Brussels, 15.07.2004 (Agence Europe) - Presenting the new proposal of regulation (adopted on Wednesday by the European Commission) on the rural development programmes for 2007-2013, Commissioner Franz Fischler felt that the principle adopted, namely “one fund, one programme, one control”, will guarantee “ a new, more efficient, coherent and visible rural development policy”. He stated that EUR 13.7 billion would be devoted to the strategy between 2007 and 2013.
Mr Fischler pointed out that new account clearance rules had been introduced to allow reimbursement of part of the funds to be ordered when management of the programme does not work or when there is the risk that money will not be well used. In concrete terms, the proposal provides for the audit system to be extended to all aspects of rural development. Commissioner Sandra Kalniete (who works alongside Mr Fischler until November) said the new policy would allow the difficulties of the new Member States to be addressed (rural exodus and enterprise competitiveness).
The proposal provides four areas of intervention:
Improving competitiveness of farming and forestry. Aid would be paid for the development of infrastructure, adaptation of agriculture and forestry, improved food quality, the setting up of young farmers, and support for semi-subsistence farmers in new Member States to become competitive. A minimum of 15% of the national envelope has to be spent on this. The EU co-financing rate is maximum 50% (75% in convergence regions).
Environment and land management. The Commission proposes to finance natural handicap payments to farmers in mountain areas, compensation to farmers whose activities are affected by the protection of Natura 2000 sites, agri-environment measures and animal welfare payments. Agri-environmental measures will remain compulsory. Beneficiaries must respect the EU and national mandatory requirements for agriculture and forestry. Member States will have to spend at least 25% of the national envelope on such action. The EU co-financing rate has a ceiling of 55% (80% in convergence regions).
Furthermore, the Commission reacted to the criticism of the Court of Auditors regarding the lack of precision in the definition of “less-favoured areas”. Currently, there are three definitions: - mountain areas, - other or intermediate less-favoured areas (LFA), - and areas with specific handicaps, for example wetlands. The Court felt that the definition of “intermediate” areas was outdated and pointed to potential overcompensation of handicaps in these zones. The Commission therefore suggests redefinition of the intermediate areas as zones with “low soil productivity and poor climatic conditions”. At the same time, it is proposed that aid to intermediate zones be reduced from 200 to 150 euros per hectare. Rules do not change for the mountain areas or for the areas with natural handicaps.
Improving quality of life and diversification. A minimum of 15% of the national envelope must be devoted to this goal providing aid for diversification toward non-farming activities, the creation of micro-firms, the promotion of tourism and the restoration of villages. The rate of EU co-financing for such measures is limited to a maximum of 50% (75% in the convergence regions).
New “LEADER” approach. Each programme should contain projects of the “LEADER” kind, namely local development strategies set in place by local action groups. A minimum of 7% of national programme funding is reserved for LEADER. Three percent of the overall funding for the period will be kept in reserve and allocated in 2012/2013 to Member States with the best results.