Brussels, 24/09/2013 (Agence Europe) - Has a decision finally been made on the common agricultural policy (CAP) reform? If all goes according to plan, the Council and European Parliament could tie up the negotiations on the CAP reform during the evening of Tuesday 24 September. This will be thanks to the slightly modified mandate of the Council obtained by the Lithuanian Presidency on issues linked to the EU's multiannual financial framework (MFF) for 2014-2020 (see EUROPE 10927). The Council has not offered concessions either on the degressivity of aid, or on the flexibility between the two pillars of the CAP. It has, however, granted the Parliament's request on increasing the level of Community co-financing for rural development programmes.
Degressivity. The Council did not amend the 26 June mandate on the political agreement on the reform of the CAP. The Parliament proposed two levels but the Council refused to concede on this, standing firm on a 5% reduction rate for direct payments above €150,000 per annum. The Council makes provision for countries to be exempted from degressivity if they introduce a redistributive payment (payment on the first hectares) of 5% of the national direct payments envelope. This exemption will allow, in particular, Germany to escape degressivity.
Flexibility between pillars. The Council gives countries which receive less aid than the EU average the possibility of transferring 25% of second pillar (rural development) credits to the first pillar (direct payments) and those countries which receive more than the EU average in aid up to 15%. The Council has not moved its position on these percentages.
Co-financing rate for rural development. The Parliament managed to win a slight victory with the increase from 75% to 85% (though on a voluntary basis) of the co-financing rate for rural development programmes in the less developed regions, the outermost regions and the smaller Aegean islands.
Presentation of the breakdown of the rural development budget. The Council agreed to include this breakdown in an annex to the rural development regulation. The Commission will have the power to amend this annex through delegated acts in clearly defined circumstances. (LC/transl.fl)