Brussels, 21/01/2014 (Agence Europe) - Some countries, including France, the United Kingdom and Poland, have formally informed the European Commission of their desire to transfer funding between direct aid and market expenditure, on the one hand, and rural development programmes, on the other, the two pillars of the common agricultural policy (CAP). Such transfers are possible this year (requests made in 2014 but cash will be moved in the EU budget for 2015) under the new CAP rules.
Member states had until 31 December 2013 to inform the Commission that they wanted to transfer cash from one pillar to another in their country in 2014. They have until 1 August 2014 to inform the Commission of their transfer plans for the followng years (2015 to 2019, for the budget in the years 2016 to 2020).
Under the new CAP rules, member states have the option of transferring up to 15% of their national envelope for direct payments (first pillar) to their rural development envelope without any co-financing requirement. Member states can also transfer up to 15% of their national rural development envelope to their direct payment envelope. This rises to 25% for member states that receive less than 90% of the EU direct payment average.
Transfers from first to second pillar. The various parts of the United Kingdom have announced transfers of 12% for England, 9.5% for Scotland, 15% for Wales and 0% for Northern Ireland (which had initially planned a 15% shift, but then changed its mind). This makes an overall transfer for the United Kingdom of €382 million in 2014 for the 2015 budget, or 10.8% of the national farm envelope. France will transfer 3% in 2014, that is, €227.6 million moving from the first to the second pillar, and 3.3% in each of the following years. There are suggestions that Germany (4.5%) and the Netherlands will request a transfer next year.
Transfers from second to first pillar. Poland will transfer the maximum amount, 25%, from 2014 to 2020 (in other words €391.9 million). It is also planning to use some of the EU structural funding allocated to it to swell its rural development envelope. Slovakia is planning to transfer 21.3% from 2014 to 2020 (€57.7 million) and Croatia 15% from now until 2020 (€49.8 million in 2014). Malta is planning to make transfers from 2015 (0% in 2014).
It is possible for the figures provided by countries from now until 2020 to be changed using the review clause scheduled for August 2017.
Debate on implementing CAP reforms. The European Commission and Greek Presidency of the Council of the EU are in talks about organising, at either one or other of Agriculture Councils in April and May or at the other meeting of EU28 farm ministers in May, a debate about how countries are planning to implement the CAP reforms. The idea is to get an overview of the various systems being used particularly with regard to direct payments and rural development programmes. (LC/transl.fl)