Statement about the decisions taken by the Council of the European Union concerning the reform of the common agricultural policy of 26 June 2003

The Scientific Advisory Board welcomes the Luxembourg Agreement on the reform of the EU agricultural policy, in principle. The agreement takes the new framework conditions (the WTO negotiations, inter alia) as well as the changed social requirements for the agri-food sector into account. The decoupling of direct payments from production enables welfare gains and increasing incomes, but it will also trigger intensified structural changes. The Advisory Board recommends to the Federal Government to refrain from the use of the partial decoupling option and to press for an EU-wide abolition of these options. The decision to tie the direct payments to the compliance with minimum standards, e.g. in the environment and animal welfare (Cross compliance), is questionable in regulatory policy terms and involves risks for the future competitive capacity at a global level. The Advisory Board considers a further development of technical legislation, adaptations in terms of contents. as well as a financial top-up of the second pillar of the EU agricultural policy to be the better solution.