Explanatory Memorandum to COM(2013)327 - Amending various directives with regard to management of expenditure relating to the food chain, animal health, animal welfare, plant health and plant reproductive material

Please note

This page contains a limited version of this dossier in the EU Monitor.

1. CONTEXT OF THE PROPOSAL

· General context

On 29 June 2011, the European Commission presented its proposal for a multiannual financial framework for 2014-2020 which was amended on 6 July 2012. Taking into account the conclusions of the European Council of 7/8 February 2013, the Commission is proposing a maximum amount of EUR 1 891,936 million for expenditure in relation to food and feed during the whole period 2014-2020. The objective of this Regulation is to modernise the financial provisions for this area.

The main current financial legal framework used for funding these areas is Council Decision 2009/470/EC for veterinary eradication programmes and veterinary emergency measures, Council Directive 2000/29/EC for plant health measures and Regulation (EC) No 882/2004 of the European Parliament and of the Council for funding measures regarding official controls. Further specific financial provisions exist in Regulation (EC) No 396/2005 on maximum residue levels of pesticides in or on food and feed of plant and animal origin, in Regulation (EC) No 1107/2009 concerning the placing of plant protection products on the market, in Directive 2009/128/EC establishing a framework for Community action to achieve the sustainable use of pesticides as well as in numerous other Council Directives related to animal and plant health.

This piecemeal framework is not in line with some provisions of the Financial Regulation and is quite complex. It has evolved over time and it needs to be rationalised.

This is an opportunity to replace the current financial provisions in multiple legal bases by one single, clear and modern financial framework which optimises the implementation and the functioning of financial management of expenditure in the field of food and feed. In particular, the financial management structures will be simplified on the basis of clear objectives and indicators. Funding rates will also be clearer and more simplified.

This proposal is part of the Healthier Animals and Plants for a Safer Food Chain Package which includes proposals for:

– the animal health policy, which aims to protect and raise the health status and the condition of animal in the EU, in particular food-producing animals, whilst permitting intra-EU trade and imports of animals and animal products in accordance with the appropriate health standards and international obligations;

– the plant health regime, whose objective is to protect EU agriculture and forestry by preventing the entry and spread of non-native plant pests;

– the regime for production and making available on the market of plant reproductive material of agricultural, vegetable, forest, fruit, vine and ornamental species, which ensures that EU criteria for health, identity, and quality are met;

– the rules which govern official controls and other official activities performed to ensure the application of food law and feed law, rules on animal health and welfare, plant health and plant reproductive material, plant protection products and pesticides.

· Focus of actions/Expenditure

The veterinary eradication programmes are essential to progressively eliminate a number of listed animal diseases which are endemic in certain areas of the Union, by means of a wide range of measures including vaccination, testing of animals and compensation for slaughtering and culling. EU funding to support these measures gives priority to diseases of public health importance and those which have major economic impacts, due to trade implications and income losses for farmers, for the wider livestock industry, as well as adjacent sectors.

The EU plant health and plant reproductive material regimes give priority to the protection of EU agriculture and forestry by preventing the entry and spread of non-native pests of plants and to the availability and use of healthy plant material at the beginning of the chain of plant production.

Expenditure for official controls includes the financing of the Better Training for Safer Food programme, which promotes a harmonised approach to the operation of Union and national control systems; and of the network of the EU Reference Laboratories, which provide scientific and technical expertise in those areas where the effectiveness of official controls depends on the quality, uniformity and reliability of the methods of analysis or tests, and the results thereof, employed by official laboratories. It also includes other actions intended to improve the effectiveness of official controls performed by the Member States and the enforcement of the agri-food chain acquis in general.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



· Consultation of interested parties

Because these policies have been under review for some time, they are individually supported by their own impact assessments, and details of these policies have been extensively discussed with stakeholders in various consultation fora.

· Accelerated impact assessment

5.

An impact assessment was conducted between August and September 2012 by the Directorate-General for Health and Consumers. It considered four options:


– Option 1: no change. The current legal framework will not be consistent with the Multiannual Financial Framework. Expenditure on plant health could not be increased.

– Option 2: bring existing legislation into one legislative instrument. This will promote a simpler and more understandable legislation, but will not allow the financial framework to be adapted.

– Option 3 (a): establish a single coherent financial programme, largely using existing financial provisions but with improvements. The simplification of the system and the harmonisation of rates will reduce the administrative burden on the Commission and on the Member States. New financial management tools such as clear objectives and indicators will use available resources more effectively.

– Option 3 (b): introduction of aspects of Cost and Responsibility Sharing Schemes (CRSS). This option envisages a participatory approach when public authorities share with the private sector the burden of losses incurred as well as the responsibilities of running the system. The administrative burden will be expected to rise in the short term and the system is expected to be difficult to manage.

– Option 4: stop all EU actions. This option was not considered appropriate because it will jeopardise the objectives of the policy areas and will have a very negative impact on trade.

2.

LEGAL ELEMENTS OF THE PROPOSAL



The proposal is based on Articles 43 and 168(4)(b) of the Treaty on the Functioning of the European Union (TFEU). Measures adopted under Article 43 should be necessary to pursue the objectives of the common agricultural policy. Measures adopted under Article 168(4)(b) should have as their object a high level of human health protection. This proposal undertakes to financially support EU and Member State actions aiming at ensuring a high level of health for humans, animals and plants along the food chain and a high level of protection and information of food chain consumers. The choice of Articles 43 and 168(4)(b) TFEU is thus justified both by the objective and the content of the proposal. This proposal is to be adopted in accordance with the ordinary legislative procedure and after consulting the European Economic and Social Committee and the Committee of the Regions.

3.

BUDGETARY IMPLICATION



On 29 June 2011, the European Commission presented its proposal for a multiannual financial framework for 2014-2020 which was amended on 6 July 2012. Taking into account the conclusions of the European Council of 7/8 February 2013, the Commission is proposing a maximum amount of EUR 1 891,936 million for expenditure in relation to food and feed during the whole period 2014-2020. In accordance with the Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for Executive Agencies to be entrusted with certain tasks in the management of Community programmes, the Commission has entrusted the Executive Agency for Health and Consumers with implementation tasks for the management of the Food and Feed Programme since 2008. The Commission may use, on the basis of a cost-benefit analysis, an existing executive agency for the implementation of this Programme.

4.

5. SUMMARY OF CONTENTS OF THIS REGULATION


This Regulation provides for the scope and objectives for food and feed expenditure up to a maximum ceiling of EUR 1 891,936 million in current prices. The objectives are a high level of safety of food and food production systems, a higher animal health status and animal welfare, the detection and eradication of pests, to ensure an effective implementation of official controls. These objectives are accompanied with their indicators.

This Regulation also sets eligible measures and costs.

The funding rates for grants are rationalised. A standard funding rate is set at 50% of the eligible costs. This rate can be raised under certain conditions up to 75% and 100%. In order to avoid the administrative burden of the management of micro-programmes, this Regulation sets a minimal amount for grants of EUR 50 000.

This Regulation also provides for the access to the Reserve for crises in the agricultural sector in certain circumstances.

Regarding plant health, in order to protect the EU against pests linked inter alia to trade globalisation and climate change, Union financial contribution will also cover survey programmes for the presence of pests and phytosanitary support measures for the outermost territories of Member States.

This Regulation provides for the possibility to support Union reference laboratories and projects aimed at improving the effectiveness and efficiency of official controls.

For the sake of clarity and transparency, this Regulation sets the procedures of submission and evaluation of annual and multiannual control programmes and the procedure for setting or updating the list of animal diseases or plant pests eligible for co-funding.

The procedures for financing these areas are simplified. In particular the number of decisions the Commission will have to adopt will decrease significantly. For example the reimbursement decisions will not be taken by the Commission any more.