George Lyons claims CAP budget will be cut by 20%

LAST week, the EU announced a Common Agricultural Policy budget up to 2020 with a reduction of 2 per cent per annum.

However, yesterday George Lyons MEP yesterday warned that the reality was 20 per cent was being scythed from the fund.

"On the surface, the 2 per cent per annum or 12 per cent cut for the 2014-20 total budget appears to be not too bad but if you dig a little deeper the reality is much worse," he said.

"When you compare the budgets on an annual basis, according to the Commission's own budget figures, the direct payment budget for 2011 of €47.62 billion will be cut by 20 per cent to €38.06bn by 2020.

"That can only mean significant cuts in payments to farmers and we need an explanation from Commissioner (Dacian] Ciolos."

Lyons indicated he would be meeting the Commissioner on Monday to raise the issue. He would also question whether the €2.5 million in the budget for adjustments arising from the Mercosur Fair Trade Deal meant this removal of trade barriers between the EU and South American countries was now a done deal.