Ⓒ olof s. preparing ourselves for implementing the cap reform rudolf mögele european commission...
TRANSCRIPT
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Olo
f S
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Preparing ourselves for implementing the CAP reform
Rudolf Mögele
European CommissionDirectorate-General for Agriculture and Rural Development
22
Outline
Anticipating the implementation of the Reform:
Where do we stand today on the reform of the CAP towards 2020
What will be maintained /what will be changed
Preparatory activities by DG AGRI
Preparatory activities by Paying Agencies
333
Context MFF, Financial Regulation
CAP package:
Three sector-specific regulations covering:
direct payments
rural development
market measures (sCMO)
One horizontal regulation for both EAGF & EAFRD
Supplemented by:
Common provisions regulation for five funds, including EAFRD, covered by the common strategic framework (CPR)
Regulation on the European Globalisation Adjustment Fund (EGF)
CAP Reform State of Play- Background
444
Political agreement on the Financial Regulation reached
MFF: Political agreement expected end of the year
CAP reform, Council
Several discussion rounds, technical and political amendments by the Presidency, progress report by the Danish Presidency
Working groups have resumed their work last week, notably on direct payments
CAP reform, European Parliament
Close to 7000 amendments before summer break (but “only” 769 for the horizontal regulation …)
COMAGRI vote in November/December
CAP reform: a political agreement in the first months of 2013 ?
CAP Reform - State of Play
555
The agreement on the Financial Regulation confirms the consolidation of the overall architecture and main features of the existing management and control framework of the CAP expenditure
Against the background of the budgetary difficulties in most Member States
many paying agencies, delegated bodies and certification bodies face cuts in financial and/or human resources
to be compensated through greater efficiency, more automation and abolition of complex support schemes
Both in Council and Parliament the discussions will focus on direct payments, mainly greening
CAP Reform - State of Play – cont‘d
666
Most difficult file of the reform
The overall system of decoupled payments based on entitlements will remain, but with a number of changes that will impact on the practical management
Discussion concentrates now on
Greening (including penalties)
Land eligibility
Convergence within MS/region
small farmers scheme
Capping
What is new - direct payments
7
What is new - direct payments –cont‘d
Greening: on-going discussions on
Policy: extension of greening-relevant measures, collective measures, equivalent measures, certification schemes … more complex set of measures ?
Policy/controls: ensuring the policy is controllable at a reasonable cost (a common responsibility)
Both greening, land eligibility and regional model will impact on the LPIS
New definitions of which land is eligible or not- permanent pastures, EFA/landscape elements
New beneficiaries and their land in MS applying a SPS historical model or SAPS
Specific LPIS updating exercise for implementing smoothly these changes
888
The overall architecture and most of the measures will be maintained
The umbrella of the CPR should have no or limited impact on the work of the Paying Agencies; however for Managing Authorities it implies stronger coordination with other structural policies
Controllability, simplification: Paying Agencies to be formally consulted before the programs are sent to the Commission for approval – a new responsibility for Paying Agencies
Simplification:
Deletion of Axis
Standard costs, lump-sum payments
Harmonization of eligibility rules (e.g. VAT)
What is new - rural development
999
The new Financial Regulation consolidates the CAP management and control framework, other Funds will have to align; however, some important changes:
Limit to the number of paying agencies, synergies between 2 pillars
The new Financial Regulation confirms that certification bodies will have to give an opinion on the legality/regularity of transactions
Possibility to reduce the number of on-the-spot checks, dependent on confirmation of acceptable error rate and efficient control system by certification body
Reinforced/simplified clearance mechanism for irregularity cases
Harmonization of payments rules for IACS measures of the 2 pillars
What is new - Horizontal Regulation
101010
Simplification Experts Group
Exchange of views and ideas on how to simplify the CAP, including implementation aspects of the CAP reform
Forum for sharing best practices: Even more important role at the stage of implementation
Simplification Advisory Group
Involvement of stakeholders in the simplification work
Cooperation with the High Level Group of Independent Stakeholders on administrative burdens (“Stoiber Group”)
CAP reform on the agenda of the “Stoiber Group” meeting on 6 November, with the participation of Commissioner Ciolos
DG AGRI preparatory activities - simplification
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Dialogue between DG AGRI and the Learning Network of Paying Agencies and Coordination bodies
Aim:
Use the experience of the experts in the field
Identify implementing difficulties at an early stage
Find the simplest way of implementation taking into account different implementation alternatives
Keep down administrative costs and burdens at all levels
Technical discussions linked to the management and control of CAP instruments
Informal exchange of views
No interference in the political debate!
DG AGRI preparatory activities - simplification
121212
And very pragmatic ACTION every time improvements are identified, e.g.
Member States’ request in April for a de-minimis clause for the recovery of interests: modification for Article 80(2) of Regulation (EC) No 1122/2009 and Article 5(2) of Regulation (EC) No 65/2011 to require interests to be charged only as from a fixed payment deadline to be voted on 19 September
DG AGRI preparatory activities - simplification
13
DG AGRI preparatory activities – direct payments
direct payments still under discussion
outcome effects the IACS, in particular aid applications
Land Parcel Identification System (LPIS)
2 main effects of the reform changes regarding the eligibility rules
changes following the introduction of greening
LPIS update will be required as regards the maximum eligible area
as regards the controllability of greening measures : permanent grassland
EFA
14
DG AGRI preparatory activities – direct payments
update of the maximum eligible area of the reference parcel
abolishment of the “GAC 2003 requirement”
definition of permanent grassland
previous ineligible features might become eligible (e.g. bushes, shrubs)
previous ineligible area might enter the system(e.g. heather)
eligibility of landscape features counting as EFA
complexity of the inventory of the eligible area for the Basic Payment Schemes depends on the discussion in the Council and the Parliament !
15
DG AGRI preparatory activities – direct payments
update required for controllability of greening measures
crop diversification
no need to enter yearly changing crops into the database
maintenance of permanent grassland
reference layer on permanent grassland needs to be established
digitization as graphical overlay not strictly necessary, but recommended
EFA
impact on the maximum eligible area
delineation of EFA
availability of details depends on discussion in the Council and the Parliament !
16
DG AGRI preparatory activities – rural development
Learning from our own experience
Error rate established on the Control statistics from MS for 2010, including a 25 % safety margin, higher than 2 % - concerns notably axis 2, AEM measures
Reservation in the Annual Activity Report and action plan to be implemented with most concerned (14) MS
Meetings with Paying Agencies and Managing Authorities, identification of the main sources of errors and of remedial actions
Positive collaboration, reports identifying remedial actions
second set of meetings in September
Learning from others
DAS 2012, specific representative samples for each pillar
ECA found a high number of errors, e.g. public procurement
Lessons to be shared in November
171717
General objective 1= to consolidate the structures and controls of Paying Agencies as the 2 first building blocks of the assurance on CAP expenditure
General objective 2 = to exploit synergies with the other work to be carried out by the certification bodies and to keep the additional workload to a minimum
Draft guidelines replacing the whole set of existing guidelines and covering all the work to be done by the CBs from 2014 circulated 2 weeks ago
Meeting with CBs on 27 September
Continuation of the dialogue with the LN
Second version of draft guidelines by the end of the year
DG AGRI preparatory activities –CB Work
181818
The additional assurance from the work of the CB on legality and regularity will allow reducing the number of on-the-spot checks dependent on two basic conditions being cumulatively certified:
an error rate at an acceptable level (below 2%)
the proper functioning of the management and control systems
Assessment at the level of the individual support scheme or measure and decision remains responsibility of the Member State
Level of reduction still to be decided, but may vary according to the effectiveness of the administrative controls: a good LPIS makes it possible to reduce OTSC down to 1 %
DG AGRI Preparatory work - Reduction of Checks
191919
Possible savings due to reduction of on-the-spot-checks:
Overall there is a net benefit expected !
DG AGRI Preparatory work - Reduction of Checks
EU-27 current legal requirements
reduction to 3% reduction to 1%
Total No of beneficiaries (ABB03) 8.267.320 8.267.320 8.267.320
No of beneficiaries controlled on-the-spot (ABB03) 413.366 248.020 82.673
% 5,0% 3,0% 1,0%
Cost per on-the-spot control (ABB03) 356,34 356,34 356,34
Total costs for on-the-spot-control (ABB03) 147.298.840,44 88.379.304,26 29.459.768,09
possible savings 58.919.536,18 117.839.072,35
2020
DG AGRI preparatory activities –others
Control statistics: review of content and transmission modalities; preparations for a test with direct payments in 2013; potential simplification for PAs and more consistent overall results
Review and recast of all sector-specific control rules
Guidance on key and ancillary controls, new schemes and overall review
Irregularities, horizontal rules for recovery from beneficiaries and charging of interests
Drafting the future 885/2006, notably on CB work, default interests to farmers, rules on criteria, methodology and procedure for financial corrections
Simplification of rural development, how to make full use of standard costs, lump-sum payments and avoid unnecessary/risky conditions
2121
Paying agencies preparatory activities
National decision making process (optional direct payments, RD programs), PA responsible for simplification/controllability
IT tools for new schemes and for adaptation to revised rules
LPIS adaptation
Allocation of payment entitlements
Adaptation of control instructions
Aid applications, forms and on-line portal
Information and guidance to beneficiaries
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challenges and way forward
Progress dependent on agreement on MFF proposal
Progress dependent on EP position and timing (trilogues)
Impact of the discussions in Council and Parliament, e.g.
Land eligibility rules and update of the LPIS
Delegated/implementing acts and needed margin of flexibility
Drafting of detailed rules by the Commission and preparation of implementation by Member States dependent on basic rules being stabilized
Anticipating where it is possible
Technical transitory provisions on an ad-hoc basis ?