Voluntary modulation of direct payments under the common agricultural policy (CAP)

 The plenary held a debate on the Commission proposal laying down rules for voluntary modulation of direct payments provided for in Regulation N° 1782/2003 (direct support schemes under the common agricultural policy). In the course of the debate, MEPs outlined the main reasons why the proposal should be rejected, as advocated by the committee responsible (see summary dated 03/10/2006):

• the lack of any impact assessment, although the legal act would clearly have a substantial impact on farmers,
• the danger of discrimination against farmers within the EU, against which the proposal does not contain any precautions,
• the renationalisation of agricultural policy through the back door,
• certain aspects of the proposal which are unsatisfactory as far as budgetary and structural policy are concerned (particularly the omission of a co-financing requirement),
• the failure to involve Parliament in the preparation of such a far-reaching proposal, and
• the fact that the proposal on voluntary modulation largely prejudges the outcome of the 'Health Check' in 2008/2009 for the field of agriculture without involving Parliament as an equal partner in the discussion process, as provided for in the Interinstitutional Agreement on the Financial Perspective.

The following day, 14 November 2006, the plenary decided by 559 votes to 64, with 16 abstentions, to reject the proposal. As the Commission did not withdraw its proposal, the report was referred back to committee, in line with Parliament's Rules of Procedure.