Explanatory Memorandum to COM(2003)806 - Amendment of Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)

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dossier COM(2003)806 - Amendment of Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and ...
source COM(2003)806 EN
date 18-12-2003
The Act of Accession provided to the new Members States the measure 'Support for compliance with Community standards', financed under EAGGF Guarantee section, to adapt to standards established by the Community in the field of the environment; public, animal and plant health; animal welfare and occupational safety until such time as the required standard is due to be met.

This was intended to support farmers' efforts to reach EU standards during the transition period granted by giving them additional transfers to offset the costs of compliance.

The CAP reform introduced a general 'Meeting standards' measure intended to help farmers adapt to the operating costs resulting from newly introduced EU standards.

The Commission proposal on the Act of Accession adaptation to CAP reform transmitted on 29 October 2003 to the Council and European Parliament deletes the measure 'Compliance with Community standards' in order to avoid any overlap and to maintain the possibilities available to the new Member States under the new 'Meeting standards' measure.

However, the new Member states have allocated substantial amounts of their EAGGF-Guarantee rural development allocations to cover on-farm investment to adapt to Community standards in the field of environment, rather than providing for this expenditure out of their EAGGF Guidance allocations. Given the advanced state of the discussion concerning the use of Structural Funds resources it seems at this stage very difficult to increase them to support compliance with standards. However, speeding up compliance with Community standards, particularly in the field of environment, is a priority for the EU.

Therefore, a further derogation should be introduced to Council Regulation (EC) 1257/1999 to allow new Member States to take investment costs into account under certain conditions when determining the level of the annual support under the 'Meeting standards' measure.

This temporary derogation would be limited to the 2004-2006 programming period.

The proposed measure does not involve additional spending from the Community budget. It allows the implantation of the dispositions concerning the 'Meeting standards' in the new Member States. It will be financed within the envelopes 2004-2006 approved for the new Member States.