Amendment to the Commission proposal COM(2011) 627 final/3 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)
Date: 2012-09-25
Institutions: European Commission
Subjects: Croatia, EAGGF, accession to the European Union, agricultural production, aid to agriculture, reform of the CAP, rural development

EUROPEAN COMMISSION 

Brussels, 25.9.2012  
COM(2012) 553 final 

2011/0282 (COD) 

Amendment to the Commission proposal COM(2011) 627 final/3 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) 

EN 

   EN 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  accession  of  Croatia  to  the  EU  is  scheduled  for  1  July  2013.  Although  the  Act  of 
Accession1  has  not  yet  been  ratified  by  all  Member  States,  the  Commission  has  recently 
updated its Multi-Annual Financial Framework proposals2 in view of Croatia's accession. A 
similar adjustment exercise should be prepared for the CAP reform proposals to ensure that 
once they are adopted, Croatia will be fully covered as a new Member State.  

The adoption of Regulation (EU) No 671/2012 of the European Parliament and of the Council 
of 11 July 2012 amending Council Regulation (EC) No 73/2009 as regards the application of 
direct payments to farmers in respect of the year 20133 provides for voluntary adjustment for 
the  United  Kingdom  whereby  funds  for  direct  payments  for  calendar  year  2013  would  be 
made  available  for  the  next  rural  development  programming  period.  As  a  consequence  a 
relevant provision to allow transfer of the funds to the EAFRD should be made in the CAP 
reform proposal for rural development. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

There was no need for consultation of interested parties or an impact assessment since these 
adjustments  follow,  in relation to Croatia,  from  the  Act  of  Accession  and,  in  relation  to  the 
voluntary  adjustment  for  the  United  Kingdom,  from  the  adoption  of  Regulation  (EU)  No 
671/2012.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The adjustment will take the form of an amendment to the proposal COM(2011) 627 final/3 
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)  in  order 
to: 

-  introduce  a  temporary  additional  measure  on  financing  complementary  national  direct 
payments,  
-  provide  for  specific  conditions  applicable  to  Croatia  in  relation  to  LEADER  (minimum 
EAFRD  contribution  reserved  for  LEADER  of  2.5%  instead  5%)  and  investments  for  the 
implementation  of  Council  Directive  91/676/EEC4  for  a  maximum  period  of  four  years 
(provision of a support rate of 75%), 
-  introduction  of  an  empowerment  to  the  Commission  to  adopt  transitional  rules  for  the 
transition of Croatia from support under IPARD to support under the new Rural Development 
regime, also covering the ex-post evaluation. 

In  relation  to  voluntary  adjustment  for  the  UK  the  adjustment  consists  in  introducing  a 
reference  to  the  amounts  to  be  transferred  in  application  of  the  relevant  provisions  of 
Regulation (EC) No 73/2009.5 

1  
2  
3  
4  
5  

OJ L 112 of 24 April 2012. 
COM(2012)388 of 6 July 2012. 
OJ L 204, 31.7.2012, p.11. 
OJ L 375, 31.12.1991, p. 1. 
OJ L 52, 31.1.2009, p.1. 

- 2 - 

 
 
 
 
                                                 
4. 

BUDGETARY IMPLICATION 

This  amendment  has  no  budgetary  implications,  apart  from  those  already  set  out  in  the 
explanatory  memorandum  for  the  updated  proposals  for  the  Multi-Annual  Financial 
Framework. 

- 3 - 

 
 
2011/0282 (COD) 

Amendment to the Commission proposal COM(2011) 627 final/3 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) 

Commission proposal COM(2011) 627 final/3 is amended as follows: 

(1) 

Recital (70) is replaced by the following: 

"(70) 

In order to facilitate a smooth transition from the system established by Regulation 
(EC) No 1698/2005 to the system established by this Regulation, the power to adopt 
acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission  in  respect  of  establishing  transitional  provisions.  In  order  to  take 
account of the Treaty of Accession of the Republic of Croatia those acts should also 
cover, for Croatia, the transition from support for rural  development under Council 
Regulation (EC) No 1085/2006 of 17 July 2006 establishing an instrument for pre-
accession assistance (IPA)*, where necessary. 

* OJ L 170, 29.6.2007, p. 1." 

(2) 

The following Article 40a is inserted: 

Financing of complementary national direct payments for Croatia 

"Article 40a 

1. 

2. 

3. 

4. 

Support  may  be  granted  to  farmers  eligible  for  complementary  national  direct 
payments under Article 17a of Regulation (EU) No [DP/2012]. The conditions laid 
down in that Article shall also apply to the support to be granted under this Article.  

The support granted to a farmer in respect of the years 2014, 2015 and 2016 shall not 
exceed the difference between:  

(a) 

the  level  of  direct  payments  applicable  in  Croatia  for  the  year  concerned  in 
accordance with Article 16a of Regulation (EU) No [DP/2012]; and  

(b)  45 % of the corresponding level of the direct payments as applied from 2022.  

The Union contribution to support granted under this Article in Croatia in respect of 
the years 2014, 2015 and 2016 shall not exceed 20 % of its respective total annual 
EAFRD allocation.  

The  EAFRD  contribution  rate  for  the  complements  to  direct  payments  shall  not 
exceed 80%. 

(3) 

In Article 64, paragraph 5 is replaced by the following: 

"5.  In  addition  to  the  amounts  referred  to  in  paragraph  4,  the  implementing  act 
referred  to  in  the  same  paragraph  shall  also  include  the  funds  transferred  to  the 
EAFRD in application of Articles 7(2) and 14(1) of Regulation (EU No DP/2012 and 

- 4 - 

 
 
 
the funds transferred to the EAFRD in application of Articles 10b and 136 of Council 
Regulation (EC) No 73/2009* in respect of calendar year 2013. 

* OJ L 30, 31.1.2009, p.16." 

(4) 

In Article 65, paragraph 5 is replaced by the following: 

"5. At least 5%, and in the case of Croatia 2,5%, of the total EAFRD contribution to 
the rural development programme shall be reserved for LEADER." 

(5) 

Article 95 is replaced by the following: 

"Article 95  

Transitional provisions 

In  order  to  facilitate  the  transition  from  the  system  established  by  Regulation  (EC) 
No 1698/2005 to the system established by this Regulation, the Commission shall be 
empowered  to  adopt  delegated  acts,  in  accordance  with  Article  90,  concerning  the 
conditions under which support approved by the Commission under Regulation (EC) 
No  1698/2005  may  be  integrated  into  support  provided  for  under  this  Regulation, 
including  for  technical  assistance  and  for  the  ex-post  evaluations.  Those  delegated 
acts  may  also  provide  conditions  for  the  transition  from  rural  development  support 
for Croatia under Regulation (EC) No 1085/2006 to support provided for under this 
Regulation."

- 5 - 

 
 
 
(6) 

In Annex I the fourth row is replaced by the following: 

" 

18(3) 

Investments in physical 
assets 

50% 

75% 

75% 

65% 

40% 

50% 

75% 

65% 

40% 

Agricultural sector 

Of the amount of eligible investment in 
less developed regions 
Of the amount of eligible investment in 
outermost regions 
Of the amount of eligible investment in 
Croatia for the implementation of 
Council Directive 91/676/EEC* within a 
maximum period of four years from the 
date of accession pursuant to Article 
3(2) and Article 5(1) of that Directive 
Of the amount of eligible investment in 
the smaller Aegean islands 
Of the amount of eligible investment in 
other regions 
The above rates may be increased by 
20%, provided that maximum combined 
support does not exceed 90%, for: 
- Young farmers setting up 
- Collective investments and integrated 
projects 
- Areas facing natural constraints as 
referred to in Article 33. 

- Operations supported in the framework 
of the EIP 

Processing  and  marketing  of  Annex  I 
products 

Of the amount of eligible investment in 
less developed regions 
Of the amount of eligible investment in 
outermost regions 
Of the amount of eligible investment in 
the smaller Aegean islands 
Of the amount of eligible investment in 
other regions 

The  above  rates  may  be  increased  by 
20%, provided that maximum combined 
support  does  not  exceed  90%,  for 
operations  supported  in  the  framework 
of the EIP 

* OJ L 375, 31.12.1991, p. 1." 

- 6 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

- 
Amendment  to  the  Commission  proposal  COM(2011)  625  final/3  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; 

- 
Amendment  to  the  Commission  proposal  COM(2011)  626  final/3  for  a  Regulation  of 
the  European  Parliament  and  of  the  Council  establishing  a  common  organisation  of  the 
markets in agricultural products (Single CMO Regulation); 

- 
Amendment  to  the  Commission  proposal  COM(2011)  627  final/3  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); 

- 
Amendment  to  the  Commission  proposal  COM(2011)  628  final/2  for  a  Regulation  of 
the European Parliament and of the Council on the financing, management and monitoring of 
the common agricultural policy. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure6  

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 action7  

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  

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; 

6 
7 

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

- 7 - 

 
 
 
                                                 
- 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 

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  

- 8 - 

 
 
 
 
 
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) 

(c) 

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; 

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. 

- 9 - 

 
 
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, as amended to take account of the Accession of Croatia, 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"8, the CAP is a 
genuinely European policy. Instead of operating 28 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. 

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.  

8 

COM(2011)500 final of 29 June 2011. 

- 10 - 

 
 
                                                 
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) envisaged9  

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 Communities10  

–  (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) 

9 

10 

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 
As referred to in Article 185 of the Financial Regulation. 

- 11 - 

 
 
                                                 
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. 

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 

- 12 - 

 
 
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. 

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

Furthermore the publication of information on the beneficiaries of the EAGF and EAFRD will 
reinforce the public control of the use of the money and contribute to the visibility and better 
understanding of the CAP. 

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.  

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. 

- 13 - 

 
 
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 Commission proposal regarding the application of direct payments in the transitional year 
2013 (COM(2011)630)11 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.  

The  reform  proposal  for  direct  payments  contains  a  provision  on  progressive  reduction  and 
capping  of  direct  payments.  The  product  of  capping,  to  be  transferred  to  rural  development, 
has been estimated in order to determine the net ceilings of direct payments (Annex III of the 
proposal). This estimation was based on assumptions as concerns the implementation of direct 
payments by Member States and will therefore be revised once Member States have notified 
their decisions on the implementation. Moreover, for Croatia, it is not possible to estimate the 
product of capping at this stage due to unavailability of data. A first rough estimate, based on 
preliminary information, showed that the product of capping would be null for Croatia. It will 
be revised once data are available.  

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  

11  

The European Parliament and Council are expected to adopt the regulation in autumn 2012. 

- 14 - 

 
 
                                                 
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) (5)
Estimated assigned revenue 

44 939
672

45 304
672

44 956
672

45 199
672

45 463
672

45 702
672

45 729
672

45 756
672

45 783 
672 

318 589 
4 704 

P1 Direct aids and market-related expenditure (with 
assigned revenue) (5) 

45 611 

45 976 

45 628 

45 871 

46 135 

46 374 

46 401 

46 428 

46 455 

323 293 

P2 Rural development (4)

14 817

14 451

14 784

14 784

14 784

14 784

14 784

14 784

14 784 

103 488 

Total 

Heading 1 

60 428

60 428

60 412

60 655

60 919

61 159

61 186

61 212

61 239 

426 781 

CSF Agricultural research and innovation 
Most deprived persons
Total 

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

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

682
379
1 061

696
387
1 082

710
394
1 104

724
402
1 126

738
410
1 149

753
418
1 172

768 
427 
1 195 

5 072 
2 818 
7 889 

Heading 3 

Food safety 

Outside MFF 

   Reserve for agricultural crises 

   European Globalisation Fund (EGF) 

N.A.

N.A.

352

352

352

352

352

352

352 

2 465 

N.A. 

N.A. 

531 

541 

552 

563 

574 

586 

598 

3 945 

Of which maximum available for agriculture: (6)

N.A.

N.A.

379

387

394

402

410

418

427 

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 

62 735 

63 017 

63 322 

63 602 

63 671 

63 740 

63 810 

443 898 

60 428 

60 428 

61 825 

62 089 

62 376 

62 637 

62 686 

62 736 

62 786 

437 136 

- 15 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 
(1) 
(2) 

(3) 
(4) 

(5) 
(6) 

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 of 29 June 2011) and the Commission's amended 
proposal for the MFF 2014-2020 (COM(2012)388 of 6 July 2012). 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. 
It includes the maximum amounts of the special reserve for de-mining for Croatia. 
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. 

- 16 - 

 
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 (1) 

2013 
adjusted 
(1) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

REVENUE 

123 – Sugar production charge (own resources) 

123 

123 

125 

125 

67 03 - Assigned revenue 

  of which: ex 05 07 01 06 - Accounting clearance 

Total 

EXPENDITURE 

05 02 - Markets (2) 

672 

0 

795 

672 

0 

795 

741 

69 

866 

741 

69 

866 

741 

69 

741 

741 

69 

741 

741 

69 

741 

741 

69 

741 

741 

69 

741 

3 311 

3 311 

2 652 

2 671 

2 700 

2 729 

2 752 

2 740 

2 729 

18 974 

05 03 - Direct aids (before capping) (3)  

42 170 

42 535 

42 970 

43 193 

43 428 

43 637 

43 641 

43 678 

43 715 

304 261 

05 03 – Direct aids (after capping) (3) (4) 

42 170 

42 535 

42 970 

43 028 

43 256 

43 453 

43 455 

43 492 

43 530 

303 184 

05 04 - Rural development (before capping) 

14 817 

14 451 

14 788 

14 788 

14 788 

14 788 

14 788 

14 788 

14 788 

103 516 

05 04 - Rural development (after capping) (4) 

14 817 

14 451 

14 788 

14 952 

14 960 

14 973 

14 974 

14 974 

14 974 

104 594 

05 07 01 06 - Accounting clearance 

-69 

-69 

0 

0 

0 

0 

0 

0 

0 

0 

Total 

60 229 

60 229 

60 410 

60 652 

60 916 

61 155 

61 181 

61 207 

61 232 

426 751 

NET BUDGET after assigned revenue  

59 669 

59 911 

60 175 

60 414 

60 440 

60 466 

60 491 

421 564 

- 17 - 

TOTAL 
2014-2020 

250 

5 187 

483 

5 437 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 
(1) 
(2) 

(3) 

(4) 

For comparison purposes, the 2013 figures are kept unchanged to the figures in the initial Commission proposals of 12 October 2011. 
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.  
The 2013 amount includes an estimate of wine grubbing-up 2012. The amounts for 2014-2020, shown in Table 2, do not include the special reserve for de-mining for Croatia, whereas the 
corresponding amounts, shown in Table 1 include the special reserve.  
The product of capping was estimated based on assumptions as concerns the implementation of direct payments by Member States and will therefore be revised once they have notified 
their decisions on the implementation. Moreover, for Croatia, it is not possible to estimate the product of capping at this stage due to unavailability of data. A first rough estimate, based 
on preliminary information, showed that the product of capping would be null for Croatia. It will be revised once data are available.  

- 18 - 

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

Budget year 

2013 (1) 

2013 
adjusted 
(1) 

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 (2) 

05 03 - Direct aids (before capping) (3) 

05 03 - Direct aids – Estimated product of capping (4) to be 
transferred to rural development 

672 

0 

795 

672 

0 

795 

69 

69 

69 

3 311 

3 311 

42 170 

42 535 

-659 

-460 

05 04 - Rural development (before capping) (5) 

14 817 

14 451 

05 04 - Rural development – Estimated product of capping (4) to 
be transferred from direct aids 

05 07 01 06 - Accounting clearance 

-69 

-69 

0 
4 

0 
69 

69 

69 

69 

-640 

-492 

-164 
4 

69 

69 

69 

-611 

-534 

-172 
4 

69 

69 

69 

-582 

-577 

-185 
4 

69 

69 

69 

-559 

-617 

-186 
4 

69 

69 

69 

-571 

-617 

-186 
4 

69 

69 

69 

-582 

-617 

-186 
4 

164 
69 

172 
69 

185 
69 

186 
69 

186 
69 

186 
69 

Total 

60 229 

60 229 

-1 046 

-1 059 

-1 072 

-1 085 

-1 103 

-1 114 

-1 126 

483 

483 

483 

-4 203 

-3 913 

-1 078 
28 

1 078 
483 

-7 605 

NET BUDGET after assigned revenue  

-1 115 

-1 128 

-1 141 

-1 154 

-1 172 

-1 183 

-1 195 

-8 088 

- 19 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 
(1) 
(2) 

(3) 

(4) 

(5) 

For comparison purposes, the 2013 figures are kept unchanged to the figures in the initial Commission proposals of 12 October 2011. 
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. 
The 2013 amount includes an estimate of wine grubbing-up 2012. The amounts for 2014-2020, shown in Table 3, do not include the special reserve for de-mining for Croatia , whereas 
the corresponding amounts, shown in Table 1 include the special reserve. 
The product of capping was estimated based on assumptions as concerns the implementation of direct payments by Member States and will therefore be revised once they have notified 
their decisions on the implementation. Moreover, for Croatia, it is not possible to estimate the product of capping at this stage due to unavailability of data. A first rough estimate, based 
on preliminary information, showed that the product of capping would be null for Croatia. It will be revised once data are available. 
The change compared to 2013 is solely due to the proposed transfer of the cotton national envelope to rural development (4 million EUR per year). In addition, the updated MFF 
proposals (COM(2012)388) foresee an additional amount of 333 million EUR per year. 

- 20 - 

 
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 

Removal of intervention for durum wheat and 
sorghum 

Food programmes for most deprived 

Art. 154, 155, 156 

ex Art.10 

(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 

Estimated 
needs 

2013  
(1) 

pm 

pm 

Changes to 2013 

In million EUR (current prices) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

- 

- 

- 

- 

- 

- 

- 

TOTAL 
2014-2020 

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) (6) 

-446.3 

-446.3 

-446.3 

-461.3 

-461.3 

-476.3 

-476.3 

-3 213.9 

- 21 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 
(1) 

(2) 
(3) 

(4) 
(5) 

(6) 

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 the ceiling set by Regulation (EU) No 121/2012  . 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. 
Table 4 shows the net effect of the reform proposals for affected market measures, whereas in table 3 the figures for "05 02 Markets" show the difference between the adjusted 2013 
amount and the estimated amounts available for market-related expenditure during 2014-2020. 

- 22 - 

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

In million EUR (current prices) 

BUDGET YEAR 

Legal base 

Estimated needs 

Changes to 2013 

2013 (1) 

2013 
adjusted 
(2) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Direct aids (3) 

42 169.9 

42 535.4 

434.2 

493.0 

720.1 

917.2 

919.7 

957.0 

994.3

5 435.6 

- Changes already 
decided: 

Phasing-in EU 12 

Cotton 
restructuring 

Health Check  

Previous reforms  

- Phasing-in Croatia (3) 

- Changes due to new CAP reform proposals 

Of  which:  capping 
(4) 

TOTAL 05 03 
Net effect of reform proposals 
TOTAL EXPENDITURE 

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 

-9.9 

-64.3 

-32.4 

-64.3 

-32.4 

-90.0 

-32.4 

-90.0 

-32.4 

-90.0 

-32.4 

-90.0

-32.4

-552.8 

-204.2 

93.3 

111.9 

130.6 

149.2 

186.5 

223.8 

261.1

1 156.3 

-459.8 

-656.1 

-706.5 

-761.3 

-802.2 

-802.2 

0.0 

-164.1 

-172.1 

-184.7 

-185.6 

-185.6 

-802.2

-185.6

-4 990.3 

-1 077.7 

42 169.9 

42 535.4 

-459.8 
42 969.7 

-656.1 
43 028.4 

-706.5 
43 255.6 

-761.3 
43 452.6 

-802.2 
43 455.2 

-802.2 
43 492.5 

-802.2
43 529.8

-4 990.3 
303 183.6 

Notes: 
(1) 
(2) 
(3) 
(4) 

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. 
It does not include the special reserve for de-mining for Croatia. 
The product of capping was estimated based on assumptions as concerns the implementation of direct payments by Member States and will therefore be revised once they have notified 
their decisions on the implementation. Moreover, for Croatia, it is not possible to estimate the product of capping at this stage due to unavailability of data. A first rough estimate, based 
on preliminary information, showed that the product of capping would be null for Croatia. It will be revised once data are available.  

- 23 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 6: Components of direct aids 

BUDGET YEAR 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2015-2020 

In million EUR (current prices) 

Annex II 

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 II (1) 

Capping (2) 
Cotton 
POSEI/Small Aegean Islands 

42 519.1 
12 900.1 

42 754.0 
12 894.5 

42 963.3 
12 889.0 

42 966.8 
12 890.0 

43 004.1 
12 901.2 

43 041.4
12 912.4

257 248.6 
77 387.2 

860.0 

859.6 

859.3 

859.3 

860.1 

860.8

5 159.1 

28 759.0 

28 999.9 

29 215.1 

29 217.4 

29 242.8 

29 268.1

174 702.2 

4 300.0 

4 298.2 

4 296.3 

4 296.7 

4 300.4 

4 304.1

25 795.7 

159.9 

159.9 

159.9 

159.9 

159.9 

159.9

959.1 

-164.1 
256.0 
417.4 

-172.1 
256.3 
417.4 

-184.7 
256.5 
417.4 

-185.6 
256.6 
417.4 

-185.6 
256.6 
417.4 

-185.6
256.6
417.4

-1 077.7 
1 538.6 
2 504.4 

(1) 

(2) 

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. For Croatia, it was not possible to 
estimate as the wine national programme will not be implemented in 2013 and Croatia has not notified any transfer at this stage. 
The product of capping was estimated based on assumptions as concerns the implementation of direct payments by Member States and will therefore be revised once they have notified 
their decisions on the implementation. Moreover, for Croatia, it is not possible to estimate the product of capping at this stage due to unavailability of data. A first rough estimate, based 
on preliminary information, showed that the product of capping would be null for Croatia. It will be revised once data are available. 

- 24 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

541.9
616.1

-64.3

-9.9

Phasing-in EU 10 

Health Check  

Previous reforms  

TOTAL 05 03 
TOTAL EXPENDITURE 

40 165.0 

40 530.5 

41 072.4

Notes: 
(1) 
(2) 

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. 

- 25 - 

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

BUDGET YEAR 

Legal base 

(2) 
(3) 

(4) 

(4) 
(5) 

Rural development programmes 

Aid for cotton - Restructuring 
Product of capping of direct 
aids 
RD envelope excluding 
technical assistance 

Technical assistance 
Prize for local innovative co-operation 
projects 
Additional RD amount (in line with 
COM(2012)388) 

TOTAL 05 04 
Net effect of reform proposals 
TOTAL EXPENDITURE (before 
capping) 
TOTAL EXPENDITURE (after 
capping) 

Rural development 
allocation 

2013 

14 788.9 

2013 
adjusted 
(1) 
14 423.4 

In million EUR (current prices) 

Changes to 2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

4.0 

4.0 
164.1 

4.0 
172.1 

4.0 
184.7 

4.0 
185.6 

4.0 
185.6 

4.0 
185.6 

28.0 
1 077.7 

-9.3 

-9.3 

-9.3 

-9.3 

-9.3 

-9.3 

-9.3 

-65.2 

27.6 
N.A. 

N.A. 

27.6 
N.A. 

9.3 
0.0 

4.3 
5.0 

4.3 
5.0 

4.3 
5.0 

4.3 
5.0 

4.3 
5.0 

4.3 
5.0 

35.2 
30.0 

N.A. 

333.0 

333.0 

333.0 

333.0 

333.0 

333.0 

333.0 

2 331.0 

14 816.6 

14 451.1 

4.0 
14 788.1 

168.1 
14 788.1 

176.1 
14 788.1 

188.7 
14 788.1 

189.6 
14 788.1 

189.6 
14 788.1 

189.6 
14 788.1 

1 105.7 
103 516.5 

14 816.6 

14 451.1 

14 788.1 

14 952.2 

14 960.2 

14 972.8 

14 973.7 

14 973.7 

14 973.7 

104 594.2 

Notes: 
(1) 
(2) 

(3) 

(4) 

(5) 

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) and the Commission's 
amended proposal for the MFF 2014-2020 (COM(2012)388 of 6 July 2012). 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. 
The product of capping was estimated based on assumptions as concerns the implementation of direct payments by Member States and will therefore be revised once they 
have notified their decisions on the implementation. Moreover, for Croatia, it is not possible to estimate the product of capping at this stage due to unavailability of data. A 
first rough estimate, based on preliminary information, showed that the product of capping would be null for Croatia. It will be revised once data are available. 
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. 
Covered by the amount available for technical assistance. 

- 26 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

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 
impact of Croatia's accession has not yet been taken into account in the figures indicated below. 

EUR million (to 3 decimal places) 

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 commitments  
= Total payments) 

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

Commitments 

Payments 

146.702  146.702  146.702  146.702  146.702  146.702  146.702 

1 026.914 

Year 
N12 

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) 

12 

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

- 27 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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: 

Indicate 
objectives and 
outputs  

(cid:216) 

Type 
of 
output 

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 

Average 
r
e
cost  
b
m
of the 
u
output  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 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total 
number 
of 
outputs 

Total  
cost 

TOTAL COST 

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

- 28 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 13 

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

13 

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

- 29 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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. The impact of Croatia's accession 
has not yet been taken into account in the figures indicated below. 

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)14 

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) 

TOTAL15 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

14 

15 

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. 

- 30 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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 
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 

- 31 - 

 
 
 
 
 
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: 

Specify the co-financing 
body  

TOTAL appropriations 
cofinanced 16 

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

MS 

Year 
2015 

MS 

Year 
2016 

MS 

Year 
2017 

MS 

Year 
2018 

MS 

Year 
2019 

MS 

Year 
2020 

MS 

Total 

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 

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/initiative17 

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.  

16 
17 

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

- 32 -