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)
Date: 2012-09-25
Institutions: European Commission
Subjects: Croatia, accession to the European Union, agricultural product, agricultural production, aid to agriculture, common organisation of markets, marketing standard, reform of the CAP

EUROPEAN COMMISSION 

Brussels, 25.9.2012  
COM(2012) 535 final 

2011/0281 (COD) 

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) 

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.  

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

In  relation  to  Croatia,  there  was  no  need  for  consultation  of  interested  parties  or  an  impact 
assessment since these adjustments follow from the Act of Accession.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The adjustment will take the form of an amendment to the 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), to include in 
the proposal those provisions specific to Croatia which are already in the Accession Treaty, 
i.e. on wine (transitional measures, inclusion of the wine names to be protected for Croatia in 
the  electronic  register  of  protected  designations  of  origin  and  protected  geographical 
indications, deadlines for submission and examination of the complete technical files and acts 
under which those names have been recognised, financial allocation to Croatia for the national 
support  programme  in  the  wine  sector,  wine-growing  zones  in  Croatia)  and  translation  of 
Croatian sales description for meat of bovine animals aged less than 12 months. For the sugar 
and  milk  quotas  in  Croatia,  the  Single  CMO  proposal  makes  reference  to  the  relevant 
provisions  of  Regulation  (EC)  No.  1234/2007  which  remain  in  place  until  the  expiration  of 
quotas in 2015, as for the other 27 Member States. 

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. 

1  
2  

OJ L 112 of 24 April 2012. 
COM(2012)388 of 6 July 2012. 

- 2 - 

 
 
                                                 
2011/0281 (COD) 

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) 

Commission proposal COM(2011) 626 final/3 is amended as follows: 

(1) 

"4. 

In Article 84, the following paragraph is added:  

For  Croatia,  the  wine  names  published  in  the  Official  Journal  of  the  European 
Union* shall be protected under this Regulation, subject to a favourable outcome of 
the objection procedure. The Commission shall list them in the register provided for 
in Article 81. 

* 

OJ C 116, 14.4.2011, p. 12." 

(2) 

Article 163 is replaced by the following: 

"Article 163 

Repeals 

1. Regulation (EC) No 1234/2007 is repealed. 

However,  the  following  provisions  of  Regulation  (EC)  No  1234/2007  [Regulation 
(EU) No COM(2010)799] shall continue to apply: 

(a) 

(b) 

as  regards  the  sugar  sector,  Title  I  of  Part  II,  Article  142,  the  first 
subparagraph of Article 153(1), Article 153(2) and (3), Article 156, Part 
II of Annex III and Annex VI [Title I of Part II, Articles 248, 260 to 262 
and Part II of Annex III of Regulation (EU) No COM(2010)799] until the 
end of the 2014/2015 marketing year for sugar on 30 September 2015;  

the provisions related to the system of milk production limitation set out 
in Chapter III of Title I of Part II and Annexes IX and X [Chapter III of 
Title  I  of  Part  II  and  Annexes  VIII  and  IX  of  Regulation  (EU)  No 
COM(2010)799], until 31 March 2015;  

(c) 

as regards the wine sector: 

(i)  Articles  85a  to  85e  [Articles  82  to  87  of    Regulation  (EU)  No 
COM(2010)799]  as  regards  areas  referred  to  in  Article  85a(2) 
[Article 82(2) of  Regulation (EU) No COM(2010)799] which have 
not yet been grubbed up and as regards areas referred to in Article 
85b(1)  [Article  83(1)  of    Regulation  (EU)  No  COM(2010)799] 
which have not been regularised until such areas are grubbed up or 
regularised, 

- 3 - 

 
 
 
(ii) 

the  transitional  planting  right  regime  set  out  in  Subsection  II  of 
Section  IVa  of  Chapter  III  of  Title  I  of  Part  II  [Subsection  II  of 
Section V of Chapter III of Title I of Part II of Regulation (EU) No 
COM(2010)799]  until  31  December  2015,  or,  to  the  extent 
necessary in order to give effect to any decision taken by Member 
States  under  Article  85g(5)  [Article  89(5)  of  Regulation  (EU)  No 
COM(2010)799], until 31 December 2018, 

(iii)  Article 118m(5) and Article 118s(5);  

(d)  Article  182(7)  [Article  291(2)  of  Regulation  (EU)  No  COM(2010)799],  

until 31 March 2014; 

(e) 

the  first  and  second  subparagraphs  of  Article  182(3)  [Article  293  of 
Regulation  (EU)  No  COM(2010)799]  until  the  end  of  the  2013/2014 
marketing year for sugar; 

(f)  Article 182(4)[Article 294 of Regulation (EU) No COM(2010)799] until 

31 December 2017.[;] 

[(g)  Article 326 of Regulation (EU) No COM(2010)799.] 

2. 

References 
to  Regulation  (EC)  No  1234/2007  [Regulation  (EU)  No 
COM(2010)799]  shall  be  construed  as  references  to  this  Regulation  and  to 
Regulation (EU) No […] [on the financing, management and monitoring of the 
common  agricultural  policy]  and  be  read  in  accordance  with  the  correlation 
tables set out in Annex VIII to this Regulation. 

3. 

Council  Regulations  (EC)  No  234/79,  (EC)  No  1601/96  and  (EC)  No 
1037/2001 are repealed." 

(3) 

In Annex IV, the following table is added: 

"Croatia 
2014 
11 885 
" 

2015 
11 885 

2016 
11 885 

2017 
10 832 

2018 
10 832 

2019 
10 832 

2020 
10 832 

(4) 
In Part I of Annex VI, the following row is inserted in the table in point II.1. (A) on 
the sales descriptions for the meat of bovine animals aged less than 8 months, after the entry for 
France: 

" 

Croatia 

" 

teletina 

In Part I of Annex VI, the following row is inserted in the table in point II. 1. (B) on 
(5) 
the  sales  descriptions  for  the  meat  of  bovine  animals  aged  from  8  months  to  less  than  12 
months, after the entry for France:  

" 

Croatia 

" 

mlada junetina 

- 4 - 

 
 
 
 
In the Appendix to Annex VI (referred to in Part II), the following point (h) is added 

(6) 
in point (2):  

"(h)  in  Croatia,  the  areas  planted  with  vines  in  the  following  sub-regions: 
Moslavina, Prigorje-Bilogora, Plešivica, Pokuplje and Zagorje-Međimurje." 

In the Appendix to Annex VI (referred to in Part II), the following point (h) is added 

(7) 
in point (3):  

in  Croatia,  areas  planted  with  vines  in  the  following  sub-regions:  Hrvatsko 

"(h) 
Podunavlje and Slavonija." 

In the Appendix to Annex VI (referred to in Part II), the following point (g) is added 

(8) 
in point (4):  

"(g)  in  Croatia,  areas  planted  with  vines  in  the  following  sub-regions:  Hrvatska 
Istra, Hrvatsko primorje, Dalmatinska zagora, Sjeverna Dalmacija and Srednja 
i Južna Dalmacija." 

- 5 - 

 
 
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 structure3  

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 
action4  

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; 

3 
4 

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

- 6 - 

 
 
 
                                                 
- 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 

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 

- 7 - 

 
 
 
 
 
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) 

(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) 
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. 

to 

- 8 - 

 
 
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"5, 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.  

5 

COM(2011)500 final of 29 June 2011. 

- 9 - 

 
 
                                                 
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) envisaged6  

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 Communities7  

–  (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) 

6 

7 

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. 

- 10 - 

 
 
                                                 
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 

- 11 - 

 
 
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. 

- 12 - 

 
 
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)8 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  

8  

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

- 13 - 

 
 
                                                 
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 

- 14 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. 

- 15 - 

 
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 

Notes: 
(1) 

For comparison purposes, the 2013 figures are kept unchanged to the figures in the initial Commission proposals of 12 October 2011. 

- 16 - 

TOTAL 
2014-2020 

250 

5 187 

483 

5 437 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) 

(3) 

(4) 

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.  

- 17 - 

 
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 

Notes: 
(1) 

For comparison purposes, the 2013 figures are kept unchanged to the figures in the initial Commission proposals of 12 October 2011. 

- 18 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) 

(3) 

(4) 

(5) 

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. 

- 19 - 

 
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 

Notes: 
(1) 

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. 

- 20 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) 
(3) 

(4) 
(5) 

(6) 

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. 

- 21 - 

 
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.  

- 22 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. 

- 23 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. 

- 24 - 

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

BUDGET YEAR 

Legal base 

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) 

(2) 
(3) 

(4) 

(4) 
(5) 

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. 

- 25 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 
N9 

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) 

9 

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

- 26 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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). 

- 27 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 10 

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

10 

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

- 28 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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)11 

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) 

TOTAL12 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

11 

12 

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. 

- 29 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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 

- 30 - 

 
 
 
 
 
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 13 

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/initiative14 

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.  

13 
14 

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. 

- 31 -