Direct payments and support for rural development in respect of the years 2019 and 2020

2018/0414(COD)

The European Parliament adopted by 605 votes to 36, with 7 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1305/2013 and (EU) No 1307/2013 as regards certain rules on direct payments and support for rural development in respect of the years 2019 and 2020.

Parliament adopted its position at first reading in accordance with the ordinary legislative procedure, taking over the Commission's proposal.

The proposal aims to ensure continuity of support to European farmers in the 2019 and 2020 by adapting two legislative acts of the Common Agricultural Policy (CAP): Regulation (EU) No 1305/2013 on rural development and Regulation (EU) No 1307/2013 on direct payments. The aim is to ensure policy continuity in the final years of the programming period and to ensure a smooth transition to the next programming period.

Rural development

Taking into account the extension to 2019 of the deadline for the new delimitation of areas facing natural constraints other than mountain areas through Regulation (EU) 2017/2393 of the European Parliament and of the Council and the shorter adaptation period for farmers who will no longer be eligible for payments, degressive transitional payments that only start in 2019 should start at no more than 80 % of the average payments fixed in the 2014–2020 programming period. The payment level should be established in such a way that the end-level in 2020 is half of the starting level.

The proposal specifies that it will be possible to finance activities relating to the preparation of the future CAP through technical assistance at the initiative of the Commission.

Flexibility between pillars is an optional transfer of funds between direct payments and rural development

The proposal includes provisions regarding the possibility for Member States to transfer funds between pillars in calendar year 2020 (corresponding to financial year 2021). It calls for a transfer between pillars to remain possible in calendar year 2020 under the same conditions as currently standing and that the estimated product of reduction continues to be transferred from direct payments to rural development.

In order to promptly provide the necessary flexibility to the Member States and to ensure the continuity of rural development policy in the final years of the 2014-2020 programming period, this Regulation should apply from 1 March 2019.