aA
Direct EU payments to Lithuanian farmers in 2021-2027 should be capped at 100,000 euros, Agriculture Minister Andrius Palionis says, adding that they will be 50,000 lower compared to the existing financial perspective.
Minister: direct EU payments to farmers should be capped at EUR 100,000
© DELFI / Andrius Ufartas

"The cap stood at 150,000 euros for this financial period, and it will stand at 100,000 euros for the new period. If we want to change the amount, we'll have to amend the law. The state can raise the cap as much as it wants," the minister told the opposition conservative Homeland Union–Lithuanian Christian Democrats' parliamentary group on Thursday.

He later told BNS that the 150,000 euro cap was lifted in 2019 and there's no cap at the moment.

Palionis, nevertheless, believes a payment cap would not be effective. He doubts he would sign such an order while being the minister. He is convinced that it would be more effective if other forms of support were applied.

Palionis also told BNS the exact date when the cap would come into force would be clear in the fall when the EU would decide on the length of the transitional period – one or two years. And it will then be clear when the 2021-2027 financial period's commitments will come into force. Besides, EU member states are not obliged to introduce caps.

The conclusions of the European Council of July 17-21 read that the capping of direct payments for large beneficiaries will be introduced on a voluntary basis at the level of 100,000 euros.

Lithuanian President Gitanas Nauseda called for a cap on direct payments as soon as EU leaders approved the bloc's 2021-2027 budget in late July. His team said these payments could be capped at around 60,000 euros per farm.

According to the president, payments to farmers must be socially just, supporting not only large but also small and medium-sized farms.

Palionis earlier did not back the president's initiative to cap direct payments, saying this would reduce Lithuanian farmers' competitiveness.

Under the 2021-2027 budget, direct payments to Lithuanian farmers are set to grow to 200 euros per hectare in 2022, from 177 euros currently. The minimum payment should reach 215 euros per hectare in 2027.

The Baltic states secured a better deal on agricultural subsidies at the end of the marathon summit in late July.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Minister: budget deficit to narrow, debt-to-GDP ratio to stabilize in 2021

The Lithuanian state's 2021 budget bill has been drafted with the aim of reducing the general...

One in 3 Lithuanians feels anxious about money

Thirty-nine percent of Lithuanians feel anxious about their finances every day, which adversely...

Simonyte: key budget issue is what to do with borrowed money (1)

The key question related to Lithuania's next year budget is what will be done with borrowed money...

Minister: Lithuania financially capable of withstanding another coronavirus outbreak

Lithuania would be financially capable of withstanding another coronavirus outbreak, Finance...

A new commercial bank has launched operations in Lithuania

PayRay , a Lithuanian financial sector company, has started a new page of its business service...

Top news

Scientists: strict lockdown might be necessary as early as November

Under the most pessimistic scenario, a strict quarantine in Lithuania might be necessary as early as...

Lithuania hands in note to Minsk over Astravyets NPP

Lithuania has on Tuesday handed in a diplomatic note to Minsk over plans to launch power production...

413 new coronavirus cases

On Monday, 413 new COVID-19 cases were detected in Lithuania. Overall, it adds to 11362 confirmed...

Football and basketball officials say ban on fans in stadiums understandable

Lithuania's top football and basketball officials say the government's planned ban on fans in stadiums...

Colin P. Clarke, Asfandyar Mir | D+ nariams

Al Qaeda’s leader is old, bumbling, and a terrorist mastermind

Ayman al-Zawahiri isn’t trying to plan another 9/11 attack—because he doesn’t need to.

|Maža didelių žinių kaina