Brussels, 06/09/2013 (Agence Europe) - The European Commission has proposed an extension by an extra two years of the derogation making it possible to use topped-up co-funding rates for rural development measures, for countries facing the risk of serious financial stability problems.
The countries receiving the financial assistance of the EU (Cyprus, Hungary, Romania, Latvia, Portugal, Greece and Ireland) will have the opportunity to use topped-up rates to co-fund rural development measures: 95% in convergence areas and the extremely remote regions and 85% in all other cases.
This facility was due to expire on 31 December 2013. But in view of the fact that the economic situation is still tough in the countries in question, the Commission made a proposal on 11 July of this year to extend the system until 31 December 2015. In practice, this will not change the national envelopes, but represents an option to make funds available for rural development measures in these countries.
The Commission wants the proposed regulation to be adopted before 1 January 2014, in order to avoid a “yo-yo” effect: if this were not to happen, the normal co-funding rates would be applied from that date until the regulation was adopted.
At the meeting of the Special Committee on Agriculture (SCA) on Monday 2 September, several of the countries in question, such as Romania, Portugal and Cyprus, unsurprisingly supported the proposal. The Lithuanian Presidency of the Council of Ministers pointed out that the Council is awaiting comments from the European Parliament before the matter can go any further. (LC/transl.fl)