Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down certain transitional provisions on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and amending Regulation (EU) No […] [RD] as regards resources and their distribution in respect of the year 2014 and amending Council Regulation (EC) No 73/2009 and Regulations (EU) No […][DP], (EU) No […][HZ] and (EU) No […][sCMO] as regards their application in the year 2014
Date: 2013-04-18
Institutions: European Commission
Subjects: EAFRD, agricultural expenditure, aid to agriculture, commitment of expenditure, eligibility criteria, single payment scheme

EUROPEAN 
COMMISSION 

Brussels, 18.4.2013  
COM(2013) 226 final 

2013/0117 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down certain transitional provisions on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) and amending 
Regulation (EU) No […] [RD] as regards resources and their distribution in respect of 
the year 2014 and amending Council Regulation (EC) No 73/2009 and Regulations (EU) 
No […][DP], (EU) No […][HZ] and (EU) No […][sCMO] as regards their application in 
the year 2014 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  European  Commission  is  working  intensively  to  reach  an  agreement  between  EU 
institutions on the reform of the CAP which will permit the reformed CAP to enter into force 
on 1st of January 2014. 

With the pursued objective of reaching an agreement between the Institutions on the MFF and 
a political agreement  on  the Common  Agricultural Policy (CAP) reform before the summer 
2013, the legal bases for the reformed CAP are foreseen to enter into force on 1st of January 
2014. 

However, transitional rules are needed to define technical arrangements which will permit a 
smooth  adaptation  to  the  new  conditions,  while  at  the  same  time  ensuring  continuity  of  the 
different forms of support under the CAP. 

As  regards  direct  payments,  sufficient  time  must  be  available  to  allow  Member  States,  and 
especially their paying agencies, to be well prepared and to inform in details farmers on new 
rules  enough  in  advance.  Therefore,  the  claims  for  2014  will  be  treated  under  transitional 
rules.  

As  for  the  second  pillar,  the  definition  of  transitional  rules  between  the  two  programming 
periods represents standard practice. Transitional rules are generally needed to bridge the two 
consecutive  programming  periods,  as  already  experienced  at  the  beginning  of  the  current 
programming period. However, for rural development, there is this time also a need for some 
specific transitional arrangements, notably to deal with the implications which the delay of the 
new direct payment regime has for certain rural development measures especially as regards 
the  baseline  for  agri-environment  and  climate  measures  and  the  application  of  the  cross-
compliance rules. Transitional arrangements are also needed to ensure that MS can keep on 
undertaking  new  commitments  for  area  and  animal-related  measures  in  2014  even  if  the 
resources  for  the  current  period  have  been  exhausted.  These  new  commitments,  as  well  as 
corresponding  on-going  commitments  shall  be  eligible  from  the  new  financial  envelopes  of 
the rural development programmes of the next programming period.  

For the horizontal regulation, the need for transitional measures is limited to the FAS, IACS 
and cross-compliance, due to their link to the direct payments.  

In  light  of  the  above,  specific  transitional  rules  need  to  be  adopted  by  the  Council  and  the 
European Parliament before the end of the year, amending the current CAP basic acts where 
necessary. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

In relation to the transitional rules, there was no need for consultation of interested parties or 
an impact assessment since these adjustments follow from the state of play of the discussions 
between the Institutions regarding the MFF and the CAP reform. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

For direct payments, the transitional measures first provide for the prolongation of the main 
elements  of  the  existing  schemes  –  SPS,  SAPS,  coupled  regimes,  also  those  granted  as 
specific support under Article 68 – for claim year 2014. Secondly, they incorporate, subject to 
agreement  of  the  European  Parliament  the  financial  impacts  of  the  European  Council 

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conclusions  of  8  February;  including  the  start  of  the  external  convergence  process.  The 
introduction  of  transitional  measures  implies  that  certain  of  the  dates  included  in  the 
Commission  proposal  for  direct  support  after  2013  will  have  to  be  adapted  accordingly  in 
order to ensure consistency with this draft Regulation.  

For rural development, transitional rules will have to be established to define how the current 
measures  would  be  carried  over  to  the  next  programming  period,  including  their  financing 
from  the  new  financial  envelope.  In  addition,  these  rules  define  which  baseline  and  cross-
compliance  rules  should  apply  in  2014.  Finally,  these  rules  establish  transitional  provisions 
for Croatia.  

The transitional measures also include provisions regarding the possibility for Member States 
to transfer funds between pillars. Such flexibility mechanism is an element of the CAP reform 
to be decided by ordinary legislative procedure. Both the European Parliament on 13 March 
2013 and the Agriculture Council on 19 March 2013 took position on this issue. Whilst the 
Council  took  over  the  European  Council  conclusions  on  the  MFF,  the  EP  increased  the 
percentages proposed by the Commission to 15% for transfer to the second pillar and 10% for 
transfers to the first pillar, the latter being allowed only to those MS with an average payment 
below 90% of the EU average. To indicate that the present proposal is without prejudice to the 
final  decision  that  will  be  taken  by  the  legislator  on  this  specific  element,  the  parts  of  the 
Article  included  in  the  transitional  measures  that  differ  from  Article  14  of  the  Commission 
proposal for direct support after 2013 have been put within square brackets.   

4. 

BUDGETARY IMPLICATION  

This draft Regulation only implements the Commission proposals on the MFF and the CAP 
reform  for  financial  year  2015  taking  into  account  the  European  Council  conclusions  of  8 
February 2013. It incorporates the external convergence of the direct payments, the flexibility 
between the CAP pillars and the co-financing rate for rural development. The new elements 
arising  from  the  European  Council  conclusions  are  put  within  square  brackets  pending  the 
final agreement on the MFF.  

For  direct  payments,  the  European  Council  conclusions  of  8  February  2013  correspond, 
compared to the Commission proposal, to a reduction of EUR 830 million (in current prices) 
in  financial  year  2015  (corresponding  to  claim  year  2014  for  direct  payments).  The 
distribution of direct payments  ceilings  among  Member  States  takes account  of the external 
convergence  as  it  should  start  from  financial  year  2015.  Compared  to  the  Commission 
proposal,  the  European  Council  conclusions  modify  the  timeframe  of  the  convergence  (6 
years) and add a minimum of 196 EUR/ha to be reached by financial year 2020.  

Compared to the Commission proposal, the flexibility between pillars is increased according 
to the European Council conclusions. It will be budgetary neutral as exactly the same amounts 
reduced from one Fund (EAGF or EAFRD) will be made available to the other Fund (EAGF 
or EAFRD). 

As regards rural development, this draft Regulation aims to ensure the continuity of a number 
of measures involving multiannual commitments. Those provisions have no financial impact 
as the rural development allocation remains unchanged. However, the distribution over time 
of the payments might be slightly different than otherwise but it cannot be quantified at this 
stage. 

Details  on  the  financial  impact  of  this  proposal  are  set  out  in  the  financial  statement 
accompanying the proposals.  

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2013/0117 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down certain transitional provisions on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) and amending 
Regulation (EU) No  [RD] as regards resources and their distribution in respect of the 
year 2014 and amending Council Regulation (EC) No 73/2009 and Regulations (EU) No 
[DP], (EU) No [HZ] and (EU) No [sCMO] as regards their application in the year 2014 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 
Having regard to the opinion of the European Economic and Social Committee1, 
Having regard to the opinion of the Committee of the Regions2,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

Regulation (EU) No […] [RD] of the European Parliament and of the Council of… on 
support  for  rural  development  by  the  European  Agricultural  Fund  for  Rural 
Development  (EAFRD)3,  which  is  to  apply  from  1  January  2014,  lays  down  rules 
governing Union support for rural development and repeals Council Regulation (EC) 
No  1698/2005  of  20  September  2005  on  support  for  rural  development  by  the 
European  Agricultural  Fund  for  Rural  Development  (EAFRD)4,  without  prejudice  to 
the continued application of the Regulations implementing that Regulation until they 
are  repealed  by  the  Commission.  To  facilitate  the  transition  from  existing  support 
schemes  under  Regulation  (EC)  No  1698/2005  to  the  new  legal  framework  which 
covers  the  programming  period  starting  on  1  January  2014  ("the  new  programming 
period"), transitional rules should be adopted to avoid any difficulties or delays in the 
implementation  of  rural  development  support,  which  may  result  from  the  time  of 
adoption of the new rural development programs. For that reason it should be provided 
that Member States may continue to undertake legal commitments under their existing 
rural  development  programs  in  2014  for  certain  measures  and  that  the  resulting 
expenditure shall be eligible for support in the new programming period.  

(2) 

In  view  of  the  substantial  change  in  the  method  for  the  delimitation  of  areas  facing 
significant  natural  constraints  proposed  for  the  forthcoming  programming  period,  it 

1 
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4 

OJ C , , p. . 
OJ C , , p. . 
OJ L […], […], p. […]. 
OJ L 277, 21.10.2005, p. 1. 

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should be provided that for new legal commitments undertaken in 2014 the obligation 
for the farmer to continue farming in the area for 5 years does not apply. 

To  ensure  legal  certainty  in  the  transition  it  should  be  provided  that  expenditure 
undertaken pursuant to Regulation (EC) No 1698/2005 under area and animal related 
measures  should  be  eligible  for  an  EAFRD  contribution  in  the  new  programming 
period  when  there  are  still  payments  to  be  made.  In  the  interest  of  sound  financial 
management  and  effective  programme  implementation,  such  expenditure  should  be 
clearly  identified  in  the  rural  development  programmes  and  throughout  the 
management and control systems of the Member States. In order to avoid unnecessary 
complexity in the financial management of rural development programmes in the new 
programming  period,  it  should  be  provided  that  the  co-financing  rates  of  the  new 
programming period shall apply to transitional expenditure. 

Regulation (EU) No […] of the European Parliament and of Council of… establishing 
rules for direct payments to farmers under support schemes within the framework of 
the  common  agricultural  policy  [DP]5  sets  up  new  support  schemes  and  is  to  apply 
from 1 January 2014. That date of application would not allow that the administrative 
and practical arrangements needed for the lodging of applications for 2014 are set up 
in time. For that reason, the application of the new direct payments regime needs to be 
postponed  by  one  year.  Council  Regulation  (EC)  No  73/2009  of  19  January  2009 
establishing common rules for direct support schemes for farmers under the common 
agricultural  policy  and  establishing  certain  support  schemes  for  farmers  under  the 
common  agricultural  policy  and  establishing  certain  support  schemes  for  farmers6 
should  therefore  continue  to  form  the  basis  on  which  to  grant  income  support  for 
farmers in calendar year 2014, while taking due account of [Regulation laying down 
the Multiannual Financial Framework]7. 

Given that Regulation (EC) No 73/2009 is to continue to apply in 2014 and in order to 
ensure  consistency  in  the  implementation  of  the  provisions  on  cross-compliance  and 
the  respect  of  the  standards  required  by  certain  measures,  it  should  be  provided  that 
the  relevant  provisions  that  apply  in  the  2007-2013  programming  period  continue  to 
apply until the new legislative framework becomes applicable. For the same reasons, it 
should  be  provided  that  the  provisions  relating  to  complementary  national  direct 
payments for Croatia that apply in 2013 continue to apply. 

Pursuant  to  Article  76  of  Regulation  (EU)  No  […][HZ]  of  the  European  Parliament 
and the Council8 Member States will be able to pay advances for the direct payments. 
Under  Regulation  (EC)  No  73/2009  such  possibility  needs  to  be  authorised  by  the 
Commission. Experience in the implementation of direct support schemes shows that 
it  is  appropriate  to  allow  for  farmers  to  receive  advance  payments.  As  regard 
applications  made  in  2014,  those  advances  should  be  limited  to  up  to  50%  of  the 
support schemes listed in Annex I to Regulation (EC) No 73/2009 and to up to 80% of 
the beef and veal payment.  

In  order  to  respect  [Regulation  laying  down  the  Multiannual  Financial  Framework], 
and  in  particular  the  levelling  of  the  amount  available  for  granting  direct  support  to 
farmers as well as the external convergence mechanism, it is necessary to modify the 
national  ceilings  fixed  in  Annex  VIII  to  Regulation  (EC)  No  73/2009  for  2014.  The 

OJ L […], […], p. […]. 
OJ L 30, 31.1.2009, p. 16. 
OJ L […], […], p. […]. 
OJ L […], […], p. […]. 

(3) 

(4) 

(5) 

(6) 

(7) 

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(8) 

(9) 

modification  of  the  national  ceilings  will  inevitably  have  an  impact  on  the  amounts 
that individual farmers may receive as direct payments in 2014. The way in which this 
modification will impact on the value of payment entitlements and the level of other 
direct payments should therefore be laid down.  

Experience  gained  in  the  financial  implementation  of  Regulation  (EC)  No  73/2009 
showed that there was a need for clarifying certain provisions, in particular as regards 
the elements covered by the figures set out in Annex VIII to that Regulation and the 
link with the possibility given to Members States to use the funds unspent in the single 
payment scheme to finance the specific support. As Article 40 of Regulation (EC) No 
73/2009  has  to  be  modified  in  order  to  make  clear  how  Member  States  will  have  to 
take into account the variations in the national ceilings, it is appropriate to take this as 
an opportunity to clarify the wording of the relevant provisions. 

Under  Regulation  (EC)  No  73/2009,  Member  States  had  the  possibility  to  decide  to 
use a certain percentage of their national ceiling for specific support for their farmers 
as well as to review a previous decision by deciding to modify, or put an end to, such 
support.  It  is  appropriate  to  provide  for  an  additional  review  of  those  decisions  with 
effect from calendar year 2014. At the same time, the special conditions under which 
the  specific  support  is  paid  in  some  Member  States  pursuant  Article  69(5)  of 
Regulation (EC) No 73/2009, which are due to expire in 2013, need to be extended for 
one more year, in order to avoid disruption in the degree of support.  

(10)  The  single  area  payment  scheme  laid  down  in  Regulation  (EC)  No  73/2009  has  a 
transitional  nature  and  was  due  to  end  on  31  December  2013.  Since  the  new  basic 
payment scheme will replace the single payment scheme only as from 1 January 2015, 
an extension of the single area payment scheme for the year 2014 is necessary in order 
to  prevent  new  Member  States  from  having  to  apply  the  single  payment  scheme  for 
only one year. 

(11)  With  a  view  to  allowing  Member  States  to  address  the  needs  of  their  agricultural 
sectors  or  to  strengthen  their  rural  development  policy  in  a  more  flexible  way,  they 
should be given the possibility to transfer funds from their direct payments ceilings to 
their  support  assigned  for  rural  development  and  from  the  suport  assigned  for  rural 
development to their direct payments ceilings. At the same time, Member States where 
the  level  of  direct  support  remains  lower  than  90  %  of  the  Union  average  level  of 
support should be given the possibility to transfer additional funds from their support 
assigned for rural development to their direct payments ceilings. Such choices should 
be made, within certain limits, once and for the whole period of financial years 2015-
2020. 

(12)  According to Article 22 of Directive 2000/60/EC of the European Parliament and of 
the Council of 23 October 2000 establishing a framework for Community action in the 
field  of  water  policy9,  Council  Directive  80/68/EEC  of  17  December  1979  on  the 
protection of groundwater against pollution caused by certain dangerous substances10
is  repealed  from  22  December  2013.  In  order  to  maintain  the  rules  under  cross 
compliance related to protection of groundwater, it is appropriate to adjust the scope of 
cross-compliance  and  to  define  a  standard  of  good  agricultural  and  environmental 
condition encompassing the requirements of Articles 4 and 5 of Directive 80/68/EEC.  

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10 

OJ L 327, 22.12.2000, p. 1. 
OJ L 20, 26.1.1980, p. 43. 

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(13)  Regulation  (EU)  No  […][sCMO]  of  the  European  Parliament  and  of  the  Council11 
provides for the integration of the support for silkworm rearing into the direct support 
regime  and  therefore  its  removal  from  Regulation  (EU)  No  […][sCMO].  In  view  of 
the delayed application of the new direct support regime, it is appropriate to provide 
for the continuation of the aids in the silkworm sector for one more year. 

(14)  Moreover,  the  provisions  on  the  farm  advisory  system,  the  integrated  administration 
and control system and cross compliance laid down in Title III, Chapter II of Title V 
and  Title  VI,  respectively,  of  Regulation  (EU)  No  […][HZ]  of  the  European 
Parliament  and  of  the  Council  on  the  financing,  management  and  monitoring  of  the 
common agricultural policy12 should apply from 1 January 2015. 

(15)  Following  the  insertion  of  Article  136a  into  Regulation  (EC)  No  73/2009  and  the 
replacement of Article 14 of Regulation (EU) No [DP], which applies from 1 January 
2015,  references  to  Article  14  of  Regulation  (EU)  No  [DP]  in  Regulation  (EU)  No 
[…] [RD] need to be amended.  

(16)  Regulations  (EC)  No  73/2009,  (EU)  No  […][DP],  (EU)  No  […][HZ],  (EU)  No 
[…][sCMO] and (EU) No […] [RD] should therefore be amended accordingly. 

(17)  This  Regulation  should  apply  from  1  January  2014.  In  order  to  avoid  any  overlap 
between  the  rules  on  flexibility  between  pillars  laid  down  in  Regulation  (EC)  No 
73/2009 and Regulation (EU) No [DP] as amended by this Regulation, it is appropriate 
to provide that that particular amendment to Regulation (EC) No 73/2009 is to apply 
from  the  date  of  entry  into  force  of  this  Regulation  and  that  the  amendments  of 
Regulation (EU) No [DP], including its deferred application from 1 January 2015, are 
to apply from the date of entry into force of Regulation (EU) No [DP]. Furthermore, 
the  amendment  of  Annexes  II  and  III  to  Regulation  (EC)  No  73/2009  should  apply 
from 22 December 2013,  

HAVE ADOPTED THIS REGULATION: 

CHAPTER 1 

Transitional provisions on support for rural development 

Article 1 

1. 

Legal commitments under Regulation (EC) No 1698/2005 in 2014 

By  way  of  derogation  from  Article  94  of  Regulation  (EU)  No  […]  [RD],  for  the 
measures  of  Article  36(a)(i)  to  (v)  and  (b)(iv)  and  (v)  of  Regulation  (EC)  No 
1698/2005,  Member  States  may  continue  to  undertake  new  legal  commitments  to 
beneficiaries in 2014 pursuant to the rural development programmes adopted on the 
basis  of  Regulation  (EC)  No  1698/2005  even  after  the  financial  resources  of  the 
2007-2013  programming  period  have  been  used  up,  until  the  adoption  of  the 
respective  rural  development  programme  for  the  2014-2020  programming  period. 
The  expenditure  incurred  on  the  basis  of  these  commitments  shall  be  eligible  in 
accordance with Article 3 of this Regulation.  

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12 

OJ L […], […], p. […]. 
OJ L […], […], p. […]. 

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2. 

The condition of the second indent of Article 14(2) of Council Regulation (EC) No 
1257/199913 shall not apply to new legal commitments undertaken by Member States 
under Article 36(a)(i) and (ii) of Regulation (EC) No 1698/2005 in 2014. 

Article 2 

Continued application of Articles 50a and 51 of Regulation (EC) No 1698/2005 

By way of derogation from Article 94 of Regulation (EU) No […] [RD], Articles 50a and 51 
of Regulation (EC) No 1698/2005 shall continue to apply until 31 December 2014 in relation 
to operations selected under the rural development programmes of the 2014-2020 
programming period pursuant to Article 22(1)(a) and (b) of Regulation (EU) No […] [RD] as 
regards the annual premium and Articles 29 to 32 and 34 and 35 of that Regulation. 

Article 3 

Eligibility of certain types of expenditure 

1. 

By  way  of  derogation  from  Article  7(1)  of  Regulation  (EU)  No  […]  [RD], 
expenditure  relating  to  legal  commitments  to  beneficiaries,  undertaken  under  the 
measures  of  Article  36(a)(i)  to  (v)  and  (b)(iv)  and  (v)  of  Regulation  (EC)  No 
1698/2005 and of Article 36(b)(i) and (iii) of that Regulation in relation to the annual 
premium,  shall  be  eligible  for  an  EAFRD  contribution  in  the  2014-2020 
programming period in the following cases: 

(a) 

for  payments  to  be  made  between  1  January  2014  and  31  December  2015,  if 
the financial allocation for the measure concerned of the respective programme 
adopted pursuant to Regulation (EC) No 1698/2005 has already been used up; 
and 

(b) 

for payments to be made after 31 December 2015. 

2. 

The  expenditure  referred  to  in  paragraph  1  shall  be  eligible  for  an  EAFRD 
contribution  in  the  2014-2020  programming  period  subject  to  the  following 
conditions: 

(a) 

(b) 

such  expenditure  shall  be  provided  for  in  the  respective  rural  development 
programme for the 2014-2020 programming period; 

the  EAFRD  contribution  rate  of  the  corresponding  measure  under  Regulation 
(EU) No […] [RD] as set out in Annex I to this Regulation shall apply; 

(c)  Member States shall ensure that the relevant transitional operations are clearly 

identified through their management and control systems. 

Article 4 

Application of certain provisions of Regulation (EC) No 73/2009 in 2014  

1. 

For  2014,  the  reference  to  Chapter  I  of  Title  VI  of  Regulation  (EU)  No  [HZ]  in 
Articles  29,  30,  31  and  34  of  Regulation  (EU)  No  […]  [RD]  shall  be  read  as  a 
reference to Articles 5 and 6 of Regulation (EC) No 73/2009 and Annexes II and III 
thereto.  

13 

OJ L 160 , 26.6.1999, p. 80. 

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2. 

For 2014, the reference in Article 40a(1) of Regulation (EU) No […] [RD] to Article 
17a  of  Regulation  (EU)  No  [DP]  shall  be  read  as  a  reference  to  Article  132  of 
Regulation (EC) No 73/2009. For the same year, the reference in Article 40a(2)(a) of 
Regulation (EU) No […] [RD] to Article 16a of Regulation (EU) No [DP] shall be 
read as a reference to Article 121 of Regulation (EC) No 73/2009. 

CHAPTER 2 

Amendments 

Article 5 

Amendments to Regulation (EC) No 73/2009 

1. 

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

(1) 

In Article 29, the following paragraph is added: 

"5.  By way of derogation from paragraph 2, Member States may pay, from 
16  October  2014,  advances  to  farmers  of  up  to  50  %  of  the  direct 
payments  under  the  support  schemes  listed  in  Annex  I  in  respect  of 
applications made in 2014.  

Regarding  the  beef  and  veal  payments  provided  for  in  Section  11  of 
Chapter 1 of Title IV, Member States may increase the amount referred 
to in the first subparagraph to up to 80 %." 

(2)  Article 40 is replaced by the following: 

"Article 40 

National ceilings 

1. 

For  each  Member  State  and  each  year,  the  total  value  of  all  allocated 
payment entitlements, of the national reserve as referred to in Article 41 
and  of  the  ceilings  fixed  in  accordance  with  Articles  51(2)  and  69(3) 
shall  be  equal  to  the  respective  national  ceiling  determined  in  Annex 
VIII.  

2.  Where necessary, a Member State shall make a linear reduction/increase 
in the value of all payment entitlements and/or the amount of the national 
reserve as referred to in Article 41 in order to ensure compliance with the 
ceiling determined in Annex VIII. 

3.  Without  prejudice  to  Article  25  of  Regulation  (EU)  No  [HZ]  of  the 
European  Parliament  and  of  the  Council*,  the  amounts  of  direct 
payments which may be granted in a Member State in respect of calendar 
year 2014 under Articles 34, 52, 53 and 68 of this Regulation and for the 
aid  to  silkworm  rearers  under  Article  111  of  Regulation  (EC)  No 
1234/2007 shall not be higher than the ceilings set out in Annex VIII to 
this  Regulation  for  that  year.  Where  necessary,  and  in  order  to  comply 
with  the  ceilings  set  out  in  Annex  VIII,  Member  States  shall  make  a 
linear reduction in the amounts of direct payments in respect of calendar 
year 2014. 

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* 

OJ L …, …, p." 

(3) 

In Article 51(2), the following subparagraph is added: 

"For 2014, the ceilings for the direct payments referred to in Articles 52 and 53 
shall  be  identical  to  the  ceilings  determined  for  2013,  multiplied  by  a 
coefficient to be calculated for each Member State concerned by dividing the 
national ceiling for 2014 set out in Annex VIII by the national ceiling for 2013. 
This  multiplication  shall  only  apply  to  Member  States  where  the  national 
ceiling  set  out  in  Annex  VIII  for  2014  is  lower  than  the  national  ceiling  for 
2013."  

(4) 

In Article 68(8), the introductory phrase is replaced by the following: 
"8.  By  ...14,  the  Member  States  that  took  the  decision  referred  to  in  Article 

69(1) may review it and decide, with effect from 2014, to:" 

(5)  Article 69 is amended as follows: 

(a)  Paragraph 1 is replaced by the following: 

"1.  Member  States  may  decide,  by  1  August  2009,  1  August  2010,  1 
August 2011, 1 September 2012 or by […15], to use, from the year 
following such decision, or in the case of a decision taken by [...], 
from the year 2014, up to 10 % of their national ceiling referred to 
in  Article  40,  or,  in  the  case  of  Malta,  the  amount  of  EUR  2  000 
000 for the specific support provided for in Article 68(1)."; 

(b) 

In paragraph 3, the second subparagraph is replaced by the following: 

"For the sole purposes of ensuring compliance with the national ceilings 
as provided for in Article 40(2) and making the calculation referred to in 
Article 41(1), the amounts used to grant the support referred to in point 
(c) of Article 68(1) shall be deducted from the national ceiling referred to 
in  Article  40(1).  They  shall  be  counted  as  allocated  payment 
entitlements. " 

(c) 

In the first sentence of paragraph 5,"2013" is replaced by "2014"; 

(d) 

In paragraph 6, the second subparagraph is replaced by the following: 

"For the sole purposes of ensuring compliance with the national ceilings 
provided  for  in  Article  40(2)  and  making  the  calculation  referred  to  in 
Article  41(1),  where  a  Member  State  makes  use  of  the  option  provided 
for  in  point  (a)  of  the  first  subparagraph  of  this  paragraph,  the  amount 
concerned  shall  not  be  counted  as  part  of  the  ceilings  fixed  under 
paragraph 3 of this Article." 

(6) 

In Article 90, paragraph 3 is replaced by the following: 

"3.  The  amount  of  the  aid  per  eligible  hectare  shall  be  established  by 
multiplying  the  yields  established  in  paragraph  2  with  the  following 
reference amounts:  

Bulgaria: EUR [520,20]  

Greece: EUR [234,18]  

14 
15 

OJ please insert the date one month from the date of application of this Regulation. 
OJ please insert the date one month from the date of application of this Regulation. 

EN 

10 

   EN 

                                                 
Spain: EUR [362,15] 

Portugal: EUR [228,00]." 

(7) 

In Article 122, paragraph 3 is replaced by the following: 

"3.  The  single  area  payment  scheme  shall  be  available  until  31  December 

2014." 

(8) 

In Article 131, paragraph 1 is replaced by the following: 

"1.  The  new  Member  States  applying  the  single  area  payment  scheme  may 
decide, by 1 August 2009, 1 August 2010, 1 August 2011, 1 September 
2012 or by […16], to use, from the year following that decision, or in the 
case of a decision taken by […17], from the year 2014, up to 10 % of their 
national  ceilings  referred to  in Article 40 to grant support to farmers as 
set out in Article 68(1) and in accordance with Chapter 5 of Title III, as 
applicable to them." 

(9) 

In Title VI, the following Article 136a is inserted: 

"Article 136a 

Flexibility between pillars 

"1.  Before  ...18,  Member  States  may  decide  to  make  available  as  additional 
support  for  measures  under  rural  development  programming  financed 
under the EAFRD as specified  under  Regulation  (EU)  No  […]  [RD]  of 
the  European  Parliament  and  of  the  Council*,  up  to  [15]  %  of  their 
annual  national  ceilings  for  calendar  years  2014  to  2019  as  set  out  in 
Annex  VIII  to  this  Regulation  for  year  2014  and  in  Annex  II  to 
Regulation  (EU)  No  [DP]  of  the  European  Parliament  and  of  the 
Council**,  for  years  2015-2019.  As  a  result,  the  corresponding  amount 
shall no longer be available for granting direct payments. 

2. 

The decision referred to in the first subparagraph shall be notified to the 
Commission by the date referred to in that subparagraph. 

The  percentage  notified  in  accordance  with  the  second  subparagraph 
shall be the same for the years referred to in the first subparagraph. 

[Member  States]  not  using  the  possibility  under  paragraph  1,  [may 
decide,  before  ...19,  to  make  available  as  direct  payments  under  this 
Regulation  and  Regulation  (EU)  No  [DP]  up  to  [15]  %  of  the  amount 
allocated to support for measures under rural development programming 
financed  under  the  EAFRD  in  the  period  2015-2020  as  specified  under 
Regulation  (EU)  No  […]  [RD]].  Bulgaria,  Estonia,  Finland,  Latvia, 
Lithuania,  Poland, Portugal,  Romania, Slovakia,  Spain, Sweden and the 
United-Kingdom  may  decide  to  make  available  as  direct  payments  an 
[additional] [10%] of the amount allocated under rural development. As a 

16 
17 
18 
19 

OJ please insert the date one month from the date of application of this Regulation. 
OJ please insert the date one month from the date of application of this Regulation. 
OJ please insert the date 7 days from the date of entry into force of this Regulation.  
OJ please insert the date 7 days from the date of entry into force of this Regulation.  

EN 

11 

   EN 

 
                                                 
result, the corresponding amount shall no longer be available for support 
measures under rural development programming. 

The decision referred to in the first subparagraph shall be notified to the 
Commission by the date referred to in that subparagraph. 

The  percentage  notified  in  accordance  with  the  second  subparagraph 
shall  be  the  same  for  the  years  referred  to  in  the  first  subparagraph  of 
paragraph 1. 

3. 

In  order  to  take  account  of  the  decisions  notified  by  Member  States  in 
accordance  with  paragraphs  1  and  2,  the  Commission  shall  be 
empowered  to  adopt  delegated  acts  in  accordance  with  Article  141a 
reviewing the ceilings set out in Annex VIII. 

* 

** 

OJ L …, …, p. 

OJ L …, …, p. " 

(10)  Article 141a is replaced by the following: 

"Article 141a 

Exercise of the delegation  

1. 

2. 

3. 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission 
subject to the conditions laid down in this Article.  

The  power  to  adopt  delegated  acts  referred  to  in  Article  11a  shall  be 
conferred on the Commission for a period from 1 September 2012 until 
31  December  2014.  The  power  to  adopt  delegated  acts  referred  to  in 
Article 136a(3) shall be conferred on the Commission for a period from 
[…20] until 31 December 2014. 

The  delegation  of  power  referred  to  in  Article  11a  and  Article  136a(3) 
may  be  revoked  at  any  time  by  the  European  Parliament  or  by  the 
Council.  A  decision  to  revoke  shall  put  an  end  to  the  delegation  of  the 
power specified in that decision. It shall take effect the day following the 
publication of the decision in the Official Journal of the European Union 
or at a later date specified therein. It shall not affect the validity of any 
delegated acts already in force.  

4.  As  soon  as  it  adopts  a  delegated  act,  the  Commission  shall  notify  it 

simultaneously to the European Parliament and to the Council.  

5.  A delegated act adopted pursuant to Article 11a and Article 136a(3) shall 
enter  into  force  only  if  no  objection  has  been  expressed  either  by  the 
European  Parliament  or  the  Council  within  a  period  of  two  months  of 
notification of that act to the European Parliament and the Council or if, 
before the expiry of that period, the European Parliament and the Council 
have both informed the Commission that they will not object. That period 
shall  be  extended  by  two  months  at  the  initiative  of  the  European 
Parliament or of the Council." 

20 

OJ please insert the date 7 days from the date of entry into force of this Regulation.  

EN 

12 

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(11)  Annexes  II,  III  and  VIII  are  amended  in  accordance  with  Annex  II  to  this 

Regulation. 

Article 6 

Amendments to Regulation (EU) No […][DP] 

Regulation (EU) No […] [DP] is amended as follows: 

(1) 

In Article 6, paragraph 2 is replaced by the following: 

"2. 

In  order  to  take  account  of  the  developments  relating  to  the  total  maximum 
amounts of direct payments that may be granted, including those resulting from 
the decisions taken by the Member States  in accordance with Article 136a of 
Regulation  (EC)  No  73/2009  and  Article  14  of  this  Regulation  and  those 
resulting  from  the  application  of  the  second  paragraph  of  Article  17b  of  this 
Regulation,  the  Commission  shall  be  empowered  to  adopt  delegated  acts  in 
accordance with Article 55 of this Regulation for the purpose of reviewing the 
national ceilings set out in Annex II to this Regulation." 

(2) 

Article 14 is replaced by the following: 

"Article 14 

Flexibility between pillars 

"1.  Before ...21, Member States may decide to make available as additional support 
for  measures  under  rural  development  programming  financed  under  the 
EAFRD  as  specified  under  Regulation  (EU)  No  […]  [RD],  up  to  [15]  %  of 
their  annual  national  ceilings  for  calendar  years  2014  to  2019  as  set  out  in 
Annex VIII to Regulation (EC) No 73/2009 for year 2014 and in Annex II to 
this  Regulation  for  years  2015-2019.  As  a  result,  the  corresponding  amount 
shall no longer be available for granting direct payments. 

2. 

The  decision  referred  to  in  the  first  subparagraph  shall  be  notified  to  the 
Commission by the date referred to in that subparagraph. 

The  percentage  notified  in  accordance  with  the  second  subparagraph  shall  be 
the same for the years referred to in the first subparagraph. 

[Member  States]  not  using  the  possibility  under  paragraph  1,  [may  decide, 
before  ...22,  to  make  available  as  direct  payments  under  Regulation  (EC)  No 
73/2009  and  this  Regulation  up  to  [15]  %  of  the  amount  allocated  to  support 
for  measures  under  rural  development  programming  financed  under  the 
EAFRD in the period 2015-2020 as specified under Regulation (EU) No […] 
[RD]].  Bulgaria,  Estonia,  Finland,  Latvia,  Lithuania,  Poland,  Portugal, 
Romania,  Slovakia,  Spain,  Sweden  and  the  United-Kingdom  may  decide  to 
make  available  as  direct  payments  an  [additional]  [10%]  of  the  amount 
allocated under rural development. As a result, the corresponding amount shall 
no  longer  be  available  for  support  measures  under  rural  development 
programming. 

21 
22 

OJ please insert the date 7 days from the date of entry into force of this Regulation.  
OJ please insert the date 7 days from the date of entry into force of this Regulation.  

EN 

13 

   EN 

 
 
                                                 
The  decision  referred  to  in  the  first  subparagraph  shall  be  notified  to  the 
Commission by the date referred to in that subparagraph. 

The  percentage  notified  in  accordance  with  the  second  subparagraph  shall  be 
the same for the years referred to in the first subparagraph of paragraph 1." 

(3) 

In Article 57(2), the following subparagraph is inserted after the first subparagraph:  

"However, it shall continue to apply in respect of aid applications relating to claim 
years starting before 1 January 2015." 

(4) 

In Article 59, the second and the third paragraphs are replaced by the following: 

"It shall apply from 1 January 2015. 

However,  Articles  20(5),  22(6),  35(1),  37(1)  and  39  shall  apply  from  the  date  of 
entry into force of this Regulation." 

Article 7 

Amendment to Regulation (EU) No […][HZ] 

Article 115 of Regulation (EU) No […][HZ] is replaced by the following: 

"Article 115 

Entry into force and application 

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

It shall apply from 1 January 2014, except as follows: 

(a) 

(b) 

Articles 7, 8 and 9 shall apply from 16 October 2013; 

Articles 18, 42, 43 and 45 shall apply from 16 October 2013 as regards expenditure 
incurred from 16 October 2013; 

(c) 

Title III, Chapter II of Title V and Title VI shall apply from 1 January 2015. " 

Article 8 

Amendment to Regulation (EU) No […][sCMO] 

In Article 163(1) of Regulation (EU) No […][sCMO], the following point is added:  

"(h) 

Article  111  [Article  155  of  Regulation  (EU)  No  COM(2010)799],  until  31  March 
2015." 

Article 9 

Amendment to Regulation (EU) No […] [RD] 

In  Article  64  of  Regulation  (EU)  No  […]  [RD],  paragraphs  4  and  5  are  replaced  by  the 
following: 

EN 

14 

   EN 

 
 
 
 
"4. 

5. 

The  Commission  shall,  by  means  of  an  implementing  act,  make  an  annual 
breakdown  by  Member  State  of  the  amounts  referred  to  in  paragraph  1,  after 
deduction  of  the  amount  referred  to  in  paragraph  2  and  taking  into  account  the 
transfers  of  funds  referred  to  in  Article  136a(2)  of  Council  Regulation  (EC)  No 
73/2009*.  

In making the annual breakdown the Commission shall take into account: 

(a) 

objective criteria linked to the objectives referred to in Article 4; and 

(b)  past performance. 

In addition to the amounts referred to in paragraph 4, the implementing act referred 
to  in  that  paragraph  shall  also  include  the  funds  transferred  to  the  EAFRD  in 
application  of  Article  136a(1)  of  Regulation  (EC)  No  73/2009  and  Article  7(2)  of 
Regulation (EU) No [DP] and the funds transferred to the EAFRD in application of 
Articles  10b  and  136  of  Regulation  (EC)  No  73/2009  in  respect  of  calendar  year 
2013. 

_______ 

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

CHAPTER 3 

Final provisions 

Article 10 

Entry into force and application 

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

It shall apply from 1 January 2014. 

However: 

– 

– 

– 

points (9) and (10) of Article 5 shall apply from the date of entry into force of this 
Regulation; 

point (11) of Article 5 of this Regulation as regards Annexes II and III to Regulation 
(EC) No 73/2009 shall apply from 22 December 2013; and 

Article  6  of  this  Regulation  shall  apply  from  the  date  of  entry  into  force  of 
Regulation (EU) No […] [DP]. 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

15 

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ANNEX I 

Correspondence of Articles in animal and area related measures under the 2007-2013 
and the 2014-2020 programming periods  

Regulation (EC) No 1698/2005 

Regulation (EU) No […] [RD] 

Article  36(a)(i)  and  (ii)  Natural  handicap 
payments  to  farmers  in  mountain  areas  and 
Payments  to  farmers  in  areas  with  handicaps 
other than mountain areas 

Article 32 Payments to areas facing natural or 
other specific constraints 

Article  36(a)(iii)  Natura  2000  payments  and 
payments linked to Directive 2000/60/EC 

Article 31 Natura 2000 and Water framework 
directive payments 

Article 36(a)(iv) Agri-environment payments  Article 29 Agri-environment-climate 

Article 36(v) Animal welfare payments 

Article 34 Animal welfare 

Article 36(b)(i) and (iii) First afforestation of 
agricultural  land  and  First  afforestation  of 
non-agricultural land  

Article 22(1)(a) Afforestation and creation of 
woodland 

Article 36(b)(iv) Natura 2000 payments 

Article 31 Natura 2000 and Water framework 
directive payments 

Article 
payments 

36(b)(v) 

Forest-environment 

Article  35  Forest-environmental  and  climate 
services and forest conservation 

EN 

16 

   EN 

 
 
Annexes II, III and VIII to Regulation (EC) No 73/2009 are amended as follows: 

(1) 

In Annex II, Point A. 'Environment' is replaced by the following: 

ANNEX II 

"1 

2 

3 

4 

Council Directive 79/409/EEC of 2 April 1979 on the 
conservation of wild birds (OJ L 103, 25.4.1979, p. 1) 

Council Directive 86/278/EEC of 12 June 1986 on the 
protection of the environment, and in particular of the 
soil, when sewage sludge is used in agriculture (OJ L 
181, 4.7.1986, p. 6) 
Council Directive 91/676/EEC of 12 December 1991 
concerning the protection of waters against pollution 
caused by nitrates from agricultural sources (OJ L 375, 
31.12.1991, p. 1) 
Council Directive 92/43/EEC of 21 May 1992 on the 
conservation of natural habitats and of wild flora and 
fauna (OJ L 206, 22.7.1992, p. 7) 

Article 3(1), Article 3(2)(b), Article 
4(1), (2) and (4) and Article 5(a), 
(b) and (d) 
Article 3 

Articles 4 and 5 

Article 6 and Article 13(1)(a)" 

(2) 

Annex III is amended as follows: 

(a)  The  entry  for  "Protection  and  management  of  water"  is  replaced  by  the 

following: 

"Protection  and  management  of 
water: 

Protect  water  against  pollution  and 
run-off, and manage the use of water 

- Establishment of buffer strips along water 
courses (1) 
- Where use of water for irrigation is subject 
to authorisation, compliance with 
authorisation procedures 
The measures laid down in the Appendix 

Note: The GAEC buffer strips must respect, both within and outside vulnerable zones designated pursuant 

(1) 
to Article 3(2) of Directive 91/676/EEC, at least the requirements relating to the conditions for land application of 
fertiliser near water courses, referred to in point A.4 of Annex II to Directive 91/676/EEC to be applied in accordance 
with the action programmes of Member States established under Article 5(4) of Directive 91/676/EEC." 

(b)  The following Appendix is added: 

"APPENDIX 

A.  Measures relating to list I 

Member States:  

– 

– 

– 

shall prohibit all direct discharge of substances in list I,  

shall  subject  to  prior  investigation  any  disposal  or  tipping  for  the 
purpose  of  disposal  of  these  substances  which  might  lead  to 
indirect discharge. In the light of that investigation, Member States 
shall  prohibit  such  activity  or  shall  grant  authorisation  provided 
that  all  the  technical  precautions  necessary  to  prevent  such 
discharge are observed,  

shall take all appropriate measures they deem necessary to prevent 
any indirect discharge of substances in list I due to activities on or 
in the ground other than those mentioned in the second indent.  

However,  should  prior  investigation  reveal  that  the  groundwater  into 
which  the  discharge  of  substances  in  list  I  is  envisaged  is  permanently 
unsuitable for other uses, especially domestic or agricultural, the Member 

EN 

17 

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States may authorise the discharge of these substances provided that their 
presence does not impede exploitation of ground resources.  

These  authorisations  may  be  granted  only  if  all  technical  precautions 
have  been  taken  to  ensure  that  these  substances  cannot  reach  other 
aquatic systems or harm other ecosystems.  

Member States may, after prior investigation, authorise discharges due to 
re-injection into the same aquifer of water used for geothermal purposes, 
water  pumped  out  of  mines  and  quarries  or  water  pumped  out  for  civil 
engineering works.  

B.  Measures relating to list II 

Member States shall make subject to prior investigation:  

– 

– 

all  direct  discharge  of  substances  in  list  II,  so  as  to  limit  such 
discharges,  

the  disposal  or  tipping  for  the  purpose  of  disposal  of  these 
substances which might lead to indirect discharge.  

In  the  light  of  that  investigation,  Member  States  may  grant  an 
authorisation,  provided  that  all  the  technical  precautions  for  preventing 
groundwater pollution by these substances are observed.  

Furthermore,  Member  States  shall  take  the  appropriate  measures  they 
deem necessary to limit all indirect discharge of substances in list II, due 
to  activities  on  or  in  the  ground  other  than  those  mentioned  in  the  first 
paragraph.  

LIST  I  OF  FAMILIES  AND  GROUPS  OF  SUBSTANCES  REFERRED  TO 
IN SECTION A 

List  I  contains  the  individual  substances  which  belong  to  the  families  and 
groups of substances enumerated below, with the exception of those which are 
considered  inappropriate  to  list  I  on  the  basis  of  a  low  risk  of  toxicity, 
persistance and bioaccumulation.  

substances  which  with 

Such 
bioaccumulation are appropriate to list II are to be classed in list II.  

regard 

toxicity,  persistance  and 

to 

1.  Organohalogen  compounds  and  substances  which  may  form  such 

compounds in the aquatic environment  

2.  Organophosphorus compounds  

3.  Organotin compounds  

4. 

Substances  which  possess  carcinogenic  mutagenic  or 
properties in or via the aquatic environment (*)  

teratogenic 

5.  Mercury and its compounds  

6. 

Cadmium and its compounds  

7.  Mineral oils and hydrocarbons  

8. 

Cyanides.  

EN 

18 

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LIST II OF FAMILIES AND GROUPS OF SUBSTANCES REFERRED TO 
IN SECTION B 

List  II  contains  the  individual  substances  and  the  categories  of  substances 
belonging  to  the  families  and  groups  of  substances  listed  below  which  could 
have a harmful effect on groundwater. 

1. 

The following metalloids and metals and their compounds:  

1. Zinc  
2. Copper  
3. Nickel  
4. Chrome  
5. Lead  
6. Selenium  
7. Arsenic  
8. Antimony  
9. Molybdenum  
10. Titanium  
11. Tin  
12. Barium  
13. Beryllium  
14. Boron  
15. Uranium  
16. Vanadium  
17. Cobalt  
18. Thallium  
19. Tellurium  
20. Silver.  

2. 

3. 

4. 

5. 

6. 

Biocides and their derivatives not appearing in list I.  

Substances which have a deleterious effect on the taste  and/or odour of 
groundwater,  and  compounds  liable  to  cause  the  formation  of  such 
substances in such water and to render it unfit for human consumption.  

Toxic or persistent organic compounds of silicon, and substances which 
may  cause  the  formation  of  such  compounds  in  water,  excluding  those 
which  are  biologically  harmless  or  are  rapidly  converted  in  water  into 
harmless substances.  

Inorganic compounds of phosphorus and elemental phosphorus.  

Fluorides.  

7.  Ammonia and nitrites 

(*)  Where  certain  substances  in  list  II  are  carcinogenic,  mutagenic  or 
list."

in  category  4  of 

teratogenic, 

they  are 

included 

this 

EN 

19 

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(3) 

In Annex VIII, the column for the year 2014 is replaced by the following: 

"Table 1 
(EUR 1000) 

Member State 

2014 

Belgium  

Denmark  

Germany  

Greece  

Spain  

France  

Ireland  

Italy  

Luxembourg 

Netherlands  

Austria  

Portugal  

Finland  

Sweden  

[544 047] 

[926 075] 

[5 178 178] 

[2 063 187] 

[4 833 647] 

[7 586 341] 

[1 216 547] 

[3 953 394] 

[33 661] 

[793 319] 

[693 716] 

[557 667] 

[523 247] 

[696 487] 

United Kingdom  

[3 548 576] 

Table 2(*) 
(EUR 1000)  

Bulgaria 

Czech Republic 

Estonia 

Cyprus 

Latvia 

Lithuania 

Hungary 

Malta 

Poland 

Romania 

Slovenia 

[642 103] 

[875 305] 

[110 018] 

[51 344] 

[168 886] 

[393 226] 

[1 272 786] 

[5 239] 

[2 970 020] 

[1 428 531] 

[138 980] 

Slovakia 
[377 419] 
(*) Ceilings calculated taking into account 
of the schedule of increments provided for 
in Article 121." 

EN 

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FINANCIAL STATEMENT 

FS/13/ 344471Rev1 

6.15.2013 

DATE: 25.03.2013 

1. 

BUDGET HEADING: 

05 03 Direct aids 
05 04 Rural Development 

2. 

TITLE: 

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  
laying down certain transitional provisions on support for rural development by the European 
Agricultural Fund for Rural Development (EAFRD) and amending Regulation (EU) No […] [RD] as 
regards resources and their distribution in respect of the year 2014 and amending Council Regulation 
(EC) No 73/2009 and Regulations (EU) No […][DP], (EU) No […][HZ] and (EU) No […][sCMO] as 
regards their application in the year 2014 

3. 

LEGAL BASIS: 

Article 43(2) of the Treaty on the Functioning of the European Union 

4. 

AIMS: 

This regulation lays down transitional rules for the application of direct payments in respect of the year 
2014 and on support for rural development.  

5. 

FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2013 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
2014 
(EUR million) 

5.0 

CHARGED TO THE EU BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EU  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

2015 
EUR -830 million

2016 

2017 

2018 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: See Comments 
6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

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

n.a. 

n.a. 

NO 

NO 

This  financial  statement  is  a  complement  to  the  financial  statement  of  the  CAP  reform  proposals 
(COM(2012)551, COM(2012)552, COM(2012)553) and should be read together with it.  
This  draft  regulation  aims  to  prolong  some  elements  of  the  existing  schemes,  incorporating  the  effect  of  the 

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Multiannual Financial Framework (MFF) agreement on external convergence of the direct payments, flexibility 
between the CAP pillars and the co-financing rate for rural development. There is no financial consequence as 
such since this draft Regulation only implements the Commission proposals on the MFF and the CAP reform 
taking into account the European Council conclusions of 8 February 2013. The new elements arising from the 
European Council conclusions of 8 February 2013 are put within square brackets pending the final agreement 
on the MFF.  

As regards direct payments, external convergence and flexibility between pillars are applicable as of financial 
year 2015 (corresponding to claim year 2014 for direct payments). Compared to the Commission proposal and 
its financial statement, the European Council conclusions of 8 February 2013 correspond to a reduction of EUR 
830  million  (in  current  prices)  for  direct  payments  in  claim  year  2014  (EUR  5  million  for  the  crop  specific 
payment for cotton and EUR 825 million for Annex VIII).  

Concerning the flexibility between pillars, it is not possible to assess the financial impact yet as Member States 
will have to notify their transfers to the Commission later this year. In any case, the flexibility will be budgetary 
neutral as exactly the same amounts reduced from one Fund (EAGF or EAFRD) will be made available to the 
other Fund (EAGF or EAFRD).  

As  regards  rural  development,  this  draft  Regulation  aims  to  ensure  the  continuity  of  a  number  of  measures 
involving  multiannual  commitments.  Also  for  those  measures,  the  draft  Regulation  intends  that,  for 
commitments undertaken during 2007-2013, the corresponding expenditure can be eligible after 2015 (if there 
are payments to be made) under the new programming period, or before when the current financial allocation 
has  been  exhausted.  Those  provisions  have  no  financial  impact  as  the  rural  development  allocation  remains 
unchanged. However, the distribution over time of the payments might be slightly different than otherwise but it 
cannot be quantified at this stage.  

EN 

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   EN