Agricultural Fund for Rural Development (EAFRD): increased contribution rates for certain Member States

The European Parliament adopted by 600 votes to 22, with 77 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1698/2005 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability.

Parliament adopted its position at first reading under the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement negotiated between the European Parliament and the Council.

The amended text stresses that it is necessary to consider a temporary increase in co-financing rates in the context of the budgetary restraints facing all Member States and those budgetary restraints should be reflected appropriately in the Union budget. In addition, since the main purpose of the mechanism is to address specific current difficulties, its application should be limited to expenditure incurred by the paying agencies until 31 December 2013.

Due to the urgent need to address the economic crisis, this Regulation should enter into force immediately on publication.