Bulgaria, supported by several EU Member States, called on Tuesday 26 May for a temporary derogation from the principle of automatic decommitment of agricultural funds (“N+2”), citing the strong economic and geopolitical pressures weighing on the implementation of CAP strategic plans.
During the ‘Agriculture’ Council, Bulgaria, backed notably by Greece, Hungary, Romania, Slovakia and the Czech Republic, warned of an increased risk of decommitment of appropriations from the European Agricultural Fund for Rural Development (EAFRD). This risk stems from surging energy and input costs, combined with declining agricultural prices (see EUROPE 13713/16).
Farmers, it was argued, are facing a ‘cost-price squeeze’ that is stifling investment and compromising their ability to adhere to timetables; this could mechanically push payments back to the following financial year. Consequently, Bulgaria is proposing a general derogation from the N+2 rule for the 2026 calendar year, applicable to all Member States, and is calling on the Commission to amend the relevant regulation to introduce a temporary exception.
Greece, Romania and Italy argued for greater flexibility, going so far as to propose the generalised application of an N+3 rule across the entire 2023-2027 period, mirroring the arrangements currently in place for cohesion policy funds. France, meanwhile, warned of the risk of a ‘blank year’ for agricultural investments in 2027, due to insufficient time remaining at the end of the programming period, and requested a three-year payment window for commitments entered into that year.
Lithuania, Croatia and Latvia also supported the idea of a derogation or an extension of the deadlines.
In response, the European Commission reiterated that the timely implementation of common agricultural policy (CAP) strategic plans is first and foremost the responsibility of national authorities. However, Commissioner Christophe Hansen acknowledged that certain factors were beyond the control of beneficiaries and administrations, noting that the current legal framework already allows derogations from N+2, notably in cases of force majeure. He also highlighted the flexibilities announced under the Fertilizer Action Plan, which allow for the redeployment of unused funds or funds at risk of decommitment to support farmers’ cash flow.
Link to Bulgarian note: https://aeur.eu/f/m22 (Original version in French by Lionel Changeur)