Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 378/2007 as regards the rules for the implementation of voluntary modulation of direct payments under the common agricultural policy
Date: 2010-12-22
Institutions: European Commission
Subjects: EU financing arrangements, aid system, aid to agriculture, common agricultural policy, farmers' income, rural development

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EUROPEAN COMMISSION 

Brussels, 22.12.2010 
COM(2010) 772 final 

2010/0372 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 378/2007 as regards the rules for the 
implementation of voluntary modulation of direct payments under the common 
agricultural policy 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Alignment to the Treaty on the Functioning of the European Union (TFEU): 

The  Treaty  on  the  Functioning  of  the  European  Union  (the  Treaty)  makes  a  distinction 
between  the  powers  delegated  to  the  Commission  to  adopt  non-legislative  acts  of  general 
application to supplement or amend certain non-essential elements of the legislative act as laid 
down  in  Article  290(1)  of  the  Treaty  (delegated  acts),  and  the  powers  conferred  upon  the 
Commission to adopt uniform conditions for implementing legally binding Union acts as laid 
down in Article 291(2) of the Treaty (implementing acts).  

In the case of delegated acts, the legislator delegates to the Commission the power to adopt 
quasi-legislative acts. In the case of implementing acts, the context is very different. Indeed, 
Member States are primarily responsible for the implementation of legally binding acts of the 
European Union. However, if the application of the legislative act requires uniform conditions 
for its implementation the Commission is authorised to adopt these acts. 

The alignment exercise of Regulation (EC) No 378/2007 on new rules of the Treaty is based 
on  a  classification  on  the  basis  of  the  new  philosophy  of  the  current  Commission 
implementing  powers.  The  classification  has  shown  that  all  powers  conferred  to  the 
Commission by this regulation are to adopt implementing acts. 

Following this exercise, a draft proposal for amendment of Regulation (EC) No 378/2007 has 
been  prepared.  The  general  principles,  methods  of  calculation,  regional  application  and  the 
use of the modulated amounts are determined by the Legislator.  

Member  States  are,  in  accordance  with  Article  291  of  the  Treaty,  responsible  for 
implementing the regime established by the Legislator. However, it seems necessary to ensure 
uniform implementation of the voluntary modulation scheme. Therefore, the Legislator gives 
the Commission powers to fix, in accordance with Article 291, paragraph 2 of the Treaty, the 
net amounts resulting from the voluntary modulation (Article 4(1)) and to adopt detailed rules 
on  the  integration  of  voluntary  modulation  in  the  rural  development  programming  (Article 
6(a)) and financial management of voluntary modulation (Article 6(b)). 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

•  Consultation of interested parties 

•  Collection and use of expertise 

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

•  Impact assessment 

No need of impact assessment. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

Identify  the  delegated  and  implementing  powers  of  the  Commission  in  Council 
Regulation  (EC)  No  378/2007  and  establish  the  corresponding  procedure  for 
adoption of these acts. 

•  Legal basis 

Article 43 of the Treaty on the Functioning of the European Union. 

•  Subsidiarity principle 

The proposal complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle. 

•  Choice of instruments 

Proposed  instrument:  Regulation  of  the  European  Parliament  and  of  the  Council. 
Other means would not be adequate for the following reason: a Regulation must be 
amended by a Regulation. 

4. 

BUDGETARY IMPLICATION 

This measure does not involve any additional Union expenditure. 

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2010/0372 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 378/2007 as regards the rules for the 
implementation of voluntary modulation of direct payments under the common 
agricultural policy  

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 43(2) thereof, 

Having regard to the proposal from the Commission1, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

Council  Regulation  (EC)  No  378/2007  of  27  March  2007  laying  down  rules  for 
voluntary  modulation  of  direct  payments  provided  for  in  Regulation  (EC)  No 
1782/2003 establishing common rules for direct support schemes under the common 
agricultural  policy  and  establishing  certain  support  schemes  for  farmers4  confers 
powers  on  the  Commission  in  order  to  implement  some  of  the  provisions  of  that 
Regulation. 

As a consequence of the entry into force of the Lisbon Treaty, the powers conferred 
under  Regulation  (EC)  No  378/2007  upon  the  Commission  need  to  be  aligned  to 
Articles  290  and  291  of  the  Treaty  on  the  Functioning  of  the  European  Union  (the 
Treaty).  

In  order  to  guarantee  a  uniform  application  of  voluntary  modulation  of  direct 
payments  in  all  Member  States,  the  Commission  should  be  empowered  to  adopt 
implementing acts in accordance with Article 291 of the Treaty. Save where explicitly 
provided  otherwise,  the  Commission  should  adopt  those  implementing  acts  in 

1 
2 
3 
4 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 95, 5.4.2007, p. 1.  

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(4) 

(5) 

accordance  with  the  provisions  of  Regulation  (EU)  No  [xxxx/yyyy]  of  the  European 
Parliament  and  the  Council  on…  [to  be  completed  following  the  adoption  of  the 
regulation  on  control  mechanisms,  as  referred  to  in  Article  291(3)  of  the  TFEU, 
currently the subject of discussion by the European Parliament and the Council]. 

In  order  to  ensure  the  efficient  implementation  of  voluntary  modulation  the 
Commission  should,  by  means  of  implementing  acts,  fix  the  net  amounts  resulting 
from  the  application  of  voluntary  modulation.  Given  the  nature  of  the  envisaged 
implementing acts, the Commission should adopt those acts without the assistance of a 
committee.  

For  the  same  reason  the  Commission  should  be  empowered  to  adopt  implementing 
acts  with  the  assistance  of  the  Rural  Development  Committee  established  by  article 
91c of Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for 
rural  development  by  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD)5 to ensure the integration of voluntary modulation in the rural development 
programming.  Furthermore,  the  Commission  should  be  empowered  to  adopt 
implementing  acts  with  the  assistance  of  the  Committee  on  the  Agricultural  funds 
established by Article 42d(1) of Council Regulation (EC) 1290/2005 of 21 June 2005 
on  the  financing  of  the  common  agricultural  policy6,  to  ensure  the  financial 
management of voluntary modulation. 

(6) 

Regulation (EC) No 378/2007 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EC) No 378/2007 is amended as follows: 

Article 1 

(1) 

In Article 4(1), the introductory phrase is replaced by the following: 

"The  net  amounts  resulting  from  the  application  of  voluntary  modulation  shall  be 
fixed by the Commission, by means of implementing acts without the assistance of a 
committee, based on:" 

(2) 

Article 6 is replaced by the following: 

"Article 6 

1. 

The  Commission  shall,  by  means  of  implementing  acts  in  accordance  with  the 
procedure referred to in Article 91c of Regulation (EC) No 1698/2005, adopt specific 
provisions  for  the  integration  of  voluntary  modulation  in  the  rural  development 
programming. 

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OJ L 277, 21.10.2005, p. 1 
OJ L 209, 11.8.2005, p. 1 

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2. 

The  Commission  shall,  by  means  of  implementing  acts  in  accordance  with  the 
procedure  referred  to  in  Article  42d(3)  of  Regulation  (EC)  No  1290/2005,  adopt 
specific provisions for the financial management of voluntary modulation." 

This Regulation shall enter into force on the twentieth 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. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President

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FINANCIAL STATEMENT 

1. 

BUDGET HEADING: 

05 03 Direct Aids 
05 04 Rural Development 

AGRI/I.1-D/852099(MB/tm) 
6.15.2010.1  

DATE: 03/11/2010 
APPROPRIATIONS 

2. 

3. 

4. 

5. 

5.0 

TITLE: 
Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 
378/2007 as regards the rules for the implementation of voluntary modulation of direct payments under the 
common agricultural policy 
LEGAL BASIS: 
Article 43 of the Treaty on the Functioning of the European Union (TFUE) 
AIMS: 
To align the Commission implementing powers in Council Regulation (EC) No 378/2007 to the differentiation 
between delegated and implementing powers introduced by Article 290 and 291 of the Treaty on the Functioning 
of the European Union (TFUE) 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 
2010 
(EUR million) 
- 

FOLLOWING FINANCIAL 
YEAR 
2011 
(EUR million) 

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 
- 

- 

- 

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 

The proposal aims at aligning the Commission powers given in the Council Regulation (EC) No 378/2007 to the 
differentiation between delegated and implementing powers introduced by Article 290 and 291 of the Treaty on the 
Functioning of the European Union (TFUE). This does not entail any change to the community budget. 

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