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Image header Agence Europe
Europe Daily Bulletin No. 9395
Contents Publication in full By article 17 / 33
GENERAL NEWS / (eu) eu/agriculture

Adoption of rules on voluntary modulation for aid

Brussels, 27/03/2007 (Agence Europe) - On Tuesday 27 March, the Council of Ministers of the EU adopted without debate, the regulation limiting voluntary modulation of aid to just two member states, the United Kingdom and Portugal (EUROPE 9391). Voluntary modulation, which completes compulsory modulation (currently standing at 5%), allows these two countries to deduct up to 20% of agricultural aid and transfer it to rural development programmes. Modulation will be reviewed during the 2008 CAP bill of health, following the European Commission's report. In a declaration, the United Kingdom made a commitment to applying modulation at a lower rate than the 20% ceiling in four other regions of the country (England, Northern Ireland, Scotland and Wales). In the case of England, 80% of funding made available will go to Section 2 (agro-environmental measures). Latvia, which abstained from the vote, pointed out that it was not satisfied with the principle of voluntary modulation or the principle of compulsory modulation. This country is afraid of a growing divide between member states. (lc)

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