Brussels, 26/04/2013 (Agence Europe) - The European Parliament rapporteur is against the cut of nearly 5% to direct payments for 2013, attributable to the 2014 Community budget, which the European Commission is proposing as part of financial discipline. The proposal takes account of the agreement by EU leaders on the 2014-2020 multiannual financial framework - on which the MEPs have still not given their decision.
Luis Manuel Capoulas Santos (S&D, Portugal), who is compiling the report on implementing financial discipline for the 2014 budgetary period (reduction of 2013 direct payments, the spending required having to exceed the maximum of the CAP envelope), is proposing rejection of the Commission's proposal of 26 March. In Capoulas Santos' view, the Parliament must, at this stage, stand by the negotiating mandate for the common agricultural policy (CAP) reform that was approved in plenary on 13 March, and which is based on the spending ceilings calculated by the Commission in 2011 in its initial proposal of the EU's financial framework for the 2014-2020 period.
On this basis, Capoulas Santos suggests a reduction of only 0.748005% of 2013 direct payments, “an estimate provided by the Commission itself on (his) request”, rather than the 4.981759% advocated by the Commission. Capoulas Santos explains that his calculation does not, of course, include the reserve for agricultural crises that the Commission proposed to create outside the financial framework, although the EU heads of state and government agreed to include it in the CAP envelope, up to €425 million, and therefore to integrate it into budgetary discipline.
Capoulas Santos supposes that a certain level of financial discipline might have to be applied to the payment requests submitted in 2013. Nevertheless, he adds, “if the European Parliament and the Council were not able to reach an agreement on the 2014-2020 financial framework over the coming months, and if the 2013 budgetary ceilings were applied in 2014, it might be that financial discipline is not necessary”.
€5,000 exemption. By contrast, Capoulas Santos picks up the element of the Commission's proposal according to which budgetary discipline will not apply to the first €5,000 received, and will not be imposed on Bulgaria, Romania and Croatia - which are still in the integration phase for the direct aid scheme. This issue is on the agenda of the CAP reform negotiations between the Council - which would reduce this exemption from €5,000 to €2,000, the European Parliament - which has spoken out for the threshold of €5,000, and the Commission. (LC/transl.fl)