It was not easy to draw up a compromise package. The expected increased ambitions with regard to the climate and the environment differed between Member States and the European Commission. Discussions on CAP reform have been taking place since June 2018. The German Presidency presented a compromise package which was endorsed by the vast majority of EU agriculture ministers.

The main element of the compromise was to allocate a minimum of 20% of the funds from the first pillar to voluntary agrotechnical practices for farmers which favour environmental and climate protection (eco-schemes).

Greater flexibility is ensured in the management of Pillar I funds to such effect that all EU funds will go to farms.

An important element of the compromise is also the simplification of the control system for small farms in terms of meeting the conditionality requirements. Small farms will also be excluded
from the financial discipline mechanism.

The possibility of allocating 15% of the national envelope of the first pillar to production-related payments has also been retained.

The common understanding reached by the Council allows for a rapid conclusion of the arrangements with the European Parliament and the Commission so that farmers will have continuity of funding and certainty about the shape of the future EU common agricultural policy.