PURPOSE: to fix the adjustment rate provided for in
Regulation (EU) No 1306/2013 for direct payments in respect of the
calendar year 2017.
PROPOSED ACT: Regulation of the European Parliament
and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European
Parliament decides in accordance with the ordinary legislative
procedure and on an equal footing with the Council.
BACKGROUND: in accordance with Article 25 of Regulation
(EU) No 1306/2013 of the European Parliament and of the
Council, a reserve intended to provide additional support for the
agricultural sector in the case of major crises affecting the
agricultural production or distribution is to be established by
applying, at the beginning of each year, a reduction to direct
payments with the financial discipline mechanism referred to in
Article 26 of that Regulation.
According to this Regulation, the total amount of
the reserve for crises in agricultural sector shall be EUR 2 800
million with equal annual instalments of EUR 400 million (at
2011 prices) for the period 2014-2020 and shall be included under
Heading 2 of the Multiannual Financial Framework.
The amount of the reserve to be included in the
Commission 2018 Draft Budget amounts to EUR 459.5 million in
current prices. To cover that amount, the financial discipline
mechanism has to apply to direct payments under the support schemes
listed in Annex I to Regulation
(EU) No 1307/2013 of the European Parliament and of the Council
in respect of the calendar year 2017.
The preliminary forecasts for the direct payments and
market related expenditure to be determined in the Commission 2018
Draft Budget indicate that there is no need for any further
financial discipline.
On this basis of the above, the Commission presents a
proposal for setting the adjustment rate for direct payments in
respect of calendar year 2017, which is to be adopted by the
European Parliament and the Council by 30 June 2017.
CONTENT: this proposal implements the rules provided
for in Article 26 of Regulation (EU) No 1306/2013 and Article 8 of
Regulation (EU) No 1307/2013. It seeks to set the percentage
rate of the financial discipline adjustment rate in respect of
calendar year 2017.
The proposal provides that the amounts of direct
payments under the support schemes listed in Annex I to Regulation
(EU) No 1307/2013 to be granted to farmers in excess of EUR 2 000
for an aid application submitted in respect of the calendar year
2017 shall be reduced by an adjustment rate of 1.388149%.
The reduction shall not apply in Croatia.
BUDGETARY IMPLICATIONS: the calculation of the
financial discipline adjustment rate is part of the preparation of
the 2018 Draft Budget. Thus the total reduction resulting from the
application of financial discipline amounts to EUR 459.5 million.
The percentage of the financial discipline adjustment rate is
1.388149%.
The application of this adjustment rate will result in
the reduction of the amounts of direct payments for budget lines
covering expenditure relating to aid applications submitted by
farmers in respect of calendar year 2017 (financial year
2018).