| Europe's Agricultural Revolution | | | | be overlyconcerned if Poland did not enter the EU |
| | | | together with the firstgroup of new members." |
| Author of "Malignant Self Love - Narcissism Revisited" | | | | Hungary echoes this argument. Almost two thirds of |
| The June 2005 budget summit in Brussels foundered | | | | respondents insurveys conducted by the EU in Estonia, |
| on the issue offarm support and subsidies which now | | | | Latvia, Slovenia and |
| consume directly 46.2% of the | | | | Lithuania are undecided about EU membership or |
| European Union's (EU) funds. Tony Blair refused to let | | | | opposed to italtogether. The situation in the Czech |
| go of | | | | Republic is not muchimproved. Only Hungary stalwartly |
| Britain's infamous rebate (amounting to two thirds of its | | | | supports the EU's eastern tilt. |
| netcontributions to the community's coffers) unless and | | | | Opinion polls periodically conducted by GfK Hungaria, a |
| until thesehandouts (which Britain's dilapidated | | | | marketresearch group owned by GfK Germany, paint |
| agriculture does not enjoy)are slashed. This followed | | | | a more mixed picture. Onthe one hand, even in |
| close on the hills of the rejection ofthe proposed EU | | | | countries with a devout following of EUaccession, such |
| constitution in French and the Dutch referenda in | | | | as Romania, support for integration has declinedthis |
| May-June 2005. | | | | year. Support in Hungary and Poland, on the other |
| One of the undeniable benefits of the enlargement of | | | | hand, pickedup. |
| the European | | | | Yet, the EU can't seem to get its act together. |
| Union (EU) accrues to its veteran members rather | | | | According to the |
| than to theacceding countries. The EU is forced to | | | | Danish paper, Berlingske Tidende, Danish prime minister |
| revamp its costlyagricultural policies and attendant | | | | in 2002, |
| bloated bureaucracy. This,undoubtedly, will lead, albeit | | | | Anders Fogh Rasmussen, ruled out a "take it or leave |
| glacially, to the demise of Europe'sfarming sector as | | | | it" ultimatumto the new members. There will be "real |
| we know it. | | | | negotiations", he insisted. |
| Contrary to public misperceptions, Europe is far more | | | | Not so, says Anders Fogh Rasmussen, the Danish |
| open to tradethan the United States. According to the | | | | president of the EUuntil Dec 31, 2002: "The room for |
| United Nations (UN), the | | | | maneuver in negotiations will bevery limited ... We have |
| International Monetary Fund (IMF) and the Organization | | | | a certain framework, and we stick to it." |
| of Economic | | | | Yet, disenchantment should not be exaggerated. |
| Cooperation and Development (OECD), its exports | | | | Naturally, flood- affected farmers throughout the region |
| amount to 14 percentof gross domestic product (GDP) | | | | - from the Czech Republic to |
| compared to America's 11.5 percent. | | | | Poland - are vigorously protesting their unequal |
| It is also the world's second largest importer. In | | | | treatment 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 World | | | | survey released in December 2001 by the European |
| Trade | | | | Commission, 60 percent of the denizens of the |
| Organization (WTO) mentions two notable exceptions: | | | | accession countriessupported it. |
| farm productsand textiles. Europe's average tariff on | | | | As the endgame nears, the parties to the negotiations |
| agricultural produce isfour times those levied on | | | | are posturing,though. EU enlargement commissioner, |
| non-agricultural goods. Yet, a number oftrends conspire | | | | Gunter Verheugen, argued in |
| to break the eerie stranglehold of 3-4 percent of | | | | November 2002 against equalizing support for Poland's |
| Europe's population - its farmers - on its budget and | | | | 6 millionfarmers with the subsidies given to the EU's 8 |
| politicalprocess. | | | | million smallholders. |
| The introduction of the euro rendered prices | | | | In a typical feat of incongruity he said it will prevent |
| transparent acrossborders and revealed to the | | | | them frommodernizing and alienate other professions. |
| European consumer how expensive his foodis. Scares | | | | Franz Fischler, the Austrian EU's agriculture |
| like the mishandled mad cow disease dented | | | | commissioner, hintedthat miserly production quotas for |
| consumerconfidence in both politicians and bureaucrats. | | | | cereals, meat and dairy products,offered by the EU to |
| But, most crucially,the integration of the countries of | | | | the new members, can be augmented. The |
| east and central Europe withtheir massive agricultural | | | | EUpresently provides the new members with funding, |
| sectors makes the EU's Common | | | | within the Special |
| Agricultural Policy (CAP) untenable. | | | | Accession Programme for Agriculture and Rural |
| The CAP guzzles close to half of the EU's $98 billion | | | | Development (SAPARD)to support farm investments, |
| budget. | | | | to boost processing and marketing offarm and fishery |
| Recent, controversial reforms, introduced by the | | | | products and to bankroll infrastructureimprovements. |
| European | | | | Hungarian farmers, for instance, 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 to | | | | In a thinly veiled threat, Fischler included this in a speech |
| WTO-compatibleinvestments in agricultural | | | | hemade in an official visit to Estonia in late 2002: |
| employment, regional development,environment and | | | | "The EU enlargement countries should be pleased with |
| training and research. Unnoticed, support to farmersby | | | | the 25 per centagriculture subsidies, as the member |
| both the EU and member governments has already | | | | states have not agreed even onthat yet, therefore this |
| declined from $120billion in 1999 to $110 billion in 2000. | | | | should be the first goal and only afterthat can further |
| This decrease has sincecontinued unabated. | | | | subsidies be discussed ... It would not be verywise to |
| Still, the EU is unable to provide the new members with | | | | tell the EU member states that accession countries |
| the samelevel of farm subsidies it doles out to the | | | | are notpleased, that would not be positive for the |
| current 15 members. | | | | whole process." |
| Close to one quarter of Poland's population is directly | | | | Small wonder he was whistled down by irate Polish |
| orindirectly involved in agriculture - ten times the | | | | parliamentariansin an address to a joint session of the |
| European average. | | | | parliamentary committees foragriculture and European |
| The agreement struck between Germany and France | | | | integration in the Sejm. Poland's fracturedfarm sector is |
| in September 2002and adopted in a summit Brussels in | | | | notoriously inefficient. With one quarter of thelabor |
| October freezes CAP spending inits 2006 level until | | | | force it produces less than 4 percent of GDP. But the |
| 2013. | | | | peasantsare well represented in the legislature and |
| This may further postpone the identical treatment | | | | soaring unemployment -almost one fifth of all adults - |
| much coveted bythe applicants. Theoretically, subsidies | | | | makes every workplace count. |
| for the farm sectors of thenew members will increase | | | | In the meantime, the ten new members of the EU |
| and subsidies flowing to veteran memberswill | | | | have teamed up topresent their case in Brussels. Their |
| decrease until they are equalized at around 80 percent | | | | ministers of finance, foreignaffairs and of agriculture, |
| ofpresent levels throughout the EU by the end of the | | | | parliamentary deputies in their financeand farm |
| next budgetperiod in 2013. | | | | committees - all issued and issue common |
| But, in reality, the entire CAP stands to be renegotiated | | | | statements,position papers, briefings and memoranda |
| 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 trade | | | | seriously. The disparity between their farm sectors |
| liberalization. The offers madenow to the candidate | | | | issuch 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 the | | | | consensus- driven decision making. The breakdown of |
| second half of | | | | the European mechanism ofdeliberation was brought |
| 2002, to peg support for farmers in the new members | | | | into sharp relief by the way in which thefuture of the |
| at two fifthsthe going rate, won a cautious welcome | | | | CAP was decided in a series of chats between |
| by the then candidatecountries. Some of this novel | | | | theleaders of France and Germany in a hotel in |
| subventionary largesse will bededucted from a fund | | | | Brussels in 2002 . Theirdeal was later rubber stamped, |
| for rural development in the new members. | | | | unaltered, in a summit of all EUmembers in October |
| Additionally, national governments will be allowed to top | | | | 2002. |
| upinadequate EU dollops with governmental budget | | | | The Union is in constitutional and institutional flux. Small |
| funds. | | | | andeven medium sized members - such as the United |
| Even this parsimonious offer - still disputed by the | | | | Kingdom - aremarginalized. As the EU bloated to 25 |
| majority ofcontemporary EU members - will cost the | | | | countries, a core ofleadership failed to emerge. |
| Union an extra $500 milliona year. It also fails to tackle | | | | Germany, France, the UK, and Italy -the industrial |
| equally weighty wrangles aboutproduction quotas, EU | | | | locomotives of Europe - are at odds and (with |
| protectionist "safeguard" measures, importtariffs | | | | theexception of the UK) sputtering. |
| imposed by the new members against heavily | | | | Decision-making has been reduced to the Council of |
| subsidized | | | | Ministers handingdown blueprints to be fleshed out by |
| European farm products, reduced value added taxes | | | | the less significant states andby an increasingly |
| on agriculturalproduce and referential periods and yields | | | | sidelined European Commission and a make-believe |
| - the bases forcalculating EU transfers. | | | | European Parliament. The constitution which was |
| It also ignores the distinct - and thorny - possibility that | | | | supposed to restorecentral authority and participatory |
| the newmembers will end up as net contributors to the | | | | democracy is dead in the water. |
| budget. | | | | The countries of central and eastern Europe are and |
| Quoted by Radio Free Europe/Radio Liberty, Sandor | | | | will, for a longtime, be second class citizens, tolerated |
| Richter, a seniorresearcher with the Vienna Institute for | | | | merely because theyprovide cheap, youthful, labor, raw |
| International Economic | | | | materials and close-by marketsfor finished goods. The |
| Studies, concluded that the first intake of ten new | | | | new members are strategically locatedbetween the |
| members,concluded in May 2004, will end up | | | | old continent and booming Asia. |
| underwriting at least $410million of the EU's budget in | | | | EU enlargement is a thinly disguised exercise in |
| the first year of membership alone. | | | | mercantilism tingedwith the maudlin ideology of |
| With the GDP per capita of most candidates at one | | | | embracing revenant brothers long lostto communism. |
| fifth the EU's,this would be a perverse, socially | | | | But beneath the veneer of civility and kultur lurk thecold |
| unsettling and politicallyexplosive outcome. | | | | calculations of realpolitik. The New Europe - the |
| Aware of this, the European Commission denies any | | | | EU'shinterland - would do well to remember this. |
| intention toactually accept cash from the New Europe. | | | | ================== |
| Their net contributionswould remain theoretical, it | | | | AUTHOR BIO (must be included with the article) |
| pledges implausibly. Yet, as long as acountry such as | | | | Sam Vaknin ( ) is the author of Malignant |
| Poland is incapable of absorbing - disseminating | | | | Self Love - Narcissism Revisited and After the Rain - |
| andutilizing - more than 28 percent of the aid it is | | | | How the West |
| currently entitledto - veteran EU members rightly | | | | Lost the East. He served as a columnist for Central |
| question its administrative abilityto tackle much larger | | | | Europe Review, |
| provisions - c. $20 billion in the first threeyears after | | | | PopMatters, Bellaonline, and eBookWeb, a United |
| accession. | | | | Press International |
| The prolonged and irascible debate has taken its toll. In | | | | (UPI) Senior Business Correspondent, and the editor of |
| some newmember countries, pro-EU sentiment is on | | | | mental healthand Central East Europe categories in |
| the wane. Leszek Miller,then Poland's prime minister, | | | | The Open Directory and |
| told the PAP news agency in late 2002that Poland | | | | Suite101. |
| should contribute to the EU less than it receives | | | | Until recently, he served as the Economic Advisor to |
| inagricultural subsidies. And what if not? "Nobody would | | | | the Governmentof Macedonia. |