Brussels, 26/03/2014 (Agence Europe) - On Friday 21 March, the European Commission proposed a 1.3% reduction in direct agricultural payments for 2014 to finance a crisis reserve in the agriculture budget 2015. It is not planning any additional cuts for the expected CAP (common agriculture policy) budget over-run next year.
As part of preparations for the draft Community budget 2015, the European Commission proposed to the Council and Parliament of the EU a 1.3% reduction in direct aid paid to farmers in 2014 to build up a crisis reserve in the 2015 agriculture budget. This reserve, which is provided for by the CAP reform, should be €433 million.
Financial discipline. In line with the rules on financial discipline, the crisis reserve should be funded by a reduction of direct payments in 2014, which will feed into the 2015 credits. This cut will apply only beyond €2,000 of aid per holding. Bulgaria, Romania and Croatia will be exempt from this cut in aid, because these countries are still in the aid phase-in stage.
However, the Commission does not forecast any over-run for the first pillar of the CAP next year and is therefore not recommending any additional cuts to payments, over and above the reductions to be used to feed into the crisis reserve. Expenditure under the first pillar of the CAP have been estimated at €44.190 billion for next year.
Under the rules, the Council and the European Parliament must take position on this proposal by 30 June, or the decision will be taken by the Commission. However, the Commission can still review the level of the reduction decided upon before 1 December, on the basis of the most recent expenditure forecasts for direct payments and market payments, which will be used as a basis for the adjustment of the draft Community budget 2015, which is usually carried out in October. (LC)