Report from the Commission to the European Parliament and the Council on the implementation of the scheme of specific measures for agriculture in favour of the outermost regions of the Union (POSEI)

Due to their geographical situation (remoteness, insularity, smaller size, difficult topography and climate), the outermost regions (OR) are faced with specific socio-economic problems related to the supply of food and agricultural products essential for consumption or agricultural production.

The situation of the OR is acknowledged in Article 349 of the Treaty on the Functioning of the European Union. Several specific measures were established in various policies to mitigate the existing handicaps, to support economic and social development, and to facilitate access to the benefits of the Single Market. In this context, specific measures for agriculture have been implemented through the scheme called POSEI (Programme of options specific to the remote and insular nature of the outermost regions).

The POSEI scheme was created for the French overseas departments (Guadeloupe, Martinique, French Guiana, Reunion and since 2014, Mayotte) in 1989, and introduced in 1991 for the Canary Islands, the Azores and Madeira. In 2006 Council Regulation (EC) No 247/2006 deeply modified the scheme in order to optimize the food supply and the local agricultural products by a programming approach. The Regulation was modified several times to take into account the 2006 sugar and banana CMO review, the Health Check Reform in 2009 as well as other transfers of direct aids in 2007 and 2008. Some provisions of the POSEI scheme were revised in 2013 within the alignment with the Lisbon Treaty.

The POSEI Scheme is financed by the European Agricultural Guarantee Fund (EAGF). Regulation (EU) No 228/2013 of the European Parliament and the Council, adopted on 13 March 2013, sets an annual ceiling for each Member State: French OD: €278.41 million, Canary Islands: €268.42 million and Azores and Madeira: €106.21 million. A one-off additional amount for the banana sector of €40 million was exceptionally granted for 2013. In the OR, the POSEI programme replaces the measures of the first pillar of the CAP, except those included in the Common Market Organisation (CMO) for fruit and vegetables, wine and beekeeping.

The present implementation report concerns the application of the scheme during the 2006-2014 period.