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COUNCIL OFBrussels, 19 October 2011
THE EUROPEAN UNION
15426/1/11 REV 1 (en,fr,de)
Interinstitutional File:
2011/0288 (COD)
AGRI 684 AGRISTR 58 AGRIORG 181 AGRIFIN 92 CODEC 1666
PROPOSAL
No Cion doc.:
Subject: Proposal for a Regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy
Delegations will find attached a new version of document COM(2011) 628.
________________________
Encl.: COM(2011) 628 final/2
EUROPEAN COMMISSION
Brussels, 19.10.2011 COM(2011) 628 final/2
2011/0288 (COD)
CORRIGENDUM: Annule et remplace le document COM(2011) 628 final du 12 octobre 2011 Concerne les versions FR/EN/DE (table des matičres)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on the financing, management and monitoring of the common agricultural policy
{SEC(2011) 1153} {SEC(2011) 1154}
EXPLANATORY MEMORANDUM
1. CONTEXT OF THE PROPOSAL
The Commission proposal for the Multiannual Financial Framework (MFF) for 2014-2020 (the MFF proposal)
1 sets the budgetary framework and main orientations for the Common
Agricultural Policy (CAP). On this basis, the Commission presents a set of regulations laying down the legislative framework for the CAP in the period 2014-2020, together with an impact assessment of alternative scenarios for the evolution of the policy.
The current reform proposals are based on the Communication on the CAP towards 20202 that
outlined broad policy options in order to respond to the future challenges for agriculture and rural areas and to meet the objectives set for the CAP, namely 1) viable food production; 2) sustainable management of natural resources and climate action; and 3) balanced territorial development. The reform orientations in the Communication have since been broadly supported both in the inter-institutional debate
3 and in the stakeholder consultation that took
place in the framework of the impact assessment.
A common theme that has emerged throughout this process is the need to promote resource efficiency with a view to smart, sustainable and inclusive growth for EU agriculture and rural areas in line with the Europe 2020 strategy, keeping the structure of the CAP around two pillars that use complementary instruments in pursuit of the same objectives. Pillar I covers direct payments and market measures providing a basic annual income support to EU farmers and support in case of specific market disturbances, while Pillar II covers rural development where Member States draw up and co-finance multiannual programmes under a common framework.
4
Through successive reforms the CAP has increased market orientation for agriculture while providing income support to producers, improved the integration of environmental requirements and reinforced support for rural development as an integrated policy for the development of rural areas across the EU. However, the same reform process has raised demands for a better distribution of support among and within Member States, as well as calls for a better targeting of measures aiming at addressing environmental challenges and better addressing increased market volatility.
The pressure on agricultural income is expected to continue as farmers are facing more risks, a slowdown in productivity and a margin squeeze due to rising input prices; there is therefore a need to maintain income support and to reinforce instruments to better manage risks and respond to crisis situations. A strong agriculture is vital for the EU food industry and global food security.
At the same time, agriculture and rural areas are being called upon to step up their efforts to meet the ambitious climate and energy targets and biodiversity strategy that are part of the Europe 2020 agenda. Farmers, who are together with foresters the main land managers, will need to be supported in adopting and maintaining farming systems and practices that are particularly favourable to environmental and climate objectives because market prices do not reflect the provision of such public goods. It will also be essential to best harness the diverse potential of rural areas and thus contribute to inclusive growth and cohesion.
The future CAP will not, therefore, be a policy that caters only for a small, albeit essential, part of the EU economy, but also a policy of strategic importance for food security, the environment and territorial balance. Therein lies the EU added value of a truly common policy that makes the most efficient use of limited budgetary resources in maintaining a sustainable agriculture throughout the EU, addressing important cross-border issues such as climate change and reinforcing solidarity among Member States, while also allowing flexibility in implementation to cater for local needs.
The framework set out in the MFF proposal foresees that the CAP should maintain its two- pillar structure with the budget for each pillar maintained in nominal terms at its 2013 level and with a clear focus on delivering results on the key EU priorities. Direct payments should promote sustainable production by assigning 30 % of their budgetary envelope to mandatory measures that are beneficial to climate and the environment. Payment levels should progressively converge and payments to large beneficiaries be subject to progressive capping. Rural development should be included in a Common Strategic Framework with other EU shared management funds with a reinforced outcome-orientated approach and subject to clearer, improved ex-ante conditionalities. Finally, on market measures the financing of the CAP should be reinforced with two instruments outside the MFF: 1) an emergency reserve to react to crisis situations; and 2) the extension of the scope of the European Globalization Adjustment Fund.
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-Proposal for a Regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy ('the horizontal regulation');
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-Proposal for a Council regulation determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products;
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-Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013;
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-Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1234/2007 as regards the regime of the single payment scheme and support to vine-growers.
The rural development regulation builds on the proposal presented by the Commission on 6 October 2011 that sets out common rules for all funds operating under a Common Strategic Framework
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5.A regulation will follow on the scheme for most deprived persons, for which
funding is now placed under a different heading of the MFF.
In addition, new rules on the publication of information on beneficiaries taking account of the objections expressed by the Court of Justice of the European Union are also under preparation with a view to finding the most appropriate way to reconcile beneficiaries' right to protection of personal data with the principle of transparency.
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2.RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND
IMPACT ASSESSMENT
On the basis of the evaluation of the current policy framework and an analysis of future challenges and needs, the impact assessment assesses and compares the impact of three alternative scenarios. This is the result of a long process started in April 2010 and steered by an inter-service group that brought together extensive quantitative and qualitative analysis, including setting a baseline in the form of medium-term projections for agricultural markets and income up to 2020 and modelling the impact of the different policy scenarios on the economics of the sector.
the environment with a progressive phasing out of direct payments, assuming that productive capacity can be maintained without support and that the socio-economic needs of rural areas can be served by other policies.
Against the background of the economic crisis and the pressure on public finances, to which the EU has responded with the Europe 2020 strategy and the MFF proposal, all three scenarios attach different weight to each of the three policy objectives of the future CAP which aims at a more competitive and sustainable agriculture in vibrant rural areas. With a view to a better alignment with the Europe 2020 strategy, notably in terms of resource efficiency, it will be increasingly essential to improve agricultural productivity through research, knowledge transfer and promoting cooperation and innovation (including through the European Innovation Partnership on agricultural productivity and sustainability). Whereas EU agricultural policy does not any more operate within a trade distorting policy environment, additional pressure on the sector is expected from further liberalization, notably in the framework of the DDA or the FTA with Mercosur.
The three policy scenarios were drawn up taking into account the preferences expressed in the consultation which was conducted in the context of the impact assessment. Interested parties were invited to submit contributions between 23.11.2010 and 25.1.2011 and an advisory committee was organised on 12.1.2011. The main points are summarized below:
6
There is broad agreement among stakeholders on the need for a strong CAP based on a
two-pillar-structure in order to address the challenges of food security, sustainable management of natural resources and territorial development.
Most respondents find that the CAP should play a role in stabilizing markets and prices.
Stakeholders have diverse opinions concerning the targeting of support (especially
redistribution of direct aid and capping payments).
There is agreement that both pillars can play an important role in stepping up climate
action and increasing environmental performance for the benefit of EU society. Whereas many farmers believe that this already takes place today, the wider public argues that Pillar
I payments can be more efficiently used.
limited scope for market intervention. Furthermore, it would come at a significant social and environmental cost as the less competitive areas would face a considerable income loss and environmental degradation, since the policy would lose the leverage of direct payments coupled with the cross compliance requirements.
At the other end of the spectrum, the adjustment scenario would best allow for policy continuity with limited but tangible improvements both in agricultural competitiveness and environmental performance. There are however serious doubts as to whether this scenario could adequately address the important climate and environmental challenges of the future, which also underpin the long-term sustainability of agriculture.
The integration scenario breaks new ground with enhanced targeting and greening of direct payments. The analysis shows that greening is possible at a reasonable cost to farmers although some administrative burden cannot be avoided. Similarly, a new impetus in rural development is possible provided that the new possibilities are efficiently used by Member States and regions and that the common strategic framework with the other EU funds does not remove synergies with Pillar I or weaken rural development's distinctive strengths. If the right balance is struck, this scenario would best address the long term sustainability of agriculture and rural areas.
On this basis the impact assessment concludes that the integration scenario is the most balanced in progressively aligning the CAP with the EU's strategic objectives and this balance is also found in the implementation of the different elements in the legislative proposals. It will also be essential to develop an evaluation framework to measure the performance of the CAP with a common set of indicators linked to policy objectives.
Simplification has been an important consideration throughout the process and should be enhanced in a variety of ways, for instance in the streamlining of cross compliance and market instruments, or the design of the small farmers scheme. In addition, the greening of direct payments should be designed in such a way as to minimize administrative burden including the costs of controls.
security, the environment and territorial balance, the CAP remains a policy of strategic importance to ensure the most effective response to the policy challenges and the most efficient use of budgetary resources. In addition, it is proposed to maintain the current structure of instruments in two pillars where Member States have more leeway to tailor solutions to their local specificities and also co-finance Pillar II. The new European Innovation Partnership and risk management toolkit are also placed within Pillar II. At the same time the policy will be better aligned with the Europe 2020 strategy (including a common framework with other EU funds) and a number of improvements and simplification elements introduced. Finally, the analysis carried out in the framework of the impact assessment clearly shows the cost of no action in terms of negative economic, environmental and social consequences.
In addition to financing provisions, the horizontal regulation brings together relevant rules for all instruments, such as provisions on cross compliance, checks and penalties. As a result, the regulation now lays down rules on financing, the farm advisory system, management and control systems, cross compliance and clearance of accounts.
The aim is to adjust financing rules on the basis of experience to date, to streamline and enhance cross compliance and to strengthen the farm advisory system.
In relation to cross compliance in particular, the current rules were reviewed with a view to simplification, strengthening the climate change dimension within GAEC and ensuring consistency with the provisions of greening and of relevant environmental measures offered under rural development.
Finally, the regulation provides the basis for a common monitoring and evaluation framework to measure the performance of the CAP during the next period.
This regulation includes various simplification elements. First of all, it regroups all cross- compliance rules in one single legislative act, thereby improving their readability.
Furthermore, it foresees reducing the number of paying agencies and reinforcing the role of the coordinating body. This will render the system more transparent and less burdensome for both national administrations and the Commission services. There will be fewer accreditations and declarations of assurance required at Member State level and the number of Commission audits can be reduced.
The Pillar I and Pillar II funding is complemented by additional funding of EUR 17.1 billion consisting of EUR 5.1 billion for research and innovation, EUR 2.5 billion for food safety and EUR 2.8 billion for food support for the most deprived persons in other headings of the MFF, as well as of EUR 3.9 billion in a new reserve for crises in the agricultural sector and up to EUR 2.8 billion in the European Globalization Adjustment Fund outside the MFF, thus bringing the total budget to EUR 435.6 billion over the 2014-2020 period.
As regards distribution of support among Member States, it is proposed that all Member States with direct payments below 90% of the EU average will see one third of this gap closed. The national ceilings in the direct payments regulation are calculated on this basis.
The distribution of rural development support is based on objective criteria linked to the policy objectives taking into account the current distribution. As is the case today, less developed regions should continue to benefit from higher co-financing rates, which will also apply to certain measures such as knowledge transfer, producer groups, cooperation and Leader.
Some flexibility for transfers between pillars is introduced (up to 5% of direct payments): from Pillar I to Pillar II to allow Member States to reinforce their rural development policy, and from Pillar II to Pillar I for those Member States where the level of direct payments remains below 90% of the EU average.
Details on the financial impact of the CAP reform proposals are set out in the financial statement accompanying the proposals.
2011/0288 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on the financing, management and monitoring of the common agricultural policy
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) thereof,
Having regard to the proposal from the European Commission7,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee8,
Having consulted the European Data Protection Supervisor9,
Acting in accordance with the ordinary legislative procedure,
Whereas:
(1) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on "The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future"
10 set out potential challenges, objectives and orientations for the
Common Agricultural Policy (CAP) after 2013. In the light of the debate on that Communication, the CAP should be reformed with effect from 1 January 2014. That reform should cover all the main instruments of the CAP, including Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy
(2) Since the objectives of this Regulation cannot be achieved sufficiently by Member States given the links between it and the other instruments of the CAP, the limits on the financial resources of the Member States in an enlarged Union, and can therefore be better achieved at Union level through the multiannual guarantee of Union finance and by concentrating on its priorities, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5(3) of the Treaty on European Union. In accordance with the principle of proportionality as set out in Article 5(4) of that Treaty, this Regulation does not go beyond what is necessary in order to achieve that objective.
(3) In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of the accreditation of the paying agencies and coordinating bodies, the content of the Farm Advisory System, the measures to be financed by Union budget under public intervention and the valuation of the operations in connection with public intervention, the reductions and suspension of the reimbursements to the Member States, the compensation between expenditure and revenues under the Funds, the recovery of debts, the penalties applied to beneficiaries in case of non-compliance with the eligibility conditions, in respect of rules on securities, on the functioning of the integrated administration and control system, of the measures excluded from the scrutiny of transactions, the penalties applied under cross compliance, the rules on maintenance of permanent grassland, the rules on the operative event and the exchange rate to be used by the Member States not using the euro and in respect of the content of the common evaluation framework of the measures adopted under the CAP. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.
(4) The CAP consists of a series of measures, some of which relate to rural development.
It is important that financing be provided for those measures in order to contribute to the achievement of the objectives of the CAP. Since the measures have certain elements in common but do also differ in a number of respects, their financing should be combined in the same set of provisions which allows for different treatment where necessary. Regulation (EC) No 1290/2005 created two European agricultural funds, namely the European Agricultural Guarantee Fund (hereinafter `EAGF'), and the European Agricultural Fund for Rural Development (hereinafter `EAFRD'). Those two Funds should be maintained.
(6) The Union budget should finance CAP expenditure, including that on rural development, through both Funds either directly or in the context of shared management with the Member States. The types of measures that can be financed using those Funds should be specified.
(7) Provision should be made for the accreditation of paying agencies by Member States, for the establishment of procedures for obtaining the requisite management declarations of assurance, and the certification of management and monitoring systems, as well as the certification of annual accounts by independent bodies. Moreover, in order to ensure the transparency of national checks, in particular as regards authorisation, validation and payment procedures, to reduce the administrative and audit burden for the Commission services as well as for the Member States where accreditation of each individual paying agency is required, the number of authorities and bodies to which those responsibilities are delegated should be restricted taking account of the constitutional arrangements of each Member State.
(8) Where a Member State accredits more than one paying agency, it is important that it designates a single coordinating body to ensure consistency in the management of the funds, to provide liaison between the Commission and the various accredited paying agencies and to ensure that the information requested by the Commission concerning the operations of several paying agencies is made rapidly available. The coordinating body should also be responsible for ensuring that remedial action is taken and that the Commission is kept informed of the follow-up and it should ensure homogeneous application of common rules and standards.
(9) Only paying agencies accredited by the Member States offer reasonable assurance that the necessary checks have been carried out before granting Union aid to beneficiaries.
It should therefore be explicitly laid down that only expenditure effected by accredited paying agencies can be reimbursed from the Union budget.
(10) In order to help beneficiaries to become more aware of the relationship between agricultural practices and management of farms on the one hand, and standards relating to the environment, climate change, good agricultural condition of land, food safety, public health, animal health, plant health and animal welfare on the other, it is necessary that Member States establish a comprehensive farm advisory system offering advice to beneficiaries. That farm advisory system should in any way not affect the obligation and responsibility of beneficiaries to respect those standards. Also a clear separation between advice and checks should be ensured by the Member States.
innovation as well as the sustainable development of the economical activity of the small farms.
(12) Entry into the farm advisory system should be on a voluntary basis for beneficiaries.
All beneficiaries, even if not receiving support under the CAP, should be allowed to participate in the system. However priority criteria may be set by the Member States. Due to the nature of the system, it is appropriate for the information obtained in the course of the advisory activity to be treated as confidential, except in case of serious infringements of Union or national law. In order to ensure the efficiency of the system, advisors should be suitably qualified and regularly trained.
(13) The financial resources required to cover the expenditure effected by the accredited paying agencies in respect of the EAGF, are to be made available to the Member States by the Commission in the form of reimbursements against the booking of the expenditure effected by those agencies. Until such reimbursements, in the form of monthly payments, have been paid, financial resources are to be mobilised by the Member States in accordance with the needs of their accredited paying agencies. The personnel costs and the administrative costs of the Member States and the beneficiaries involved in the execution of the CAP should be borne by themselves.
(14) The use of the agro-meteorological system and the acquisition and improvement of satellite images should provide the Commission with the means to manage the agricultural markets and to facilitate the monitoring of agricultural expenditure.
(15) In the context of respecting budget discipline, it is necessary to define the annual ceiling for the expenditure financed by the EAGF by taking into account the maximum amounts laid down for that Fund under the multiannual financial framework provided for in the Council Regulation (EU) No xxx/xxx of [...] laying down the multiannual financial framework for the years 2014-2020
15 [MFF] .
(16) Budget discipline also requires that the annual ceiling for expenditure financed by the EAGF to be respected under all circumstances and at all stages of the budget procedure and the execution of the budget. This requires that the national ceiling for the direct payments per Member State set out in Regulation (EU) No xxx/xxx[DP] be regarded as a financial ceiling for such direct payments for the Member State concerned and that the reimbursement of those payments remain within this financial ceiling. Furthermore, budget discipline requires that all acts proposed by the Commission or adopted by the legislator or by the Commission under the CAP and financed by the EAGF comply with the annual ceiling for the expenditure financed by that Fund.
of direct support is adjusted, should be maintained. In the same context, it is necessary to authorise the Commission to set those adjustments where the Council do not fix them before 30 June of the calendar year in respect of which they apply.
(18) The measures taken to determine the financial contribution from the EAGF and the EAFRD in respect of the calculation of financial ceilings do not affect the powers of the budgetary authority designated by the Treaty. Those measures should therefore be based on the reference amounts fixed in accordance with the Interinstitutional Agreement of [...] between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management
17 and
Regulation (EU) No xxx/xxx [MFF] .
(19) Budget discipline also demands a continuous examination of the medium-term budget situation. The Commission, when submitting the draft budget for a given year, should therefore present its forecasts and analyses to the European Parliament and the Council and propose, if necessary, appropriate measures to the legislator. Furthermore, the Commission should make full use of its management powers at all times to ensure compliance with the annual ceiling and, if necessary, propose appropriate measures to the European Parliament and to the Council or to the Council to redress the budget situation. If, at the end of a budget year, the annual ceiling cannot be complied with as a result of the reimbursements requested by the Member States, the Commission should be able to take measures allowing provisional distribution of the available budget among the Member States in proportion to their requests for reimbursement not yet paid, as well as compliance with the ceiling fixed for the year concerned. Payments for that year should be charged to the following budget year and the total amount of Union financing per Member State should be definitively established, as should compensation between Member States in order to comply with the established amount.
(20) When implementing the budget, the Commission should operate a monthly early- warning and monitoring system for agricultural expenditure, so that, if there is a risk of the annual ceiling being exceeded, the Commission may at the earliest opportunity take the appropriate measures under the management powers at its disposal and propose other measures if those measures appear to be insufficient. A periodic report by the Commission to the European Parliament and the Council should compare the evolution of the expenditure effected in relation to the profiles so far and give an assessment of the foreseeable implementation for the remainder of the budget year.
and the Cohesion Fund and repealing Regulation (EC) No 1083/200618 provides rules
applying to the financial support from the Funds covered by that Regulation, including the EAFRD. Those provisions also include certain rules on the eligibility of expenditure, on financial management as well as the management and control systems.
As regards the financial management of the EAFRD, for sake of legal clarity and coherence between the agricultural Funds, reference should be made to the relevant provisions on the budget commitments, payment deadlines and decommitment of Regulation (EU) No CR/xxx.
(23) The rural development programmes are financed from the Union budget on the basis of commitments in annual instalments. Member States should be able to draw on the Union funds provided for as soon as they begin the programmes. A suitably restricted prefinancing system ensuring a steady flow of funds so that payments to beneficiaries under the programmes are made at the appropriate time is therefore needed.
(24) Prefinancing apart, a distinction should be drawn between payments by the Commission to the accredited paying agencies. Interim payments and payment of balances, and rules on their payment should be set. The automatic decommitment rule should help speed up execution of programmes and contribute to sound financial management.
(25) Union aid should be paid to beneficiaries in good time so that they may use it efficiently. A failure by the Member States to comply with the payment deadlines laid down in Union legislation could create serious difficulties for the beneficiaries and could jeopardise the Union's yearly budgeting. Therefore, expenditure made without respecting deadlines for payments should be excluded from Union financing. In order to respect the principle of proportionality, the Commission should be able to provide for exceptions to this general rule. This principle, laid down in Regulation (EC) No 1290/2005 should be maintained and apply to both the EAGF and the EAFRD. If Member States pay late, they should add interests on the principal amount at their own cost to compensate the beneficiaries. Such a provision could create an incentive to Member States to better respect payment deadlines, and could give more assurance to beneficiaries to be paid in time, or at least to be compensated in case of late payment.
for reducing or suspending payments in case of significant and persistent deficiencies in national control systems should be extended by including negligence in the recovery of irregular payments, while maintaining the two-step procedure for such reductions or suspensions.
(27) Sectoral agricultural legislation requires Member States to send information on the numbers of checks carried out and their outcome within specified deadlines. Those control statistics are used to determine the level of error at Member State level and, more generally, for the purposes of checking the management of the EAGF and the EAFRD. They are an important source for the Commission to satisfy itself as to the correct management of funds and are an essential element for the annual declaration of assurance. Given the vital nature of this statistical information and in order to ensure that Member States respect their obligation to send it in time, it is necessary to provide a deterrent to late provision of the data required in a manner proportionate to the extent of the data deficit. Therefore, provisions should be put in place whereby the Commission can suspend part of the monthly or interim payments for which the relevant statistical information has not been sent in time.
(28) In order to allow reuse of EAGF and EAFRD funds, rules are needed on the assignment of specific sums. The list contained in Regulation (EC) No 1290/2005 should be completed with the sums relating to late payments and to the clearance of accounts as regards expenditure under the EAGF. Also Council Regulation (EEC) No 352/78 of 20 February 1978 on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited
19 laid
down rules on the destinations of the sums resulting from forfeited securities. Those provisions should be harmonised and merged with the existing provisions on assigned revenue. Regulation (EEC) No 352/78 should therefore be repealed.
(29) Council Regulation (EC) No 814/2000 of 17 April 2000 on information measures relating to the common agricultural policy
20 and its implementing rules define the
information measures relating to the CAP which may be financed under point (c) of Article 5 of Regulation (EC) No 1290/2005. Regulation (EC) No 814/2000 contains a list of those measures and their objectives and fixes the rules of their financing and the implementation of the corresponding projects. Since the adoption of that Regulation, rules have been adopted by Regulation (EU) No xxx/xxx[FR] as regards grants and procurement. Those rules should apply also to the information measures under the CAP. For reasons of simplification and coherence, Regulation (EC) No 814/2000 should be repealed while maintaining the specific provisions relating to the objectives and types of measures to be financed. Those measures should also take into account the need to ensure more efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission and to ensure that the Union's political priorities are communicated effectively. Therefore they should also cover information measures relevant to CAP in the framework of the corporate communication as referred to in the Communication from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions: A Budget for Europe 2020 - Part II: Policy fiches
21.
(30) The financing of measures and operations under the CAP will in part involve shared management. To ensure that Union funds are soundly managed, the Commission should perform checks on the management of the Funds by the Member State authorities responsible for making payments. It is appropriate to define the nature of the checks to be made by the Commission, to specify the terms of its responsibilities for implementing the budget and to clarify the Member States' cooperation obligations.
(31) In order to allow the Commission to fulfil its obligation to check the existence and proper functioning of management and inspection systems for Union expenditure in the Member States, provision should be made, irrespective of the inspection carried out by Member States themselves, for checks by persons delegated by the Commission who should be able to request assistance from the Member States in their work.
(32) Information technology needs to be used as fully as possible for producing the information to be sent to the Commission. When carrying out checks, the Commission should have full and immediate access to expenditure information recorded both in paper form and in electronic files.
(33) In order to establish the financial relationship between the accredited paying agencies and the Union budget, the Commission should clear the accounts of these paying agencies annually. The clearance of accounts decision should cover the completeness, accuracy and veracity of the accounts but not the conformity of the expenditure with Union legislation.
(34) The Commission, which is responsible for the proper application of Union law under Article 17 of the Treaty on European Union, should decide whether the expenditure incurred by the Member States complies with Union legislation. Member States should be given the right to justify their decisions to make payments and should have recourse to conciliation where there is no common agreement between them and the Commission. In order to give Member States legal and financial assurances as to expenditure effected in the past, a maximum period should be set for the Commission to decide which financial consequences should follow from non-compliance. The conformity clearance procedure should be , as regards EAFRD, in line with the provisions on the financial corrections by the Commission as laid down in Part 2 of Regulation (EU) No CR/xxx .
charge the full sum to the Member State concerned. Same rules should apply to the EAFRD, keeping however the specificity that sums recovered or cancelled following irregularities should remain available to the approved rural development programmes of the Member State concerned as those sums have been allocated to that Member State. Provisions on the reporting obligation for Member States should be set also.
(36) The recovery procedures used by the Member States may have the effect of delaying recovery for a number of years, with no guarantee that the outcome will actually be successful. The cost of implementing those procedures may also be out of proportion to the amounts which are or may be collected. Consequently, Member States should be permitted to halt recovery procedures in certain cases.
(37) In order to protect the financial interests of the Union budget, measures should be taken by Member States to satisfy themselves that transactions financed by the EAGF and the EAFRD are actually carried out and are executed correctly. Member States should also prevent, detect and deal effectively with any irregularities or non- compliance with obligations committed by beneficiaries. To this end, Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests
22 should apply.
(38) Provisions relating to general principles on checks, withdrawals, reductions or exclusions from payments and to the imposition of penalties are contained in various sectoral agricultural regulations. Those rules should be gathered in the same legal framework at a horizontal level. They should cover the obligations of the Member States as regards administrative and on-the-spot checks, the rules on the recovery, reduction and exclusions of aid. Rules on checks of obligations not necessarily linked to the payment of an aid should be laid down as well.
(39) Various provisions of the sectoral agricultural legislation require that a security be lodged to ensure the payment of a sum due if an obligation is not met. To all those provisions a single horizontal rule should apply so as to strengthen the framework for securities.
any reductions provided for in this Regulation, and within prescribed periods. In order to render the management of direct payments more flexible, Member States should be allowed to pay payments covered by the integrated system in up to two instalments per year.
(43) Scrutiny of the commercial documents of undertakings receiving or making payments can be a very effective means of surveillance of transactions forming part of the system of financing by the EAGF. The provisions on the scrutiny of the commercial documents are laid down in Council Regulation (EC) No 485/2008 of 26 May 2008 on scrutiny by Member States of transactions forming part of the system of financing by the European Agricultural Guarantee Fund
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24.That scrutiny supplements other checks
already carried out by the Member States. Furthermore, national provisions relating to scrutiny which are more extensive than those provided for in that Regulation are not affected by it.
(44) Under Regulation (EC) No 485/2008, Member States are to take the measures necessary to ensure effective protection of the financial interests of the Union budget, and particularly in order to check the genuineness and compliance of operations financed by the EAGF. In the interests of clarity and rationality, the relevant provisions should be integrated into the same act. Regulation (EC) No 485/2008 should therefore be repealed.
(45) The documents used as a basis for such scrutiny should be determined in such a way as to enable a full scrutiny to be carried out. The undertakings to be scrutinised should be selected on the basis of the nature of the transactions carried out on their responsibility and the breakdown per sector of the undertakings receiving or making payments according to their financial importance in the system of financing by the EAGF.
(46) The powers of the officials responsible for scrutiny and the obligations on undertakings to make commercial documents available to such officials for a specified period and to supply such information as may be requested by them should be defined. Provision should be made allowing commercial documents to be seized in certain cases.
(49) It is essential that each Member State has a special department responsible for monitoring the scrutiny of commercial documents provided for in this Regulation or for coordinating that scrutiny. Those special departments should be organised independently of the departments carrying out scrutiny prior to payment. Information collected during that scrutiny should be protected by professional secrecy.
(50) Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001
25, which was replaced by Regulation (EC) No 73/2009,
established the principle that the full payment to beneficiaries of some supports under the CAP should be linked to compliance with rules relating to land management, agricultural production and agricultural activity. That principle was subsequently reflected in Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
26 and Council Regulation (EC) No 1234/2007 of 22 October 2007
establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation)
-
27.Under this so-called
'cross compliance' system Member States are to impose penalties in the form of reduction or exclusion of support received under the CAP in whole or in part.
(51) The cross compliance system incorporates in the CAP basic standards for the environment, climate change, good agricultural and environmental condition of land, public health, animal health, plant health and animal welfare. This link aims at contributing to the development of a sustainable agriculture through a better awareness of beneficiaries of the need to respect those basic standards. It aims also at contributing to make the CAP more compatible with the expectation of the society through a better consistency of that policy with the environment, public health, animal health, plant health and animal welfare policies.
(52) The cross compliance system forms an integral part of the CAP and should therefore be maintained. However, its scope, which consists so far in separate lists of statutory management requirements and standards of good agricultural and environmental condition of land should be streamlined so that its consistency is ensured and made more visible. For this purpose the requirements and standards should be organised in a single list and grouped by areas and issues. Experience has also shown that a number of the requirements within the scope of cross compliance are not sufficiently relevant to farming activity or the area of the holding or concern national authorities rather than beneficiaries. It is therefore appropriate to adjust this scope in this respect. Provision should furthermore be made for the maintenance of permanent grassland in 2014 and 2015.
(53) Statutory management requirements need to be fully implemented by Member States in order to become operational at farm level and ensure the necessary equal treatment between farmers.
(54) As regards Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy
28 the provisions will only be operational under cross compliance when all
Member States will have fully implemented them in particular with clear obligations for farmers. According to the Directive the requirements at farm level will be applied at the latest by 1 January 2013.
(55) As regards Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides
29 the provisions will only be operational under cross
compliance when all Member States will have fully implemented them in particular with clear obligations for farmers. According to the Directive the requirements at farm level will be progressively applied following a time schedule and in particular the general principles of integrated pest management will be applied at the latest by 1 January 2014.
(56) According to Article 22 of Directive 2000/60/EC, Council Directive 80/68/EEC of 17 December 1979 on the protection of groundwater against pollution caused by certain dangerous substances
30 shall be repealed on 23 December 2013. In order to maintain
the rules under cross compliance related to protection of groundwater, it is appropriate, while awaiting the inclusion of Directive 2000/60/EC in cross compliance, to adjust the scope of cross-compliance and to define a standard of good agricultural and environnemental condition encompassing the requirements of Articles 4 and 5 of the Directive 80/68/EEC.
(57) The cross compliance system implies certain administrative constraints for both beneficiaries and national administrations since record keeping must be ensured, checks must be carried out and penalties have to be applied where necessary. Those penalties should be proportionate, effective and dissuasive. Such penalties should be without prejudice to other penalties laid down under other provisions of Union or national law. For the sake of consistency, it is appropriate to merge the relevant Union provisions into one single legal instrument. For farmers participating in the small farmers scheme referred to in Title V of Regulation (EU) No xxx/xxx[DP], the efforts to be made under the cross compliance system may be considered as exceeding the benefit of keeping those farmers under that system. For reasons of simplification, those farmers should therefore be exempted from cross compliance and in particular from its control system and from the risk of cross compliance penalties. However, that exemption should be without prejudice to the obligation to respect the applicable provisions of the sectoral legislation and to the possibility to be checked and to be imposed penalties under that legislation.
(58) Regulation (EC) No 1782/2003 established a framework of standards of good agricultural and environmental condition of the land within which Member States are to adopt national standards taking account of the specific characteristics of the areas concerned, including soil and climatic conditions and existing farming systems (land use, crop rotation, farming practices) and farm structures. Those standards of good agricultural and environmental condition of the land aim at contributing to prevent soil erosion, maintain soil organic matter and soil structure, ensure a minimum level of maintenance, avoid the deterioration of habitats and protect and manage water. The wider scope of the cross compliance system as laid down in this Regulation should therefore include a framework within which Member States should adopt national standards of good agricultural and environmental condition. The Union framework should also include rules to better address water, soil, carbon stock, biodiversity and landscape issues as well as minimum level of maintenance of the land.
(59) Beneficiaries should know clearly what they have to comply with in relation to the rules on cross compliance. For that purpose, all requirements and standards forming part of those rules should be communicated by Member States in an exhaustive, understandable and explanatory way, including, where possible, by electronic means.
(60) An effective implementation of cross compliance requires verification at beneficiaries' level that obligations are respected. Where a Member State decides to make use of the option not to apply a reduction or exclusion where the amount concerned is less than EUR 100, the competent control authority should, for a sample of beneficiaries in the following year, verify that the findings of the non-compliance concerned have been remedied.
(61) To ensure harmonious cooperation between the Commission and the Member States regarding the financing of CAP expenditure and, more particularly, to allow the Commission to monitor the financial management by the Member States and clear the accounts of the accredited paying agencies, certain information has to be communicated by the Member States or to be kept available to the Commission.
(62) For the purposes of compiling the data to be sent to the Commission, and to allow the Commission to have full immediate access to expenditure data in both paper and electronic form, suitable rules on the presentation and transmission of data, including rules on time limits, need to be laid down.
operative event or to waive its application, observing certain criteria and in particular the rapidity with which currency movements are passed on. Those rules are laid down in Council Regulation (EC) No 2799/98 of 15 December 1998 establishing agrimonetary arrangements for the euro
31 and they complete similar provisions of
Regulation (EC) No 1290/2005. In the interests of clarity and rationality the relevant provisions should be integrated into the same act. Regulation (EC) No 2799/98 should therefore be repealed.
(66) Special rules should be laid down for dealing with exceptional monetary situations arising either within the Union or on the world market and requiring immediate action to ensure that the arrangements established under the CAP operate effectively.
(67) Member States not having adopted the euro should have the option of making payments for expenditure resulting from the CAP legislation in euro rather than in national currency. Specific rules are needed to ensure that this option does not lead to any unjustified advantage for parties making or receiving payment.
(68) Each measure under the CAP should be subject to monitoring and evaluation in order to improve its quality and demonstrate its achievements. In this context a list of indicators should be determined and the impact of the CAP policy assessed by the Commission in relation to policy objectives. The Commission should set up a framework for a common monitoring and evaluation ensuring among others that relevant data, including information from Member States is available on a timely manner. In so doing it should take into account the data needs and synergies between potential data sources. Moreover, the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A Budget for Europe 2020 - Part II stated that the climate related expenditure in the overall Union budget should increase to at least 20%, with contribution from different policies. The Commission should therefore be able to assess the impact of the Union's support in the framework of the CAP to climate objectives.
(69) Union legislation concerning the protection of individuals with regard to the processing of personal data and on the free movement of such data, in particular Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data
natural persons that their personal data are protected, and with a view to reconciling the different objectives underlying the obligation to publish information on the beneficiaries of funds, as provided for in Commission Regulation (EC) No 259/2008 laying down detailed rules for the application of Council Regulation (EC) No 1290/2005 as regards the publication of information on the beneficiaries of funds deriving from the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD)
35, that Regulation was amended
in order to lay down explicitly that this obligation does not apply to natural persons. The adoption by the European Parliament and the Council of new rules taking account of the objections expressed by the Court should be preceded by in depth analysis and assessment in order to find the most appropriate way to reconcile the right to protection of personal data of the beneficiaries with the need for transparency. Pending that analysis and assessment, the current provisions on the publication of information on beneficiaries of the European agricultural funds should be maintained.
(71) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers
36.
(72) The advisory procedure should be used for the adoption of certain implementing acts. With regard to the implementing acts involving the calculations of amounts by the Commission the advisory procedure enables the Commission to fully assume its responsibility of managing the budget and aims at increased efficiency, predictability and rapidity, taking into account the time limits and the budgetary procedures. With regard to the implementing acts within the framework of the payments made to the Member States and the operation of the clearance of accounts procedure, the advisory procedure enables the Commission to fully assume its responsibility of managing the budget and verifying the annual accounts of the national paying agencies with a view to accepting such accounts or, in the case of expenditure not effected in compliance with Union rules, to excluding such expenditure from Union financing. In other cases, the examination procedure should be used for the adoption of implementing acts.
applicable as from that date. However, certain provisions related in particular to the financial management of the funds should apply as from an earlier date corresponding to the beginning of the financial year,
TABLE OF CONTENTS
EXPLANATORY MEMORANDUM ....................................................................................... 2
-
1.CONTEXT OF THE PROPOSAL............................................................................... 2
-
2.RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENT ............................................................................................ 4
-
3.LEGAL ELEMENTS OF THE PROPOSAL .............................................................. 6
-
4.BUDGETARY IMPLICATION .................................................................................. 7
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the financing, management and monitoring of the common agricultural policy ............................. 9
TITLE I SCOPE AND DEFINITIONS ................................................................................... 27
TITLE II GENERAL PROVISIONS ON AGRICULTURAL FUNDS .................................. 28
Chapter I Agricultural Funds.................................................................................................... 28
Chapter II Paying agencies and other bodies ........................................................................... 30
TITLE III FARM ADVISORY SYSTEM ............................................................................... 33
TITLE IV FINANCIAL MANAGEMENT OF THE FUNDS ................................................ 35
Chapter I EAGF ....................................................................................................................... 35
Section 1 Financing of Expenditure ......................................................................................... 35
Section II Clearance ................................................................................................................. 54
Section III Irregularities ........................................................................................................... 56
TITLE V CONTROL SYSTEMS AND PENALTIES ............................................................ 58
Chapter I General rules ............................................................................................................ 58
Chapter II Integrated Administration and Control System ...................................................... 63
Chapter III Scrutiny of transactions ......................................................................................... 69
Chapter IV Other provisions on checks ................................................................................... 74
TITLE VI CROSS COMPLIANCE ......................................................................................... 77
Chapter I Scope ........................................................................................................................ 77
Chapter II Control system and penalties in relation to cross compliance ................................ 79
TITLE VII COMMON PROVISIONS .................................................................................... 83
Chapter I Communication ........................................................................................................ 83
CHAPTER II Use of the euro .................................................................................................. 85
CHAPTER III Report and evaluation ..................................................................................... 87
TITLE VIII FINAL PROVISIONS.......................................................................................... 89
TITLE I
SCOPE AND DEFINITIONS
Article 1
Scope
This Regulation lays down the rules on:
(a) the financing of expenditure under the common agricultural policy, including expenditure on rural development;
(b) the farm advisory system;
(c) the management and control systems to be put in place by the Member States;
(d) the cross-compliance system;
(e) clearance of accounts.
Article 2
Terms used in this Regulation
-
1.The definitions of "farmer", "agricultural activity", "agricultural area", "holding" laid down in Article 4 of Regulation (EU) xxx/xxx[DP] shall apply for the purposes of this Regulation, save as otherwise provided for in this Regulation.
The terms "direct payments" referred to in Article 1 of Regulation (EU) xxx/xxx[DP] shall apply for the purposes of this Regulation.
TITLE II
GENERAL PROVISIONS ON AGRICULTURAL
FUNDS
Chapter I
Agricultural Funds
Article 3
Funds financing agricultural expenditure
-
1.In order to achieve the objectives of the common agricultural policy defined by the Treaty, the financing of the various measures falling under it, including rural development shall be made by:
(a) the European Agricultural Guarantee Fund, hereinafter referred to as the `EAGF';
(b) the European Agricultural Fund for Rural Development, hereinafter referred to
as the `EAFRD'.
-
2.The EAGF and the EAFRD shall come under the general budget of the European
Union.
Article 4
EAGF expenditure
(a) promotion of agricultural products, undertaken either directly by the Commission or via international organisations;
(b) measures, undertaken in accordance with Union legislation, to ensure the conservation, characterisation, collection and utilisation of genetic resources in agriculture;
(c) establishment and maintenance of agricultural accounting information systems;
(d) agricultural survey systems, including surveys on the structure of agricultural
holdings.
Article 5
EAFRD expenditure
The EAFRD shall be implemented in shared management between the Member States and the Union and shall finance the Union's financial contribution to rural development programmes implemented in accordance with the Union legislation on support for rural development, as well as the expenditure related to the Prize for innovative, local cooperation referred to in Chapter IV of Title III of Regulation (EU) No RD/xxx..
Article 6
Other expenditure, including technical assistance
The EAGF and the EAFRD may each respectively finance on a direct manner, on the initiative of the Commission and/or on its behalf, the preparatory, monitoring, administrative and technical support, as well as evaluation, audit and inspection measures required to implement the common agricultural policy. Those measures shall include in particular:
(a) measures required for the analysis, management, monitoring, information exchange and implementation of the common agricultural policy, as well as measures relating to the implementation of control systems and technical and administrative assistance;
(g) where relevant, executive agencies set up in accordance with Council Regulation
(EC) No 58/2003
37, acting in connection with the common agricultural policy;
(h) measures relating to dissemination of information, raising awareness, promoting cooperation and exchanging experience at Union level, undertaken in the context of rural development, including networking of the parties concerned
;
(i) measures required for the development, registration and protection of logos within the framework of the Union quality policies and for the protection of intellectual property rights linked to it, as well as the necessary information technology (IT) developments
.
Chapter II
Paying agencies and other bodies
Article 7
Accreditation and withdrawal of accreditation of paying agencies
and coordinating bodies
-
1.Paying agencies shall be dedicated departments or bodies of the Member States responsible for the management and control of expenditure referred to in Article 4(1) and Article 5.
With the exception of payment, the execution of those tasks may be delegated.
-
2.Member States shall accredit as paying agencies departments or bodies which fulfil the accreditation criteria to be laid down by the Commission pursuant to Article 8(a).
Each Member State shall, taking into account its constitutional provisions, restrict the number of its accredited paying agencies to one per Member State or one per region, where applicable. However, where paying agencies are established at regional level, Member States shall, in addition, accredit a paying agency at national level for aid schemes which, by their nature, have to be managed at national level.
(c) a summary of the results of all available audits and checks carried out, including an analysis of systematic or recurrent weaknesses as well as corrective actions taken or planned.
-
4.Where more than one paying agency is accredited, the Member State shall designate a body, hereinafter referred to as the "coordinating body", to which it assigns the following tasks:
(a) to collect the information to be made available to the Commission and to send that information to the Commission;
(b) to establish a synthesis report providing an overview at national level of all management declarations of assurance referred to in point (b) of paragraph 3 and the audit opinions thereon referred to in Article 9;
(c) to ensure that remedial action is taken as regards any deficiencies of a common nature and that the Commission is kept informed of the follow-up;
(d) to promote and ensure harmonised application of the Union rules.
The coordinating body shall be subject to specific accreditation by the Member States as regards the processing of the financial information referred to in point (a) of
the first subparagraph.
-
5.Where an accredited paying agency does not meet or no longer meets one or more of the accreditation criteria referred to in paragraph 2, the Member State shall withdraw its accreditation unless the paying agency makes the necessary changes within a period to be determined according to the severity of the problem.
2 The Commission shall lay down, by means of implementing acts, rules on:
(a) the obligations of the paying agencies as regards public intervention, as well as on the content of their management and control responsibilities.
(b) the functioning of the coordinating body and the notification of information to the Commission as referred to in Article 7(4).
The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).
Article 9
Certification bodies
-
1.The certification body shall be a public or private audit body designated by the Member State which shall provide an opinion on the management declaration of assurance covering the completeness, accuracy and veracity of the annual accounts of the paying agency, the proper functioning of its internal control system, the legality and regularity of the underlying transactions, as well as the respect of the principle of sound financial management.
It shall be operationally independent from both the paying agency concerned and the authority which has accredited that agency.
-
2.The Commission shall, by means of implementing acts, lay down rules concerning the status of the certification bodies, the specific tasks, including the checks, which they have to carry out as well as the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).
TITLE III
FARM ADVISORY SYSTEM
Article 12
Principle and scope
-
1.Member States shall establish a system of advising beneficiaries on land and farm management (hereinafter referred to as the `farm advisory system') operated by one or more designated bodies. The designated bodies may be public or private.
-
2.The farm advisory system shall cover at least:
(a) the statutory management requirements and the standards for good agricultural and environmental condition of land as laid down in Chapter I of Title VI;
(b) the agricultural practices beneficial for the climate and the environment as laid down in Chapter 2 of Title III of Regulation (EU) No xxx/xxx [DP] and the maintenance of the agricultural area as referred to in Article 4(1)(c) of Regulation (EU) No xxx/xxx [DP];
(c) the requirements or actions related to climate change mitigation and adaptation, biodiversity, protection of water, animal and plant disease notification and innovation at minimum as laid down in Annex I to this Regulation;
(d) the sustainable development of the economical activity of the small farms as defined by the Member States and at least of the farms participating in the small farmers scheme referred to in Title V of Regulation (EU) No xxx/xxx[DP].
the exception of any irregularity or infringement found during their activity which is covered by an obligation laid down in Union or national law to inform a public authority, in particular in the case of criminal offences.
-
3.The competent national authority shall provide the beneficiary, where appropriate by the use of electronic means, with the appropriate list of designated bodies.
Article 14
Access to the farm advisory system
Beneficiaries, whether or not they receive support under the common agricultural policy, including rural development, may use the farm advisory system on a voluntary basis.
However Member States may determine, in accordance with objective criteria, the categories of beneficiaries that have priority access to the farm advisory system. Member States shall nevertheless ensure that priority is given to farmers whose access to an advisory service other than the farm advisory system is most limited.
The farm advisory system shall ensure that beneficiaries have access to advice reflecting the specific situation of their holding.
Article 15
Commission powers
-
1.In order to guarantee the proper functioning of the farm advisory system, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 concerning provisions aiming at rendering that system fully operational. Those provisions may relate, amongst others, to the accessibility criteria for farmers.
TITLE IV
FINANCIAL MANAGEMENT OF THE FUNDS
Chapter I
EAGF
SECTION 1
FINANCING OF EXPENDITURE
Article 16
Budget ceiling
-
1.The annual ceiling for EAGF expenditure shall be constituted by the maximum amounts set for it under Regulation (EU) No xxx/xxx [MFF] .
-
2.In the event that the Union legislation provides for sums to be reduced from the amount referred to in paragraph 1, the Commission shall, by means of implementing acts, set the net balance available for EAGF expenditure on the basis of the data referred to in that legislation.
Article 17
Monthly payments
-
1.The appropriations necessary to finance the expenditure referred to in Article 4(1)
shall be made available to Member States by the Commission in the form of monthly payments, on the basis of the expenditure effected by the accredited paying agencies during a reference period.
Expenditure effected by Member States between 1 and 15 October shall count as being made in the month of October. Expenditure effected between 16 and 31 October shall count as being made in the month of November.
-
3.The Commission shall, by means of implementing acts, determine the monthly payments which it makes, on the basis of a declaration of expenditure from the Member States and the information supplied in accordance with Article 102(1), taking account reductions or suspensions applied under Article 43 or any other corrections. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 112(2).
-
4.The Commission may, by means of implementing acts, decide to make supplementary payments or deductions. In such cases, the Committee referred to in Article 112(1) shall be informed at its next meeting.
Article 19
Administrative and personnel costs
Expenditure relating to administrative and personnel costs incurred by Member States and by beneficiaries of aid from the EAGF shall not be borne by the Fund.
Article 20
Public intervention expenditure
-
1.Where, within the framework of the common organisation of the markets, a sum per unit is not determined in respect of a public intervention, the EAGF shall finance the measure concerned on the basis of standard amounts uniform throughout the Union, in particular for funds originating in the Member States used for buying-in products, for material operations arising from storage and, where appropriate, for processing of intervention products.
Article 21
Acquisition of satellite images
The list of the satellite images required for checks shall be agreed by the Commission and the Member States in accordance with the specification prepared by each Member State.
The Commission shall supply those satellite images free of charge to the control bodies or to suppliers of services authorised by those bodies to represent them.
The Commission shall remain the owner of the images and shall recover them on completion of the work. It may also provide that work is carried out on enhancing techniques and working methods in connection with the inspection of agricultural areas by remote sensing.
Article 22
Monitoring of agricultural resources
The measures financed pursuant to point (c) of Article 6 shall aim to give the Commission the means to manage Union agricultural markets in a global context, to ensure agri-economic monitoring of agricultural land and of the condition of crops so as to enable estimates to be made, in particular as regards yields and agricultural production, to share the access to such estimates in an international context, such as initiatives coordinated by United Nations organisations or other international agencies, to contribute to transparency of world markets, and to ensure technological follow-up of the agri-meteorological system.
The measures financed pursuant to point (c) of Article 6 concern the collection or purchase of data needed to implement and monitor the common agricultural policy, including satellite data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions and the updating of agri-meteorological and econometric models. Where necessary, those measures shall be carried out in collaboration with national laboratories and bodies.
SECTION 2
BUDGET DISCIPLINE
Article 24
Compliance with the ceiling
-
1.Throughout the budget procedure and the implementation of the budget, appropriations relating to EAGF expenditure shall not exceed the amount referred to
in Article 16.
All legislative instruments proposed by the Commission and adopted by the European Parliament and the Council, the Council or the Commission and having an influence on the EAGF budget shall comply with the amount referred to in Article
16.
-
2.Where Union legislation provides for a financial ceiling in euro for agricultural expenditure in respect of a Member State, such expenditure shall be reimbursed subject to that limit set in euro, with any necessary adjustments being made if
Article 43 applies.
-
3.National ceilings for direct payments referred to in Article 7 of Regulation (EU) No xxx/xxx[DP], corrected by the adjustments laid down in Article 25 of this Regulation, shall be deemed to be financial ceilings in euro.
Article 25
Financial discipline
-
1.With a view to ensuring that the annual ceilings set out in the Regulation (EU) No
xxx/xxx [MFF] for the financing of the market related expenditure and direct payments are respected, an adjustment rate of the direct payments shall be determined when the forecasts for the financing of the measures financed under that
subceiling for a given financial year indicate that the applicable annual ceilings will be exceeded.
-
5.The Commission may by means of implementing act adopt the terms and conditions applicable to appropriations carried over in accordance with Article [149(3)] of Regulation (EU) No FR/xxx in order to finance the expenditure referred to in Article 4(1)(b) of this Regulation. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 112(2).
-
6.Before applying this Article, account shall first be taken of the amount authorised by the budget authority for the Reserve for crises in the agricultural sector referred to in point 14 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management.
Article 26
Budget discipline procedure
-
1.The Commission shall present to the European Parliament and to the Council, at the same time as the draft budget for financial year N, its forecasts for financial years N - 1, N and N + 1.
-
2.If, on drawing up the draft budget for financial year N, there appears to be a risk that the amount referred to in Article 16 for financial year N will be exceeded, the Commission shall propose to the European Parliament and the Council or to the Council the measures necessary to ensure compliance with that amount.
-
3.At any time, if the Commission considers that there is a risk of the amount referred to in Article 16 being exceeded and that it cannot take adequate measures to remedy the situation under its powers, it shall propose other measures to ensure compliance with that amount. These measures shall be adopted by the Council on the basis of Article 43(3) of the Treaty or by the European Parliament and the Council on the basis of Article 43(2) of the Treaty.
-
4.If, at the end of financial year N, reimbursement requests from the Member States exceed or are likely to exceed the amount referred to in Article 16, the Commission
The implementing acts provided for in points (a) and (c) of the first subparagraph shall be adopted in accordance with the advisory procedure referred to in Article
112(2).
Article 27
Early-warning system
In order to ensure that the budget ceiling referred to in Article 16 will not be exceeded, the Commission shall implement a monthly early-warning and monitoring system in respect of EAGF expenditure.
Before the beginning of each financial year, the Commission shall determine for that purpose monthly expenditure profiles based, where appropriate, on average monthly expenditure during the previous three years.
The Commission shall present periodically to the European Parliament and to the Council a report examining the development of expenditure effected in relation to the profiles and containing an assessment of the foreseeable implementation for the current financial year.
Article 28
Reference exchange rates
-
1.When adopting the draft budget, or a letter of amendment to the draft budget which concerns agricultural expenditure, the Commission shall use for EAGF budget estimates the average euro/US dollar exchange rate recorded on the market during the latest quarter ending at least 20 days before adoption of the budget document by the Commission.
Chapter II
EAFRD
SECTION 1
GENERAL PROVISIONS FOR EAFRD
Article 29
No double funding
Without prejudice to the eligibility for support under Article 30(2) of Regulation (EU) No RD/xxx, expenditure financed under the EAFRD shall not be subject of any other financing under the EU budget.
Article 30
Provisions applying to all payments
-
1.In accordance with Article 67(1) of Regulation (EU) No CR/xxx payments by the Commission of the EAFRD contribution as referred to in Article 5 shall not exceed the budget commitments.
They shall be assigned to the earliest open budget commitment.
-
2.Article [81] of Regulation (EU) No FR/xxx shall apply.
SECTION 2
FINANCING OF RURAL DEVELOPMENT PROGRAMMES
SECTION 3
FINANCIAL CONTRIBUTION TO RURAL DEVELOPMENT PROGRAMMES
Article 33
Provisions applying to payments for rural development programmes
-
1.The appropriations necessary to finance the expenditure referred to in Article 5 shall be made available to Member States in the form of prefinancing, interim payments and the payment of a balance, as described in this Section.
-
2.The combined total of prefinancing and interim payments shall not exceed 95 % of the EAFRD's contribution to each rural development programme.
In accordance with Article 70(2) of Regulation (EU) No CR/xxx, when the ceiling of 95 % is reached, the Member States shall continue transmitting request for payments
to the Commission.
Article 34
Prefinancing arrangements
-
1.Following the Commission decision approving the programme, an initial prefinancing amount for the whole programming period shall be paid by the Commission. This initial pre-financing amount shall represent 4% of the EAFRD contribution to the programme concerned. It may be split into a maximum of three instalments depending on budget availability. The first instalment shall represent 2% of the EAFRD contribution to the programme concerned.
-
2.Subject to resource availability, the Commission shall make interim payments in order to reimburse the expenditure incurred by accredited paying agencies in implementing the programmes.
-
3.Each interim payment shall be made subject to compliance with the following
requirements:
(a) transmission to the Commission of a declaration of expenditure signed by the accredited paying agency, in accordance with Article 102(1)(c);
(b) no overrun of the total EAFRD contribution to each measure for the entire period covered by the programme concerned;
(c) transmission to the Commission of the last annual progress report on the implementation of the rural development programme.
-
4.If one of the requirements laid down in paragraph 3 is not met, the Commission shall forthwith inform the accredited paying agency or the coordinating body, where one has been appointed. If one of the requirements laid down in point (a) or (c) of paragraph 3 is not respected, the declaration of expenditure shall be inadmissible.
-
5.The Commission shall make interim payments within 45 days of registering a declaration of expenditure for which the requirements set out in paragraph 3 of this Article are met, without prejudice to the Article 39 and to the implementing acts referred to in Articles 53 and 54.
-
6.Accredited paying agencies shall establish and forward, either directly or via the intermediary of the coordinating body, where one has been appointed, intermediate declarations of expenditure relating to rural development programmes to the Commission, within periods set by the Commission by means of implementing acts adopted in accordance with the examination procedure referred to in Article 112(3).
Declarations of expenditure shall cover expenditure that the paying agencies have incurred during each of the periods concerned. However, in cases where expenditure referred to in Article 55(7) of Regulation (EU) No CR/xxx cannot be declared to the Commission in the period concerned due to pending approval of the program modification by the Commission, it may be declared in subsequent periods.
execution year for the relevant rural development programme and of the corresponding clearance decision. Those accounts shall be presented to the Commission no later than 6 months after the final eligibility date of expenditure as referred to in Article 55(2) of Regulation (EU) No xxx/xxx[CR] and shall cover the expenditure incurred by the paying agency up to the last eligibility date of expenditure.
-
2.The balance shall be paid not later than six months after the information and documents referred to in paragraph 1 of this Article are considered receivable by the Commission and the last annual account have been cleared. The amounts still committed after the balance is paid shall be decommitted by the Commission within a period of six months, without prejudice to Article 37(5).
-
3.If by the time limit set out in paragraph 1 the Commission has not been sent the last annual progress report and the documents needed for clearance of the accounts of the last execution year for the programme the balance shall be automatically decommitted in accordance with Article 37.
Article 37
Automatic decommitment for rural development programmes
-
1.The Commission shall automatically decommit any portion of a budget commitment for a rural development programme that has not been used for the purpose of prefinancing or making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in Article 35(3) has been presented to it in relation to expenditure incurred by 31 December of the second year following that of
the budget commitment.
The Member State shall send the Commission information on the exceptions referred to in the first subparagraph by 31 January for the amount to be declared by the end of the preceding year.
-
5.The Commission shall inform Member States in good time if there is a risk of automatic decommitment. It shall inform them of the amount involved as indicated by the information in its possession. The Member States shall have two months from receiving this information to agree to the amount in question or present observations. The Commission shall carry out the automatic decommitment not later than nine months after the last time-limit resulting from the application of paragraphs 1 to 3.
-
6.In the event of automatic decommitment, the EAFRD contribution to the rural development programme concerned shall be reduced, for the year in question, by the amount automatically decommitted. The Member State shall produce a revised financing plan splitting the reduction of the aid between the measures for approval by the Commission. If it does not do so, the Commission shall reduce the amounts allocated to each measure pro rata.
SECTION 4
FINANCING OF THE PRIZE FOR INNOVATIVE, LOCAL COOPERATION
Article 38
Budget commitments
The Commission Decision adopting the list of the projects to which the Prize for innovative, local cooperation is awarded, as referred to in Article 58(4) of Regulation (EU) No RD/xxx shall constitute a financing decision within the meaning of Article [75(2)] of Regulation (EU)
No FR/xxx.
Following the adoption of the Decision referred to in the first paragraph, the Commission shall made a budget commitment by Member State for the total amount of the prizes granted to projects in that Member State within the limit referred to in Article 51(2) of Regulation (EU) No RD/xxx.
-
3.Accredited paying agencies shall establish and forward, either directly or via the intermediary of the coordinating body, where one has been appointed, declarations of expenditure relating to the Prize for innovative, local cooperation to the Commission, within periods set by the Commission by means of implementing acts adopted in accordance with the examination procedure referred to in Article 112(3).
Declarations of expenditure shall cover expenditure that the paying agencies have incurred during each of the periods concerned.
Article 40
Automatic decommitment for the Prize for innovative, local cooperation
The Commission shall automatically decommit the amounts referred to in the second subparagraph of Article 38 that have not been used for reimbursing the Member States as laid down in Article 39 or for which no declaration of expenditure meeting the conditions laid down in that Article has been presented to it in relation to expenditure incurred by 31 December of the second year following that of the budget commitment.
Article 37(3), (4) and (5) shall apply mutatis mutandis.
Chapter III
Common Provisions
Article 41
Agricultural financial year
Without prejudice to the special provisions on declarations of expenditure and revenue relating to public intervention laid down by the Commission pursuant to Article 48(7)(a), the agricultural financial year shall cover expenditure paid and revenue received and entered in the accounts of the EAGF and EAFRD budget by the paying agencies in respect of financial year «N» beginning on 16 October of year «N-1» and ending on 15 October of year «N».
-
2.Where the latest possible date of payment is not respected by the Member States, they shall pay the beneficiaries default interests, supported from the national budget.
Article 43
Reduction and suspension of monthly and interim payments
-
1.Where the declarations of expenditure or the information referred to in Article 102 enable the Commission to establish that expenditure has been effected by bodies which are not accredited paying agencies, that payment periods or financial ceilings set by Union legislation have not been respected or that expenditure has otherwise not been effected in accordance with Union rules, the Commission may reduce or suspend the monthly or interim payments to the Member State concerned under the decision on monthly payments referred to in Article 18(3) or in the framework of the interim payments referred to in Article 35, after giving the Member State an opportunity to submit its comments.
Where the declarations of expenditure or the information referred to in Article 102 do not enable the Commission to establish that the expenditure has been effected in accordance with Union rules, the Commission shall ask the Member State concerned to supply further information and submit its comments within a period which may not be less than 30 days. If the Member State fails to respond to the Commission request within the period determined or if the response is considered unsatisfactory or demonstrates that the expenditure has not been effected in accordance with Union rules, the Commission may reduce or suspend the monthly or interim payments to the Member State concerned under the decision on monthly payments referred to in Article 18(3) or in the framework of the interim payments referred to in Article 35.
-
2.The Commission may, by way of implementing acts, reduce or suspend the monthly or interim payments to a Member State if all of the following conditions are met:
(a) one or more of the key components of the national control system in question do not exist or are not effective due to the gravity or persistence of the deficiencies found, or irregular payments are not being recovered with the necessary diligence;
months if the conditions for the reduction or suspension continue to be met. It shall not be continued if those conditions are no longer met.
Before adopting the implementing acts referred to in the first subparagraph, the Commission shall inform the Member State concerned of its intention and shall ask it to react within a period which may not be less than 30 days.
The decisions on the monthly payments referred to in Article 18(3) or on the interim payments referred to in Article 35 shall take account of the implementing acts adopted under this paragraph.
-
3.Reductions and suspensions under this Article shall be applied in accordance with the principle of proportionality and are without prejudice to the implementing acts referred to in Articles 53 and 54.
-
4.Reductions and suspensions under this Article shall be without prejudice to Articles 17, 20 and 21 of Regulation (EU) No CR/xxx.
The suspensions referred to in Articles 17 and 20 of Regulation (EU) No CR/xxx shall be applied following the procedure laid down in paragraph 2 of this Article.
Article 44
Suspension of payments in case of late submission
When sectoral agricultural legislation requires Member States to submit, within a specific period of time, information on the numbers of checks carried out and their outcome and the Member States overrun that period, the Commission may suspend the monthly payments referred to in Article 18 or the interim payments referred to in Article 35 for which the relevant statistical information has not been sent in time.
Article 45
(d) amounts corresponding to penalties applied in accordance with the rules on cross-compliance laid down in Chapter II of Title VI, as regards expenditure under EAGF;
(e) any security, deposit or guarantee furnished pursuant to Union legislation adopted within the framework of Common Agricultural Policy, excluding rural development, which is forfeited. However, forfeited securities lodged when issuing export or import licences or under a tendering procedure for the sole purpose of ensuring the submission by tenderers of genuine tenders shall be retained by the Member States.
-
2.The sums referred to in paragraph 1 shall be paid to the Union budget and, in the event of reuse, shall be used exclusively to finance EAGF or EAFRD expenditure.
-
3.This Regulation shall apply mutatis mutandis to assigned revenue referred to in paragraph 1.
-
4.As regards the EAGF, Articles [150 and 151] of Regulation (EU) No FR/xxx shall
apply mutatis mutandis to the keeping of accounts on assigned revenue referred to in
this Regulation.
Article 46
Keeping of separate accounts
Each paying agency shall keep a set of separate accounts for the appropriations entered in the budget of the Union for the EAGF and the EAFRD.
Article 47
Financing of information measures
-
1.The provision of information financed pursuant to point (e) of Article 6 shall aim, in particular, at helping to explain, implement and develop the common agricultural policy and raising public awareness of the content and objectives of that policy, at reinstating consumer confidence following crises through information campaigns, at informing farmers and other parties active in rural areas and promoting the European model of agriculture and helping people understand it.
In order to implement activities as referred to in point (b) the Commission may be assisted by external experts.
The measures referred to in the first subparagraph shall also contribute to covering the corporate communication of the Union's political priorities provided that they are related to the general objectives of this Regulation.
-
3.The Commission shall publish by 31 October of each year a call of proposal respecting the conditions laid down in Regulation (EU) No FR/xxx.
-
4.The Committee referred to in Article 112(1) shall be notified of measures envisaged and taken pursuant to this Article.
-
5.The Commission shall present a report on the implementation of this Article to the European Parliament and the Council every two years.
Article 48
Commission powers
-
1.In order to take account of revenue collected by paying agencies for the Union's budget when making payments on the basis of the expenditure declarations submitted by Member States, the Commission shall be empowered to adopt delegated act in accordance with Article 111 concerning the conditions under which certain types of expenditure and revenue under the EAGF and the EAFRD are to be compensated.
-
2.In order to ensure the proper management of the appropriations entered in the budget of the Union for the EAGF and the EAFRD, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 containing rules pertaining to the valuation of operations in connection with public intervention and the measures to be taken in case of loss or deterioration of products under the public intervention and the determination of amounts to be financed.
-
3.In order to enable the equitable distribution of the appropriations available between the Member States, if the Union's budget has not been adopted by the beginning of the financial year or if the total amount of the commitments scheduled exceeds the threshold laid down in Article [150(3)] of Regulation (EU) No FR/xxx, the Commission shall be empowered to adopt delegated act in accordance with Article 111 of this Regulation on the provisions for the method applicable to the commitments and the payment of the amounts.
(a) the list of measures which fall under Article 44;
(b) the rate and period of suspension of payments referred to in that Article;
(c) the conditions for lifting the suspension.
-
6.The Commission may lay down, by means of implementing acts, further details on the obligation laid down in Article 46 as well as the specific conditions applying to the information to be booked in the accounts kept by the paying agencies. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).
-
7.The Commission may, by means of implementing acts, adopt rules pertaining to:
(a) rules on the financing and accounting of intervention measures in the form of public storage, and other expenditure financed by the EAGF and the EAFRD;
(b) the terms and conditions governing the implementation of the automatic decommitment procedure;
(c) rules on the payment by the Member States of default interests to the beneficiaries as referred to in Article 42(2).
The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).
Chapter IV
Clearance of accounts
(b) the existence of the requisite supporting documents and their correlation with the operations financed by the EAGF or the EAFRD;
(c) the terms on which the operations financed by the EAGF or the EAFRD have been undertaken and checked.
Persons delegated by the Commission to carry out on-the-spot checks or Commission agents acting within the scope of the powers conferred upon them shall have access to the books and all other documents, including documents and metadata drawn up or received and recorded on an electronic medium, relating to expenditure financed by the EAGF or the EAFRD
.
The powers to carry out on-the-spot checks shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation. Without prejudice to the specific provisions of Regulations (EC) No 1073/1999
40 and (EC) No 2185/96, persons delegated by the Commission shall not
take part, inter alia, in home visits or the formal questioning of persons on the basis of legislation of the Member State concerned. However, they shall have access to information thus obtained.
-
2.The Commission shall give sufficient prior notice of an on-the-spot check to the Member State concerned or the Member
State within whose territory the check is to
take place. Agents from the Member State concerned may take part in such checks.
At the request of the Commission and with the agreement of the Member State, additional checks or inquiries into the operations covered by this Regulation shall be undertaken by the competent bodies of that Member State. Commission agents or persons delegated by the Commission may take part in such checks.
In order to improve checks, the Commission may, with the agreement of the Member States concerned, request the assistance of the authorities of those Member States for certain checks or inquiries.
undue payments in connection with those irregularities and frauds pursuant to Section III of this Chapter.
Article 51
Access to documents
The accredited paying agencies shall keep supporting documents relating to payments made and documents relating to the performance of the administrative and physical checks required by Union legislation, and shall make the documents and information available to the Commission.
Where those documents are kept by an authority acting under delegation from a paying agency and responsible for authorising expenditure, that authority shall send reports to the accredited paying agency on the number of checks made, their content and the measures taken in the light of their results.
Article 52
Implementing powers
The Commission may, by means of implementing acts, lay down rules regarding:
(a) the specific obligations which the Member States have to comply with in relation to the checks provided for in this Chapter;
(b) the cooperation obligations to be complied with by the Member States for the implementation of Articles 49 and 50;
(c) the modalities for the reporting obligation referred to in Article 50(3).
The implementing acts provided for in the first paragraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).
Article 54
Conformity clearance
-
1.The Commission shall, by means of implementing acts, decide on the amounts to be excluded from Union financing when it finds that expenditure as indicated in Article 4(1) and Article 5 has not been incurred in conformity with Union legislation and, for EAFRD, with the applicable Union and national law referred to in Article 77 of Regulation (EU) No CR/xxx. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 112(2).
-
2.The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature and gravity of the infringement and of the financial damage caused to the Union.
-
3.Before the adoption of any decision to refuse financing, the findings from the Commission's inspection and the Member State's replies shall be notified in writing, following which the two parties shall attempt to reach agreement on the action to be taken.
If agreement is not reached, the Member State may request opening of a procedure aimed at reconciling each party's position within four months. A report of the outcome of the procedure shall be given to the Commission, which shall examine it before deciding on any refusal of financing.
-
4.Financing may not be refused for:
(a) expenditure as indicated in Article 4(1) which is incurred more than 24 months before the Commission notifies the Member State in writing of its inspection findings;
(b) expenditure on multiannual measures falling within the scope of Article 4(1)
or within the scope of the programmes as indicated in Article 5, where the final obligation on the recipient occurs more than 24 months before the Commission notifies the Member State in writing of its inspection findings;
Member State's report on the results of its checks of the expenditure
concerned.
Article 55
Implementing powers
The Commission shall, by means of implementing acts, lay down rules for the implementation
of:
(a) the clearance of accounts provided for in Article 53 with regard to the measures to be taken in connection with the adoption of the decision and its implementation, including the information exchange betweeen the Commission and the Member States and the deadlines to be respected;
(b) the conformity clearance provided for in Article 54 with regard to the measures to be taken in connection with the adoption of the decision and its implementation, including the information exchange between the Commission and the Member States and the deadlines to be respected as well as the conciliation procedure provided for in that Article, including the establishment, tasks, composition and working arrangements of the conciliation body.
The implementing acts provided for in the first paragraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).
SECTION III
IRREGULARITIES
Article 56
Common Provisions
-
1.For any undue payment following the occurrence of irregularity or negligence, Member States shall request recovery from the beneficiary within one year of the first indication that such an irregular has taken place and shall record the corresponding amounts in the debtors' ledger of the paying agency.
(a) if the costs already and likely to be incurred total more than the amount to be recovered, or
(b) if recovery proves impossible owing to the insolvency, recorded and recognised under national law, of the debtor or the persons legally responsible for the irregularity.
Where the decision referred to in the first subparagraph of this paragraph is taken before the outstanding amount has been subject to the rules referred to in paragraph 2, the financial consequence of non-recovery is borne by the Union budget.
-
4.Member States shall enter in the annual accounts to be sent to the Commission under Article 102(1)(c)(iv) the amounts to be borne by them under paragraph 2 of this Article. The Commission shall check that this has been done and make any adjustments needed as part of the implementing act specified in Article 53(1).
-
5.The Commission may, by means of implementing acts, decide to exclude from Union financing sums charged to the Union budget in the following cases:
(a) if the Member State has not respected the time limits referred to in paragraph 1;
(b) if it considers that the decision not to pursue recovery taken by a Member State pursuant to paragraph 3 is not justified;
(c) if it considers that the irregularity or lack of recovery is the outcome of irregularity or negligence attributable to the administrative authorities or another official body of the Member State.
The implementing acts provided for in the first subparagraph shall be adopted in accordance with the advisory procedure referred to in Article 112(2). Before the adoption of such implementing acts, the procedure laid down in Article 54(3) shall apply.
Union financing concerned. Member States shall take into consideration the nature and gravity of the irregularities detected and the level of the financial loss to the EAFRD.
Amounts of the Union financing under the EAFRD which are cancelled and amounts recovered, as well as the interest thereon, shall be reallocated to the programme concerned. However, the cancelled or recovered Union funds may be reused by Member States only for an operation under the same rural development programme and provided the funds are not reallocated to operations which have been the subject of a financial adjustment. After the closure of a rural development programme, the Member State shall refund the sums recovered
to the Union budget.
Article 59
Delegated powers
In order to ensure correct and efficient application of the provisions relating to recovery set out in this Section, the Commission shall be empowered to adopt delegated act in accordance with Article 111 concerning specific obligations to be complied with by the Member States.
TITLE V
CONTROL SYSTEMS AND PENALTIES
Chapter I
General rules
Article 60
Protection of the financial interests of the Union
-
1.Member States shall within the framework of the common agricultural policy, adopt all legislative, regulatory and administrative provisions and take any other measures necessary to ensure effective protection of the financial interests of the Union and particularly to:
(a) check the legality and regularity of operations financed by the EAGF and the EAFRD;
(b) offer effective prevention against fraud, especially as regards the areas with a higher level of risk, and which shall act as a deterrent, having regard to the costs and benefits as well as the proportionality of the measures;
(c) prevent, detect and correct irregularities and fraud;
(d) impose penalties which are effective, dissuasive and proportionate in accordance with Union legislation, or failing this, national law, and bring legal proceedings to that effect, as necessary;
(e) recover undue payments plus interest, and bring legal proceedings to that effect as necessary.
Article 61
General principles of checks
-
1.The system set up by the Member States in accordance with Article 60(2) shall include, except where otherwise provided, systematic administrative checking of all aid applications and shall be supplemented by on-the-spot checks.
-
2.As regards the on-the-spot checks, the authority responsible shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part and a risk-based part in order to obtain a representative error rate, while targeting also highest errors.
-
3.The authority responsible shall draw up a report on each on-the-spot check.
-
4.Where appropriate, all on-the-spot checks provided for in Union rules regarding agricultural subsidies and rural development support shall be carried out at the same
time.
Article 62
Circumvention clause
Without prejudice to specific provisions, no advantage provided for under the sectoral agricultural legislation shall be granted in favour of a natural or legal person in respect of whom it is established that the conditions required for obtaining such advantages were created artificially, contrary to the objectives of that legislation.
Article 63
Compatibility of support schemes for the purposes of checks
For the purposes of applying the support schemes in the wine sector as referred to in Regulation (EU) No xxx/xxx[sCMO], Member States shall ensure that the administration and control procedures applied to those schemes are compatible with the integrated system referred to in Chapter II of this Title as regards the following elements:
Commission shall be empowered to adopt delegated acts in accordance with Article 111 concerning the situations where beneficiaries or their representatives prevent checks from being carried out.
-
2.The Commission shall, by means of implementing acts, adopt the necessary rules aiming at reaching a uniform application of this Chapter in the Union. Those rules may, in particular, relate to the following:
(a) the rules concerning administrative and on-the-spot checks to be conducted by the Member States with regard to the respect of obligations, commitments and eligibility criteria resulting from the application of Union legislation;
(b) the rules on the minimum level of on-the-spot checks necessary for an effective management of the risks, as well as the conditions under which Member States have to increase such checks, or may reduce them where the management and control systems function properly and the error rates are at an acceptable level;
(c) the rules and methods on the reporting of the checks and verification carried out and their results;
(d) the authorities responsible for performing the checks for compliance as well as to the content, the frequency and the marketing stage to which those checks shall apply;
(e) where the specific needs for proper management of the system so require, rules introducing additional requirements with respect to customs procedures, in particular as laid down in Regulation (EC) No 450/2008 of the European Parliament and of the Council
41;
(f) with regard to hemp as referred to in Article 38 of Regulation (EU) No xxx/xxx [DP], rules on the specific control measures and methods for determining tetrahydrocannabinol levels ;
(g) with regard to cotton as referred to in Article 42 of Regulation (EU) No xxx/xxx [DP], a system for checks on the approved interbranch organisations;
Article 65
Withdrawals, reductions and exclusions of aid
-
1.Where it is found that a beneficiary does not comply with the eligibility criteria or the commitments relating to the conditions for granting the aid as provided for in the sectoral agricultural legislation the aid shall be withdrawn in full or in part.
-
2.Where Union law so provides, Member States shall also impose penalties by way of reductions or exclusions of the payment or part of the payment granted or to be granted in respect of which the eligibility criteria or the commitments have been met.
The amount of the reduction of aid shall be graduated according to the severity, extent, duration and reoccurrence of the non compliance found and may go as far as total exclusion from one or several aid schemes or support measures for one or more calendar years.
-
3.The amounts concerned by the withdrawal referred to in paragraph 1 and by the penalties referred to in paragraph 2 shall be recovered in full.
Article 66
Commission powers as regards penalties
-
1.In order to strike a balance between a deterrent effect of charges and penalties to be imposed for non-compliance with any of the obligations resulting from the application of the sectoral agricultural legislation on the one hand, and a flexible application of the system on the other hand, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 concerning the rules and conditions relating to the following:
(a) the suspension of the right to participate in an aid scheme, the exclusion and suspension of payment or a reduction rate of aids, payments or refunds or any other penalty, in particular in case time limits have not been respected, the product, size or quantity is not in conformity with the application, the evaluation of a scheme or the notification of information did not take place, is incorrect or is not notified on time;
(e) the retention by Member States of the amounts recovered as penalties;
(f) the exclusion of an operator or an applicant from public intervention and private storage, from the licence application system or from the tariff quota systems in case of fraud or submission of incorrect information;
(g) the withdrawal or suspension of an approval or a recognition, in particular when an operator, producer organisation, association of producer organisations, producer group or inter-branch organisation fails to respect or no longer meets the conditions required, including failure to make notifications;
(h) the application of appropriate national penalties on operators involved in the production in excess of quotas;
(i) obvious errors, force majeure and exceptional circumstances.
-
2.The Commission shall, by means of implementing acts, adopt the following:
(a) the procedures and technical criteria related to the measures and penalties referred to in paragraph 1 where non-compliance with any of the obligations resulting from the application of the relevant legislation is found;
(b) the rules and procedures regarding the recovery of undue payments resulting from the application of the relevant legislation.
The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3) or in the corresponding Article of Regulation (EU) No xxx/xxx[DP], Regulation (EU) No xxx/xxx[RD] or Regulation (EU) No xxx/xxx[sCMO] respectively.
Article 67
(d) the conditions applying to the security to be lodged and the guarantor;
(e) specific conditions related to the security lodged in the framework of advance payments;
(f) the primary, secondary or subordinate requirements in relation to securities, as well as the consequences of breaching those requirements;
-
4.The Commission may adopt, by means of implementing acts, rules on:
(a) the form of the security to be lodged and the procedure for lodging the security, for accepting it, and for replacing the original security;
(b) the procedures for the release of a security;
(c) the notifications to be made by Member States and by the Commission.
The implementing acts referred to in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3) or in the corresponding Article of Regulation (EU) No xxx/xxx[DP], Regulation (EU) No xxx/xxx[RD] or Regulation (EU) No xxx/xxx[sCMO] respectively.
Chapter II
Integrated Administration and Control System
Article 68
Scope
-
1.Each Member State shall set up and operate an integrated administration and control system (hereinafter referred to as the `integrated system').
(b) an identification system for agricultural parcels;
(c) a system for the identification and registration of payment entitlements;
(d) aid applications;
(e) an integrated control system;
(f) a single system to record the identity of each beneficiary of the support referred to in Article 68(2) who submits an aid application or a payment claim.
-
2.Where applicable, the integrated system shall incorporate a system for the identification and registration of animals set up in accordance with Regulations (EC)
No 1760/2000 of the European Parliament and of the Council
42 and Council
Regulation (EC) No 21/200443.
-
3.Without prejudice to the responsibilities of the Member States for the implementation and application of the integrated system, the Commission may seek the assistance of specialised bodies or persons in order to facilitate the establishment, monitoring and utilisation of the integrated system, in particular with a view to providing the competent authorities of the Member States with technical advice, should they request it.
Article 70
Computerised database
-
1.The computerised database shall record, for each beneficiary of the support referred to in Article 68(2), the data obtained from aid applications and payment claims.
This database shall in particular allow consultation through the competent authority of the Member State, of the data relating to the calendar and/or marketing years, starting from 2000. It shall also allow direct and immediate consultation of the data relating to at least the previous five consecutive calendar years.
homogenous standard guaranteeing accuracy at least equivalent to cartography at a scale of
1:5000.
Article 72
System for the identification and registration of payment entitlements
-
1.The system for the identification and registration of payment entitlements shall allow for verification of the entitlements and for cross-checks with the aid applications and the identification system for agricultural parcels.
-
2.The system referred to in paragraph 1 shall allow direct and immediate consultation, through the competent authority of the Member State, of the data relating to at least the previous four consecutive calendar years.
Article 73
Aid applications and payment claims
-
1.Each year, a beneficiary of the support referred to in Article 68(2) shall submit an application for direct payments or a payment claim respectively for the relevant area and animal-related rural development measures indicating, where applicable:
(a) all the agricultural parcels on the holding, as well as the non-agricultural area for which support referred to in Article 68(2) is claimed;
(b) the payment entitlements declared for activation;
(c) any other information provided for in this Regulation or required with a view to the implementation of the relevant sectoral agricultural legislation or by the Member State concerned.
As regards the area-related payment, each Member State shall determine the minimum size of agricultural parcels in respect of which an application may be made. However, the minimum size may not exceed 0,3 ha.
-
3.A Member State may decide that a single application shall cover several or all support schemes and measures referred to in Article 68 or other support schemes and
measures.
Article 74
System for the identification of beneficiaries
The single system to record the identity of each beneficiary of support referred to in Article 68(2) shall guarantee that all aid applications and payment claims submitted by the same beneficiary can be identified as such.
Article 75
Verification of eligibility conditions and reductions
-
1.In accordance with Article 61, Member States, through the paying agencies or the bodies delegated by them, shall carry out administrative checks on the aid application to verify the eligibility conditions for the aid. Those checks shall be supplemented by on-the-spot checks.
-
2.For the purpose of on the spot checks Member States shall draw up a sampling plan of agricultural holdings and/or beneficiaries.
-
3.Member States may use remote sensing and Global Navigation Satellite System (GNSS) techniques as a means of carrying out on-the-spot checks on agricultural
parcels.
-
4.In case of non compliance with the eligibility conditions Article 65 shall apply.
Article 76
Article 77
Delegated powers
-
1.In order to ensure that the integrated system provided for in this Chapter is implemented in an efficient, coherent and non-discriminatory way which protects the financial interests of the Union, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 concerning:
(a) specific definitions needed to ensure a harmonised implementation of the integrated system;
(b) rules on any further measures to be taken by the Member States for the proper application of this Chapter as well as arrangements for any mutual assistance needed between Member States.
-
2.In order to ensure a correct distribution of the funds resulting from the aid applications provided for in Article 73 to the entitled beneficiaries and to allow for verification of the fulfilment by them of the obligations related thereto, the Commission shall, by means of delegated acts in accordance with Article 111, lay down the following:
(a) rules on the minimum size of agricultural parcels to be declared in order to reduce the administrative burden for the beneficiaries and authorities;
(b) provisions required for a harmonised definition of the basis for calculation of aid, including rules on how to deal with certain cases where eligible areas contain landscape features or trees;
(c) a derogation from Regulation (EEC, Euratom) No 1182/71 of the Council [of 3 June 1971 determining the rules applicable to periods, dates and time limits]
44
in order to safeguard the beneficiaries' rights to payments where the final date for submission of applications or amendments is a public holiday, Saturday or Sunday;
(b) provisions to ensure a harmonised and proportionate treatment of intentional irregularities, situations of minor errors, accumulation of reductions and simultaneous application of different reductions;
(c) rules providing for the non-application of refusal, reductions, exclusions in certain cases, ensuring proportionality when applying reductions;
(d) rules on the recovery of unduly paid amounts of aid and unduly allocated payment entitlements.
Article 78
Implementing powers
The Commission shall, by means of implementing acts, lay down the following:
(a) the basic features, definitions and quality requirements for the computerised database provided for in Article 70;
(b) the basic features, definitions and quality requirements for the identification system for agricultural parcels provided for in Article 71 and for the identification of the beneficiaries as provided for in Article 74;
(c) the basic features, definitions and quality requirements for the system for the identification and registration of payment entitlements provided for in Article 72;
(d) rules on the aid application and payments claims provided for in Article 73, and the application for payment entitlements, including the final date for submission of applications, the requirements as to the minimum amount of information to be included in the application, provisions for amendments to or the withdrawal of aid applications, exemption from the requirement to submit an aid application and provisions which allow Member States to apply simplified procedures or to correct obvious errors;
Chapter III
Scrutiny of transactions
Article 79
Scope and definitions
-
1.This Chapter sets specific rules on the scrutiny of the commercial documents of those entities receiving or making payments relating directly or indirectly to the system of financing by the EAGF, or their representatives, hereinafter `undertakings', in order to ascertain whether transactions forming part of the system of financing by the EAGF have actually been carried out and have been executed correctly.
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2.This Chapter shall not apply to measures covered by the integrated system referred to in Chapter II of this Title.
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3.For the purposes of this Chapter the following definitions shall apply:
(a) 'commercial documents' means all books, registers, vouchers and supporting documents, accounts, production and quality records, and correspondence relating to the undertaking's business activity, as well as commercial data, in whatever form they may take, including electronically stored data, in so far as these documents or data relate directly or indirectly to the transactions referred
to in paragraph 1;
(b) 'third party' means any natural or legal person directly or indirectly connected with transactions carried out within the financing system by the EAGF.
Article 80
Article 81
Objectives of the scrutiny
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1.The accuracy of primary data under scrutiny shall be verified by a number of cross- checks, including, where necessary, the commercial documents of third parties, appropriate to the degree of risk presented, including:
(a) comparisons with the commercial documents of suppliers, customers, carriers and other third parties;
(b) physical checks, where appropriate, upon the quantity and nature of stocks;
(c) comparison with the records of financial flows leading to or consequent upon the transactions carried out within the financing system by the EAGF; and
(d) checks, in relation to bookkeeping, or records of financial movements showing, at the time of the scrutiny, that the documents held by the paying agency as justification for the payment of aid to the beneficiary are accurate.
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2.In particular, where undertakings are required to keep particular book records of stock in accordance with Union or national provisions, scrutiny of those records shall in appropriate cases include a comparison with the commercial documents and, where appropriate, with the actual quantities in stock.
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3.In the selection of transactions to be checked, full account shall be taken of the degree of risk presented.
Article 82
Access to commercial documents
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1.The persons responsible for the undertaking, or a third party, shall ensure that all commercial documents and additional information are supplied to the officials responsible for the scrutiny or to the persons empowered for that purpose. Electronically stored data shall be provided on an appropriate data support medium.
undertaking scrutinised, whether located inside or outside Union territory, the undertaking shall make those commercial documents available to officials responsible for the scrutiny, at a place and time to be determined by the Member States responsible for carrying out the scrutiny.
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4.Member States shall ensure that officials responsible for scrutiny are entitled to seize commercial documents, or have them seized. This right shall be exercised with due regard to the relevant national provisions and shall not affect the application of rules governing proceedings in criminal matters concerning the seizure of documents.
Article 83
Mutual assistance
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1.Member States shall assist each other for the purposes of carrying out the scrutiny provided for in this Chapter in the following cases:
(a) where an undertaking or third party is established in a Member State other than that in which payment of the amount in question has or should have been made
or received;
(b) where an undertaking or third party is established in a Member State other than that in which the documents and information required for scrutiny are to be found.
The Commission may coordinate joint actions involving mutual assistance between two or more Member States.
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2.During the first three months following the EAGF financial year of payment, Member States shall send the Commission a list of undertakings established in a third country for which payment of the amount in question has or should have been made or received in that Member State.
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4.If additional information is required in another Member State as part of the scrutiny of an undertaking in accordance with Article 80, and in particular cross-checks in accordance with Article 81, specific scrutiny requests may be made indicating the reasons for the request. An overview of such specific requests shall be sent to the Commission on a quarterly basis within one month after the end of each quarter. The Commission may demand that a copy of individual requests be provided.
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2.Each year, before 15 April, the Member States shall send the Commission their programme as referred to in paragraph 1 and shall specify:
(a) the number of undertakings to be scrutinised and their breakdown by sector on the basis of the amounts relating to them;
(b) the criteria adopted for drawing up the programme.
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3.The programmes established by the Member States and forwarded to the Commission shall be implemented by the Member States, if, within eight weeks, the Commission has not made known its comments.
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4.Paragraph 3 shall aplly mutatis mutandis to the amendments to the programme made
by the Member States.
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5.At any stage, the Commission may request the inclusion of a particular category of undertaking in the programme of a Member States.
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6.Undertakings for which the sum of the receipts or payments amounted to less than EUR 40000 shall be scrutinised in accordance with this Chapter only for specific reasons to be indicated by the Member States in their annual programme referred to in paragraph 1 or by the Commission in any proposed amendment to that
programme.
Article 85
Special departments
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1.In each Member State a special department shall be responsible for monitoring the application of this Chapter. Those departments shall in particular be responsible for:
(a) the performance of the scrutiny provided for in this Chapter by officials employed directly by that special department; or
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4.Member States shall adopt appropriate measures to penalise natural or legal persons who fail to fulfil their obligations under this Chapter.
Article 86
Reports
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1.Before 1 January following the scrutiny period Member States shall send the Commission a detailed report on the application of this Chapter.
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2.The Member States and the Commission shall have regular exchanges of views on the application of this Chapter.
Article 87
Access to information and on-the-spot checks by the Commission
-
1.In accordance with the relevant national laws, Commission officials shall have access to all documents prepared either with a view to or following the scrutiny organised under this Chapter and to the data held, including those stored in the data- processing systems. Those data shall be provided upon request on an appropriate data support medium.
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2.The scrutinies referred to in Article 80 shall be carried out by the officials of the Member States. Officials of the Commission may participate in those scrutinies. They may not themselves exercise the powers of scrutiny accorded to national officials. However, they shall have access to the same premises and to the same documents as the officials of the Member States.
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3.In the case of scrutinies taking place under Article 83, officials of the requesting Member State may be present, with the agreement of the requested Member State, at the scrutiny in the requested Member State and have access to the same premises and the same documents as the officials of that Member State.
Article 88
Commission powers
-
1.In order to exclude from the application of this Chapter those measures which are by their nature unsuited for ex-post checks by way of scrutiny of commercial documents, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 establishing a list of other measures to which this Chapter does not apply, and modifying the threshold of 40000 euros referred to in Article 84(6).
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2.The Commission shall, where necessary, by means of implementing acts adopt the provisions aiming at reaching a uniform application of this Regulation in the Union, in particular relating to the following:
(a) the performance of the scrutiny referred to in Article 80 as regards the selection of undertakings, rate and calendar of scrutiny;
(b) conservation of commercial documents and the types of documents to maintain
or data to record;
(c) the performance and coordination of joint actions referred to in Article 83(1);
(d) details and specifications regarding the content, form and way of submission of requests, the content, form and way of notification, submission and exchange of information required in the framework of this Chapter;
(e) conditions and means of publication or specific rules and conditions for the diffusion or making available by the Commission to the competent authorities of the Member States of the information needed in the framework of this Regulation;
(f) responsabilities of the special department referred to in Article 85;
(g) the content of reports referred to in Article 86.
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2.Without prejudice to any specific provisions which may be adopted by the Commission, imports into the Union of the products specified in paragraph 1(a) and (b) of Article 129 of Regulation (EU) No xxx/xxx [sCMO] shall be subject to checks to determine whether the conditions provided for in paragraph 1 of that Article are met.
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3.Member States shall carry out checks, based on a risk analysis, in order to verify whether products referred to in Annex I to Regulation (EU) xxx/xxx [sCMO] conform to the rules laid down in Section I of Chapter I of Title II of Part II of Regulation (EU) No xxx/xxx[sCMO] and shall apply administrative penalties as appropriate.
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4.In order to protect Union funds and the identity, provenance and quality of Union wine, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 pertaining to:
(a) the establishment of an analytical databank of isotopic data that will help detect fraud to be constructed on the basis of samples collected by Member States; and for rules on the Member States' own databanks;
(b) rules on control bodies and the mutual assistance between them;
(c) rules on the common use of Member States' findings;
(d) rules on the application of penalties in the case of exceptional circumstances.
Article 90
Checks related to designation of origin and geographical indications
(a) the communications to be made by the Member States to the Commission;
(b) rules on the authority responsible for the verification of compliance with the product specification, including where the geographical area is in a third country;
(c) the actions to be implemented by the Member States to prevent the unlawful use of protected designations of origin and protected geographical indications;
(d) checks and verification to be carried out by the Member States, including testing.
The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3) or in the corresponding Article of Regulation (EU) No xxx/xxx[sCMO].
TITLE VI
CROSS COMPLIANCE
Chapter I
Scope
Article 91
General principle
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1.When a beneficiary referred to in Article 92 does not comply, on the holding, with the rules on cross compliance as laid down in Article 93 a penalty shall be applied to that beneficiary.
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2.The penalty referred to in paragraph 1 shall apply only in so far as
(a) the non-compliance is the result of an act or omission directly attributable to the beneficiary concerned;
(b) the non-compliance is related to the agricultural activity of the beneficiary; and
(c) the area of the holding of the beneficiary is concerned.
However, for forest areas this penalty shall not apply in so far as no support is claimed for the concerned area in accordance with Articles 22(1)(a), 31 and 35 of Regulation (EU) No xxx/xxx[RD].
Article 93
Rules on cross compliance
The rules on cross compliance shall be the statutory management requirements under Union legislation and the standards for good agricultural and environmental condition of land established at national level as listed in Annex II, relating to the following areas:
(a) environment, climate change and good agricultural condition of land;
(b) public, animal and plant health;
(c) animal welfare.
The acts referred to in Annex II in relation to the statutory management requirements shall apply as in force and, in case of Directives, as implemented by the Member States.
Directive 2000/60/EC of 23 October 2000 establishing a framework for Community action in the field of water policy will be considered as being part of Annex II once this Directive is implemented by all Member States and the obligations directly applicable to farmers have been identified. In order to take account of those elements the Commission shall be empowered to adopt delegated acts in accordance with Article 111 for the purpose of amending the Annex II within 12 months starting at the moment the last Member State has notified the implementation of the Directive to the Commission.
Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides will be considered as being part of Annex II once this Directive is implemented by all Member States and the obligations directly applicable to farmers have been identified. In order to take account of those elements the Commission shall be empowered to adopt delegated acts in accordance with Article 111 for the purpose of amending the Annex II within 12 months starting at the moment the last Member State has notified the implementation of the Directive to the Commission, including the obligations relating to integrated pest management.
obligations to be respected such as obligation to reconvert areas into permanent grassland where it is established that the ratio of land under permanent grassland is decreasing.
Furthermore, the Commission shall, by means of implementing acts, adopt the methods for the determination of the ratio of permanent grassland and agricultural land that has to be maintained. Those implementing acts shall be
adopted in accordance with the examination
procedure referred to in Article 112(3).
Article 94
Obligations of Member States relating to good agricultural and environmental condition
Member States shall ensure that all agricultural area, including land which is no longer used for production purposes, is maintained in good agricultural and environmental condition. Member States shall define, at national or regional level, minimum standards for beneficiaries for good agricultural and environmental condition of land on the basis of Annex II, taking into account the specific characteristics of the areas concerned, including soil and climatic condition, existing farming systems, land use, crop rotation, farming practices, and farm structures. Member States shall not define minimum requirements which are not established
in Annex II.
Article 95
Information to beneficiaries
Member States shall provide the beneficiaries concerned, where appropriate by the use of electronic means, with the list of and information on the rules on cross compliance to be respected.
Chapter II
Control system and penalties in relation to cross compliance
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2.Depending on the requirements, standards, acts or areas of cross compliance in question, Member States may decide to carry out administrative checks, in particular those already provided for under the control systems applicable to the respective requirement, standard, act or area of cross compliance.
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3.Member States shall carry out on-the-spot checks to verify whether a beneficiary complies with the obligations laid down in this Title.
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4.The Commission shall, by means of implementing acts, adopt rules on the carrying out of checks in order to verify compliance with the obligations referred to in this Title.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).
Article 97
Application of the penalty
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1.The penalty provided for in Article 91 shall be applied when the rules on cross compliance are not complied with at any time in a given calendar year (hereinafter referred to as `the calendar year concerned'), and the non-compliance in question is attributable to the beneficiary who submitted the aid application or the payment claim in the calendar year concerned.
The first subparagraph shall apply mutatis mutandis to beneficiaries which are found not to have complied with the rules on cross compliance, at any time during three years from 1 January of the year following the calendar year in which the first payment was granted under the support programmes for restructuring and conversion or at any time during one year from 1 January of the year following the calendar year in which the payment was granted under the support programmes for green harvesting referred to in Regulation (EU) No [sCMO] (hereinafter referred to as `the years concerned').
Where a Member State decides to make use of the option provided for in the first subparagraph, the competent authority shall, for a sample of beneficiaries, take in the following year the actions necessary to verify that the beneficiary has remedied the findings of non-compliance concerned. The finding and the obligation to take remedial action shall be notified to the beneficiary.
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4.The penalty does not affect the legality and regularity of the payments on which the reduction or exclusion applies.
Article 98
Application of the penalty in Bulgaria and Romania
For Bulgaria and Romania, the penalties referred to in Article 91 shall be applied at the latest from 1 January 2016 as regards the statutory management requirements in the area of animal welfare referred to in Annex II.
Article 99
Calculation of the penalty
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1.The penalty provided for in Article 91 shall be applied by means of reduction or exclusion of the total amount of the payments listed in Article 92 granted or to be granted to that beneficiary related to the calendar year concerned or the years concerned.
For the calculation of those reductions and exclusions account shall be taken of the severity, extent, permanence and reoccurrence of the non-compliance found as well as of the criteria set out in paragraphs 2, 3 and 4.
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2.In the case of non compliance due to negligence, the percentage of reduction shall not exceed 5 % and, in the case of repeated non-compliance, 15 %.
In duly justified cases Member States may decide that no reduction shall be applied where, given its severity, extent and duration, a case of non-compliance is to be considered as minor. However, cases of non-compliance which constitute a direct risk to public or animal health shall not be considered as minor. The finding and the obligation to take remedial action shall be notified to the beneficiary.
Article 100
Amounts resulting from cross compliance
Member States may retain 10% of the amounts resulting from the application of the reductions and exclusions referred to in Article 99.
Article 101
Delegated powers
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1.In order to ensure a correct distribution of the funds to the entitled beneficiaries, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 to establish a harmonised basis for calculation of penalties due to cross compliance, taking into account reductions due to financial discipline.
TITLE VII
COMMON PROVISIONS
Chapter I
Communication
Article 102
Communication of information
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1.In addition to the provisions laid down in the sectoral Regulations, Member States shall send to the Commission the following information, declarations and documents:
(a) for accredited paying agencies and accredited coordinating bodies:
(i) their accreditation document;
(ii) their function (accredited paying agency or accredited coordinating
body);
(iii) where relevant, the withdrawal of their accreditation,
(b) for certification bodies:
(i) their name;
(ii) their address details,
(c) for measures relating to operations financed by the EAGF and the EAFRD:
(v) a summary of the results of all available audits and checks carried out in accordance with the schedule and detailed provisions laid down in the sector specific rules.
The annual accounts of accredited paying agencies relating to EAFRD expenditure shall be submitted at the level of each programme.
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2.Member States shall inform the Commission in detail of the measures taken to implement the good agricultural and environmental condition referred to in Article 94 and the details of the farm advisory system referred to in Title III.
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3.Member State shall inform the Commission regularly of the application of the integrated system referred to in Chapter II of Title V. The Commission shall organise exchanges of views on this subject with the Member States.
Article 103
Confidentiality
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1.Member States and the Commission shall take all necessary steps to ensure the confidentiality of the information communicated or obtained under inspection and clearance of accounts measures implemented under this Regulation.
The rules laid down in Article 8 of Council Regulation (Euratom, EC) No 2185/96
47shall apply to that information.
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2.Without prejudice to national provisions relating to legal proceedings, information collected in the course of scrutiny as provided for in Chapter III of Title V shall be protected by professional secrecy. It may not be communicated to any persons other than those who, by reason of their duties in the Member States or in the institutions of the Union, are required to have knowledge thereof for the purposes of performing those duties.
(iv) the names and particulars of accredited paying agencies, accredited
coordinating bodies and certification bodies;
(v) arrangements for taking account of and paying expenditure financed by the EAGF and the EAFRD;
(vi) notifications of financial adjustments made by Member States in connection
with rural development operations or programmes, and summary reports on the recovery procedures undertaken by the Member States in response to irregularities;
(vii) information on the measures taken pursuant to Article 60.
(b) the arrangements governing exchanges of information and documents between the Commission and the Member States, and the implementation of information systems, including the type, format and content of data to be processed by these systems and the corresponding data storage rules;
(c) the notification to the Commission by Member States of information, documents, statistics and reports, as well as the deadlines and methods for their notification.
The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).
CHAPTER II
Use of the euro
Article 105
General principles
(a) the completion of customs import or export formalities in the case of amounts collected or granted in trade with third countries;
(b) the event whereby the economic objective of the operation is attained in all other cases.
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3.Where a direct payment as provided for in Regulation (EU) No DP/xxx is made to a beneficiary in a currency other than the euro, Member States shall convert the amount of aid expressed in euro into the national currency on the basis of the most recent exchange rate set by the European Central Bank prior to 1 October of the year for which the aid is granted.
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4.As regards EAGF, when drawing up their declarations of expenditure, Member States which have not adopted the euro shall apply the same exchange rate as that which they used to make payments to beneficiaries or receive revenue, in accordance with the provisions of this Chapter.
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5.In order to specify the operative event referred to in paragraph 2 or to fix it for reasons peculiar to the market organisation or the amount in question, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 containing rules on those operative events and the exchange rate to be used. The specific operative event shall be determined taking account of the following criteria:
(a) actual applicability as soon as possible of adjustments to the exchange rate;
(b) similarity of the operative events for analogous operations carried out under the market organisation;
(c) coherence in the operative events for the various prices and amounts relating to the market organisation.
(d) practicability and effectiveness of checks on the application of suitable exchange rates.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).
The European Parliament and the Council and the Member States shall be notified forthwith of the measures referred to in the first subparagraph.
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2.Where exceptional monetary practices concerning a national currency are liable to jeopardise the application of Union legislation, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 derogating from this Section, in particular in the following cases:
(a) where a country uses abnormal exchange techniques such as multiple exchange rates or operates barter agreements;
(b) where countries have currencies which are not quoted on official foreign exchange markets or where the trend in such currencies is likely to create distortion in trade.
Article 108
Use of the euro by non-euro Member States
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1.If a Member State which has not adopted the euro decides to pay the expenditure resulting from sectoral agricultural legislation in euro rather than in its national currency, the Member State shall take measures to ensure that the use of the euro does not provide a systematic advantage compared with the use of national currency.
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2.The Member State shall notify the Commission of the measures planned before they come into effect. The measures may not take effect until the Commission has notified its agreement thereto.
CHAPTER III
rural development measures provided for in Regulation (EU) No RD/xxx and of the application of the cross compliance provided for in this Regulation.
In order to ensure an effective performance measurement the Commission shall be empowered to adopt delegated acts in accordance with Article 111 regarding the content and construction of that framework.
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2.The impact of the common agricultural policy measures referred to in paragraph 1 shall be measured in relation to the following objectives:
(a) viable food production, with a focus on agricultural income, agricultural productivity and price stability;
(b) sustainable management of natural resources and climate action, with a focus on greenhouse gas emissions, biodiversity, soil and water;
(c) balanced territorial development, with a focus on rural employment, growth and poverty in rural areas.
The Commission shall define, by means of implementing acts, the set of indicators specific to the objectives referred to in the first subparagraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).
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3.Member States shall provide the Commission with all the information necessary to permit the monitoring and evaluation of the measures concerned.
The Commission shall take into account the data needs and synergies between potential data sources, in particular their use for statistical purposes when appropriate.
The Commission shall adopt, by means of implementing acts, rules on the information to be sent by the Member States, as well as on the data needs and synergies between potential data sources. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).
TITLE VIII
FINAL PROVISIONS
Article 111
Exercise of the delegation
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1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
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2.The delegation of power referred to in this Regulation shall be conferred on the Commission for an indeterminate period of time from the entry into force of this Regulation.
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3.The delegation of powers referred to in this Regulation may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
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4.As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
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5.A delegated act adopted pursuant to this Regulation shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.
Article 113
Repeal
-
1.Regulations (EEC) No 352/78, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 are repealed.
However, Article 44a of Regulation (EC) No 1290/2005 shall continue to apply.
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2.References to the repealed Regulations shall be construed as references to this Regulation and shall be read in accordance with the correlation table set out in
Annex III.
Article 114
Transitional measures
In order to ensure the smooth transition from the arrangements provided for in the repealed Regulations referred to in Article 113 to those laid down in this Regulation, the Commission shall be empowered to adopt delegated acts in accordance with Article 111.
Article 115
Entry into force and application
This Regulation shall enter into force on the seventh day following that of its publication in
the Official Journal of the European Union .
It shall apply from 1 January 2014.
However, the following provisions shall apply from 16 October 2013:
(a) Articles 7, 8 and 9;
(b) Articles 18, 42, 43 and 45 as regards expenditure incurred from 16 October 2013.
ANNEX I
Minimum scope of the farm advisory system in the field of climate change mitigation
and adaptation, biodiversity, the protection of water, animal and plant disease
notification and innovation, as laid down in Article 12(2)(c)
Requirements or actions and advices at the level of beneficiaries as defined by Member States where appropriate under:
Climate change mitigation and adaptation:
-
-Information on prospective impacts of climate change in the relevant regions, of the green house gas emissions of the relevant farming practices and on the contribution of the agricultural sector to mitigation through improved farming and agroforestry practices and through the development of renewable energy projects on farm and energy efficiency improvement on farm..
-
-Investments in physical assets as provided for under Article 18(1) (c) of Regulation
(EU) N° xx/xxx [RD].
-
-Restoration of agricultural production potential and introduction of appropriate prevention action as provided for under Article 19 of Regulation (EU) N° xx/xxx [RD].
-
-Afforestation and creation of woodland as provided for under Article 22(1)(a) of Regulation (EU) N° xx/xxx [RD].
-
-Establishment of agro-forestry systems as provide for under Article 22(1)(b) of Regulation (EU) N° xx/xxx [RD].
-
-Directive 2009/147/EC of the European Parliament and of the Council on the conservation of wild birds.
-
-Council Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora.
-
-Investments in physical assets as provided for under Article 18(1) (d) of Regulation
(EU) N° xx/xxx [RD].
-
-Establishment of agro-forestry systems as provided for under Article 22(1)(b) of Regulation (EU) N° xx/xxx [RD].
-
-Investments improving the resilience and environmental value of forest ecosystems as provided for under Article 22(1)(d) of Regulation (EU) N° xx/xxx [RD].
-
-Agri-environment operations addressing biodiversity as provided for under Article 29 of Regulation (EU) N° xx/xxx [RD].
-
-Organic farming addressing biodiversity as provided for under Article 30 of Regulation (EU) N° xx/xxx [RD].
-
-Environmental services from forests and forest conservation addressing biodiversity as provided for under Article 35 of Regulation (EU) N° xx/xxx [RD].
Protection of water:
-
-Article 11 (3) of Directive 2000/60/EC establishing a framework for Community action in the field of water policy.
-
-Proper use of plant protection product as laid down in Article 55 of Regulation (EC)
No 1107/2009, in particular the compliance with the general principles of integrated pest management as referred to in Article 14 of Directive 2009/128/EC establishing a framework for Community action to achieve the sustainable use of pesticide.
-
-Council Directive 2000/75/EC of 20 November 2000 laying down specific provisions for the control and eradication of bluetongue.
-
-Council Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community.
Innovation:
-
-Information on actions targeted towards innovation.
-
-Dissemination of the activities in the framework of the [European Innovation Partnership] Network provided for in Article 53 of Regulation (EU) N° xx/xxx [RD].
ANNEX II
Rules on cross compliance pursuant to Article 93
SMR: Statutory management requirement
GAEC: Standards for good agricultural and environmental condition of land
Area Main Issue Requirements and standards
Environment, climate change, good agricultural condition of land Water SMR 1 Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1) Articles 4 and 5
GAEC 1 Establishment of buffer strips along water courses48
GAEC 2 Where use of water for irrigation is subject to authorisation,
compliance with authorisation
procedures
GAEC 3 Protection of ground water against pollution: prohibition of direct discharge into groundwater and measures to prevent indirect pollution of groundwater through discharge on the ground and percolation through the soil of dangerous substances, as listed in the Annex to the Directive 80/68/EEC
Soil and GAEC 4 Minimum soil cover
carbon stock
GAEC 5 Minimum land management reflecting site specific conditions to limit erosion
Area Main Issue Requirements and standards
Biodiversity SMR 2 Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7) Article 3(1), Article 3(2)(b), Article 4
(1), (2) and
(4)
SMR 3 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild flora and fauna (OJ L 206, 22.7.1992, p. 7) Article 6
(1) and (2)
Landscape, minimum level
of maintenance, GAEC 8 Retention of landscape features, including where appropriate, hedges, ponds, ditches, trees in line, in group or isolated, field margins and terraces, and including a ban on cutting hedges and trees during the bird breeding and rearing season and possible measures for avoiding invasive species and pests
Public health, Food safety SMR 4 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1) Articles 14 and 15, Article 17(1)
animal health
and plant health
50 and
Articles 18,
19 and 20
SMR 5 Council Directive 96/22/EC of 29 April 1996 concerning the prohibition on the use in stockfarming of certain substances having a hormonal or thyrostatic action and beta-agonists (OJ L125, 23.5.1996, p.3) Article 3(a),
(b), (d) and
(e) and Articles 4,
5 and 7
Identification and registration of animals SMR 6 Council Directive 2008/71/EC of 15 July 2008 on identification and registration of pigs (OJ L 213, 8.8.2005, p. 31) Articles 3, 4 and 5
Area Main Issue Requirements and standards
SMR 8 Council Regulation (EC) No 21/2004 of 17 December 2003 establishing a system for the identification and registration of ovine and caprine animals (OJ L 5, 9.1.2004, p. 8) Articles 3,
4 and 5
Animal
diseases SMR 9 Regulation (EC) No 999/2001 of the European Parliament and of the Council of 22 May 2001 laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathies (OJ L 147, 31.5.2001, p. 1) Articles 7, 11, 12, 13 and 15
Plant protection products SMR 10 Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309, 24.11.2009, p.1) Article 55, first and second sentence
Animal welfare Animal welfare SMR 11 Council Directive 2008/119/EC of 18 December 2008 laying down minimum standards for the protection of calves (OJ L 10, 15.1.2009, p. 7) Articles 3 and 4
SMR 12 Council Directive 2008/120/EC of 18 December 2008 laying down minimum standards for the protection of pigs (OJ L 47, 18.2.2009, p. 5) Article 3 and Article
4
SMR 13 Council Directive 98/58/EC of 20 July 1998 concerning the protection of animals kept for farming purposes (OJ L 221, 8.8.1998, p. 23) Article 4
ANNEX III
CORRELATION TABLE
Regulation (EEC) No 352/78 This Regulation
Article 1 Article 45(1)(e)
Article 2 Article 45(2)
Article 3 Article 48(1)
Article 4 -
Article 5 -
Article 6 -
Regulation (EC) No 2799/98 This Regulation
Article 1 -
Article 2 Article 105(2) and 106
Article 3 Article 106
Article 4 -
Article 2 Article 47(2)
Article 3 -
Article 4 -
Article 5 -
Article 6 -
Article 7 -
Article 8 Article 47(5)
Article 9 -
Article 10 Articles 47(4) and 112
Article 11 -
4. Regulation (EC) No 1290/2005
Regulation (EC) No 1290/2005 This Regulation
Article 1 Article 1
Article 2 Article 3
Article 3 Article 4
Article 4 Article 5
Article 15 Article 18
Article 16 Article 42
Article 17 Article 43(1)
Article 17a Article 43(2)
Article 18 Article 24
Article 19 Article 26
Article 20 Article 27
Article 21 Article 28
Article 22 Article 31
Article 23 Article 32
Article 24 Article 33
Article 25 Article 34
Article 26 Article 35
Article 27 Article 43(1)
Article 27a Article 43(2)
Article 28 Article 36
Article 39 -
Article 40 -
Article 41 Article 112
Article 42 -
Article 43 Article 109
Article 44 Article 103
Article 44a Article 113(1)
Article 45 Article 105(1) and 106(3) and (4)
Article 46 -
Article 47 Article 113
Article 48 Article 114
Article 49 Article 115
5. Regulation (EC) No 485/2008
Regulation (EC) No 485/2008 This Regulation
Article 1 Article 79
Article 2 Article 80
Article 13 -
Article 14 -
Article 15 Article 87
Article 16 -
LEGISLATIVE FINANCIAL STATEMENT
1. - FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1. - Title of the proposal/initiative
-
-Proposal for a Regulation of the European Parliament and of the Council establishing
-
rules for direct payments to farmers under support schemes within the framework of the common agricultural policy;
-
-Proposal for a Regulation of the European Parliament and of the Council establishing a
-
common organisation of the markets in agricultural products (Single CMO Regulation);
-
-Proposal for a Regulation of the European Parliament and of the Council on support for
-
rural development by the European Agricultural Fund for Rural Development (EAFRD);
-
-Proposal for a Regulation of the European Parliament and of the Council on the
-
financing, management and monitoring of the common agricultural policy;
-
-Proposal for a Regulation of the European Parliament and of the Council amending
-
Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013;
-
-Proposal for a Council Regulation determining measures on fixing certain aids and
-
refunds related to the common organisation of the markets in agricultural products;
-
-Proposal for a Regulation of the European Parliament and of the Council amending
Council Regulation (EC) No 1234/2007 as regards the regime of the single payment scheme and support to vine-growers.
1.2. - Policy area(s) concerned in the ABM/ABB structure51
Policy Area Title 05 of Heading 2
1.4. - Objectives
1.4.1. The Commission's multiannual strategic objective(s) targeted by the proposal/initiative
In order to promote resource efficiency with a view to smart, sustainable and inclusive growth for EU agriculture and rural development in line with the Europe 2020 Strategy, the objectives
of the CAP are:
-
-Viable food production;
-
-Sustainable management of natural resources and climate action;
-
-Balanced territorial development.
1.4.2. Specific objective(s) and ABM/ABB activity(ies) concerned
Specific objectives for Policy area 05:
Specific objective No 1:
To provide environmental public goods
Specific objective No 2:
To compensate for production difficulties in areas with specific natural constraints
Specific objective No 3:
To pursue climate change mitigation and adaptation actions
Specific objective No 4:
To manage the EU budget (CAP) in accordance with high standards of financial management
Specific objectives for ABB 05 04 Rural development:
Specific objective No 7
To foster green growth through innovation
Specific objective No 8:
To support rural employment and maintain the social fabric of rural areas
Specific objective No 9
To improve the rural economy and promote diversification
Specific objective No 10
To allow for structural diversity in farming systems
1.4.3. Expected result(s) and impact
It is not possible to set quantitative targets for impact indicators at this stage. Although the policy can steer in a certain direction, the broad economic, environmental and social outcomes measured by such indicators would ultimately also depend on the impact from a range of external factors, which recent experience indicates have become significant and unpredictable. Further analysis is on-going, to be ready for the period post-2013.
As regards the direct payments, Member States will have the possibility to decide, to a limited degree, on the implementation of certain components of the direct payment schemes.
For rural development, the expected results and impact will depend on the rural development programmes that Member States will submit to the Commission. Member States will be asked to set targets in their programmes.
(c) balanced territorial development, with a focus on rural employment, growth and poverty
in rural areas.
By means of implementing acts, the Commission shall define the set of indicators specific to these objectives and areas.
Moreover, as regards rural development, a reinforced common monitoring and evaluation system is proposed. That system aims (a) to demonstrate the progress and achievements of rural development policy and assess the impact, effectiveness, efficiency and relevance of rural development policy interventions, (b) to contribute to better targeted support for rural development, and (c) to support a common learning process related to monitoring and evaluation. The Commission will establish, by means of implementing act, a list of common indicators linked to the policy priorities.
1.5. - Grounds for the proposal/initiative
1.5.1. Requirement(s) to be met in the short or long term
In order to meet the multi-annual strategic objectives of the CAP which are a direct translation of the Europe 2020 strategy for European rural areas and to fulfil the relevant requirements of the Treaty, the proposals aim to lay down the legislative framework for the Common Agricultural Policy for the period after 2013.
1.5.2. Added value of EU involvement
The future CAP will not only be a policy that caters for a small, albeit essential, part of the EU economy, but also a policy of strategic importance for food security, the environment and territorial balance. Thus, the CAP, as a truly common policy, makes the most efficient use of limited budgetary resources in maintaining a sustainable agriculture throughout the EU, addressing important cross-border issues such as climate change and reinforcing solidarity among Member States.
As mentioned in the Commission communication "A Budget for Europe 2020"53, the CAP is a
genuinely European policy. Instead of operating 27 separate agricultural policies and budgets, Member States pool resources to operate a single European policy with a single European budget. This naturally means that the CAP accounts for a significant proportion of the EU budget. However, this approach is both more efficient and economical than an uncoordinated national approach.
1.5.4. Coherence and possible synergy with other relevant instruments
The legislative proposals concerned by this financial statement should be seen in the broader context of the proposal for a single framework regulation with common rules for the common strategic framework funds (EAFRD, ERDF, ESF, Cohesion Fund and EMFF). That framework regulation will make an important contribution to reducing administrative burden, to spending EU funds in an effective way, and to put simplification into practice. This also underpins the new concepts of the common strategic framework for all these funds and the upcoming Partnership Contracts which will also cover these funds.
The common strategic framework, which will be established, will translate the objectives and priorities of the Europe 2020 Strategy into priorities for the EAFRD together with the ERDF, ESF, Cohesion Fund and EMFF, which will ensure an integrated use of the funds to deliver common objectives.
The common strategic framework will also set out coordination mechanisms with other relevant Union policies and instruments.
Moreover, as regards the CAP, significant synergies and simplification effects will be obtained by harmonising and aligning the management and control rules for the first (EAGF) and second (EAFRD) pillar of the CAP. The strong link between the EAGF and the EAFRD should be maintained and the structures already in place in the Member States be sustained.
1.6. - Duration and financial impact
x Proposal/initiative of limited duration (for the draft regulations on direct payment schemes, rural development and transitional regulations)
x Proposal/initiative in effect from 01/01/2014 to 31/12/2020
x Financial impact for the period of the next multi-annual financial framework. For rural
development, impact on payments to 2023.
x Proposal/initiative of unlimited duration (for the draft regulation on the single CMO and the horizontal regulation)
-
-national public-sector bodies/bodies with public-service mission
-
-persons entrusted with the implementation of specific actions pursuant to Title V of the
Treaty on European Union and identified in the relevant basic act within the meaning of Article 49 of the Financial Regulation
x Shared management with the Member States
Decentralised management with third countries
Joint management with international organisations (to be specified)
Comments
No substantive change compared to the present situation, i.e. the bulk of expenditure concerned by the legislative proposals on the CAP reform will be managed by shared management with the Member States. However, a very minor part will continue to fall under centralised direct management by the Commission.
2. - MANAGEMENT MEASURES
2.1. - Monitoring and reporting rules
In terms of monitoring and evaluation of the CAP, the Commission will present a report to the European Parliament and the Council every 4 years, with the first report to be presented not later than end 2017.
This is complemented by specific provisions in all areas of the CAP, with various comprehensive reporting and notifications requirements to be specified in the implementing rules.
As regards rural development, rules are also provided for monitoring at programme level, which will be aligned with the other funds, and which will be coupled with ex ante, on-going and ex post evaluations.
2.2. - Management and control system
2.2.1. Risk(s) identified
There are more than seven million beneficiaries of the CAP, receiving support under a large variety of different aid schemes, each of which having detailed and sometimes complex eligibility criteria.
The reduction in the error rate in the domain of the common agricultural policy can already be considered as a trend. Thus, most recently an error rate close to 2% confirms the overall positive assessment of previous years. It is the intention to continue the efforts in order to achieve an error rate below 2%.
2.2.2. Control method(s) envisaged
The legislative package, in particular the proposal for the regulation on the financing, management and monitoring of the common agricultural policy, envisages maintaining and reinforcing the current system established by Regulation (EC) No 1290/2005. It provides for a compulsory administrative structure at Member State level, centred around accredited paying agencies, which are responsible for carrying out controls at final beneficiary level in accordance with the principles set out under point 2.3. Every year, the head of each paying agency is required to provide a management declaration of assurance which covers the completeness, accuracy and veracity of the accounts, the proper functioning of the internal control systems and the legality and regularity of the underlying transactions. An independent audit body is required to provide an opinion on all these three elements.
As regards the cost of controls, a detailed analysis is provided in annex 8 to the impact assessment accompanying the legislative proposals.
2.3. - Measures to prevent fraud and irregularities
The legislative package, in particular the proposal for the regulation on the financing, management and monitoring of the common agricultural policy, envisages maintaining and reinforcing the current detailed systems for controls and penalties to be applied by the paying agencies, with common basis features and special rules tailored to the specificities of each aid regime. The systems generally provide for exhaustive administrative controls of 100% of the aid applications, cross-checks with other databases where this is considered appropriate as well as pre-payment on-the-spot checks of a minimum number of transactions, depending on the risk associated with the regime in question. If these on-the-spot checks reveal a high number of irregularities, additional checks must be carried out. In this context, the by far most important system is the Integrated Administration and Control System (IACS), which in financial year 2010 covered around 80% of total expenditure under the EAGF and the EAFRD. For Member States with properly functioning control systems and low error rates, the Commission will be empowered to allow for a reduction of the number of on-the-spot checks.
The package further envisages that Member States shall prevent, detect and correct irregularities and fraud, impose effective, dissuasive and proportionate penalties as laid down in Union legislation or national law, and recover any irregular payments plus interests. It includes an automatic clearance mechanism for irregularity cases, which provides that if recovery has not taken place within four years of the date of the recovery request, or within eight years in the case of legal proceedings, the amounts not recovered shall be borne by the Member State concerned. This mechanism will be a strong incentive for Member States to recover irregular payments as quickly as possible.
3. - ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
The amounts indicated in this financial statement are expressed in current prices and in commitments.
In addition to the changes resulting from the legislative proposals as listed in the accompanying tables below, the legislative proposals imply further changes which have no financial impact.
For any of the years in the period 2014-2020, the application of financial discipline cannot be excluded at this stage. However, this will not depend on the reform proposals as such, but on other factors, such as the execution of direct aids or future developments in the agricultural markets.
As concerns direct aids, the extended net ceilings for 2014 (calendar year 2013) included in the proposal regarding transition are higher than the amounts allocated to direct aids indicated in the accompanying tables. The purpose of this extension is to ensure a continuation of the existing legislation in a scenario in which all the other elements would remain unchanged, without prejudice to the possible need for applying the financial discipline mechanism.
The reform proposals contain provisions giving Member States a set degree of flexibility in relation to their allocation of direct aids respectively rural development. In case Member States decide to use that flexibility, this will have financial consequences within the given financial amounts, which cannot be quantified at this stage.
This financial statement does not take into account the possible use of the crises reserve. It should be underlined that the amounts taken into account for market-related expenditure are based on no public intervention buying-in and other measures related to a crisis situation in any sectors.
3.1. - Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
Table 1: Amounts for the CAP including complementary amounts foreseen in the MFF proposals and the CAP reform proposals
In million EUR (current prices)
Budget year 2013 2013
adjusted 2014 2015 2016 2017 2018 2019 2020 TOTAL
2014-2020
(1)
Inside MFF - - - - - - - - -
Heading 2
Direct aids and market-related expenditure (2) (3) (4) 44 939 45 304 44 830 45 054 45 299 45 519 45 508 45 497 45 485 317 193
Estimated assigned revenue 672 672 672 672 672 672 672 672 672 4 704
P1 Direct aids and market-related expenditure (with assigned revenue) 45 611 45 976 45 502 45 726 45 971 46 191 46 180 46 169 46 157 321 897
P2 Rural development (4) 14 817 14 451 14 451 14 451 14 451 14 451 14 451 14 451 14 451 101 157
Total 60 428 60 428 59 953 60 177 60 423 60 642 60 631 60 620 60 608 423 054
Heading 1
CSF Agricultural research and innovation N.A. N.A. 682 696 710 724 738 753 768 5 072
Most deprived persons N.A. N.A. 379 387 394 402 410 418 427 2 818
Total N.A. N.A. 1 061 1 082 1 104 1 126 1 149 1 172 1 195 7 889
Heading 3
Food safety N.A. N.A. 350 350 350 350 350 350 350 2 450
Outside MFF - - - - - - - - -
Reserve for agricultural crises N.A. N.A. 531 541 552 563 574 586 598 3 945
European Globalisation Fund (EGF)
Of which maximum available for agriculture: (5) N.A. N.A. 379 387 394 402 410 418 427 2 818
TOTAL - - - - - - - - -
TOTAL Commission proposals (MFF + outside MFF) + assigned revenue 60 428 60 428 62 274 62 537 62 823 63 084 63 114 63 146 63 177 440 156
TOTAL MFF proposals (i.e. excluding Reserve and EGF) + assigned revenue 60 428 60 428 61 364 61 609 61 877 62 119 62 130 62 141 62 153 433 393
Notes:
(1) Taking into account legislative changes already agreed, i.e. voluntary modulation for the UK and Article 136 "unspent amounts" will cease to apply by the end of 2013.
(2) The amounts relate to the proposed annual ceiling for the first pillar. However, it should also be noted that it is proposed to move negative expenditure from accounting clearance (currently under budget item 05 07 01 06) to assigned revenue (under item 67 03). For details, see estimated revenue table on the page below.
(3) The 2013 figures include the amounts for veterinary and phytosanitary measures as well as market measures for the fisheries sector.
(4) The amounts in the table above are in line with those in the Commission communication "A Budget for Europe 2020" (COM(2011)500 final of 29 June 2011). However, it remains to be decided if the MFF will reflect the transfer that is proposed for the envelope of one Member State of the cotton national restructuring programme to rural development as from 2014, implying an adjustment (4 million EUR per year) of the amounts for respectively the EAGF sub-ceiling and for pillar 2. In the tables in the sections below, the amounts have been transferred, irrespective of them being reflected in the MFF.
(5) In accordance with the Commission communication "A Budget for Europe 2020" (COM(2011)500 final), a total amount of up to 2.5 billion EUR in 2011 prices will be available under the European Globalisation Fund for providing additional support to farmers suffering from effects of globalisation. In the table above, the breakdown by year in current prices is only
indicative. The proposal for the inter-institutional agreement between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management (COM(2011)403 final of 29 June 2011) sets out, for the EGF, an overall maximum annual amount of 429 million EUR in 2011 prices.
3.2. - Estimated impact on expenditure
3.2.1. Summary of estimated impact on expenditure
Table 2: Estimated revenue as well as expenditure for Policy Area 05 within Heading 2
In million EUR (current prices)
Budget year 2013 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL
adjusted 2014-2020
REVENUE
123 Sugar production charge (own resources) 123 123 123 123 246
67 03 - Assigned revenue 672 672 741 741 741 741 741 741 741 5 187
of which: ex 05 07 01 06 - Accounting clearance 69 69 69 69 69 69 69 483
Total 795 795 864 864 741 741 741 741 741 5 433
EXPENDITURE
05 02 - Markets (1) 3 311 3 311 2 622 2 641 2 670 2 699 2 722 2 710 2 699 18 764
05 03 - Direct aids (before capping) (2) 42 170 42 535 42 876 43 081 43 297 43 488 43 454 43 454 43 454 303 105
05 03 Direct aids (after capping) 42 170 42 535 42 876 42 917 43 125 43 303 43 269 43 269 43 269 302 027
05 04 - Rural development (before capping) 14 817 14 451 14 455 14 455 14 455 14 455 14 455 14 455 14 455 101 185
05 04 - Rural development (after capping) 14 817 14 451 14 455 14 619 14 627 14 640 14 641 14 641 14 641 102 263
05 07 01 06 - Accounting clearance -69 -69 0 0 0 0 0 0 0 0
Total 60 229 60 229 59 953 60 177 60 423 60 642 60 631 60 620 60 608 423 054
NET BUDGET after assigned revenue - - 59 212 59 436 59 682 59 901 59 890 59 879 59 867 417 867
Notes:
(1) For 2013, preliminary estimate based on Draft Budget 2012 taking into account legal adjustments already agreed for 2013 (e.g. wine ceiling, abolition of potato starch premium, dried fodder) as well as some foreseen developments. For all years, the estimates assume that there will be no additional financing need for support measures due to market disturbances or crises.
(2) The 2013 amount includes an estimate of wine grubbing-up 2012.
Table 3: Calculation of the financial impact by budget chapter of the CAP reform proposals as regards revenue and CAP expenditure
In million EUR (current prices)
2013 2013 TOTAL
Budget year adjusted -
2014-2020 - -
2014 2015 2016 2017 2018 2019 2020
REVENUE
123 Sugar production charge (own resources) 123 123
67 03 - Assigned revenue 672 672 69 69 69 69 69 69 69 483
of which: ex 05 07 01 06 - Accounting clearance 69 69 69 69 69 69 69 483
Total 795 795 69 69 69 69 69 69 69 483
EXPENDITURE
05 02 - Markets (1) 3 311 3 311 -689 -670 -641 -612 -589 -601 -612 -4 413
05 03 - Direct aids (before capping) (2) 42 170 42 535 -460 -492 -534 -577 -617 -617 -617 -3 913
05 03 - Direct aids Estimated product of capping to be transferred to rural development -164 -172 -185 -186 -186 -186 -1 078
05 04 - Rural development (before capping) 14 817 14 451 4 4 4 4 4 4 4 28
05 04 - Rural development Estimated product of capping to be transferred from direct aids 164 172 185 186 186 186 1 078
05 07 01 06 - Accounting clearance -69 -69 69 69 69 69 69 69 69 483
Total 60 229 60 229 -1 076 -1 089 -1 102 -1 115 -1 133 -1 144 -1 156 -7 815
NET BUDGET after assigned revenue - - -1 145 -1 158 -1 171 -1 184 -1 202 -1 213 -1 225 -8 298
Notes:
(1) For 2013, preliminary estimate based on Draft Budget 2012 taking into account legal adjustments already agreed for 2013 (e.g. wine ceiling, abolition of potato starch premium, dried fodder) as well as some foreseen developments. For all years, the estimates assume that there will be no additional financing need for support measures due to market disturbances or crises.
(2) The 2013 amount includes an estimate of wine grubbing-up 2012.
Table 4: Calculation of the financial impact of the CAP reform proposals as regards CAP market-related expenditure
In million EUR (current prices)
BUDGET YEAR - Legal base Estimated
needs Changes to 2013
2013 2014 2015 2016 2017 2018 2019 2020 TOTAL
(1) 2014-2020
Exceptional measures: streamlined and extended scope of legal base Art. 154, 155, 156 pm pm pm pm pm pm pm pm pm
Removal of intervention for durum wheat and sorghum ex Art.10 pm - - - - - - - -
Food programmes for most deprived (2) Ex-Art. 27 of Reg 1234/2007 500.0 -500.0 -500.0 -500.0 -500.0 -500.0 -500.0 -500.0 -3 500.0
Private storage (Flax fibre) Art. 16 N.A. pm pm pm pm pm pm pm Pm
Aid for cotton - Restructuring (3) ex Art. 5 of Reg. 637/2008 10.0 -4.0 -4.0 -4.0 -4.0 -4.0 -4.0 -4.0 -28.0
Setting-up aid for F&V producer groups ex Art. 117 30.0 -15.0 -15.0 -30.0 -30.0 -90.0
School fruit scheme Art. 21 90.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 420.0
Abolition hops PO ex Art. 111 2.3 -2.3 -2.3 -2.3 -2.3 -2.3 -2.3 -2.3 -15.9
Optional private storage for skimmed-milk powder Art. 16 N.A. pm pm pm pm pm pm pm pm
Abolition aid for use of skimmed milk/SMP as feedingstuff/casein and use of casein ex Art. 101, 102 pm - - - - - - - -
Optional private storage for butter (4) Art. 16 14.0 [-1.0] [-14.0] [-14.0] [-14.0] [-14.0] [-14.0] [-14.0] [-85.0]
Abolition milk promotional levy ex Art. 309 pm - - - - - - - -
TOTAL 05 02
Net effect of reform proposals (5) -446.3 -446.3 -446.3 -461.3 -461.3 -476.3 -476.3 -3 213.9
Notes:
(1) The 2013 needs are estimated based on the Commission's Draft Budget 2012, except for (a) the fruit & vegetables sectors where the needs are based on the financial statement of the respective reforms and (b) any legal changes already agreed.
(2) The 2013 amount corresponds to Commission proposal COM(2010)486. As from 2014, the measure will be financed within Heading 1.
(3) The envelope for the cotton restructuring programme for Greece (4 million EUR/year) will be transferred to rural development as from 2014. The envelope for Spain (6.1 million EUR/year) will go to the Single Payment Scheme as from 2018 (already decided).
(4) Estimated effect in case of non-application of the measure.
(5) In addition to expenditure within chapters 05 02 and 05 03, it is anticipated that direct expenditure within chapters 05 01, 05 07 and 05 08 will be financed by revenue that will be assigned to the EAGF.
Table 5: Calculation of the financial impact of the CAP reform proposals as regards direct aids
In million EUR (current prices) -
Legal base Estimated needs Changes to 2013
BUDGET YEAR
2013
2013 (1) adjusted 2014 2015 2016 2017 2018 2019 2020 TOTAL
(2) 2014-2020
Direct aids 42 169.9 42 535.4 341.0 381.1 589.6 768.0 733.2 733.2 733.2 4 279.3
-
-Changes already
decided:
Phasing-in EU 12 875.0 1 133.9 1 392.8 1 651.6 1 651.6 1 651.6 1 651.6 10 008.1
Cotton restructuring 6.1 6.1 6.1 18.4
Health Check -64.3 -64.3 -64.3 -90.0 -90.0 -90.0 -90.0 -552.8
Previous reforms -9.9 -32.4 -32.4 -32.4 -32.4 -32.4 -32.4 -204.2
-
-Changes due to new CAP reform proposals -459.8 -656.1 -706.5 -761.3 -802.2 -802.2 -802.2 -4 990.3
Of which: capping -164.1 -172.1 -184.7 -185.6 -185.6 -185.6 -1 077.7
TOTAL 05 03
Net effect of reform proposals - - - - -459.8 -656.1 -706.5 -761.3 -802.2 -802.2 -802.2 -4 990.3
TOTAL EXPENDITURE - 42 169.9 42 535.4 42 876.4 42 916.5 43 125.0 43 303.4 43 268.7 43 268.7 43 268.7 302 027.3
Notes:
(1) The 2013 amount includes an estimate of wine grubbing-up 2012.
(2) Taking into account legislative changes already agreed, i.e. voluntary modulation for the UK and Article 136 "unspent amounts" will cease to apply by the end of 2013.
Table 6: Components of direct aids
In million EUR (current prices)
BUDGET YEAR - - - 2015 2016 2017 2018 2019 2020 TOTAL
2014-2020
Annex II - - - 42 407.2 42 623.4 42 814.2 42 780.3 42 780.3 42 780.3 256 185.7
Payment for agricultural practices beneficial for the climate and environment (30%)
12 866.5 12 855.3 12 844.3 12 834.1 12 834.1 12 834.1 77 068.4
Maximum that can be allocated to the Payment for young farmers (2%)
857.8 857.0 856.3 855.6 855.6 855.6 5 137.9
Basic Payment Scheme, Payment for areas with Natural Constraints, Voluntary Coupled Support
28 682.9 28 911.1 29 113.6 29 090.6 29 090.6 29 090.6 173 979.4
Maximum that can be taken from the above lines to finance the Small Farmer Scheme (10%)
4 288.8 4 285.1 4 281.4 4 278.0 4 278.0 4 278.0 25 689.3
Wine transfers included in Annex II56
159.9 159.9 159.9 159.9 159.9 159.9 959.1
Capping - - - - -164.1 -172.1 -184.7 -185.6 -185.6 -185.6 -1 077.7
Cotton - - - - 256.0 256.3 256.5 256.6 256.6 256.6 1 538.6
POSEI/Small Aegean Islands - - - - 417.4 417.4 417.4 417.4 417.4 417.4 2 504.4
56 Direct aids for the period 2014-2020 include an estimate of the wine transfers to SPS based on the decisions taken by the Member States for 2013.
Table 7: Calculation of the financial impact of the CAP reform proposals as regards transitional measures for granting direct aids in 2014
In million EUR (current prices)
BUDGET YEAR - Legal base Estimated needs Changes to
2013
2013
2013 2014
(1) adjusted
(2)
Annex IV to Council Regulation (EC) No 73/2009 40 165.0 40 530.5 541.9
Phasing-in EU 10 616.1
Health Check -64.3
Previous reforms -9.9
TOTAL 05 03
TOTAL EXPENDITURE - - 40 165.0 40 530.5 41 072.4
Notes:
(1) The 2013 amount includes an estimate of wine grubbing-up 2012.
(2) The extended net ceilings include an estimate of the wine transfers to SPS based on the decisions taken by the Member States for 2013.
Table 8: Calculation of the financial impact of the CAP reform proposals as regards rural development
In million EUR (current prices)
BUDGET YEAR - Legal base Rural development
allocation Changes to 2013
2013
2013 adjusted 2014 2015 2016 2017 2018 2019 2020 TOTAL
(1) 2014-2020
Rural development programmes 14 788.9 14 423.4
Aid for cotton - Restructuring (2) 4.0 4.0 4.0 4.0 4.0 4.0 4.0 28.0
Product of capping of direct aids 164.1 172.1 184.7 185.6 185.6 185.6 1 077.7
RD envelope excluding technical assistance (3) -8.5 -8.5 -8.5 -8.5 -8.5 -8.5 -8.5 -59.4
Technical assistance (3) 27.6 27.6 8.5 3.5 3.5 3.5 3.5 3.5 3.5 29.4
Prize for local innovative co-operation projects (4) N.A. N.A. 5.0 5.0 5.0 5.0 5.0 5.0 30.0
TOTAL 05 04
Net effect of reform proposals - - - - 4.0 168.1 176.1 188.7 189.6 189.6 189.6 1 105.7
TOTAL EXPENDITURE (before - - 14 816.6 14 451.1 14 455.1 14 455.1 14 455.1 14 455.1 14 455.1 14 455.1 14 455.1 101 185.5
capping)
TOTAL EXPENDITURE (after - - 14 816.6 14 451.1 14 455.1 14 619.2 14 627.2 14 639.8 14 640.7 14 640.7 14 640.7 102 263.2
Notes:
(1) Adjustments in line with the existing legislation only applicable until the end of financial year 2013.
(2) The amounts in table 1 (section 3.1) are in line with those in the Commission communication "A Budget for Europe 2020" (COM(2011)500 final). However, it remains to be decided if the MFF will reflect the transfer that is proposed for the envelope of one Member State of the cotton national restructuring programme to rural development as from 2014, implying an adjustment (4 million EUR per year) of the amounts for respectively the EAGF sub-ceiling and for pillar 2. In table 8 above, the amounts have been transferred, irrespective of them being reflected in the MFF.
(3) The 2013 amount for technical assistance was fixed based on the initial rural development envelope (transfers from pillar 1 not included).
Technical assistance for 2014-2020 is fixed at 0.25% of the total rural development envelope.
(4) Covered by the amount available for technical assistance.
Heading of multiannual financial
framework: 5 " Administrative expenditure "
EUR million (to 3 decimal places)
Note: It is estimated that the legislative proposals will have no impact on appropriations of an administrative nature, i.e. it is the intention that the legislative framework can be implemented with the present level of human resources and administrative expenditure.
Year Year Year Year Year Year Year
2014 2015 2016 2017 2018 2019 2020 TOTAL
DG: AGRI
Human resources 136.998 136.998 136.998 136.998 136.998 136.998 136.998 958.986
Other administrative expenditure 9.704 9.704 9.704 9.704 9.704 9.704 9.704 67.928
TOTAL DG AGRI - Appropriations 146.702 146.702 146.702 146.702 146.702 146.702 146.702 1 026.914
TOTAL appropriations
under HEADING 5 (Total commitments
of the multiannual financial framework - = Total payments) 146.702 146.702 146.702 146.702 146.702 146.702 146.702 1 026.914
EUR million (to 3 decimal places)
Year Year Year Year ... enter as many years as
N57 N+1 N+2 N+3 necessary to show the duration TOTAL
TOTAL appropriations Commitments -
under HEADINGS 1 to 5
of the multiannual financial framework - Payments -
3.2.2. Estimated impact on operational appropriations
-
-The proposal/initiative does not require the use of operational appropriations
x The proposal/initiative requires the use of operational appropriations, as explained below:
Commitment appropriations in EUR million (to 3 decimal places)
Year Year Year Year Year Year Year
2014 2015 2016 2017 2018 2019 2020 TOTAL
Indicate
objectives and OUTPUTS
outputs
Type
of -
output Average Total
cost
m be r
u t
pu t s
Cost m be r
u t
pu t s
Cost m be r
u t
pu t s
Cost m be r
u t
pu t s
Cost m be r
u t
pu t s
Cost m be r
u t
pu t s
Cost m be r
u t
pu t s
Cost number Total
of the of cost
output N u
o f
oN u
o f
oN u
o f
oN u
o f
oN u
o f
oN u
o f
oN u
o f
o
outputs
SPECIFIC OBJECTIVE No 5:
To improve the competitiveness of the agricultural sector and enhance its value share in the food chain
-
-Fruit & Propor- 830.0 830.0 830.0 830.0 830.0 830.0 830.0 5 810.0
vegetables: tion of
Marketing the
through value of
producer produc-
organisations tion
(POs)marke-
58
ted
through
POs in
value of
58 Based on past execution and estimates in the 2012 Draft Budget. For the producer organisations in the fruit & vegetables sector, the amounts are in line with the reform of that sector and, as already indicated in the activity statements of the 2012 Draft Budget, outputs will only be known in late 2011.
the total
produc-
tion
-
-Wine: National Number 54 326 475.1 54 326 475.1 54 326 475.1 54 326 475.1 54 326 475.1 54 326 475.1 54 326 475.1 3 326.0
envelope of
Restructuring58 hectares
-
-Wine: National 1 147 178.9 1 147 178.9 1 147 178.9 1 147 178.9 1 147 178.9 1 147 178.9 1 147 178.9 1 252.6
envelope
Investments58
-
-Wine: National Hecto- 700 000 98.1 700 000 98.1 700 000 98.1 700 000 98.1 700 000 98.1 700 000 98.1 700 000 98.1 686.4
envelope By-litres
product
distillation58
-
-Wine: National Number 32 754 14.2 32 754 14.2 32 754 14.2 32 754 14.2 32 754 14.2 32 754 14.2 32 754 14.2 14.2
envelope of
Potable hectares
alcohol58
-
-Wine: National Hecto- 9 37.4 9 37.4 9 37.4 9 37.4 9 37.4 9 37.4 9 37.4 261.8
envelope Use
of concentrated litres
must58
-
-Wine: National 267.9 267.9 267.9 267.9 267.9 267.9 267.9 1 875.3
envelope
promotion58
-
-Other 720.2 739.6 768.7 797.7 820.3 808.8 797.1 5 452.3
Sub-total for specific objective N°5 2 621.8 2 641.2 2 670.3 2 699.3 2 721.9 2 710.4 2 698.7 18 763.5
SPECIFIC OBJECTIVE No 6:
To contribute to farm incomes and
limit farm income variability
-
-Direct income Number 161.014 42 876.4 161.014 43 080.6 161.014 43 297.1 161.014 43 488.1 161.014 43 454.3 161.014 43 454.3 161.014 43 454.3 161.014 303 105.0
support59 of
hectares
paid
(in
million)
Sub-total for specific objective N°6 42 876.4 43 080.6 43 297.1 43 488.1 43 454.3 43 454.3 43 454.3 303 105.0
TOTAL COST
Note: For specific objectives 1 to 4 and 7 to 10, the outputs are still to be determined (see section 1.4.2 above).
3.2.3. Estimated impact on appropriations of an administrative nature
3.2.3.1. Summary
-
-The proposal/initiative does not require the use of administrative
appropriations
x The proposal/initiative requires the use of administrative appropriations, as
explained below:
EUR million (to 3 decimal places)
Year Year Year Year Year Year Year
2014 2015 2016 2017 2018 2019 2020 TOTAL
HEADING 5
of the multiannual -
financial framework
Human resources 60 136.998 136.998 136.998 136.998 136.998 136.998 136.998 958.986
Other administrative expenditure
9.704 9.704 9.704 9.704 9.704 9.704 9.704 67.928
Subtotal HEADING 5
of the multiannual
financial framework
Outside HEADING 5
of the multiannual -
financial framework
Human resources -
3.2.3.2. Estimated requirements of human resources
-
-The proposal/initiative does not require the use of human resources
x The proposal/initiative requires the use of human resources, as explained
below:
Note: It is estimated that the legislative proposals will have no impact on
appropriations of an administrative nature, i.e. it is the intention that the legislative framework can be implemented with the present level of human resources and administrative expenditure. The figures for the period 2014- 2020 are based on the situation for 2011.
Estimate to be expressed in full amounts (or at most to one decimal place) -
Year Year Year Year Year Year Year
2014 2015 2016 2017 2018 2019 2020
Establishment plan posts (officials and temporary agents)
XX 01 01 01 (Headquarters and Commission's Representation Offices)
1 034 1 034 1 034 1 034 1 034 1 034 1 034
XX 01 01 02 (Delegations) 3 3 3 3 3 3 3
XX 01 05 01 (Indirect research)
10 01 05 01 (Direct research)
External personnel (in Full Time Equivalent unit: FTE)61
XX 01 02 01 (CA, INT, SNE from the "global envelope")
78 78 78 78 78 78 78
XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations)
-
-at Headquarte rs
XX 01 04
with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
Officials and temporary agents
3.2.4. Compatibility with the current multiannual financial framework
x Proposal/initiative is compatible with the PROPOSALS FOR THE 2014-
2020 multiannual financial framework.
-
-Proposal/initiative will entail reprogramming of the relevant heading in the
multiannual financial framework.
-
-Proposal/initiative requires application of the flexibility instrument or revision
of the multiannual financial framework.
3.2.5. Third-party contributions
The proposal/initiative does not provide for co-financing by third parties
X The proposal regarding rural development (EAFRD) provides for the co-
financing estimated below:
Appropriations in EUR million (to 3 decimal places)
Year Year Year Year Year Year Year
2014 2015 2016 2017 2018 2019 2020 Total
Specify the co-financing body
MS MS MS MS MS MS MS MS
TOTAL appropriations To be To be To be To be To be To be To be
cofinanced 63 determindetermindetermindetermindetermindetermindeterminTo be
ed ed ed ed ed ed ed determined
3.3. - Estimated impact on revenue
x Proposal/initiative has no financial impact on revenue.
-
-Proposal/initiative has the following financial impact:
-
-x on own resources
-
-x on miscellaneous revenue
EUR million (to 3 decimal places)
Appropriations Impact of the proposal/initiative64
Budget revenue line: available for the
ongoing budget Year Year Year Year ... insert as many columns as necessary
year N N+1 N+2 N+3 in order to reflect the duration of the
impact (see point 1.6)
For miscellaneous assigned revenue, specify the budget expenditure line(s) affected.
| publicatiedatum | 19-10-2011 |
|---|---|
| kenmerk | 15426/1/11 REV 1 |
