Germany: Cabinet Agrees on Draft Laws to Implement New EU Agricultural Policy

On April 13, 2021, the German Cabinet agreed on four draft laws to transpose the European Union (EU)’s new common agricultural policy (CAP) into national law. Member States are required to notify their national implementation plan to the Commission before the end of 2021. To meet this deadline, the German legislative process must be concluded before the summer recess as Germany holds Federal elections in September. The German draft laws represent a clear shift to a “greener” agricultural policy. For example, they include a reduction of the basic area payments; a gradually increasing reallocation of funds from pillar 1 to pillar 2; a ring-fencing of 25 percent of the remaining area payments for “eco-schemes;” and a three percent set-aside for biodiversity. This report summarizes the major provisions of the proposed laws.