Brussels, 18/09/2013 (Agence Europe) - On Tuesday 17 September, the three institutions of the EU failed to reach a compromise on the issues of the reform of the common agriculture policy (CAP) related to the multi-annual financial framework 2014-2020. The most delicate issue during this “warm-up round” was the degressivity of aid (reduction of aid to the largest farms). The Lithuanian Presidency of the Council was unable to accede to the requests of the EP, which nonetheless feels that it has shown flexibility. At this stage, the Council would prefer to stick scrupulously to the agreement of 26 June on the reform of the CAP, which laid down provisions on degressivity, flexibility between pillars and the rate of co-funding for rural development, all of them between square brackets.
Degressivity. Under the agreement of late June, the Council is planning to set at 5% the maximum rate for the reduction of direct payments in excess of €150,000, with a derogation (no drop in aid) for countries using 4% of “redistributive” payments (premium for the first 30 hectares). The MEPs spoke in favour of a 5% reduction in direct aid of more than €150,000 and a 10% cut for amounts in excess of €300,000. A derogation should be granted to countries which use more than 10% of the national upper limit for redistributive payments, according to the EP.
Flexibility between pillars. The Council provided an option for countries to transfer 25% of the second-pillar credits (rural development) into the first pillar (direct aid) for countries receiving aid below the EU average and 15% for those which are above the average. The EP proposed 15% for the countries below the EU average and 5% for the others.
Co-funding. For the least developed regions, the Council provided a co-funding rate of 75%, whilst the EP was calling for 85%.
At the Agriculture Council of 23 September, the Presidency will report back to the ministers on the elements presented at the trialogue by the EP. There should be at least one round table after the presentation, during which the countries will reiterate that they want a swift agreement but do not wish to reopen negotiations. Over a working lunch, the Council will hold an in-depth discussion on the same subject.
It is possible that after Monday's Council (which is expected to end at around 3.00pm), an expert meeting will be held to prepare the Council's position for the next day's trialogue (24 September) on MFF-related subjects. The agriculture committee of the EP will vote on the texts reforming the CAP on 30 September.
During the trialogue, Commissioner for Agriculture Dacian Ciolos commended the EP on the flexibility it had shown. He called for the Council to show a similar degree of flexibility. (LC/transl.fl)