BRUSSELS, BELGIUM — With an update to budget estimates for agricultural expenditures in 2014, the European Commission has proposed adapting the rate of financial discipline for this year’s director payments within the Common Agriculture Policy (CAP) to 2.45% rather than the rate of 4% previously introduced.
When the draft 2014 budget was proposed, the budgetary estimates, including the new agricultural crises reserve financed from financial discipline, were €1.471 billion above the 2014 budgetary sub-ceiling for the first pillar of the CAP. This meant that, by exempting the first €2,000 of farmers’ direct payments from any reduction, a rate of 4% was needed in order to make the necessary savings.
However, the amending letter has now updated the figures, notably confirming that the amount of assigned revenue carried forward into the 2014 budget year will be substantially higher than originally expected.
With these updated figures, it is now only necessary to save €902.9 million. Consequently, with the €2,000 threshold, the Commission is now proposing to adjust the applicable rate to 2.453658% in order to respect the budgetary ceiling.
This proposal will now be put to council, with a view to agreement by Dec. 1. If member states are unable to adopt the proposal by then the rate of 4.001079% would apply.
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