Europe's Agricultural Revolution

Europe's Agricultural Revolution"Nobody would be overlyconcerned if Poland did not
enter the EU together with the firstgroup of new
Author of "Malignant Self Love - Narcissism Revisited"members."
The June 2005 budget summit in Brussels founderedHungary echoes this argument. Almost two thirds of
on the issue offarm support and subsidies which nowrespondents insurveys conducted by the EU in
consume directly 46.2% of theEstonia, Latvia, Slovenia and
European Union's (EU) funds. Tony Blair refused to letLithuania are undecided about EU membership or
go ofopposed to italtogether. The situation in the Czech
Britain's infamous rebate (amounting to two thirds ofRepublic is not muchimproved. Only Hungary
its netcontributions to the community's coffers)stalwartly supports the EU's eastern tilt.
unless and until thesehandouts (which Britain'sOpinion polls periodically conducted by GfK Hungaria, a
dilapidated agriculture does not enjoy)are slashed.marketresearch group owned by GfK Germany, paint
This followed close on the hills of the rejection ofthea more mixed picture. Onthe one hand, even in
proposed EU constitution in French and the Dutchcountries with a devout following of EUaccession,
referenda insuch as Romania, support for integration has
May-June 2005.declinedthis year. Support in Hungary and Poland, on
One of the undeniable benefits of the enlargementthe other hand, pickedup.
of the EuropeanYet, the EU can't seem to get its act together.
Union (EU) accrues to its veteran members ratherAccording to the
than to theacceding countries. The EU is forced toDanish paper, Berlingske Tidende, Danish prime
revamp its costlyagricultural policies and attendantminister in 2002,
bloated bureaucracy. This,undoubtedly, will lead, albeitAnders Fogh Rasmussen, ruled out a "take it or leave
glacially, to the demise of Europe'sfarming sector asit" ultimatumto the new members. There will be "real
we know it.negotiations", he insisted.
Contrary to public misperceptions, Europe is far moreNot so, says Anders Fogh Rasmussen, the Danish
open to tradethan the United States. According topresident of the EUuntil Dec 31, 2002: "The room for
the United Nations (UN), themaneuver in negotiations will bevery limited ... We
International Monetary Fund (IMF) and thehave a certain framework, and we stick to it."
Organization of EconomicYet, disenchantment should not be exaggerated.
Cooperation and Development (OECD), its exportsNaturally, flood- affected farmers throughout the
amount to 14 percentof gross domestic productregion - from the Czech Republic to
(GDP) compared to America's 11.5 percent.Poland - are vigorously protesting their unequal
It is also the world's second largest importer. Intreatment and thecompromises their governments
constant dollarterms, it is the world's largest trader.were arm-twisted into making. Still,according to a
A Trade Policy Review released in 2002 by the Worldsurvey released in December 2001 by the European
TradeCommission, 60 percent of the denizens of the
Organization (WTO) mentions two notableaccession countriessupported it.
exceptions: farm productsand textiles. Europe'sAs the endgame nears, the parties to the
average tariff on agricultural produce isfour timesnegotiations are posturing,though. EU enlargement
those levied on non-agricultural goods. Yet, a numbercommissioner, Gunter Verheugen, argued in
oftrends conspire to break the eerie stranglehold ofNovember 2002 against equalizing support for
3-4 percent ofPoland's 6 millionfarmers with the subsidies given to
Europe's population - its farmers - on its budget andthe EU's 8 million smallholders.
politicalprocess.In a typical feat of incongruity he said it will prevent
The introduction of the euro rendered pricesthem frommodernizing and alienate other professions.
transparent acrossborders and revealed to theFranz Fischler, the Austrian EU's agriculture
European consumer how expensive his foodis. Scarescommissioner, hintedthat miserly production quotas
like the mishandled mad cow disease dentedfor cereals, meat and dairy products,offered by the
consumerconfidence in both politicians andEU to the new members, can be augmented. The
bureaucrats. But, most crucially,the integration of theEUpresently provides the new members with funding,
countries of east and central Europe withtheirwithin the Special
massive agricultural sectors makes the EU's CommonAccession Programme for Agriculture and Rural
Agricultural Policy (CAP) untenable.Development (SAPARD)to support farm investments,
The CAP guzzles close to half of the EU's $98 billionto boost processing and marketing offarm and
budget.fishery products and to bankroll
Recent, controversial reforms, introduced by theinfrastructureimprovements. Hungarian farmers, for
Europeaninstance, are entitled to up to
Commission, call for a gradual reduction and diversion$38 million of SAPARD money annually.
of CAPoutlays from directly subsidizing production toIn a thinly veiled threat, Fischler included this in a
WTO-compatibleinvestments in agriculturalspeech hemade in an official visit to Estonia in late
employment, regional development,environment and2002:
training and research. Unnoticed, support to"The EU enlargement countries should be pleased
farmersby both the EU and member governmentswith the 25 per centagriculture subsidies, as the
has already declined from $120billion in 1999 to $110member states have not agreed even onthat yet,
billion in 2000. This decrease has sincecontinuedtherefore this should be the first goal and only
unabated.afterthat can further subsidies be discussed ... It
Still, the EU is unable to provide the new memberswould not be verywise to tell the EU member states
with the samelevel of farm subsidies it doles out tothat accession countries are notpleased, that would
the current 15 members.not be positive for the whole process."
Close to one quarter of Poland's population is directlySmall wonder he was whistled down by irate Polish
orindirectly involved in agriculture - ten times theparliamentariansin an address to a joint session of the
European average.parliamentary committees foragriculture and European
The agreement struck between Germany and Franceintegration in the Sejm. Poland's fracturedfarm sector
in September 2002and adopted in a summit Brusselsis notoriously inefficient. With one quarter of thelabor
in October freezes CAP spending inits 2006 level untilforce it produces less than 4 percent of GDP. But
2013.the peasantsare well represented in the legislature
This may further postpone the identical treatmentand soaring unemployment -almost one fifth of all
much coveted bythe applicants. Theoretically,adults - makes every workplace count.
subsidies for the farm sectors of thenew membersIn the meantime, the ten new members of the EU
will increase and subsidies flowing to veteranhave teamed up topresent their case in Brussels.
memberswill decrease until they are equalized atTheir ministers of finance, foreignaffairs and of
around 80 percent ofpresent levels throughout theagriculture, parliamentary deputies in their financeand
EU by the end of the next budgetperiod in 2013.farm committees - all issued and issue common
But, in reality, the entire CAP stands to bestatements,position papers, briefings and memoranda
renegotiated in 2005-6.of understanding. But noone is inclined to take such
No one can guarantee the outcome of this process,ad-hoc alliances among the candidatecountries
especially whencoupled with the Doha round of tradeseriously. The disparity between their farm sectors
liberalization. The offers madenow to the candidateissuch that it rules out a single voice.
countries are not only mean but alsomeaningless.Moreover, the EU is strained to the limit of its habitual
A tweak by Denmark, the president of the EU in theconsensus- driven decision making. The breakdown of
second half ofthe European mechanism ofdeliberation was brought
2002, to peg support for farmers in the newinto sharp relief by the way in which thefuture of the
members at two fifthsthe going rate, won a cautiousCAP was decided in a series of chats between
welcome by the then candidatecountries. Some oftheleaders of France and Germany in a hotel in
this novel subventionary largesse will bedeductedBrussels in 2002 . Theirdeal was later rubber stamped,
from a fund for rural development in the newunaltered, in a summit of all EUmembers in October
members.2002.
Additionally, national governments will be allowed toThe Union is in constitutional and institutional flux.
top upinadequate EU dollops with governmentalSmall andeven medium sized members - such as the
budget funds.United Kingdom - aremarginalized. As the EU bloated
Even this parsimonious offer - still disputed by theto 25 countries, a core ofleadership failed to emerge.
majority ofcontemporary EU members - will cost theGermany, France, the UK, and Italy -the industrial
Union an extra $500 milliona year. It also fails tolocomotives of Europe - are at odds and (with
tackle equally weighty wrangles aboutproductiontheexception of the UK) sputtering.
quotas, EU protectionist "safeguard" measures,Decision-making has been reduced to the Council of
importtariffs imposed by the new members againstMinisters handingdown blueprints to be fleshed out by
heavily subsidizedthe less significant states andby an increasingly
European farm products, reduced value added taxessidelined European Commission and a make-believe
on agriculturalproduce and referential periods andEuropean Parliament. The constitution which was
yields - the bases forcalculating EU transfers.supposed to restorecentral authority and
It also ignores the distinct - and thorny - possibilityparticipatory democracy is dead in the water.
that the newmembers will end up as net contributorsThe countries of central and eastern Europe are and
to the budget.will, for a longtime, be second class citizens, tolerated
Quoted by Radio Free Europe/Radio Liberty, Sandormerely because theyprovide cheap, youthful, labor,
Richter, a seniorresearcher with the Vienna Instituteraw materials and close-by marketsfor finished goods.
for International EconomicThe new members are strategically locatedbetween
Studies, concluded that the first intake of ten newthe old continent and booming Asia.
members,concluded in May 2004, will end upEU enlargement is a thinly disguised exercise in
underwriting at least $410million of the EU's budget inmercantilism tingedwith the maudlin ideology of
the first year of membership alone.embracing revenant brothers long lostto communism.
With the GDP per capita of most candidates at oneBut beneath the veneer of civility and kultur lurk
fifth the EU's,this would be a perverse, sociallythecold calculations of realpolitik. The New Europe -
unsettling and politicallyexplosive outcome.the EU'shinterland - would do well to remember this.
Aware of this, the European Commission denies any========================
intention toactually accept cash from the NewAUTHOR BIO (must be included with the article)
Europe. Their net contributionswould remainSam Vaknin ( ) is the author of Malignant
theoretical, it pledges implausibly. Yet, as long asSelf Love - Narcissism Revisited and After the Rain -
acountry such as Poland is incapable of absorbing -How the West
disseminating andutilizing - more than 28 percent ofLost the East. He served as a columnist for Central
the aid it is currently entitledto - veteran EUEurope Review,
members rightly question its administrative abilitytoPopMatters, Bellaonline, and eBookWeb, a United
tackle much larger provisions - c. $20 billion in the firstPress International
threeyears after accession.(UPI) Senior Business Correspondent, and the editor
The prolonged and irascible debate has taken its toll.of mental healthand Central East Europe categories in
In some newmember countries, pro-EU sentiment isThe Open Directory and
on the wane. Leszek Miller,then Poland's primeSuite101.
minister, told the PAP news agency in late 2002thatUntil recently, he served as the Economic Advisor to
Poland should contribute to the EU less than itthe Governmentof Macedonia.
receives inagricultural subsidies. And what if not?