Transcript The Health Check of CAP Reform: New Challenges

The Health Check of CAP Reform:
Addressing the New Challenges
with the second pillar of the CAP
Working Party on Agricultural Structures and Rural Development
July 10th 2008
DG for Agriculture and Rural Development
European Commission
Table of Contents
Introduction
i and ii
Health Check
iii
Technical adaptations
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (1/10)
a. Scope of the new challenges
What are the new challenges and how should they be addressed?
−
Decision/recital 3 and Regulation/recital 1, 2, 4: The “Health
Check” identified the following new challenges crucial for
European agriculture:
Climate change, renewable energies, water management and
biodiversity
–
Decision/recital 4: The CSG identify the support areas (key
actions) important for the realisation of the revised priorities
related to the new challenges.
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (2/10)
b. Types of operations related to the new challenges
Adjustment at the EU-level: Comm. Strategic Guidelines
–
Decision, point 2)

A new guideline on the new challenges is added.

European priorities related to the new challenges are up-dated
(e.g. curbing green house gas emissions and increasing carbon
sequestration in agriculture and forestry etc).
–
Additional resources available as of 2010 to be devoted to the new
challenges.
–
Focus of support on key actions (e.g. develop innovative and more
sustainable ways of biofuel processing).
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (3/10)
b. Types of operations related to the new challenges
Adjustment of the draft Council Regulation:
–
–
Reg. Article 16 a(1): RDPs shall provide for types of operations
related to the new challenges.
Annex II: A non-exhaustive list of indicative types of operations
falling into the scope of the NC.
Explanation: This list is non-exhaustive: Member States may
propose other types of operations if
1) they relate to the potential effects listed in Annex II, and
2) they are compatible with all rules for measures as defined by
Reg. 1698/2005 (e.g. eligibilty rules).
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (4/10)
b. Types of operations related to the new challenges
How to implement the proposal on the national level?
Recital 5/Decision and Recitals 5,6, 7 and 9/Regulation :
1.
2.
Following the review of the CSG each MS should revise its
National Strategy Plan to take up the revised European
priorities.
Operations related to the new challenges are to be
strengthened and set out in the rural development programs.
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (5/10)
c. Targeting and management of budgetary resources
With which financial resources?
–
Recitals 11 / 12: The financial resources from increased
compulsory modulation should be used for RD support.
–
Point 7/Regulation, Art. 69 (5a): An amount equal to the amounts
resulting from compulsory modulation shall be spent by MS:


between 1 Jan 2010 and 31 Dec 2015
for operations related to the new challenges approved after 1
Jan 2010.
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (6/10)
c. Targeting and management of budgetary resources
Which financial resources will be eligible under the NC?
Explanation: Expenditures for agri-environmental contracts
approved and spent after 1 Jan 2010 could be counted.
For contracts approved before 2010, the respective expenditures
made in 2010 and later may not be counted.
2007
2008
2009
2010
Spend
Spend
Spend
Spend
Approved
Approved
Approved
Approved
Non eligible
DG AGRI
Council WP, July 10th 2008
Eligible
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i
Meeting the new
challenges (7/10)
c. Targeting and management of budgetary resources
What if amount equal to compulsory modulation is not
spend on new challenges at closure?
–
Point 7/Regulation, Art. 69 (5b): If at closure the total amount
spent on the new challenges is lower than that from compulsory
modulation, the difference shall be reimbursed to the Community‘s
budget
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (8/10)
c. Targeting and management of budgetary resources
How will the expenditure on new challenges affect the
balance between axes?
–
Point 4/Regulation, Art. 17 (3): The amounts spent on the new
challenges shall not be taken into account when calculating the
minimum spending rates for each axis.
Explanation: A Member State which already has reached the
maximum spending rate for Axis 2 may use the additional funds
from compulsory modulation for further expenditures on Axis 2.
DG AGRI
Council WP, July 10th 2008
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i
Meeting the new
challenges (9/10)
c. Targeting and management of budgetary resources
Balance between axes: Example
Table: Additional amounts spend under HC will not affect the
balance between axes
Before Health
Check: 100 m€
After Health Check:
100 m€ + 30 m€
Average Extreme
case
Average
Extreme case
Axis 1
35
10
35+10= 45
10+ 0=
Axis 2
45
80
45+10= 55
80+30= 110
Axis 3
20
10
20+10= 30
10+0=
DG AGRI
Council WP, July 10th 2008
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Both cases
would be
compatible
with
provisions
on „minimum
spending
requirements
by axis“!!!
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i
Meeting the new
challenges (10/10)
d. Improving the effectiveness of the measure
How to provide additional incentives for up-take?
–
Reg. point 3/Art. 16 a(2): For investment related types of
operations the maximum aid intensity rates in Annex I may be
increased by 10 percentage points.
–
Reg. point 10 (b): For area-based payments the possibility to
exceed the upper amounts per ha for operations related to the
new challenges is established in the footnote to Annex 1.
–
“These amounts may be increased for the types of operations
mentioned in Article 16a of this Regulation … “
DG AGRI
Council WP, July 10th 2008
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ii
Practical Arrangements
(1/3)
a. Deadlines
When does the revised scheme enter into force?
–
Recital 8/Reg. Article 2: The amended Council Regulation
shall enter into force on 1 January 2009.
–
Reg. Article 1 point 2: A revised NSP shall be submitted at the
latest 3 months after adoption of the Council Decision on CSG.
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Council WP, July 10th 2008
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ii
Practical Arrangements
(2/3)
b. Content of the (revised) NSP and RDP
What has to be revised at the level of NSP?
–
Reg. Point 1: An indication of the amounts originating from
increased compulsory modulation that MS intend to spend for
new challenges shall be given.
Explanation: As regards contents of the revised NSP the
relevant provisions in Article 11 of Reg. (EC) 1698/2005
(e.g. analysis, strategy chosen, main quantified objectives
etc.) should be taken into account.
DG AGRI
Council WP, July 10th 2008
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ii
Practical Arrangements
(3/3)
b. Content of the (revised) NSP and RDP
What has to be revised at the level of RDP?
–
–
Recital 9: Adaptation of the RDPs in view of meeting the
revised obligations related to the new challenges.
Reg. point 3/Article 16a(3): Each RDP shall contain:

A list with the types of operations and measure description

A table on total Community contribution for new challenge
related types of operations (2010 to 2013)

These amounts will be counted against the additional
amount from compulsory modulation.
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Council WP, July 10th 2008
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iii
Technical Adaptations
(1/4)
a. Role of the Monitoring Committee
Clarify the role of the Monitoring Committee:
–
Reg. point 8: The MC shall consider and approve any
substantial proposals for changes in RDPs.
Explanation: In the past the MC did not have to be consulted
for program modifications which did not necessitate a
Commission decision. Therefore, certain sub-measures (e.g.
on organic farming) could be dropped without consulting the
MC. Following this revision the MC would need to be consulted
on such program modifications.
DG AGRI
Council WP, July 10th 2008
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iii
Technical Adaptations
(2/4)
b. Rules on Competition
Clarifying the procedures for state aid:
–
Recital 17: Clarification and harmonisation for the nonapplication of state aid rules established by the Treaty to
payments made by MS pursuant and in conformity with
EAFRD Regulation within the scope of Article 36 of the Treaty.
Explanation: This modification clarifies that all payments
under Article 36 (Community and national counterparts funds)
are exempted from state aid rules defined by the Treaty.
Additional national financing (top ups) are excluded from this
exemption.
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Council WP, July 10th 2008
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iii
Technical Adaptations
(3/4)
c. Cases of transfer of land
Aligning the rules on transfer of land with those
under the first pillar:
–
Recital 13 and Reg. point 5 : New rules on liability under
cross compliance in the case of transfer of land should be
introduced.
–
The term „transfer“ is defined: any type of transaction
whereby the land ceases to be at the disposal of the
transferor
–
Non-compliance related to non-agricultural activities (e.g.
sales activities) and non-agricultural areas (forestry) shall
not result in a reduction of payments
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Council WP, July 10th 2008
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iii
Technical Adaptations
(4/4)
c. Cases of non-application
Alligning the rules on reduction of payments with
those under the first pillar:
–
Recital 14 / 15/ Reg. point 5:
–
Exemptions from reduction of payments due to nonrespect of cross compliance should be defined: The
reductions shall not apply for standards for which a period
of grace has been granted.
–
A measure of tolerance for minor infringements : No
reduction if reduction or cancellation amounts to 100 € or
less per calendar year.
DG AGRI
Council WP, July 10th 2008
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Thank you for your attention!
DG AGRI
Council WP, July 10th 2008
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