Brussels, 19/07/2006 (Agence Europe) - Most agriculture ministers from EU Member States have supported the proposal on implementing rules on voluntary modulation, as decided in December 2005 by the European Council. This will mean that a country would have the chance to reduce direct aid by up to a maximum of 20% of their direct aid payments envelope and redirect funds saved in this area to its rural development programme. Nonetheless, a significant number of ministers requested, during their meeting on 18 July in Brussels, more flexibility in implementing this voluntary mechanism which has been added to compulsory modulation (from 5% starting in 2007) decided on in 2003 during reform of the Common Agricultural Policy (CAP).
Addressing the press, Mariann Fischer Boel, Commissioner for agriculture pointed out the lack of enthusiasm underpinning the agreement by the European Council on voluntary modulation and its preference for compulsory modulation. She said that she was prepared to make the system more flexible during the mid term review of the EU budget, due to begin in 2008-09. The president of the Council, Juha Korkeaoja, declared to the press that the Special Agriculture Committee would continue its works in view of an agreement at the Council before the end of the year. The European Parliament is expected to give its opinion in the autumn.
During the Council, a large number of Member States criticised two major elements in the proposal: setting voluntary modulation rates in advance up to 2013 and respect for the minimum spending rates per section as laid down in the new 2007-13 regulation on rural development (10% for improving competitiveness, 25% for environmental and land management and 10% for economic diversification of the zones affected).
David Miliband, the British Secretary of State for rural affairs (of the country that launched the idea of voluntary modulation at the European Council) called for greater flexibility in rules for applying this mechanism and explained that the United Kingdom was the only Member State that was already applying “à la carte” modulation. He also said he wanted the current model to continue without the €500 franchise. The Commission proposes that voluntary modulation be applied in addition to the annual €500 franchise of aid. Sweden and Denmark are also opposed to this franchise. The Commission ruled out the maintaining of this franchise, which is already used in compulsory modulation decided on during CAP reforms.
Setting modulation rates: the Commission would have preferred the obligation of setting voluntary modulation rates in advance up till 2013. Some Member States: Germany, Spain, Belgium, Denmark and Lithuania have asked for rates to be adapted annually or for modality to be introduced later in 2007. The Commission said that it was prepared to introduce a revision clause allowing Member States to adjust their rates, depending on a “bill of health” in the CAP, which should be carried out in 2008 during the mid term review of the EU budget. It is also prepared to revise at the same time, the compulsory modulation rates. Belgium and the United Kingdom want voluntary modulation rates to be differentiated according to the regions but the Commission believes that regionalisation of this kind would pose enormous technical problems (lack of comparative data).
Minimum spending per rural development section: several countries, including France, Belgium and Denmark, said that provisions on respect of the minimum spending thresholds per section is contrary to the agreement of the European Council of December 2005. The Commission indicated that it wanted to follow the same principles as those in the general regulation on rural development (which includes such minimum thresholds. Certain countries like Denmark, have criticised the possibility of national co-funding resulting from voluntary modulation.