Strasbourg, 10/06/2005 (Agence Europe) - On Tuesday, the European Parliament made changes to a proposal by the European Commission on the new European agricultural fund for rural development (period 2007-2013), adopting, by a large majority, the report by Agnes Schierhuber (EPP-ED, Austria) on this dossier, which is a priority for the Luxembourg Presidency (EUROPE 8960).
The amendments approved will allow the sums needed for nature protection measures ("Natura 2000" program) to be added to the budget for rural development, amongst other things. The EP takes the view that resources of the European Rural Development Fund should be 95.75 billion EUR for the period 2007-2013 (88.75 billion EUR under the Commission's proposal). Out of this sum, at least a 31.3 billion EUR will go to regions which are eligible for the Convergence objective (as proposed by the Commission). The MEPs also call for the minimum budget allocated to each of the three planks to be reviewed downwards. They recommend the following rates: 10% for plank 1 (measures to reinforce the sustainable competitiveness of agriculture and forestry), 20% for plank 2 (management of the rural area) and 8% for plank 3 (improved quality of life and the promotion of diversification). It is worth noting that the Commission had suggested 15% for planks 1 and 3, and 25% for plank 2. The EP agrees with the Commission's plans to provide for a minimum financing rate of 7% for "Leader" actions, but took position against a reserve of 3% to recompense the Member States with the best results in Leader measures. The EP also opposes the reduction of support possibilities in certain fields. For the first plank of intervention, it provides for support for land consolidation to be continued, including land division, and to extend the investment aid planned for improving the production of micro- and small enterprises to medium-sized enterprises. Start-up aid for young farmers rises from 40,000 to 55,000 EUR (as suggested in the Presidency's compromise).
During the debate, the Commission said that it was prepared to accept a reduction of the minimum funding rate. However, it said that a reduction from 15% to 8% for plank 3 was too much, and that this could upset the balance between all of the intervention planks. Several MEPs voiced their concern at planned reductions in rural development credit in the current battle between the Member States on the forthcoming financial perspectives.