WRITTEN QUESTION E-2615/99

by Chris Davies (ELDR) to the Commission

(12 January 2000)

Subject: Agricultural subsidies and the environment

What plans does the Commission have to curb the payment of subsidies which support agricultural activities shown to cause ecological damage and to encourage ecologically positive farming methods?

Answer given by Mr Fischler on behalf of the Commission

(28 January 2000)

There are three elements at the core of the Community strategy to encourage ecologically positive farming methods.

Council Regulation (EC) No 1259/199 of 17 May 1999 establishing common rules for direct support schemes under the common agricultural policy(1) applies to payments granted to farmers under support schemes in the framework of common market organisations. Under Article 3 Member States are obliged to take the environmental measures they consider to be appropriate (which may include support in return for agri-environmental commitments, general mandatory environmental requirements or specific environmental requirements constituting a condition for direct payments). Member States shall decide on the penalties that are appropriate to the consequences of not observing these environmental requirements (e.g. reduction or cancellation of the payments granted under the market organisations). Under Article 5 money not spent due to the non respect of these environmental conditions as well as money saved by Member States which make use of the option to modulate direct payments (Article 4) will be available for reinforcing a Member State's budgetary envelope for ecologically positive support schemes (agri-environmental measures, compensatory allowances in less favoured areas and in areas with environmental restrictions, afforestation).

Council Regulation (EC) No 1257/1999 on support for rural development for the European Agricultural Guidance and Guarantee fund(2) (EAGGF) foresees targeted agri-environmental measures which are the only mandatory measures to be included in any rural development programme. By this they get a prominent role within the new rural development policy and have a particular importance in the Community's agri-environmental strategy.

Common market organisations also foresee environmental provisions. Some of them have been strengthened. In the new beef regime for instance, national envelopes now form a part of direct payments and may be linked to environmental conditions, and the extensification premium has become more effective by increasing the premia level and by introducing stricter environmental conditions.

(1) OJ L 160, 26.6.1999.

(2) OJ L 160, 26.6.1999.