By Francesca Ross - 30th July 2009
Britain's upper house of parliament has criticised the EU for continuing to focus funds on agriculture over recovery from the economic crisis.
Members of the House of Lords EU committee said they found the continuing spotlight on farm subsidies "deeply frustrating" as the economic situation across Europe worsens.
Committee member Baroness Cohen, said, "At a time where it is clear that Europe's economy needs major economic stimulus it is very frustrating that so much of the EU's spending continues to be channelled to agricultural spending that provides very poor value for money."
The preliminary draft budget for 2010 allocates €60bn for "preservation and management of natural resources" – of which agricultural spending is a large part. This contrasts with the €63bn set aside for "sustainable growth".
The committee said, "We conclude that it is disappointing in the context of the financial crisis that this proportion remains so large."
In their latest report, peers also said that the EU's "relatively small" budget of €142bn limited its potential to contribute to global stimulus efforts.
Also, the imposed multi-year ceilings, while useful for stability, reduced the flexibility of the EU to respond to events such as the present financial crisis, said the committee.
Cohen continued, "It is vital that the budget is looked at again so projects which can provide real economic and social benefits, such as investment in green technologies, are given the funding they need while the CAP spending is appropriately reduced."
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