Cap Agreement

In October 2020, the Council, under the German Presidency, defined its negotiating position on CAP reform. With the General Guidance of the Council, EU ministers decided to increase the environmental objectives of the new CAP, while giving Member States room for manoeuvre to define how to achieve the environmental objectives. Negotiations are under way with the European Parliament to reach an agreement on the final adoption of the legislation. Agriculture Commissioner Janusz Wojciechowski also announced the deal on Twitter, thanking the “German Presidency for its efforts to advance the work of the former presidencies and present compromise proposals.” After the Council`s agreement, the European Parliament plans to vote on the whole reform next Friday. This is followed by the “trilogues”, during which the Council, the European Commission and the European Parliament will complete negotiations on the regulations that should be finalised early next year. The procedure for approving the regulation will take place and States will have to finalise their national strategic plans. EU member states announced on Wednesday morning in Luxembourg that they had reached an agreement on reforms to the Common Agricultural Policy (CAP). Today`s agreement marks an important milestone for European agricultural policy. Member States have demonstrated their willingness to improve environmental standards in agriculture while supporting the flexibility needed to ensure farmers` competitiveness. This agreement responds to the search for a greener, fairer and simpler CAP.

Nevertheless, the new Treaty raises serious problems of interpretation, since it introduces exceptions to the ordinary procedure which benefit the Council. As regards the competition rules, Article 42(2) provides that `the Council, on a proposal from the Commission, may authorise the granting of aid: (a) for the protection of undertakings disadvantaged by structural or natural conditions; (b) within the framework of economic development programmes`. In addition, Article 43(3) provides that `the Council, on a proposal from the Commission, shall adopt measures fixing prices, levies, aid and quantitative restrictions`. In the absence of a clear delimitation of the legislative competences of the European Parliament and the Council in the field of agriculture, legal and political problems arose during the negotiations on the new CAP after 2013. The European Parliament has always rejected general implementation reservations in favour of the Council which could qualify, or even invalidate, the codecision powers conferred by the new Treaty, particularly in the context of fundamental reforms of the CAP, which include as key elements the setting of aid levels and prices. However, the Council has any restriction on the powers conferred by Article 43(3) under the new CMO (Regulation (EU) No 1308/2013, OJ L 347, 23.12.2013, p. 1. Oj L 347, 20.12.2013; Regulation (EU) No 1370/2013, OJ L 347, 20.12.2013, p. 1. Article 26 of Regulation (EU) No 1306/2013, OJ L 346, 20.12.2013). (2) OJ L 347, 20.12.2013]. Parliament was therefore forced to approve the exception in order to prevent the adoption of the 2013 reform from being blocked (resolution P7_TA (2013)0492 of 20 November 2013; OJ C 436, 24.11.2016, p.

274]. In addition, a final declaration by the Parliament, the Council and the Commission recognises that the agreement reached does not affect subsequent REFORMS of the CAP and does not exclude possible legal action. An interest rate is a derivative in which the buyer receives, at the end of each period, payments whose interest rate exceeds the agreed exercise price. An example of a cap would be an agreement to receive, for each month, a payment above the LIBOR rate above 2.5%. .