By Martin Banks - 8th February 2011
Currently, agricultural policy takes up about half of the EU budget even though it accounts for only four per cent of EU gross domestic product
Ricardo Neiva Tavares
Brazil's ambassador to the EU has launched a withering attack on the common agricultural policy, branding it a "drain".
Ricardo Neiva Tavares said on Tuesday that the much-criticised policy, currently the subject of a major review by the commission, limits Europe's ability to play a bigger role on the world stage.
Speaking at the launch of a major report on EU competitiveness and growth, he called for a "significant diversion" of EU funds away from the CAP and towards areas such as education and R&D.
Tavares said, "Currently, agricultural policy takes up about half of the EU budget even though it accounts for only four per cent of EU gross domestic product.
"This is a real drain on the budget and the EU's ability to invest in those areas that will lead to a more competitive economy in Europe."
He said Europe still had a key role to play globally in areas such as trade, goods and services, but that it had to accept that it "must share global governance" with fast-emerging economies such as Brazil, India and China.
In future, he said, the EU had to choose between "preserving" its welfare state at "whatever cost" and "focusing attention on those areas which will ensure its future competitiveness".
"Increasingly, you will see countries like Brazil playing a central role."
He also called for reform of the UN security council saying he hoped change would come about without a "catastrophe" such as the current economic crisis.
The diplomat was speaking at the launch of a study by Dan Hamilton, of John Hopkins University, which examines the EU's competitive position in the global market place.
The study makes a number of recommendations, including "fundamental" fiscal reforms, completion of the single market and raising productivity.
Hamilton said, "The EU has a decade to position itself to prosper in the increasingly competitive and connected G20 world.
"The economic crisis could be a watershed moment, either as a spur to a more competitive continent or the time when Europe lost out decisively."
