EU member states and the European Parliament have reached a provisional agreement on a sweeping reform of the bloc’s Common Agricultural Policy (CAP), easing environmental standards in a bid to cut red tape and support struggling farmers.
Under the deal, smaller farmers will be exempt from certain environmental requirements previously tied to subsidy payments, while the EU will increase the financial support they can receive.
“This will help the agricultural industry grow and become stronger, boosting the sector’s competitiveness across Europe,” said Denmark’s Minister for European Affairs, Marie Bjerre.
Environmental campaigners, however, have criticised the reforms, warning that weakening green conditions could leave farmers more vulnerable to the effects of climate change.
The European Commission proposed the overhaul in May, following months of protests from farmers over strict EU environmental rules and competition from cheaper imports. The Commission had already relaxed several green conditions attached to CAP payments earlier this year and has gone further with the latest measures.
According to Commission estimates, the changes could save farmers up to €1.6 billion ($1.87 billion) annually by reducing regulatory burdens, with on-site inspections limited to once per year.
The CAP, worth €387 billion ($452 billion) — about a third of the EU’s 2021–2027 budget — remains one of the bloc’s most significant funding programmes.
The reform forms part of a wider “simplification omnibus” initiative, aimed at streamlining EU policies and reducing bureaucracy for businesses, amid growing pressure to keep pace with China and the United States, where deregulatory measures are being aggressively pursued.
The provisional agreement will now proceed to formal approval by the EU Council and the European Parliament before it can take effect.
