Brussels, 14/03/2007 (Agence Europe) - On Wednesday 14 March, the European Parliament accepted the compromise presented to it the same day by the German farm minister, Horst Seehofer, on voluntary modulation of direct aid payments, the controversial subject of the European Council agreement of December 2005 on the financial framework for 2007-2013. Lutz Goepel (CDU), who is rapporteur on this issue, welcomes the “great success for agriculture” and trusts that the EP's position will be taken into account in negotiation on revision of the EU budget in 2008-2009.
The Commission's initial proposal will therefore be replaced by a regulation to be unanimously adopted by the Council, implementing optional modulation in two countries only - the UK and Portugal - that hope to use it. In favour of this arrangement, the EP has undertaken to release during the budgets committee (on 21 or 22 March) the 20% share of 2007 credits for rural development that it had placed in reserve in January to obtain rejection of the initial proposal. The compromise of the German presidency offers an “à la carte” system in favour of the countries interested. The UK may continue to use its own voluntary modulation system according to regional criteria and without exemption for the €5000 in direct aid received per farm (franchise foreseen for compulsory modulation of payments in force since 2005). Voluntary modulation may also be used in the member states where Community funding for rural development is paid without national co-funding, namely Portugal. The compromise gives up the idea (slammed by many countries) of establishing a link between the possible rise in compulsory modulation and an equivalent reduction in voluntary modulation. (lc)