Proposal for a COUNCIL REGULATION determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products
Date: 2011-10-12
Institutions: European Commission
Subjects: agricultural production, aid to agriculture, export refund, farm price support, milk product, production refund, reform of the CAP, rice

EUROPEAN COMMISSION 

Brussels, 12.10.2011 
COM(2011) 629 final 

2011/0287 (NLE) 

Proposal for a 

COUNCIL REGULATION 

determining measures on fixing certain aids and refunds related to the common 
organisation of the markets in agricultural products 

{SEC(2011) 1153} 
{SEC(2011) 1154} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  Commission  proposal  for  the  Multiannual  Financial  Framework  (MFF)  for  2014-2020 
(the  MFF  proposal)1  sets  the  budgetary  framework  and  main  orientations  for  the  Common 
Agricultural Policy (CAP). On this basis, the Commission presents a set of regulations laying 
down the legislative framework for the CAP in the period 2014-2020, together with an impact 
assessment of alternative scenarios for the evolution of the policy.  

The current reform proposals are based on the Communication on the CAP towards 20202 that 
outlined broad policy options in order to respond to the future challenges for agriculture and 
rural areas and to meet the objectives set for the CAP, namely 1) viable food production; 2) 
sustainable  management  of  natural  resources  and  climate  action;  and  3)  balanced  territorial 
development.  The  reform  orientations  in  the  Communication  have  since  been  broadly 
supported both in the inter-institutional debate3 and in the stakeholder consultation that took 
place in the framework of the impact assessment.  

A common theme that has emerged throughout this process is the need to promote resource 
efficiency with a view to smart, sustainable and inclusive growth for EU agriculture and rural 
areas  in  line  with  the  Europe  2020  strategy,  keeping  the  structure  of  the  CAP  around  two 
pillars that use complementary instruments in pursuit of the same objectives. Pillar I covers 
direct payments and market measures providing a basic annual income support to EU farmers 
and support in case of specific market disturbances, while Pillar II covers rural development 
where  Member  States  draw  up  and  co-finance  multiannual  programmes  under  a  common 
framework.4 

Through  successive  reforms  the  CAP  has  increased  market  orientation  for  agriculture  while 
providing  income  support  to  producers,  improved  the  integration  of  environmental 
requirements  and  reinforced  support  for  rural  development  as  an  integrated  policy  for  the 
development  of  rural  areas  across  the  EU.  However,  the  same  reform  process  has  raised 
demands for a better distribution of support among and within Member States, as well as calls 
for  a  better  targeting  of  measures  aiming  at  addressing  environmental  challenges  and  better 
addressing increased market volatility.  

In the past, reforms mainly responded to endogenous challenges, from huge surpluses to food 
safety crises; they have served the EU well both on the domestic and the international front. 
However, most of today's challenges are driven by factors that are external to agriculture and 
would thus require a broader policy response. 

1 

2 

3 

4 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  A  budget  for  Europe  2020, 
COM(2011)500 final, 29.6.2011.  
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions The CAP towards 2020: meeting 
the food, natural resources and territorial challenges of the future, COM(2010)672 final, 18.11.2010. 
See  in  particular  the  European  Parliament  resolution  of  23  June  2011,  2011/2015(INI),  and  the 
Presidency conclusions of 18.3.2011. 
The current legislative framework comprises Council Regulation (EC) No 73/2009 (direct payments), 
Council Regulation (EC) No 1234/2007 (market instruments), Council Regulation (EC) No 1698/2005 
(rural development) and Council Regulation (EC) No 1290/2005 (financing).  

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The pressure on agricultural income is expected to continue as farmers are facing more risks, 
a slowdown in productivity and a margin squeeze due to rising input prices; there is therefore 
a  need  to  maintain  income  support  and  to  reinforce  instruments  to  better  manage  risks  and 
respond to crisis situations. A strong agriculture is vital for the EU food industry and global 
food security. 

At the same time, agriculture and rural areas are being called upon to step up their efforts to 
meet  the  ambitious  climate  and  energy  targets  and  biodiversity  strategy  that  are  part  of  the 
Europe 2020 agenda. Farmers, who are together with foresters the main land managers, will 
need  to  be  supported  in  adopting  and  maintaining  farming  systems  and  practices  that  are 
particularly favourable to environmental and climate objectives because market prices do not 
reflect the provision of such public goods. It will also be essential to best harness the diverse 
potential of rural areas and thus contribute to inclusive growth and cohesion. 

The future CAP will not, therefore, be a policy that caters only for a small, albeit essential, 
part  of  the  EU  economy,  but  also  a  policy  of  strategic  importance  for  food  security,  the 
environment  and  territorial  balance.  Therein  lies  the  EU  added  value  of  a  truly  common 
policy  that  makes  the  most  efficient  use  of  limited  budgetary  resources  in  maintaining  a 
sustainable  agriculture  throughout  the  EU,  addressing  important  cross-border  issues  such  as 
climate  change  and  reinforcing  solidarity  among  Member  States,  while  also  allowing 
flexibility in implementation to cater for local needs.  

The framework set out in the MFF proposal foresees that the CAP should maintain its two-
pillar structure with the budget for each pillar maintained in nominal terms at its 2013 level 
and with a clear focus on delivering results on the key EU priorities. Direct payments should 
promote sustainable production by assigning 30 % of their budgetary envelope to mandatory 
measures  that  are  beneficial  to  climate  and  the  environment.  Payment  levels  should 
progressively converge and payments to large beneficiaries be subject to progressive capping. 
Rural  development  should  be  included  in  a  Common  Strategic  Framework  with  other  EU 
shared  management  funds  with  a  reinforced  outcome-orientated  approach  and  subject  to 
clearer,  improved  ex-ante  conditionalities.  Finally,  on  market  measures  the  financing  of  the 
CAP should be reinforced with two instruments outside the MFF: 1) an emergency reserve to 
react  to  crisis  situations;  and  2)  the  extension  of  the  scope  of  the  European  Globalization 
Adjustment Fund.  

On this basis, the main elements of the legislative framework for the CAP during the period 
2014-2020 are set out in the following regulations:  

– 

– 

– 

Proposal for a Regulation of the European Parliament and of the Council establishing 
rules for direct payments to farmers under support schemes within the framework of 
the common agricultural policy ('the direct payments regulation'); 

Proposal for a Regulation of the European Parliament and of the Council establishing 
a  common  organisation  of  the  markets  in  agricultural  products  (Single  CMO 
Regulation) ('the Single CMO regulation'); 

Proposal for a Regulation of the European Parliament and of the Council on support 
for  rural  development  by  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD) ('the rural development regulation'); 

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– 

– 

– 

– 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the 
financing,  management  and  monitoring  of  the  common  agricultural  policy  ('the 
horizontal regulation'); 

Proposal  for  a  Council  regulation  determining  measures  on  fixing  certain  aids  and 
refunds related to the common organisation of the markets in agricultural products; 

Proposal for a Regulation of the European Parliament and of the Council amending 
Council Regulation (EC) No 73/2009 as regards the application of direct payments to 
farmers in respect of the year 2013; 

Proposal for a Regulation of the European Parliament and of the Council amending 
Council Regulation (EC) No 1234/2007 as regards the regime of the single payment 
scheme and support to vine-growers.  

The rural development regulation builds on the proposal presented by the Commission on 6 
October 2011 that sets out common rules for all funds operating under a Common Strategic 
Framework5.  A  regulation  will  follow  on  the  scheme  for  most  deprived  persons,  for  which 
funding is now placed under a different heading of the MFF.  

In addition, new rules on the publication of information on beneficiaries taking account of the 
objections expressed by the Court of Justice of the European Union are also under preparation 
with a view to finding the most appropriate way to reconcile beneficiaries' right to protection 
of personal data with the principle of transparency.  

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENT 

On  the  basis  of  the  evaluation  of  the  current  policy  framework  and  an  analysis  of  future 
challenges  and  needs,  the  impact  assessment  assesses  and  compares  the  impact  of  three 
alternative scenarios. This is the result of a long process started in April 2010 and steered by 
an  inter-service  group  that  brought  together  extensive  quantitative  and  qualitative  analysis, 
including setting a baseline in the form of medium-term projections for agricultural markets 
and  income  up  to  2020  and  modelling  the  impact  of  the  different  policy  scenarios  on  the 
economics of the sector. 

The  three  scenarios  elaborated  in  the  impact  assessment  are:  1)  an  adjustment  scenario  that 
continues  with  the  current  policy  framework  while  addressing  its  most  important 
shortcomings,  such  as  the  distribution  of  direct  payments;  2)  an  integration  scenario  that 
entails  major  policy  changes  in  the  form  of  enhanced  targeting  and  greening  of  direct 
payments  and  reinforced  strategic  targeting  for  rural  development  policy  in  better 
coordination with other EU policies, as well as extending the legal base for a broader scope of 
producer cooperation; and 3) a refocus scenario that reorients the policy exclusively towards 
the environment with a progressive phasing out of direct payments, assuming that productive 

5 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  laying  down  common 
provisions  on  the  European  Regional  Development  Fund,  the  European  Social  Fund,  the  Cohesion 
Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries 
Fund  covered  by  the  Common  Strategic  Framework  and  laying  down  general  provisions  on  the 
European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing 
Regulation (EC) No 1083/2006, COM(2011)615 of 6.10.2011. 

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capacity can be maintained without support and that the socio-economic needs of rural areas 
can be served by other policies. 

Against the background of the economic crisis and the pressure on public finances, to which 
the  EU  has  responded  with  the  Europe  2020  strategy  and  the  MFF  proposal,  all  three 
scenarios  attach  different  weight  to  each  of  the  three  policy  objectives  of  the  future  CAP 
which  aims  at  a  more  competitive  and  sustainable  agriculture  in  vibrant  rural  areas.  With  a 
view  to  a  better  alignment  with  the  Europe  2020  strategy,  notably  in  terms  of  resource 
efficiency,  it  will  be  increasingly  essential  to  improve  agricultural  productivity  through 
research,  knowledge  transfer  and  promoting  cooperation  and  innovation  (including  through 
the European Innovation Partnership on agricultural productivity and sustainability). Whereas 
EU  agricultural  policy  does  not  any  more  operate  within  a  trade  distorting  policy 
environment, additional pressure on the sector is expected from further liberalization, notably 
in the framework of the DDA or the FTA with Mercosur.  

The three policy scenarios were drawn up taking into account the preferences expressed in the 
consultation which was conducted in the context of the impact assessment. Interested parties 
were  invited  to  submit  contributions  between  23.11.2010  and  25.1.2011  and  an  advisory 
committee was organised on 12.1.2011. The main points are summarized below:6  

–  There  is  broad  agreement  among  stakeholders  on  the  need  for  a  strong  CAP  based  on  a 
two-pillar-structure  in  order  to  address  the  challenges  of  food  security,  sustainable 
management of natural resources and territorial development. 

–  Most respondents find that the CAP should play a role in stabilizing markets and prices.  

–  Stakeholders  have  diverse  opinions  concerning  the  targeting  of  support  (especially 

redistribution of direct aid and capping payments).  

–  There  is  agreement  that  both  pillars  can  play  an  important  role  in  stepping  up  climate 
action  and  increasing  environmental  performance  for  the  benefit  of  EU  society.  Whereas 
many farmers believe that this already takes place today, the wider public argues that Pillar 
I payments can be more efficiently used. 

–  The respondents want all parts of the EU, including less favoured areas, to be part of future 

growth and development.  

–  The  integration  of  the  CAP  with  other  policies,  such  as  environmental,  health,  trade, 

development, was emphasised by many respondents. 

–  Innovation,  development  of  competitive  businesses  and  provision  of  public  goods  to  EU 

citizens are seen as ways to align the CAP with the Europe 2020 strategy. 

The impact assessment thus compared the three alternative policy scenarios: 

The refocus scenario would accelerate structural adjustment in the agricultural sector, shifting 
production  to  the  most  cost  efficient  areas  and  profitable  sectors.  While  significantly 
increasing funding for the environment, it would also expose the sector to greater risks due to 
limited scope for market intervention. Furthermore, it would come at a significant social and 

6 

See Annex 9 of the impact assessment for an overview of the 517 contributions received. 

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environmental cost as the less competitive areas would face a considerable income loss and 
environmental  degradation,  since  the  policy  would  lose  the  leverage  of  direct  payments 
coupled with the cross compliance requirements.  

At  the  other  end  of  the  spectrum,  the  adjustment  scenario  would  best  allow  for  policy 
continuity  with  limited  but  tangible  improvements  both  in  agricultural  competitiveness  and 
environmental  performance.  There  are  however  serious  doubts  as  to  whether  this  scenario 
could  adequately  address  the  important  climate  and  environmental  challenges  of  the  future, 
which also underpin the long-term sustainability of agriculture. 

The  integration  scenario  breaks  new  ground  with  enhanced  targeting  and  greening  of  direct 
payments.  The  analysis  shows  that  greening  is  possible  at  a  reasonable  cost  to  farmers 
although  some  administrative  burden  cannot  be  avoided.  Similarly,  a  new  impetus  in  rural 
development  is  possible  provided  that  the  new  possibilities  are  efficiently  used  by  Member 
States and regions and that the common strategic framework with the other EU funds does not 
remove synergies with Pillar I or weaken rural development's distinctive strengths. If the right 
balance is struck, this scenario would best address the long term sustainability of agriculture 
and rural areas.  

On  this  basis  the  impact  assessment  concludes  that  the  integration  scenario  is  the  most 
balanced in progressively aligning the CAP with the EU's strategic objectives and this balance 
is  also  found  in  the  implementation  of  the  different  elements  in  the  legislative  proposals.  It 
will also be essential to develop an evaluation framework to measure the performance of the 
CAP with a common set of indicators linked to policy objectives. 

Simplification  has  been  an  important  consideration  throughout  the  process  and  should  be 
enhanced  in  a  variety  of  ways,  for  instance  in  the  streamlining  of  cross  compliance  and 
market  instruments,  or  the  design  of  the  small  farmers  scheme.  In  addition,  the  greening  of 
direct  payments  should  be  designed  in  such  a  way  as  to  minimize  administrative  burden 
including the costs of controls.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

It  is  proposed  to  maintain  the  current  structure  of  the  CAP  in  two  pillars  with  annual 
mandatory  measures  of  general  application  in Pillar I complemented by voluntary measures 
better  tailored  to  national  and  regional  specificities  under  a  multi-annual  programming 
approach  in  Pillar  II.  However,  the  new  design  of  direct  payments  seeks  to  better  exploit 
synergies  with  Pillar  II,  which  is  in  turn  placed  under  a  Common  Strategic  Framework  to 
better coordinate with other EU shared management funds.  

On  this  basis,  the  current  structure  of  four  basic  legal  instruments  is  also  maintained,  albeit 
with the scope of the financing regulation enlarged to bring together common provisions into 
what is now called the horizontal regulation.  

The proposals comply with the principle of subsidiarity. The CAP is a truly common policy: it 
is an area of shared competence between the EU and the Member States that is being handled 
at EU level with a view to  maintaining a sustainable  and  diverse agriculture throughout  the 
EU,  addressing  important  cross-border  issues  such  as  climate  change  and  reinforcing 
solidarity among Member States. In the light of the importance of future challenges for food 
security,  the  environment  and  territorial  balance,  the  CAP  remains  a  policy  of  strategic 

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importance  to  ensure  the  most  effective  response  to  the  policy  challenges  and  the  most 
efficient  use  of  budgetary  resources.  In  addition,  it  is  proposed  to  maintain  the  current 
structure  of  instruments  in  two  pillars  where  Member  States  have  more  leeway  to  tailor 
solutions  to  their  local  specificities  and  also  co-finance  Pillar  II.  The  new  European 
Innovation  Partnership  and  risk  management  toolkit  are  also  placed  within  Pillar  II.  At  the 
same  time  the  policy  will  be  better  aligned  with  the  Europe  2020  strategy  (including  a 
common framework with other EU funds) and a number of improvements and simplification 
elements  introduced.  Finally,  the  analysis  carried  out  in  the  framework  of  the  impact 
assessment clearly shows the cost of no action in terms of negative economic, environmental 
and social consequences.  

In light of the new Single CMO regulation, it is also necessary to adapt Council Regulation 
(EU)  No  …  determining  measures  on  fixing  certain  aids,  refunds  and  prices  related  to  the 
single  common  organization  of  agricultural  markets.  Thus  the  proposed  Council  regulation 
having Article 43(3) of the Treaty as a legal basis includes the conditions for the Commission 
to fix certain aids and refunds such as aid amounts for the supply of milk products to children, 
export refunds and specific provisions on export refunds for cereals and rice.  

4. 

BUDGETARY IMPLICATION  

The  MFF  proposal  provides  that  a  significant  part  of  the  EU  budget  should  continue  to  be 
dedicated to agriculture, which is a common policy of strategic importance. Thus, in current 
prices, it is proposed that the CAP should focus on its core activities with EUR 317.2 billion 
allocated to Pillar I and EUR 101.2 billion to Pillar II over the 2014-2020 period.  

The Pillar I and Pillar II funding is complemented by additional funding of EUR 17.1 billion 
consisting of EUR 5.1 billion for research and innovation, EUR 2.5 billion for food safety and 
EUR 2.8 billion for food support for the most deprived persons in other headings of the MFF, 
as well as of EUR 3.9 billion in a new reserve for crises in the agricultural sector and up to 
EUR  2.8  billion  in  the  European  Globalization  Adjustment  Fund  outside  the  MFF,  thus 
bringing the total budget to EUR 435.6 billion over the 2014-2020 period.  

As  regards  distribution  of  support  among  Member  States,  it  is  proposed  that  all  Member 
States  with  direct  payments  below  90%  of  the  EU  average  will  see  one  third  of  this  gap 
closed. The national ceilings in the direct payments regulation are calculated on this basis.  

The  distribution  of  rural  development  support  is  based  on  objective  criteria  linked  to  the 
policy  objectives  taking  into  account  the  current  distribution.  As  is  the  case  today,  less 
developed regions should continue to benefit from higher co-financing rates, which will also 
apply  to  certain  measures  such  as  knowledge  transfer,  producer  groups,  cooperation  and 
Leader.  

Some  flexibility  for  transfers  between  pillars  is  introduced  (up  to  5%  of  direct  payments): 
from Pillar I to Pillar II to allow Member States to reinforce their rural development policy, 
and  from  Pillar  II  to  Pillar  I  for  those  Member  States  where  the  level  of  direct  payments 
remains below 90% of the EU average.  

Details  on  the  financial  impact  of  the  CAP  reform  proposals  are  set  out  in  the  financial 
statement accompanying the proposals. 

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2011/0287 (NLE) 

Proposal for a 

COUNCIL REGULATION 

determining measures on fixing certain aids and refunds related to the common 
organisation of the markets in agricultural products 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 43(3) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

The  Communication  from  the  Commission  to the  European  Parliament,  the  Council, 
the European Economic and Social Committee and the Committee of the Regions on 
"The CAP towards 2020: Meeting the food, natural resources and territorial challenges 
of  the  future"7  set  out  potential  challenges,  objectives  and  orientations  for  the 
Common  Agricultural  Policy  (CAP)  after  2013.  In  the  light  of  the  debate  on  that 
Communication,  the  Common  Agricultural  Policy  should  be  reformed  with  effect 
from 1 January 2014. That reform should cover all the main instruments of the CAP, 
including  Council  Regulation  (EU)  No  [COM(2010)799]  of  […]  establishing  a 
common  organisation  of  agricultural  markets  and  on  specific  provisions  for  certain 
agricultural products (Single CMO Regulation)8.  

In  view  of  the  scope  of  the  CAP  reform  and  in  particular  of  the  replacement  of 
Regulation  [COM(2010)799]  by  Regulation  (EU)  No  [COM(2011)  626]  of  the 
European Parliament and of the Council of […], establishing a common organisation 
of the market in agricultural products (Single CMO Regulation)9, it is appropriate to 
adapt  the  measures  laid  down  by  Council  Regulation  (EU)  No  [COM(2011)193]  of 
[…]  determining  measures  on  fixing  certain  aids,  refunds  and  prices  related  to  the 
single  common  organisation  of  agricultural  markets10.  For  sake  of  clarity,  it  is 
necessary to repeal that Regulation and replace it with a new one. 

(3) 

To ensure the proper functioning of the aid scheme for the supply of certain processed 
milk products to children in educational establishments and to ensure flexibility in the 
scheme's administration, appropriate conditions should be set to fix the amounts of aid 
for all milk and other eligible milk products.  

7 
8 
9 
10 

COM(2010) 672 final, 18.11.2010. 
OJ L 299, 16.11.2007, p. 1. 
COM(2011)…. 
COM(2011)………… 

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(4) 

(5) 

(6) 

To  ensure  the  proper  functioning  of  the  export  refund  system,  appropriate  measures 
should  be  set  to  fix  the  amount  of  the  refunds.  In  addition,  in  the  cereals  and  rice 
sectors appropriate measures should be set to fix the corrective amounts and to provide 
for  the  adjustment  of  the  refund  amount  in  line  with  any  changes  in  the  level  of  the 
intervention price.  

Pursuant  to  Regulation  (EU)  No  [COM(2010)799]  several  sectoral  measures, 
including on the scheme for production refunds for sugar will expire at the end of the 
2014/2015  marketing  year  for  sugar.  After  the  repeal  of  Regulation  (EU)  No 
[COM(2010)799],  the  relevant  provisions  of  that  Regulation  related  to  that  scheme 
should nevertheless continue to apply until the end of the schemes concerned. For that 
reason, the measures on fixing of the production refund for the products of the sugar 
sector  as  provided  for  in  Article  4  of  Regulation  (EU)  No  [COM(2011)193]  should 
continue to apply until the end of the 2014/2015 marketing year. 

To  ensure  an  efficient  day-to-day  management  of  the  Common  Agricultural  Policy, 
the  measures  on  fixing  aid,  refunds  and  prices  set  out  in  this  Regulation  should  be 
limited  to  the  broad  conditions  allowing  concrete  amounts  to  be  laid  down  in  the 
specific  circumstances  of  each  case.  In  order  to  ensure  uniform  conditions  for  the 
implementation  of  this  Regulation,  implementing  powers  should  be  conferred  on  the 
Commission to lay down those amounts. Those powers should be exercised with the 
assistance  of  the  Committee  established  by  Article  162(1)  of  Regulation  (EU)  No 
[COM(2011)…]  and  in  accordance  with  Regulation  (EU)  No  182/2011  of  the 
European  Parliament  and  of  the  Council  of  16  February  2011  laying  down  the  rules 
and general principles concerning mechanisms for control by the Member States of the 
Commission’s  exercise  of  implementing  powers11.  Furthermore,  to  ensure  a  swift 
response to fast changing market situations, the Commission should be empowered to 
fix  new  refund  levels  and,  in  the  cereals  and  rice  sectors,  to  adapt  the  corrective 
amount without applying Regulation (EU) No 182/2011, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Scope 

This  Regulation  provides  for  measures  on  fixing  of  certain  aids  and  refunds  related  to  the 
single  common  organisation  of  agricultural  markets  established  by  Regulation  (EU)  No 
[COM(2011)…] ("Single CMO Regulation"). 

Article 2 
Aid for the supply of milk products to children 

The Commission shall, by means of implementing acts, fix the aid amounts for the supply of 
milk  products  to  children,  as  referred  to  in  Article  24(4)  of  the  Single  CMO  Regulation, 
taking  into  account  the  need  to  sufficiently  encourage  the  supply  of  milk  products  to 
educational establishments. 

11 

OJ L 55, 28.2.2011 

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The Commission shall, by means of implementing acts, fix the aid amounts for eligible milk 
products other than milk, taking into account the milk components of the product concerned. 

The implementing acts provided for in the first and second paragraph of this Article shall be 
adopted  in  accordance  with  the  examination  procedure  referred  to  in  Article  162(2)  of  the 
Single CMO Regulation. 

Article 3 

Export refund fixation 

1. 

The  Commission  shall,  by  means  of  implementing  acts,  fix  the  export  refunds,  as 
referred to in Article 135 of the Single  CMO Regulation. Those implementing acts 
shall be adopted in accordance with the examination procedure referred to in 162(2) 
of the Single CMO Regulation.  

2. 

Refunds referred to in paragraph 1 may be fixed: 

(a) 

at regular intervals, for a list of products fixed pursuant to paragraph 1; 

(b)  by tendering procedures for cereals, rice, sugar and milk and milk products. 

The amount of the refund may, where necessary, be adjusted by the Commission, by 
means of implementing acts, either at the request of a Member State or on its own 
initiative. 

3. 

One or more of the following aspects shall be taken into account when refunds for a 
certain product are being fixed: 

(a) 

the existing situation and the future trend with regard to: 

(i) 

prices and availabilities of that product on the Union market,  

(ii)  prices for that product on the world market. 

(b) 

(c) 

the aims of the common market organisation which are to ensure equilibrium 
and the natural development of prices and trade on this market; 

the need to avoid disturbances likely to cause a prolonged imbalance between 
supply and demand on the Union market; 

(d) 

the economic aspect of the proposed exports; 

(e) 

(f) 

the limits resulting from agreements concluded in accordance with Article 218 
of the Treaty; 

the need to establish a balance between the use of Union basic products in the 
manufacture  of  processed  goods  for  export  to  third  countries  and  the  use  of 
third country products brought in under processing arrangements; 

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1. 

2. 

3. 

(g) 

the most favourable marketing costs and transport costs from Union markets to 
Union  ports  or  other  places  of  export  together  with  forwarding  costs  to  the 
countries of destination; 

(h)  demand on the Union market; 

(i) 

in respect of the pigmeat, eggs and poultrymeat sectors, the difference between 
prices within the Union and prices on the world market for the quantity of feed 
grain  input  required  for  the  production  in  the  Union  of  products  of  those 
sectors.  

Article 4 

Specific measures on export refunds for cereals and rice  

The  Commission  may,  by  means  of  implementing  acts,  fix  a  corrective  amount 
applicable to the export refunds fixed in respect of the cereals and rice sectors. Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred  to  in  162(2)  of  the  Single  CMO  Regulation.  Where  necessary,  the 
Commission may, by means of implementing acts, amend the corrective amounts. 

The Commission may apply the first subparagraph to products of the cereals and rice 
sectors that are exported in the form of processed goods in accordance with Council 
Regulation (EC) No 1216/200912. 

For the first three months of the marketing year, the refund applicable to exports of 
malt, either in storage at the end of the previous marketing year or made from barley 
in stock at that time, shall be that which would have applied in respect of the export 
licence in question to exports made during the last month of the preceding marketing 
year. 

The refund on products listed in points (a) and (b) of Part I of Annex I to the Single 
CMO Regulation, established in accordance with Article 136(2) of the Single CMO 
Regulation, may be adjusted by the Commission, by means of implementing acts, in 
line with any changes in the level of the intervention price. 

The  first  subparagraph  may  be  applied,  in  whole  or  in  part,  to  products  listed  in 
points (c)  and (d)  of  Part I  of  Annex I  to  the  Single  CMO  Regulation  as  well  as  to 
products listed in Part I of that Annex I and exported in the form of processed goods 
in  accordance  with  Regulation  (EC)  No  1216/2009.  In  that  case,  the  Commission 
shall, by means of implementing acts, correct the adjustment referred to in the first 
subparagraph by applying a coefficient expressing the ratio between the quantity of 
basic product and the quantity thereof contained in the processed product exported or 
used in the goods exported. 

The  implementing  acts  provided  for  in  the  first  and  second  subparagraph  of  this 
paragraph shall be adopted in accordance with the examination procedure referred to 
in Article 162(2) of the Single CMO Regulation. 

12 

OJ L 328, 15.12.2009, p. 10. 

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Article 5 

Repeals 

1. 

Regulation (EU) No […] is repealed.  

However, Article 4 of Regulation (EU) No […] shall continue to apply to the sugar 
sector until 30 September 2015. 

2. 

References  to  Regulation  (EU)  No  […]  shall  be  construed  as  references  to  this 
Regulation and be read in accordance with the correlation table set out in the Annex 
to this Regulation. 

Article 6  

Entry into force and application 

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

It shall apply from 1 January 2014. 

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

Done at Brussels  

For the Council 
The President 

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ANNEX 

CORRELATION TABLE REFERRED TO IN ARTICLE 5 

Regulation (EU) No […] 

This Regulation 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

1 

- 

- 

- 

- 

- 

2 

- 

3 

4 

- 

- 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

- 
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing 
rules  for  direct  payments  to  farmers  under  support  schemes  within  the  framework  of  the 
common agricultural policy; 

Proposal for a Regulation of the European Parliament and of the Council establishing a 

- 
common organisation of the markets in agricultural products (Single CMO Regulation); 

Proposal for a Regulation of the European Parliament and of the Council on support for 

- 
rural development by the European Agricultural Fund for Rural Development (EAFRD); 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the 

- 
financing, management and monitoring of the common agricultural policy;  

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
- 
Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers 
in respect of the year 2013; 

Proposal  for  a  Council  Regulation  determining  measures  on  fixing  certain  aids  and 

- 
refunds related to the common organisation of the markets in agricultural products; 

- 
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Council Regulation (EC) No 1234/2007 as regards the regime of the single payment scheme 
and support to vine-growers. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure13  

Policy Area Title 05 of Heading 2 

1.3. 

Nature of the proposal/initiative (Legislative framework for the CAP post 2013) 

x The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action14  

x The proposal/initiative relates to the extension of an existing action  

x The proposal/initiative relates to an action redirected towards a new action  

13 
14 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

In order to promote resource efficiency with a view to smart, sustainable and inclusive growth 
for EU agriculture and rural development in line with the Europe 2020 Strategy, the objectives 
of the CAP are: 

- Viable food production; 

- Sustainable management of natural resources and climate action; 

- Balanced territorial development. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned 

Specific objectives for Policy area 05: 

Specific objective No 1:  

To provide environmental public goods 

Specific objective No 2:  

To compensate for production difficulties in areas with specific natural constraints 

Specific objective No 3:  

To pursue climate change mitigation and adaptation actions 

Specific objective No 4:  

To manage the EU budget (CAP) in accordance with high standards of financial management 

Specific objective for ABB 05 02 - Interventions in agricultural markets:  

Specific objective No 5:  

To improve  the competitiveness of the  agricultural sector and enhance its value share in the 
food chain 

Specific objective for ABB 05 03 - Direct aids: 

Specific objective No 6: 

To contribute to farm incomes and limit farm income variability 

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Specific objectives for ABB 05 04 – Rural development: 

Specific objective No 7  

To foster green growth through innovation 

Specific objective No 8:  

To support rural employment and maintain the social fabric of rural areas 

Specific objective No 9  

To improve the rural economy and promote diversification 

Specific objective No 10  

To allow for structural diversity in farming systems 

1.4.3.  Expected result(s) and impact 

It  is  not  possible  to  set  quantitative  targets  for  impact  indicators  at  this  stage.  Although  the 
policy can steer in a certain direction, the broad economic, environmental and social outcomes 
measured  by  such  indicators  would  ultimately  also  depend  on  the  impact  from  a  range  of 
external factors, which recent experience indicates have become significant and unpredictable. 
Further analysis is on-going, to be ready for the period post-2013. 

As regards the direct payments, Member States will have the possibility to decide, to a limited 
degree, on the implementation of certain components of the direct payment schemes. 

For rural development, the expected results and impact will depend on the rural development 
programmes that Member States will submit to the Commission. Member States will be asked 
to set targets in their programmes.  

1.4.4. 

Indicators of results and impact  

The  proposals  provide  for  the  establishment  of  a  common  monitoring  and  evaluation 
framework  with  a  view  to  measuring  the  performance  of  the  Common  Agricultural  Policy. 
That framework shall include all instruments related to the monitoring and evaluation of CAP 
measures  and  in  particular  of  the  direct  payments,  market  measures,  rural  development 
measures and of the application of cross compliance. 

The impact of these CAP measures shall be measured in relation to the following objectives: 

(a) 

(b) 

viable  food  production,  with  a  focus  on  agricultural  income,  agricultural  productivity 
and price stability; 

sustainable  management  of  natural  resources  and  climate  action,  with  a  focus  on 
greenhouse gas emissions, biodiversity, soil and water; 

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(c) 

balanced territorial development, with a focus on rural employment, growth and poverty 
in rural areas. 

By means of implementing acts, the Commission shall define the set of indicators specific to 
these objectives and areas. 

Moreover,  as  regards  rural  development,  a  reinforced  common  monitoring  and  evaluation 
system  is  proposed.  That  system  aims  (a)  to  demonstrate  the  progress  and  achievements  of 
rural  development  policy  and  assess  the  impact,  effectiveness,  efficiency  and  relevance  of 
rural development policy interventions, (b) to  contribute  to  better  targeted  support  for  rural 
development,  and  (c)  to  support  a  common  learning  process  related  to  monitoring  and 
evaluation. The Commission will establish, by means of implementing act, a list of common 
indicators linked to the policy priorities. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

In order to meet the multi-annual strategic objectives of the CAP which are a direct translation 
of the Europe 2020 strategy for European rural areas and to fulfil the relevant requirements of 
the  Treaty,  the  proposals  aim  to  lay  down  the  legislative  framework  for  the  Common 
Agricultural Policy for the period after 2013. 

1.5.2.  Added value of EU involvement 

The future CAP will not only be a policy that caters for a small, albeit essential, part of the EU 
economy,  but  also  a  policy  of  strategic  importance  for  food  security,  the  environment  and 
territorial balance. Thus, the CAP, as a truly common policy, makes the most efficient use of 
limited  budgetary  resources  in  maintaining  a  sustainable  agriculture  throughout  the  EU, 
addressing  important  cross-border  issues  such  as  climate  change  and  reinforcing  solidarity 
among Member States. 

As mentioned in the Commission communication "A Budget for Europe 2020"15, the CAP is a 
genuinely European policy. Instead of operating 27 separate agricultural policies and budgets, 
Member  States  pool  resources  to  operate  a  single  European  policy  with  a  single  European 
budget.  This  naturally  means  that  the  CAP  accounts  for  a  significant  proportion  of  the  EU 
budget. However, this approach is both more efficient and economical than an uncoordinated 
national approach. 

1.5.3.  Lessons learned from similar experiences in the past 

On the basis of the evaluation of the current policy framework, an extensive consultation with 
stakeholders  as  well  as  an  analysis  of  future  challenges  and  needs,  a  comprehensive  impact 
assessment has been carried out. More details can be found in the impact assessment and the 
explanatory memorandum that are accompanying the legal proposals. 

15 

COM(2011)500 final of 29 June 2011. 

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1.5.4.  Coherence and possible synergy with other relevant instruments 

The legislative proposals concerned by this financial statement should be seen in the broader 
context of the proposal for a single framework regulation with common rules for the common 
strategic  framework  funds  (EAFRD,  ERDF,  ESF,  Cohesion  Fund  and  EMFF).  That 
framework regulation will make an important contribution to reducing administrative burden, 
to  spending  EU  funds  in  an  effective  way,  and  to  put  simplification  into  practice.  This  also 
underpins  the  new  concepts  of  the  common  strategic  framework  for  all  these  funds  and  the 
upcoming Partnership Contracts which will also cover these funds. 

The common strategic framework, which will be established, will translate the objectives and 
priorities of the Europe 2020 Strategy into priorities for the EAFRD together with the ERDF, 
ESF, Cohesion Fund and EMFF, which will ensure an integrated use of the funds to deliver 
common objectives.  

The  common  strategic  framework  will  also  set  out  coordination  mechanisms  with  other 
relevant Union policies and instruments. 

Moreover, as regards the CAP, significant synergies and simplification effects will be obtained 
by  harmonising  and  aligning  the  management  and  control  rules  for  the  first  (EAGF)  and 
second  (EAFRD)  pillar  of  the  CAP.  The  strong  link  between  the  EAGF  and  the  EAFRD 
should be maintained and the structures already in place in the Member States be sustained. 

1.6. 

Duration and financial impact  

x  Proposal/initiative  of  limited  duration  (for  the  draft  regulations  on  direct  payment 
schemes, rural development and transitional regulations) 

–  x  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

–  x  Financial impact for the period of the next multi-annual financial framework. For rural 

development, impact on payments to 2023. 

x  Proposal/initiative  of  unlimited  duration  (for  the  draft  regulation  on  the  single  CMO 
and the horizontal regulation) 

–  Implementation from 2014. 

1.7.  Management mode(s) envisaged16  

x Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies  

–  (cid:133)  bodies set up by the Communities17  

16 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

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–  (cid:133)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation  

x Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

Comments  

No substantive change compared to the present situation, i.e. the bulk of expenditure concerned by the 
legislative  proposals  on  the  CAP  reform  will  be  managed  by  shared  management  with  the  Member 
States.  However,  a  very  minor  part  will  continue  to  fall  under  centralised  direct  management  by  the 
Commission. 

17 

As referred to in Article 185 of the Financial Regulation. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

In terms of monitoring and evaluation of the CAP, the Commission will present a report to the 
European Parliament and the Council every 4 years, with the first report to be presented not 
later than end 2017. 

This  is  complemented  by  specific  provisions  in  all  areas  of  the  CAP,  with  various 
comprehensive  reporting  and  notifications  requirements  to  be  specified  in  the  implementing 
rules.  

As  regards  rural  development,  rules  are  also  provided  for  monitoring  at  programme  level, 
which will be aligned with the other funds, and which will be coupled with ex ante, on-going 
and ex post evaluations. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

There are more than seven million beneficiaries of the CAP, receiving support under a large 
variety  of  different  aid  schemes,  each  of  which  having  detailed  and  sometimes  complex 
eligibility criteria. 

The reduction in the error rate in the domain of the common agricultural policy can already be 
considered  as  a  trend.  Thus,  most  recently  an  error  rate  close  to  2%  confirms  the  overall 
positive  assessment  of  previous  years.  It  is  the  intention  to  continue  the  efforts  in  order  to 
achieve an error rate below 2%. 

2.2.2.  Control method(s) envisaged  

The  legislative  package,  in  particular  the  proposal  for  the  regulation  on  the  financing, 
management  and  monitoring  of  the  common  agricultural  policy,  envisages  maintaining  and 
reinforcing the current system established by Regulation (EC) No 1290/2005. It provides for a 
compulsory administrative structure at Member State level, centred around accredited paying 
agencies,  which  are  responsible  for  carrying  out  controls  at  final  beneficiary  level  in 
accordance  with  the  principles  set  out  under  point  2.3.  Every  year,  the  head  of  each  paying 
agency  is  required  to  provide  a  statement  of  assurance  which  covers  the  completeness, 
accuracy and veracity of the accounts, the proper functioning of the internal control systems 
and  the  legality  and  regularity  of  the  underlying  transactions.  An  independent  audit  body  is 
required to provide an opinion on all these three elements. 

The Commission will continue to audit agricultural expenditure, using a risk-based approach 
in order to ensure that its audits are targeted to the areas of highest risk. Where these audits 
reveal that expenditure has been incurred in breach of Union rules, it will exclude the amounts 
concerned from Union financing under the conformity clearance system. 

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As  regards  the  cost  of  controls,  a  detailed  analysis  is  provided  in  annex  8  to  the  impact 
assessment accompanying the legislative proposals. 

2.3.  Measures to prevent fraud and irregularities  

The  legislative  package,  in  particular  the  proposal  for  the  regulation  on  the  financing, 
management  and  monitoring  of  the  common  agricultural  policy,  envisages  maintaining  and 
reinforcing the current detailed systems for controls and penalties to be applied by the paying 
agencies, with common basis features and special rules tailored to the specificities of each aid 
regime. The systems generally provide for exhaustive administrative controls of 100% of the 
aid  applications,  cross-checks  with  other  databases  where  this  is  considered  appropriate  as 
well as pre-payment on-the-spot checks of a minimum number of transactions, depending on 
the  risk  associated  with  the  regime  in  question.  If  these  on-the-spot  checks  reveal  a  high 
number of irregularities, additional checks must be carried out. In this context, the by far most 
important  system  is  the  Integrated  Administration  and  Control  System  (IACS),  which  in 
financial  year  2010  covered  around  80%  of  total  expenditure  under  the  EAGF  and  the 
EAFRD. For Member States with properly functioning control systems and low error rates, the 
Commission will be empowered to allow for a reduction of the number of on-the-spot checks. 

The  package  further  envisages  that  Member  States  shall  prevent,  detect  and  correct 
irregularities and fraud, impose effective, dissuasive and proportionate penalties as laid down 
in  Union  legislation  or  national  law,  and  recover  any  irregular  payments  plus  interests.  It 
includes  an  automatic  clearance  mechanism  for  irregularity  cases,  which  provides  that  if 
recovery has not taken place within four years of the date of the recovery request, or within 
eight years in the case of legal proceedings, the amounts not recovered shall be borne by the 
Member  State  concerned.  This  mechanism  will  be  a  strong  incentive  for  Member  States  to 
recover irregular payments as quickly as possible.  

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

The  amounts  indicated  in  this  financial  statement  are  expressed  in  current  prices  and  in 
commitments. 

In  addition  to  the  changes  resulting  from  the  legislative  proposals  as  listed  in  the 
accompanying  tables  below,  the  legislative  proposals  imply  further  changes  which  have  no 
financial impact. 

For any of the years in the period 2014-2020, the application of financial discipline cannot be 
excluded at this stage. However, this will not depend on the reform proposals as such, but on 
other  factors,  such  as  the  execution  of  direct  aids  or  future  developments  in  the  agricultural 
markets. 

As concerns direct aids, the extended  net ceilings for 2014 (calendar year 2013)  included in 
the proposal regarding transition are higher than the amounts allocated to direct aids indicated 
in the accompanying tables. The purpose of this extension is to ensure a continuation of the 
existing  legislation  in  a  scenario  in  which  all  the  other  elements  would  remain  unchanged, 
without prejudice to the possible need for applying the financial discipline mechanism.  

The  reform  proposals  contain  provisions  giving  Member  States  a  set  degree  of  flexibility  in 
relation  to  their  allocation  of  direct  aids  respectively  rural  development.  In  case  Member 
States  decide  to  use  that  flexibility,  this  will  have  financial  consequences  within  the  given 
financial amounts, which cannot be quantified at this stage.  

This  financial  statement  does  not  take  into  account  the  possible  use  of  the  crises  reserve.  It 
should  be  underlined  that  the  amounts  taken  into  account  for  market-related  expenditure  are 
based  on  no  public  intervention  buying-in  and  other  measures  related  to  a  crisis  situation  in 
any sectors. 

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

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Table 1: Amounts for the CAP including complementary amounts foreseen in the MFF proposals and the CAP reform proposals 

Budget year 

2013 

2013 
adjusted 
(1)

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

In million EUR (current prices) 

Inside MFF 

Heading 2 

Direct aids and market-related expenditure (2) (3) (4)
Estimated assigned revenue 
P1 Direct aids and market-related expenditure (with 
assigned revenue) 
P2 Rural development (4)
Total 

   Heading 1 

CSF Agricultural research and innovation 
Most deprived persons
Total 

44 939
672
45 611 

14 817
60 428

N.A.
N.A.
N.A.

45 304
672
45 976 

14 451
60 428

N.A.
N.A.
N.A.

44 830
672
45 502 

14 451
59 953

682
379
1 061

45 054
672
45 726 

14 451
60 177

696
387
1 082

45 299
672
45 971 

14 451
60 423

710
394
1 104

45 519
672
46 191 

14 451
60 642

724
402
1 126

45 508
672
46 180 

45 497
672
46 169 

14 451
60 631

14 451
60 620

738
410
1 149

753
418
1 172

45 485 
672 
46 157 

14 451 
60 608 

768 
427 
1 195 

317 193 
4 704 
321 897 

101 157 
423 054 

5 072 
2 818 
7 889 

   Heading 3 

Food safety 

Outside MFF 

N.A.

N.A.

350

350

350

350

350

350

350 

2 450 

   Reserve for agricultural crises

   European Globalisation Fund (EGF) 

N.A.

N.A.

Of which maximum available for agriculture: (5)

N.A.

N.A.

531

379

541

387

552

394

563

402

574

410

586

418

598 

427 

3 945 

2 818 

TOTAL 

TOTAL  Commission  proposals  (MFF  +  outside  MFF)  + 
assigned revenue 

TOTAL  MFF  proposals  (i.e.  excluding  Reserve  and  EGF)  + 
assigned revenue 

60 428 

60 428 

62 274 

62 537 

62  823 

63 084 

63 114 

63 146 

63 177 

440 156 

60 428 

60 428 

61 364 

61 609 

61 877 

62 119 

62 130 

62 141 

62 153 

433 393 

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Notes: 

(1) 

(2) 

(3) 

(4) 

(5) 

Taking into account legislative changes already agreed, i.e. voluntary modulation for the UK and Article 136 "unspent amounts" will cease to apply by the end of 2013. 

The  amounts  relate  to  the  proposed  annual  ceiling  for  the  first  pillar.  However,  it  should  also  be  noted  that  it  is  proposed  to  move  negative  expenditure  from  accounting  clearance 
(currently under budget item 05 07 01 06) to assigned revenue (under item 67 03). For details, see estimated revenue table on the page below.  

The 2013 figures include the amounts for veterinary and phytosanitary measures as well as market measures for the fisheries sector. 

The amounts in the table above are in line with those in the Commission communication "A Budget for Europe 2020" (COM(2011)500 final of 29 June 2011). However, it remains to be 
decided if the MFF will reflect the transfer that is proposed for the envelope of one Member State of the cotton national restructuring programme to rural development as from 2014, 
implying  an  adjustment  (4  million  EUR  per  year)  of  the  amounts  for  respectively  the  EAGF  sub-ceiling  and  for  pillar  2.  In  the  tables  in  the  sections  below,  the  amounts  have  been 
transferred, irrespective of them being reflected in the MFF. 

In accordance with the Commission communication "A Budget for Europe 2020" (COM(2011)500 final), a total amount of up to 2.5 billion EUR in 2011 prices will be available under 
the European Globalisation Fund for providing additional support to farmers suffering from effects of globalisation. In the table above, the breakdown by year in current prices is only 
indicative.  The  proposal  for  the  inter-institutional  agreement  between  the  European  Parliament,  the  Council  and  the  Commission  on  cooperation  in  budgetary  matters  and  on  sound 
financial  management  (COM(2011)403  final  of  29  June  2011)  sets  out,  for  the  EGF,  an  overall  maximum  annual  amount  of  429  million  EUR  in  2011  prices. 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Table 2: Estimated revenue as well as expenditure for Policy Area 05 within Heading 2 

In million EUR (current prices) 

Budget year 

2013 

2013 
adjusted 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

REVENUE 

123 – Sugar production charge (own resources) 

123 

123 

123 

123 

67 03 - Assigned revenue 

  of which: ex 05 07 01 06 - Accounting clearance 

Total 

EXPENDITURE 

05 02 - Markets (1) 

672 

0 

795 

672 

0 

795 

741 

69 

864 

741 

69 

864 

741 

69 

741 

741 

69 

741 

741 

69 

741 

741 

69 

741 

741 

69 

741 

3 311 

3 311 

2 622 

2 641 

2 670 

2 699 

2 722 

2 710 

2 699 

18 764 

05 03 - Direct aids (before capping) (2)  

42 170 

42 535 

42 876 

43 081 

43 297 

43 488 

43 454 

43 454 

43 454 

303 105 

05 03 – Direct aids (after capping) 

42 170 

42 535 

42 876 

42 917 

43 125 

43 303 

43 269 

43 269 

43 269 

302 027 

05 04 - Rural development (before capping) 

14 817 

14 451 

14 455 

14 455 

14 455 

14 455 

14 455 

14 455 

14 455 

101 185 

05 04 - Rural development (after capping) 

14 817 

14 451 

14 455 

14 619 

14 627 

14 640 

14 641 

14 641 

14 641 

102 263 

05 07 01 06 - Accounting clearance 

-69 

-69 

0 

0 

0 

0 

0 

0 

0 

0 

Total 

60 229 

60 229 

59 953 

60 177 

60 423 

60 642 

60 631 

60 620 

60 608 

423 054 

NET BUDGET after assigned revenue  

59 212 

59 436 

59 682 

59 901 

59 890 

59 879 

59 867 

417 867 

EN 

25 

EN 

TOTAL 
2014-2020 

246 

5 187 

483 

5 433 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

For 2013, preliminary estimate based on Draft Budget 2012 taking into account legal adjustments already agreed for 2013 (e.g. wine ceiling, abolition of potato starch premium, dried 
fodder) as well as some foreseen developments. For all years, the estimates assume that there will be no additional financing need for support measures due to market disturbances or 
crises. 

(2) 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

EN 

26 

EN 

 
  
 
Table 3: Calculation of the financial impact by budget chapter of the CAP reform proposals as regards revenue and CAP expenditure 

Budget year 

2013 

2013 
adjusted 

REVENUE 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

In million EUR (current prices) 

TOTAL 
2014-2020 

123 – Sugar production charge (own resources) 

123 

123 

0 

0 

0 

0 

0 

0 

0 

0 

67 03 - Assigned revenue 

  of which: ex 05 07 01 06 - Accounting clearance 

Total 

EXPENDITURE 

05 02 - Markets (1) 

05 03 - Direct aids (before capping) (2) 

05  03  -  Direct  aids  –  Estimated  product  of  capping  to  be 

672 

0 

795 

672 

0 

795 

69 

69 

69 

3 311 

3 311 

42 170 

42 535 

-689 

-460 

05 04 - Rural development (before capping) 

14 817 

14 451 

05 04 - Rural development – Estimated product of capping to be 

05 07 01 06 - Accounting clearance 

-69 

-69 

69 

0 

4 

0 

69 

69 

69 

-670 

-492 

-164 

4 

164 

69 

69 

69 

69 

-641 

-534 

-172 

4 

172 

69 

69 

69 

69 

-612 

-577 

-185 

4 

185 

69 

69 

69 

69 

-589 

-617 

-186 

4 

186 

69 

69 

69 

69 

-601 

-617 

-186 

4 

186 

69 

69 

69 

69 

-612 

-617 

-186 

4 

186 

69 

483 

483 

483 

-4 413 

-3 913 

-1 078 

28 

1 078 

483 

Total 

60 229 

60 229 

-1 076 

-1 089 

-1 102 

-1 115 

-1 133 

-1 144 

-1 156 

-7 815 

NET BUDGET after assigned revenue  

-1 145 

-1 158 

-1 171 

-1 184 

-1 202 

-1 213 

-1 225 

-8 298 

EN 

27 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

For 2013, preliminary estimate based on Draft Budget 2012 taking into account legal adjustments already agreed for 2013 (e.g. wine ceiling, abolition of potato starch premium, dried 
fodder) as well as some foreseen developments. For all years, the estimates assume that there will be no additional financing need for support measures due to market disturbances or 
crises. 

(2) 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

EN 

28 

EN 

 
  
Table 4: Calculation of the financial impact of the CAP reform proposals as regards CAP market-related expenditure 

BUDGET YEAR 

Legal base 

Exceptional  measures:  streamlined  and  extended 
scope of legal base 

Art. 154, 155, 156 

Removal  of 
sorghum 

intervention  for  durum  wheat  and 

ex Art.10 

Food programmes for most deprived 

(2) 

Ex-Art. 27 of Reg 
1234/2007 

Private storage (Flax fibre) 

Art. 16 

Aid for cotton - Restructuring 

(3) 

ex  Art.  5  of  Reg. 
637/2008 

Setting-up aid for F&V producer groups 

School fruit scheme 

Abolition hops PO 

ex Art. 117 

Art. 21 

ex Art. 111 

Optional private storage for skimmed-milk powder 

Art. 16 

Abolition  aid  for  use  of  skimmed  milk/SMP  as 
feedingstuff/casein and use of casein 

ex Art. 101, 102 

In million EUR (current prices) 

Changes to 2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

- 

- 

- 

- 

- 

- 

- 

TOTAL 
2014-2020 

pm 

- 

Estimated 
needs 

2013  
(1) 

pm 

pm 

500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-3 500.0 

N.A. 

10.0 

30.0 

90.0 

2.3 

N.A. 

pm 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

0.0 

0.0 

0.0 

-15.0 

-15.0 

-30.0 

-30.0 

60.0 

60.0 

60.0 

60.0 

60.0 

60.0 

60.0 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

Pm 

-28.0 

-90.0 

420.0 

-15.9 

pm 

- 

Optional private storage for butter 

(4) 

Art. 16 

14.0 

[-1.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-85.0] 

Abolition milk promotional levy 

ex Art. 309 

pm 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL 05 02 

Net effect of reform proposals (5) 

-446.3 

-446.3 

-446.3 

-461.3 

-461.3 

-476.3 

-476.3 

-3 213.9 

EN 

29 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

(3) 

(4) 

(5) 

The 2013 needs are estimated based on the Commission's Draft Budget 2012, except for (a) the fruit & vegetables sectors where the needs are based on the financial statement of the 
respective reforms and (b) any legal changes already agreed. 

The 2013 amount corresponds to Commission proposal COM(2010)486. As from 2014, the measure will be financed within Heading 1. 

The  envelope  for  the  cotton  restructuring  programme  for  Greece  (4  million  EUR/year)  will  be  transferred  to  rural  development  as  from  2014.  The  envelope  for  Spain  (6.1  million 
EUR/year) will go to the Single Payment Scheme as from 2018 (already decided). 

Estimated effect in case of non-application of the measure. 

In addition to expenditure within chapters 05 02 and 05 03, it is anticipated that direct expenditure within chapters 05 01, 05 07 and 05 08 will be financed by revenue that will be assigned 
to the EAGF. 

EN 

30 

EN 

 
  
Table 5: Calculation of the financial impact of the CAP reform proposals as regards direct aids 

In million EUR (current prices) 

Legal base 

Estimated needs 

Changes to 2013 

BUDGET YEAR 

2013 (1) 

2013 
adjusted 
(2) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Direct aids 

42 169.9 

42 535.4 

341.0 

381.1 

589.6 

768.0 

733.2 

733.2 

733.2

4 279.3 

- Changes already 
decided: 

Phasing-in EU 12 

Cotton 
restructuring 

Health Check  

Previous reforms  

875.0 

1 133.9 

1 392.8 

1 651.6 

1 651.6 

1 651.6 

1 651.6

10 008.1 

0.0 

0.0 

0.0 

0.0 

6.1 

6.1 

6.1

18.4 

-64.3 

-64.3 

-64.3 

-90.0 

-90.0 

-90.0 

-90.0

-552.8 

-9.9 

-32.4 

-32.4 

-32.4 

-32.4 

-32.4 

-32.4

-204.2 

- Changes due to new CAP reform proposals 

-459.8 

-656.1 

-706.5 

-761.3 

-802.2 

-802.2 

-802.2

-4 990.3 

Of which: capping 

0.0 

-164.1 

-172.1 

-184.7 

-185.6 

-185.6 

-185.6

-1 077.7 

TOTAL 05 03 

Net effect of reform proposals 

-459.8 

-656.1 

-706.5 

-761.3 

-802.2 

-802.2 

-802.2

-4 990.3 

TOTAL EXPENDITURE 

42 169.9 

42 535.4 

42 876.4 

42 916.5 

43 125.0 

43 303.4 

43 268.7 

43 268.7 

43 268.7

302 027.3 

EN 

31 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

Taking into account legislative changes already agreed, i.e. voluntary modulation for the UK and Article 136 "unspent amounts" will cease to apply by the end of 2013. 

EN 

32 

EN 

 
  
Table 6: Components of direct aids 

BUDGET YEAR 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Annex II 

42 407.2 

42 623.4 

42 814.2 

42 780.3 

42 780.3 

42 780.3

256 185.7 

In million EUR (current prices) 

Payment  for  agricultural  practices  beneficial  for  the  climate  and 
environment (30%) 
Maximum that can be allocated to the Payment for young farmers 
(2%) 

Basic  Payment  Scheme,  Payment  for  areas  with  Natural 
Constraints, Voluntary Coupled Support 
Maximum  that  can  be  taken  from  the  above  lines  to  finance  the 
Small Farmer Scheme (10%) 
Wine transfers included in Annex II18 

Capping 

Cotton 

12 866.5 

12 855.3 

12 844.3 

12 834.1 

12 834.1 

12 834.1

77 068.4 

857.8 

857.0 

856.3 

855.6 

855.6 

855.6

5 137.9 

28 682.9 

28 911.1 

29 113.6 

29 090.6 

29 090.6 

29 090.6

173 979.4 

4 288.8 

4 285.1 

4 281.4 

4 278.0 

4 278.0 

4 278.0

25 689.3 

159.9 

159.9 

159.9 

159.9 

159.9 

159.9

959.1 

-164.1 

-172.1 

-184.7 

-185.6 

-185.6 

-185.6

-1 077.7 

256.0 

256.3 

256.5 

256.6 

256.6 

256.6

1 538.6 

POSEI/Small Aegean Islands 

417.4 

417.4 

417.4 

417.4 

417.4 

417.4

2 504.4 

18 

Direct aids for the period 2014-2020 include an estimate of the wine transfers to SPS based on the decisions taken by the Member States for 2013. 

EN 

33 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Table 7: Calculation of the financial impact of the CAP reform proposals as regards transitional measures for granting direct aids in 2014 

In million EUR (current prices) 

BUDGET YEAR 

Legal base 

Estimated needs 

Changes to 
2013 

2013  

(1) 

2013 
adjusted 

2014  

(2) 

Annex IV to Council Regulation (EC) No 73/2009 

40 165.0 

40 530.5 

Phasing-in EU 10 

Health Check  

Previous reforms  

TOTAL 05 03 

TOTAL EXPENDITURE 

541.9

616.1

-64.3

-9.9

40 165.0 

40 530.5 

41 072.4

Notes: 

(1) 

(2) 

EN 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

The extended net ceilings include an estimate of the wine transfers to SPS based on the decisions taken by the Member States for 2013. 

34 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 8: Calculation of the financial impact of the CAP reform proposals as regards rural development 

BUDGET YEAR 

Legal base 

Rural development 
allocation 

2013 

2013 
adjusted 
(1) 

Rural development programmes 

14 788.9 

14 423.4 

In million EUR (current prices) 

Changes to 2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Aid for cotton - Restructuring 

(2) 

4.0 

4.0 

4.0 

4.0 

4.0 

4.0 

4.0 

28.0 

Product of capping of direct 
aids 

RD envelope excluding 
technical assistance 

Technical assistance 

Prize  for  local  innovative  co-operation 
projects 

(3) 

(3) 

(4) 

TOTAL 05 04 

Net effect of reform proposals 

TOTAL  EXPENDITURE 
capping) 

(before 

164.1 

172.1 

184.7 

185.6 

185.6 

185.6 

1 077.7 

-8.5 

-8.5 

-8.5 

-8.5 

-8.5 

-8.5 

-8.5 

-59.4 

27.6 

27.6 

N.A. 

N.A. 

8.5 

0.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

29.4 

30.0 

4.0 

168.1 

176.1 

188.7 

189.6 

189.6 

189.6 

1 105.7 

14 816.6 

14 451.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

101 185.5 

TOTAL 
capping) 

EN 

EXPENDITURE 

(after 

14 816.6 

14 451.1 

14 455.1 

14 619.2 

14 627.2 

14 639.8 

14 640.7 

14 640.7 

14 640.7 

102 263.2 

35 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

Adjustments in line with the existing legislation only applicable until the end of financial year 2013. 

The amounts in table 1 (section 3.1) are in line with those in the Commission communication "A Budget for Europe 2020" (COM(2011)500 final). However, it remains to 
be decided if the MFF will reflect the transfer that is proposed for the envelope of one Member State of the cotton national restructuring programme to rural development as 
from 2014, implying an adjustment (4 million EUR per year) of the amounts for respectively the EAGF sub-ceiling and for pillar 2. In table 8 above, the amounts have been 
transferred, irrespective of them being reflected in the MFF. 

(3) 

The 2013 amount for technical assistance was fixed based on the initial rural development envelope (transfers from pillar 1 not included).  

Technical assistance for 2014-2020 is fixed at 0.25% of the total rural development envelope. 

(4) 

Covered by the amount available for technical assistance. 

EN 

36 

EN 

 
  
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

EUR million (to 3 decimal places) 

Note: 

It is estimated that the legislative proposals will have no impact on appropriations of an administrative nature, i.e. it is the intention 
that the legislative framework can be implemented with the present level of human resources and administrative expenditure. 

DG: AGRI 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

136.998  136.998  136.998  136.998  136.998  136.998  136.998 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

958.986 

67.928 

TOTAL DG AGRI 

Appropriations  

146.702  146.702  146.702  146.702  146.702  146.702  146.702 

1 026.914 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

146.702  146.702  146.702  146.702  146.702  146.702  146.702 

1 026.914 

Year 
N19 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to 3 decimal places) 

19 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

37 

EN 

 
  
 
 
 
 
 
 
 
 
 
                                                 
TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

EN 

38 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations  

–  x  The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total 
number 
of 
outputs 

Total  
cost 

830.0 

830.0 

830.0 

830.0 

830.0 

830.0 

830.0 

5 810.0 

Indicate 
objectives and 
outputs  

(cid:216) 

Type 
of 
output 

Average 
r
e
cost  
b
m
of the 
u
output  N

s
t
u
p
t
u
o

f
o

SPECIFIC OBJECTIVE No 5:  

To improve the competitiveness of the 
agricultural  sector  and  enhance  its 
value share in the food chain 

- Fruit & 
vegetables: 
Marketing 
through 
producer 
organisations 
(POs)20 

Propor-
tion of 
the 
value of 
produc-
tion 
marke-
ted 
through 
POs in 
value of 

20 

EN 

Based on past execution and estimates in the 2012 Draft Budget. For the producer organisations in the fruit & vegetables sector, the amounts are in line with the reform of that sector and, 
as already indicated in the activity statements of the 2012 Draft Budget, outputs will only be known in late 2011. 

39 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
the total 
produc-
tion 

- Wine: National 
envelope – 
Restructuring20  

Number 
of 
hectares

- Wine: National 
envelope – 
Investments20 

- Wine: National 
envelope – By-
product 
distillation20 

Hecto-
litres 

- Wine: National 
envelope – 
Potable 
alcohol20 

Number 
of 
hectares

Hecto-
litres 

- Wine: National 
envelope – Use 
of concentrated 
must20 

- Wine: National 
envelope – 
promotion20 

- Other  

Sub-total for specific objective N°5 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

3 326.0 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 252.6 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

686.4 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

14.2 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

261.8 

267.9 

267.9 

267.9 

267.9 

267.9 

267.9 

267.9 

1 875.3 

720.2 

2 621.8 

739.6 

2 641.2 

768.7 

797.7 

820.3 

808.8 

2 670.3 

2 699.3 

2 721.9 

2 710.4 

797.1 

2 698.7 

5 452.3 

18 763.5 

EN 

40 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE No 6: 

To contribute to farm incomes and 
limit farm income variability 

- Direct income 
support21 

Number 
of 
hectares 
paid 

(in 
million) 

161.014 

42 876.4 

161.014 

43 080.6 

161.014 

43 297.1 

161.014 

43 488.1 

161.014 

43 454.3 

161.014 

43 454.3 

161.014 

43 454.3 

161.014 

303 105.0 

Sub-total for specific objective N°6 

42 876.4 

43 080.6 

43 297.1 

43 488.1 

43 454.3 

43 454.3 

43 454.3 

303 105.0 

TOTAL COST 

Note: For specific objectives 1 to 4 and 7 to 10, the outputs are still to be determined (see section 1.4.2 above). 

21 

Based on potentially eligible areas for 2009. 

EN 

41 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  x  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below:  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to 3 decimal places) 

HEADING 5 
of the multiannual 
financial framework 

Human resources 22 

136.998 

136.998 

136.998 

136.998 

136.998 

136.998 

136.998 

958.986 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

67.928 

Other  administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 5 
of the multiannual 
financial framework  

Human resources  

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

146.702 

146.702 

146.702 

146.702 

146.702 

146.702 

146.702 

1 026.914

22 

Based on an average cost of 127 000 EUR for establishment plan post of officials and temporary agents. 

EN 

42 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources  

–  x  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Note:  It  is  estimated  that  the  legislative  proposals  will  have  no  impact  on 
appropriations of an administrative nature, i.e. it is the intention that the 
legislative framework can be implemented with the present level of human 
resources and administrative expenditure. The figures for the period 2014-
2020 are based on the situation for 2011. 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

XX 01 01 01 (Headquarters and 
Commission’s Representation 
Offices) 

1 034 

1 034 

1 034 

1 034 

1 034 

1 034 

1 034 

XX 01 01 02 (Delegations) 

3 

3 

3 

3 

3 

3 

3 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)23 

78 

78 

78 

78 

78 

78 

78 

XX 01 02 01 (CA, INT, SNE from 
the "global envelope") 

XX 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 

XX 01 04 
yy  

- at 
Headquarte
rs 

- in 
delegations 

XX 01 05 02 (CA, INT, SNE - 
Indirect research) 

10 01 05 02 (CA, INT, SNE - Direct 
research) 

Other budget lines (specify) 

TOTAL24 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 

23 

24 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
This does not include the sub-ceiling on budget line 05.010404. 

EN 

43 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

EN 

44 

   EN 

 
 
 
3.2.4.  Compatibility with the current multiannual financial framework  

–  x  Proposal/initiative  is  compatible  with  the  PROPOSALS  FOR  THE  2014-

2020 multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework. 

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties  

–  X  The  proposal  regarding  rural  development  (EAFRD)  provides  for  the  co-

financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Total 

Specify  the  co-financing 
body  

TOTAL 
cofinanced 25 

appropriations 

MS 

MS 

MS 

MS 

MS 

MS 

MS 

MS 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determined 

25 

This will be set out in the rural development programmes to be submitted by the Member States. 

EN 

45 

   EN 

 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  x  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

x  on own resources  

x  on miscellaneous revenue  

Budget revenue line: 

Appropriations 
available for the 
ongoing budget 
year 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative26 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

See tables 2 and 3 in section 3.2.1.  

26 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 25% for collection costs. 

EN 

46 

   EN