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EU financial perspectives 2014-2020

1 July 2011

ECVC for a higher EU budget – yes to a tax on financial transactions and to maintaining the CAP budget. The question is how the CAP budget will be used.

EU financial perspectives 2014-2020: ECVC for a higher EU budget – yes to a tax on financial transactions and to maintaining the CAP budget. Budgets speak louder than words when it comes to setting priorities and objectives. The challenges that the European Union is currently facing deserve more than 1% of its GDP. Given the serious prevailing crisis in several EU countries, the EU should provide its citizens with genuine perspectives for a solidarity-based Europe. The European Coordination Via Campesina (ECVC) welcomes the proposed tax on financial transactions, although it should be significantly higher and should add to Member States’ resources rather than reducing them. The CAP budget: yes, how much, but to what end? The ECVC believes that the most important question is how the CAP budget will be used. Since 1992 and the inclusion of agriculture in the WTO, European agricultural prices have dropped, often to below production costs. They have become far more volatile, and farmers are often highly dependent on direct CAP payments. These direct payments, as the Court of Auditors stated on June 29th, have not been fairly distributed between countries, sectors or farmers. Financing large-scale farms has led to the elimination of many small and medium-sized holdings. If the post-2013 CAP continues the policy not imposing a ceiling per person to direct payments, if it continues to “restructure” farms and finance an agro-industrial model with serious negative externalities paid at the end by tax-payers, then ECVC declares that the CAP budget could be reduced, even if this sounds provocative. It would mean less money is made available to eliminate sustainable family farming! But if the European Union wants to increase the vitality of rural areas and develop a local sustainable family farming, creating jobs and added value, then the EU should provide the means for doing so. ECVC therefore requests the Council and the European Parliament to maintain the CAP budget, but to decide a post-2013 CAP reform more legitimate socially, environmentally and internationally than the current proposal. Contacts : Geneviève Savigny (FR-EN) +33 625551687 Javier Sanchez (ES) +34 609 35 93 80 Isabel Vilalba (PT-ES- EN) + 34 608905444 Andrea Ferrante (IT-EN-FR-ES) + 39 3480189221 Gérard Choplin, Bxl team (FR-EN-DE) +32 473257378 Marzia Rezzin, Bxl team (IT-FR-EN) + 32 473300156

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