CAP Reform 2028-2034: Funding, Governance & Italian Farmers’ Concerns

by Marcus Liu - Business Editor
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EU Budget 2028-2034: CAP and Cohesion Policy Face Scrutiny

The European Commission has proposed a substantial budget of nearly €2 trillion for the period 2028-2034, aiming for a “stronger Europe.”1 However, the allocation of funds within this Multiannual Financial Framework (MFF) – particularly concerning the Common Agricultural Policy (CAP) and Cohesion Policy – is drawing criticism and sparking debate among EU stakeholders. Concerns center on potential resource limitations, the centralization of policy control and the impact on national and regional autonomy.

Shifting Landscape of Agricultural Funding

The proposed post-2027 CAP will see agricultural spending delivered as a “CAP chapter” within National and Regional Partnership Plans (NRPPs).2 This shift has raised concerns about potential distortions of competition within the Single Market and a loss of the European strategic vision for agriculture. Specifically, stakeholders like Cia-Agricoltori Italiani are advocating for a dedicated regulation for the CAP, separate from the broader NRPP framework, to ensure legal certainty and maintain the competence of Agriculture Ministers.

Concerns Over Centralization and Bureaucracy

A key point of contention is the absorption of EU funds under shared management into a single plan for investments and reforms, modeled after the National Recovery and Resilience Plans (NRRPs).4 Critics argue this represents a “renationalization” of key EU policies and could marginalize the roles of the European Parliament and regional authorities.4 the fragmentation of funding mechanisms through NRPPs is feared to increase bureaucratic burdens for both national authorities, and beneficiaries.

Budgetary Considerations and Priorities

The Commission’s proposal for the 2028-2034 MFF amounts to €1,984,894 million, a significant increase from the €1,210,894 million allocated during the 2021-2027 period.3 However, the structure of the budget has changed, making direct comparisons challenging. Even as initial concerns about linear cuts to the CAP budget exceeding 20% have been addressed, with an estimated increase of around one billion euros for national agriculture compared to the current programming, negotiations remain ongoing.

Key Priorities for Stakeholders

Stakeholders are emphasizing the need for clarity and legal certainty regarding the allocation of funds, particularly ensuring that the 10% share designated for rural targets is effectively directed towards the agricultural sector. They are also advocating for any unallocated funds to be prioritized for farmers. Italy, in particular, is expected to strongly defend its agricultural interests, recognizing the sector’s importance for food security and the vitality of rural areas.

Looking Ahead

The negotiation process for the MFF 2028-2034 is expected to continue until 2028, likely concluding under the Greek presidency. The outcome will significantly shape the future of agricultural and cohesion policies within the EU, impacting farmers, regional development, and the overall strategic direction of the Union. The balance between centralized control and national/regional autonomy will be a critical factor in determining the success of the next MFF.

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