Explanatory Memorandum to COM(2020)186 - Amendment of Regulation (EU) No 1305/2013 as regards specific measures to provide exceptional temporary support under EAFRD in response to the COVID-19 outbreak

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dossier COM(2020)186 - Amendment of Regulation (EU) No 1305/2013 as regards specific measures to provide exceptional temporary support under EAFRD ...
source COM(2020)186 EN
date 30-04-2020


1. CONTEXTOFTHE PROPOSAL

• Reasons for and objectives of the proposal

The direct and indirect effects of the COVID-19 outbreak continue to increase across all Member States. The current situation is unprecedented and requires exceptional measures adapted to the situation to be applied in these circumstances.

In the farming and food sectors, many difficulties have been reported, arising from the extensive movement restrictions put in place in the Member States, as well as mandatory closures of shops, outdoor markets, restaurants and other hospitality establishments. Economic disruption to the agricultural sector and rural communities has led to liquidity and cash-flow problems for farmers and small rural businesses processing agricultural products.

As a consequence, certain small businesses and farmers are in urgent need of emergency support in order to maintain their activities.

In view of the parallel difficulties of administrations, which make it be inapropriate for advisers to attend in person to support potential benefiaries, or for controlers to carry out in situ or ex-ante controls, it is indispensible to offer easy-to-use solutions which can be rolled out by Member States, and which can support diverse situations on the ground and which are easily accessible to beneficiaries.

The support will need to be in the form of a temporary aid, for a very targeted purpose in unprecendented circumstances. In order to achieve these goals, the support will take the form of a one-off lump sum for farmers and for SMEs active in processing, marketing and/or development of agricultural products. Payments by the Commission shall be made in accordance with budget appropriations and subject to available funding.

With a view to ensuring the most efficient use of resources available under existing rural development programmes, Member States will be required to substantiate the targeting of the support to those most affected, based on objective and non-discriminatory criteria. Member States would need to include the measure in the RDPs via a modification, although expenditure would be eligible from the moment of the commencement of the catastrophic event (Covid-19 outbreak).

• Consistency with existing policy provisions in the policy area

The proposal is consistent with the overall legal framework established for the Common Agricultural Policy and the European Structural and Investment Funds (ESIF) and is limited to a targeted amendment of Regulation (EU) No 1305/2013. The proposal complements all other measures aimed at addressing the current unprecedented situation taken by the Union, in particular those measures aimed at providing support to markets. The proposal is without prejudice to the minimum spending requirements defined in paragraphs 5 and 6 of Article 59 of Regulation (EU) 1305/2013.

• Consistency with other Union policies

The proposal is limited to targeted amendments of Regulation (EU) No 1305/2013 and maintains consistency with other Union policies.

2. LEGALBASIS, SUBSIDIARITYAND PROPORTIONALITY

• Legal basis

The proposal is based on Articles 42 and 43 of the Treaty on the Functioning of the European Union.

• Subsidiarity (for non-exclusive competence)

The Treaty on the Functioning of the European Union provides that the competence for agriculture is shared between the Union and the Member States, while establishing a common agricultural policy with common objectives and a common implementation. The proposal aims at ensuring the common objectives and common implementation of a new Rural Development measure.

• Proportionality

The proposal comprises limited and targeted amendments which does not go beyond what is necessary to achieve the objective of providing exceptional and temporary relief to farmers and SMEs active in processing, marketing and/or development of agricultural products, who are particularly affected by the COVID-19 crisis

• Choice of the instrument

A Regulation is the appropriate instrument to introduce the additional measure needed to address these unprecedented circumstances.

3. RESULTS        OF        EX-POST        EVALUATIONS,        STAKEHOLDER CONSULTATIONSANDIMPACTASSESSMENTS

N/A


Ex-post evaluations/fitness

Stakeholder

checks of existing legislation

consultations

There was no consultation of external stakeholders. However, the proposal follows consultations with Member States and Members of the European Parliament over recent weeks

Collection

and use of expertise

N/A

Impact

assessment

An impact assessment was carried out to prepare the proposal for Regulation (EU) No 1305/2013. These proposed limited amendments do not require a separate impact assessment.

• Regulatory fitness and simplification

N/A

• Fundamental rights

N/A


4. BUDGETARYIMPLICATIONS

The proposed modification does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments and payments as per Annex I to Regulation (EU) No 1311/2013. The total annual breakdown of commitment appropriations under European Agricultural Fund for Rural Development (EAFRD) remains unchanged. Considering the time needed for implementing this new measure, it is assumed that payments to beneficiaries will be made in the fourth quarter of 2020, and hence to be financed under the 2021 budget. The payment appropriations needed to finance this measure are to be accommodated within the appropriations for the EAFRD to be included in the forthcoming Commission’s Draft Budget 2021 and will be offset by a corresponding decrease in payment needs in subsequent years.

5. OTHERELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

The implementation of the measures will be monitored and reported upon in the framework of the general reporting mechanisms established in Regulations (EU) No 1303/2013 and 1305/2013.

• Explanatory documents (for directives)

N/A

• Detailed explanation of the specific provisions of the proposal

It is proposed to amend Regulation (EU) No 1305/2013