Brussels, 30/03/2015 (Agence Europe) - On Thursday 26 March, the European Commission adopted proposals for the financial discipline adjustment rate for the 2015 calendar year (the EU's budget for 2016).
The amount of the reserve for crises in the agricultural sector, to be included in the Commission 2016 draft budget, amounts to €441.6 million in current prices. The first estimates of budget appropriations for direct payments and market-related expenditure showed that the net balance available for European agriculture guidance fund expenditure for 2016 is not likely to be exceeded.
Thus the total reduction resulting from the application of financial discipline amounts to €441.6 million. The percentage of the financial discipline adjustment rate is 1.393041%. It has been calculated taking into account that it is to be applied only to amounts of direct payments per farmer in excess of €2,000 and not in all member states (not applying in Bulgaria, Romania and Croatia, where direct payments are in the process of being introduced). The rate in the 2015 budget was 1.30 %, which led to the creation of a crisis reserve of €433 million. The European Parliament and the Council of Ministers are requested to endorse the draft legislation by the end of June 2015.
The Commission will review its forecasts for market-related expenditure and direct payments when preparing the amending letter to the 2016 draft budget in October 2015, and adopt the adaptation of the adjustment rate, if appropriate by 1 December 2015. (Lionel Changeur)