Report from the Commission to the European Parliament and the Council on EAGF expenditure. Early Warning System No 7-9/2013

On the basis of the rules of Article 34 of Council Regulation (EC) No 1290/2005 on the financing of the Common Agricultural Policy, revenue originating from financial corrections under conformity clearance decisions, from irregularities and from the milk levy are designated as revenue assigned to the financing of EAGF expenditure. According to these rules, assigned revenue can be used to cover the financing of any EAGF expenditure. In the event part of this revenue is not used, then, this part will be automatically carried forward to the following budget year.

The 2013 EAGF budget included both the Commission's latest estimates of the needs to finance the expected expenditure for market measures and direct aids, and the estimates of the assigned revenue, which was expected to be collected in the course of the budget year concerned and the carryover of the balance of assigned revenue left available from the previous budget year.

In its proposal for the amount of EAGF appropriations for the 2013 budget, the Commission took into consideration the total expected assigned revenue and requested for the 2013 budget a level of appropriations calculated by deducting the estimated assigned revenue from the estimated needs. The Budgetary Authority adopted the new EAGF budget taking account of the expected assigned revenue. At the time of establishing the budget for 2013, the Commission’s estimates for the available assigned revenue amounted to €1,533 million.

The provisional execution of the 2013 EAGF budget's appropriations, for the period up to 31 July 2013, shows that monthly reimbursements to Member States exceeded the expenditure profile for budget execution based on the indicator, by approximately €1,022.7 million.

Assigned revenue amounting to €1,869.9 million is already available, and additional amounts are still expected to be collected in 2013. At this point in time, the Commission considers that the amount of assigned revenue which will be available at the end of the year will be sufficient to cover the funding of the operational funds for producer organisations and of the single payment scheme as originally expected when the 2013 budget was established and the expected needs in the other lines such as the accounting clearance of accounts.

EUR-Lex: COM(2013)717: Follow the progress of this report through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2013:717:FIN

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