession alone adding one-quarter. This enhances strategic autonomy and trade opportunities for the 60 million people in candidate countries, particularly in agriculture and technology exchange. However, this must be balanced with support for EU farmers, budgetary constraints, and the impacts of the Ukraine conflict. The CAP budget must increase, with new financial instruments tailored to specific needs.

Acknowledging varying preparedness levels among candidate countries, the EESC suggests a gradual integration to avoid negative competition effects. Dedicated budgets should support the most affected agri-food subsectors, particularly SMEs, ensuring fair and targeted assistance.

Future CAP reforms should focus on sustainability, gradually replacing hectare-based subsidies with incentives based on environmental and societal benefits. This includes degressive payments, mandatory capping, and increased support for the first hectares, promoting equitable and sustainable practices.

While the enlargement will likely benefit EU exporters of industrial goods and services, it may challenge the agri-food sector due to lower production costs in new member states. An adequate budget is necessary to compensate EU farmers for potential negative impacts, learning from past experiences with Russian counter-sanctions.

The EESC also advocates for market regulation to address the financialization of the food sector, which threatens sustainability and the European farming model. Agricultural and rural development policies should promote a proximity economy, extending these principles to new candidate countries.

Rushed accession poses risks for unprepared farmers and rural areas in candidate countries. Monitoring and implementing land reforms before accession is crucial to prevent negative outcomes. Clear adherence to rules is essential as EU markets open to agricultural products from these countries, safeguarding current member states.

With rising geopolitical tensions, ensuring a secure food supply in the EU is vital. All EU regions must sustain agricultural production to secure the future of the EU’s agricultural sector amid ongoing global challenges.

Article source: https://www.eesc.europa.eu/en/news-media/news/eesc-issues-early-alert-implications-eu-enlargement-agriculture

Photo attribution: Marc Ryckaert (MJJR), Oedelem Weg naar Sint-Kruis R01, CC BY-SA 3.0