Luxembourg, 20/06/2005 (Agence Europe) - On Monday evening in Luxembourg, the Agriculture ministers of the Member States of the EU seemed to be moving towards an agreement on the proposed new European agricultural fund for rural development. The resources available for this fund will be 88.75 billion EUR, according to the European Commission's initial proposal. These sums will be adapted depending on the results of negotiations on the financial perspectives 2007-2013, which broke down at the European Council.
The initial compromise of the Luxembourg Presidency (which was presented on Monday morning) went down reasonably well with the Member States, although negotiations were continuing in the evening. This text provides for a slight reduction (compared to the initial proposal) of the minimum rate of taxable expenditure depending on the various axes of intervention. Community financial participation towards each of the three objectives covers at least 10% of the total contribution of the Fund to the programme for planks 1 (improving competitiveness) and 3 (standards of living in rural areas and the diversification of the rural economy) and 25% for plank 2 (improving the environment and the rural ), according to the initial proposal. As for the programmes for the French overseas departments, the minimum Community financial participation for plank 2 will be 20%, according to the Presidency's text. A sum corresponding to at least 7% of the total contribution of the Fund to the programme is reserved for plank 4, known as "Leader" (local development strategies for rural areas, implemented by local action groups). A derogation will be provided for the new Member Estates, allowing an average of 3.5% minimum of the total contribution of the Fund to be reserved for this Leader plank. The Presidency did away with the reserve of funds proposed by the Commission to reward the Member States returning the best results in their "Leader" actions.
On the various rural development measures, the compromise text provides, for intervention under plank 1 (improving competitiveness): -aid of 55,000 EUR maximum as start-up aid for young farmers (aged less than 40 and setting themselves up for the first time). The Commission had proposed 40,000 EUR; -early retirement aid for farmers (18,000 EUR per retiring farmer per year, 4000 EUR for farm workers aged at least 55 years (the total duration of aid should not exceed 15 years for the retiring farmer or the farm worker); -aid to modernise holdings; -aid to increase the added value of agricultural and forestry products (limited aid to micro-enterprises and small and medium-sized enterprises); -aid of 3000 EUR per holding for farmers to take part in food quality regimes.
For plank 2 (environment and rural areas), planned aid relates to: -payments intended to compensate farmers for the natural disadvantages of mountainous regions; -Natura 2000 payments (500 or 200 EUR per hectare for utilised agricultural area); -agro-environmental payments (between 200 and 900 EUR per hectare); -payments in favour of animal well-being (500 EUR per unit for large animals); -aid for the reforestation of agricultural land (under the Presidency's compromise, the intensity of this aid will be 65% outside less-favoured areas, 75% in less-favoured areas and 85% in extremely remote regions).
Moving on to plank 3 (diversification), measures concerning diversification to non-agricultural activities, company start-up aid, the promotion of tourism and related activities, and promoting rural heritage.
On the new definition of less-favoured areas, a subject on which the Member States failed to find any common ground, the compromise provides for current provisions to be kept in place until 2010.