Brussels, 02/10/2013 (Agence Europe) - The European Commission is going to apply a €2,000 ceiling below which financial discipline will not apply this year. This €2000 threshold was included in the political agreement of 26 June on Common Agricultural Policy (CAP) reform.
The Commission is expected to adopt by written procedure next week the application regulation on the reduction rates in direct payments for 2013, in compliance with financial discipline. It will set the €2,000 threshold below which this reduction will not apply. In March, the Commission proposed a €5,000 franchise.
Financial discipline is aimed at preventing the CAP budgetary platform being overshot and will apply to the remaining amount to pay after 50% of the advance direct payment has been made on 16 October.
Last March, the Commission suggested reducing aid rates in 2013 by 4.98% (more than €5,000). With the €2,000 franchise, reduction in aid is expected to stand at 4%. This involves, however, an indicative figure because the final rates will depend on the amending letter expected in the middle of this month on estimated agricultural costs for 2014. An agreement at the Council will be required for the final reduction amount. (LC/transl.fl)