The 2007-2013 EU rural development plan

and the international context

Sabine LARUELLEMinistre des Classes Moyennes et de l’Agriculture

FSAGx – November 30, 2005

ContextContext

• Globalization of exchanges on planetary scale• Qualitative requirements of the consumers• Enlargement of the Union• CAP reforms (1999, 2003, 2004, 2005)

• => European agriculture / new realities & challenges

ContextContext

• Rural territory = 90 % of the European territory

• Agriculture & forestry = 77 % of the European territory

• Agricultural and agro-food sectors = – 8.3 % of total employment– 4.4 % of BNP of the EU-25

• Future of the agricultural sector narrowly linked to the balanced development of rural territory

• Rural agricultural policy has an important role to play in the territorial, economical and social cohesion of the Union

Rural development : Rural development : basic principlesbasic principles

• Multifunctionality of agriculture– Acknowledgement en encouraging of the range of services

provided by farmers

• Multisectorial & integrated approach of rural economy– Diversification of activities– Creation of new income & employment ressources– Protection of rural heritage

• Flexibility of aid– Based on subsidiarity and favouring decentralisation, consultation

on the local level & partnership

• Simplification of the legislation (1 single FEADER fund)• Program 2007(?) – 2013 in continuity of the 2 latter

Timing

• Göteborg (2001) et Lisbon (2003) : definition of principles “ A performing economy needs to go together with a sustainable

use of natural resources…”

• July 2004: proposition from the Commission of a new regulation to rule the 2nd pillar of the CAP

• June 20, 2005: political agreement of the aid for rural development through the FEADER fund

• July 2005: proposition of strategic orientations

• November 2005 : adoption of strategic orientations

• 1st semester 2006: detailed program of the strategic plans to be approved by the Commission (1 plan per Region in Belgium)

• January 1st, 2007 – December 31, 2013 : start

Financing• One single financing tool and program-tool: the FEADER

• Agreement on the financing of rural development in the framework of financial perspectives– Setback in June 2005– Agreement in December 2005 ?

• Global Budget Union : 1 … à 1.26 % of the BNP– Belgian position : 1.15 %

• Budget rural development 2007-2013 : 90 billion €– Approximate Belgian budget : 450 million €

• Threats – Opportunity (British presidency)– Reduction aiming to sustain R&D– Increase of modulation

3 axes + LEADER

• AXE 1: Improvement of competition of agriculture and forestry:– Aid for installation of the juniors– Promotion of human capital through education– Improvement & extension of infrastructures– Innovation, aid and improvement of food-quality– Development new outcomes– Anticipated retirement– …

• BUDGET : minimum 10 % of the national envelop ; rate of common co-financing limited to 50 %

3 axes + LEADER

• AXE 2: Environment & rural space– Payment NATURA 2000– MAE– Indemnities for animal well-being– Measures in favor of sustainable development and forestry– Compensation aid for natural handicaps (mountains)– …

• BUDGET : minimum 25 % of national envelop ; rate of common co-financing limited to 55 %

3 axes + LEADER

• AXE 3: Improvement of life quality in rural areas & diversification of rural economy– Development of economic activity and employment rate– Diversification of non agricultural activities– Aid for starting up micro-enterprises– Promotion of tourism– Renovation villages– …

• BUDGET : minimum 10 % of the national envelop ; rate of common co-financing limited to 50 %

3 axes + LEADER

• AXE 4: LEADER Approach– Combination of the latter 3 objectives

– Implementation of development strategies of local action groups according to the ascendant approach.

• BUDGET : at least 5 % of the funds for national programs

Common strategic orientations will help to :

• Identify regions where aid creates the most added value on the UE level Belgian concern: strong population density)

• Establish a link with the principal priorities of the UE (Göteborg, Lisbon) & translation in the DR policy

• Insure coherence with other common policies, in particular in the area of cohesion & environment

• Support implementation of the new CAP which is market-oriented and the necessary subsequent re-structuring in all the Member States.

Sabine LARUELLEMinistre des Classes Moyennes et de l’Agriculture

Thank you