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European Council: 15–16 December 2005

My Lords, the simple answer is that it depends. For example, in our discussions in Poland with the Government and others, it appears that Polish farmers are not at all sure that they want retention of the CAP. They feel that they can be successful without it and that the common agricultural policy is beginning to distort the Polish economy. Of course, there is the potential for a longer-term problem, given that, at present, 35 per cent of the European Union budget goes on the common agricultural policy and a further 35 per cent goes on the structural and cohesion funds. The reason that it is so important that we reform the CAP is not only because of its distorting effect on European Union economies but also because, in the longer term, it may well prevent those countries in eastern Europe that have a vision of the European Union that is very close to ours achieving the fundamental reforms that they would like to see if their agricultural sectors and their farmers become too dependent on the CAP.