Sources of Financing Sustainable Agriculture and Rural Areas in the EU in the Financial Perspective of 2021-2027

Abstract

In the Financial Perspective of 2021-2027, the European Commission has earmarked an amount of 365 billion euros for agricultural and rural development under the Common Agricultural Policy (CAP), compared to 416 billion euros in the previous Perspective. Of the planned funds in the current financial perspective, EUR 265.2 billion was allocated for direct payments (previously EUR 294.9 billion) and EUR 78.8 billion for rural development (previously EUR 95.3 billion). There was also an additional allocation of EUR 20 billion for market support and EUR 10 billion for the Horizon Europe research program. Overall, the 2021-2027 Financial Perspective budgeted funds from the EU budget at 88% compared to the previous Financial Perspective for actions at CAP. The new funding rules indicate a wider range of powers granted by the European Commission to Member States under subsidiarity delimitation. As a result, Member States will be able to make greater use of spending powers to take account of local conditions and needs in strategic planning for agriculture and rural areas. The main role of CAP, as in the previous perspective, will be to provide measures to support sustainable agriculture and rural development in individual Member States.