NFU Report: CAP health check moves into second gear

After the gesturing and positioning that has characterised the discussion amongst member states so far, talks moved into a more concrete phase this week with the presentation of a first "e;compromise"e; text on a number of aspects of the CAP health check proposals, due to be discussed by negotiators. These concern the use of Article 68 (the ability to hive off up to 10% of the national SPS ceiling for specific purposes) for crop insurance and animal disease mutual funds and flanking measures for the dairy sector.

With regard to the latter, there is strong pressure on the EU Commission to find an approach that will win support for the Germans for the whole package. It is they who have doggedly pursued the idea of a "e;milk fund"e; to help support dairying in disadvantaged areas. The measures to be proposed are likely to consist of a repacking of some Second Pillar rural development supports that can be geared towards the dairy sector.