EU rejects plan to redirect agricultural budget to defense

UkrAgroConsult

The European Commission has abandoned plans to reform the European Union’s Common Agricultural Policy (CAP) that would have redirected funds from the agricultural sector to defense and other priorities. According to Politico, the proposal faced strong opposition from the EU’s farming community, forcing the Commission to backtrack.

The initial plan aimed to merge the CAP and cohesion funds into a flexible financial mechanism, similar to the Recovery and Resilience Fund established during the COVID-19 pandemic. This would have given member states greater control over EU fund spending, enabling them to address priority areas such as defense, competitiveness, and climate initiatives. However, the proposal met resistance from the agricultural sector, which views the CAP as critical to Europe’s food security.

The EU budget is under strain due to the need to repay €30 billion annually for loans taken during the pandemic, alongside emerging challenges, particularly in defense. Despite these pressures, the European Commission decided against restructuring the CAP. Jan Olbrycht, special advisor to EU Budget Commissioner Piotr Serafin, stated that the CAP “will remain a separate pillar of the budget” for the 2028–2034 period.

The Common Agricultural Policy is allocated €387 billion, nearly a third of the EU’s seven-year budget. Established in 1962, this program supports farmers and rural communities through direct subsidies and development initiatives, including green projects and infrastructure. Farmers and EU agriculture ministers emphasize that the CAP is a key tool for ensuring agricultural stability and preventing social unrest in rural areas.

While the decision to preserve the CAP’s structure is a victory for farming lobbies, Politico reports that funding cuts remain possible. The CAP budget could be reduced by 15–25% in the next cycle compared to current levels, potentially sparking new protests from farmers. This outcome highlights the complexity of reallocating EU funds, as traditional programs like the CAP remain heavily protected by agricultural groups and conservative politicians.

Tags: subsidies, EU