Report from the Commission to the European Parliament and the Council on EAGF expenditure – Early Warning System No 11-12/2016

On the basis of the provisions of Article 43 of Regulation (EU) No 1306/2013, revenue originating from financial corrections under accounting and conformity clearance decisions, from irregularities and from the milk levy are designated as revenue assigned to the financing of EAGF expenditure. According to these provisions, assigned revenue can be used to cover the financing of any EAGF expenditure. If part of this revenue is not used within the budget year, then this part will be automatically carried forward to the following budget year. It should be noted that budget year 2016 is the final year when the revenue originating from the milk levy is collected, due to the expiry of the milk quotas on 31 March 2015.

The provisional implementation of the 2016 European Agricultural Guarantee Fund (EAGF) budget is presented in the Annex with expenditure amounting to €43,899.1 million. This amount mainly includes EAGF expenditure under shared management as declared by Member States between 16 October 2015 to 15 October 2016 and the reductions of monthly reimbursements imposed in the course of the budget year. It further includes an estimate of direct expenditure, amounting to approximately €10.9 million, which is still foreseen to be made until 31 December 2016.