The amount allocated to CAP under the Multi Annual Financial Framework in the period 2014 – 2020 was €403 billion. The amount allocated to Ireland in that period was €10.680 billion in current terms.
In May 2018, the EU Commission proposed an allocation of €365 billion for CAP in the period 2021 – 2027. The most recent proposal for the CAP in that period brings funding levels to some €375 billion (current prices), with a further special injection of rural development funds – of some €16.5 billion - from the new Next Generation EU fund, bringing the total allocation to €391 billion for the period 2021-2027. The budgetary proposals have been set out at overall EU-27 level. The breakdown for Member States is not yet clear.
The new MFF proposals will play an important role in supporting the economic recovery of Member States. In addition, they provide the much needed additional funding into the CAP budget that I and my European colleagues have fought very hard to maintain, since the original proposals were published in May 2018.
As regards allocations to eastern Member States, my understanding is that the latest proposals do not differ from the original MFF proposal with regard to how external convergence will work in the next period. The concept of external convergence is not new, and is continuing on from previous proposals. The original Commission proposals of May 2018 propose that all Member States whose Direct Payments are below 90% of the EU average will see the process of external convergence continuing from the 2014 – 2020 period.
For those Member States with direct payments levels per hectare below 90% of the EU average, the process of external convergence will close the gap between their current level and 90% of the EU average by 50%. All Member States are contributing to the financial cost of external convergence of Direct Payments, and this is taken into account in Member States direct payments allocations in the draft regulation (COM (2018) 392) which are calculated on this basis.
The new proposal contains a number of new elements including a new Next Generation EU Recovery Fund. Precise details are awaited on the latest proposals as to how all the elements will interact together and work in practice. My Department is in the process of thoroughly analysing the proposals, so that we can fully understand the precise implications for our agri-food sector.
