TEXT PROPOSED BY THE COMMISSION AMENDMENTS

Amendment 1 Proposal for a regulation — amending act Recital 1

(1) In the context of the assessment of the implementation of the common agricultural policy (CAP) reform of 2003, climate change, renewable energies, water management and biodiversity were identified as crucial new challenges for European agriculture. (1) In the context of the assessment of the implementation of the common agricultural policy (CAP) reform of 2003, climate change, renewable energies, water management, biodiversity and discontinuation of milk quotas were identified as crucial new challenges for European agriculture.

Amendment 2 Proposal for a regulation — amending act Recital 5

(5) It is important that operations related to these priorities are further strengthened in the rural development programmes approved in accordance with Council Regulation (EC) No 1698/2005. (5) Where Member States' existing rural development programmes do not include sufficient and relevant measures as indicated in Annex II, it is important that operations related to these priorities are further strengthened in the rural development programmes approved in accordance with Council Regulation (EC) No 1698/2005.

Amendment 3 Proposal for a regulation — amending act Recital 5a (new)

(5a) The 2007 Eurobarometer survey entitled ‘Attitudes of EU citizens towards Animal Welfare’ shows that a large majority (72 %) of EU citizens believe that farmers should be remunerated for the increased costs that can result from higher animal welfare standards. In addition, the Protocol on protection and welfare of animals annexed to the Treaty establishing the European Community by the Treaty of Amsterdam requires that, in formulating and implementing agriculture policies, the Community and the Member States must pay full regard to the welfare requirements of animals.

Amendment 4 Proposal for a regulation — amending act Recital 6

(6) Given the importance of these Community priorities, the obligation for the Member States to provide in rural development programmes for operations related to the new challenges should be set out. (6) Given the importance of these Community priorities, Member States should provide in rural development programmes for a greater proportion of operations related to the new challenges to be set out, but only if, to date, Member States have not yet attached sufficient importance to those Community priorities .

Amendment 5 Proposal for a regulation — amending act Recital 7

(7) Article 10 of Regulation (EC) No 1698/2005 provides that, with a view to taking account of major changes in the Community priorities in particular, the Community strategic guidelines for rural development (programming period 2007 to 2013) adopted by Council Decision 2006/144/EC may be subject to review. Therefore, a general obligation for the Member States to revise the national strategy plans following the review of the Community strategic guidelines should be set out in order to arrange the context for the programmes to be modified. (7) Article 10 of Regulation (EC) No 1698/2005 provides that, with a view to taking account of major changes in the Community priorities in particular, the Community strategic guidelines for rural development (programming period 2007 to 2013) adopted by Council Decision 2006/144/EC may be subject to review. Therefore, the Member States that have not already adopted relevant measures should be encouraged to revise the national strategy plans following the review of the Community strategic guidelines in order to arrange the context for the programmes to be modified.

Amendment 6 Proposal for a regulation — amending act Recital 9

(9) In view of the new obligations, the requirements on the content of the rural development programmes should be adapted. A non-exhaustive list of types of operations should be provided in order to help the Member States to identify the relevant operations related to the new challenges in the context of the legal framework for rural development. (9) In view of the new obligations, the requirements on the content of the rural development programmes should be adapted where necessary . A non-exhaustive list which can subsequently be extended, depending on Member States' requirements , of types of operations should be provided in order to help the Member States to identify the relevant operations related to the new challenges in the context of the legal framework for rural development.

Amendment 7 Proposal for a regulation — amending act Recital 9a (new)

(9a) It is also appropriate to adapt Regulation (EC) No 1698/2005 with regard to natural handicap payments in mountain areas and payments in other areas with handicaps. The present scheme on the basis of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) ( 1 ) , which is to apply during the new support period until 2009, should be continued until the end of the current support period.

Amendment 8 Proposal for a regulation — amending act Recital 10

(10) In order to provide additional incentives to beneficiaries for the uptake of operations related to the new priorities, the possibility to establish higher amounts and rates of support for such operations should be given. (10) In order to provide additional incentives to beneficiaries for the uptake of operations related to the new priorities, the possibility to establish support for such operations without additional national cofinancing should be given. The same option should be applicable by the Member States for the transfer of innovation from applied research .

Amendment 9 Proposal for a regulation — amending act Recital 11

(11) In accordance with Article 9(4) and Article 10(4) of Council Regulation (EC) No XXXX/XXXX of XX/XX/2008 [establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers] financial resources raised by way of the additional modulation are to be used for rural development support. It is appropriate to ensure that an amount equal to those financial resources should be used to support operations related to the new challenges. (11) In accordance with Article 9(4) and Article 10(4) of Council Regulation (EC) No XXXX/XXXX of XX/XX/2008 [establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers] financial resources raised by way of the additional modulation, where not already provided for by those Member States applying national voluntary modulation under Council Regulation (EC) 378/2007 (2), are to be used for rural development support. It is appropriate to ensure that an amount equal to those financial resources should be used to support both existing and new operations related to the new challenges according to the decisions of each Member State. However, care must be taken not to deter farm production where its contribution to rural development is vital .

Amendment 10 Proposal for a regulation — amending act Recital 11a (new)

(11a) Those operations should be congruent with operations funded from other Community resources, in particular from the Structural Funds (European Regional Development Fund, European Social Fund and Cohesion Fund).

Amendment 11 Proposal for a regulation — amending act Recital 12

(12) Given the additional, specific and binding use of these amounts equal to those financial resources , the established balance between objectives of the support for rural development should not be affected. (12) Given the additional and specific use of these equal amounts, the established balance between objectives of the support for rural development must not be affected; accordingly, when resources related to the new priorities are being used, the balance between objectives defined in Article 17 of Regulation (EC) No 1698/2005 should be preserved .

Amendment 12 Proposal for a regulation — amending act Recital 12a (new)

(12a) In order to ensure adequate funding for rural development programmes, greater flexibility should be introduced to enable, moreover, the use, within the same Member State, of unspent resources of the Structural Funds (Heading 1b) for this purpose.

Amendment 28 Proposal for a regulation — amending act Article 1 — point –1 (new) Regulation (EC) No 1698/2005 Article 5 — paragraph 7

(–1) In Article 5, paragraph 7 is replaced by the following:

7. The Member States shall ensure that the operations financed by the EAFRD are in conformity with the Treaty and any acts adopted under it. To that end, all operations financed by the EAFRD shall be targeted directly at farmers .

Amendment 13 Proposal for a regulation — amending act Article 1 — point 2 Regulation (EC) No 1698/2005 Article 12a — paragraph 1

1. Each Member State shall revise, in accordance with the procedure referred to in Article 12(1), its national strategy plan following the review of the Community strategic guidelines as referred to in Article 10. 1. In consultation with its sub-national levels of government , each Member State shall be invited to revise, in accordance with the procedure referred to in Article 12(1), its national strategy plan following the review of the Community strategic guidelines as referred to in Article 10.

Amendment 14 Proposal for a regulation — amending act Article 1 — point 3 Regulation (EC) No 1698/2005 Article 16a — paragraph 1 — subparagraph 1 — introductory section

1. From 1 January 2010 , Member States shall provide in their rural development programmes, in accordance with their specific needs, for types of operations having the following priorities as described in the Community strategic guidelines and specified further in the national strategy plan: 1. Where such provision is not already made Member States shall, from 1 January 2010, present in their rural development programmes, in accordance with their specific needs, types of operations having the following priorities as described in the Community strategic guidelines and specified further in the national strategy plan:

Amendment 15 Proposal for a regulation — amending act Article 1 — point 3 Regulation (EC) No 1698/2005 Article 16a — paragraph 1 — subparagraph 1 — point d)

(d) biodiversity. (d) preservation and sustainable use of biodiversity.

Amendment 29 Proposal for a regulation — amending act Article 1 — point 3 Regulation (EC) No 1698/2005 Article 16a — paragraph 1 — subparagraph 1a (new)

All operations shall be targeted directly at farmers.

Amendment 16 Proposal for a regulation — amending act Article 1 — point 3 Regulation (EC) No 1698/2005 Article 16a — paragraph 1 — subparagraph 2

Member States may base their choice on the indicative list of types of operations set out in Annex II of this Regulation and/or any other types of operations provided that those operations are linked to the priorities referred to in the first subparagraph and are aimed at achieving the potential effects specified in Annex II. In consultation with their sub-national levels of government , Member States may base their choice on the indicative list of types of operations set out in Annex II of this Regulation and/or any other types of operations, including those in the area of inland fisheries , provided that those operations are linked to the priorities referred to in the first subparagraph and are aimed at achieving the potential effects specified in Annex II.

Amendment 17 Proposal for a regulation — amending act Article 1 — point 3 Regulation (EC) No 1698/2005 Article 16a — paragraph 1 — subparagraph 2a (new)

Member States shall ensure that synergies are achieved with similar operations funded from other Community resources, in particular from the Structural Funds, and, where appropriate, shall develop integrated approaches with regard to strategies, measures and financing.

Amendment 18 Proposal for a regulation — amending act Article 1 — point 3a (new) Regulation (EC) No 1698/2005 Article 16b (new)

(3a) The following Article 16b is inserted:

Article 16b

Innovation and transfer of knowledge from applied research

1. From 1 January 2010, the Member States shall provide in their rural development programmes, in the light of their specific needs, types of operation targeting the transfer of innovation from applied research to the rural economy.

2. From 1 January 2010, for types of operation referred to in paragraph 1, the aid intensity rates fixed in Annex I may be increased by 10 percentage points.

Amendment 19 Proposal for a regulation — amending act Article 1 — point 4a (new) Regulation (EC) No 1698/2005 Article 30

(4a) Article 30 is replaced by the following:

Article 30

Infrastructure relating to the development and adaptation of agriculture and forestry

Support provided for in Article 20(b)(v) may cover notably operations related to access to farm and forest land, land consolidation and improvementenergy supply, access to information and communication technologies , and water management

Amendment 20 Proposal for a regulation — amending act Article 1 — point 4b (new) Regulation (EC) No 1698/2005 Article 36 — point (a) — introductory part

(4b) The introductory part of Article 36(a) is replaced by the following:

(a) measures targeting the sustainable use of agricultural land, including inland fisheries , through:

Amendment 30 Proposal for a regulation — amending act Article 1 — point 4c (new) Regulation (EC) No 1698/2005 Article 39 — paragraph 5a (new)

(4c) In Article 39 the following paragraph 5a is added:

5a. Support may be provided for the conservation of valuable agricultural crops and animals in terms of cultural history for operations not covered by the provisions under paragraphs 1 to 4.

Amendment 21 Proposal for a regulation — amending act Article 1 — point 7 Regulation (EC) No 1698/2005 Article 69 — paragraph 5a

(5a) An amount equal to the amounts resulting from the application of the compulsory modulation under Articles 9(4) and 10(4) of Regulation (EC) [No XXXX/2008 (new Regulation on direct support schemes)] shall be spent by Member States in the period from 1 January 2010 to 31 December 2015 as Community support under the current rural development programmes for operations of the types referred to in Article 16a of this Regulation approved after 1 January 2010 . (5a) An amount equal to the amounts resulting from the application of the compulsory modulation under Articles 9(4) and 10(4) of Regulation (EC) [No XXXX/2008 (new Regulation on direct support schemes)] shall be allocated by Member States in the period from 1 January 2010 to 31 December 2015 as Community support under the current rural development programmes for both existing and new operations related to the new challenges in line with the decision taken by each Member State .

Amendment 32 Proposal for a regulation — amending act Article 1 — point 7 Regulation (EC) No 1698/2005 Article 69 — paragraph 5b

(5b) If at the closure of the programme, the total amount spent on the operations referred to in paragraph 5a of this Article is lower than the amount referred to in Article 16a(3)(b), the difference shall be reimbursed by the Member State to the Community budget up to the amount by which the total allocations available for operations other than those referred to in Article 16a have been exceeded. deleted

Amendment 22 Proposal for a regulation — amending act Article 1 — point 7a (new) Regulation (EC) no 1698/2005 Article 70 — paragraph 4b (new)

(7a) In Article 70, the following paragraph 4b is inserted:

4b. Notwithstanding the ceilings set out in paragraph 3, an amount equal to the funds resulting from the application of the compulsory modulation under Articles 9(4) and 10(4) of Regulation (EC) [No XXXX/2008 (new Regulation on direct support schemes)] may be used without additional national cofinancing.

Amendment 23 Proposal for a regulation — amending act Article 1 — point 9a (new) Regulation (EC) No 1698/2005 Article 93

(9a) Article 93 is replaced by the following:

Article 93

Repeal

[…] Regulation (EC) No 1257/1999 shall be repealed with effect from 1 January 2007 with the exception of Articles 13(a), 14(1) and the first two indents of Article 14(2), 15, 17 to 20, 51(3) and 55(4) and the part of Annex I which specifies the amounts under Article 15(3). […]

References made to the repealed Regulation shall be construed as being made to this Regulation.

Regulation (EC) No 1257/1999 shall continue to apply to actions approved by the Commission under that Regulation before 1 January 2007. […]

Amendment 24 Proposal for a regulation — amending act Article 1 — point 10 — point aa (new) Regulation (EC) No 1698/2005 Annex — table — line 1

(aa) Line 1 is replaced by the following:

22, paragraph 2 Start-up aid (3) 75 000

Amendment 25 Proposal for a regulation — amending act Annex Regulation (EC) No 1698/2005 Annex II - Priority: renewable energies — line 4 a (new)

Production and use of solar, wind and geothermic power and combined heat and power Article 26: modernisation of agricultural holdings Article 53: diversification into non-agricultural activities Article 54: support for business creation and development Article 56: basic services for the rural economy and population Replacement of fossil fuels

Amendment 26 Proposal for a regulation — amending act Annex Regulation (EC) No 1698/2005 Annex II — Priority: water management — line 1 a (new)

Flood risk management Article 39: agri-environment payments Article 41: non-productive investments Improving capacity to manage water in the event of floods

Amendment 27 Proposal for a regulation — amending act Annex Regulation (EC) No 1698/2005 Annex II — New Priority