Proposal for a Regulation of the European Parliament and of the Council on fixing an adjustment rate for direct payments provided for in Council Regulation (EC) No 73/2009 in respect of calendar year 2014

The Treaty on the Functioning of the European Union lays down the fundamental rule governing Union financing that the annual budget of the Union must comply with the Multiannual Financial Framework (MFF).

In order to support the agricultural sector in case of major crises affecting the agricultural production or distribution, a reserve for crises should be established by applying, at the beginning of each year, a reduction to direct payments through a financial discipline mechanism which is provided for in Article 26 of Regulation (EU) No 1306/2013 of 17 December 2013 of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy. Article 25 of this regulation determines that the total amount of the reserve for crises in agricultural sector shall be €2,800 million with equal annual instalments of €400 million (at 2011 prices) for the period 2014-2020 and shall be included under Heading 2 of the Multiannual Financial Framework.

The amount of the reserve to be included in the Commission 2015 Draft Budget amounts to €433 million in current prices, covered via a reduction to direct payments listed in Annex I to Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers.

In drawing up the 2015 Draft Budget, the first budgetary estimates for direct payments and market related expenditure showed that the sub-ceiling under heading 2 for financial year 2015, after financial transfers between EAGF and EAFRD, is not likely to be exceeded and thus there is no need for further financial discipline.

On the basis of the above, the Commission presents a proposal for setting the adjustment rate for direct payments in respect of calendar year 2014, which in accordance with Article 26(3) of Regulation (EU) No 1306/2013 is to be adopted by the European Parliament and the Council by 30 June 2014. If this adjustment rate has not been set by 30 June 2014, pursuant to the same Article the Commission will set that rate.

• Primary Source

EUR-Lex: COM(2014)175: Follow the progress of this proposal through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:175:FIN

---