Common agricultural policy (CAP): adjustment rate to direct payments in respect of the year 2013

The European Parliament adopted by 506 votes to 147, with 28 abstentions, a legislative resolution on the proposal for a Regulation of the European Parliament and of the Council on fixing an adjustment rate to direct payments provided for in Regulation (EC) No 73/2009 in respect of calendar year 2013.

The European Parliament’s position adopted at first reading under the ordinary legislative procedure amends the Commission’s proposal.

In its amendments, Parliament recalls that pending the adoption of a regulation laying down the multiannual financial framework (MFF), the level of the applicable ceiling for the year 2014 remains uncertain. Until there is clarity on the level of the applicable ceiling, it is not possible to determine whether an adjustment of the direct payments for 2013 is necessary and, if so, what the rate should be.

In this context, Parliament suggests an amendment that would bring the cut to direct payments to 0.748005%, rather than the 4.981759% put forward in the Commission’s proposal. This reduction shall not apply to the outermost regions or to the smaller Aegean islands, as defined in Regulation (EC) No 229/2013 of the European Parliament and of the Council.

Members add that in the event of non-agreement on the multiannual financial framework 2014-2020, no financial discipline for the 2014 financial year shall apply, since the total amount will be calculated on the basis of the 2013 budget figures, plus 2% inflation.

Parliament considers that the amount of financial discipline required should be revised by the budgetary authority in the framework of the adoption of the Budget 2014 on the basis, inter alia, of the Amending letter to the Draft General Budget 2014 by which the Commission provides updated estimated needs on market related expenditures and direct payments.