1 Decision-making process and the CAP in the EU - Experiences of Hungary - Szent István University...

1

Decision-making process and the CAP in the EU

- Experiences of Hungary -

Szent István University 22, June

Dr. Laszlo Benedek FlammHead of EU Coordination Unit

Ministry of Rural Development, Hungary

2

Decision-making process and the CAP in the EU

- Experiences of Hungary -

Basic data on Hungarian agricultureBasic data on Hungarian agriculture Political framework of EU institutionsPolitical framework of EU institutions and the and the

CAPCAP About the CAPAbout the CAP AAddoopting the CAPpting the CAP in Hungary in Hungary Main players, Decision-making process and the Main players, Decision-making process and the

CAPCAP Experiences, practisesExperiences, practises Conclusion/messagesConclusion/messages

3

Basic data on Hungarian agriculture

In GDP (2008): In GDP (2008):

agriculture + food industry => 5,6 %agriculture + food industry => 5,6 %

agri-business agri-business => 12-15 %=> 12-15 %

In employment:In employment:

agriculture + food industry => 7,8 %agriculture + food industry => 7,8 %

4

Basic data on Hungarian agricultureShare of agriculture

3,6

25,8

5,54,2 4,9

3,6

25

6,3

3,74,74

25

75 4,6

0

5

10

15

20

25

30

in GDP in consumption in exports in investment in employment

%

2006 2007 2008

5

Basic data on Hungarian agriculture

In the 90’s: In the 90’s: export = export = 3 bn E3 bn EURUR Import = Import = 1,5 bn E1,5 bn EURUR Balance = Balance = +1,5 bn E+1,5 bn EURUR 50% of the export to EU1550% of the export to EU15

20072007:: export = export = 4,7 bn E4,7 bn EURUR import = import = 3,5 bn EUR3,5 bn EUR balance = +1,2 bn Ebalance = +1,2 bn EURUR

20082008:: export = 5export = 5,7 bn E,7 bn EURUR import = import = 3,8 bn EUR3,8 bn EUR balance= +1,9 bn Ebalance= +1,9 bn EURUR 44% of the export to EU1544% of the export to EU15 81% of the export to EU2781% of the export to EU27

6

Basic data on Hungarian agriculture

Share of agricultural areaShare of agricultural area:: 62% - EU 62% - EU average below 50%average below 50%

2 million registered land owners, 2 million registered land owners, 80% of them live in rural areas80% of them live in rural areas

They cultivate the land of 1,5 million They cultivate the land of 1,5 million ownersowners

Rural area = 87% of the Hungarian territoryRural area = 87% of the Hungarian territory

7

Political framework of EU institutions and the CAP

EU integration process from 1957 until todayEU integration process from 1957 until today:: Treaty of Rome – the Lisbon TreatyTreaty of Rome – the Lisbon Treaty

Common legislation – acquis communautaireCommon legislation – acquis communautaire Common policies - CAPCommon policies - CAP Common institutions – Council, Commission, Common institutions – Council, Commission,

Parliament, EESC, RCParliament, EESC, RC

Common Agricultural Policy – one of the „oldest” policiesCommon Agricultural Policy – one of the „oldest” policies– – Treaty of RomeTreaty of Rome2004: Hungary became a member of the EU 2004: Hungary became a member of the EU – – full adaption of CAP full adaption of CAP – – participating in policy-makingparticipating in policy-making

8

About the CAP

One of the oldest policy of the EU (RomOne of the oldest policy of the EU (Romee Treaty) Treaty) Common Policy, but there are still national Common Policy, but there are still national

competence:competence: policy of land propertypolicy of land property the taxation system of the farmersthe taxation system of the farmers the system of the social insurance of the farmersthe system of the social insurance of the farmers agricultural educationagricultural education Research and Development (and Innovation) Research and Development (and Innovation)

PolicyPolicy Agricultural marketingAgricultural marketing

9

About the CAP Based on the community legislation Community financing National policies within the framework of the CAP

legislative limits (burdens) notification to the Commission national budget – itself

IRL in 2007-2013 CC 2 bln € + NC 5 bln € HU in 2007-2013 CC 3,7 bln € + NC 1,4 bln

€

10

About the CAP

The CAP is to eThe CAP is to ensurensure:: CompetitivenessCompetitiveness Social aspects (employment) Social aspects (employment) market measures market measures Rural aspectsRural aspects rural development rural development Environmental aspectsEnvironmental aspects Sustainable developmentSustainable development Food safety and food securityFood safety and food security

2007-2013 CAP: I. + II pillar2007-2013 CAP: I. + II pillar

Future of the CAP after 2013 – Discussion todayFuture of the CAP after 2013 – Discussion today

11

Adopting the CAP in Hungary 2004-

1. 1. Legal harmonisation - Market regulations for:Legal harmonisation - Market regulations for:

Sugar wine cereals fruit and vegetables Sugar wine cereals fruit and vegetables

Bovine milk products pig poultryBovine milk products pig poultry

- Adapting market measures: interventions, quotas,Adapting market measures: interventions, quotas, informaticsinformatics,, market and price information market and price information-,-, monitoring systemmonitoring system

- Coordination, meetings with agri-organisations – Coordination, meetings with agri-organisations – product boardsproduct boards

12

Adopting the CAP in Hungary 2004-

2. Institution-building, institutional harmonization2. Institution-building, institutional harmonization

Prior to accession: pressure from the EU was very Prior to accession: pressure from the EU was very strongstrong

After accession: tricky situation – greater freedom After accession: tricky situation – greater freedom but audits are taking place frequently with financial but audits are taking place frequently with financial consequencesconsequences

- Single paying agency - rural developmentSingle paying agency - rural development- National veterinary and phytosanitary servicesNational veterinary and phytosanitary services- FFood quality standardsood quality standards- Food industryFood industry

13

Adopting the CAP in Hungary 2004-

2. Institution-building, institutional harmonization2. Institution-building, institutional harmonization

- LLand administration and registry system – county, and administration and registry system – county, local-level land officeslocal-level land offices

- Extension service – farm advisory services Extension service – farm advisory services - AAgri-environmentgri-environment

Investments in infrastructure, informatics:Investments in infrastructure, informatics: establishingestablishing datadata-, -, statisticstatistics-s-,, integrated information sintegrated information systemystem, , purchase of technical equipmentspurchase of technical equipments, , setting up setting up laboratorieslaboratories

14

Adopting the CAP in Hungary 2004-

2. Institution-building2. Institution-building Single paying agency – Single paying agency – a reala real challenge challenge – –

spending EU money in the Member Statespending EU money in the Member State

ARDAARDA: : Agricultural and Rural DevelopmentAgricultural and Rural Development Agency –Agency –from 1998from 1998SAPARD Agency – from 2000SAPARD Agency – from 2000Agricultural and Rural Development Agency – Agricultural and Rural Development Agency – 20032003

Since 2006: unified Agricultural Administrative Since 2006: unified Agricultural Administrative Office (all authorities and services together, Office (all authorities and services together, except land registration)except land registration)

15

Adopting the CAP in Hungary 2004-

3. 3. Human reseourch managementHuman reseourch management 1996-1997: 1996-1997: SelectionSelection of experts for the negotiations of experts for the negotiationsMainly young people with language skills, EU-studies atMainly young people with language skills, EU-studies atHungarian universities, study trips to BrusselsHungarian universities, study trips to Brussels

TrainingTraining for everybody but specially for everybody but specially - for experts in Brussels – agricultural group at - for experts in Brussels – agricultural group at the the

Hungarian Hungarian permanent representation,permanent representation, - for experts in Hungarian authorities supervised by the - for experts in Hungarian authorities supervised by the

Ministry e.g. paying agency, animal healthMinistry e.g. paying agency, animal health and and food food safety authorities, land officessafety authorities, land offices

16

Adopting the CAP in Hungary 2004-

3. Human reseourch management3. Human reseourch managementTraining experts in:Training experts in:

- Working with EU regulations in practise e.g. Working with EU regulations in practise e.g. management of supports - direct paymentsmanagement of supports - direct payments,, handling incoming applications, handling incoming applications, using using market market measures, information and price monitoringmeasures, information and price monitoring,,

- CCoordination with EU-institutions,oordination with EU-institutions,- CCommunication with EU institutionsommunication with EU institutions

17

Adopting the CAP in Hungary 2004- Moving targets High supports Intervention EU=15 To be a beneficiary of the CAP To gain direct payments Attractive opportunities for using the Structural Funds Predictable future for the longer planning time (2004-

2007) and (2007-2013)

18

Adopting the CAP in Hungary In the year 2010 and / or laterIn the year 2010 and / or later

Moving targetsMoving targets Supports seems to be reducedSupports seems to be reduced Intervention is being cut downIntervention is being cut down EU = 27 Member States – Big GroupEU = 27 Member States – Big Group

Support schemes are being converted Support schemes are being converted

co-financingco-financing New challenges in the policyNew challenges in the policy

19

Adopting the CAP in Hungary In the year 2010 and / or laterIn the year 2010 and / or later

Public Goods as the most important factor of the Public Goods as the most important factor of the subsidiessubsidies

Climate change and agriculture Climate change and agriculture agricultural carbon agricultural carbon managementmanagement

Crisis Crisis MS want to reduce their contribution to the MS want to reduce their contribution to the EUEU

Predictable future for the longer planning (2004-Predictable future for the longer planning (2004-2007) and (2007-2013) 2007) and (2007-2013) but reforms, Health Check, but reforms, Health Check, policy may formulate other priorities policy may formulate other priorities social, social, environmental issues, energy policyenvironmental issues, energy policy, sustainable , sustainable developdevelopmentment and other issues and other issues

20

Main players, decision-making process and the CAP

Council Meeting Council Meeting - - MinistersMinisters - -

Special Committee on Special Committee on AgricultureAgriculture

Council Working Council Working - - Groups expert levelGroups expert level--

European European ParliamentParliament

European European CommissionCommission

ComCommission mission Working Working GroupsGroups

21

Main players, decision-making process and the CAP

European Commission - DG AGRI European Council - Meetings of ministers European Parliament (Lisbon Treaty)- Agri-COM.

HU Ministry of Rural Development Department of EU Coordination

Coordination – mandates, participation at Commission Working Groups, Council Working Groups and SCA

PRESIDENCY I. half of 2011

22

Main players, decision-making process and the CAP

Council Meetings the body for decision making Minister is the spokesman Important characteristics

preparation attitude approach no „real” voting ministers’ contribution

(opinion)

23

Main players, decision-making process and the CAP

Council Meetings

Importance of the involving partners, and Importance of the involving partners, and communicationcommunication

bilateral, trilateral, multilateralbilateral, trilateral, multilateral HU – V4 MS (PL, CZ, SK, HU + RO + BG)HU – V4 MS (PL, CZ, SK, HU + RO + BG) other groups - alliance (G22)other groups - alliance (G22) COM, EC, PRESCOM, EC, PRES Lisbon Treaty: EPLisbon Treaty: EP NGO’s – national and EU (COPA, COGECA, NGO’s – national and EU (COPA, COGECA,

CEJA)CEJA)

24

Main players, decision-making process and the CAP

SCA• For decision making• Between Council meeting of minister and Council

Working Groups -„Filtering”, preparing decisions• Decisions – mostly political decisions but

decisions on administrative, professional basis• SCA spokesmen: high-level officials supported by

a staff: team from the Permanent Representation in Brussels and from the national ministry

25

Main players, decision-making process and the CAP

SCASCA Voting system – qualified majority Voting system – qualified majority

decision-makingdecision-making Get compromise for majority – before, Get compromise for majority – before,

during the SCA-meetingsduring the SCA-meetings If no compromise – decision will be made If no compromise – decision will be made

at the Council meeting of Ministersat the Council meeting of Ministers

26

Main players, decision-making process and the CAP

Working Groups - European Council and the European Commission

Expert’s meeting Professional discussions on specific issues (market

measures e.g. quota, intervention, animal health and welfare, plant protection, rural development etc.)

Council Working Group- more professional specific topics to discuss – REPORTING TO SCA

27

Experiences, practises

Influencing decision-makingInfluencing decision-making Political steps, action taken by high-level officials, Political steps, action taken by high-level officials,

state of secretary, ministerstate of secretary, minister Already in the preparation phase – meeting with Already in the preparation phase – meeting with

COM Directorate General for Agriculture and COM Directorate General for Agriculture and Rural DevelopmentRural Development

Before decision-making – SCA-meeting, meeting Before decision-making – SCA-meeting, meeting with representatives of the Councilwith representatives of the Council

The European Parliament can influence the The European Parliament can influence the decision-making toodecision-making too

28

Experiences, practises

Making compromisesMaking compromises Preparatory meetings – SCA, SCA spokesman, Preparatory meetings – SCA, SCA spokesman,

agricultural group at the Permanent agricultural group at the Permanent Representation – flexible, efficientRepresentation – flexible, efficient

Meetings of ministers – not only Council Meetings of ministers – not only Council meetings, bilateral meetings in a member state, meetings, bilateral meetings in a member state, multilateral meetings, eg. Visegrad countriesmultilateral meetings, eg. Visegrad countries

Hungarian experiences in 2005 Sugar reform, Hungarian experiences in 2005 Sugar reform, 2007 Wine reform, 2009 State aid to buy lands2007 Wine reform, 2009 State aid to buy lands

29

Conclusion/messages For making compromises – be flexibleFor making compromises – be flexible To be aware of national minimum – room for To be aware of national minimum – room for

manoeuvres manoeuvres In Brussels administration people are working – In Brussels administration people are working –

contactcontactss to people, personal-, working contacts to people, personal-, working contacts People in Brussels are not enemies, they are People in Brussels are not enemies, they are

partners in achieving common goalspartners in achieving common goals Be well-trained – physically too negotiations after Be well-trained – physically too negotiations after

midnightmidnight Be well-informed, to know people, to know the Be well-informed, to know people, to know the

issue up-datedissue up-dated

30

Thank you for your attention!Thank you for your attention!

Dr. Laszlo FlammDr. Laszlo Flamm

Head of EU UnitHead of EU Unit

Ministry of Agriculture and Rural Development, Ministry of Agriculture and Rural Development, HungaryHungary

Tel: + 36 1 301 40 54Tel: + 36 1 301 40 54

Email: Email: laszlo.flaszlo.flamm@fvm.lamm@fvm.gov.gov.huhu