Agenda 2000: financing of the common agricutural policy

OBJECTIVE: the proposed regulation forms part of the group of proposals on the reform of the common agricultural policy and translates the guidelines of Agenda 2000. It deals with the financing of the common agricultural policy. SUBSTANCE: taking into account the reorganization of the rural development policy (CNS98102) the codification procedure will not be pursued and a new financing regulation on the EAGGF will replace Regulation 729/70/EEC on the financing of the CAP with a view to consolidation and simplification of the legislation. In future, rural development measures will be financed by either the Guarantee section or the Guidance section of the EAGGF according to the regional context. Measures covered by Objective 1 programmes and the rural development Community Initiative will be financed by the Guidance Section of the EAGGF. Other rural development measures will be covered by the Guarantee section. These will be the accompanying measures and the LFA scheme in all rural areas as well as measures concerning modernization and diversification covered by Objective 2 programmes and by rural development programmes outside Objective 1 or 2 regions. In this framework specific financial rules will be introduced, in particular the possibility of advanced payment for rural development programmes. Moreover it will be clarified that the EAGGF Guarantee Section will also finance specific veterinary and plant health measures as well as information on the common agricultural policy. �