Press Release: CAP financing simplified and made more efficient

Comments by the European Commission on the adoption of a regulation on the financing of the Common Agricultural Policy from 2007 at the Agriculture Council on 30 May 2005. Bringing the different existing rules together under one single regulation was expected to considerably simplify CAP financing. The new system was designed to reinforce and modernise management and control of CAP finances, to strengthen budgetary discipline and to improve possibilities for recovering irregularly spent EU money. The new regulation created two funds that were to apply the same rules wherever possible: the European Agricultural Guarantee Fund (EAGF), and the European Agricultural Fund for Rural Development (EAFRD).

• Primary Source

European Commission: COM(2004) 489, Proposal for a Council Regulation on the financing of the common agricultural policy http://ec.europa.eu/comm/agriculture/capreform/finprop_en.pdf

European Commission: DG Agriculture and Rural Development http://ec.europa.eu/agriculture/index_en.htm

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