Brussels, 25/09/2013 (Agence Europe) - The Commission, Council and European Parliament reached a political agreement on Tuesday evening on the final “budget” points that remained to be resolved after the 26 June political agreement on reform of the common agricultural policy (CAP). These were provisions related to the EU multiannual financial framework (MFF) for 2014-2020, such as degressivity of aid, transferring funds between the two pillars of the CAP and the co-funding rate for rural development programmes. Compared with what had been planned (between square brackets) in its mandate of late June, the Council has made concessions to the Parliament on certain rural development points but conceded nothing on degressivity or transferring funds between pillars.
“Having found agreement on most of the CAP reform package in June, I am delighted that we have now been able to finalise the reform as a whole”, said EU Agriculture Commissioner Dacian Ciolos. He paid tribute to “ministers and MEPs for the way in which they have been able to find a compromise on these issues which respects the co-decision process”. Following this agreement, The Commission hopes this agreement can be swiftly followed by a formal vote in the European Parliament and Council, which will allow the legislative texts and the transition arrangements to be formally adopted before the end of the year, and apply from January 1, 2014. “This is important for European farmers as it provides them greater certainty for the coming year”, the commissioner pointed out.
Lithuanian Agriculture Minister Vigilijus Jukna thanked the parties for their “significant contribution” to the conclusion of an agreement “on our common goal” - a sustainable and effective reformed common agricultural policy. The outcome of the negotiations presents, he said, “a nice example” of how all the European institutions can agree on issues important to all EU farmers. “By this decision we can ensure clear rules and financial guarantees to our farmers”, he stated.
The Parliament agriculture committee will vote on Monday 30 September (at 5.00pm) on the four regulations reforming the CAP. The plenary session vote will take place in Strasbourg at the end of October or start of November.
“We have CAP reform”, said a delighted Paolo De Castro, chair of the agriculture committee. He said that the Parliament had wanted the Council to negotiate the points of the 26 June agreement that had been left between square brackets. “We would have liked to have had more”, he acknowledged, pointing out that on a number of important points the Parliament had got its way. The CAP will be greener (30% of aid paid out will be linked to more environmentally friendly practices), less bureaucratic, and younger (with specific compulsory aid for young farmers) and will work to the benefit of professional farmers, De Castro stated. “For the first time, degressivity of aid will be introduced”, though the percentage finally agreed (5% above €150,000 in aid) is not as great as the Parliament would have liked, De Castro said. The Parliament has been successful on internal convergence of aid, for fairer distribution of support, he said.
“Very satisfied with this agreement”, rapporteur Luis Capoulas Santos (S&D, Portugal) said he was “proud” that the Parliament, acting as the joint decision-maker for the first time, had been able to make a contribution to a reform welcomed by farming associations. Negotiations were conducted over five successive rotating presidencies, he pointed out. The Parliament had not managed to get all that it wanted “or the reform would have been even better”, in his view. Nevertheless the best possible agreement has been reached in the circumstances, he felt. “This reform has met my objectives: a fairer, more equitable and greener CAP”, he said, referring to the concept of an “active farmer”, degressivity (with the possibility of establishing a ceiling beyond €150,000 if member states so desire), internal convergence of aid, “redistributive” payments, the simplified regime for smallholders and aid for disadvantaged regions.
The agreement, however, was not to the liking of all in the Parliament - far from it. José Bové (Greens/EFA, France) said that it “approved the end of the CAP”. In his eyes, there remains very little that is common in this “inventory of measures that can be tailored to the whims of each of the member states”. He opined that the EU had shown itself incapable of vision for the future and the Parliament “lacked the courage to assume its new political responsibility and vetoing national self-interest”. Under cover of subsidiarity, the member states “will adopt high productivity policies that destroy jobs and the environment”, Bové argued, indicating he will vote against the reform package as a whole.
Paolo De Castro also underlined that, for the first time, the Parliament had succeeded in having changes brought to a number of points agreed by the European Council in February 2013. “Tuesday's decisions will mean that, in future, heads of state and government will think twice before talking in their summits about matters that require co-decision”, referring in particular to degressivity, transferring funds between pillars and co-funding rates for rural development.
De Castro said he was “quite optimistic” on the plenary session vote, though the majorities will differ across the four issues. He is hoping for a large majority in favour of the reform.
Tuesday evening's agreement, the main points of which are set out below, will complement the June agreement. “We cannot go back on Tuesday's agreement. Some colleagues will bring forward amendments but I do not think that that will imperil the whole reform.”
Direct payments
Capping and degressivity. Agreement has been reached on compulsory degressivity and voluntary capping. This means that the amount of direct payment support that an individual farm receives, not including the greening payment, will be reduced by at least 5% from €150,000. In order to take account of employment, salary costs may be deducted before the calculation is made. This reduction will not need to apply to member states which apply the “redistributive payment”, (an additional premium for the first 30 hectares) under which at least 5% of the national envelope is held back for redistribution on the first hectares of all farms. The funds “saved” under this mechanism will stay in the member state or region concerned, and will be transferred to the rural development envelope, to be used without any co-funding requirements.
Capoulas Santos said, with regard to the impact of degressivity, that countries where there are more smallholdings and where the level of payment is very low will be virtually unaffected. However, in countries where farms are larger, the effect will be felt more strongly. From a financial point of view, the impact of the redistributive payment “will be greater than that of 5% degressivity”, he stated.
External Convergence. The national envelopes for direct payments for each member state will be progressively adjusted, such that those where the average payment (in € per hectare) is currently less than 90% of the EU average will see a gradual increase in their envelope (by 1/3 of the difference between their current rate and 90% of the EU average). Moreover, there is the guarantee that every member state will reach a minimum level by 2019. The amounts available for other member states who receive above average amounts will be adjusted accordingly.
Rural Development.
National allocations. Rural Development allocations per member state are included in the basic regulation but may be adjusted by means of a delegated act if technically necessary or provided for by a legislative act.
Co-funding rates. The maximum EU co-funding rates for most payments will be up to 85% in less developed regions, the outermost regions and the smaller Aegean islands, 75% in transition regions, 63% in other transition regions and 53% in other regions, but may be higher for measures supporting knowledge transfer, cooperation, the establishment of producer groups and organisations and young farmers' setting-up grants, as well as for LEADER projects and for environment- and climate-change-related spending under various measures.
Transferring funds between pillars. Member states will be able to transfer up to 15% of their national envelope for direct payments (first Pillar) to their rural development envelope. These amounts will not need to be co-funded. Member states will also have the option of transferring up to 15% of their national envelope for rural development to their direct payments envelope (or up to 25% for those member states that receive less than 90% of the EU average for direct payments).
The 26 June agreement and Tuesday evening's agreement on MFF-related provisions relate to four basic regulations on the common agricultural policy in relation to: direct payments, single common market organisation, rural development and a “horizontal” regulation on CAP funding, management and monitoring (see EUROPE 10877 for the detail of the June agreement). (LC/transl.fl)