A coalition of organisations is describing the Luxemburg presidency's proposal, which recommends cutting rural funds by one-fifth, as outrageous. The groups (Friends of the Earth Europe, BirdLife International, International Federation of Organic Agriculture Movements, Eurogroup for Animal Welfare, European Environmental Bureau) are calling on EU decision makers not only to safeguard, but also to increase rural development funds when they meet in June. The coalition wants the presidency's proposal, which would effectively reverse the 2003 reform of EU's common agricultural policy, to be rejected by the Council.

Friends of the Earth's Senior Campaigner on food and farming, Vicki Hird, said:

`Just when we thought things were looking up for Britain's wildlife, landscape and farmers, proposals have been made to slash the funds helping farmers to go green and develop local food schemes. The Luxembourg proposal would rob money from the green farming budget to allow payment of direct subsidies to all farms.  

`This is a totally backward move - agricultural policy was, albeit slowly, being reformed and the money was being shifted to allow farmers to be supported for the environmental protection and enhancement work they carry out. It was also beginning to help pay for rural development and local food enterprises.

`The UK Government has claimed that it wants to make UK farming PLC greener and to get local food back onto the public plate. They must reject this proposal totally and support moves to shift an even greater proportion of the CAP budget into the kind of farming and food systems the public want and need.'

In the attempt to find an agreement on the EU budget for 2007-2013, the presidency has proposed to axe up to 22% of the rural development subsidies that help support environmentally friendly practices, like organic farming, and other methods that help preserve wildlife and improve animal welfare. The proposal, which was issued on 19 May, would retain the lion's share of direct subsidies which have benefited the bigger, wealthier farmers at the expense of a small but critical budget for sustaining the livelihoods of smaller farmers and rural areas across Europe.

The 2003 CAP reform deal in Luxembourg shifted some funds from the first pillar to the second pillar. Only two years later, the Luxembourg presidency wants to do the very opposite: severely cut the second pillar, while keeping the first pillar intact.

Giovanna Pisano from BirdLife International said, "This irrational proposal goes against the spirit of EU agricultural policy reform, which established the need for more money for sustainable farming. If it is agreed, it will be a very sad day for rural Europe. We cannot jeopardise measures that are fundamental to sustainable agriculture and rural development."

NOTES TO EDITORS:

The coalition includes: BirdLife International, Eurogroup for Animal Welfare, European Environmental Bureau, Friends of the Earth Europe, International Federation of Organic Agriculture Movements

Friends of the Earth Europe and the coalition's 10 reasons to protect and increase the rural development budget are:
NGO statement "Ten reasons to save rural development from cuts": http://www.foeeurope.org/agriculture/publications/ten_reasons.pdf

• Rural development funds support measures that can help meet Europe's commitments on sustainable development
• They deliver clear public benefits for the countryside
• Can play a significant role in halting biodiversity loss by 2010
• Help with job creation and keep the countryside `alive'
• Help implement the European Action Plan on Organic Food and Farming
• Are an essential part of continued agricultural policy reform
• Reward good stewards of the countryside
• Improve farm animal welfare
• Support a wide range of beneficiaries in rural areas
• Allow a flexible and focused means to address specific needs

The second pillar budget for 2007-13 would be cut from EUR 88.75 billion to 69-77 billion, while the first pillar budget would stay intact at EUR 301 billion. Based on the 2003 CAP reform, EUR 7 billion would be channelled from the first to the second pillar during the same period.