Proposal for a Council Regulation amending Regulation (EC) No 73/2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003
Date: 2009-06-29
Institutions: European Commission
Subjects: aid system, aid to agriculture, common agricultural policy, farmers' income, production aid, standardised accounting system, viticulture

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.6.2009 
COM(2009) 321 final 

2009/0084 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 73/2009 establishing common rules for direct support 
schemes for farmers under the common agricultural policy and establishing certain 
support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) 
No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 

EN 

   EN 

 
 
 
  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The aim of the proposal is to clarify two aspects of interpretation found in Articles 11 
and 69(5) of Council Regulation (EC) No 73/2009. 

•  General context 

Article  11  of  Regulation  (EC)  No 73/2009  establishes  the  mechanism  of  financial 
discipline  which  provides  for  an  adjustment  of  the  direct  payments  when  the 
forecasts  indicate  that  the  sub-ceiling  for  direct  aids  and  market  measures,  under 
heading  2  of  Annex  I  to  the  Interinstitutional  Agreement  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound 
financial management1, with a safety margin of EUR 300 000 000, is exceeded. The 
sub-ceiling under heading 2 covers expenditure for direct aids before all transfers to 
rural development. Therefore, the expenditure to be compared with the ceiling for the 
adjustment  should  be  done  before  modulation  and  the  transfers  to  the  rural 
development.  Consequently,  a  correct  comparison  of  expenditure  to  the  ceiling 
should also include the possible transfer to the European Agricultural Fund for Rural 
Development,  referred  to  in  Article  136  of  Regulation  (EC)  No 73/2009,  and  the 
amounts  resulting  from  Article 190a(2)  of  Council  Regulation  (EC)  No 1234/2007 
concerning financial transfers to rural development in the wine sector. 

The  first  sub-paragraph  of  Article 69(5)  of  Regulation  (EC)  No 73/2009  derogates 
from Article 69(4) of that Regulation in relation to the use of Articles 68 and 69 of 
Regulation (EC) No 1782/2003. The purpose of this derogation is to set a transitional 
period  for  a  gradual  adaptation  of  the  support  in  the beef  and  veal sector.  This 
derogation should therefore be limited to cases where Article 69 of Regulation (EC) 
No 1782/2003 has been used mainly for supporting the beef and veal sector. 

•  Existing provisions in the area of the proposal 

Regulation (EC) No 73/2009 establishing common rules for direct support schemes 
for  farmers  under  the  common  agricultural  policy  and  establishing  certain  support 
schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, 
(EC) No 378/2007 and repealing Regulation (EC) No 1782/2003.  

•  Consistency with the other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

•  Collection and use of expertise 

There was no need for consultation of interested parties or for external expertise. 

1 

OJ C 139, 14.6.2006, p. 1. 

EN 

2 

   EN 

 
                                                 
•  Impact assessment 

Not applicable. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

A technical correction has to be introduced to the calculation formula of Article 11 
(Financial  discipline)  in  order  to  take  into  account  the  transfers  to  Rural 
Development  foreseen  in  Article  23  of  Council  Regulation  (EC)  No 479/2008  and 
Article 136  of  Council  Regulation  (EC)  No 73/2009.  This  adjustment  has  already 
been introduced in Article 12 of Council Regulation (EC) No 1290/2005. 

In addition, an adjustment of Article 69(5) is proposed in order to comply with point 
6.6 of the Final Presidency compromise on Health Check proposals. 

•  Legal basis 

Article 37(2) of the Treaty establishing the European Community. 

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Community.  The 
subsidiarity principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle. 

•  Choice of instruments 

Proposed instrument: Council Regulation. 

Other means would not be adequate for the following reason: a Regulation must be 
amended by a Regulation. 

4. 

BUDGETARY IMPLICATIONS 

This measure does not involve any additional Community expenditure.  

A technical correction has to be introduced to the calculation formula of Article 11 
(Financial  discipline)  in  order  to  take  into  account  the  transfers  to  Rural 
Development  foreseen  in  Article  23  of  Council  Regulation  (EC)  No  479/2008  and 
Article 136  of  Council  Regulation  (EC)  No 73/2009.  This  adjustment  has  already 
been introduced in Article 12 of Council Regulation (EC) No 1290/2005. 

In  addition,  an  adjustment  of  Article  69(5)  is  proposed  in  order  to  comply  with 
point 6.6 of the Final Presidency compromise on Health Check proposals. 

5. 

ADDITIONAL INFORMATION 

•  Simplification 

Not applicable. 

EN 

3 

   EN 

 
2009/0084 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 73/2009 establishing common rules for direct support 
schemes for farmers under the common agricultural policy and establishing certain 
support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) 
No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 37 thereof, 

Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

Article  11  of  Council  Regulation  (EC)  No  73/20093  establishes  the  mechanism  of 
financial discipline which provides for an adjustment of the direct payments when the 
forecasts  indicate  that  the  sub-ceiling  for  direct  aids  and  market  measures,  under 
heading 2  of  Annex I  to  the  Interinstitutional  Agreement  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound 
financial management4, with a safety margin of EUR 300 000 000, is exceeded. 

The sub-ceiling under heading 2 covers expenditure for direct aids before all transfers 
to rural development. Therefore, the expenditure to be compared with the ceiling for 
the  adjustment  should  be  done  before  modulation  and  the  transfers  to  the  rural 
development. Therefore, a correct comparison of expenditure to the ceiling should also 
include 
the  European  Agricultural  Fund  for  Rural 
Development,  referred  to  in  Article 136  of  Regulation  (EC)  No 73/2009,  and  the 
amounts resulting from Article 190a(2) of Council Regulation (EC) No 1234/2007 of 
22 October 2007  establishing  a  common  organisation  of  agricultural  markets  and  on 
specific  provisions  for  certain  agricultural  products  (Single  CMO  Regulation)5 
concerning financial transfers to rural development in the wine sector. 

the  possible 

transfer 

to 

The  first  sub-paragraph  of  Article 69(5)  of  Regulation  (EC)  No 73/2009  derogates 
from  Article  69(4)  of  that  Regulation  in  relation  to  the  use  of  Articles 68  and  69  of 
Regulation (EC) No 1782/2003. The purpose of this derogation is to set a transitional 
period  for  a  gradual  adaptation  of  the  support  in  the beef  and  veal sector.  This 
derogation  should  therefore  be  limited  to  cases  where  Article 69  of  Regulation  (EC) 
No 1782/2003 has been used mainly for supporting the beef and veal sector. 

2 
3 
4 
5 

OJ C , , p. . 
OJ L 30, 31.1.2009, p. 16. 
OJ C 139, 14.6.2006, p. 1. 
OJ L 299, 16.11.2007, p. 1. 

EN 

4 

   EN 

 
                                                 
(4) 

Regulation (EC) No 73/2009 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Regulation (EC) No 73/2009 is amended as follows: 

(1) 

Article 11(1) is replaced by the following: 

Article 1 

"1.  With  a  view  to  ensuring  that  the  amounts  for  the  financing  of  the  market 
related expenditure and direct payments of the CAP currently under heading 2 
of  Annex  I  to  the  Interinstitutional  Agreement  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and 
sound  financial  management*  respect  the  annual  ceilings  set  out  in  the 
Decision  2002/929/EC  of  the  Representatives  of  the  Governments  of  the 
Member States, meeting within the Council of 18 November 2002, concerning 
the  Conclusions  of  the  European  Council  meeting  in  Brussels  on  24  and  25 
October  2002**,  an  adjustment  of  the  direct  payments  shall  be  determined 
when  the  forecasts  for  the  financing  of  the  aforementioned  measures  under 
heading 2 for a given financial year, increased by the amounts given in Article 
190a of Regulation (EC) No 1234/2007 and the amounts given in Articles 134 
and  135  and  the  amounts  referred  to  in  Article  136  of  this  Regulation  and 
before  application  of  modulation  provided  for  in  Articles  7  and  10  of  this 
Regulation and Article 1(1) of Regulation (EC) No 378/2007, indicate that the 
applicable  abovementioned  annual  ceiling,  taking  into  account  a  margin  of 
EUR 300 000 000 below that ceiling, will be exceeded. 

* 
** 

OJ C 139, 14.6.2006, p. 1. 
OJ L 323, 28.11.2002, p. 48.” 

(2) 

In Article 69(5), the first subparagraph is replaced by the following: 

"By  way  of  derogation  from  paragraph  4,  during  calendar  years  2010  to  2013,  in 
those  Member  States  which  granted  support  with  regard  to  suckler  cows  in 
accordance  with  Article  69  of  Regulation  (EC)  No  1782/2003  while  not  having 
applied the option provided for in Article 68(2)(a)(i) of that Regulation, and in that 
connection  used  more  than  50%  of  the  amounts  established  in  accordance  with 
Article 69  of  that  Regulation  for  the  beef  and  veal  sector,  the  limit  set  out  in 
paragraph 4 of this Article shall be set at 6% of their national ceiling referred to in 
Article 40 of this Regulation. Furthermore, in Member States where more than 60% 
of their milk production takes place north of the 62nd parallel, that limit shall be set 
at 10% of their national ceiling referred to in Article 40 of this Regulation." 

This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

EN 

5 

   EN 

 
Done at Brussels,  

For the Council 
The President

EN 

6 

   EN 

 
 
 
FINANCIAL STATEMENT 

1. 

BUDGET HEADING: 

05 03 Direct Aids 

2. 

TITLE: 

AGRI/I.1-D/95345 (HA) 
6.15.2009.1  

DATE: 29/04/2009 
APPROPRIATIONS 

Proposal for a Council Regulation amending Regulation (EC) No 73/2009establishing common rules for direct 
support schemes for farmers under the common agricultural policy and establishing certain support schemes for 
farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing 
Regulation (EC) No 1782/2003. 

3. 

4. 

5. 

5.0 

LEGAL BASIS: 
Article 37 of the Treaty establishing the European Community 
AIMS: 
To introduce some technical adjustments to Regulation No 73/2009. 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

(EUR million) 
- 

5.1  REVENUE 

- 

- 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

CURRENT 
FINANCIAL 
YEAR 
2008 
(EUR million) 
- 

FOLLOWING FINANCIAL 
YEAR 
2009 
(EUR million) 

- 

- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

- 

2010 
- 
- 

2011 
- 
- 

2012 
- 
- 

2013 
- 
- 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 

YES NO 

YES NO 
YES NO 
YES NO 

This Regulation does not involve any additional Community expenditure.  

A technical correction has to be introduced to the calculation formula of Article 11(Financial discipline) in order to take 
into account the transfers to Rural Development foreseen in Article 23 of Regulation 479/2008 and Article 136 of 
Regulation 73/2009. This adjustment has already been introduced in Art. 12 of Regulation 1290/2005. 

In addition, an adjustment of Art. 69(5) is proposed, in order to comply with point 6.6 of the Final Presidency 
compromise on Health Check proposals. 

EN 

7 

   EN