The European Commission adopted a proposal on Thursday 30 March on applying financial discipline for the purpose of creating the 2017 agricultural crisis reserve amounting to €459.5 million (2018 budget).
The proposal could see common agricultural policy (CAP) direct payments of more than €2,000 cut by 1.388149%. Croatian farmers would not be affected by this reduction.
The so-called financial discipline proposal has been made each year since the last CAP reform, in 2013. The rate is slightly higher than the 1.353905% that was applied in 2017 (reserve of €450.5 million). The Commission is obliged to table a proposal on financial discipline before the end of March each year. The Council and European Parliament now have until 30 June 2017 to set the rate. Since the crisis reserve was established in 2014, it has never had to be used and the money set aside each year has been made available again to farmers. (Original version in French by Lionel Changeur)