What kind of financial framework would help EU towards a genuine sustainability?
In my
blog post from July 3I wrote about the reflection paper on
the future of EU finances recently issued by the Commission. Out of
five possible future scenarios the only one worth further discussion
apperars to be the fourth one, so called “radical re-design”.
This is however not really radical but just a bunch of small steps
into more or less right direction. Therefore let us make one step
futher and draft a proposal for financing real transition to
sustainable Europe. This can be called scenario 4.1. “Financing
sustainable Europe. Radical re-desing – really”. This blog is
mostly about sustainable agriculture, therefore this part shall be
drafted with slightly more detail.
General
trend
1.
Payments planned only for financing provision of public goods of
European significance that are not sufficiently paid for by the
markets.
2. Share
of cohesion policy and common agricultural policy reduced.
3. Focus
on future challenges for Europe.
Expenditure
Common
agricultural policy
1. Direct
payments in their present form, so called national envelopes and
two-pillar structure of the policy abolished.
2. Focus
on farmers providing public goods who would not survive on an open
market without the subsidies (including when appropriate small farms
and unfavourable areas).
3.
Measures to decrease dependency of EU agriculture on mineral
ferlisers, pesticides, fossil fuels and imported fodder.
4.
Speeding up transition to circular economy, especially by means of
increase in organic farming; support for transition to organic
production, and if needed (not enough profitablity on the market)
also to continued organic farming.
5. High
nature value farming, especially management and restoration of
semi-natural meadows and pastures secured on the scale needed for
conservation of European biological and landscape diversity, with
well-targeted support measures in place.
6.
Genetic resources of European agriculture (plant varieties and animal
breeds) efficiently conserved and sustably used, with necessary
support made available.
7. Budget
of agri-environment and -climate measures increased so as to make
possible a palette of measures including both broad and more narrowly
targeted measures.
8.
Provision of same kind of public goods paid same support across EU
unless clear differences in costs would occur, in which case the
payment will be based on real costs.
Environment
Based on
the experiences from LIFE programme sufficient funding for the
environmental policy will be established.
Energy,
industry and transport
Only
projects with sufficent potential for significant EU-scale reduction
of fossil fuel use and hence decrease of carbon dioxide emissions,
and drive production towards circular economy will be supported.
Innovation
1.
Support for research helping to wean society from fossil fuels,
mineral fertilisers as well as pesticides, biocides and other
dangerous chemicals.
2.
Support for research in conservation and sustainable use of
biodiveristy.
Econimic,
social and teeritorial cohesion
1.
Support to poorer regions and cross-border cooperation.
2. Focus
on social inclusion, employment, skills, innovation, climate change,
energy and environmental transition.
New
priorities
More
efficient support for sustainable development globally, including in
the source countries of migration.
Revenue
1.
Simplification of current system, including abolishing all rebates.
2.
Establishing EU-wide environmental taxes on carbon dioxide, mineral
nitrogen, taxes on most commonly used pesticides.
3.
Introducing tax on international financial transaction if needed to
finance EU priority expenditure.
An
after-thought
Actually
the proposed changes are not radical at all, they just constitute
some common-sense ideas about stopping waste of money and starting
financing activities necessary to secure our common future.
Post author: Aleksei Lotman
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