Brussels, 16/04/2013 (Agence Europe) - The Community institutions are working flat out to reach a compromise on reform of common agricultural policy (CAP) by the summer. Even if they manage to keep to all the deadlines, it will not be possible for all the provisions of the new CAP to enter into force by 2014. On Thursday 18 April, the European Commission will therefore be putting forward a proposal for transitional measures, mainly in relation to direct payments.
The new direct payments scheme will not take effect until 2015, including aid greening under the first pillar (direct aid and market-related expenditure), internal convergence (that is, the end of historical references to be replaced with aid per hectare) and support for young farmers. Payment agencies will need time to adjust their procedures.
Direct payments. According to the proposal on transitional measures, brought to EUROPE's attention, the following current provisions will remain in place in 2014: - the single payment scheme (direct aid); - the single area payment scheme (SAPS) from which most new member states benefit; - and coupled aid, including under Article 68 (specific support measures). Subject to approval from the European Parliament, the transitional measures incorporate the budgetary consequences arising from the European Council's compromise (on 8 February this year) on the EU's multiannual financial framework 2014-2020. This relates to the redistribution of direct payments between member states (external convergence). Thus, elements concerning the redistribution of aid between countries could apply as of 2014. The European Council's compromise is as follows: member states with direct payments per hectare below 90% of EU average will fill one third of that difference over the next period, a minimum level of €196 per hectare being reached by 2020.
Rural development. Transitional measures are required to take into account the budgetary implications of rural development measures that are one year behind entry into force of the new direct aid system. This, in particular, is the case for agro-environmental measures and measures relating to climate, and the rules on cross-compliance (granting of direct aid subject to meeting certain criteria). Transitional arrangements are needed, also, to allow EU member states to undertake new commitments pursuant to the measures relating to livestock and surface areas in 2014. It should be possible to finance the new commitments out of the new financial envelopes of the 2014-2020 rural development programmes, the Commission states.
Transfer of funds between pillars. The flexibility mechanism (which allows countries to transfer a certain percentage of credit from the first pillar to the second and from the second pillar to the first) is one of the elements of CAP reform to be decided under ordinary legislative procedure. The Council takes up the European Council agreement stipulating that the text authorises member states to allocate, as supplementary support, up to 15% of their national envelope for rural development. They may also transfer up to 15% of the rural development envelope to direct payments (up to 25% in the case of Bulgaria, Estonia, Finland, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Spain, Sweden and the United Kingdom). The EP proposes 15% for transfers towards the second pillar and 10% for those towards the first pillar. The percentage remains in square brackets in the Commission's text pending the final compromise.
New market measures, including those envisaged for times of crisis in an agricultural sector, would be applicable from January 2014.
Budgetary impact. For direct payments, the European Council's conclusions correspond, in comparison with the Commission's proposal, to a reduction of €830 million during the financial year 2015 (which corresponds to requests for direct aid 2014).
Last Thursday, European Agriculture Commissioner Dacian Ciolos explained that it is hoped the legal base and regulations will take effect in 2014. However, as for direct payments, farmers file their claims at the beginning of the year, he said, and national administrations will not be ready in February or March 2014 with rules decided mid-2013 and clarified by implementation measures during the second half of 2013. When it comes to direct payments, farmers will not file their direct payment requests in 2014 on the basis of the new legislation, but in 2015. For direct payments, 2014 will be a transitional year for administrations but this will not change very much for farmers as they will continue to use the same procedures as they do now, the commissioner said by way of conclusion. (LC/transl.jl)