Rural Development in the Perspective of EU Enlargement

"RURAL DEVELOPMENT PLAN FOR EUROPEAN COMMUNITY SUPPORT FOR PRE-ACCESSION MEASURES IN AGRICULTURE AND RURAL DEVELOPMENT IN LATVIA. (SAPARD) 2000 – 2006.

THE RURAL DEVELOPMENT PLAN (RDP) FOR ESTONIA.

The EU has entered an intensive phase of negotiation with the candidate countries. The agricultural chapter has been opened for negotiation with the 'Luxembourg group' on 4 June, SAPARD plans are being discussed and agencies implemented. Just recently, nine agreements for further bilateral trade liberalization were concluded. Independently of enlargement, factors such as economic development, the evolution of agricultural markets and globalization make changes in rural areas in the candidate countries inevitable. Indeed, agricultural policy can help cushion the effects of necessary change in the agricultural sector, with its focus on reducing market and income volatility. But many factors conspire to prevent rural areas reaching their real economic potential in comparison with urban areas: an older workforce, a generally lower education level, low investment levels, and sluggish development of income and growth. This is the context within which agricultural restructuring must take place, requiring land consolidation, labour adjustment and significant investment. In the EU, this was a gradual process that went on for decades. In contrast, candidate countries will be confronted with a combination of rapid change and persistence of subsistence farming. In these conditions, direct payments from the Common Agricultural Policy would do little to support a growing share of the rural population dependent on non-agricultural incomes. In the EU-I5, rural development policy is basically a link between market policy, environmental concerns, and regional development. In the candidate countries, it will serve as a foundation for sustainable agriculture and rural communities. Agenda 2000 puts in place a framework focused on competitiveness, quality, the environment, and viable rural communities. All these aspects are dear to the candidate countries, too, particularly with regard to their rich environmental heritage. This was recognized at the Berlin European Council (in the form of specific budget headings) through financing for SAPARD. After accession, resources for rural development are planned to be topped up.
   Under SAPARD roughly 520m euro per year will be available for all candidate countries (1999 prices). It is necessary to be realistic about what SAPARD can achieve. It can only start to tackle a part of the problems confronting rural areas, but can be a catalyst for change in combination with other EU instruments. SAPARD is thus part of building institutional capacity to help deliver Community policies after accession.
   Agenda 2000 proposed that on accession up to 2,200m euro per year would be available for accompanying measures and less favoured area payments in the candidate countries (initially targeting the Luxembourg Five). To this must be added further resources from the Structural Funds for investment, young farmers, training, processing and regional development since all candidate countries may well be eligible under Objective I. Thus, the resources available after accession will increase significantly. Preparation will be critical.
   We cannot wait until negotiations are completed to get down to the business of rural development and sustainable agriculture. Experience in the EU has taught that successful rural development policy requires sound financial and administrative mechanisms, good project ideas, sound strategies and, of course, a pool of committed and talented individuals in local communities and administrations. We may even need new ideas and instruments. Now is the time to lay the foundations

Dr Franz Fischler
Commissioner for Agriculture, Rural Development and Fisheries
European Commission
Rue de la Loi 200
B-1049 Brussel
Belgium
Tel.: +3222959626
Fax: + 32 2 295 92 25
Email: kabinett-fischler@cec.eu.int