Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products, (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union and (EU) No 229/2013 laying down specific measures for agriculture in favour of the smaller Aegean islands
Date: 2018-06-01
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: agricultural product, agricultural production, aid to agriculture, common organisation of markets, consumer information, designation of origin, labelling, peripheral region, product designation, single payment scheme

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   EUROPEAN COMMISSION  Brussels, 1.6.2018 COM(2018) 394 final/2 2018/0218 (COD)  This document corrects document COM(2018) 394 final of 1.06.2018.  Concerns the English, French and German versions.  Adding of cross-references on the cover page.  The text shall read as follows: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products, (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union and (EU) No 229/2013 laying down specific measures for agriculture in favour of the smaller Aegean islands {SWD(2018) 301 final} - {SEC(2018) 305 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  Commission  proposal  for  the  Multiannual  Financial  Framework  (MFF)  for  2021-2027 
(the  MFF  proposal)1  sets  the  budgetary  framework  and  main  orientations  for  the  Common 
Agricultural Policy (CAP). On this basis, the Commission presents a set of regulations laying 
down the legislative framework for the CAP in the period 2021-2027, together with an impact 
assessment  of  alternative  scenarios  for  the  evolution  of  the  policy.  These  proposals  provide 
for a date of application as of 1 January 2021 and are presented for a Union of 27 Member 
States, in line with the notification by the United Kingdom of its intention to withdraw from 
the  European  Union  and  Euratom  based  on  Article  50  of  the  Treaty  on  European  Union 
received by European Council on 29 March 2017. 

The latest reform of the CAP was decided in 2013 and implemented in 2015. Since then, the 
context in which that reform was forged has shifted significantly. In particular:  

Agricultural  prices  have  fallen  substantially  –  depressed  by  macroeconomic  factors, 
geopolitical tensions and other forces. 

The emphasis of trade negotiations has moved more visibly from multilateral to bilateral deals 
and the EU has become more open to world markets. 

The  EU  has  signed  up  to  new  international  commitments  –  e.g.  concerning  climate  change 
mitigation  (through  COP  21)  and  broad  aspects  of  international  development  (through  the 
UN's  Sustainable  Development  Goals  –  SDGs),  as  well  as  efforts  to  better  respond  to  other 
geopolitical developments including migration. 

These shifts have prompted a public debate about whether the 2013 reform goes far enough to 
help the CAP adequately meet broad ongoing challenges related to the economic health of the 
farm sector, care for the environment, action over climate change, and a strong and economic 
and social fabric for the EU's rural areas  – especially in view of emerging opportunities for 
action in the areas of trade, the bioeconomy, renewable energy, the circular economy and the 
digital economy. 

The CAP must be modernised to meet these challenges, simplified to do so with a minimum 
of administrative burden, and made even more coherent with other EU policies to maximise 
its contribution to the ten Commission Priorities and the Sustainable Development Objectives. 
Indeed, as the Commission recalled in its recent Communication on the MFF, a modernised 
Common  Agricultural  Policy  will  need  to  support  the  transition  towards  a  fully  sustainable 
agricultural sector and the development of vibrant rural areas, providing secure, safe and high-
quality food for over 500 million consumers. Europe needs a smart, resilient, sustainable and 
competitive  agricultural  sector  in  order  to  ensure  the  production  of  safe,  high-quality, 
affordable, nutritious and diverse food for its citizens and a strong socio-economic fabric in 
rural  areas.  A  modernised  Common  Agricultural  Policy  must  enhance  its  European  added 
value  by  reflecting  a  higher  level  of  environmental  and  climate  ambition  and  addressing 
citizens' expectations for their health, the environment and the climate. 

As  foreseen  in  its  Programme  of  Work  for  2017,  the  Commission  consulted  widely  on  the 
simplification  and  modernisation  of  the  CAP  to  maximise  its  contribution  to  the 
Commission's ten priorities and to the Sustainable Development Goals (SDGs). This focused 

1 

[COM(2018) 322 final – MFF Regulation]. 

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on specific policy priorities for the future without prejudice to the financial allocations for the 
CAP  in  the  next  MFF.  The  process  included  a  large  consultation,  as  well  as  analysis  of 
available  evidence  on  the  performance  of  the  CAP,  including  the  relevant  REFIT  Platform 
opinions. 

The  outcome  was  presented  in  the  Communication  adopted  on  29  November  2017  and 
entitled "the Future of Food and Farming".  The Communication enables a structured dialogue 
on  the  future  CAP  in  EU  Institutions  as  well  as  with  stakeholders.  This  policy  document 
outlined challenges, objectives and possible avenues for a "future-proof" CAP that needs to be 
simpler, smarter and modern, and lead the transition to a more sustainable agriculture. 

In  particular,  the  Commission  identified  higher  environmental  and  climate  action  ambition, 
the better targeting of support and the stronger reliance on the virtuous Research-Innovation-
Advice nexus as top priorities of the post-2020 CAP. It also proposed as a way to improve the 
performance  of  the  CAP  a  new  delivery  model  (NDM)  to  shift  the  policy  focus  from 
compliance to performance, and rebalances responsibilities between the EU and the Member 
State  level  with  more  subsidiarity.  The  new  model  aims  at  better  achieving  EU  objectives 
based on strategic planning, broad policy interventions and common performance indicators, 
thus improving policy coherence across the future CAP and with other EU objectives.  

• 

Consistency with existing policy provisions in the policy area 

Article 39 TFEU sets out the objectives of the CAP:  

  to  increase  agricultural  productivity  by  promoting  technical  progress  and  by 
ensuring  the  rational  development  of  agricultural  production  and  the  optimum 
utilisation of the factors of production, in particular labour; 

  thus  to  ensure  a  fair  standard  of  living  for  the  agricultural  community,  in 
particular by increasing the individual earnings of persons engaged in agriculture; 

  to stabilise markets; 

  to assure the availability of supplies; 

  to ensure that supplies reach consumers at reasonable prices. 

This proposal is fully consistent with the CAP Treaty objectives. It modernises and simplifies 
the way the Treaty provisions are implemented.  

Consistency with other Union policies 

Agriculture  and  forestry  cover  84%  of  the  EU  territory.  The  sectors  both  depend  on  and 
influence the environment. Therefore, a number of the proposed CAP specific objectives will 
trigger environmental and climate action in line with the respective EU policies.  

It is well known that consumption patterns have an influence on public health. Via its link to 
food and sometimes  also the way food is  produced agricultural policies are linked to  health 
policies.  The  proposals  reinforce  the  links  to  health  policy,  in  particular  as  regards  healthy 
diets and the decrease of the use of anti-microbials. 

The EU is a major importer of commodities and an exporter of valuable agriculture and food 
products and has therefore an impact on food systems outside the EU. The proposal, in line 
with  Art  208  of  TFEU,  takes  into  account  the  EU  development  cooperation’s  objectives  of 
poverty  eradication  and  sustainable  development  in  developing  countries,  in  particular  by 
ensuring that EU support to farmers has no or minimal trade effects. 

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Finally,  like  in  other  sectors,  agriculture  and  rural  areas  can  make  better  use  of  new 
technology and knowledge, in particular of digital technologies. The proposals reinforce the 
links to research policy by putting the organisation of knowledge exchange prominently in the 
policy delivery model. Similarly, the emphasis placed on digitisation allows linking up to the 
EU Digital Agenda. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article  43(2)  TFEU  as  regards  amendments  to  Regulation  (EU)  No  1308/2013  and  Article 
114  TFEU  and  first  paragraph  of  Article  118  TFEU  as  regards  amendments  to  Regulations 
(EU) No 1151/2012, (EU) No 251/2014 and Articles 43(2) and 349 as regards amendments to 
Regulation (EU) No 228/2013 and Article 43(2) as regards Regulation (EU) 229/2013.  

• 

Subsidiarity (for non-exclusive competence)  

The  Treaty  on  the  Functioning  of  the  European  Union  provides  that  the  competence  for 
agriculture is shared between the Union and the Member States, while establishing a common 
agricultural policy with common objectives and a common implementation. The current CAP 
delivery  system  relies  on  detailed  requirements  at  EU  level,  and  features  tight  controls, 
penalties and audit arrangements. These rules are often very prescriptive, down to farm level. 
In  the  Union's  highly  diversified  farming  and  climatic  environment,  however,  neither  top-
down  nor  one-size-fits-all  approaches  are  suitable  to  delivering  the  desired  results  and  EU 
added value.  

In the delivery model in this proposal, the Union sets the basic policy parameters (objectives 
of  the  CAP,  broad  types  of  intervention,  basic  requirements),  while  Member  States  bear 
greater  responsibility  and  are  more  accountable  as  to  how  they  meet  the  objectives  and 
achieve agreed targets.  

Greater  subsidiarity  will  make  it  possible  to  better  take  into  account  local  conditions  and 
needs, against such objectives and targets. Member States will be in charge of tailoring CAP 
interventions  to  maximise  their  contribution  to  EU  objectives.  While  maintaining  current 
governance structures – that must continue to ensure an effective monitoring and enforcement 
of the attainment of all policy objectives - the Member States will also have a greater say in 
designing  the  compliance  and  control  framework  applicable  to  beneficiaries  (including 
controls and penalties).  

• 

Proportionality 

The  economic,  environmental  and  social  challenges  facing  the  EU's  farm  sector  and  rural 
areas  require  a  substantial  response  which  does  justice  to  the  EU  dimension  of  those 
challenges.  The  greater  power  of  choice  to  be  offered  to  MS  in  selecting  and  adapting 
available  policy  tools  within  the  CAP  to  meet  objectives,  in  a  more  results-based  model, 
should make it even less likely that the CAP oversteps a proportionate level of action. 

• 

Choice of the instrument 

Since the original acts are all European Parliament and Council regulations the amendments 
must be introduced by European Parliament and Council regulation.  

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3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The CAP is deeply rooted in the construction and in the development of the European Union 
(EU).  Established  in  the  early  sixties  around  goals  enshrined  in  the  Treaty,  it  has  since 
undergone several waves of reforms to improve the competitiveness of the agricultural sector, 
to foster rural development, to address new challenges and to better reply to societal demands. 
The latest major reform was adopted in 2013. In the 2013 reform, the general objectives of 
the CAP were streamlined around three blocks: 

i. 

ii. 

iii. 

Viable food production 

Sustainable management of natural resources and climate action 

Balanced territorial development 

To  assess  progress  towards  achieving  the  above  objectives  and  identify  future  challenges,  a 
wide  consultation  process  encouraged  a  structured  debate  with  all  stakeholders,  including 
non-agricultural actors. Furthermore, evidence on the performance of the  CAP was gathered 
from  a  wealth  of  information  available  on  the  CAP  (briefly  summarised  in  Box  1  below), 
which  served  as  background  for  assessing  the  achievements  and  shortcomings  of  the  CAP 
over  the  years,  but  especially  with  respect  to  its  most  recent  reform.  This  concerns  in 
particular: 

  evidence  collected  through  the  Common  Monitoring  and  Evaluation  and 
Framework (CMEF) which serves for measuring the performance of the CAP2; 

  A  series  of  evaluation  studies  scheduled  over  the  current  Multiannual  Financial 
Framework  (2014-2020)  to  assess  current  CAP  objectives,  with  first  findings 
available in 2017/183. 

Results concerning progress towards targets and corresponding financial envelopes 
available in the Annual Implementation Reports (AIR) for Rural Development. 

  Additional  background  documents,  data,  facts,  figures  relevant  for  the  impact 

assessment have been published on the internet page of DG AGRI4. 

• 

Stakeholder consultations 

An  open  public  consultation  was  held  with  more  than  322.000  submissions,  structured 
dialogue  with  stakeholders,  five  expert  workshops,  opinions  of  the  REFIT  Platform, 
contributions  from  the  European  Economic  and  Social  Committee,  the  Committee  of  the 

2 

3 

Established    in  art.  110  of  European  Parliament  and  Council  Regulation  (EU)  No 1306/2013  of  17 
December 2013 on the financing, management and monitoring of the common agricultural policy and 
repealing Council Regulations and the Commission Implementing Regulation (EU) No 834/2014 of 22 
July 2014 laying down rules for the application of the common monitoring and evaluation framework of 
the common agricultural policy. 
European  Commission  (2017)  Evaluation  and  studies  plan  2017-2021,  Direction  General  for 
Agriculture and Rural Development. 
See: 

4 
https://ec.europa.eu/agriculture/statistics/facts-and-figures_en 
https://ec.europa.eu/agriculture/sites/agriculture/files/consultations/cap-

modernising/eco_background_final_en.pdf 

https://ec.europa.eu/agriculture/sites/agriculture/files/consultations/cap-

modernising/env_background_final_en.pdf 

https://ec.europa.eu/agriculture/sites/agriculture/files/consultations/cap-

modernising/soc_background_final_en.pdf 

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Regions, and from National Parliaments. The process also took into account recommendations 
of  the  Agricultural  Market  Task  Force  (AMTF)5  and  the  Cork  Conference  on  Rural 
Development (2016).6  

• 

Collection and use of expertise 

In order to gather evidence/knowledge from experts on CAP-related issues a set of specialised 
workshops  were  organised  between  March  2017  and  February  2018.  These  workshops 
allowed to exchange views between experts and Commission officials, and to advance in the 
formulation  of  the  key  conclusions/  issues  to  take  into  account  in  the  modernisation  and 
simplification process.  

The five issues to be tackled by workshops were selected in order to cover the most relevant 
areas where gaps on knowledge and disagreements on policy approaches had been detected. 
The workshops were designed according to a similar methodology based on the following:  

1. 

2. 

3. 

collection  of  the  latest  evidence  available  at  the  level  of  experts,  academics, 
practitioners and international institutions;  

focus on practical experiences on the ground;  

assessment on the potential of new technologies/approaches to improve future policy 
design in the specific area covered.  

The summaries of the workshops and presentations are available at:  
https://ec.europa.eu/agriculture/events/cap-have-your-say/workshops_en 

Workshop 1: Best practices addressing environmental and climate needs (23/24 March 2017) 

This  two-day  workshop  involved  a wide  range  of  experts  on  the environmental  and  climate 
challenges. It examined: 

  tools available for assessing the environmental needs; 

  methods  to  improve  the  uptake  of  the  measures  (with  a  focus  on  the  role  of 

behavioural approaches).  

Workshop 2: Risk management (18/19 May 2017) 

This  two-day  workshop  tried  to  advance  in  the  collection  of  evidence  in  the  debate  on  the 
tools to support the farming community to better face the production, price and income risks. 
It examined: 

  the challenges of the EU market safety net and the recent developments in the risk 

management system in force in the US; 

  the  case  of  future  markets  in  the  EU,  the  EU  agricultural  insurance  and 
reinsurance  sector,  the  case  of  a  public-private  partnership  and  a  crop  insurance 
scheme; 

  behavioural aspects of risk management.  

5 

6 

Report of the Agricultural Markets Task Force (the AMTF report) (2016) Improving market outcomes 
enhancing the position of farmers in the supply chain. 
European Commission (2016) Cork 2.0: European Conference on Rural Development, website. 

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Workshop 3: Food and related issues (31 May 2017)  

The Workshop on food and related issues examined the CAP's alignment to health policy and 
its capacity to facilitate farmers' adaptation to changes in consumption patterns. In particular 
Anti-Microbial Resistance warrants increased attention.  

Workshop 4: Socio-economic issues (9 June 2017) 

The workshop on socio-economic issues focused on the analysis of the dynamics of growth 
and  jobs  in  EU  agri-food  sector.  It  examined  the  links  between  global  agriculture  and  food 
value chains in the EU from both a conceptual perspective and a practical perspective, based 
on case-studies.  

Workshop 5: Measuring the CAP environmental and climate performance (26 February 2018) 

The workshop examined what basic policy objectives can be set at EU level, how they can be 
implemented  at  Member  State  level,  and  how  they  can  be  monitored,  controlled  and 
evaluated.  

• 

Impact assessment 

The  impact  assessment  supporting  the  legislative  proposals,  as  well  as  the  opinions  of  the 
Regulatory Scrutiny Board (RSB), are available on the following site: 
List of impact assessments and the accompanying opinions of the Regulatory Scrutiny Board 

The  RSB  initially  issued  a  negative  opinion.  While  appreciating  the  ambition  to  modernise 
and simplify the CAP and the in-depth analysis of different scenarios that usefully highlight 
the trade-offs between the policy objectives, the Board considered that the report should better 
explain  the  rationale,  feasibility  and  functioning  of  the  proposed  new  delivery  model.  The 
required  complements  were  added  in  the  impact  assessment  report,  including  in  a  special 
Annex on the proposals for the new delivery model. On this basis, the RSB gave a positive 
opinion  with  reservations.  While  acknowledging  improvements  in  the  report,  the  Board 
requested  further  specifications  on  the  precise  safeguards  for  mitigating  the  identified  risks. 
Annex  1  of  the  impact  assessment  report  (Staff  Working  Document)  spells  out  adjustments 
undertaken to meet the requirements of the Board. 

Different policy options are presented and discussed in the impact assessment report. There is 
no preferred option in the impact assessment. Instead various combinations of elements of the 
proposals were tested in the different options to see what optimum mix could be distilled. 

The options essentially test contrasted approaches to achieve the identified objectives: 

1. 

2. 

3. 

varying  levels  of  environmental  and  climate  ambition,  focussing  on  the  potential 
effects of obligatory and voluntary systems of delivery; 

different  ways  to  support  farm  income  and  in  particular  its  distribution  between 
different  farmers,  focussing  on  the  potential  effects  on  small  and  medium-sized 
farms. 

broader  socio-economic  interventions,  in  particular  under  the  rural  development 
policy, as well as cross-cutting approaches for modernisation.  

The first option tests the potential of a voluntary eco-scheme to increase environmental and 
climate  ambition.  It  also  examines  the  potential  role  of  risk  management  tools  with  lower 

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direct  payments  in  supporting  farmers'  income.  Two  sub-options  reflect  different  MS 
environmental ambitions and approaches to direct payments within the new delivery model.  

In another option, direct payments are better targeted and the implementation of conditionality 
is more ambitious in order to improve the joint economic and environmental performance of 
the CAP, as  well as  address  climate challenges. Sub-options  are also developed to illustrate 
possible differences in MS ambition regarding environmental and climate objectives. 

A final option places strong emphasis on environmental care and employment – and shifts the 
focus on small and medium size farmers as a way to keep jobs in rural areas. MS are obliged 
to  allocate  30%  of  pillar  I  payments  to  provide  top  ups  for  four  schemes  that  would  be 
voluntary for farmers - organic farming, permanent grassland, Areas with Natural Constraints 
(ANC)  and  linear  landscape  elements,  to  further  encourage  climate  action  and  sustainable 
management of natural resources. 

The  impact  assessment  points  out  the  difficult  trade-offs  that  are  inherent  to  a  policy 
addressing so many diverse objectives, when basic parameters are significantly changed. 

A  key  basic  parameter  is  the  level  of  CAP  support.  The  cut  of  5%  proposed  by  the 
Commission  in  its  May  2018  Communication  for  the  2021-2027  MFF  is  within  the  range 
considered in the impact assessment.  

With respect to farm income, both the level and the distribution of support matter. Securing an 
adequate level of support and thus farm income remains a key element for the future, in order 
to ensure food security, environmental and climate ambition, as well as rural vitality.  Better 
targeting of support to small and medium sized farms and areas with natural constraints can 
help  keeping  more  jobs  on  farms  and  farming  activity  on  the  whole  territory,  hence 
strengthening the socio-economic fabric of rural areas. Capping and convergence can improve 
the  distribution  of  direct  payments.  It  is  clear  that  any  option  that  significantly  redistributes 
direct payments towards farms and regions of lower productivity will, in the short-term, lead 
to  a  reduction  of  EU  competitiveness,  while  it  enhances  the  protection  of  the  environment. 
Less clear, however, is the appropriate combination of measures that could mitigate negative 
income effects while at the same time better addressing challenges that are also pertinent for 
agriculture  -  such  as  environment  and  climate,  or  societal  expectations.  This  requires 
incentivising adjustments that improve both the socio-economic as well as the environmental 
performance of the sector. 

Contributions from the stakeholder consultation and analyses demonstrate that this is possible, 
provided that the necessary accompanying measures addressing a higher environmental and 
climate action ambition enable the adoption of best practices (in both conventional and other 
forms of farming) that include knowledge, innovation and the latest pertinent technology. 

On the basis of the assumptions and choices made in the analysis, there are potential trade-
offs in the achievement of economic, environmental and social objectives of the CAP, as well 
as  with  respect  to  its  desired  modernisation  and  simplification.  In  summary,  redistribution 
could  lead  to  manageable  income  impacts,  and  support  the  desired  increased  ambition  of 
environmental  and  climate  action  and  other  CAP  synergies.  This,  however,  would  require 
that the sector and the policy grasp the opportunities offered by innovation and technologies 
already allowing modernisation and simplification. 

Other  assumptions  and  choices  would  certainly  alter  detailed  results,  but  not  the  main 
underlying message – that the preferred option for the future CAP should combine the most 

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performing  elements  of  the  various  options,  but  avoid  their  weaknesses  by  introducing  the 
necessary  safeguards  to  ensure  an  EU  level-playing  field.  This  implies  the  need  for  clear 
criteria for the level and the distribution of income support (e.g. capping and/or degresivity), 
the climate and environmental ambition, conditionality, the incentives for modernisation and 
the appropriate degree of subsidiarity/simplification. 

• 

Regulatory fitness and simplification 

The complexity of the current policy implementation to a large extent is linked to the stress on 
compliance with detailed rules, laid down at EU level. The proposed new delivery model will 
remove  the  layer  of  EU  level  eligibility  criteria  for  support  which  will  allow  the  Member 
States  to  define  eligibility  conditions  that  are  most  suited  to  their  particular  circumstances. 
This is expected to produce a substantial simplification. 

Historically the CAP developed in successive reforms into different instruments. Sometimes 
the coordination of these instruments has proved to be difficult. Under the current proposal all 
the different support elements of the CAP are brought together into one single and coherent 
framework which will reduce the administrative burden of the CAP implementation.  

• 

Fundamental rights 

The  proposal  respects  the  fundamental  rights  and  observes  the  principles  recognised  in 
particular by the Charter of Fundamental Rights of the European Union.  

4. 

BUDGETARY IMPLICATIONS 

The  Commission  proposal  on 
the  multiannual  financial  framework  for  2021-2027 
(COM(2018) 322 final) provides that a significant part of the EU budget should continue to be 
dedicated to agriculture, which is a common policy of strategic importance. Thus, in current 
prices, it is proposed that the CAP should focus on its core activities with EUR 286.2 billion 
allocated to the EAGF and EUR 78.8 billion for the EAFRD.  

These  agricultural  funds  are  complemented  by  additional  funding  from  Horizon  Europe,  as 
the  proposed  envelope  for  this  programme  includes  EUR 10  billion  to  support  research  and 
innovation  in  food,  agriculture,  rural  development  and  the  bioeconomy.  A  new  agricultural 
reserve  will  be  established  in  the  EAGF  to  finance  additional  support  for  the  agricultural 
sector. Unused amounts of the reserve in one year shall be carried over to the following.  

As regards distribution of the direct payments among Member States, it is proposed that all 
Member States with direct payments below 90% of the EU average will see a continuation of 
the process started in the period of 2014-2020 and will close 50% of the existing gap to 90%. 
All Member States will contribute to financing this external convergence of direct payments 
levels.  The  Member  States’  allocations  for  direct  payments  in  the  CAP  Strategic  Plan 
regulation are calculated on this basis.  

For rural development, it is proposed to rebalance the financing between the EU and Member 
States’  budgets.  In  line  with  what  is  foreseen  for  the  European  Structural  and  Investment 
Funds,  anincrease  in  national  co-financing  rates  will  allow  keeping  public  support  to 
European  rural  areas  largely  unchanged.  The  distribution  of  EAFRD  support  is  based  on 
objective  criteria  linked  to  the  policy  objectives  and  taking  into  account  the  current 
distribution.  As  is  the  case  today,  less  developed  regions  should  continue  to  benefit  from 
higher co-financing rates, which will also apply to certain measures such as LEADER and the 
payments for management commitments.  

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A certain level of flexibility for transfers between allocations will be offered to the Member 
States. Up to 15% of respective direct payments can be transferred to EAFRD allocation and 
vice versa. A higher percentage can be transferred from direct payments to EAFRD allocation 
for interventions addressing environmental and climate objectives and installation grants for 
young farmers.  

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

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A  shift  towards  a  more  performance-oriented  policy  requires  the  establishment  of  a  solid 
performance  framework  that,  based  on  a  set  of  common  indicators,  will  allow  the 
Commission  to  assess  and  monitor  the  performance  of  the  policy.  The  current  Common 
Monitoring  and  Evaluation  Framework  (CMEF)  and  the  current  monitoring  system  of 
Direct  Payments  and  Rural  Development  would  be  used  as  a  basis  for  monitoring  and 
assessing  policy  performance,  but  they  will  have  to  be  streamlined  and  further  developed 
(including  consistency  between  the  two  pillars).  Further  investment  into  developing 
appropriate indicators and ensuring sufficient data streams would be needed. 

A  new  Performance  Monitoring  and  Evaluation  Framework  (PMEF)  will  cover  all 
instruments of the future CAP:  the CAP Strategic Plans as well as those elements of the CAP 
not  covered  by  the  CAP  Strategic Plans  (some  parts  of  the  Common  Markets  Organisation, 
specific schemes). Performance would be measured in relation to the Specific Objectives of 
the policy by using a set of common indicators. 

The new model will be organised around the following principles: 

  Context indicators remain pertinent, as they reflect relevant aspects of the general 
trends  in  the  economy,  environment  and  society,  and  are  likely  to  have  an 
influence on performance. 

  A  selection  of  a  limited,  but  more  targeted  set  of  indicators  should  be  made 
primarily in a way to choose those that reflect as closely as possible whether the 
supported  intervention  contributes  to  achieving  the  objectives  versus  established 
baseline and using clear definitions. 

  Overall policy performance will be assessed multi-annually on the basis of impact 
indicators. Annual policy performance follow-up will rely on the full list of result 
indicators. 

  Output indicators would annually link expenditure with the performance of policy 
implementation. The latter is an annual exercise, and relies on a list of (primarily 
already available) output indicators. 

  The reliability of relevant  performance indicators can be facilitated by synergies 
between statistical and administrative data, but requires the presence of a system 
of quality controls. 

In  essence,  what  is  being  proposed  is  a  shift  in  responsibilities  and  opportunities  within  a 
common framework, clearly defined and enforced, to deliver on more than one key objective 
at the same time, namely simplification, result-orientation (rather than compliance) and policy 
efficiency and effectiveness. 

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An annual performance review is foreseen as the key element of the ongoing monitoring and 
steering  of  policy  implementation.  In  order  to  make  an  annual  performance  review 
operational, adequate output indicators and result indicators will have to be submitted jointly 
in  an  annual  report  on  the  implementation  of  the  CAP  Strategic  Plan,  the  so-called  Annual 
Performance  Report. MS will report annually on realised  output and expenditure as  well as 
distance to targets set for the whole period, expressed as values of result indicators. 

Evaluations  will  be  carried  out  in  line  with  paragraphs  22  and  23  of  the  Interinstitutional 
Agreement on Better Law-Making of 13 April 20167, where the three institutions confirmed 
that  evaluations  of  existing  legislation  and  policy  should  provide  the  basis  for  impact 
assessments of options for further action. The evaluations will assess the programme's effects 
on the ground based on the programme indicators/targets and a detailed analysis of the degree 
to  which  the  programme  can  be  deemed  relevant,  effective,  efficient,  provides  enough  EU 
added  value  and  is  coherent  with  other  EU  policies.  They  will  include  lessons  learnt  to 
identify any lacks/problems or any potential to further improve the actions or their results and 
to help maximise their exploitation/impact. 

• 

Explanatory documents (for directives) 

Not relevant.  

• 

Detailed explanation of the specific provisions of the proposal 

The proposal concerns three regulations: 

  Regulation of the European Parliament and of the Council on establishing rules on 
support for strategic plans to be drawn up by Member States under the Common 
agricultural  policy  (CAP  Strategic  Plans)  and  financed  by  the  European 
Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for 
Rural  Development  (EAFRD)  and  repealing  Regulation  (EU)  No 1305/2013  of 
the European Parliament and of the Council and Regulation (EU) No 1307/2013 
of  the  European  Parliament  and  of  the  Council  (hereinafter:  CAP  Strategic  Plan 
Regulation) 

   Regulation  of  the  European  Parliament  and  of  the  Council  on  the  financing, 
management  and  monitoring  of  the  common  agricultural  policy  and  repealing 
Regulation (EU) No 1306/2013 (hereinafter: CAP Horizontal Regulation) 

  Regulation of the European Parliament and of the Council amending Regulations 
(EU)  No  1308/2013  establishing  a  common  organisation  of  the  markets  in 
agricultural  products,  (EU)  No  1151/2012  on  quality  schemes  for  agricultural 
products  and  foodstuffs,  (EU)  No  251/2014  on  the  definition,  description, 
presentation, 
indications  of 
aromatised wine products, (EU) No 228/2013 laying down specific measures for 
agriculture  in  the  outermost  regions  of  the  Union  and  (EU)  No  229/2013  laying 
down  specific  measures  for  agriculture  in  favour  of  the  smaller  Aegean  islands. 
(hereinafter: Amending Regulation) 

the  protection  of  geographical 

labelling  and 

These regulations combined adjust the CAP by aligning its objectives to the Juncker priorities 
and the SDGs while at the same  time simplifying the policy implementation. The CAP will 
become  more  adjusted  to  local  circumstance  by  the  removal  of  eligibility  condition  for 

7 

Interinstitutional Agreement between the European Parliament, the Council of the European Union and 
the European Commission on Better Law-Making of 13 April 2016; OJ L 123, 12.5.2016, p. 1–14. 

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support  at  EU  level.  Member  States  will  be  able  to  define  most  eligibility  conditions  at 
national level to make them appropriate for their specific circumstances. At the same time, the 
administrative  burden  linked  to  controls  will  be  reduced  by  limiting  the  direct link between 
EU level eligibility conditions and the final beneficiaries. 

With  the  aim  of  further  improving  the  sustainable  development  of  farming,  food  and  rural 
areas, the CAP general objectives focus on the economic viability, the resilience and income 
of  farms,  on  an  enhanced  environmental  and  climate  performance,  and  on  the  strengthened 
socio-economic  fabric  of  rural  areas.  Moreover,  fostering  knowledge,  innovation  and 
digitalisation in agriculture and rural areas is a cross-cutting objective. 

The new CAP will pursue the following specific objectives: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

Support  viable  farm  income  and  resilience  across  the  EU  territory  to  enhance  food 
security; 

enhance market orientation and increase competitiveness including greater focus on 
research, technology and digitalisation ; 

Improve farmers' position in the value chain; 

Contribute  to  climate  change  mitigation  and  adaptation,  as  well  as  sustainable 
energy; 

Foster sustainable development and efficient management of natural resources such 
as water, soil and air; 

Contribute to the protection of biodiversity, enhance ecosystem services and preserve 
habitats and landscapes;  

Attract young farmers and facilitate business development in rural areas; 

Promote employment, growth, social inclusion and local development in rural areas, 
including bio-economy and sustainable forestry; 

Improve  the  response  of  EU  agriculture  to  societal  demands  on  food  and  health, 
including safe, nutritious and sustainable food, as well as animal welfare.  

To deliver on these objectives Member States shall ensure simplification and performance of 
CAP support. They will design interventions that are appropriate in their circumstances based 
on the types of interventions mentioned in the regulation. The Member States will have to pay 
particular  attention  to  the  environmental  and  climate  specific  objectives,  to  generational 
renewal, and to the modernisation of the policy implementation by focusing on a better use of 
knowledge and advice and new (digital) technologies. 

The  Member  States  will  present  their  proposed  interventions  to  achieve  the  EU  specific 
objectives in a CAP Strategic Plan. The legislation lays down rules on the content of such a 
CAP  Strategic  Plan  and  the  Commission  will  check  the  plans  and  approve  them.  The  CAP 
Strategic  Plans  will  combine  most  CAP  Support  instruments  financed  under  the  EAGF 
(including  the  sectoral  programmes  that  until  now  have  been  established  under  the  CMO 
regulation) and EAFRD. In this way a single coherent intervention strategy per Member State 
will be designed though Member States. In the CAP Strategic Plans Member States will set 
targets  on  what  they  want  to  achieve  in  the  programming  period  using  commonly  defined 
result indicators. 

Once  the  CAP  Strategic  Plans  are  established  Member  States  will  annually  report  on  the 
progress  made  in  the  implementation  using  a  system  of  common  indicators.  The  Member 

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States  and  Commission  will  monitor  progress  and  evaluate  the  effectiveness  of  the 
interventions. 

The section below provides information on the specific content of the three regulations. 

CAP Strategic Plan Regulation 

Title I provides for the scope of the regulation as well as definitions.  

Tittle II presents the CAP general and specific objectives that have to be pursued through the 
interventions designed by the Member States in their CAP Strategic Plans. Title III introduces 
a  number  of  common  requirements  for  the  CAP  strategic  Plans,  as  well  as  elements  which 
apply to several interventions.  The common requirements concern compliance with general 
principles and fundamental rights such as the avoidance of distortion of competition, respect 
for  the  internal  market  and  non-discrimination  as  well  as  the  respect  of  the  rules  of  WTO 
domestic support. They also include requirements as regards specific elements to be defined 
in  the  CAP  plans,  such  as  what  is  an  agricultural  area,  an  agricultural  activity,  a  genuine 
farmer,  a  young  farmer.  This  section  describes,  the  obligations  under  'conditionality'  (the 
requirements  any  beneficiary  of  area-based  payments  has  to  comply  with  concerning  good 
agricultural practices but also obligations stemming from EU legislation, and the need to have 
well-functioning farm advisory services.  

Finally  this  Title  presents  the  types  of  interventions  that  the  Member  States  may  use  to 
implement  their  CAP  Strategic  Plans.  Types  of  interventions  are  the  broad  categories  of 
interventions that Member States my use in their CAP Strategic Plans. 

Title  IV  provides  financial  provisions.  It  includes  in  particular  financial  allocations  per 
Member  State  and  per  Fund  and  defines  the  flexibility  for  transferring  allocations  between 
funds.  It  provides  the  contribution  rates  for  EAFRD  in  relation  to  public  expenditure  in  the 
Member  States  and  sets  out  some  minimum  or  maximum  financial  allocations  for  specific 
purposes. 

Title  V  presents  the  rules  on  the  CAP  Strategic  Plans.  It  mentions  what  elements  Member 
States  have  to  take  into  account  when  drafting  a  CAP  Strategic  Plan  and  what  shall  be  its 
minimum content including targets and financial planning. This title also explains what rules 
apply for the approval of the CAP Strategic Plans by the Commission and how such plans can 
be amended. 

Title  VI  provides  the  necessary  elements  on  coordination  and  governance.  It  attributes 
responsibilities  to  Member  States'  authorities  for  specific  tasks  related  to  the  CAP  Strategic 
Plans.  It  establishes  a  monitoring  committee  to  involve  all  stakeholders.  It  also  establishes 
networks  that  have  to  facilitate  the  successful  implementation  of  the  CAP  Strategic  Plans. 
These  networks  will  be  established  both  at  national  and  at  EU  level.  Finally,  this  title 
establishes  the  European  Innovation  Partnership  in  order  to  stimulate  the  exchange  of 
knowledge and innovation. 

Title VII introduces the performance monitoring and evaluation framework laying down rules 
on what and when Member States have to report progress on their CAP Strategic Plans and 
rules  on how this  progress will  be monitored and evaluated. This  title in  particular contains 
the rules on a performance bonus for good environmental and climate performance.  

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Finally,  Titles  VIII  and  IX  concern  the  competition  rules,  which  explain  how  in  particular 
State aid rules have to be applied, and the final provisions that explain what regulations are 
repealed and when the regulation becomes applicable. 

CAP Horizontal Regulation 

It is proposed to maintain the current structure of the CAP in two pillars with annual measures 
of  general  application  in  Pillar  I  complemented  by  measures  reflecting  the  national  and 
regional specificities under a multi-annual programming approach in Pillar II. However, the 
new design of the CAP for post 2020 will point to an increased subsidiarity so that Member 
States can better tailor implementing measures under both Pillars to their realities and farmers' 
concrete  circumstances.  More  subsidiarity  means  rebalancing  the  responsibilities  in  the 
management of the CAP and looking for a new relationship between the European Union, the 
Member States and the farmers. 

On  this  basis,  the  current  CAP  Horizontal  Regulation  is  adapted  to  the  new  delivery  model 
and reflects more flexibility for Member States in implementing the policy (in line with their 
local needs), less bureaucracy for beneficiaries and shift to a performance-based policy. 

The  move  at  EU  level  from  an  emphasis  on  compliance  to  performance  requires  a  clear 
identification of the objectives which the policy has to achieve: again, these objectives will be 
established at EU level. In order to advance towards a more result-driven policy mechanism, 
there will be a shift from assurance on legality and regularity of the underlying transactions to 
assurance  on  performance  and  the  respect  of  EU  basic  requirements,  like  the  Integrated 
Administration  and  Control  System  (IACS)  or  the  governance  bodies  (paying  agencies, 
coordinating  bodies, competent  authorities and  certification  bodies).  The  robust  and  reliable 
governance structures which characterise the CAP will be maintained. 

In  addition  to  financing  provisions,  the  CAP  Horizontal  Regulation  continues  to  have 
provisions on general principles for checks and penalties, checks for conditionality and IACS. 
As  a  result,  the  regulation  lays  down  rules  on  financing,  management  and  control  systems, 
clearance  processes  (annual  financial  clearance  and  annual  performance  clearance)  and 
conformity procedure. 

This  regulation  includes  various  simplification  elements.  First  of  all,  the  new  annual 
performance  clearance  reflects  the  shift  from  compliance  by  the  individual  beneficiary  to 
performance of the policy in the Member States.  

Furthermore, it foresees reducing the number of paying agencies and  reinforcing the role of 
the  coordinating  body and  certification  body  in line  with  the  new  delivery  model.  This  will 
render the system more transparent and less burdensome for both national administrations and 
the  Commission.  The  concept  of  the  single  audit  approach  is  introduced,  in  line  with  the 
Financial Regulation and the number of Commission audits can be reduced. 

Amending Regulation 

The Communication on the Future of Food and Farming confirms market orientation as a key 
element of the CAP, but also highlights challenges related to environmental sustainability and 
climate change. Moreover, it places the agricultural sector squarely in the debate about food 
and citizens' concerns in that regard, recalling that "the most important role for the policy is to 
help farmers anticipate developments in dietary habits and adjust their production according 
to market signals and consumers' demands". As detailed rules that may prevent the necessary 
adjustments are laid down at EU level, the reform presents an opportunity to make necessary 

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changes.  The  CAP  should  furthermore  address  citizens'  concerns  regarding  sustainable 
agriculture production.  

It  is  therefore  foreseen  to  maintain  the  architecture  and  main  features  of  Regulation  (EU) 
1308/2013,  while  amending  a  limited  number  of  provisions  in  view  of  economic, 
environmental and societal evolutions experienced since its entry into force in 2014.  

Firstly, it is foreseen to delete provisions related to sectorial interventions that have previously 
been laid down in Regulation (EU) No 1308/2013, as these interventions of the future CAP 
will  be  regulated  under  the  CAP  Strategic  Plan  Regulation  and  be  part  of  Member  States' 
strategic plans, to ensure a better coherence of CAP interventions.  

Secondly,  while  the  successive  2008  and  2013  reforms  of  the  wine  policy  have  overall 
reached  their  objectives,  resulting  in  economically  vibrant  wine  sector,  new  economic, 
environmental  and  climatic  challenges  have  appeared.  Therefore,  the  regulation  foresees  a 
number of specific amendments to existing rules to cope with these challenges. 

Thirdly,  the  Communication  on  the  Future  of  Food  and  Farming  called  for  geographical 
indications (GIs) to be made more attractive to farmers and consumers, and render the system 
easier  to  manage.  It  is  therefore  proposed  to  amend  current  rules  on  GIs,  spread  over  four 
basic Acts, aiming at a simpler GI system, faster registration of geographical indications and 
more  efficient  approval  of  amendments  to  product  specifications.  These  changes  aim  to  a 
simplified GI system that would be more understandable to consumers, easier to promote and 
would reduce administrative costs of managing the system. 

On  rules  for  wine  GIs,  limiting  the  EU  scrutiny  of  applications  to  checking  them  against 
manifest  errors,  separating  intellectual  property  rules  from  other  requirements  laid  down  in 
the product specification as well as habilitating Member States to decide on amendments that 
do  not  have  impacts  at  EU  level,  would  streamline  approvals,  shorten  timelines,  and 
rationalise resources, in line with the twin principles of subsidiarity and proportionality. In the 
same vein, simplification of some specific procedures, for example the opposition procedure, 
is envisaged to make the approval process more efficient.  

Clarification  of  the  definition  of  'Protected  Designation  of  Origin'  for  wines  will  enable 
producer groups  to  use  new varietals, also needed in  response  to  climate change, and allow 
proper  justifications  of  applications  in  line  with  viticulture  and  oenological  realities. 
Strengthening protection of GIs against counterfeiting of GIs on the interned and on goods in 
transit is also proposed. 

The simplification proposed for wine GIs has to be applied also to agricultural products and 
foodstuffs: to ensure reasonable level of coherence between the schemes and bring the above 
benefits to producers of GIs in this sector, too. The aromatised wines GI scheme that only has 
5  out  of  3350  GIs,  cannot  be  operational  and  should  be  merged  into  another  scheme  –  the 
agricultural  products  and  foodstuffs  scheme  is  appropriate as  already  covers  other  alcoholic 
beverages. 

Furthermore, the regulation foresees provisions that merely translate into internal legislation 
commitments  taken  by  the  EU  and  its  Member  States  in  the  context  of  recent  World  Trade 
Organization Ministerial Decisions, notably on export subsidies.  

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Finally,  it  is  proposed  to  delete  a  number  of  obsolete  provisions,  inter  alia  the  system  of 
production regulation and requirements applying to the sugar sector that expired at the end of 
the 2016/2017 marketing year. 

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2018/0218 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulations (EU) No 1308/2013 establishing a common organisation of the 
markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural 
products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, 
labelling and the protection of geographical indications of aromatised wine products, 
(EU) No 228/2013 laying down specific measures for agriculture in the outermost 
regions of the Union and (EU) No 229/2013 laying down specific measures for 
agriculture in favour of the smaller Aegean islands 

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), Article 114, the first paragraph of Article 118 and Article 349 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 Committee8, 
Having regard to the opinion of the Committee of the Regions9,  

Having regard to the opinion of the Court of Auditors, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

The  Communication  from  the  Commission  to  the  European  Parliament,  the  Council, 
the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions 
entitled  ‘The  Future  of  Food  and  Farming’  of  29  November  2017  sets  out  the 
challenges,  objectives  and  orientations  for  the  future  Common  Agricultural  Policy 
(CAP)  after  2020.  These  objectives  include,  inter  alia,  the  need  for  the  CAP  to  be 
more result-driven, to boost modernisation and sustainability, including the economic, 
social, environmental and climate sustainability of the agricultural, forestry and rural 
areas,  and  to  help  reducing  the  Union  legislation-related  administrative  burden  for 
beneficiaries. 

Since  the  CAP  needs  to  sharpen  its  responses  to  the  challenges  and  opportunities  as 
they  manifest  themselves  at  Union,  international,  national,  regional,  local  and  farm 
levels,  it  is  necessary  to  streamline  the  governance  of  the  CAP  and  improve  its 
delivery  on  the  Union  objectives  and  to  significantly  decrease  the  administrative 
burden.  In  the  CAP  based  on  delivery  of  performance  (‘delivery  model’),  the  Union 
should  set  the  basic  policy  parameters,  such  as  objectives  of  the  CAP  and  basic 
requirements, while Member States should bear greater responsibility as to how they 
meet  the  objectives  and  achieve  targets.  Enhanced  subsidiarity  makes  it  possible  to 

8 
9 

OJ C , , p. . 
OJ C , , p. . 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

10 

11 

better take into account local conditions and needs, tailoring the support to maximise 
the contribution to Union objectives. 

To ensure coherence of the CAP, all interventions of the future CAP should be part of 
a  strategic  support  plan which  would  include  certain  sectoral  interventions  that  were 
laid  down  in  Regulation  (EU)  No  1308/2013  of  the  European  Parliament  and  of  the 
Council10.  

Annex  II  to  Regulation  (EU)  No  1308/2013  sets  out  certain  definitions  concerning 
sectors  falling  within  the  scope  of  that  Regulation.  Definitions  concerning  the  sugar 
sector set out in Section B of Part II of that Annex should be deleted because they are 
no longer applicable. In order to update definitions concerning other sectors referred to 
in that Annex, in light of new scientific knowledge or market developments, the power 
to adopt acts in accordance with Article 290  of the Treaty on the Functioning of the 
European Union should be delegated to the Commission in respect of the amendment 
of  those  definitions.  It  is  of  particular  importance  that  the  Commission  carry  out 
appropriate  consultations  during  its  preparatory  work,  including  at  expert  level.  The 
Commission,  when  preparing  and  drawing  up  delegated  acts,  should  ensure  a 
simultaneous,  timely  and  appropriate  transmission  of  relevant  documents  to  the 
European Parliament and to the Council. Consequently, the individual  empowerment 
delegated to the Commission in point 4 of section A of Part II of that Annex to amend 
the definition of inulin syrup should be deleted.  

Part I of Regulation (EU) No 1308/2013 should be simplified. Redundant and obsolete 
definitions  and  provisions  empowering  the  Commission  to  adopt  implementing  acts 
should be deleted.  

The  limits  of  Union  aid  for  the  supply  of  fruit  and  vegetables  and  of  milk  and  milk 
products in educational establishments, set out in Article 23(a) of Regulation (EU) No 
1308/2013 should be updated.  

Provisions concerning Aid schemes set out in Sections 2 to 6 of Chapter II of Title I of 
Part  II  of  Regulation  (EU)  No  1308/2013  should  be  deleted  as  all  types  of 
interventions in these sectors will be set out in Regulation (EU)…/… of the European 
Parliament and of the Council11 (CAP Strategic Plan Regulation). 

In view of the decrease in the actual area planted with vines in several Member States 
in the years 2014-2017, and in view of the potential loss in production ensuing, when 
establishing  the  area  for  new  planting  authorisations  referred  to  in  Article  63(1)  of 
Regulation (EU) No 1308/2013, Member States should be able to choose between the 
existing  basis  and  a  percentage  of  the  total  area  actually  planted  with  vines  in  their 
territory  on  31  July  2015  increased  by  an  area  corresponding  to  the  planting  rights 
under  Regulation  (EC)  No  1234/2007  available  for  conversion  into  authorisations  in 
the Member State concerned on 1 January 2016. 

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 
establishing  a  common  organisation  of  the  markets  in  agricultural  products  and  repealing  Council 
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 
347, 20.12.2013, p. 671). 
Regulation  (EU)…/…  of  the  European  Parliament  and  of  the  Council  of  ….  establishing  rules  on 
support  for  strategic  plans  to  be  drawn  up  by  Member  States  under  the  Common  agricultural  policy 
(CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the 
European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  repealing  Regulation  (EU)  No 
1305/2013 of the European Parliament and of the Council and Regulation (EU) No 1307/2013 of the 
European Parliament and of the Council (OJ L …, ......, p…). 

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(9) 

Rules  for  classifying  wine  grape  varieties  by  Member  States  should  be  modified  to 
include  the  wine  grape  varieties  Noah,  Othello,  Isabelle,  Jacquez,  Clinton  and 
Herbemont,  previously  excluded.  To  ensure  that  wine  production  in  the  Union 
develops a higher resistance to diseases and that it uses vine varieties better adapted to 
changing  climatic  conditions,  provision  should  be  made  allowing  Vitis  Labrusca 
varieties  and  varieties  stemming  from  crosses  between  Vitis  vinifera,  Vitis  Labrusca 
and other species of the genus Vitis to be planted for wine production in the Union. 

(10)  To enable producers to use vine varieties that are better adapted to changing climatic 
conditions and with higher resistance to diseases, provision should be made permitting 
products  using  designations  of  origin  not  only  from  vine  varieties  belonging  to  Vitis 
vinifera but also from vine varieties stemming from a cross between Vitis vinifera and 
other species of the genus Vitis.  

(11)  Provisions  concerning  certificates  of  compliance  and  analysis  reports  for  imports  of 
wine  should  be  applied  in  light  of  the  international  agreements  concluded  in 
accordance with the Treaty on the Functioning of the European Union (‘TFEU’).  

(12)  The definition of a designation of origin should be aligned with the definition in the 
Agreement  on  Trade-Related  Aspects  of  Intellectual  Property  Rights12  (‘TRIPS 
Agreement’),  approved  by  Council  Decision 94/800/EC13,  in  particular  with  Article 
22(1)  thereof,  in  that  the  name  is  to  identify  the  product  as  originating  in  a  specific 
region or a specific place.  

(13)  To  ensure  coherent  decision-making  as  regards  applications  for  protection  and 
objection submitted in the preliminary national procedure referred to in Article 96 of 
Regulation (EU) No 1308/2013, the Commission should be informed in a timely and 
regular  manner  when  procedures  are  launched before  national  courts  or  other  bodies 
concerning  an  application  for  protection  forwarded  by  the  Member  State  to  the 
Commission,  as  referred  to  in  Article  96(5)  of  Regulation  (EU)  No  1308/2013. 
Implementing  powers  should  be  conferred  on  the  Commission  in  order  to,  in  those 
circumstances and where appropriate, suspend the examination of the application until 
the  national  court  or  other  national  body  has  adjudicated  on  the  challenge  to  the 
Member State’s assessment of the application in the preliminary national procedure.  

(14)  Registration  of  geographical  indications  should  be  made  simpler  and  faster  by 
separating  the  assessment  of  compliance  with  intellectual  property  rules  from  the 
assessment  of  compliance  of  the  product  specifications  with  the  requirements  laid 
down in the marketing standards and labelling rules.  

(15)  The  assessment  carried  out  by  the  competent  authorities  of  Member  States  is  an 
essential step in the procedure. Member States have knowledge, expertise and access 
to  data  and  facts  that  make  them  the  best  placed  to  verify  whether  the  information 
provided  in  the  application  is  correct  and  truthful.  Therefore,  Member  States  should 
guarantee  that  the  result  of  that  assessment,  which  is  to  be  faithfully  recorded  in  a 
single  document  summarising  the  relevant  elements  of  the  product  specification,  is 
reliable and accurate. Having regard to the principle of subsidiarity, the Commission 
should subsequently scrutinise applications to ensure that there are no manifest errors 

12 

13 

Uruguay Round of Multilateral Trade Negotiations (1986- 1994) - Annex 1 - Annex 1C - Agreement on 
Trade-Related Aspects of Intellectual Property Rights (WTO) (OJ L 336, 23.12.1994, p. 214).  
Council  Decision  94/800/EC  of  22 December  1994  concerning  the  conclusion  on  behalf  of  the 
European  Community,  as  regards  matters  within  its  competence,  of  the  agreements  reached  in  the 
Uruguay Round multilateral negotiations (1986-1994) (OJ L 336, 23.12.1994, p. 1). 

EN 

18 

  EN 

 
                                                 
and  that  Union  law  and  the  interests  of  stakeholders  outside  the  Member  State  of 
application are taken into account. 

(16)  The period during which an objection can be made should be extended to three months 
to ensure that all interested parties have sufficient time to analyse the application for 
protection  and  the  possibility  to  submit  a  statement  of  objection.  To  ensure  that  the 
same  procedure  for  objections  is  applied  under  Regulation  (EU)  No  1308/2013  and 
under Regulation (EU) No 1151/2012 of the European Parliament and of the Council14 
and thus enable Member States to forward objections stemming from natural or legal 
persons  residing  or  established  in  their  territory  to  the  Commission  in  a  coordinated 
and efficient manner, objections from natural or legal persons should be submitted via 
the  authorities  of  the  Member  State  in  which  they  reside  or  are  established.  To 
simplify  the  objection  procedure,  the  Commission  should  be  empowered  to  reject 
inadmissible  statements  of  objection  in  the  implementing  act  conferring  protection. 
Therefore,  Article  111  of  Regulation  (EU)  No  1308/2013  conferring  implementing 
powers  on  the  Commission  to  reject  inadmissible  objections  under  a  separate 
implementing act should be deleted.  

(17)  To  increase  procedural  efficiency  and  in  order  to  ensure  uniform  conditions  for  the 
conferral  of  protection  on  designations  of  origin  or  geographical  indications, 
implementing powers should be conferred on the Commission to adopt implementing 
acts  conferring  protection  without  recourse  to  the  examination  procedure  in 
circumstances  where  no  admissible  statement  of  objections  to  the  application  for 
protection  has  been  submitted.  Where  an  admissible  statement  of  objection  has  been 
submitted,  implementing  powers  should  be  conferred  on  the  Commission  to  adopt 
implementing  acts  in  accordance  with  the  examination  procedure  either  conferring 
protection or rejecting the application for protection.  

(18)  Having  due  regard  to  the  TRIPS  Agreement,  in  particular  to  Articles  22  and  23 
thereof, and to the General Agreement on Tariffs and Trade15 (‘GATT Agreement’) in 
particular  Article  V  thereof  on  freedom  of  transit,  both  of  which  were  approved  by 
Council  Decision  94/800/EC  and  aim  at  strengthening  the protection  of  designations 
of origin and geographical indications, and to combat counterfeiting more effectively, 
the  protection  conferred  by  Article  103(2)  of  Regulation (EU)  No  1308/2013  should 
be extended to cover goods which are in transit across the Union customs territory and 
to goods which are sold over the internet or by other means of electronic commerce. 

(19) 

(20) 

It should be possible to cancel the protection of a designation of origin or geographical 
indication  in  circumstances  where  they  are  no  longer  in  use  or  where  the  applicant 
referred  to  in  Article  95  of  Regulation  (EU)  No  1308/2013  no  longer  wishes  to 
maintain that protection.  

In  view  of  the  ever  increasing  consumer  demand  for  innovative  grapevine  products 
with a lower actual alcoholic strength than the minimum actual alcoholic strength set 
out for grapevine products in Part II of Annex VII to Regulation (EU) No 1308/2013, 
it should be possible to produce such innovative grapevine products also in the Union. 

(21) 

It  is  necessary  to  provide  for  definitions  of  de-alcoholised  grapevine  products  and 
partially de-alcoholised grapevine products. These definitions should take into account 
the definitions set out in the Resolutions of the International Organisation of Vine and 

14 

15 

Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 
on quality schemes for agricultural products and foodstuffs (OJ L 343, 14.12.2012, p. 1). 
Uruguay  Round  of  Multilateral  Trade  Negotiations  (1986  -  1994)  –  Annex  1  –  Annex  1A  –  General 
Agreement on Tariffs and Trade in Goods (WTO) (OJ L 336, 23.12.1994, p. 1).  

EN 

19 

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(22) 

Wine (OIV), OIV-ECO 433-2012 Beverage Obtained By Partial Dealcoholisation of 
Wine  and  OIV-ECO  523-2016  Wine  With  An  Alcohol  Content  Modified  by 
Dealcoholisation. 

In order to ensure that the rules governing labelling and presentation of products in the 
wine  sector  also  apply  to  de-alcoholised  or  partially  de-alcoholised  grapevine 
products, to establish rules governing the dealcoholisation processes for the production 
of  certain  de-alcoholised  or  partially  de-alcoholised  grapevine  products  within  the 
Union,  and  rules  concerning  the  conditions  of  use  of  closures  in  the  wine  sector  in 
order to ensure that consumers are protected from misleading use of certain closures 
associated  with  certain  beverages  and  from  hazardous  closure  materials  that  may 
contaminate the beverages, the power to adopt acts in accordance with Article 290 of 
the  Treaty  on  the  Functioning  of  the  European  Union  should  be  delegated  to  the 
Commission. It is of particular importance that the Commission carry out appropriate 
consultations  during  its  preparatory  work,  including  at  expert  level  and  that  those 
consultations  be  conducted  in  accordance  with  the  principles  laid  down  in  the 
Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to 
ensure  equal  participation  in  the  preparation  of  delegated  acts,  the  European 
Parliament and the Council receive all documents at the same time as Member States' 
experts,  and  their  experts  systematically  have  access  to  meetings  of  Commission 
expert groups dealing with the preparation of delegated acts.  

(23)  The rules on production and the requirements applying to the sugar sector expired at 
the  end  of  the  2016/2017  marketing  year.  Article  124  and  Articles  127  to  144  of 
Regulation (EU) No 1308/2013 are now obsolete and should be deleted. 

(24)  Measures and rules concerning imports of hemp set out in Article 189 of Regulation 

(EU) No 1308/2013 are redundant and obsolete and should be deleted. 

(25)  Articles  192  and  193  of  Regulation  (EU)  No  1308/2013  should  be  deleted  as  such 
measures are no longer necessary in view of the end of the production regulation in the 
sugar sector. In order to ensure that the Union market is adequately supplied by means 
of  imports  from  third  countries,  implementing  powers  should  be  conferred  on  the 
Commission to suspend import duties for cane and beet molasses. 

(26)  The  Ministerial  Decision  of  19  December  2015  on  Export  Competition  of  the  10th 
WTO  Ministerial  Conference  in  Nairobi16  sets  down  rules  on  export  competition 
measures. As regards export subsidies, WTO members are required to eliminate their 
export  subsidy  entitlements  as  of  the  date  of  that  Decision.  Therefore,  Union 
provisions  on  export  refunds  set  out  in  Articles  196  to  204  of  Regulation  (EU)  No 
1308/2013 should be deleted.  

(27) 

In  respect  of  export  credits,  export  credit  guarantees  and  insurance  programmes, 
agricultural  exporting  state  trading  enterprises  and  international  food  aid,  Member 
States  may  adopt  national  measures  respecting  Union  law.  Since  the  Union  and  its 
Member States are WTO Members, such national measures should also comply with 
the  rules  laid  down  in  that  WTO  Ministerial  Decision  of  19  December  2015,  as  a 
matter of Union law and international law.  

(28)  Obsolete  reporting  obligations  of  the  Commission  regarding  the  milk  and  milk 
products  market,  the  extension  of  the  school  scheme  scope  and  the  application  of 
competition  rules  to  the  agriculture  sector  should  be  deleted.  Reporting  obligations 

16 

WT/MIN(15)/45, WT/L//980 

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20 

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concerning the apiculture sector should be integrated in Regulation (EU) …/… (CAP 
Strategic Plan Regulation).  

(29) 

In  view  of  the  repeal  of  Regulation  (EU)  No  1306/2013  of  the  European  Parliament 
and  of  the  Council17  by  Regulation  (EU)…/…  (CAP  Strategic  Plan  Regulation), 
provisions  concerning  checks  and  penalties  related  to  marketing  standards  and 
protected designations of origin, geographical indications and traditional terms should 
be integrated in Regulation (EU) No 1308/2013.  

(30)  Provisions  concerning  the  reserve  for  crises  in  the  agricultural  sector  laid  down  in 
Chapter III of Part V of Regulation (EU) No 1308/2013 should be deleted as updated 
provisions concerning the agricultural reserve are laid down in Regulation (EU) …/… 
of the European Parliament and of the Council18 (Horizontal Regulation).  

(31) 

In  view  of  the  limited  number  of  registrations  of  geographical  indications  of 
aromatised wines under Regulation (EU) No 251/2014 of the European Parliament and 
of the Council19 the legal framework for the protection of geographical indications for 
those products should be simplified. Aromatised wines and other alcoholic beverages 
with the exception of spirit drinks and of grapevine products listed in Part II of Annex 
VII  to  Regulation  (EU)  No  1308/2013  should  have  the  same  legal  regime  and 
procedures  as  other  agricultural  products  and 
foodstuffs.  The  scope  of 
Regulation (EU)  No  1151/2012  should  be  extended  to  cover  those  products. 
Regulation (EU) No 251/2014 of the European Parliament and of the Council should 
be amended to take account of this change as regards its title, scope, definitions and 
provisions concerning labelling of aromatised wine products. A smooth transition for 
the names protected under Regulation (EU) No 251/2014 should be ensured.  

(32)  Procedures  related  to  the  registration  of  protected  designations  of  origin,  protected 
geographical  indications  and  traditional  specialities  guaranteed  laid  down  in 
Regulation  (EU)  No  1151/2012  should  be  streamlined  and  simplified  to  ensure  that 
new  names  can  be  registered  within  shorter  time  periods.  The  opposition  procedure 
should be simplified.  

(33)  Provision should be made for specific derogations that permit the use of other names 
alongside the registered name of a traditional speciality guaranteed. The Commission 
should  fix  transitional  periods  for  the  use  of  designations  that  contain  names  of 
traditional  specialities  guaranteed,  in  line  with  the  conditions  for  such  transitional 
periods  already  in  existence  for  protected  designations  of  origin  and  protected 
geographical indications. 

(34)  The  procedure  for  approval  of  amendments  to  product  specifications  laid  down  in 
Regulation  (EU)  No  1151/2012  should  be  simplified  by  introducing  a  distinction 
between  Union  and  standard  amendments.  In  accordance  with  the  subsidiarity 
principle,  Member  States  should  be  responsible  for  approving  standard  amendments 

17 

18 

19 

Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on 
the  financing,  management  and  monitoring  of  the  common  agricultural  policy  and  repealing  Council 
Regulations  (EEC)  No  352/78,  (EC)  No  165/94,  (EC)  No  2799/98,  (EC)  No  814/2000,  (EC)  No 
1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).  
Regulation  (EU)…/…  of  the  European  Parliament  and  of  the  Council  of  ….  on  the  financing  and 
monitoring of the common agriculture policy and repealing Regulation (EU) No 1306/2013 (OJ L …, 
......, p…). 
Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on 
the  definition,  description,  presentation,  labelling  and  the  protection  of  geographical  indications  of 
aromatised wine products and repealing Council Regulation (EEC) No 1601/91 (OJ L 84, 20.3.2014, p. 
14).  

EN 

21 

  EN 

 
                                                 
and the Commission should retain responsibility for approving Union amendments to 
product specifications. 

(35)  The  amounts  of  financial  resources  available  to  finance  measures  under  Regulations 
(EU)  No  228/201320  and  (EU)  No  229/2013  of  the  European  Parliament  and  of  the 
Council 21 should be updated.  

(36)  Regulations  (EU)  No  1308/2013,  (EU)  No  1151/2012,  (EU)  No  251/2014,  (EU)  No 

228/2013 and (EU) No 229/2013 should therefore be amended accordingly. 

(37)  Transitional arrangements should be put in place for applications for protection and for 
the  registration  of  protected  designations  of  origin,  geographical  indications  and 
traditional  specialities  guaranteed  that  have  been  submitted  before  the  date  of  entry 
into force of this Regulation and  for  the expenditure incurred before 1 January 2021 
under  the  aid  schemes  for  olive  oil  and  table  olives,  fruit  and  vegetables,  wine, 
apiculture and hops established in Articles 29 to 60 of Regulation (EU) No 1308/2013.  

(38) 

In  order  to  ensure  a  smooth  transition  to  the  new  legal  framework  laid  down  in 
Regulation  (EU)  …/…  (CAP  Strategic  Plan  Regulation),  the  provisions  concerning 
amendments to Regulation (EU) No 1308/2013 as regards certain aid schemes and the 
reserve for crisis in the agricultural sectors and the provisions concerning amendments 
to Regulations (EU) No 228/2013 and (EU) No 229/2013 should apply from 1 January 
2021,  

HAVE ADOPTED THIS REGULATION: 

Article 1 
Article Amendments to Regulation (EU) No 1308/2013 

Regulation (EU) No 1308/2013 is amended as follows:  

(1) 

Article 3 is amended as follows:  

(a)  paragraph 2 is deleted; 

(b)  paragraphs 3 and 4 are replaced by the following:  

'3.  The  definitions  set  out  in  Regulation  (EU)  …/…  of  the  European 
Parliament  and  of  the  Council*[Horizontal  Regulation]  and  Regulation 
(EU)  …/…  of  the  European  Parliament  and  of  the  Council**  [  CAP 
Strategic  Plan  Regulation]  shall  apply  for  the  purposes  of  this 
Regulation, save as otherwise provided for in this Regulation. 

4. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in 
accordance  with  Article  227  amending  the  definitions  concerning  the 
sectors  set  out  in  Annex  II  to  the  extent  necessary  to  update  the 
definitions in light of market developments. 

---------------------------- 

20 

21 

Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying 
down  specific  measures  for  agriculture  in  the  outermost  regions  of  the  Union  and  repealing  Council 
Regulation (EC) No 247/2006 (OJ 78, 20.3.2013, p. 23). 
Regulation (EU) No 229/2013 of the European Parliament and of the Council of 13 March 2013 laying 
down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council 
Regulation (EC) No 1405/2006 (OJ L 78, 20.3.2013, p. 41).  

EN 

22 

  EN 

 
                                                 
* 

** 

Regulation (EU) …/… of the European Parliament and of the Council of …. on the financing 
and  monitoring  of  the  common  agriculture  policy  and  repealing  Regulation  (EU)  No 
1306/2013 (OJ L …, ......, p…). 

Regulation (EU) …/… of the European Parliament and of the Council of …. establishing rules 
on  support  for  strategic  plans  to  be  drawn  up  by  Member  States  under  the  Common 
agricultural  policy  (CAP  Strategic  Plans)  and  financed  by  the  European  Agricultural 
Guarantee  Fund  (EAGF)  and  by  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD) and repealing Regulation (EU) No 1305/2013 of the European Parliament and of the 
Council  and  Regulation  (EU)  No  1307/2013  of  the  European  Parliament  and  of  the  Council 
(OJ L …, ......, p…).'; 

(2) 

Article 5 is replaced by the following:  

'Article 5 
Article Conversion rates for rice 

The Commission may adopt implementing acts fixing the conversion rates for rice at 
various stages of processing. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 229(2).';  

(3) 

(4) 

Article 6 is deleted;  

Chapter II of Title I of Part II is amended as follows: 

(a) 

the title is replaced by: 

'CHAPTER II 

Aid  for  the  supply  of  fruit  and  vegetables  and  of  milk  and  milk  products  in 
educational establishments'; 

(b) 

(c) 

the heading 'Section 1' and its title are deleted; 

 Article 23a is amended as follows:  

(i) 

paragraph 1 is replaced by the following:  

'1.  Without  prejudice  to  paragraph  4,  the  aid  under  the  school 
scheme  allocated  for  the  distribution  of  products,  the 
accompanying  educational  measures  and  the  related  costs 
exceed 
referred 
EUR 220 804 135 per school year. 

in  Article 

23(1) 

shall 

not 

to 

Within that overall limit, the aid shall not exceed:  

(a) 

for  school  fruit  and  vegetables:  EUR 130 608 466  per 
school year;  

(b) 

for school milk: EUR 90 195 669 per school year.'; 

(ii) 

in the third subparagraph of paragraph 2, the last sentence is deleted;  

(iii)  paragraph 4 is replaced by the following:  

'4.  Without exceeding the overall limit of EUR 220 804 135 laid 
down  in  paragraph  1,  any  Member  State  may  transfer  once 
per  school  year  up  to  20%  of  either  one  or  the  other  of  its 
indicative allocations.'; 

(d) 

 Sections 2 to 6 covering Articles 29 to 60 are deleted;  

EN 

23 

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(5) 

in Article 63, paragraph 1 is replaced by the following: 

'1.  Member States shall make available each year authorisations for new plantings 

corresponding to either: 

(a) 

1%  of  the  total  area  actually  planted  with  vines  in  their  territory,  as 
measured on 31 July of the previous year; or  

(b)  1%  of  an  area  comprising  the  area  actually  planted  with  vines  in  their 
territory, as measured on 31 July 2015, and the area covered by planting 
rights  granted  to  producers  in  their  territory  in  accordance  with  Article 
85h,  Article  85i  or  Article  85k  of  Regulation  (EC)  No  1234/2007  and 
available  for  conversion  into  authorisations  on  1  January  2016,  as 
referred to in Article 68 of this Regulation.';  

(6) 

in Article 81, paragraph 2 is replaced by the following:  

'2. 

Subject  to  paragraph  3,  Member  States  shall  classify  which  wine  grape 
varieties may be planted, replanted or grafted in their territories for the purpose 
of wine production. 

Member States may classify wine grape varieties where:  

(a) 

(b) 

the  variety  concerned  belongs  to  the  species  Vitis  vinifera  or  Vitis 
Labrusca; or  

the  variety  concerned  comes  from  a  cross  between  the  species  Vitis 
vinifera, Vitis Labrusca and other species of the genus Vitis. 

Where a wine grape variety is deleted from the classification referred to in the 
first subparagraph, grubbing up of this variety shall take place within 15 years 
of its deletion.'; 

(7) 

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

'3.   Save  as  otherwise  provided  for  in  international  agreements  concluded  in 
accordance with the TFEU, the import of the products referred to in paragraph 
1 shall be subject to the presentation of: 

(a)  a  certificate  evidencing  compliance  with  the  provisions  referred  to  in 
paragraphs  1  and  2,  drawn  up  by  a  competent  body,  included  on  a  list  to  be 
made public by the Commission, in the product's country of origin; 

(b)  an  analysis  report  drawn  up  by  a  body  or  department  designated  by  the 
product's  country  of  origin,  if  the  product  is  intended  for  direct  human 
consumption.'; 

(8) 

in  Section  1  of  Chapter  1  of  Title  II  of  Part  II,  the  following  Subsection  4a  is 
inserted:  

'Subsection 4a 

Checks and penalties 

Article 90a 
Checks and penalties related to marketing rules 

1.  Without  prejudice  to  acts  concerning  the  wine  sector  that  have  been  adopted 
pursuant to Article 57 of Regulation (EU) […/…] (Horizontal Regulation), in 
the  event  of  infringement  of  Union  rules  in  the  wine  sector,  Member  States 

EN 

24 

  EN 

 
 
shall  apply  proportionate,  effective  and  dissuasive  administrative  penalties  in 
accordance with Title IV, Chapter I of that Regulation (Horizontal Regulation). 

2. 

In  order  to  protect  Union  funds  and  to  protect  the  identity,  provenance  and 
quality of Union wine, the Commission shall be empowered to adopt delegated 
acts in accordance with Article 227 relating to:  

(a) 

the establishment of an analytical databank of isotopic data to help detect 
fraud  to  be  constructed  on  the  basis  of  samples  collected  by  Member 
States;  

(b) 

rules governing control bodies and the mutual assistance between them;  

(c) 

rules governing the common use of the findings of Member States.  

3. 

The  Commission  may  adopt  implementing  acts  laying  down  all  measures 
necessary for establishing:  

(a) 

(b) 

(c) 

the  procedures  relating  to  Member  States'  own  databanks  and  to  the 
analytical databank of isotopic data that will help detect fraud;  

the  procedures  relating  to  cooperation  and  assistance  between  control 
authorities and bodies;  

as regards the obligation referred to in paragraph 3, rules for performing 
checks  on  compliance  with  marketing  standards,  rules  governing  the 
authorities  responsible  for  performing  the  checks,  as  well  as  on  the 
content, the frequency and the marketing stage to which those checks are 
to apply.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 229(2).'; 

(9) 

Article 93 is amended as follows:  

(a) 

in paragraph 1, point (a) is replaced by the following:  

'(a) 

'a  designation  of  origin'  means  a  name  which  identifies  a  product, 
referred to in Article 92(1):  

(i)  whose  quality  or  characteristics  are  essentially  or  exclusively  due 
to  a  particular  geographical  environment,  with  its  inherent  natural 
factors and, where relevant, human factors;  

(ii) 

as originating in a specific place, region or, in exceptional cases, a 
country;  

(iii)  produced  from  grapes  which  originate  exclusively  from  that 

geographical area; 

(iv) 

the production of which takes place in that geographical area; and 

(v)  which is obtained from vine varieties belonging to Vitis vinifera or 
a cross between  the  Vitis  vinifera species and other  species of the 
genus Vitis.'; 

(b) 

in paragraph 2, point (c) is replaced by the following:  

'(c) 

fulfil  the  requirements  referred  to  in  points  (a)(i)  to  (v)  of  paragraph  1; 
and'; 

(c)  paragraph 4 is replaced by the following:  

EN 

25 

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'4. 

Production,  as  referred  to  in  points  (a)(iv)  and  (b)(iii)  of  paragraph  1, 
shall cover all the operations involved, from the harvesting of the grapes 
to  the  completion  of  the  wine-making  processes,  with  the  exception  of 
any post-production processes.'; 

(10) 

in Article 94(1), the introductory sentence is replaced by the following:  

'Applications  for  protection  of  names  as  designations  of  origin  or  geographical 
indications shall include:' 

(11) 

in Article 96, the following paragraphs 6 and 7 are added: 

'6.   The Member State shall inform the Commission without delay if any procedure 
is  initiated  before  a  national  court  or  other  national  body  concerning  an 
application  for  protection  that  the  Member  State  has  forwarded  to  the 
Commission, in accordance with paragraph 5. 

7.  Where appropriate, the Commission may adopt implementing acts to suspend 
the examination of the application referred to in Article 97(2) until a national 
court  or  other  national  body  has  adjudicated  on  a  challenge  to  an  application 
for protection where the Member State has considered that the requirements are 
fulfilled in a preliminary national procedure in accordance with paragraph 5. 

Those  implementing  acts  shall  be  adopted  without  applying  the  procedure 
referred to in Article 229(2) or (3).';  

(12) 

In Article 97, paragraphs 2, 3 and 4 are replaced by the following:  

'2.  The  Commission  shall  examine  applications  for  protection  that  it  receives  in 
accordance  with  Articles  94  and  96(5).  It  shall  scrutinise  them  for  manifest 
errors,  taking  into  account  the  outcome  of  the  preliminary  national  procedure 
carried out by the Member State concerned.  

Scrutiny by the Commission should not exceed a period of six months from the 
date of receipt of the application from the Member State. Where this period is 
exceeded, the Commission shall inform the applicants in writing of the reasons 
for this delay.  

3.  Where, on the basis of the scrutiny carried out pursuant to paragraph 2 of this 
Article, the Commission considers that the conditions laid down in Articles 93, 
100  and  101  are  met,  it  shall  adopt  implementing  acts  concerning  the 
publication,  in  the  Official  Journal  of  the  European  Union,  of  the  single 
document  referred  to  in  point  (d)  of  Article  94(1)  and  of  the  reference  to  the 
publication of the product specification made in the course of the preliminary 
national procedure.  

Those  implementing  acts  shall  be  adopted  without  applying  the  procedure 
referred to in Article 229(2) or (3). 

4.  Where, on the basis of the scrutiny carried out pursuant to paragraph 2 of this 
Article, the Commission considers that the conditions laid down in Articles 93, 
100  and  101  are  not  met  it  shall  adopt  implementing  acts  rejecting  the 
application. 

Those implementing acts shall be adopted in accordance with the examination 
procedure referred to in Article 229(2).'; 

(13) 

Articles 98 and 99 are replaced by the following:  

EN 

26 

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'Article 98 
Objection procedure 

Within  three  months  from  the  date  of  publication  in  the  Official  Journal  of  the 
European Union, of the single document referred to in point (d) of Article 94(1), the 
authorities  of  a  Member  State  or  of  a  third  country,  or  any  natural  or  legal  person 
having a legitimate interest and resident or established in a third country, may submit 
a  statement  of  objection  to  the  Commission  opposing  the  proposed  protection.  A 
statement of objection shall be duly substantiated. 

Any natural or legal person having a legitimate interest and resident or established in 
a  Member  State  other  than  the  Member  State  that  forwarded  the  application  for 
protection may submit the statement of objection via the authorities of the Member 
State in which it is resident or established within a time limit permitting a statement 
of  objections  to  be  submitted  lodged  within  the  time  limit  referred  to  in  the  first 
paragraph. 

Article 99 
Decision on protection 

1.  Where the Commission has not received an admissible statement of objection 
in accordance with Article 98, it shall adopt implementing acts conferring the 
protection.  Those  implementing  acts  shall  be  adopted  without  applying  the 
examination procedure referred to in Article 229(2) or (3).  

2.   Where  the  Commission  has  received  an  admissible  statement  of  objection  it 
shall  adopt  implementing  acts  either  conferring  protection  or  rejecting  the 
application. Those implementing acts shall be adopted in accordance with the 
examination procedure referred to in Article 229(2).  

3.  

Protection  conferred  pursuant  to  this  Article  shall  be  without  prejudice  to 
compliance of products concerned with other Union rules relating in particular 
to the placing of products on the market, marketing and to food labelling.' 

(14) 

in Article 103, the following paragraph 4 is added:  

'4.  The protection referred to in paragraph 2 shall also apply with regard to goods 
entering  the  customs  territory  of  the  Union  without  being  released  for  free 
circulation within the customs territory of the Union and with regard to goods 
sold through means of electronic commerce in the Union.'; 

(15) 

Article 106 is replaced by the following: 

'Article 106 
Cancellation 

The Commission may, on its own initiative or at the duly substantiated request of a 
Member  State,  a  third  country,  or  a  natural  or  legal  person  having  a  legitimate 
interest, adopt implementing acts cancelling the protection of a designation of origin 
or a geographical indication in one or more of the following circumstances: 

(a)  where  compliance  with  the  corresponding  product  specification  is  no  longer 

guaranteed; 

(b)  where  no  product  has  been  placed  on  the  market  bearing  the  designation  of 

origin or geographical indication for at least seven consecutive years;  

EN 

27 

  EN 

 
(c)  where  an  applicant  satisfying  the  conditions  laid  down  in  Article  95  declares 
that it no longer wants to maintain the protection of a designation of origin or a 
geographical indication. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 229(2).'; 

(16) 

(17) 

Article 111 is deleted;  

in Section 2 of Chapter I of Title II of Part II, the following Subsection 4 is added: 

Checks related to designations of origin, geographical indications and traditional terms 

'Subsection 4  

Article 116a 
Checks 

1.  Member States shall take the necessary steps to stop unlawful use of protected 
designations  of  origin,  protected  geographical  indications  and  protected 
traditional terms referred to in this Regulation.  

2.  Member States shall designate the competent authority responsible for carrying 
out the checks in respect of the obligations laid down in this Section. To that 
end, Articles 4(2), 4(4), 5(1), 5(4) and 5(5) of Regulation (EU) 2017/625 of the 
European Parliament and of the Council* shall apply. 

3.  Within the Union, the competent authority referred to in paragraph 2 or one or 
more  delegated  bodies  within  the  meaning  of  point  (5)  of  Article  3  of 
Regulation  (EU)  2017/625  operating  as  a  product  certification  body  in 
accordance  with  the  criteria  laid  down  in  Chapter  III  of  Title  II  of  that 
Regulation,  shall  verify  annual  compliance  with  the  product  specification, 
during the wine production and during or after conditioning.  

4. 

The Commission shall adopt implementing acts concerning the following:  

(a) 

(b) 

(c) 

the communication to be made by the Member States to the Commission;  

rules  governing  the  authority  responsible  for  verifying  compliance  with 
the  product  specification,  including  where  the  geographical  area  is  in  a 
third country;  

the  actions  to  be  implemented  by  the  Member  States  to  prevent  the 
unlawful use of protected designations of origin, protected geographical 
indications and protected traditional terms;  

(d) 

the  checks  and  verification  to  be  carried  out  by  the  Member  States, 
including testing.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 229(2). 

* 

Regulation  (EU) 2017/625  of  the  European  Parliament  and  of  the  Council  of  15 March  2017 
on official controls and other official activities performed to ensure the application of food and 
feed  law,  rules  on  animal  health  and  welfare,  plant  health  and  plant  protection  products, 
amending  Regulations  (EC)  No 999/2001,  (EC)  No 396/2005,  (EC)  No 1069/2009,  (EC) 
No 1107/2009,  (EU)  No 1151/2012,  (EU)  No 652/2014,  (EU) 2016/429  and  (EU) 2016/2031  of 
the  European Parliament  and  of  the  Council,  Council  Regulations  (EC)  No 1/2005  and  (EC) 
No 1099/2009  and  Council  Directives 98/58/EC,  1999/74/EC,  2007/43/EC,  2008/119/EC 
and 2008/120/EC,  and  repealing  Regulations  (EC)  No 854/2004  and  (EC)  No 882/2004  of  the 

EN 

28 

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European Parliament  and  of  the  Council,  Council  Directives 89/608/EEC,  89/662/EEC, 
90/425/EEC, 
Council 
96/23/EC, 
Decision 92/438/EEC (Official Controls Regulation) (OJ L 95, 7.4.2017, p. 1).'; 

and 97/78/EC 

91/496/EEC, 

96/93/EC 

and 

(18) 

Article 119 is amended as follows: 

(a) 

in paragraph 1, the introductory sentence is replaced by the following:  

'Labelling and presentation of the products referred to in points 1 to 11, 13, 15, 
16, 18 and 19 of Part II of Annex VII marketed in the Union or for export shall 
contain the following compulsory particulars:'; 

(b) 

the following paragraph 4 is added: 

'4 Member States shall take measures to ensure that the products referred to in 
paragraph  1  which  are  not  labelled  in  conformity  with  the  provisions  of  this 
Regulation  are  not  placed  on  the  market,  or  are  withdrawn  from  it  if  already 
placed on the market.'  

(19) 

in Article 120(1), the introductory sentence is replaced by the following:  

'Labelling and presentation of the products referred to in points 1 to 11, 13, 15, 16, 
18 and 19 of Part II of Annex VII may, in particular, contain the following optional 
particulars:'; 

(20) 

in Article 122, paragraph 1 is amended as follows: 

(a) 

(b) 

in point (b), point (ii) is deleted;  

in point (c), the following point (iii) is added:  

'(iii)  terms referring to a holding and the conditions for their use.'; 

(c) 

in point (d), point (i) is replaced by the following:  

'(i) 

the conditions of use of certain bottle shapes and of closures, and a list of 
certain specific bottle shapes;'; 

(21) 

Section 1 of Chapter II of Title II of Part II is amended as follows:  

(a)  Article 124 is deleted; 

(b) 

the heading "Subsection 1" and its title are deleted; 

(c)  Subsections 2 and 3 covering Articles 127 to 144 are deleted; 

(22) 

in Article 145(3), the first sentence is replaced by the following:  

'Member  States  which  provide  in  their  CAP  strategic  plans  for  restructuring  and 
conversion of vineyards in accordance with point (a) of Article 52(1) of Regulation 
(EU)  …/…[CAP  Strategic  Plan  Regulation],  shall  on  the  basis  of  the  vineyard 
register  submit  to  the  Commission  by  1  March  each  year  an  updated  inventory  of 
their production potential.'; 

(23) 

(24) 

(25) 

Article 189 is deleted; 

Articles 192 and 193 are deleted;  

in Chapter IV, the following Article 193a is added:  

EN 

29 

  EN 

 
 'Article 193a 
Suspension of import duties for molasses 

The Commission may adopt implementing acts suspending import duties in whole or 
in part for molasses falling within CN Code 1703.  

Those implementing acts shall be adopted without applying the procedure referred to 
in Article 229(2) or (3).'; 

(26) 

(27) 

(28) 

(29) 

In Part III Chapter VI, covering Articles 196 to 204, is deleted; 

In Article 225, points (a) to (d) are deleted;  

In Part V, Chapter III covering Article 226 is deleted.  

Part II of Annex II is amended as follows: 

(a) 

in point 4 of Section A, the second sentence is deleted;  

(b)  Section B is deleted; 

(30) 

Annex III is amended as follows: 

(a) 

 the title is replaced by the following: 

(31) 

(32) 

'STANDARD  QUALITY  OF  RICE  AND  SUGAR  AS  REFERRED  TO  IN 
ARTICLE 1a OF REGULATION (EU) No 1370/2013* 

* 

Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing 
certain  aids  and  refunds  related  to  the  common  organisation  of  the  markets  in  agricultural 
products (OJ L 346, 20.12.2013, p. 12)'; 

(b) 

 in Part B, Section I is deleted;  

Annex VI is deleted; 

in Part II of Annex VII, the following points (18) and (19) are added:  

'(18)  The term 'de-alcoholised' may be used together with the name of the grapevine 

products referred to in points 1 and 4 to 9, where the product:  

(a) 

is obtained from wine as defined in point 1, sparkling wine as defined in 
point  4,  quality  sparkling  wine  as  defined  in  point  5,  quality  aromatic 
sparkling wine as defined in point 6, aerated sparkling wine as defined in 
point 7, semi-sparkling wine as defined in point 8, or from aerated semi-
sparkling wine as defined in point 9;  

(b)  has  undergone  a  dealcoholisation  treatment  in  accordance  with  the 

processes specified in Section E of Part I of Annex VIII; and 

(c) 

has a total alcoholic strength of no more than 0,5% by volume. 

(19)  The term 'partially de-alcoholised' may be used together with the name of the 
grapevine products referred to in points 1 and 4 to 9, where the product:  

(a) 

is obtained from wine as defined in point 1, sparkling wine as defined in 
point  4,  quality  sparkling  wine  as  defined  in  point  5,  quality  aromatic 
sparkling wine as defined in point 6, aerated sparkling wine as defined in 
point 7, semi-sparkling wine as defined in point 8, or from aerated semi-
sparkling wine as defined in point 9; 

(b)  has  undergone  a  dealcoholisation  treatment  in  accordance  with  the 

processes specified in Section E of Part I of Annex VIII; and  

EN 

30 

  EN 

 
(c) 

has a total alcoholic strength of more than 0,5% by volume and following 
the  processes  specified  in  Section  E  of  Part  I  of  Annex  VIII  its  total 
alcoholic strength is reduced by more than 20% by volume compared to 
its initial total alcoholic strength.'; 

(33) 

in Part I of Annex VIII, the following Section E is added:  

'E.  Dealcoholisation processes 

The following dealcoholisation processes, whether used each of its own or in 
combination,  shall  be  allowed  to  reduce  part  of  or  almost  all  the  ethanol 
content  in  grapevine  products  referred  to  in  points  1  and  4  to  9  of  Part  II  of 
Annex VII:  

(a) 

partial vacuum evaporation; 

(b)  membrane techniques; 

(c) 

distillation.  

The  dealcoholisation  processes  shall  not  result  in  organoleptic  defects  of  the 
grapevine product. The elimination of ethanol in grapevine product must not be 
done in conjunction with the increase of the sugar content in the grape must.'. 

Article 2 
Amendments to Regulation (EU) No 1151/2012 

Regulation (EU) No 1151/2012 is amended as follows:  

(1) 

in Article 2, paragraphs 2 and 3 are replaced by the following:  

'2.  This  Regulation  shall  not  apply  to  spirit  drinks  or  grapevine  products  as 
defined  in  Part  II  of  Annex  VII  to  Regulation  (EU)  No  1308/2013,  with  the 
exception of wine-vinegars.  

3. 

This Regulation, and in particular the registrations made pursuant to Article 52, 
shall  be  without  prejudice  to  compliance  of  products  concerned  with  other 
Union  rules  relating  in  particular  to  the  placing  of  products  on  the  market, 
marketing and to food labelling.;  

(2) 

in paragraph 1 of Article 5, point (b) is replaced by the following:  

'(b)  whose  quality  or  characteristics  are  essentially  or  exclusively  due  to  a 
particular  geographical  environment,  with  its  inherent  natural  factors  and 
where relevant human factors;'; 

(3) 

(4) 

in paragraph 1 of Article 7, point (d) is deleted;  

in paragraph 1 of Article 10, the introductory sentence is replaced by the following:  

' 

A  reasoned  statement  of  opposition  as  referred  to  in  Article  51(1)  shall  be 
admissible only if it is received by the Commission within the time limit set out 
in that paragraph and if it:';  

(5) 

in Article 13, the following paragraph 4 is added:  

'4.  The protection referred to in paragraph 1 shall also apply with regard to goods 
entering  the  customs  territory  of  the  Union  without  being  released  for  free 
circulation within the customs territory of the Union and with regard to goods 
sold through means of electronic commerce.';  

EN 

31 

  EN 

 
(6) 

Article 15 is amended as follows:  

(a) 

in paragraph 1, the second subparagraph is replaced by the following:  

'Those  implementing  acts  shall  be  adopted  without  applying  the 
examination procedure referred to in Article 57(2).'; 

(b) 

in paragraph 2, the introductory sentence is replaced by the following:  

'Without prejudice to Article 14, the Commission may adopt implementing acts 
extending  the  transitional  period  mentioned  in  paragraph  1  of  this  Article  in 
justified cases where it is shown that:';  

(7) 

the following Article 16a is inserted:  

 'Article 16a 
Existing geographical indications for aromatised wine products 

Names entered in the register established pursuant to Article 21 of Regulation (EU) 
No 251/2014 of the European Parliament and of the Council* shall automatically 
be  entered  in  the  register  referred  to  in  Article  11  of  this  Regulation.  The 
corresponding  specifications  shall  be  deemed  to  be  the  specifications  for  the 
purposes of Article 7 of this Regulation. 

* 

Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 
2014 on the definition, description, presentation, labelling and the protection of geographical 
indications of aromatised wine products and repealing Council Regulation (EEC) No 1601/91 
(OJ L 84, 20.3.2014, p. 14).'; 

(8) 

in paragraph 1 of Article 21, the introductory sentence is replaced by the following:  

'A reasoned statement of opposition as referred to in Article 51(1) shall be admissible 
only if it is received by the Commission before expiry of the time limit and if it:';  

(9) 

the following Article 24a is inserted:  

 'Article 24a 
Transitional periods for use of traditional specialities guaranteed 

The Commission may adopt implementing acts granting a transitional period of up to 
five years to enable products the designation of which consists of or contains a name 
that  contravenes  Article  24(1)  to  continue  to  use  the  designation  under  which  they 
were marketed on condition that an admissible statement of opposition under Article 
49(3) or Article 51 shows that such name has been legally used on the Union market 
for at least five years preceding the date of the publication provided for in point (a) 
of Article 50(2). 

Those  implementing  acts  shall  be  adopted  without  applying  the  examination 
procedure referred to in Article 57(2).'; 

(10) 

in Article 49, the following paragraphs 8 and 9 are added: 

'8.  The Member State shall inform the Commission without delay if any procedure 
is  initiated  before  a  national  court  or  other  national  body  concerning  an 
application lodged with the Commission, in accordance with paragraph 4. 

9.  Where appropriate, the Commission may adopt implementing acts to suspend 
the scrutiny of the application for registration referred to in Article 50 until a 
national  court  or  other  national  body  has  adjudicated  on  a  challenge  to  an 

EN 

32 

  EN 

 
application  for  registration  where  the  Member  State  has  taken  a  favourable 
decision in a national procedure in accordance with paragraph 4. 

Those  implementing  acts  shall  be  adopted  without  applying  the  examination 
procedure referred to in Article 57(2).';  

(11) 

Article 50 is replaced by the following:  

'Article 50 
Scrutiny by the Commission and publication for opposition  

1. 

The  Commission  shall  examine  applications  for  registration  that  it 
receives in accordance with Article 49(4) and (5). The Commission shall 
review  the  applications  for  manifest  errors,  taking  into  account  the 
outcome  of  the  scrutiny  and  opposition  procedure  carried  out  by  the 
Member State concerned.  

Scrutiny  by  the  Commission  should  not  exceed  a  period  of  six  months 
from the date of receipt of the application from the Member State. Where 
this  period  is  exceeded,  the  Commission  shall  inform  the  applicant  in 
writing of the reasons for the delay.  

The Commission shall, at least each month, publish the list of names for 
which  applications for registration have  been  submitted to  it, as  well as 
the date of their submission. 

2.  Where,  based  on  the  scrutiny  carried  out  pursuant  to  paragraph  1,  the 
Commission considers that the conditions laid down in Articles 5 and 6 
are fulfilled as regards registration applications under the scheme set out 
in  Title II, or  that  the  conditions  laid  down  in  Article  18(1)  and (2)  are 
fulfilled  as  regards  applications  under  the  scheme  set  out  in  Title  III,  it 
shall publish in the Official Journal of the European Union: 

(a) 

for  applications  under  the  scheme  set  out  in  Title  II,  the  single 
document  and  the  reference  to  the  publication  of  the  product 
specification; 

(b) 

for  applications  under  the  scheme  set  out  in  Title  III,  the 
specification.'; 

(12) 

Article 51 is amended as follows:  

(a)  paragraph 1 is replaced by the following:  

'1.  Within three months from the date of publication in the Official Journal 
of  the  European  Union,  the  authorities  of  a  Member  State  or  of  a  third 
country,  or  a  natural  or  a  legal  person  having  a  legitimate  interest  and 
established  in  a  third  country  may  lodge  a  reasoned  statement  of 
opposition with the Commission. 

A  natural  or  a  legal  person  having  a  legitimate  interest,  established  or 
resident  in  a  Member  State  other  than  that  from  which  the  application 
was  submitted,  may  lodge  a  reasoned  statement  of  opposition  with  the 
Member  State  in  which  it  is  resident  or  established  within  a  time  limit 
permitting an opposition to be lodged pursuant to the first subparagraph.';  

(b)  paragraph 2 is replaced by the following:  

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33 

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'2.  The  Commission  shall  examine  the  admissibility  of  the  reasoned 
statement of opposition based in particular on grounds of opposition laid 
down  in  Article  10  as  regards  protected  designations  of  origin  and 
protected geographical indications and based in particular on the grounds 
for  opposition  laid  down  in  Article  21  as  regards  traditional  specialities 
guaranteed.';  

(c)  paragraph 3 is replaced by the following:  

'3. 

If the Commission considers that the reasoned statement of opposition is 
admissible it shall, within five months from the date of publication of the 
application  in  the  Official  Journal  of  the  European  Union,  invite  the 
authority or person that lodged the reasoned statement of opposition and 
the authority or body that lodged the application with the Commission to 
engage in appropriate consultations for a reasonable period that shall not 
exceed three months.  

The authority or person that lodged the reasoned statement of opposition 
and  the  authority  or  body  that  lodged  the  application  shall  start  such 
appropriate  consultations  without  undue  delay.  They  shall  provide  each 
other with the relevant information to assess whether the application for 
registration complies with the conditions laid down in this Regulation. If 
no  agreement  is  reached,  this  information  shall  be  provided  to  the 
Commission. 

At any time within the period of consultations, the Commission may, at 
the request of the applicant extend the deadline for the consultations by a 
maximum of three months.'; 

(d)  paragraph 5 is replaced by the following: 

'5.   The  reasoned  statement  of  opposition  and  other  documents  which  are 
sent to the Commission in accordance with paragraphs 1, 2 and 3 shall be 
in one of the official languages of the Union.';  

(13) 

in Article 52, paragraph 2 is replaced by the following:  

'2. 

If  the  Commission  receives  no  admissible  reasoned  statement  of  opposition 
under  Article  51,  it  shall  adopt  implementing  acts,  without  applying  the 
examination procedure referred to in Article 57(2), registering the name.';  

(14) 

in Article 53, paragraphs 2 and 3 are replaced by the following:  

'2.  Amendments  to  a  product  specification  are  classified  into  two  categories  as 
regards 
importance:  Union  amendments,  requiring  an  opposition 
procedure  at  the  Union  level  and  standard  amendments  to  be  dealt  with  at 
Member State or third country level. 

their 

An amendment is considered to be a Union amendment where: 

(a) 

(b) 

it  includes  a  change  in  the  name  of  the  protected  designation  of  origin, 
protected geographical indication or traditional speciality guaranteed; 

it  risks  to  void  the  links  referred  to  in  point  (b)  of  Article  5(1)  for 
protected  designations  of  origin  and  of  Article  5(2)  for  protected 
geographical indications;  

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34 

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(c) 

it  introduces  changes  to  the  production  method  or  to  the  use  of  raw 
materials  and  ingredients  that  deviate  from  the  traditional  practice  and 
uses for traditional specialities guaranteed;   

(d) 

it entails new restrictions on the marketing of the product. 

All  other  amendments  to  product  specifications  are  considered  standard 
amendments. A temporary amendment that concerns a temporary change in the 
product  specification  resulting  from  the  imposition  of  obligatory  sanitary  and 
phytosanitary  measures  by  the  public  authorities  or  a  temporary  amendment 
necessary because of a natural disaster or adverse weather conditions formally 
recognised  by  the  competent  authorities  are  also  considered  to  be  standard 
amendments.  

Union  amendments  shall  be  approved  by  the  Commission.  The  approval 
procedure  shall  follow,  mutatis  mutandis,  the  procedure  laid  down  in 
Articles 49 to 52.  

Standard  amendments  shall  be  approved  by  the  Member  State  in  whose 
territory the geographical area of the product concerned is located and notified 
to  the  Commission.  Third  countries  shall  approve  standard  amendments  in 
accordance  with  the  law  applicable  in  the  third  country  concerned  and  notify 
them to the Commission. 

Amendments  shall  be  scrutinised  taking  into  account  other  elements  of  the 
product  specifications.  Where  appropriate,  the  Commission  or  the  Member 
State  concerned  may  invite  the  applicant  to  modify  other  elements  of  the 
product specifications. 

3. 

In  order  to  facilitate  the  administrative  process  of  Union  and  standard 
amendments to product specification, including where the amendment does not 
involve  any  change  to  the  single  document,  the  Commission  shall  be 
empowered 
in  accordance  with  Article  56, 
complementing the rules of the amendment application process. 

to  adopt  delegated  acts, 

The Commission may adopt implementing acts laying down detailed rules on 
procedures,  form  and  presentation  of  an  amendment  application  and 
notification of standard amendments to the Commission. Those implementing 
acts shall be adopted in accordance with the examination procedure referred to 
in Article 57(2).'; 

(15) 

in Point I of Annex I, the following indents are added:  

'- 

- 

aromatised wines as defined in Article 3(2) of Regulation (EU) No 251/2014;  

other  alcoholic  beverages,  except  for  spirit  drinks  and  grapevine  products  as 
defined in Part II of Annex VII to Regulation (EU) No 1308/2013.'.  

Article 3 
Amendments to Regulation (EU) No 251/2014 

(1) 

the title is replaced by the following:  

'Regulation (EU) No 251/2014 of the European Parliament and of the Council of 
26  February  2014  on  the  definition,  description,  presentation  and  labelling  of 
aromatised wine products and repealing Council Regulation (EEC) No 1601/91' 

(2) 

in Article 1, paragraph 1 is replaced by the following:  

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'1.  This Regulation lays down rules on the definition, description, presentation and 

labelling of aromatised wine products.'; 

in Article 2, point 3 is deleted; 

in Article 5, paragraph 4 is replaced by the following:  

(3) 

(4) 

'4. 

Sales  denominations  may  be  supplemented  or  replaced  by  a  geographical 
indication  of  aromatised  wine  product  protected  under  Regulation  (EU)  No 
1151/2012. 

(5) 

in Article 8, paragraph 2 is replaced by the following:  

'2.  The name of the geographical indication of aromatised wine product protected 
under Regulation (EU) No 1151/2012 shall appear on the label in the language 
or languages in which it is registered, even where the geographical indication 
replaces  the  sales  denomination  in  accordance  with  Article  5(4)  of  this 
Regulation. 

Where  the  name  of  a  geographical  indication  of  aromatised  wine  product 
protected  under  Regulation  (EU)  No  1151/2012  is  written  in  a  non-Latin 
alphabet,  it  may  also  appear  in  one  or  more  of  the  official  languages  of  the 
Union.'; 

(6) 

(7) 

Article 9 is deleted; 

Chapter III is deleted. 

Article 4 
Amendment to Regulation (EU) No 228/2013 

In Article 30, paragraphs 2 and 3 are replaced by the following:  

'2. In respect of each financial year, the Union shall finance the measures provided 
for in Chapters III and IV, up to a maximum annual sum of: 

- 

- 

- 

in the French overseas departments:    

EUR 267 580 000 

Azores and Madeira:   

Canary Islands: 

EUR 102 080 000 

EUR 257 970 000 

3.  The  sums  for  each  financial  year  to  finance  the  measures  provided  for  in 
Chapter III may not exceed the following amounts:  

- 

- 

- 

in the French overseas departments:    

EUR 25 900 000 

Azores and Madeira:   

Canary Islands: 

EUR 20 400 000 

EUR 69 900 000 

The  Commission  shall  adopt  implementing  acts  establishing  the  requirements  in 
accordance  with  which  Member  States  may  amend  the  allocation  of  resources 
allocated every year to the various products benefiting from the supply arrangements. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 34(2).'. 

Article 5 
Amendment to Regulation (EU) No 229/2013 

In Article 18, paragraphs 2 and 3 are replaced by the following:  

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36 

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'2. The Union shall finance the measures provided for in Chapters III and IV up to a 
maximum amount of EUR 23 000 000.  

3.  The  amount  allocated  to  finance  the  specific  supply  arrangements  referred  to  in 
Chapter III shall not exceed EUR 6 830 000.' 

Article 6 
Transitional provisions 

1. 

2. 

3. 

The  rules  applicable  before  the  date  of  entry  into  force  of  this  Regulation  shall 
continue  to  apply  to  applications  for  protection  of  designations  of  origin  or 
geographical  indications  received  by  the  Commission  pursuant  to  Regulation  (EU) 
No  1308/2013  before  the  date  of  entry  into  force  of  this  Regulation  and  to 
applications  for  registration  of  protected  designations  of  origin,  protected 
geographical  indications  or  traditional  specialities  guaranteed  received  by  the 
Commission pursuant to Regulation (EU) No 1151/2012 before the date of entry into 
force of this Regulation. 

The  rules  applicable  before  the  date  of  entry  into  force  of  this  Regulation  shall 
continue  to  apply  to  applications  for  protection  of  names  of  aromatised  wines  as 
geographical indication received by the Commission pursuant to Regulation (EU) No 
251/2014  before  the  date  of  entry  into  force  of  this  Regulation.  However,  the 
decision on registration shall be adopted pursuant to Article 52 of Regulation (EU) 
No 1151/2012 as amended by point (13) of Article 2 of this Regulation.  

Articles  29 to  60 of  Regulation (EU) No 1308/2013  shall continue to apply after 1 
January 2021 as regards expenditure incurred before 1 January 2021 within the aid 
schemes referred to in those Articles.  

Article 7 
Entry into force and application 

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

Points (1)(b),  (4), (8), (17), (22), (27), (28) and (31) of Article 1 and Articles 4 and 5 shall 
apply from 1 January 2021. 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Grounds for the proposal/initiative  

1.5.  Duration and financial impact  

1.6.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on appropriations of an administrative nature 

3.2.3. Third-party contributions  

3.3.  Estimated impact on revenue

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1. 

FRAMEWORK OF THE PROPOSAL  

1.1. 

Title of the proposal  

a) Proposal for a Regulation of the European Parliament and of the Council on the financing, 
management  and  monitoring  of  the  common  agricultural  policy  and  repealing  Regulation 
(EU) No 1306/2013; 

b) Proposal for a Regulation of the European Parliament and of the Council establishing rules 
on  support  for  strategic  plans  to  be  drawn  up  by  Member  States  under  the  Common 
agricultural  policy  (CAP  Strategic  Plans)  and  financed  by  the  European  Agricultural 
Guarantee  Fund  (EAGF)  and  by  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD)  and  repealing  Regulation  (EU)  No  1305/2013  of  the  European  Parliament  and  of 
the  Council  and  Regulation  (EU)  No  1307/2013  of  the  European  Parliament  and  of  the 
Council; 

c)  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Regulations  (EU)  No  1308/2013  establishing  a  common  organisation  of  the  markets  in 
agricultural  products,  (EU)  No  1151/2012  on  quality  schemes  for  agricultural  products  and 
foodstuffs,  (EU)  No  251/2014  on  the  definition,  description,  presentation,  labelling  and  the 
protection of geographical indications of aromatised wine products, (EU) No 228/2013 laying 
down  specific  measures  for  agriculture  in  the  outermost  regions  of  the  Union  and  (EU)  No 
229/2013  laying  down  specific  measures  for  agriculture  in  favour  of  the  smaller  Aegean 
islands. 

1.2. 

Policy area(s) concerned (Programme cluster) 

Programme  cluster  8  -  Agriculture  &  Maritime  Policy  under  Heading  3  of  the 
Multiannual  Financial  Framework  (MFF)  2021-2027  –  Natural  Resources  and 
Environment 

1.3. 

The proposal/initiative relates to:  
 a new action following a pilot project/preparatory action22  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Grounds for the proposal/initiative  

1.4.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The objectives of the Common Agricultural Policy (CAP), set out in Article 39 of the 
Treaty on the Functioning of the European Union, aim at: 
(a)  increasing  agricultural  productivity  (including  through  technical  progress  and 
optimum usage of the factors of production); 
(b) thus ensuring a fair standard of living for the agricultural community (including 
by increasing earnings); 
(c) stabilising markets; 
(d) ensuring the availability of supplies; and 
(e) ensuring that supplies reach consumers at reasonable prices. 

22 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

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2 

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Those are adjusted and articulated to the challenges mentioned in section 1.4.2 below 
in order to put the emphasis on the 10 Commission priorities for 2015-2019 and UN 
Sustainable Development Goals and in order to fulfil the above the proposals aiming 
to  lay  down  the  legislative  framework  for  the  Common  Agricultural  Policy  for  the 
period 2021-2027 – A simpler, smarter, modern and more sustainable CAP. 

1.4.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

The  cross-border  and  global  nature  of  key  challenges  faced  by  EU  agriculture  and 
rural  areas  require  a  common  policy  at  EU  level.  The  CAP  addresses  those 
challenges by: 

● securing a single market and level playing field via a common income safety net 
system of support that underpins food security and avoids potential distortions of 
competition; 

● shoring up EU farming sector resilience necessary to harness globalisation and 

●  delivering  on  key  dimensions  of  sustainability  challenges  like  climate  change, 
water use, air quality and biodiversity via the CAP environmental architecture. 

In  other  areas,  a  strong  EU-wide  dimension  needs  to  be  combined  with  more 
subsidiarity. These areas include food safety (e.g. harmonisation of standards), rural 
area  challenges  (with  big  gaps  in  rural  unemployment  existing  between  Member 
States), poor rural infrastructure and services, weaknesses in research and innovation, 
and problems related to food quality, public health and nutrition. An appropriate EU-
level  response  to  these  challenges  allows  more  effective  and  efficient  action  when 
combined with more flexibility at Member State level. 

1.4.3.  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. 

1.4.4.  Compatibility and possible synergy with other appropriate instruments 

Predominantly  as  regards  the  CAP,  significant  synergies  and  simplification  effects 
will  be  obtained  by  including  under  one  strategic  framework  of  the  CAP  Strategic 
Plan  the  implementation  of  interventions  financed  by  the  EAGF  and  EAFRD.  The 
structures  already  in  place  in  the  Member  States  shall  be  sustained  while 
management  and  control  rules  simplified  and  tailored  to  specific  interventions 
implemented by the Member States. 

The  CAP  maintains  strong  synergies  with  climate  and  environment  policies,  food 
safety  and  health-related  issues,  digital  agenda  in  rural  areas  and  bioeconomy, 
knowledge  and  innovation  enlargement  and  neighbourhood  policy,  trade  and 
development policies, Erasmus+.  

The  CAP  will  work  in  synergy  and  complementarity  with  other  EU  policies  and 
funds  such  as  actions  implemented  under  the  European  Structural  and  Investment 

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Funds, the InvestEU fund, the ninth Framework Programme for Research as well as 
environmental and climate-related policies. Where appropriate, common rules will be 
established in view of maximising consistency and complementarity between funds, 
while making sure that specificities of these policies are respected.  

Synergies with the Research Framework Programme (FP) will be secured in the FP9 
cluster on “Food and Natural Resources” whose objective is to make agriculture and 
food  systems  fully  safe,  sustainable,  resilient,  circular,  diverse  and  innovative.  The 
CAP  will  forge  even  stronger  links  to  EU  Research  and  Innovation  policy  by 
introducing bioeconomy as a priority for the CAP. Under the cluster on “Food and 
Natural  Resources”,  emphasis  is  also  given  to  reaping  the  benefits  of  the  digital 
revolution,  so  Research  and  Innovation  activities  will  contribute  to  the  digital 
transformation of agriculture and rural areas. 

The legislative proposals concerned by this financial statement should be seen in the 
broader context of the proposal for the Common Provisions Regulation laying down 
a  single  framework  of  common  rules  for  funds  such  as  the  EAFRD,  the  European 
Regional  Development  Fund,  the  European  Social  Fund,  the  Cohesion  Fund,  the 
European  Maritime  and  Fisheries  Fund  and  others.  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. 

1.5. 

Duration and financial impact  

 limited duration  

–    in effect from 01/01/2021 to 31/12/2027 

–    Financial impact from 2021 to 2027 for commitment appropriations and from 

2021 to beyond 2027 for payment appropriations.  

 unlimited duration for Proposal for a Regulation of the European Parliament and 
of  the  Council  amending  Regulations  (EU)  No  1308/2013  establishing  a  common 
organisation of the markets in agricultural products, (EU) No 1151/2012 on quality 
schemes  for  agricultural  products  and  foodstuffs,  (EU)  No  251/2014  on  the 
definition,  description,  presentation,  labelling  and  the  protection  of  geographical 
indications  of  aromatised  wine  products,  (EU)  No  228/2013  laying  down  specific 
measures  for  agriculture  in  the  outermost  regions  of  the  Union  and  (EU)  No 
229/2013  laying  down  specific  measures  for  agriculture  in  favour  of  the  smaller 
Aegean islands 

–  Implementation as from 2021 (budget year). 

1.6.  Management mode(s) planned23  

 Direct management by the Commission 

–    by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

23 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

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–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

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

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

A  performance,  monitoring  and  evaluation  framework  shall  be  established  with  a 
view to: 

assess  the  impact,  effectiveness,  efficiency,  relevance,  coherence  and  EU 

(a) 
added value of the CAP; 

(b) 

set milestones and targets for CAP Strategic Plans specific objectives; 

(c)  monitor progress made towards achieving the CAP Strategic Plan targets;  

assess  the  impact,  effectiveness,  efficiency,  relevance  and  coherence  of  the 

(d) 
CAP Strategic Plans interventions; 

(e) 

support a common learning process related to monitoring and evaluation. 

The  Managing  Authority  and  the  Monitoring  Committee  will  monitor  the 
implementation  of  the  CAP  Strategic  Plan  and  progress  made  towards  achieving 
CAP Strategic Plan targets. 

Annual performance reports  

By 15 February  2023 and 15 February of each subsequent year until and including 
2030, Member States shall submit to the Commission annual performance reports on 
the implementation of the CAP Strategic Plan in the previous financial year. These 
reports shall set out key qualitative and quantitative information on implementation 
of the CAP Strategic Plan by reference to financial data, output and result indicators. 
They  shall  also  include  information  about  realised  outputs,  realised  expenditure, 
realised results and distance to respective targets.  

The data transmitted shall relate to achieved values for indicators for partial and fully 
implemented  interventions.  They  shall  also  set  out  a  synthesis  of  the  state  of 
implementation of the CAP Strategic Plan realised during the previous financial year, 
any issues which affect the performance of the CAP Strategic Plan, in particular as 
regards  deviations  from  milestones,  underlining  reasons  and,  where  relevant,  the 
measures taken.  

The  Commission  shall  carry  out  an  Annual  Performance  Review  and  an  Annual 
Performance  Clearance  based  on 
the  Annual 
Performance reports. 

information  provided 

the 

in 

CAP strategic Plan evaluation 

Member  States  shall  carry  out  ex  ante  evaluations,  including  an  analysis  of  the 
strength,  weaknesses,  opportunities  and  threats  relevant  for  the  CAP  Strategic  Plan 
concerned in order to identify the needs to be addressed by the CAP Strategic Plan.  

Evaluations  of  CAP  Strategic  Plans  shall  be  carried  out  by  the  Member  States  to 
improve the quality of the design and implementation of plans, as well as to assess 
their effectiveness, efficiency,  relevance, coherence,  EU added  value and impact in 
relation to their contribution to the CAP general and specific objectives. 

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Performance assessment by the Commission 

The  Commission  shall  establish  a  multiannual  evaluation  plan  of  the  CAP  to  be 
carried out under the responsibility of the Commission.  

The  Commission  shall  carry  out  an interim  evaluationto  examine  the  effectiveness, 
efficiency,  relevance,  coherence  and  EU  added  value  of  the  Funds  taking  into 
account the indicators set out in Annex VII. The Commission  may  make use of all 
relevant  information  already  available  in  accordance  with  Article  128  of  Financial 
Regulation. 

The  Commission  shall  carry  out  a  retrospective  evaluation  to  examine  the 
effectiveness, efficiency, relevance, coherence and EU added value of the Funds. 

Based  on  evidence  provided  in  evaluations  on  the  CAP,  including  evaluations  on 
CAP Strategic Plans, as well as other relevant information sources, the Commission 
shall  present  an  initial  report  on  the  implementation  of  this  Article,  including  first 
results on the performance of the CAP, to the European Parliament and the Council 
by 31 December 2025. A second report including an assessment of the performance 
of the CAP shall be presented by 31 December 2031. 

Reporting based on a core set of indicators 

The  information  provided  by  the  Member  States  is  the  basis  on  which  the 
Commission  shall  report  on  the  progress  towards  the  achievement  of  specific 
objectives  over  the  whole  programming  period  using  for  this  purpose  a  core  set  of 
indicators. 

In  compliance  with  its  reporting  requirement  pursuant  to  Article  38(3)(e)(i)  of  the 
Financial Regulation, the Commission shall present to the European Parliament and 
the Council the performance information referred to in that Article measured by the 
core set of indicators.  

2.2.  Management and control system(s)  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

The CAP is primarily implemented in shared management with the Member States. 
The  existing  governance  bodies  set  up  in  the  Member  States,  notably  the  paying 
agencies  and  certification  bodies,  have  shown  their  effectiveness  in  protecting  the 
EU  budget  and  ensuring  sound  financial  management.  The  steady  low  error  rate 
levels under the CAP in the most recent years show that the management and control 
systems  set  up  by  the  Member  States  function  properly  and  provide  reasonable 
assurance. 

The  new  delivery  model  under  the  CAP  acknowledges  this  situation  by  conferring 
more subsidiarity on Member States in deciding and managing the control systems in 
place  within  a  more  general  set  of  rules  at  the  level  of  the  Union.  Moreover, 
following  the  strategy  on  budgeting  focused  on  results  and  performance  oriented 
payments, the CAP will link the eligibility of the payments to the actual delivery on 
the  ground.  Performance  is  therefore  at  the  heart  of  the  financial  management  and 
assurance model in the legislative proposals for the CAP post 2020. 

The  control  strategy  for  the  new  period  will  be  fully  in  line  with  the  single  audit 
approach,  ensuring  that  accredited paying  agencies  and  certification  bodies  provide 
the  necessary  assurance.  The  Commission  will  pay  particular  attention  to  the 

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effective  functioning  of  the  governance  systems  in  place  and  the  reliability  of  the 
performance  reporting.  As  currently,  there  will  be  an  audit  strategy  drafted  at  the 
beginning of the period and a multi-annual working programme.   

To summarize, the Commission will ensure that the governance systems set up in the 
Member States are functioning effectively, will reimburse the payments incurred by 
the  accredited  paying  agencies  and  will  carry  out  annual  performance  clearance 
assessing the achieved outputs reported by the Member States. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

There are more than seven million beneficiaries of the CAP, receiving support under 
a large variety of different aid schemes. The downward trend in the reduction of the 
error  rate  in  the  domain  of  the  CAP  shows  robust  and  reliable  management  and 
control systems in the paying agencies. 

The CAP has been implemented so far through detailed eligibility rules at the level 
of the beneficiary which added complexity, administrative burden and risk of error. 
The costs of the management and control system, in order to mitigate this risk, have 
been considered as somewhat disproportionate.   

The legislative package for the CAP post 2020 reduces substantially the compliance 
element, increasing the focus on performance. Obligations stemming from EU rules 
are  to  be  fulfilled  by  Member  States  who  then  should  put  in  place  the  appropriate 
management and control system. Member States will have more flexibility to design 
the schemes and measures that better fit their concrete realities. Therefore, the CAP 
funding  will  be  conditioned  to  a  strategic  delivery  of  the  policy  towards  common 
objectives  defined  at  EU  level.  The  CAP  Plan  will  be  the  agreement  between  the 
Member  States  and  the  Commission  whereby  the  strategy  for  7  years,  targets, 
interventions and planned expenditure are laid down and approved. 

The proposal for the regulation on the financing, management and monitoring of the 
common  agricultural  policy  adapts  the  current  set  up  to  this  new  delivery  model, 
while  maintaining  the  well-functioning  governance  bodies  (paying  agencies  and 
certification bodies). As in the current situation, every year the head of each paying 
agency  is  required  to  provide  a  management  declaration  which  covers  the 
completeness,  accuracy  and  veracity  of  the  accounts,  the  proper  functioning  of  the 
governance  structures,  including  fulfilment  of  EU  basic  requirements,  and  the 
reliability  of  the  performance  reporting.  An  independent  audit  body  (Certification 
Body) is required to provide an opinion on these elements. 

Expenditure  will  be  reduced  if  the  Member  State  has  not  delivered  outputs  to  the 
agreed standards. Compliance audits will still be carried out to assess the functioning 
of  the  governance  structures.  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,  in  accordance  with  the  single  audit  principle. 
Furthermore,  there  are  clear  mechanisms  for  suspensions  of  payments  for  cases  of 
serious  deficiencies  in  the  governance  structures  or  significant  underperformance 
trends.  

The  main  risk  envisaged  for  the  new  period  is  that  the  alleviation  of  concrete  and 
detailed  rules  on  how  the  management  and  control  system  in  the  Member  State 
should  be  established  at  the  level  of  the  paying  agencies  may  have  a  reputational 

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impact  for  the  Commission  in  cases  where  eligibility  rules  established  by  the 
Member  States  are  not  respected.  It  should  be  stressed  that  the  Commission  will 
ensure  that  governance  systems  are  in  place  and  outputs  and  results  are  being 
achieved. In the spirit of budgeting focused on results, the Commission will put the 
focus to what the policy delivers.  

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  

The new delivery model for the CAP is expected to significantly reduce the cost of 
controls, both for Member States and beneficiaries. 

The EU level requirements have been significantly reduced and they have been set at 
the  level  of  the  Member  States,  who  should  use  this  opportunity  to  adapt  the 
obligations  to  be  fulfilled  by  beneficiaries  to  the  concrete  national  or  regional 
circumstances.  

Member States will define the management and control system within the simplified 
EU  framework  defined  in  the  legislative  proposals.  The  Integrated  Administration 
and Control System (IACS), accountable for roughly 88% of the CAP payments, is 
maintained  although  specific  elements,  so  far  defined  at  EU  level,  will  be  left  to 
Member  States.  Therefore,  intensity  and  scope  of  controls  which  is  the  main  cost 
driver is no longer defined at EU level.  

The focus on performance requires a robust and reliable reporting system, which as 
mentioned  in  previous  sections,  will  be  subjet  to  independent  audits.  It  is  not 
expected though that this has a significant impact on the administrative burden of the 
Member  States,  since  most  of  the  output  indicators  are  already  available  in  the 
accredited paying agencies.  

The  Member  States  have  the  potential  to  simplify  and  reduce  the  administrative 
burden linked to the management and control of the CAP, since they will be able to 
tailor eligibility rules at beneficiary level and decide most suitable way to control (no 
one-size-fits-all).  As  stated  in  the  Impact  Assessment  accompanying  the  CAP 
legislative proposals, chapter on simplification, the delivery costs for the new CAP 
are not expected to be higher (currently at 3.6%), even when taking into account the 
enhanced focus on performance reporting.  

As  regards  the  expected  level  of  errors,  according  to  the  new  delivery  model,  the 
eligibility  of  the  expenditure  is  assessed  in  terms  of  outputs  achieved.  Therefore, 
errors  would  not  be  calculated  in  respect  to  legality  and  regularity  of  individual 
transactions but on the level of outputs achieved in relationship with the expenditure 
reimbursed. The expenditure which has not a corresponding output will be reduced in 
the  framewok  of  the  annual  performance  clearance,  so  the  EU  budget  remains 
protected.  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

The  legislative  package  envisages  that  Member  States  shall  ensure  effective 
prevention  against  fraud,  especially  in  the  areas  with  a  higher  level  of  risk, 
preventing,  detecting  and  correcting  irregularities  and  fraud.  Member  States  must 

EN 

9 

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impose  effective,  dissuasive  and  proportionate  penalties  as  laid  down  in  Union 
legislation or national law, and recover any irregular payments plus interests.  

These  EU  basic  requirements  are  part  of  the  governance  structures  that  will  be 
audited  by  the  Certification  Bodies  and  on  a  risk-based  approach,  also  by  the 
Commission following the single audit principle.  

Details will be addressed, as appropriate, in a revised AGRI Anti-fraud Strategy. It is 
however not expected that the typology of fraud and other serious irregularities will 
substantially change in the future compared to the status quo. 

The  current  approach  of  delivering  targeted  training  to  Member  States  on  the 
prevention, detection and correction of fraud and other serious irregularities is likely 
to be extended onto the future CAP. The same applies to thematic guidance notes for 
Member States on specific areas of high risk. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL  

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

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. 

As regards the market-related expenditure, it should be underlined that the amounts 
taken into account for market-related expenditure are based on the assumption of no 
public intervention buying-in and other measures related to a crisis situation in any 
sectors.  

A  new  agricultural  reserve  will  be  established  in  the  EAGF,  to  provide  additional 
support  for  the  agricultural  sector  for  the  purpose  of  safety-net  measures  in  the 
context of market management or stabilisation and/or in case of crises affecting the 
agricultural  production  or  distribution.  The  amount  of  the  reserve  will  be  at  least 
EUR 400 million at the beginning of each financial year. The unused amounts of the 
agricultural crisis reserve in financial year 2020 will be carried forward to financial 
year 2021 to set up the reserve; an annual roll-over of the unused amounts will apply 
in the period 2021-2027. In case the reserve is used, it will be re-filled using existing 
budgetary  availabilities  or  by  fresh  appropriations.  In  case  the  specific  EAGF  sub-
ceiling fixed in the MFF 2021-2027 is overshoot, the financial discipline will apply 
to  cover  all  needs  above  the  sub-ceiling,  including  those  for  refilling  the  reserve. 
Therefore, the repeated application of financial discipline for the purpose of setting 
up  the  reserve  is  not  foreseen  in  the  period  2021-2027.  The  financial  discipline 
mechanism  will  remain  for  the  purpose  of  ensuring  the  respect  of  the  EAGF  sub-
ceiling.  

As concerns direct payments types of interventions, the net ceilings for financial year 
2021  (calendar  year  2020)  set  by  Regulation  (EU)  No  1307/2013  of  the  European 
Parliament  and  of  the  Council,  are  higher  than  the  amounts  allocated  to  direct 
payments types of interventions indicated in the accompanying tables, consequently 
they  will  need  to  be  adjusted  in  line  with  the  final  agreement  on  the  CAP  financal 
envelope  within  the  deadlines  needed  for  timely  implementation  in  the  Member 
States.  

The proposal includes a continuation of the process of external convergence of direct 
payments:  Member  States  with  an  average  support  level  below  90%  of  the  EU 
average  will  close  50%  of  the  gap  to  90%  of  the  EU  average  in  6  gradual  steps 
starting in 2022. All Member States will contribute to financing this convergence. It 
is reflected in the Member States allocations for direct payments in Annex IV to the 
CAP Strategic Plans Regulation.  

The  impact  of  the  reduction  of  payments  inf  direct  support  to  farmers is  budgetary 
neutral  for  the  direct  payments  allocation,  as  the  product  of  the  reduction  of 
payments  will  be  used  to  finance  redistributive  payment  within  the  same  Member 
State. In case the product of the reduction of payments cannot be accomodated in the 
financing  of  direct  payments  types  of  interventions,  it  will  be  transferred  to  the 
EAFRD  allocation  of  the  Member  State  concerned.  The  amounts  of  such  possible 
transfer cannot be quantified at this stage. 

As  regards  the  revenue  assigned  to  the  EAGF,  the  estimate  reflects  the  effect  of 
granted deferrals and instalments on the past clearance decisions that will be cashed 

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11 

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in after 2020, and the estimated assigned revenue from clearance and irregularities to 
be collected. The latter is assumed to decrease compared to current levels following 
the introduction of the new delivery model.  

As  regards  the  EAFRD,  the  proposal  foresees  a  decrease  in  EU  co-financing  rates 
similarly to the other European Structural and Investment Funds. This together with 
the  allocation  for  the  EAFRD  types  of  interventions  will  allow  keeping  public 
support to European rural areas largely unchanged. The allocation between Member 
States is based on objective criteria and past performance.  

The reform proposals contain provisions giving Member States a degree of flexibility 
in relation to their allocation for direct payments types of interventions and for rural 
development  types  of  interventions,  as  well  as  between  the  allocation  for  direct 
payments  types  of  interventions  and  for  certain  sectorial  types  of  interventions.  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. 

3.1. 

Heading  of  the  multiannual  financial  framework  and  preliminary  list  of  new 
expenditure budget lines proposed24  

Budget line 

Heading of 
multiannual 
financial 
framework 

Heading 3:  
Natural Resources and Environment 

Type of  
expenditure 

Diff./Non-
diff.25 

Contribution  

from 
EFTA 
countries
26 

from 
candidate 
countries27 

from third 
countries 

within the 
meaning of 
Article [21(2)(b)] 
of the Financial 
Regulation  

3 

3 

3 

3 

3 

3 

3 

24 

25 
26 
27 

[08.01.YY] EAGF Non-operational 
technical assistance 

[08.01.YY] EAFRD Non-operational 
technical assistance 

Non-diff 

NO 

NO 

NO 

NO 

Non-dif 

NO 

NO 

NO 

[08.01.YY] Executive agencies 

Non-diff 

NO 

[08.02.YY] Agricultural reserve 

Non-diff 

NO 

NO 

NO 

NO 

NO 

[08.02.YY] Sectorial types of 
interventions under the CAP plan 

Non-diff 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

[08.02.YY] Market related 
expenditure outside the CAP plan 

Diff and 
non-diff 

NO 

NO 

NO 

NO 

[08.02.YY] Direct payments types of 
interventions under the CAP plan 

Non-diff 

NO 

NO 

NO 

NO 

A number of the existing budgetary lines is to be maintained and the numbering is to be adapted to the 
new budgetary nomenclature (e.g. current chapters 05 07 and 05 08). Following the development of the 
CAP proposal the nomenclature could be adjusted. 
Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans 

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12 

  EN 

 
 
 
 
                                                 
Budget line 

Heading of 
multiannual 
financial 
framework 

Heading 3:  
Natural Resources and Environment 

Type of  
expenditure 

Diff./Non-
diff.25 

Contribution  

from 
EFTA 
countries
26 

from 
candidate 
countries27 

from third 
countries 

within the 
meaning of 
Article [21(2)(b)] 
of the Financial 
Regulation  

3 

3 

3 

3 

7 

7 

7 

[08.02.YY] Direct payments outside 
the CAP plan 

Non-diff 

NO 

NO 

NO 

NO 

[08.02.YY] EAGF Operational 
technical assistance 

Diff and 
non-diff 

NO 

NO 

NO 

NO 

[08.03.YY] 2021-2027 rural 
development types of interventions 
under the CAP plan 

[08.03.YY] EAFRD Operational 
technical assistance 

[08.01.YY] Expenditure related to 
official and temporary agents in the 
‘Agriculture and rural development’ 
policy area 

[08.01.YY] External personnel and 
other management expenditure in 
support of the 'Agricultural and Rural 
Development' policy area 

[08.01.YY] Expenditure related to 
information and communication 
technology equipment and services of 
the 'Agricultural and Rural 
Development'  policy area 

Diff 

NO 

NO 

NO 

NO 

Diff 

NO 

NO 

NO 

NO 

Non-diff 

NO 

NO 

NO 

NO 

Non-diff 

NO 

NO 

NO 

NO 

Non-diff 

NO 

NO 

NO 

NO 

The list of budget items in the table above is preliminary and does not prejudge the concrete 
budget nomenclature that the Commission will propose in the context of the annual budgetary 
procedure.

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

3 

Natural Resources and Environment 

EUR million (with three decimal places) 

08 02 YY – Agricultual reserve 

Commitments = 
Payments 

08 02 YY – Sectoral types of 
interventions under the CAP plan 28 

Commitments = 
Payments 

08 02 YY - Market related expenditure 
outside the CAP plan 

08 02 YY – Direct payments types of 
interventions 

08 02 YY – Direct payments outside the 
CAP plan 

08 02 YY – EAGF operational technical 
assistance29 

Commitments 

Payments 

Commitments = 
Payments 

Commitments = 
Payments 

Commitments = 
Payments30 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 
2027 

TOTAL 

(1) 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

(2) 

2,044.116 

2,066.584 

2,091.060 

2,115.010 

2,139.737 

2,165.443 

2,192.347 

14,814.294 

(3) 

(4) 

638.309 

638.309 

638.309 

638.309 

638.309 

638.309 

638.309 

4,468.163 

605.136 

611.601 

623.808 

627.643 

629.770 

630.334 

630.314 

109.558 

4,468.164 

(5) 

37,392.689 

37,547.129 

37,686.679 

37,802.859 

37,919.038 

38,035.217 

38,151.396 

264,535.007 

(6) 

421.321 

421.321 

421.321 

421.321 

421.321 

421.321 

421.321 

2,949.249 

(7) 

71.000 

71.000 

71.000 

71.000 

71.000 

71.000 

71.000 

497.000 

28 

29 

30 

An increase in the Sectorial types of interventions under the CAP plan is explained by the allocation proposed for the support to the apiculture sector amounting to 
EUR 60 million, as well as the evolution of the expenditure in fruit and vegetables sector, which is not limited by an EU level envelope, following the observed past 
level of execution.  
Including also the amounts financed currently under chapters 05 07 (Audit of agricultural expenditure) and 05 08 (Policy strategy and coordination of the Agriculture 
and rural development policy area). 
For  simplification,  the  appropriations  for  EAGF  technical  assistance  are  here  considered  as  non-differenciated.  The  amount  of  RAL  tends  to  be  insignificant 
compared to the total amounts concerned by this financial statement. 

EN 

14 

EN 

 
 
 
 
 
 
 
  
  
 
                                                 
08 01 YY - Appropriations of an 
administrative nature financed from the 
EAGF31 
67 01 & 67 02 – Revenue assigned to 
the EAGF 

Commitments = 
Payments 

Commitments = 
Payments 

SUBTOTAL – EAGF 

Commitments 

Payments 

(8) 

(9) 

(10)=(1
+2+3+5
+6+7+8
-9) 

11)=(1+
2+4+5+
6+7+8-
9) 

13.000 

13.000 

13.000 

13.000 

13.000 

13.000 

13.000 

91.000 

280.000 

230.000 

130.000 

130.000 

130.000 

130.000 

130.000 

1,160.000 

40,300.435 

40,527.343 

40,791.369 

40,931.499 

41,072.405 

41,214.290 

41,357.373 

286,194.715 

40,267.262 

40,500.635 

40,776.868 

40,920.833 

41,063.866 

41,206.315 

41,349.378 

109.558 

286,194.715 

08 03 YY – Rural development types of 
interventions 

Commitments 

(12) 

11,230.561 

11,230.561 

11,230.561 

11,230.561 

11,230.561 

11,230.561 

11,230.561 

78,613.927 

Payments 

(13) 

786.139 

3,703.699 

6,314.312 

7,860.977 

9,356.414 

10,331.700 

11,025.236 

29,235.450 

78,613.927 

08 03 YY – EAFRD operational 
technical assistance EU 

08 01 YY - Appropriations of an 
administrative nature financed from the 
EAFRD 

SUBTOTAL – EAFRD 

Commitments = 
Payments32 

Commitments = 
Payments 

Commitments 

Payments 

(14) 

22.147 

22.147 

22.147 

22.147 

22.147 

22.147 

22.147 

155.029 

(15) 

6.000 

6.000 

6.000 

6.000 

6.000 

6.000 

6.000 

42.000 

(16)=(1
2+14+1
5) 

(17)=(1
3+14+1
5) 

11,258.708 

11,258.708 

11,258.708 

11,258.708 

11,258.708 

11,258.708 

11,258.708 

78,810.955 

814.286 

3,731.846 

6,342.459 

7,889.124 

9,384.561 

10,359.847 

11,053.383 

29,235.450 

78,810.955 

TOTAL appropriations for the 

Commitments 

=10+16 

51,559.143 

51,786.051 

52,050.077 

52,190.207 

52,331.113 

52,472.998 

52,616.081 

365,005.670 

31 

32 

EN 

Including  the  amounts  financed  currently  under  item  05  01  04  01  -  Support  expenditure  for  European  Agricultural  Guarantee  Fund  (EAGF)  -  Non-operational 
technical assistance and 05 01 06 01 - Consumer, Health, Agriculture and Food Executive Agency - Contribution from the agricultural promotion programme 
For  simplification,  the  appropriations  for  EAFRD  technical  assistance  are  here  considered  as  non-differenciated.  The  amount  of  RAL  tends  to  be  insignificant 
compared to the total amounts concerned by this financial statement. 

15 

EN 

 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
  
  
                                                 
CAP 

Payments 

=11+17 

41,081.548 

44,232.481 

47,119.327 

48,809.957 

50,448.427 

51,566.162 

52,402.761 

29,345.008 

365,005.670 

Totals do not tally due to rounding. 

EN 

16 

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Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 
2027 

TOTAL 

EUR million (with three decimal places) 

Human resources  
Other administrative expenditure  
TOTAL appropriations under HEADING 
7 of the multiannual financial framework 

Commitments  = 
Payments 

125.678 

125.678 

125.678 

125.678 

125.678 

125.678 

125.678 

6.008 

6.008 

6.008 

6.008 

6.008 

6.008 

6.008 

131.686 

131.686 

131.686 

131.686 

131.686 

131.686 

131.686 

879.746 

42.056 

921.802 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Post 
2027 

TOTAL 

EUR million (with three decimal places) 

Commitments 

51,690.829   51,917.737   52,181.763   52,321.893   52,462.799   52,604.684   52,747.767  

365,927.472 

Payments 

41,213.234 

44,364.167 

47,251.013 

48,941.643 

50,580.113 

51,697.848 

52,534.447 

29,345.008  

365,927.472 

TOTAL appropriations  
across HEADINGS  
of the multiannual financial framework  

Totals do not tally due to rounding. 

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3.2.2. 

Summary of estimated impact on appropriations of an administrative nature 

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Years 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

125.678 

125.678 

125.678 

125.678 

125.678 

125.678 

125.678 

879.746 

6.008 

6.008 

6.008 

6.008 

6.008 

6.008 

6.008 

42.056 

131.686 

131.686 

131.686 

131.686 

131.686 

131.686 

131.686 

921.802 

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 733 
of the multiannual 
financial framework  

Human resources  

1.850 

1.850 

1.850 

1.850 

1.850 

1.850 

1.850 

12.950 

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

17.150 

17.150 

17.150 

17.150 

17.150 

17.150 

17.150 

120.050 

19.000 

19.000 

19.000 

19.000 

19.000 

19.000 

19.000 

133.000 

Totals do not tally due to rounding. 

TOTAL 

150.686 

150.686 

150.686 

150.686 

150.686 

150.686 

150.686 

1 054.802 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that 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. 

33 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

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3.2.2.1.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

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

below: 

Estimate to be expressed in full time equivalent units 

Years 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

 Establishment plan posts (officials and temporary staff) 

Headquarters and Commission’s 
Representation Offices 

Delegations 

Research 

845 

3 

845 

3 

845 

3 

845 

3 

845 

3 

845 

3 

845 

3 

 External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED 34 
Heading 7 

- at Headquarters 

57.75 

57.75 

57.75 

57.75 

57.75 

57.75 

57.75 

Financed from 
HEADING 7 of 
the multiannual 
financial 
framework  

- in Delegations  

Financed from the 
envelope of the 
programme 35 

- at Headquarters 

- in Delegations  

Research 

Other (specify) 

TOTAL 

1 

29 

1 

29 

1 

29 

1 

29 

1 

29 

1 

29 

1 

29 

935.75 

935.75 

935.75 

935.75 

935.75 

935.75 

935.75 

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. 

34 

35 

AC=  Contract  Staff;  AL  =  Local  Staff;  END  =  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

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3.2.3.  Third-party contributions  

The proposal/initiative: 

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Years 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

TOTAL 

Appropriations in EUR million (to three decimal places) 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

–   on own resources  

–   on other revenue 

      please indicate, if the revenue is assigned to expenditure lines  

EUR million (to three decimal places) 

Impact of the proposal 

Budget revenue line: 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

67 01 & 67 02 

280 

230 

130 

130 

130 

130 

130 

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

08 02 YY – Sectoral types of interventions 

08 02 YY – Direct payments types of interventions 

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information). 

Please refer to comments under point 3 

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