Explanatory Memorandum to COM(2011)855 - Amendment of Council Regulation (EC) No 1217/2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the EC

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1. Context of the proposal

· Grounds for and objectives of the proposal

To align the Commission implementing powers in Council Regulation (EC) No 1217/2009  i to the differentiation between delegated and implementing powers of the Commission introduced by Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFUE).

· General context

Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFUE) distinguish two different types of Commission acts:

– Article 290 of the TFUE allows the legislator to delegate to the Commission the power to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act. Legal acts adopted by the Commission in this way are referred to in the terminology used by the Treaty as 'delegated acts' (Article 290 i of the TFUE).

– Article 291 of the TFUE allows Member States to adopt all measures of national law necessary to implement legally binding Union acts. Those acts can confer implementing powers on the Commission where uniform conditions for implementing them are needed. Legal acts adopted by the Commission in this way are referred to in the terminology used by the Treaty as 'implementing acts' (Article 291 i of the TFUE).

· Existing provisions in the area of the proposal

Articles 290 and 291 of theTFUE.

· Consistency with the other policies and objectives of the Union

Not applicable.

2. Consultation of interested parties and impact assessment

· Consultation of interested parties

· Collection and use of expertise

· Impact assessment

There was no need for consultation of interested parties, collection and use of expertise or an impact assessment since the proposal to align Council Regulation (EC) No 1217/2009 to the Lisbon Treaty is an inter-institutional matter that will concern all Council Regulations. Furthermore, the amendments aiming at simplification and adaptation of Council Regulation (EC) No 1217/2009 in light of the experience gained with its application are of limited scope.

1.

Legal elements of the proposal



· Summary of the proposed action

Identify the delegated and implementing powers of the Commission in Council Regulation (EC) No 1217/2009 and establish the corresponding procedure for adoption of these acts.

Additionally, for the sake of simplification and in the light of the experience gained with the application of Council Regulation (EC) No 1217/2009, it is proposed that some of the provisions of that Regulation should be altered or deleted.

· Legal basis

Article 43 of the TFUE.

· Subsidiarity principle

Agricultural policy is of shared competence between the EU and the Member States. This means that as long as the EU does not legislate in the sector Member States maintain their competence. The Farm Accountancy Data Network (FADN) exists since 1965, and it is justified to simplify the current rules and adapt them in light of the experience gained with the application of Council Regulation (EC) No 1217/2009.

· Proportionality principle

The proposal complies with the proportionality principle.

· Choice of instruments

Proposed instrument: Regulation of the European Parliament and of the Council.

Other means would not be adequate for the following reason: a Regulation must be amended by a Regulation.

2.

Budgetary implications



This measure does not involve any additional Union expenditure.

5. Additional information

· Simplification and adaptation in light of the experience gained with the application of Council Regulation (EC) No 1217/2009

As further explained below, the Regulation contains certain provisions dating back to the time of adoption of Regulation No 79/65/EEC of the Council of 15 June 1965 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the European Economic Community  i that are no longer reflected in the current environment and structure of the FADN.

Indeed, the reports based on FADN are no longer submitted to the European Parliament and the Council for the purpose of annual fixing of prices of agricultural produce. The current provision that reports shall be submitted annually to the European Parliament and the Council is therefore obsolete. However, in order to provide convenient access to the data and reports based on FADN to other institutions as well as to the public such information should be published on a public website.

The Commission does also not require the Member States to provide returning holdings with a list of accountancy offices to select from but most holdings have their own accountant / accounting office that provides the FADN with the data or data is collected directly by the liaison office or its contractors. Furthermore, budgetary control of expenses to be paid for delivery of farm returns is controlled by a separate budgetary procedure and should therefore no longer be included in this Regulation.

Since both surveys mentioned in the Regulation, i.e. for the determination of incomes of agricultural holdings on the one hand and for business analysis of agricultural holdings on the other hand, are subject to essentially the same rules, it is appropriate to merge the provisions applicable for both types of surveys.

Annex I to the Regulation contains a list of divisions for each Member State. This list is to be amended by the Commission upon request of the relevant Member State. Such a list of divisions, including the number of holdings to be selected for each division, is also set out in the Annex to Commission Regulation (EU) 1291/2009 of 18 December 2009 concerning the selection of returning holdings for the purpose of determining incomes of agricultural holdings  i. It is suggested, considering the rather technical nature of the Annex I to this Regulation and the need for flexibility to adapt such list of divisions, that Annex I to this Regulation is removed from this Regulation and the Commission will be henceforth empowered to define the list of divisions by way of delegated acts.