France's Agricultural Lobby: A Powerful Force in Brussels Negotiations

Strategic Insights -

France's Socialist-led government is facing mounting pressure from its powerful agricultural lobby as negotiations over the common agricultural policy (CAP) reform get underway in Brussels. French officials admit that farmers are in an "ugly mood" due to low commodity prices and fears of losing subsidies, which would leave them exposed to competition from abroad. The government is aware that making concessions to the EU partners, particularly Germany, which holds the EU presidency, could lead to a damaging confrontation.

Key Takeaways:

  • French farmers' incomes are being squeezed by low commodity prices, with some 200 farmers from the Paris region ransacking the offices of Environment Minister Dominique Voynet on February 8.
  • The main farmers union, Fnsea, chairman Luc Guyau, has rejected any cut in EU subsidies, accusing Environment Minister Voynet of making matters worse with her proposal to introduce a tax on pollutants.
  • French farmers account for 4.2% of the country's active population and agriculture generates only 2.4% of GDP, yet their lobby is incredibly powerful.
  • Successive French governments have either backed or given into farmers' demands since the CAP was established in 1962.
  • The "co-habitation" between the Socialist government and right-wing president in France has complicated matters, with President Jacques Chirac opposing the government's attempt to wean farmers away from the right.
  • France's common platform for the CAP reform rejects the German-backed idea of "co-financing," which would shift part of agricultural funding back to national governments.
  • France is advocating for a system of gradual cuts in aid over the next six years, with the largest cut being an annual 3% applied to cereals.

Statistics:

  • 4.2%: The percentage of France's active population accounted for by farmers.
  • 2.4%: The percentage of GDP generated by agriculture.
  • 1962: The year the Common Agricultural Policy (CAP) was established.
  • 3%: The largest annual cut in aid for cereals proposed by France.
  • 2000-6: The period for the EU's financing negotiations, known as Agenda 2000.

Sources:

  • Financial Times Limited (1999) "France's agricultural lobby: a powerful force in Brussels negotiations".