The ruling family of the United Arab Emirates has received more than €71 million in EU farming subsidies, according to a Guardian investigation published today - a revelation that exposes the fundamental failure of Brussels' repeated promises to reform the Common Agricultural Policy.
The payments, distributed over recent years through CAP's direct payment scheme, flow to UAE royal family members who own vast agricultural estates in Eastern Europe. The money comes from the same budget that EU Agriculture Commissioner Janusz Wojciechowski has championed as supporting "small and medium family farms."
Brussels decides more than you think - including, apparently, that billionaire Gulf monarchs qualify as European farmers in need of subsidy support.
## The Land Ownership Loophole
The mechanism is straightforward, and perfectly legal under current EU law. The CAP distributes roughly €55 billion annually in direct payments to landowners, with the primary criterion being that you own agricultural land within the European Union. Nationality, wealth, and whether you've ever driven a tractor are immaterial.
When Slovakia, Czech Republic, Hungary, and other Eastern European states joined the EU in 2004, their agricultural land became eligible for these subsidies. Much of this land had been privatized in the 1990s after the fall of communism, often sold in large blocks to foreign investors seeking cheap assets.
The UAE royal family, along with wealthy investors from the Gulf states, acquired substantial holdings during this period. Today, those investments generate millions in annual EU subsidies - paid for by European taxpayers.
## Why the Commission Can't Stop It
The European Commission knows about this problem. It has known for over a decade. Yet the subsidy payments continue, constrained by the EU's own rules on free movement of capital and non-discrimination.
"Any EU national or legal entity established in the EU can receive CAP payments if they meet the eligibility criteria," a Commission spokesperson told the Guardian. "We cannot discriminate based on the ultimate beneficial owner's nationality."
