EU cooperative banks play a vital role in financing agriculture, including for small and medium-sized farms and rural enterprises. As trusted and locally rooted institutions, they are also key intermediaries for EU financial instruments and important advisors for CAP-related support, playing an essential role. To achieve greater efficiency, different actors in the agri-finance sector should be adequately supported in providing such services.
The current EU regulatory framework surrounding agri-finance is often overly complex, fragmented across jurisdictions, and burdensome, especially for smaller actors and first-time applicants. As such, the EACB supports the simplification measures proposed on 14 May in their aim to streamline and simplify applicable requirements, moving toward a more investment-friendly framework, enabling a competitive and economically sustainable sector. At the same time, the EACB emphasizes that simplification (or even deregulation) should not impact the environmental and climate goals of the CAP, which should continue to support the movement towards a more sustainable food system.
A truly simplified EU regulatory environment for agri-finance will make it easier for farmers to access funding and for banks to provide it efficiently and responsibly. EU cooperative banks stand ready to support the development and implementation of a more proportionate and risk-sensitive regulatory framework that fosters inclusive rural investment, advances environmental sustainability, and strengthens the resilience of Europe’s agricultural sector.