Brussels, 13/07/2004 (Agence Europe) - On Wednesday the European Commission is expected to adopt a draft regulation from Commissioner Franz Fischler on the 2007-13 generation of rural development programmes. As well as the three important intervention areas retained proposed at the Salzburg conference (EUROPE 15 November 2003): restructuring of rural zones; land management and diversification of the rural community in its widest sense, the fund is also expected to finance local development strategies and technical assistance actions (Leader type projects). A Community observatory on rural development will be created for assessing EU and Member States' policies and to allow the exchange of technical assistance, expertise and information.
The Commission is proposing that Member States are obliged to spend 60% of their financial envelope for rural development on the three main themes: restructuring, land management and diversification (with a minimum of 20% per theme). Member States will be able to spend the remaining 40%. A minimum spending threshold for expenses will also be set for Leader+ projects. Community co-funding will remain 50% for restructuring actions and rural community diversification (75% for Objective 1 regions for which GDP is less than 75% of the Community average). For land management measures and Leader projects, the levels of co-funding rises to 55% (80% for Objective 1 regions and 85% for extremely remote regions).
In response to criticism from the Court of Auditors last year, the proposal outlines the rules on the definition of the "Less Favoured Areas". The Commission is proposing an increase in aid for the "Less Favoured Regions with Natural Handicaps". The Commission is, however, making the criteria for Less Favoured Regions more binding while leaving it up to Member States to designate regions that fall into this category.
The Commission is also proposing to pursue funding of measures specially created for new Member States: restructuring of semi-subsistance farms (EUR 1500 maximum over five years); respect of standards (aid degressivity for five years); the setting up of producers' groups. In connection with the agri-environmental measures (land management), the Commission is proposing to add bonuses for animal welfare.
On the delicate issue of fund distribution between Member States, the Commission will be deciding on allocating certain proportions to Objective 1 regions and in respect of objective criteria. The Commission has to present a proposal on financial rules on this new fund. Aid for rural development aid will increase over seven years, mainly due to the introduction of direct aid modulation (during CAP reform in June 2003).
The Commission is planning on more than EUR 88 bn from 2007-13 for rural development (2004 prices). The new fund will consist of:
- EAGGF, Guarantee Section (which is currently a source of funding for this policy): EU spending for the EU 25 will be maintained at the level forecast for 2006, completed with aid for Romania and Bulgaria;
- EAGGF, Orientation Section (which is currently part of cohesion policy: aid will be calculated on the traditional percentage of the "Orientation Section" for structural funds spending in the "Objective 1" regions, as well as aid for Bulgaria and Romania. Half of the Initiative Leader funds will also be added. EUR 36 bn will therefore be transferred from regional policy to the new rural development funds.