Brussels, 11/07/2013 (Agence Europe) - The European Parliament hopes that, from September on, discussions with the Council will focus on the issues not yet settled under common agricultural policy (CAP) reform. These are matters which require full agreement on the EU multiannual financial framework (MFF) for 2014-2020 relating to aid degressivity and the transfer of credit between CAP pillars.
The Presidency hopes to finalise the texts of the political agreement of 26 June on reform for the first meeting of the Special Committee on Agriculture (SCA) after the summer break, i.e. on 2 September. It also hopes to finalise, together with the EP, discussions relating to the MFF in the agreement, on the basis of the Council/EP agreement on MFF.
During the SCA on Monday 8 July, several EU states (Germany, United Kingdom, Netherlands, Denmark, Czech Republic, to name but a few) pointed out that, in their view, there was no question of reopening talks on CAP reform in relation to MFF aspects. According to the delegations, there is a risk of jeopardising the balance on which the whole agreement was sealed in June.
Transitional rules
The Commission presented a proposal providing for one year of transition for direct payments in 2014. In other words, the new elements, such as greening and complementary aid for young farmers, will only apply as of 2015. In the same fashion, member states are encouraged to work on their multiannual rural development programmes which should be approved early next year. Nonetheless, for certain annual elements, such as agri-environmental payments, it is appropriate to apply transitional rules so that this kind of regime is not interrupted.
The Presidency hopes to have a mandate in order to be able to begin negotiations with the EP from October. The text must be adopted by the end of the year. During the SCA, several countries (France, Germany, Italy, the United Kingdom, Belgium, Sweden and Denmark) underlined that rural development measures should be extended in identical form for one year on the basis of the new budgetary envelope. Those countries note that this will affect investment aid in particular.
Some countries - including France, Finland, Hungary and Bulgaria - were of the view that some measures affecting coupled aid and appearing in the reform could already be implemented in 2014, by providing for an increase in the percentages of coupled aid in particular.
France has put forward a detailed proposal on the transitional draft regulation for the year 2014. The priority point for the country is funding of the additional premium for suckler cows out of Community funds. The additional national premium for suckler cows (PNSVA) is currently implemented in France out of national funds. France is calling for it to be possible to finance this premium out of Community funds from 2014. The agreement reached on CAP reform makes it compulsory to fund this aid within the framework of Article 38. From 2015, it will therefore be paid for out of Community funding. It is necessary to use the transition regulation to best advantage in order to anticipate the entry into force of this fundamental element of the political agreement on direct payments, France writes. Two options might be considered: - increase the coupled aid ceiling by 3%, as decided in the context of reform, which would mean that, for 2014, the rate would be increased from 3.5% to 6.5%; - or, failing this, enlarge, in 2014, the funding possibilities for this premium out of Community funds on the basis of each member state's national envelope. This would mean inclusion in the transition regulation of an amendment to Article 111(5) of Regulation No 73/2009, which sets out the criteria to be met by the herd of a member state wishing to finance the suckler cow premium from the European Agricultural Guarantee Fund (EAGF) rather than from its national budget. This change aims to enlarge the categories of conformation retained. (LC/transl.jl)