On Tuesday 10 November, negotiators from the European Parliament, the Council of the EU and the European Commission are expected to agree to include an article dealing with payment in 2021 and 2022 of agricultural aid from the EU’s €8 billion Economic Recovery Plan (see EUROPE 12580/9) in the regulation on transitional measures for the Common Agricultural Policy (CAP).
The proposed breakdown of this amount from rural development funds is €2.387 billion (at current prices) in 2021 and €5.683 billion in 2022.
In a trilogue held on Wednesday 4 November, the European Parliament and the Council of the EU agreed on the main points in the compromise on the article, which will be added to the regulation on transitional measures. The regulation will be formally adopted once agreement is reached on the Multiannual Financial Framework (MFF) 2021-2027 and the Economic Recovery Plan.
The European Parliament and Council of the EU negotiators agreed to accept most of the ideas suggested by rapporteur Paolo De Castro (S&D, Italy) involving the rural development recovery instrument: - at least 37% of the funds will have to be earmarked for environmental and climate-related actions (agri-environmental measures, organic production, measures under the Leader initiative, animal welfare); - at least 55% of support should be targeted at sustainable investments in agricultural holdings (including business start-up aid for young farmers).
In addition, a special clause is planned to ensure that EU countries do not spend less on agri-environmental measures than the amounts allocated in the 2014-2020 programming period.
Aid intensity. Investments in holdings currently receive support of 40% from the Community’s rural development budget. The new provisions allow this percentage to be increased to 75%. In addition, the capping for start-up aid for young farmers is being raised from €70 000 to €100 000 under the compromise.
At the Council of the EU’s request, the cofinancing rate can go up to 100% for measures under the Recovery Plan to allow countries facing liquidity difficulties to avoid providing a national contribution.
Finally, up to 4% of the funds may be used by Member States for technical assistance. (Original version in French by Lionel Changeur)