REPORT on the proposal for a regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013

Text proposed by the Commission

Amendment

(1)  The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled 'The Future of Food and Farming' of 29 November 2017 concludes that the Common Agricultural Policy (hereinafter ‘CAP’) should continue to step up its response to future challenges and opportunities, by boosting employment, growth and investment, fighting and adapting to climate change and bringing research and innovation out of the laboratories and onto fields and markets. The CAP should furthermore address citizens' concerns regarding sustainable agriculture production.

(1)  The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled 'The Future of Food and Farming' of 29 November 2017 concludes that the Common Agricultural Policy (hereinafter ‘CAP’) should continue to step up its response to future challenges and opportunities, by boosting employment, growth and investment, fighting and adapting to climate change, adapting them and transferring research and innovation from the laboratories to fields and markets. The CAP should furthermore address citizens' concerns regarding sustainable agriculture production and rural development.

Text proposed by the Commission

Amendment

(1 a)  It is necessary that the agricultural sector does not suffer the financial consequences of political decisions, such as the withdrawal of the United Kingdom from the European Union, or the funding of new Union policies. Account should be taken of the European Parliament resolution of 30 May 2018 on the 2021-2027 multiannual financial framework and own resources (2018/2714(RSP)) which deplored the fact that the Commission proposal of 2 May 2018 on the MFF for 2021-2027 led to a 15% reduction in the level of the CAP, and stated that the European Parliament was particularly opposed to any radical cuts that would adversely impact on the very nature and objectives of the CAP. It also questioned, in that context, the proposal to reduce the European Agricultural Fund for Rural Development by more than 25 %.

Text proposed by the Commission

Amendment

(1 b)  The CAP has a fundamental role in the Union with direct payments and second-pillar funds to farmers contributing significantly not only to food security, but also to investment and employment in rural areas. The severe cuts envisaged for the CAP are not acceptable. For that reason, the CAP should focus on its core activities and the funding allocated to the CAP 2021-2027 for the EU-27 should be maintained at least at the level of the 2014-2020 budget while budgeting the initial amount for the agricultural crisis reserve.

Text proposed by the Commission

Amendment

(1 c)  In accordance with Article 208 of the Treaty on the Functioning of the European Union (TFEU), the implementation of the CAP should be take account of the objectives of development cooperation including, inter alia, the 2030 Agenda for Sustainable Development and the achievement of the Union's climate change mitigation obligations under the Paris Agreement.

Text proposed by the Commission

Amendment

(3)  The CAP's compliance-driven delivery model should be adjusted to ensure a greater focus on results and performance. Accordingly the Union should set the basic policy objectives, types of intervention and basic Union requirements while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity in order to take better account of the local conditions and needs. Accordingly, under the new delivery model, Member States should be responsible for tailoring their CAP interventions in line with basic Union requirements in order to maximize their contribution to Union CAP objectives and to establish and design the compliance and control framework for beneficiaries.

(3)  The CAP's compliance-driven delivery model should be adjusted to ensure a greater focus on results and performance. Accordingly the Union should set the basic policy objectives, types of intervention and basic Union requirements while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity and flexibility in order to take better account of the local conditions and needs. Accordingly, under the new delivery model, Member States should be responsible for tailoring their CAP interventions in line with their specific needs and basic Union requirements in order to maximize their contribution to Union CAP objectives. Member States should also establish and design the control framework for beneficiaries to continue to ensure compliance of the CAP strategic plans interventions with applicable Union law. Basic Union requirements, including good agricultural and environmental conditions (GAEC) and statutory management requirements (SMRs), ensure a common approach and a level playing field between Member States.

Text proposed by the Commission

Amendment

(5)  The provisions of Regulation (EU, Euratom) …/… of the European Parliament and of the Council [New Financial Regulation]¹² , in particular those governing shared management with Member States, the function of accredited bodies and the budgetary principles, should apply to the interventions and measures set out in this Regulation.

(5)  The provisions of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council [New Financial Regulation]¹², in particular those governing shared management with Member States, the function of accredited bodies and the budgetary principles, should apply to the interventions and measures set out in this Regulation.

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¹² Regulation (EU, Euratom) No [New Financial Regulation].

¹² Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012. (OJ L 193,30.7.2018, p. 1).

Text proposed by the Commission

Amendment

(5 a)  Part of the provisions of Regulation (EU) …/…[CPR Regulation^1a], should apply to this Regulation.

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^1a [CPR Regulation]

Text proposed by the Commission

Amendment

(5 b)  Member States should refrain from adding rules that complicate the use of the EAGF and the EAFRD for the beneficiary.

Text proposed by the Commission

Amendment

(9)  It is necessary to provide for the accreditation of paying agencies and coordinating bodies by Member States and for the establishment of the procedures for obtaining management declarations and annual performance reports, and for obtaining the certification of management and monitoring systems, of reporting systems and the certification of annual accounts by independent bodies. Moreover, in order to ensure the transparency of the system of checks to be carried out at national level, in particular as regards procedures for authorisation, validation and payment and to reduce the administrative and audit burden for the Commission and for the Member States where accreditation of each individual paying agency is required, the number of authorities and bodies to which those responsibilities are delegated should be restricted while respecting the constitutional provisions of each Member State.

(9)  It is necessary to provide for the accreditation of paying agencies and coordinating bodies by Member States and for the establishment of the procedures for obtaining management declarations, annual clearance report and performance reports, and for obtaining the certification of management and monitoring systems, of reporting systems and the certification of annual accounts by independent bodies. Moreover, in order to ensure the transparency of the system of checks to be carried out at national level, in particular as regards procedures for authorisation, validation and payment and to reduce the administrative and audit burden for the Commission and for the Member States where accreditation of each individual paying agency is required, the number of authorities and bodies to which those responsibilities are delegated should be restricted while respecting the constitutional provisions of each Member State. Paying agencies should develop their role as advisors to farmers and make efforts towards the simplification of procedures for beneficiaries while ensuring compliance with standards at Union level.

Text proposed by the Commission

Amendment

(10)  Where a Member State accredits more than one paying agency, it should designate a single public coordinating body in order to ensure consistency in the management of Funds, to provide for a liaison between the Commission and the various accredited paying agencies, and to ensure that the information requested by the Commission concerning the operations of several paying agencies is provided promptly. The coordinating body should also take and coordinate actions with a view to resolving any deficiencies of a common nature encountered at national level and should keep the Commission informed of any follow-up.

(10)  Where a Member State accredits more than one paying agency, it should designate a single public coordinating body in order to ensure consistency in the management of Funds, to provide for a liaison between the Commission and the various accredited paying agencies, and to ensure that the information requested by the Commission concerning the operations of several paying agencies is provided promptly. The coordinating body should also take and coordinate actions with a view to resolving any deficiencies of a common nature encountered at national or regional level and should keep the Commission informed of any follow-up.

Text proposed by the Commission

Amendment

(11)  Involving paying agencies that have been accredited by the Member States is a crucial prerequisite under the new delivery model for having reasonable assurance that the objectives and targets set out in the relevant CAP Strategic Plans will be reached by the interventions financed by the Union's budget. It should, therefore, be explicitly provided in this Regulation that only expenditure effected by accredited paying agencies can be reimbursed from the Union's budget. In addition, the expenditure financed by the Union for the interventions referred to in the CAP Strategic Plan Regulation should have a corresponding output regarding and should comply with the basic Union requirements and the governance systems.

(11)  Involving paying agencies that have been accredited by the Member States is a crucial prerequisite under the new delivery model for having reasonable assurance that the objectives and targets set out in the relevant CAP Strategic Plans will be reached by the interventions financed by the Union's budget. It should, therefore, be explicitly provided in this Regulation that only expenditure effected by accredited paying agencies can be reimbursed from the Union's budget. In addition, the expenditure financed by the Union for the interventions referred to in the CAP Strategic Plan Regulation should have a corresponding output and should comply with the basic Union requirements and the governance systems.

Text proposed by the Commission

Amendment

(14)  With a view to ensuring that the amounts for the financing of the CAP comply with the annual ceilings, the financial discipline mechanism by which the level of direct support is adjusted, should be maintained. However, the threshold of EUR 2000 should be abolished. An agricultural reserve should be maintained to support the agricultural sector in the event of market developments or major crises affecting the agricultural production or distribution. Article 12(2)(d) of Regulation (EU, Euratom) [New Financial Regulation] foresees that non-committed appropriations may be carried over to to the following financial year only. In order to significantly simplify the implementation for beneficiaries and national administrations, a roll-over mechanism should be used, using any unused amounts of the reserve for crises in the agricultural sector established in 2020. For this purpose a derogation from Article 12(2)(d) is necessary, allowing for non-committed appropriations of the agricultural reserve to be carried over without time limitation to finance the agricultural reserve in the following financial year(s). Furthermore, as regards the financial year 2020, a second derogation is necessary as the total unused amount of the reserve available at the end of year 2020 should be carried over to the year 2021 to the corresponding line of the new agricultural reserve without being returned to the budgetary lines which cover direct payment interventions under the CAP Strategic Plan.

(14)  With a view to ensuring that the amounts for the financing of the CAP comply with the annual ceilings, the financial discipline mechanism by which the level of direct support is adjusted should be maintained.

Text proposed by the Commission

Amendment

(14 a)  The existing crisis reserve should be reviewed and strengthened to support the establishment of an EU agricultural crisis reserve, a more effective and flexible tool which should provide supplementary support for the agricultural sector in the event of market developments and enable the Union to better respond to major crises affecting agricultural production or distribution. For that purpose and to allow the development of a sound framework enabling farmers to manage risks appropriately, the EU agricultural crisis reserve appropriations should be mobilised for the financing of the market stabilisation measures and the exceptional measures referred to in Regulation (EU) No 1308/2013 as well as for measures allowing for the substitution of the income stabilisation tools put in place by the Member States under Article 70 of Regulation (EU) ... / ... [CAP Strategic Plan Regulation] and made available to farmers in the event of a sharp decline in agricultural income beyond a threshold per sector predefined by the Commission, in respect of which it should be empowered to adopt delegated acts.

Text proposed by the Commission

Amendment

(14 b)  The EU agricultural crisis reserve should be established in the budget of the CAP and its initial amount should be set up in 2021 as an addition to the EAGF and EAFRD budgets. Point (d) of Article 12(2) of Regulation (EU, Euratom) [New Financial Regulation] provides that non-committed appropriations may be carried over to the following financial year only. For that purpose a derogation from point (d) of Article 12(2) thereof is necessary, allowing for non-committed appropriations of the agricultural reserve to be carried over without time limitation to finance the agricultural reserve in the following financial year(s), allowing the accumulation of appropriations for the EU agricultural crisis reserve from one year to the next, throughout the programming period.

Text proposed by the Commission

Amendment

(15)  In order to avoid an excessive administrative burden for national administrations and farmers provision should be made that reimbursement of the amounts carried over from the preceding financial year in relation to financial discipline applied, should not take place either where financial discipline is applied for a second subsequent year (year N+1), or where the overall amount of non-committed appropriations represents less than 0,2% of the EAGF annual ceiling.

(15)  In order to avoid an excessive administrative burden for national administrations and farmers, to simplify procedures as much as possible and limit the complexity of payment forms, provision should be made that reimbursement of the amounts carried over from the preceding financial year in relation to financial discipline applied should not take place either where financial discipline is applied for a second subsequent year (year N+1), or where the overall amount of non-committed appropriations represents less than 0,2% of the EAGF annual ceiling.

Text proposed by the Commission

Amendment

(16a)  Equalising the level of direct payments among the Member States is essential in order to ensure a level playing field in the internal market. There is an urgent need for a fair distribution of direct payments between Member States.

Text proposed by the Commission

Amendment

(21)  In order to provide the Commission with, in particular, the means to manage agricultural markets, to facilitate the monitoring of agricultural expenditure and to monitor agricultural resources in the medium and long term, the use of the agro-meteorological system and the acquisition and improvement of satellite data should be provided for.

(21)  In order to provide the Commission with, in particular, the means to manage agricultural markets, to facilitate the monitoring of agricultural expenditure, to assess and provide timely aid in the event of natural disasters and to monitor agricultural resources needed for production in the medium and long term, the use of the agro-meteorological system and the acquisition and improvement of satellite data should be provided for.

Text proposed by the Commission

Amendment

(21 a)  The Commission's monitoring of agricultural markets should be extended to monitoring trade flows to and from developing countries in sectors which have been identified as sensitive by the partner countries, so as to ensure the coherence of CAP-related agro-food sector trade outcomes with the Union’s commitment to Policy Coherence for Development.

Text proposed by the Commission

Amendment

(25)  In accordance with the architecture and the key characteristics of the new CAP delivery model the eligibility of payments made by Member States for Union financing should no longer depend on the legality and regularity of payments to individual beneficiaries. Instead, as regards types of interventions referred to in Regulation (EU)…/…[CAP Strategic Plan Regulation], Member States’ payments should be eligible if they are matched by corresponding output and in compliance with the applicable basic Union requirements.

(25)  In accordance with the architecture and the key characteristics of the new CAP delivery model the eligibility of payments made by Member States for Union financing should no longer depend on the legality and regularity of payments to individual beneficiaries. Instead, as regards types of interventions referred to in Regulation (EU)…/…[CAP Strategic Plan Regulation], Member States’ payments should be eligible if they are matched by corresponding output and in compliance with the applicable basic Union requirements. The new CAP delivery model should not remove the obligations of the Member States to check the legality and regularity of expenditure in order to ensure the protection of the financial interests of the Union.

Text proposed by the Commission

Amendment

(28)  Member States should send the annual accounts and an annual performance report on the implementation of the CAP Strategic Plan to the Commission by 15 February N+1. Where these documents are not sent, thus preventing the Commission from clearing the accounts for the concerned paying agency or checking the eligibility of the expenditure against reported outputs, the Commission should be empowered to suspend the monthly payments and to interrupt the quarterly reimbursement until the outstanding documents are received.

(28)  Member States should send the annual accounts and the annual clearance report by 15 February N+1 and a performance report on the implementation of the CAP Strategic Plan to the Commission by 15 April of the second calendar year after the date of application of this Regulation and every two years thereafter. Where these documents are not sent, thus preventing the Commission from clearing the accounts for the concerned paying agency or checking the eligibility of the expenditure against reported outputs, the Commission should be empowered to suspend the monthly payments and to interrupt the quarterly reimbursement until the outstanding documents are received.

Text proposed by the Commission

Amendment

(29)  A new form of payment suspension should be introduced for situations of abnormally low outputs. Where the outputs reported are at an abnormally low level in comparison with the declared expenditure, and where Member States cannot provide good and comprehensible reasons for this situation, the Commission should be empowered to, in addition to reducing the expenditure for the financial year N-1 suspend future expenditure related to the intervention for which the output was abnormally low. Such suspensions should be subject to confirmation in the annual performance clearance decision.

(29)  A new form of payment suspension should be introduced for situations of abnormally low outputs. Where the outputs reported are at an abnormally low level in comparison with the declared expenditure, and where Member States cannot provide good and comprehensible reasons for this situation, the Commission should be empowered, in addition to reducing the expenditure for the financial year N-1, and following prior warning, to suspend future expenditure related to the intervention for which the output was abnormally low. Such suspensions should be subject to confirmation in the annual clearance decision.

Text proposed by the Commission

Amendment

(30)  As regards the multi-annual performance monitoring the Commission should also have the power to suspend payments. Accordingly in cases of delayed or insufficient progress towards targets, set out in the national CAP Strategic Plan, the Commission should be empowered to request the Member State concerned to take the necessary remedial actions in accordance with an action plan to be established in consultation with the Commission and containing clear progress indicators, by means of an implementing act. Where the Member State fails to submit or to implement the action plan or where the action plan is manifestly insufficient to remedy the situation, the Commission should have the power to suspend the monthly or interim payments, by means of an implementing act.

(30)  As regards the multi-annual performance monitoring, given the more complex nature of the result indicators and the necessary adaptation to the new delivery model, the performance reporting on the realised results and the distance to respective targets should be submitted for the first time by 15 April of the second calendar year after the date of application of this Regulation and every two years thereafter. Accordingly in the cases of delayed or insufficient progress towards targets, set out in the national CAP Strategic Plan, and where the Member State cannot provide duly justified reasons, the Commission should be empowered to request the Member State concerned to present an action plan to be established in consultation with the Commission. The action plan should describe the necessary remedial actions and the expected timeframe for its execution. Where the Member State fails to submit or to implement the action plan or where it becomes evident that the action plan is manifestly insufficient to remedy the situation, the Commission should have the power to suspend the monthly or interim payments, by means of an implementing act.

Text proposed by the Commission

Amendment

(39)  In order to establish the financial relationship between the accredited paying agencies and the Union's budget, the Commission should clear the accounts of the paying agencies annually, in the framework of the annual financial clearance. The decision relating to the clearance of accounts should be limited to the completeness, accuracy and veracity of the accounts and should not cover the conformity of the expenditure with Union law.

(39)  In order to establish the financial relationship between the accredited paying agencies and the Union's budget, the Commission should clear the accounts of the paying agencies annually, in the framework of the annual clearance. The decision relating to the clearance of accounts should be limited to the completeness, accuracy and veracity of the accounts and should not cover the conformity of the expenditure with Union law.

Text proposed by the Commission

Amendment

(40)  In line with the new delivery model, an annual performance clearance should be established in order to check the eligibility of the expenditure in relation to the reported outputs. In order to tackle situations where the expenditure declared does not have corresponding reported outputs and the Member States cannot provide justifications for this deviation, a mechanism of reduction of payments should be put in place.

(40)  In line with the new delivery model, an annual clearance should be established in order to check the eligibility of the expenditure in relation to the reported outputs. In order to tackle situations where the expenditure declared does not have corresponding reported outputs and the Member States cannot provide justifications for this deviation, a mechanism of reduction of payments should be put in place.

Text proposed by the Commission

Amendment

(42)  In order to to safeguard the financial interests of the Union's budget, systems should be put in place by Member States in order to satisfy themselves that interventions financed by the Funds are actually carried out and are executed correctly, while maintaining the current robust framework for sound financial management. In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013¹⁵ of the European Parliament and of the Council, Council Regulation (Euratom, EC) No 2988/95¹⁶ , Council Regulation (Euratom, EC) No 2185/96¹⁷ and Council Regulation (EU) 2017/1939¹⁸ , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities including fraud, the recovery of Funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. Moreover, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371¹⁹ of the European Parliament and of the Council. In accordance with the Financial Regulation, any person or entity receiving Union Funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union Funds grant equivalent rights. Member States should have the systems in place allowing them to report to the Commission, for the purpose of enabling OLAF to exercise its powers and ensure an efficient analysis of cases of irregularity, on detected irregularities and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plan, including fraud and on their follow-up as well as on the follow-up of OLAF investigations. To ensure the effective examination of complaints concerning the Funds, Member States should have in place the necessary arrangements.

(42)  In order to safeguard the financial interests of the Union's budget, systems should be put in place by Member States in order to satisfy themselves that interventions financed by the Funds are actually carried out and are executed correctly, while maintaining the current robust framework for sound financial management. In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013¹⁵ of the European Parliament and of the Council, Council Regulation (Euratom, EC) No 2988/95¹⁶ and Council Regulation (Euratom, EC) No 2185/96¹⁷, and Council Regulation (EU) 2017/1939¹⁸, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities including fraud, the recovery of Funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. Moreover, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371¹⁹ of the European Parliament and of the Council. In accordance with the Financial Regulation, any person or entity receiving Union Funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union Funds grant equivalent rights. Member States should have the systems in place allowing them to report to the Commission, for the purpose of enabling OLAF to exercise its powers and ensure an efficient analysis of cases of irregularity, on detected irregularities and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plan, including fraud and on their follow-up as well as on the follow-up of OLAF investigations. To ensure the effective examination of complaints concerning the Funds, Member States should have in place the necessary arrangements.

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¹⁵ Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1).

¹⁵ Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1).

¹⁶ Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p. 1).

¹⁶ Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p. 1).

¹⁷ Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L292,15.11.96, p. 2).

¹⁷ Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L292,15.11.96, p. 2).

¹⁸ Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L283, 31.10.2017, p. 1).

¹⁸ Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L283, 31.10.2017, p. 1).

¹⁹ Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

¹⁹ Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

Text proposed by the Commission

Amendment

(46 a)  To ensure a level playing field between beneficiaries in different Member States, certain general rules should be introduced on controls and penalties at Union level.

Text proposed by the Commission

Amendment

(47)  The existing main elements of the integrated system and, in particular, the provisions concerning a system for identifying agricultural parcels, a geo-spatial and an animal-based application system, a system for identifying and registering payment entitlements, a system for recording the identity of beneficiaries and a control and penalties system should be maintained. Member States should continue to use data or information products provided by the Copernicus programme, in addition to information technologies such as GALILEO and EGNOS in order to ensure that comprehensive and comparable data is available throughout the Union for the purposes of monitoring agri-environment-climate policy and for the purposes of boosting the use of full, free and open data and information captured by Copernicus Sentinels satellites and services. To this end, the integrated system should include also an area monitoring system.

(47)  The existing main elements of the integrated system including the early warning system and, in particular, the provisions concerning a system for identifying agricultural parcels, a geo-spatial and an animal-based application system, a system for identifying and registering payment entitlements, a system for recording the identity of beneficiaries and a control and penalties system should be maintained, at an appropriate level, while taking due account of proportionality and the need not to impose undue administrative burdens on farmers and administrative bodies. Member States should continue to use data or information products provided by the Copernicus programme, in addition to information technologies such as GALILEO and EGNOS in order to ensure that comprehensive and comparable data is available throughout the Union for the purposes of monitoring agri-environment-climate policy and for the purposes of boosting the use of full, free and open data and information captured by Copernicus Sentinels satellites and services. To this end, the integrated system should include also an area monitoring system, which may limit the instances where on farm inspections are required and reduce the administrative burden on farmers.

Text proposed by the Commission

Amendment

(48)  The integrated system, as part of the governance systems which should be in place in order to implement the CAP, should ensure that the aggregate data provided in the annual performance reporting is reliable and verifiable. Given the importance of a properly functioning integrated system, it is necessary to set quality requirements. Member States should carry out an annual quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system. Member States should also address any deficiencies and, if so requested by the Commission, set up an action plan.

(48)  The integrated system, as part of the governance systems which should be in place in order to implement the CAP, should ensure that the aggregate data provided in the reporting is reliable and verifiable. Given the importance of a properly functioning integrated system, it is necessary to set quality requirements. Member States should carry out an annual quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system. Member States should also address any deficiencies and, if so requested by the Commission, set up an action plan.

Text proposed by the Commission

Amendment

(53)  Having regard to the international structure of agricultural trade and in the interest of the proper functioning of the internal market, it is necessary to organise cooperation among the Member States. It is also necessary to set up a centralised documentation system at Union level concerning undertakings established in third countries and which receive or make payments.

(53)  Having regard to the international structure of agricultural trade and in the interest of the proper functioning of the internal market and respect for the Union’s Policy Coherence for Development obligations, it is necessary to organise cooperation among the Member States and between Member states and third countries. It is also necessary to set up a centralised documentation system at Union level concerning undertakings established in third countries and which receive or make payments. Such a system should also contribute to the identification of incoherencies between the implementation of the CAP and the objectives of the external policies of the Union. It would contribute to monitoring the achievement of the CAP objectives as outlined in Regulation (EU) No…/… [CAP Strategic Plan Regulation], by allowing for the evaluation of the impact of undertakings established in third countries on the 2030 Agenda for Sustainable Development, and the Union’s development objectives, as provided for in Article 208 TFEU.

Text proposed by the Commission

Amendment

(55)  Conditionality is an important element of the CAP, in particular with regard to its environmental and climate elements but also concerning public health and animal related issues. This implies that controls should be carried out and, where necessary, penalties should be applied to ensure the effectiveness of the conditionality system. To have a level playing field between beneficiaries in different Member States, certain general rules on conditionality controls and penalties should be introduced at Union level.

(55)  Conditionality is an important element of the CAP, which ensures that payments promote a high degree of sustainability and ensure a level playing field for farmers within and between Member States, in particular with regard to its environmental and climate elements but also concerning public health and animal welfare. This implies that controls should be carried out and, where necessary, penalties should be applied to ensure the effectiveness of the conditionality system. To ensure such a level playing field between beneficiaries in different Member States, certain general rules on conditionality, and controls and penalties related to non-compliance should be introduced at Union level.

Text proposed by the Commission

Amendment

(57)  While Member States should be allowed to set out the details on penalties, those penalties should be proportionate, effective and dissuasive and should be without prejudice to other penalties laid down under Union or national law. To ensure an effective and coherent approach by Member States, it is necessary to provide for a minimum penalty rate at Union level for non-compliance occurring for the first time due to negligence, while reoccurrence should lead to a higher percentage and intentionality may result in the total exclusion from the payment. To ensure proportionality of the penalties, where the non-compliance is of a minor nature and occurs for the first time, Member States should be allowed to introduce an early warning system.

(57)  While Member States should be allowed to set out the details on penalties, those penalties should be proportionate, effective and dissuasive and should be without prejudice to other penalties laid down under Union or national law. To ensure an effective and coherent approach by Member States, it is necessary to provide for minimum penalty rates at Union level. Such rates should apply to cases of non-compliance occurring for the first time due to negligence, while reoccurrence should lead to a higher percentage and intentionality should potentially result in total exclusion from the payment. To ensure the proportionality of the penalties, where the non-compliance is of a minor nature and occurs for the first time, Member States should introduce an early warning system, notifying the beneficiary of the obligation to take corrective measures and allowing them to remedy the non—compliance. No administrative penalties should be imposed in the cases of non-compliance due to force majeure, simple negligence or due to obvious errors recognised by the competent authority or another authority.

Text proposed by the Commission

Amendment

(71)  Publishing such information together with the general information provided for in this Regulation, enhances transparency regarding the use of Union Funds in the CAP, thus contributing to the visibility and better understanding of that policy. It enables citizens to participate more closely in the decision-making process and guarantees that the administration enjoys greater legitimacy, and is more effective and is more accountable to the citizen. It also brings concrete examples of the provision of "public goods" by farming to the attention of citizens, thereby underpinning the legitimacy of state support for the agricultural sector.

(71)  Publishing such information together with the general information provided for in this Regulation, enhances transparency regarding the use of Union Funds in the CAP, thus contributing to the visibility and better understanding of that policy. It enables citizens to participate more closely in the decision-making process and guarantees that the administration enjoys greater legitimacy, and is more effective and is more accountable to the citizen. It also brings concrete examples of the provision of "public goods" by farming to the attention of citizens, thereby underpinning the legitimacy of Union and state support for the agricultural sector.

Text proposed by the Commission

Amendment

(b)  "governance systems" means the governance bodies referred to in Chapter II of Title II of this Regulation and the basic Union requirements laid down in this Regulation and Regulation (EU) …/… [CAP Strategic Plan Regulation], including the reporting system put in place for the purposes of the annual performance report referred to in Article 121 of Regulation (EU) …/… [CAP Strategic Plan Regulation];

(b)  "governance systems" means the governance bodies referred to in Chapter II of Title II of this Regulation and the basic Union requirements laid down in this Regulation and Regulation (EU) …/… [CAP Strategic Plan Regulation], including Member States’ obligations with regard to the effective protection of the financial interests of the Union referred to in Article 57 of this Regulation, the reporting system put in place for the purposes of the annual clearance report referred to in Article 8(3) of this Regulation and the performance report referred to in Article 121 of Regulation (EU) …/… [CAP Strategic Plan Regulation] (‘the performance report’);

Text proposed by the Commission

Amendment

(c a)  "output indicator" means output indicator as defined in point 12 of Article 2 of Regulation (EU) …/…[CPR Regulation]

Text proposed by the Commission

Amendment

(c b)  "result indicator" means result indicator as defined in point 13 of Article 2 of Regulation (EU) …/…[CPR Regulation].

Text proposed by the Commission

Amendment

(c c)  "serious deficiency" means serious deficiency as defined in point 30 of Article 2 of Regulation (EU) …/…[CPR Regulation].

Text proposed by the Commission

Amendment

(c d)  "intermediate body" means intermediate body as defined in point 7 of Article 2 of Regulation (EU) …/…[CPR Regulation].

Text proposed by the Commission

Amendment

(c e)  "action plan" means action plan in accordance with Article 39(1) and Article 40(1) of this Regulation.

Text proposed by the Commission

Amendment

(-a)  the death of the beneficiary;

Text proposed by the Commission

Amendment

(a)  a severe natural disaster gravely affecting the holding;

(a)  a natural disaster or meteorological event gravely affecting the holding;

Text proposed by the Commission

Amendment

(a a)  the long-term professional incapacity of beneficiary;

Text proposed by the Commission

Amendment

(a b)  market circumstances gravely affecting the holding;

Text proposed by the Commission

Amendment

(b)  the accidental destruction of livestock buildings on the holding;

(b)  the destruction of livestock buildings on the holding;

Text proposed by the Commission

Amendment

(c)  an epizootic or a plant disease affecting part or all of the beneficiary's livestock or crops respectively;

(c)  an epizootic, a plant disease or a plant pest outbreak affecting part or all of the beneficiary's livestock or crops respectively;

Text proposed by the Commission

Amendment

Member States may apply point (a) of the first paragraph to a group of agricultural holdings affected by the same natural disaster or meteorological event.

Text proposed by the Commission

Amendment

The EAFRD shall be implemented in shared management between the Member States and the Union. It shall finance the Union's financial contribution to the CAP Strategic Plan rural development interventions referred to in Chapter 4 of Title III of Regulation (EU) …/…[CAP Strategic Plan Regulation].

The EAFRD shall be implemented in shared management between the Member States and the Union. It shall finance the Union's financial contribution to the CAP Strategic Plan rural development interventions referred to in Chapter 4 of Title III of Regulation (EU) …/…[CAP Strategic Plan Regulation] and actions under Article 112 of that Regulation.

Text proposed by the Commission

Amendment

The Funds may, either on the initiative of the Commission or on its behalf, each directly finance the preparatory, monitoring, administrative and technical support activities, and the evaluation, audit and inspection, required to implement the CAP. In particular, they shall include:

The Funds may, either on the initiative of the Commission or on its behalf, each directly finance the increased preparatory, monitoring, administrative and technical support activities, and the evaluation, audit and inspection required to implement the CAP. The EAFRD contribution referred to in Article 86(3) of Regulation (EU) …/… [CAP Strategic Plan Regulation] shall take into account the increase in administrative capacity building as regards the new governance and control systems in the Member States. In particular, they shall include:

Text proposed by the Commission

Amendment

(f)  studies on the CAP and evaluations of measures financed by the Funds, including improvement of evaluation methods and exchange of information on practices under the CAP, as well as studies carried out with the European Investment Bank (EIB);

(f)  studies on the CAP and evaluations of measures financed by the Funds, including the improvement of evaluation methods and the exchange of information on best practices under the CAP and consultations with the relevant stakeholders as well as studies carried out with the European Investment Bank (EIB);

Text proposed by the Commission

Amendment

(h)  contribution to measures relating to the dissemination of information, raising awareness, promoting cooperation and exchanging experiences at Union level, and taken in the context of rural development interventions, including the networking of the parties concerned;

(h)  contribution to measures relating to the dissemination of information, raising awareness, promoting cooperation and exchanging experiences with the relevant stakeholders at Union level, and taken in the context of rural development interventions, including the networking of the parties concerned;

Text proposed by the Commission

Amendment

Article 7a

Competent authority

1.  Member States shall designate an authority at ministerial level responsible for:

(a)  the issuing, reviewing and withdrawing of accreditation of paying agencies referred to in Article 9(2);

(b)  the issuing, reviewing and withdrawing of the accreditation of the coordinating body referred to in Article 10;

(c)  the appointment, and revocation thereof, of the certification body referred to in Article 11;

(d)  carrying out the tasks assigned to the competent authority under this Chapter taking into account the principle of proportionality.

2.  On the basis of an examination of the criteria to be adopted by the Commission in accordance with Article 12(1), the competent authority shall, by way of a formal act, decide:

(a)  on the issuing or, following a review, the withdrawal of the accreditation of the paying agency and the coordinating body;

(b)  on the appointment, and revocation thereof, of the certification body.

The competent authority shall inform the Commission without delay of accreditation or appointment of the paying agencies, coordinating body and certification body, and of the withdrawal or revocation thereof.

The Commission shall promote the exchange of best practices for the operation of governance systems between Member States.

Text proposed by the Commission

Amendment

Paying agencies and coordinating bodies

Paying agencies

Text proposed by the Commission

Amendment

Paying agencies shall be departments or bodies of the Member States responsible for the management and control of expenditure referred in Article 5(2) and Article 6.

Paying agencies shall be departments or bodies of the Member States and, if applicable, of regions responsible for the management and control of expenditure referred in Article 5(2) and Article 6.

Text proposed by the Commission

Amendment

Member States shall accredit, as paying agencies, departments or bodies which have an administrative organisation and a system of internal control which provide sufficient guarantees that payments are legal, regular and properly accounted for. To this end, paying agencies shall comply with minimum conditions for the accreditation with regard to the internal environment, control activities, information and communication and monitoring laid down by the Commission pursuant to point (a) of Article 10(1).

Member States shall accredit, as paying agencies, departments or bodies which have an administrative organisation and a system of internal control which provide sufficient guarantees that payments are legal, regular and properly accounted for. To this end, paying agencies shall comply with minimum conditions for the accreditation with regard to the internal environment, control activities, information and communication and monitoring laid down by the Commission pursuant to point (a) of Article 12(1).

Text proposed by the Commission

Amendment

The accreditation of paying agencies for the period 2014-2020 shall be carried over to the programming period 2021-2027, provided that they have informed the competent authority that they are in compliance with the accreditation criteria, and unless a review carried out pursuant to point (a) of the first subparagraph of Article 12(2) shows that this is not the case.

Text proposed by the Commission

Amendment

Member States shall not appoint any new additional paying agency after the date of entry into force of this Regulation.

Member States may appoint new paying agencies after … [the date of entry into force of this Regulation], provided that:

(a)  the number of accredited paying agencies does not increase in relation to the situation on 31 December 2019; or

(b)  the new paying agencies are appointed pursuant to an administrative reorganisation in the Member State concerned.

Text proposed by the Commission

Amendment

For the purposes of Article 63(5) and (6) of Regulation (EU, Euratom) 2018/… [the new Financial Regulation] ('the Financial Regulation'), the person in charge of the accredited paying agency shall, by 15 February of the year following the financial year concerned, draw up and provide the Commission with the following:

For the purposes of Article 63(5) and (6) of Regulation (EU, Euratom) 2018/1046 ('the Financial Regulation'), the person in charge of the accredited paying agency shall, by 15 February of the year following the financial year concerned, draw up and provide the Commission with the following:

Text proposed by the Commission

Amendment

(a)  the annual accounts for the expenditure incurred in carrying out the tasks entrusted to their accredited paying agency, as provided for in point (a) of Article 63(5) of the Financial Regulation, accompanied by the requisite information for their clearance in accordance with Article 51;

(a)  the annual accounts for the expenditure incurred in carrying out the tasks entrusted to their accredited paying agency, as provided for in point (a) of Article 63(5) of the Financial Regulation, accompanied by the requisite information for their clearance in accordance with Article 51(1):

Text proposed by the Commission

Amendment

(b)  the annual performance report referred to in Article 52(1) showing that the expenditure was made in accordance with Article 35;

(b)  the annual clearance report referred to in Article 51(2) containing the information on realised outputs and expenditure, and showing that the expenditure was made in accordance with Article 35;

Text proposed by the Commission

Amendment

(ii)  the proper functioning of the governance systems put in place, which give the necessary guarantees concerning the outputs reported in the annual performance report, as provided for in points (b) and (c) of Article 63(6) of the Financial Regulation,

(ii)  the proper functioning of the internal control systems put in place and compliance with the basic Union requirements which give, as provided for in points (b) and (c) of Article 63(6) of the Financial Regulation, the necessary guarantees, concerning the outputs reported in the annual clearance report and the compliance of the types of interventions referred to in Regulation (EU) …/… [CAP Strategic Plan Regulation] with applicable Union law;

Text proposed by the Commission

Amendment

The annual clearance report shall be submitted for the first time by …[two years after the date of application of this Regulation] and then each subsequent year until and including 2030. The first report shall cover the first two financial years after … [year of the date of application of this Regulation]. Of those direct payments referred to in Chapter II of Title III of Regulation (EU) …/… [CAP Strategic Plan Regulation], the report shall cover only the financial year … [year following that of the date of application of this Regulation].

Text proposed by the Commission

Amendment

3a.  The person in charge of the accredited paying agency shall draw up and provide the Commission with the performance report, using the data referred to in Article 129, reflecting the progress made towards the achievement of the objectives set out in the CAP National Strategic Plan, and including, where feasible, reporting on impacts, by 15 April of the second calendar year after … [ the date of entry into force of this Regulation] and every two years thereafter.

Text proposed by the Commission

Amendment

4.  Where more than one paying agency is accredited, Member States shall appoint a public coordinating body, to which it shall assign the following tasks:

deleted

(a)  to collect the information to be provided to the Commission and to send that information to the Commission;

(b)  to furnish the annual performance report referred to in Article 52(1);

(c)  to take or coordinate actions with a view to resolving any deficiencies of a common nature and to keep the Commission informed of any follow-up;

(d)  to promote and ensure harmonised application of Union rules.

As regards the processing of the financial information referred to in point (a) of the first subparagraph, the coordinating body shall be subject to specific accreditation by the Member States.

The annual performance report provided by the coordinating body shall be covered by the scope of the opinion referred to in Article 11(1) and its transmission shall be accompanied by a management declaration covering the entirety of that report.

Text proposed by the Commission

Amendment

Article 9

deleted

Competent authority

1.  Member States shall designate an authority at ministerial level responsible for:

(a)  the issuing, reviewing and withdrawing of accreditation of paying agencies referred to in Article 8(2);

(b)  the accreditation of the coordinating body referred to in Article 8(4);

(c)  the appointing of the certification body referred to in Article 11;

(d)  carrying out the tasks assigned to the competent authority under this Chapter.

2.  The competent authority shall, by way of a formal act, decide on the issuing or, following a review, the withdrawal of the accreditation of the paying agency and the coordinating body on the basis of an examination of the accreditation criteria to be adopted by the Commission in accordance with point (a) of Article 10(1). The competent authority shall inform the Commission of accreditations and withdrawals of accreditations without delay.

Text proposed by the Commission

Amendment

Article 10a

Coordinating bodies

1.  Where more than one paying agency is accredited, Member States shall appoint a public coordinating body, to which it shall assign the following tasks:

(a)  to collate the documents, data and information to be provided to the Commission and to send that information to the Commission;

(b)  to furnish the annual accounts, the annual clearance report referred to in Article 51(2) and the performance report, by condensing and collating the data and documents submitted by paying agencies;

(c)  to take or coordinate actions with a view to resolving any deficiencies of a common nature and to keep the Commission informed of any follow-up;

(d)  to ensure the harmonised application of Union rules.

As regards the processing of the financial information referred to in point (a) of the first subparagraph, the coordinating body shall be subject to specific accreditation by the Member States.

The annual accounts, the annual clearance report and the performance report provided by the coordinating body shall be covered by the scope of the opinion referred to in Article 11(1) and transmitted together with a management declaration covering the entirety of that report.

Text proposed by the Commission

Amendment

However a Member State that designates more than one certification body shall also appoint a public certification body at the national level to be responsible for coordination.

Text proposed by the Commission

Amendment

(c)  the performance reporting on output indicators for the purposes of the annual performance clearance referred to in Article 52 and the performance reporting on result indicators for the multiannual performance monitoring referred to in Article 115 of Regulation (EU) …/… [CAP Strategic Plan Regulation], demonstrating that Article 35 of this Regulation is complied with, is correct

(c)  the reporting on the outputs for the purposes of the annual clearance referred to in Article 51(2), demonstrating that Article 35 of this Regulation is complied with, is correct;

Text proposed by the Commission

Amendment

(d)  the expenditure for the measures laid down in Regulation (EU) No 1308/2013 for which reimbursement has been requested from the Commission is legal and regular. ;

(d)  the reporting for the purpose of the multiannual performance monitoring referred to in Articles 115 and 121 of Regulation (EU) …/… [CAP Strategic Plan Regulation], reflecting the operations carried out and the progress made towards the achievement of the objectives, as set out in the CAP National Strategic Plan, is correct;

Text proposed by the Commission

Amendment

(d a)  the expenditure for the types of interventions referred to in Regulation (EU) …/… [CAP Strategic Plan Regulation] is compliant with applicable Union law;

Text proposed by the Commission

Amendment

(d b)  the expenditure for the measures laid down in Regulation (EU) No 1308/2013, Regulation (EU) No 228/2013, Regulation (EU) No 229/2013 and Regulation (EU) 1144/2014 for which reimbursement has been requested from the Commission is legal and regular.

Text proposed by the Commission

Amendment

That opinion shall also state whether the examination calls into question the assertions made in the management declaration referred to in point(c) of Article 8(3).

That opinion shall also state whether the examination calls into question the assertions made in the management declaration referred to in point (c) of Article 9(3).

Text proposed by the Commission

Amendment

2.  The certification body shall have the necessary technical expertise. It shall be operationally independent from the paying agency and the coordinating body concerned as well as from the authority which has accredited that agency and the bodies responsible for the implementation and the monitoring of the CAP.

2.  The certification body shall have the necessary technical expertise, in terms of both financial management and also related to assessing the achievement of the intended aims of the interventions. All data and information used to enable certifying bodies to provide assurance that targets are being met, as well as those underlying the assumptions made, shall be made available transparently. It shall be operationally independent from the paying agency and the coordinating body concerned as well as from the authority which has accredited that agency and the bodies responsible for the implementation and the monitoring of the CAP.

Text proposed by the Commission

Amendment

3.  The Commission shall adopt implementing acts laying down rules on the tasks of the certification bodies, including the checks to be carried out and the bodies subject to those checks, and on the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies.

deleted

The implementing acts shall also set out:

(a)  the audit principles on which the opinions of the certification bodies are based, including an assessment of the risks, internal controls and the level of audit evidence required;

(b)  the audit methods to be used, by the certification bodies, having regard to international standards on auditing, to deliver their opinions.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

Text proposed by the Commission

Amendment

3 a.  Once Member States’ competent authorities have appointed the certification bodies referred to in this Article and have informed the Commission thereof, the Commission shall present a comprehensive list of all such bodies to the European Parliament, no later than one year after … [the date of application of this Regulation] and a second time no later than four years thereafter.

Text proposed by the Commission

Amendment

1.  The annual ceiling for EAGF expenditure shall be constituted by the maximum amounts set for it under Regulation (EU, Euratom)[COM(2018) 322 final].

1.  The annual ceiling for EAGF expenditure shall be constituted by the maximum amounts set for it under Regulation (EU, Euratom)[COM(2018) 322 final] that set individual limits for the Member States.

Text proposed by the Commission

Amendment

Article 12a

Commission powers

1.  The Commission is empowered to adopt delegated acts in accordance with Article 100 supplementing this Regulation with rules on:

(a)  the minimum conditions for the accreditation of the paying agencies referred to in Article 9(2) and of the coordinating bodies referred to in Article 10(4);

(b)  the obligations of the paying agencies as regards public intervention and the rules concerning the content of their management and control responsibilities;

(c)  the procedures for issuing, withdrawing and reviewing accreditation of paying agencies and coordinating bodies and for the appointment, and revocation thereof, of certification bodies, as well as the procedures for the supervision of the accreditation of paying agencies, taking into account the principle of proportionality;

(d)  the work and checks underlying the management declaration of the paying agencies, referred to in point (c) of Article 9(3);

(e)  the functioning of the coordinating body and the notification of information to the Commission under Article 10(4).

2.  The Commission shall adopt delegated acts in accordance with Article 100 supplementing this Regulation by laying down rules on the tasks of the certification bodies, including the checks to be carried out and the bodies subject to those checks, and on the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies.

Those delegated acts shall also set out:

(a)  the audit principles on which the opinions of the certification bodies are based, including an assessment of the risks, internal controls and the level of audit evidence required; and

(b)  the audit methods to be used, by the certification bodies, having regard to international standards on auditing, to deliver their opinions, which may include the possibility of monitoring paying agencies' on-the-spot checks.

Text proposed by the Commission

Amendment

A reserve intended to provide additional support for the agricultural sector for the purpose of market management or stabilisation or in the case of crises affecting the agricultural production or distribution (“the agricultural reserve”) shall be established at the beginning of each year in the EAGF.

An EU agricultural crisis reserve (‘the reserve’) shall be established in the budget of the CAP to provide additional support for the agricultural sector for the purpose of market management or stabilisation and to respond promptly in the case of crises affecting the agricultural production or distribution.

Text proposed by the Commission

Amendment

Appropriations for the agricultural reserve shall be entered directly in the Union's budget.

The appropriations for the reserve shall be entered directly in the Union's budget and deployed, in the financial year or years for which additional support is required, in order to fund the following measures:

(a)   measures to stabilise agricultural markets under Articles 8 to 21 of Regulation (EU) No 1308/2013;

(b)  exceptional measures under Chapter I, Part V of Regulation (EU) No 1308/2013;

(c)  measures to complement the income stabilisation tools referred to in Article 70 of Regulation (EU) .../... [CAP Strategic Plans Regulation] in the event of market crises occurring with a frequency higher than a predefined sector-specific threshold.

Text proposed by the Commission

Amendment

The Commission is empowered to adopt delegated acts in accordance with Article 100 in order to supplement this Article by defining the sector-specific thresholds required to trigger the measures to complement the income stabilisation tools as referred to in point (c) of paragraph 1 of this Article.

Text proposed by the Commission

Amendment

Funds from the agricultural reserve shall be made available for measures under Articles 8 to 21 and 219, 220, and 221 of Regulation (EU) No 1308/2013 for the year or years for which the additional support is required.

deleted

Text proposed by the Commission

Amendment

An initial amount of EUR 400 000 000 in current prices shall be set up in 2021 in addition to the EAGF and EAFRD budgets.

Text proposed by the Commission

Amendment

The amount of the agricultural reserve shall be at least EUR 400 million in current prices at the beginning of each year of the period 2021-2027. The Commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year and taking into account available appropriations under the EAGF.

At the beginning of each year of the period 2021-2027, the amount of the EU agricultural crisis reserve shall be at least equal to the initial amount allocated in 2021, with the potential for increases over that period up to a ceiling of EUR 1 500 000 000 in current prices, without prejudice to the relevant decisions taken by the budgetary authority.

The amount of the EU agricultural crisis reserve shall be adjusted through the annual budgetary procedure or during the year when appropriate in view of crisis developments or perspectives concerning the current or following years and taking into account available revenues assigned to the EAGF or margins available under the EAGF sub-ceiling.

Text proposed by the Commission

Amendment

In the event that such available appropriations are not sufficient, financial discipline may be used to fund the reserve up to the initial amount referred to in the first subparagraph.

Text proposed by the Commission

Amendment

By way of derogation from point (d) of Article 12(2) of the Financial Regulation, non-committed appropriations of the agricultural reserve shall be carried over without time limitation to finance the agricultural reserve in the following financial years.

By way of derogation from point (d) of Article 12(2) of the Financial Regulation, non-committed appropriations of the reserve shall be carried over without time limitation to finance the reserve in the following financial years.

Text proposed by the Commission

Amendment

Moreover, by derogation from point (d) of Article 12(2) of the Financial Regulation, the total unused amount of the crisis reserve available at the end of year 2020 shall be carried over to the year 2021 without being returned to the budgetary lines which cover the actions referred to in point (c) of Article 5(2) and made available for the financing of the agricultural reserve.

deleted

Text proposed by the Commission

Amendment

An adjustment rate for direct payments interventions referred to in point (c) of Article 5(2) of this Regulation and Union financial contribution to the specific measures referred to in point (f) of Article 5(2) of this Regulation and granted under Chapter IV of Regulation (EU) No 228/2013 and Chapter IV of Regulation (EU) No 229/2013, ("the adjustment rate") shall be determined by the Commission when the forecasts for the financing of the interventions and measures financed under that sub-ceiling for a given financial year indicate that the applicable annual ceilings will be exceeded.

An adjustment rate for direct payments interventions referred to in point (c) of Article 5(2) of this Regulation ("the adjustment rate") shall be determined by the Commission when the forecasts for the financing of the interventions and measures financed under that sub-ceiling for a given financial year indicate that the applicable annual ceilings will be exceeded.

Text proposed by the Commission

Amendment

The adjustment rate determined in accordance with this Article shall only apply to direct payments in excess of EUR 2 000 to be granted to beneficiaries in the corresponding calendar year.

Text proposed by the Commission

Amendment

6.  The Commission may adopt implementing acts determining supplementary payments or deductions adjusting the payments made in accordance with paragraph 3, without applying the procedure referred to in Article 101.

6.  The Commission may adopt implementing acts determining supplementary payments or deductions adjusting the payments made in accordance with paragraph 3, applying the procedure referred to in Article 101.

Text proposed by the Commission

Amendment

In accordance with point (b) of Article 7, the Commission shall supply that satellite data free of charge to the authorities competent for the area monitoring system or to suppliers of services authorised by those bodies to represent them.

In accordance with point (b) of Article 7, the Commission shall supply that satellite data free of charge to the authorities competent for the area monitoring and control system or to suppliers of services authorised by those bodies to represent them.

Text proposed by the Commission

Amendment

The Commission may entrust specialised entities to carry out tasks relating to techniques or working methods in connection with the area monitoring system referred to in point (c) of Article 64(1).

The Commission may entrust specialised entities to carry out tasks relating to techniques or working methods in connection with the area monitoring and control system referred to in point (c) of Article 64(1).

Text proposed by the Commission

Amendment

(b)  ensure agri-economic and agri-environmental-climate monitoring of agricultural land use and agricultural land use change, including agro-forestry, and monitoring of the condition of crops so as to enable estimates to be made, in particular as regards yields and agricultural production and agricultural impacts associated with exceptional circumstances;

(b)  ensure agri-economic and agri-environmental-climate monitoring of agricultural land use and agricultural land use change, including agro-forestry, and monitoring of the condition of soil, water, crops and other vegetation so as to enable estimates to be made, in particular as regards yields and agricultural production and agricultural impacts associated with exceptional circumstances, and assessment of the resilience of agricultural systems against climate change and progress towards the relevant Sustainable Development Goals;

Text proposed by the Commission

Amendment

(d)  contribute to transparency of world markets;

(d)  contribute to specific measures increasing the transparency of world markets including market monitoring, taking account of Union objectives and commitments including that to Policy Coherence for Development.

Text proposed by the Commission

Amendment

Pursuant to point (c) of Article 7 the Commission shall finance the actions concerning the collection or purchase of data needed to implement and monitor the CAP, including satellite data, geo-spatial data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions, remote sensing used to assist in the monitoring of agricultural land use change and soil health and the updating of agri-meteorological and econometric models. Where necessary, those actions shall be carried out in collaboration with EEA, JRC, national laboratories and bodies or with the involvement of the private sector.

Pursuant to Article 7 the Commission shall finance the actions concerning the collection or purchase of data needed to implement and monitor the CAP and its effects, including satellite data, geo-spatial data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions, remote sensing used to assist in the monitoring of agricultural land use change and soil health and the updating of agri-meteorological and econometric models. Where necessary, those actions shall be carried out in collaboration with EEA, JRC, Eurostat, national laboratories and bodies or with the involvement of the private sector, while ensuring impartiality, transparency and the free availability of information to the greatest possible extent.

Text proposed by the Commission

Amendment

(a)  in 2021: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan;

(a)  in 2021: 1,5 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan;

Text proposed by the Commission

Amendment

(b)  in 2022: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan;

(b)  in 2022: 1,5 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan;

Text proposed by the Commission

Amendment

3.  No additional prefinancing shall be paid or recovered where a transfer to or from the EAFRD has taken place in accordance with Article 90 of Regulation (EU) …/… [CAP Strategic Plan Regulation].

3.  Additional prefinancing may be paid or recovered where a transfer to or from the EAFRD has taken place in accordance with Article 90 of Regulation (EU) …/… [CAP Strategic Plan Regulation].

Text proposed by the Commission

Amendment

4.  Interest generated on the prefinancing shall be used for the CAP Strategic Plan concerned and deducted from the amount of public expenditure indicated on the final declaration of expenditure.

4.  Interest generated on the prefinancing shall be used for the CAP Strategic Plan or the Regional Intervention Programme concerned and deducted from the amount of public expenditure indicated on the final declaration of expenditure.

Text proposed by the Commission

Amendment

1.  Interim payments shall be made for each CAP Strategic Plan. They shall be calculated by applying the contribution rate for each type of intervention to the public expenditure effected pertaining to it as referred to in Article 85 of Regulation (EU) …/…[CAP Strategic Plan Regulation].

1.  Interim payments shall be made for each CAP Strategic Plan or, where appropriate, for each Regional Intervention Programme. They shall be calculated by applying the co-financing rate for each type of intervention to the public expenditure effected pertaining to it as referred to in Article 85 of Regulation (EU) …/…[CAP Strategic Plan Regulation].

Text proposed by the Commission

Amendment

(a)  the amount included in the first declaration of expenditure shall need to have been previously paid to the financial instrument and may be up to 25% of the total amount of the CAP Strategic Plan contribution committed to the financial instruments under the relevant funding agreement;

(a)  the amount included in the first declaration of expenditure shall need to have been previously paid to the financial instrument and may be up to 25% of the total amount of the CAP Strategic Plan co-financing committed to the financial instruments under the relevant funding agreement;

Text proposed by the Commission

Amendment

1.  After receiving the last annual performance report on the implementation of a CAP Strategic Plan, the Commission shall pay the balance, subject to the availability of resources, on the basis of the financial plan in force at the level of the types of EAFRD interventions, the annual accounts for the last execution year for the relevant CAP Strategic Plan and of the corresponding clearance decisions. Those accounts shall be presented to the Commission no later than six months after the final eligibility date of expenditure provided for in Article 80(3) of Regulation (EU) No…/…[CAP Strategic Plan Regulation] and shall cover the expenditure effected by the paying agency up to the last eligibility date of expenditure.

1.  After receiving the last annual clearance report on the implementation of a CAP Strategic Plan, the Commission shall pay the balance, on the basis of the financial plan in force at the level of the types of EAFRD interventions, the annual accounts for the last execution year for the relevant CAP Strategic Plan and of the corresponding clearance decisions. Those accounts shall be presented to the Commission no later than six months after the final eligibility date of expenditure provided for in Article 80(3) of Regulation (EU) No…/…[CAP Strategic Plan Regulation] and shall cover the expenditure effected by the paying agency up to the last eligibility date of expenditure.

Text proposed by the Commission

Amendment

3.  If, by the time limit set out in paragraph 1, the Commission has not received the last annual performance report and the documents needed for clearance of the accounts of the last execution year of the Plan, the balance shall be automatically decommitted in accordance with Article 32.

3.  If, by the time limit set out in paragraph 1, the Commission has not received the last annual clearance report and the documents needed for clearance of the accounts of the last execution year of the Plan, the balance shall be automatically decommitted in accordance with Article 32.

Text proposed by the Commission

Amendment

1.  The Commission shall automatically decommit any portion of a budget commitment for rural development interventions in a CAP Strategic Plan that has not been used for the purposes of prefinancing or for making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in Article 30(3) has been presented to it in relation to expenditure effected by 31 December of the second year following that of the budget commitment.

1.  The Commission shall automatically decommit any portion of a budget commitment for rural development interventions in a CAP Strategic Plan that has not been used for the purposes of prefinancing or for making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in Article 30(3) has been presented to it in relation to expenditure effected by 31 December of the third year following that of the budget commitment.

Text proposed by the Commission

Amendment

3.  In the event of legal proceedings or of an administrative appeal having suspensory effect, the period for automatic decommitment referred to in paragraph 1 or 2 shall, in respect of the amount relating to the operations concerned, be interrupted for the duration of those proceedings or that administrative appeal, provided that the Commission receives a substantiated notification from the Member State by 31 January of year N + 3.

3.  In the event of legal proceedings or of an administrative appeal having suspensory effect, the period for automatic decommitment referred to in paragraph 1 or 2 shall, in respect of the amount relating to the operations concerned, be interrupted for the duration of those proceedings or that administrative appeal, provided that the Commission receives a substantiated notification from the Member State by 31 January of year N + 4.

Text proposed by the Commission

Amendment

(a)  that part of the budget commitments for which a declaration of expenditure has been made but for which reimbursement has been reduced or suspended by the Commission at 31 December of year N + 2;

(a)  that part of the budget commitments for which a declaration of expenditure has been made but for which reimbursement has been reduced or suspended by the Commission at 31 December of year N + 3;

Text proposed by the Commission

Amendment

Under EAFRD, an operation may receive different forms of support from the CAP Strategic Plan and from other European Structural and Investments Funds (ESI) Funds or Union instruments only if the total cumulated aid amount granted under the different forms of support does not exceed the highest aid intensity or aid amount applicable to that type of intervention as referred to in Title III of Regulation (EU) No…/… (CAP Strategic Plan Regulation). In such cases Member States shall not declare expenditure to the Commission for:

Under EAFRD, an operation may receive different forms of support from the CAP Strategic Plan and from other European Structural and Investments Funds (ESI) Funds or Union instruments only if the total cumulated aid amount granted under the different forms of support does not exceed the highest aid intensity or aid amount applicable to that type of intervention as referred to in Title III of Regulation (EU) No…/… (CAP Strategic Plan Regulation). In such cases expenditure shall not be declared for either of the following:

Text proposed by the Commission

Amendment

The expenditure referred to in Article 5(2) and Article 6 may be financed by the Union only if:

The expenditure for the measures laid down in Regulation (EU) No 1308/2013, Regulation (EU) No 228/2013, Regulation (EU) No 229/2013 and Regulation (EU) 1144/2014 may be financed by the Union only if:

Text proposed by the Commission

Amendment

(b)  it has been effected in accordance with the applicable Union rules, or

(b)  it has been effected in accordance with the applicable Union rules.

Text proposed by the Commission

Amendment

(c)  as regards types of interventions referred to in Regulation (EU) …/… [CAP Strategic Plan Regulation],

deleted

(i)  it is matched by a corresponding reported output, and

(ii)  it has been effected in accordance with the applicable governance systems, not extending to the eligibility conditions for individual beneficiaries laid down in the national CAP Strategic Plans.

Text proposed by the Commission

Amendment

The expenditure for the measures laid down in Regulation (EU) …/… [CAP Strategic Plan Regulation] may be financed by the Union only if:

(a)   it has been effected by accredited paying agencies;

(b)  it is matched by a corresponding reported output;

(c)  it has been effected in accordance with the applicable governance systems, respecting the basic Union requirements, not extending to the eligibility conditions for individual beneficiaries.

Text proposed by the Commission

Amendment

2.  Where the Commission establishes from declarations of expenditure or the information referred to in Article 88 that the payment deadlines referred to in Article 36 have not been complied with, the Member State shall be afforded the opportunity to submit its comments within a period which shall not be less than 30 days. Where the Member State fails to submit its comments within the said period or where the Commission considers the response to be unsatisfactory, the Commission may reduce the monthly or interim payments to the Member State concerned in the framework of the implementing acts concerning the monthly payments referred to in Article 19(3) or in the framework of the interim payments referred to in Article 30.

2.  Where the Commission establishes from declarations of expenditure or the information referred to in Article 88 that the payment deadlines referred to in Article 36 have not been complied with, the Member State shall be afforded the opportunity to submit its comments within a period which shall not be less than 30 days. Where the Member State fails to submit its comments within the said period or where the Commission has concluded that the comments provided are manifestly insufficient, the Commission may reduce the monthly or interim payments to the Member State concerned in the framework of the implementing acts concerning the monthly payments referred to in Article 19(3) or in the framework of the interim payments referred to in Article 30. The Commission shall ensure that any reductions do not result in additional delays or difficulties for final beneficiaries in the Member State concerned.

Text proposed by the Commission

Amendment

3.  Reductions under this Article shall be without prejudice to Article 51.

3.  Reductions under this Article shall be applied in accordance with the principle of proportionality and without prejudice to Article 51.

Text proposed by the Commission

Amendment

Where Member States do not submit the documents referred to in Articles 8(3) and 11(1) by the deadlines, as provided for in Article 8(3), the Commission may adopt implementing acts suspending the total amount of the monthly payments referred to in Article 19(3). The Commission shall reimburse the suspended amounts when it receives the missing documents from the Member State concerned, provided that the date of receipt is not later than six months after the deadline.

Where Member States do not submit the documents and data referred to in Articles 8 and 11(1) within the deadlines, as provided for in Article 8, and, where applicable, in Article 129 (1) of Regulation (EU) …/… [CAP Strategic Plan Regulation], the Commission shall adopt implementing acts suspending the total amount of the monthly payments referred to in Article 19(3). The Commission shall reimburse the suspended amounts when it receives the missing documents from the Member State concerned, provided that the date of receipt is not later than six months after the deadline.

Text proposed by the Commission

Amendment

Where, in the framework of the annual performance clearance referred to in Article 52, the Commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output is more than 50% and the Member State cannot provide duly justified reasons, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30.

Where, in the framework of the annual clearance referred to in Article 51(2), the Commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output, is more than 50% and the Member State cannot provide duly justified reasons, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30.

Text proposed by the Commission

Amendment

In case of delayed or insufficient progress towards targets, as set out in the national CAP Strategic Plan and monitored in accordance with Articles 115 and 116 of Regulation (EU) …/…[CAP Strategic Plan Regulation], the Commission may ask the Member State concerned to implement the necessary remedial actions in accordance with an action plan with clear progress indicators, to be established in consultation with the Commission.

In the case of delayed or insufficient progress towards milestones and where the reported value of one or more result indicators as set out in the national CAP Strategic Plan and monitored in accordance with Articles 115 and 116 of Regulation (EU) …/…[CAP Strategic Plan Regulation] reveals a shortfall of more than 25 % for the reporting year concerned, Member States shall submit justification for that shortfall.

Text proposed by the Commission

Amendment

The Commission may adopt implementing acts laying down further rules on the elements of action plans and the procedure for setting up the action plans. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

Where the Member State cannot provide duly justified reasons, the Commission may ask the Member State concerned to present and implement an action plan, to be established in consultation with the Commission. The action plan shall set out the necessary remedial actions and the expected timeframe for its execution.

For that purpose, the Commission shall adopt delegated acts in accordance with Article 100, supplementing this Regulation by laying down further rules on the elements of action plans including in particular a definition of progress indicators and the procedure for setting up the action plans.

Text proposed by the Commission

Amendment

Where the Member States fails to submit or to implement the action plan referred to in paragraph 1 or if that action plan is manifestly insufficient to remedy the situation, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30.

Where the Member State fails to submit or to implement the action plan referred to in paragraph 1 or if the action plan presented by the Member State is manifestly insufficient to remedy the situation, the Commission may, after consulting the Member State concerned and granting it an opportunity to respond, adopt implementing acts suspending the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30. The Commission shall take into account the timeframe indicated for the execution of the action plan before any suspension procedure is initiated.

Text proposed by the Commission

Amendment

Paragraph 1 of this Article shall apply from ... [two years after the date of application of this Regulation].

Text proposed by the Commission

Amendment

In case of serious deficiencies in the functioning of the governance systems, the Commission may ask the Member State concerned to implement the necessary remedial actions in accordance with an action plan with clear progress indicators, to be established in consultation with the Commission.

In the case of serious deficiencies in the functioning of the governance systems, the Commission shall, where necessary, ask the Member State concerned to implement the necessary remedial actions in accordance with an action plan with clear progress indicators, to be established in consultation with the Commission.

Text proposed by the Commission

Amendment

The Commission may adopt implementing acts laying down further rules on the elements of the action plans and the procedure for setting up the action plans. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

The Commission may adopt delegated acts in accordance with Article 100, supplementing this Regulation by laying down further rules on the elements of the action plans and the procedure for setting up the action plans.

Text proposed by the Commission

Amendment

The suspension shall be applied in accordance with the principle of proportionality to the relevant expenditure effected by the Member State where the deficiencies exist, for a period to be determined in the implementing acts referred to in the first subparagraph, which shall not exceed 12 months. If the conditions for the suspension continue to be met, the Commission may adopt implementing acts prolonging that period for further periods not exceeding 12 months in total. The amounts suspended shall be taken into account when adopting the implementing acts referred to in Article 53.

The suspension shall be applied in accordance with the principle of proportionality to the relevant expenditure effected by the Member State where the deficiencies exist, taking into account the findings of checks carried out by the Commission pursuant to Article 47, for a period to be determined in the implementing acts referred to in the first subparagraph, which shall not exceed 12 months. If the conditions for the suspension continue to be met, the Commission may adopt implementing acts prolonging that period for further periods not exceeding 12 months in total. The amounts suspended shall be taken into account when adopting the implementing acts referred to in Article 53.

Text proposed by the Commission

Amendment

The implementing acts determining the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30 shall take account of the implementing acts adopted under the first subparagraph of this paragraph.

The implementing acts determining the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30 shall take account of the delegated acts adopted under the second subparagraph of paragraph 1.

Text proposed by the Commission

Amendment

(a)  prior to 1 December but not before 16 October, pay advances of up to 50 % for direct payments interventions;

(a)  prior to 1 December but not before 16 October, pay advances of up to 50 % for direct payments interventions and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013 respectively;

Text proposed by the Commission

Amendment

3.  Member States may decide to pay advances of up to 50% under the interventions referred to in Articles 68 and 71 of Regulation (EU) No…/…[CAP Strategic Plan Regulation].

3.  Member States may decide to pay advances of up to 50% under the interventions referred to in Articles 68 and 71 and Chapter III of Title III of Regulation (EU) …/… [CAP Strategic Plan Regulation] as well as Section I of Chapter II of Regulation (EU) No 1308/2013.

Text proposed by the Commission

Amendment

2.  The sums referred to in paragraph 1 shall be paid to the Union's budget and, in the event of reuse, shall be used exclusively to finance EAGF or EAFRD expenditure.

2.  The sums referred to in paragraph 1 shall be paid to the Union's budget and, in the event of reuse, shall be used exclusively to finance EAGF or EAFRD expenditure, respectively, and shall predominantly fund the agricultural reserve established under the EAGF, within the limits laid down in Article 14.

Text proposed by the Commission

Amendment

The provision of information financed pursuant to point (e) of Article 7 shall aim, in particular, to help explain, implement and develop the CAP and to raise public awareness of its content and objectives to reinstate consumer confidence following crises through information campaigns, to inform farmers and other parties active in rural areas and to promote the European model of agriculture, as well as to help citizens understand it.

The provision of information financed pursuant to point (e) of Article 7 shall aim, in particular, to help explain, implement and develop the CAP and to raise public awareness of its content and objectives including its interaction with the climate, environment, animal welfare and development. This is to inform citizens about the challenges faced in agriculture and food, to inform farmers and consumers, to restore consumer confidence following crises through information campaigns, to inform farmers and other parties active in rural areas and to promote a more sustainable Union model of agriculture, as well as to help citizens understand it.

Text proposed by the Commission

Amendment

It shall supply coherent, objective and comprehensive information, both inside and outside the Union.

It shall supply coherent, impartial, evidence-based, objective and comprehensive information, both inside and outside the Union by means of a communication plan.

Text proposed by the Commission

Amendment

The Commission is empowered to adopt delegated acts in accordance with Article 100 in order to supplement this Regulation concerning the conditions under which certain types of expenditure and revenue under the Funds are to be compensated.

The Commission is empowered to adopt delegated acts in accordance with Article 100 in order to supplement this Regulation concerning the conditions relating to the details of expenditure declarations under which certain types of expenditure and revenue under the Funds are to be compensated.

Text proposed by the Commission

Amendment

For the purposes of Article 127 of the Financial Regulation, the Commission shall take assurance from the work of the certification bodies referred to in Article 11 of this Regulation, unless it has informed the Member State that it cannot rely on the work of the certification body for a given financial year, and it shall take it into account in its risk assessment of the need for Commission audits in the Member State concerned.

For the purposes of Article 127 of the Financial Regulation, the Commission shall take assurance from the work of the certification bodies referred to in Article 11 of this Regulation, and shall take it into account in its risk assessment of the need for Commission audits in the Member State concerned, unless it has informed that Member State that it is unable to rely on that work.

Text proposed by the Commission

Amendment

(b)  whether the expenditure falling within the scope of Articles 5(2) and 6 and corresponding to the interventions referred to in Regulation (EU) …/…[CAP Strategic Plan Regulation] have a corresponding output as reported in the annual performance report;

(b)  whether the expenditure falling within the scope of Articles 5(2) and 6 and corresponding to the interventions referred to in Regulation (EU) …/…[CAP Strategic Plan Regulation] have a corresponding output as reported in the annual clearance report;

Text proposed by the Commission

Amendment

(d a)  whether the action plans referred to in Articles 39 and 40 are correctly implemented.

Text proposed by the Commission

Amendment

In the case of serious deficiencies detected in the Member State's management and control systems, and in order to ensure the protection of the financial interests of the Union in accordance with Article 57 of this Regulation, the Commission may extend its checks to confirm the terms on which the operations financed by the funds were undertaken and checked to ensure compliance with applicable Union law for all the interventions laid down in Regulation (EU).../... [ CAP Strategic Plans].

Text proposed by the Commission

Amendment

The Commission may continue to carry out the extended monitoring as long as the serious deficiencies in the governance system persist.

Text proposed by the Commission

Amendment

3.  Member States shall make available to the Commission information about irregularities within the meaning of Regulation (EU, Euratom) No 2988/95 and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plan, suspected fraud cases detected, and information about the steps taken pursuant to Section 3 of this Chapter to recover undue payments in connection with those irregularities and frauds.

3.  Member States shall make available to the Commission information about irregularities within the meaning of Regulation (EU, Euratom) No 2988/95 and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plan, suspected fraud cases detected, and information about the steps taken pursuant to Section 3 of this Chapter to recover undue payments in connection with those irregularities and frauds. The Commission shall summarise that information and publish multiannual reports, communicating them to the European Parliament. 

Text proposed by the Commission

Amendment

Annual financial clearance

Annual clearance

Text proposed by the Commission

Amendment

Those implementing acts shall cover the completeness, accuracy and veracity of the annual accounts submitted and shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to Articles 52 and 53.

Those implementing acts shall cover the completeness, accuracy and veracity of the annual accounts submitted and shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to paragraph 2 of this Article and to Article 53.

Text proposed by the Commission

Amendment

The Commission shall adopt implementing acts laying down rules on the clearance of accounts provided for in paragraph 1 with regard to the measures to be taken in connection with the adoption of the implementing acts referred to in the second subparagraph of paragraph 1 and their implementation, including the information exchange between the Commission and the Member States and the deadlines to be respected.

The Commission shall adopt implementing acts prior to 15 October of the year following the budget year in question determining the amounts to be reduced from Union financing for the expenditure referred to in Article 5(2) and Article 6 and corresponding to the interventions referred to in Title III of Regulation (EU) …/… [CAP Strategic Plan Regulation] where:

(a)  the output reported in the annual clearance report does not correspond to the expenditure referred to in Articles 5(2) and 6; or

(b)  the amount of support per unit deviates by more than the percentage of variation set in the Member State’s CAP Strategic plan for the types of interventions subject to Article 89 of Regulation (EU) …/… [CAP Strategic Plan Regulation].

Text proposed by the Commission

Amendment

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

deleted

Text proposed by the Commission

Amendment

Those implementing acts shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to Article 53 of this Regulation.

Text proposed by the Commission

Amendment

The Commission shall assess the amounts to be reduced on the basis of the difference between the annual expenditure declared for an intervention and the amount corresponding to the relevant reported output in accordance with the national CAP Strategic Plan and taking account of justifications provided by the Member State concerned. Those reductions shall only apply to the expenditure declared for the relevant intervention that does not have a corresponding output.

Text proposed by the Commission

Amendment

Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 101(2). The Commission shall inform the Member State concerned of its intention, and shall give that Member State the opportunity to submit its comments within a period of at least 30 days, before it submits the draft implementing act in accordance with Article 3(3) of Regulation (EU) No 182/2011.

Text proposed by the Commission

Amendment

2 a.  The Commission is empowered to adopt delegated acts in accordance with Article 100 supplementing this Regulation with rules on:

(a)  the clearance provided for in paragraphs 1 and 2 with regard to the measures to be taken in connection with the adoption of the implementing acts referred to in the second subparagraph of paragraph 1 and in paragraph 2 and their implementation, including the information exchange between the Commission and the Member States and the deadlines to be respected;

(b)  the criteria for justifications from the Member State concerned and the methodology and criteria for applying reductions referred to in paragraph 2.

Text proposed by the Commission

Amendment

Article 52

deleted

Annual performance clearance

1.  Where the expenditure referred to in Articles 5(2) and 6 and corresponding to the interventions referred to in Title III of Regulation (EU) …/… [CAP Strategic Plan Regulation] does not have a corresponding output as reported in the annual performance report, the Commission shall adopt implementing acts prior to 15 October of the year following the budget year in question determining the amounts to be reduced from Union financing. Those implementing acts shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to Article 53 of this Regulation.

Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 101(2).

2.  The Commission shall assess the amounts to be reduced on the basis of the difference between the annual expenditure declared for an intervention and the amount corresponding to the relevant reported output in accordance with the national CAP Strategic Plan and taking account of justifications provided by the Member State.

3.  Before the adoption of the implementing act referred to in paragraph 1, the Commission shall give the Member State an opportunity to submit its comments and justify any differences.

4.  The Commission is empowered to adopt delegated acts in accordance with Article 100 supplementing this Regulation with rules on the criteria for justifications from the concerned Member State and the methodology and criteria for applying reductions.

5.  

The Commission shall adopt implementing acts laying down rules on the measures to be taken in connection with the adoption of the implementing act referred to in paragraph 1 and its implementation, including the information exchange between the Commission and the Member States, the procedure and the deadlines to be respected.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

Text proposed by the Commission

Amendment

2.  The Commission shall assess the amounts to be excluded on the basis of the gravity of the deficiencies found.

2.  The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature of the infringement and of the financial damage incurred by the Union. It shall base the exclusion on the amounts identified as unduly spent. Where it is not reasonably possible to calculate the exact amount, flat-rate corrections shall be used in a proportionate way.

Text proposed by the Commission

Amendment

6.  The Commission is empowered to adopt delegated acts in accordance with Article 100 supplementing this Regulation with rules on the criteria and methodology for applying financial corrections.

6.  The Commission is empowered to adopt delegated acts in accordance with Article 100 supplementing this Regulation with rules on the criteria and methodology for applying financial corrections including flat-rate corrections referred to in paragraph 2.

Text proposed by the Commission

Amendment

The Commission shall adopt implementing acts laying down rules on the measures to be taken in connection with the adoption of the implementing act referred to in paragraph 1 and its implementation, including the information exchange between the Commission and the Member States, the deadlines to be respected and the conciliation procedure provided for in paragraph 3, including the establishment, tasks, composition and working arrangements of the conciliation body.

The Commission shall adopt delegated acts in accordance with Article 100, supplementing this Regulation by laying down rules on the measures to be taken in connection with the adoption of the implementing act referred to in paragraph 1 and its implementation, including the information exchange between the Commission and the Member States, the deadlines to be respected and the conciliation procedure provided for in paragraph 3, including the establishment, tasks, composition and working arrangements of the conciliation body.

Text proposed by the Commission

Amendment

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

deleted

Text proposed by the Commission

Amendment

Article 53a

Recoveries for non-compliance

1.  Member States shall request recovery from the beneficiary for any undue payment following the occurrence of irregularities and other cases of non-compliance by beneficiaries with the conditions of the interventions referred in the CAP Strategic Plan and bring legal proceedings to that effect where necessary.

2.  If the sum has not been recovered within four years of the date of the recovery request, or within eight years if the recovery is being dealt with by the national courts, 50 % of the financial cost of the non-recovery shall be borne by the Member State concerned and 50 % shall be borne by the Union, without prejudice to the requirement that the Member State concerned is to continue the recovery procedures in accordance with Article 57.

3.  On duly justified grounds, Member States may decide not to pursue recovery. A decision to that effect may be taken only in the following cases:

(a)   where the costs of recovery already incurred and the costs likely to be incurred total more than the amount to be recovered, which condition shall be considered to have been met if:

(i)  the amount to be recovered from the beneficiary in the context of an individual payment for an intervention, not including interest, does not exceed EUR 100; or

(ii)  the amount to be recovered from the beneficiary in the context of an individual payment for an intervention, not including interest, falls between EUR 100 and EUR 250 and the Member State concerned applies a threshold equal to or higher than the amount to be recovered under its national law for not pursuing national debts;

(b)  where recovery proves impossible owing to the insolvency, recorded and recognised under national law, of the debtor or the persons legally responsible for the irregularity.

Text proposed by the Commission

Amendment

Sums recovered by the Member States following the occurrence of irregularities and other cases of non-compliance by beneficiaries with the conditions of the interventions referred to in the CAP Strategic Plan and the interest thereon shall be made over to the paying agency and booked by it as revenue assigned to the EAGF in the month in which the sums are actually received.

Sums recovered by the Member States following the occurrence of irregularities and other cases of non-compliance by beneficiaries with the conditions of the interventions referred to in the CAP Strategic Plan and the interest thereon which shall be calculated from the day following the date on which the payment was due, shall be made over to the paying agency and booked by it as revenue assigned to the EAGF in the month in which the sums are actually received.

Text proposed by the Commission

Amendment

Member States may, without prejudice to the first paragraph, instruct the paying agency, as the body responsible for the recovery of debt, to deduct any outstanding debts owed by a beneficiary from future payments to that beneficiary.

Text proposed by the Commission

Amendment

Where irregularities and other cases of non-compliance by beneficiaries with the conditions of the rural development interventions referred to in the CAP Strategic Plan are detected, Member States shall make financial adjustments by totally or partially cancelling the Union financing concerned. Member States shall take into consideration the nature and gravity of the non-compliance detected and the level of the financial loss to the EAFRD.

Where irregularities and other cases of non-compliance by beneficiaries with the conditions of the rural development interventions referred to in the CAP Strategic Plan are detected, Member States shall make financial adjustments by cancelling partially or, under exceptional circumstances, cancelling entirely the Union financing concerned. Member States shall take into consideration the nature and gravity of the non-compliance detected and the level of the financial loss to the EAFRD.

Text proposed by the Commission

Amendment

Amounts of the Union financing under the EAFRD which are cancelled and amounts recovered, and the interest thereon, shall be reallocated to other rural development interventions in the CAP Strategic Plan. However, the cancelled or recovered Union Funds may be reused by Member States only for a rural development operation under the national CAP Strategic Plan and provided the funds are not reallocated to rural development operations which have been the subject of a financial adjustment.

Amounts of the Union financing under the EAFRD which are cancelled and amounts recovered, and the interest thereon, which shall be calculated from the day following the date on which the payment was due, shall be reallocated to other rural development interventions in the same CAP Strategic Plan.

Text proposed by the Commission

Amendment

Member States shall deduct any sums unduly paid as a result of an outstanding irregularity by a beneficiary, under the terms set out in this Article, from any future payments to the beneficiary by the paying agency.

Text proposed by the Commission

Amendment

However, the cancelled or recovered Union funds may be reused in their entirety by Member States only for a rural development operation under the national CAP Strategic Plan and provided the funds are not reallocated to rural development operations which have been the subject of a financial adjustment.

Text proposed by the Commission

Amendment

2.  Member States shall set up efficient management and control systems in order to ensure compliance with the Union legislation governing Union interventions.

2.  Member States shall set up efficient management and control systems in order to ensure compliance with the Union legislation governing Union interventions. The control systems shall be described in the national CAP Strategic Plan pursuant to Article 101 of Regulation (EU) …/… [CAP Strategic Plan Regulation]. Such management and control systems may include early warning mechanisms.

Text proposed by the Commission

Amendment

In the case of penalties established in the form of a reduction in the amount of aid or support paid, the amount of the penalty shall not exceed 100 % of the amount of the aid application, payment claim or of the eligible amount to which the penalty is applied.

Text proposed by the Commission

Amendment

In the case of penalties in the form of an amount calculated on the basis of the quantity the period concerned by the non-compliance, that amount shall not exceed an amount equivalent to the percentage referred to in the second subparagraph.

Text proposed by the Commission

Amendment

In the case of a penalty in the form of a suspension, withdrawal of an approval, recognition or authorisation, or in the case of the exclusion from the right to participate in or benefit from an intervention, the maximum corresponding period shall last three consecutive years and, may be renewed in the case of any new non-compliance.

Text proposed by the Commission

Amendment

(c a)  where the non-compliance is due to obvious errors by the beneficiary concerning the aid application or payment claim, which are recognised by the paying agency and subject to correction and adjustment before beeing communicated to the beneficiary;

Text proposed by the Commission

Amendment

(c b)  where the non-compliance is of minor severity, extent or duration.

Text proposed by the Commission

Amendment

Article 57a

Correction of errors

1.  Member States may opt to include in their CAP Strategic Plans provisions providing beneficiaries with the right to modify or otherwise restore to compliance an administrative declaration or a request for aid or support they had previously made, with no reduction or penalty imposed, if:

(a)  the beneficiary has committed a clerical error when reporting their situation;

(b)  the beneficiary has misunderstood the eligibility criteria, the commitments or other obligations concerning the allocation of aid or support with regard to their situation.

This right to modify or restore to compliance shall apply whenever the mistake or omission is committed in good faith and is not deemed to constitute attempted fraud.

The relevant national authorities shall be responsible for determining a beneficiary’s 'good faith'.

Text proposed by the Commission

Amendment

Member States shall ensure a level of checks needed for an effective management of the risks.

Member States shall ensure a level of checks needed for an effective management of the risks which may be lower than the initial level once the management and monitoring systems are functioning properly and the error rates have settled at an acceptable level. The relevant authority shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part in order to obtain are presentative error rate and a risk-based part, which shall target the areas where the risk to the financial interest of the Union is the highest.

Text proposed by the Commission

Amendment

(e)  other rules on the checks to be conducted by the Member States, as regards the measures laid down in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013 respectively.

deleted

Text proposed by the Commission

Amendment

(a)  which ensure a non-discriminatory treatment, equity and the respect of proportionality when lodging a security;

(a)  ensuring non-discriminatory treatment, equity and the respect of proportionality when lodging a security;

Text proposed by the Commission

Amendment

(c)  "system for the identification and registration of animals" means the system for the identification and registration of bovine animals laid down by Regulation (EC) No 1760/2000 of the European Parliament and of the Council³³ or the system for the identification and registration of ovine and caprine animals laid down by Council Regulation (EC) No 21/2004³⁴ ;

(c)  "system for the identification and registration of animals" means the system for the identification and registration of bovine animals laid down by Regulation (EC) No 1760/2000 of the European Parliament and of the Council³³ or the system for the identification and registration of ovine and caprine animals laid down by Council Regulation (EC) No 21/2004³⁴ or where applicable, the system for the identification or registration of pigs laid down by Council Directive 2008/71/EC^34a and other databases established by the Member States for animals;

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³³ Regulation (EC) No 1760/2000 of the European Parliament and of the Council of 17 July 2000 establishing a system for the identification and registration of bovine animals and regarding the labelling of beef and beef products and repealing Council Regulation (EC) No 820/97 (OJ L 204, 11.8.2000, p. 1).

³³ Regulation (EC) No 1760/2000 of the European Parliament and of the Council of 17 July 2000 establishing a system for the identification and registration of bovine animals and regarding the labelling of beef and beef products and repealing Council Regulation (EC) No 820/97 (OJ L 204, 11.8.2000, p. 1).

³⁴ Council Regulation (EC) No 21/2004 of 17 December 2003 establishing a system for the identification and registration of ovine and caprine animals and amending Regulation (EC) No 1782/2003 and Directives 92/102/EEC and 64/432/EEC (OJ L 5, 9.1.2004, p. 8).

³⁴ Council Regulation (EC) No 21/2004 of 17 December 2003 establishing a system for the identification and registration of ovine and caprine animals and amending Regulation (EC) No 1782/2003 and Directives 92/102/EEC and 64/432/EEC (OJ L 5, 9.1.2004, p. 8).

^34a Council Directive 2008/71/EC of 15 July 2008 on the identification and registration of pigs (OJ L 213, 8.8.2008, p. 31).

Text proposed by the Commission

Amendment

(f)  "claimless system" means an application system for area- or animal-based interventions in which necessary data required by the administration on at least individual areas or animals claimed for aid is available in official computerised databases managed by the Member State.

(f)  "claimless system" means a prefilled or other type of application system for area- or animal-based interventions in which necessary data required by the administration on at least individual areas or animals claimed for aid is available in official computerised databases managed by the Member State.

Text proposed by the Commission

Amendment

(c)  an area monitoring system;

(c)  an area monitoring and control system;

Text proposed by the Commission

Amendment

2.  The integrated system shall operate on the basis of electronic databases and geographic information systems and shall enable the exchange and integration of data between the electronic databases and the geographic information systems.

2.  The integrated system shall operate on the basis of electronic databases and geographic information systems and shall enable the exchange and integration of data between the electronic databases and the geographic information systems (GIS). To that end, GIS shall allow for the layering of geo-spatial data on farm, cadastral or reference parcels onto any delimiting protected zones and designated areas that have been established in accordance with Union legislation listed in Annex XI to Regulation (EU) …/… [CAP Strategic Plan Regulation], such as Natura 2000 areas or Nitrate vulnerable zones, as well as the landscape features and ecological infrastructures (trees, hedges, ponds, buffer strips, riparian margins, etc.).

Text proposed by the Commission

Amendment

3.  Without prejudice to the responsibilities of the Member States for the implementation and application of the integrated system, the Commission may seek the assistance of specialised bodies or persons in order to facilitate the establishment, monitoring and operation of the integrated system, in particular, with a view to providing the competent authorities of the Member States with technical advice.

3.  Without prejudice to the responsibilities of the Member States for the implementation and application of the integrated system, the Commission shall seek the assistance of specialised bodies or persons in order to facilitate the establishment, monitoring and operation of the integrated system, in particular, with a view to providing the competent authorities of the Member States with technical advice.

Text proposed by the Commission

Amendment

The data and documentation referred to in the first subparagraph relating to the current calendar year or marketing year and to the previous ten calendar years or marketing years shall be accessible for consultation through the digital databases of the competent authority of the Member State.

The data and documentation referred to in the first subparagraph relating to the current calendar year or marketing year and to the previous ten calendar years or marketing years shall be accessible for consultation through the digital databases of the competent authority of the Member State. The relevant information from the databases may also be provided in the form of summaries.

Text proposed by the Commission

Amendment

5 a.  Member States shall ensure that beneficiaries and potential beneficiaries have access to all the reference data and attribute data regarding the land they use or intend to use, in order to enable them to submit accurate applications.

Text proposed by the Commission

Amendment

1.  As regards the aid for the area-based interventions referred to in Article 63(2) and implemented under the national CAP Strategic Plans, Member States shall require the submission of an application by means of using the geo-spatial application provided by the competent authority to submit an application.

1.  As regards the aid for the area-based interventions referred to in Article 63(2) and implemented under the national CAP Strategic Plans, Member States shall require the submission of an application by means of using the form, provided by the competent authority in their geo-spatial application.

Text proposed by the Commission

Amendment

If a Member State decides to use a claimless system, it shall enable the administration to make the eligible payments to the beneficiaries based on the existing details in the official computerised databases, where there has been no change, supplemented with additional information, where necessary to cover a change. Those details and any such additional information shall be confirmed by the beneficiary.

Text proposed by the Commission

Amendment

1.  Member States shall set up and operate an area monitoring system.

1.  Member States shall set up and operate an area monitoring and control system. On duly justified grounds, the Commission may grant a transitional period for setting up the area monitoring and control system to Member States that have not recently used such an area monitoring and control system.

Text proposed by the Commission

Amendment

Member States shall annually assess the quality of the area monitoring system in accordance with the methodology set up at Union level.

Member States shall annually assess the quality of the area monitoring and control system in accordance with the methodology set up at Union level.

Text proposed by the Commission

Amendment

Member States shall set up a control and penalties system for the aid as referred to in Article 63.

Member States shall set up a control and penalties system for the aid referred to in Article 63. Member States, through the paying agencies or the bodies delegated by them, shall carry out administrative checks on the aid application to verify the eligibility conditions for the aid. Those checks shall be supplemented by on-the-spot checks.

Text proposed by the Commission

Amendment

For each of the interventions referred to in Article 63(2), Member States shall ensure that the control sample for on-the-spot checks carried out each year covers at least 5 % of all beneficiaries. That percentage shall be increased appropriately where any significant non-compliance in the context of a given intervention or measure is detected. However, Member States may reduce that percentage where the error rates remain at an acceptable level.

Text proposed by the Commission

Amendment

Paragraphs 1 to 5 of Article 57 shall apply mutatis mutandis.

deleted

Text proposed by the Commission

Amendment

(a)  the form, content and arrangements for transmitting or making available to the Commission of:

(a)  the form and arrangements for transmitting or making available to the Commission of:

Text proposed by the Commission

Amendment

(b)  basic features and rules on the geo-spatial application system and the area monitoring system referred to in Articles 67 and 68.

(b)  The Commission is empowered to adopt delegated acts in accordance with Article 100, supplementing this Regulation by laying down in the rules on the content for transmitting and making available to the Commission of:

(i)  the assessment reports on the quality of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring and control system;

(ii)  the remedial actions to be implemented by the Member States as referred to in Articles 66, 67 and 68;

(iii)  basic features and rules on the geo-spatial application system and the area monitoring and control system referred to in Articles 67 and 68.

Text proposed by the Commission

Amendment

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

deleted

Text proposed by the Commission

Amendment

2.  Member States shall send the Commission a list of undertakings established in a third country for which payment of the amount in question has or should have been made or received in that Member State.

2.  Member States shall send the Commission a list of undertakings established in a third country for which payment of the amount in question has or should have been made or received in that Member State. Where necessary, the Commission shall invite experts from third countries, including developing countries, in order to obtain an assessment of the external impact of CAP implementation at Member State level.

Text proposed by the Commission

Amendment

Article 79

deleted

Programming

1.  Member States shall draw up programmes for scrutiny to be carried out pursuant to Article 75 during the subsequent scrutiny period.

2.  Each year, before 15 April, Member States shall send the Commission their programme as referred to in paragraph 1 and shall specify:

(a)  the number of undertakings to be scrutinised and their breakdown by sector on the basis of the amounts relating to them;

(b)  the criteria adopted for drawing up the programme.

3.  The programmes established by the Member States and forwarded to the Commission shall be implemented by the Member States, if, within eight weeks, the Commission has not made known its comments.

4.  Paragraph 3 shall apply mutatis mutandis to the amendments to the programme made by the Member States.

5.  At any stage, the Commission may request the inclusion of a particular category of undertaking in the programme of a Member States.

6.  Undertakings for which the sum of the receipts or payments amounted to less than EUR 40 000 shall be scrutinised in accordance with this Chapter only for specific reasons to be indicated by the Member States in their annual programme referred to in paragraph 1 or by the Commission in any proposed amendment to that programme.

The Commission is empowered to adopt delegated acts in accordance with Article 101 amending the threshold set out in the first subparagraph.

Text proposed by the Commission

Amendment

Control system and penalties in relation to conditionality

Control system and penalties in relation to conditionality for sustainable development

Text proposed by the Commission

Amendment

Member States shall set up a control system to ensure that beneficiaries of the aid referred to in Article 11 of Regulation (EU) …/… [CAP Strategic Plan Regulation] and in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013 respectively, comply with the obligations referred to in Section 2 of Chapter 1 of Title III of Regulation (EU) …/…[CAP Strategic Plan Regulation].

Member States shall have a control system in order to ensure that the following beneficiaries comply with the obligations referred to in Section 2 of Chapter 1 of Title III of Regulation (EU)…/…[CAP Strategic Plan Regulation]:

(a)  beneficiaries receiving direct payments under Chapter II of Title III of Regulation (EU)…/…[CAP Strategic Plan Regulation];

(b)  beneficiaries receiving annual payments in accordance with Articles 65, 66 and 67 of Regulation (EU)…/…[CAP Strategic Plan Regulation];

(c)  beneficiaries receiving support in accordance with Chapter IV of Regulation (EU) No 228/2013 and Chapter IV of Regulation (EU) No 229/2013.

Text proposed by the Commission

Amendment

(b a)  ‘reoccurrence of a non-compliance’ means the non-compliance with the same requirement or standard determined more than once, provided that the beneficiary has been informed of a previous non-compliance and, as the case may be, has had the possibility to take the necessary measures to remedy that previous non-compliance.

Text proposed by the Commission

Amendment

3.  In their control system referred to in paragraph 1 Member States:

3.  In order to comply with their control obligations laid down in paragraph 1, Member States:

Text proposed by the Commission

Amendment

(c)  may, where appropriate, make use of remote sensing or the area monitoring system to carry out the on-the-spot checks referred to in point (a);

(c)  may, where appropriate and feasible, make use of remote sensing or the area monitoring and control system to carry out the on-the-spot checks referred to in point (a); and

Text proposed by the Commission

Amendment

(c a)  shall establish an early warning system;

Text proposed by the Commission

Amendment

(d)  establish the control sample for the checks referred to in point (a) to be carried out each year on the basis of a risk analysis and shall include a random component and shall provide the control sample to cover at least 1% of beneficiaries receiving the aid provided for in Section 2 of Chapter 1 of Title III of Regulation (EU) …/… [CAP Strategic Plan Regulation].

deleted

Text proposed by the Commission

Amendment

3 a.  Member States shall establish the control sample for the checks referred to in point (a) of paragraph 3 of this Article to be carried out each year on the basis of a risk analysis, for which they may apply weighting factors, and a random component, and shall ensure that the control sample covers at least 1 % of the beneficiaries receiving aid under Section 2 of Chapter 1 of Title III of Regulation (EU) …/… [CAP Strategic Plan Regulation].

Text proposed by the Commission

Amendment

3 b.  The Commission is empowered to adopt delegated acts in accordance with Article 100 supplementing this Regulation with rules on simplified checks for farmers participating in the schemes referred to in Article 25 of Regulation (EU) .../... [CAP Strategic Plans Regulation].

Text proposed by the Commission

Amendment

3 c.  The Commission shall adopt, by means of implementing acts, rules on the carrying out of checks referred to in this Article, including rules ensuring that risk analysis takes account of the following factors:

(a)  the participation of farmers in the farm advisory services system provided for in Article 13 of Regulation (EU) …/… [CAP Strategic Plan Regulation];

(b)  the participation of farmers in a certification system as provided for in Article 12(3a) of Regulation (EU)…/… [CAP Strategic Plan Regulation] once the Regulation covers the requirements and standards concerned.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 101(3).

Text proposed by the Commission

Amendment

shall include rules on the application of administrative penalties in cases where the land is transferred during the calendar year concerned or the years concerned. These rules shall be based on a fair and equitable attribution of the liability for non-compliances among transferors and transferees;

shall include rules on the application of administrative penalties in cases where the agricultural land, an agricultural holding or parts thereof is transferred during the calendar year concerned or the years concerned. These rules shall be based on a fair and equitable attribution of the liability for non-compliances among transferors and transferees;

Text proposed by the Commission

Amendment

(c)  shall provide that no administrative penalty be imposed where the non-compliance is due to force majeure.

(c)  shall provide that no administrative penalty be imposed in the following cases:

(i)  where the non-compliance is due to force majeure;

(ii)  where the non-compliance is due to an order from a public authority;

(iii)  where the non-compliance is due to an error of the competent authority or another authority, and where the error could not reasonably have been detected by the beneficiary subject to the administrative penalty;

(iv)  where the non-compliance is due to simple negligence.

Text proposed by the Commission

Amendment

The administrative penalties provided for in Section 2 of Chapter 1 of Title III of Regulation (EU) …/…[CAP Strategic Plan Regulation] shall be applied by means of reduction from or exclusion of the total amount of the payments listed in that Section of that Regulation granted or to be granted to the beneficiary concerned in respect of aid applications he has submitted or will submit in the course of the calendar year of the finding.

The administrative penalties shall be applied by means of reduction or exclusion of the total amount of the payments listed in Article 84(1) granted or to be granted to the beneficiary concerned in respect of aid applications he has submitted or will submit in the course of the calendar year of the finding.

Text proposed by the Commission

Amendment

For the calculation of those reductions and exclusions, account shall be taken of the severity, extent, permanence, reoccurrence or intentionality of the non-compliance determined. The penalties imposed shall be dissuasive and proportionate, and compliant with the criteria set out in paragraphs 2 and 3 of this Article.

For the calculation of those reductions and exclusions, account shall be taken of the nature, severity, extent, permanence, reoccurrence or intentionality of the non-compliance determined. The penalties imposed shall be dissuasive and proportionate, and compliant with the criteria set out in paragraphs 2 and 3 of this Article.

Text proposed by the Commission

Amendment

In the case of non-compliance due to negligence, the percentage of reduction shall be as a general rule 3% of the total amount of the payments referred to in paragraph 1 of this Article.

In the case of non-compliance due to negligence, the percentage of reduction shall be as a general rule 3% of the total amount of the payments referred to in paragraph 1 of this Article. The reduction shall be determined on the basis of the assessment of the nature and severity of the non-compliance, based on the criteria set out in paragraph 1 of this Article.

Text proposed by the Commission

Amendment

Member States may set up an early warning system that applies to individual cases of non-compliance occurring for the first time and which, given their minor severity, extent and permanence, shall not lead to a reduction or exclusion. Where a subsequent check within three consecutive calendar years establishes that the non-compliance has not been remedied, the reduction pursuant to the first subparagraph shall be applied retroactively.

Member States shall set up and use the early warning system referred to in Article 84(3) that applies to individual cases of non-compliance occurring for the first time and which, given their minor severity, extent and permanence, shall not lead to a reduction or exclusion. The relevant authority shall notify the beneficiary of the obligation to take remedial action and propose corrective measures that have to be taken to remedy the non-compliance. Where a subsequent check within three consecutive calendar years establishes that the non-compliance has not been remedied, the reduction pursuant to the first subparagraph shall be applied retroactively.

Text proposed by the Commission

Amendment

Member States may provide mandatory training under the farm advisory system provided for in Section 3 of Chapter 1 of Title III of Regulation (EU) …/…[CAP Strategic Plan Regulation] to the beneficiaries who have received an early warning.

Member States shall provide for specific training on conditionality under the farm advisory system provided for in Section 3 of Chapter 1 of Title III of Regulation (EU) …/…[CAP Strategic Plan Regulation] to the beneficiaries who have received an early warning, attendance of which may be made mandatory.

Text proposed by the Commission

Amendment

3.  In case of reoccurrence, the percentage reduction shall be higher than the one to be applied in case of non-compliance due to negligence and sanctioned for the first time.

3.  In the case of reoccurrence of a non-compliance, the percentage reduction shall be, as a general rule, 10 % of the total amount of the payments referred to in paragraph 1.

Text proposed by the Commission

Amendment

In the case of subsequent reoccurrences, and if no justified reason is provided, the beneficiary shall be considered to have acted intentionally within the meaning of paragraph 4.

Text proposed by the Commission

Amendment

4.  In case of intentional non-compliance, the percentage shall be higher than the one applied in case of reoccurrence pursuant to paragraph 3 and may go as far as total exclusion from payments and may apply for one or more calendar years.

4.  In the case of intentional non-compliance, the percentage reduction shall be at least 15 % of the total amount of the payments referred to in paragraph 1 and may as amount to the total exclusion from payments and may apply for one or more calendar years.

Text proposed by the Commission

Amendment

Member States may retain 20 % of the amounts resulting from the application of the reductions and exclusions referred to in Article 86.

Member States may retain 25 % of the amounts resulting from the application of the reductions and exclusions referred to in Article 86.

Text proposed by the Commission

Amendment

Article 100a

Urgency procedure

1.  Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.

2.  Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 100(6). In such a case, the Commission shall repeal the act immediately following the notification of the decision to object by the European Parliament or by the Council.

Text proposed by the Commission

Amendment

(a)  Article 5, Article 7(3), Articles 9, 34, Article 35(4), Articles 36, 37, 38, 43, 51, 52, 54, 110 and 111 of Regulation (EU) No 1306/2013 and the relevant implementing and delegated rules shall continue to apply in relation to expenditure incurred and payments made for the agricultural financial year 2020 and before as regards the EAGF, and as regards the EAFRD in relation to expenditure incurred and payments made for rural development programmes approved by the Commission under Regulation (EU) No 1305/2013,

(a)  Article 5, Article 7(3), Article 9, Article 26(5), Article 34, Article 35(4), Articles 36, 37, 38, 43, 51, 52, 54, 110 and 111 of Regulation (EU) No 1306/2013 and the relevant implementing and delegated rules shall continue to apply in relation to expenditure incurred and payments made for the agricultural financial year 2020 and before as regards the EAGF, and as regards the EAFRD in relation to expenditure incurred and payments made for rural development programmes approved by the Commission under Regulation (EU) No 1305/2013,

Text proposed by the Commission

Amendment

Article 103

deleted

Transitional measures

The Commission is empowered to adopt delegated acts in accordance with Article 101 supplementing this Regulation with derogations from, and additions to, the rules provided for in this Regulation, where necessary.

Text proposed by the Commission

Amendment

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) thereof,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) and Article 208 thereof,

Text proposed by the Commission

Amendment

(1)  The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled 'The Future of Food and Farming' of 29 November 2017 concludes that the Common Agricultural Policy (hereinafter ‘CAP’) should continue to step up its response to future challenges and opportunities, by boosting employment, growth and investment, fighting and adapting to climate change and bringing research and innovation out of the laboratories and onto fields and markets. The CAP should furthermore address citizens' concerns regarding sustainable agriculture production.

(1)  The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled 'The Future of Food and Farming' of 29 November 2017 concludes that the Common Agricultural Policy (hereinafter ‘CAP’) should continue to step up its response to future challenges, opportunities by boosting employment, growth and investments in rural areas, promoting social inclusion, reducing development gaps between areas, fighting and adapting to climate change, bringing research and innovation out of the laboratories and onto fields and markets. The Communication also stresses the global dimension of the CAP and states the Union’s commitment to enhance Policy Coherence for Sustainable Development (PCSD). The CAP should furthermore be reformed to address citizens' concerns regarding sustainable agriculture production and its impact on third countries, in particular developing countries, ensuring that populations are provided with nutritious, safe and healthy food and to foster sustainable development and efficient management of natural resources such as water, soil and air to provide to the protection of biodiversity and preserve habitats and landscapes, in line with the Union’s international obligations and commitments including the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change.

Text proposed by the Commission

Amendment

(3)  The CAP's compliance-driven delivery model should be adjusted to ensure a greater focus on results and performance. Accordingly the Union should set the basic policy objectives, types of intervention and basic Union requirements while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity in order to take better account of the local conditions and needs. Accordingly, under the new delivery model, Member States should be responsible for tailoring their CAP interventions in line with basic Union requirements in order to maximize their contribution to Union CAP objectives and to establish and design the compliance and control framework for beneficiaries.

(3)  The CAP's compliance-driven delivery model should be adjusted to ensure a greater focus on sustainable agriculture. Accordingly the Union should set the basic policy objectives, types of intervention and basic Union requirements, including as regards policy coherence for development (PCD), while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity in order to take better account of the local conditions and needs. Accordingly, under the new delivery model, Member States should be responsible for tailoring their CAP interventions in line with their specific needs and basic Union requirements in order to maximize their contribution to Union CAP objectives and to establish and design the compliance and control framework for beneficiaries.

Text proposed by the Commission

Amendment

(8a)  The implementation of the CAP should be coherent with the objectives of development cooperation, as referred to in Article 208 of the Treaty, including, inter alia, the 2030 Agenda for Sustainable Development. In line with this policy coherence, measures taken under this Regulation should jeopardise neither the food production capacity and long-term food security of developing countries, in particular least developed countries (LDCs), nor the achievement of the Union's climate change mitigation obligations under the Paris Agreement on climate change.

Text proposed by the Commission

Amendment

(11)  Involving paying agencies that have been accredited by the Member States is a crucial prerequisite under the new delivery model for having reasonable assurance that the objectives and targets set out in the relevant CAP Strategic Plans will be reached by the interventions financed by the Union's budget. It should, therefore, be explicitly provided in this Regulation that only expenditure effected by accredited paying agencies can be reimbursed from the Union's budget. In addition, the expenditure financed by the Union for the interventions referred to in the CAP Strategic Plan Regulation should have a corresponding output regarding and should comply with the basic Union requirements and the governance systems.

(11)  Involving paying agencies that have been accredited by the Member States is a crucial prerequisite under the new delivery model for having reasonable assurance that the objectives and targets set out in the relevant CAP Strategic Plans will be reached by the interventions financed by the Union's budget. It should, therefore, be explicitly provided in this Regulation that only expenditure effected by accredited paying agencies can be reimbursed from the Union's budget. In addition, the expenditure financed by the Union for the interventions referred to in the CAP Strategic Plan Regulation should have a corresponding output regarding and should comply with the basic Union requirements and the governance systems. It should also serve to achieve the sustainable development goals (SDGs). Following the principles of sound financial management and for optimal use of the Union’s financial resources, a wide range of stakeholders should be consulted on the planning and the allocation of Union and national funds. Such consultation should be organised both by the Member States before defining their CAP Strategic Plans and by the Commission before validating national strategies. Development partners should be included for issues related to PCD and impacts of the CAP on developing country populations, particularly LDCs.

Text proposed by the Commission

Amendment

(21a)  In order to provide the Commission with the means to fulfil its responsibilities with regard to ensuring PCD in the implementation of the CAP as laid down in Regulation (EU) …/… [CAP Strategic Plan Regulation], expanded monitoring capacities should be provided for that facilitate the monitoring of external effects of the CAP especially with regard to developing countries.

Text proposed by the Commission

Amendment

(25a)  In light of the new delivery model of the CAP, with its emphasis on results, it is necessary to measure outputs and impacts related to all the objectives of the CAP as outlined in Articles 5 and 6 of Regulation (EU) …/… [CAP Strategic Plan Regulation], in order to provide assurance that the CAP funds are being used effectively.

Text proposed by the Commission

Amendment

(25b)  Following the principle of budgetary efficiency, public funds should not be spent in the CAP that creates other costs for the environmental, public health, or development aid. Such damaging activities should not receive CAP funding. Therefore, in providing assurance on effectiveness of CAP and Union spending, the concept of what constitutes a risk to the financial interests of the Union budget should include risks to the environment, public health, and PCD. This also serves to ensure coherence in the CAP's and other Union policy priorities and objectives. Minimising additional costs in other areas should ensure efficiency in public spending.

Text proposed by the Commission

Amendment

(30)  As regards the multi-annual performance monitoring the Commission should also have the power to suspend payments. Accordingly in cases of delayed or insufficient progress towards targets, set out in the national CAP Strategic Plan, the Commission should be empowered to request the Member State concerned to take the necessary remedial actions in accordance with an action plan to be established in consultation with the Commission and containing clear progress indicators, by means of an implementing act. Where the Member State fails to submit or to implement the action plan or where the action plan is manifestly insufficient to remedy the situation, the Commission should have the power to suspend the monthly or interim payments, by means of an implementing act.

(30)  As regards the multi-annual performance monitoring the Commission should also have the power to suspend payments. Accordingly in cases of delayed or insufficient progress towards targets, set out in the national CAP Strategic Plan the Commission should be empowered to request the Member State concerned to take the necessary remedial actions in accordance with an action plan to be established in consultation with the Commission and containing clear progress indicators, by means of an implementing act. The action plan should be drawn up with the involvement of the partners referred to in Article 94. Where the Member State fails to submit or to implement the action plan or where the action plan is manifestly insufficient to remedy the situation, the Commission should have the power to suspend the monthly or interim payments, by means of an implementing act. Particular attention should be paid to the respect of the environmental Union law as well as the Union’s and Member States' commitments under the 2030 Agenda for Sustainable Development and the obligations under the Treaty.

Text proposed by the Commission

Amendment

(31)  As had been the case under Regulation (EU) No 1306/2013, the Commission should be empowered to suspend payments when serious deficiencies exist in the governance systems, including non-compliance with Union basic requirements and unreliability of reporting. It is, however, necessary to review the conditions for suspending payments in order to make the mechanism more efficient. The financial consequences of such suspensions should be decided in an ad-hoc conformity procedure.

(31)  As had been the case under Regulation (EU) No 1306/2013, the Commission should be empowered to suspend payments when serious deficiencies exist in the governance systems, including non-compliance with Union basic requirements and unreliability of reporting. Incoherence between the implementation of the CAP and other Union policies, inter alia, the SDGs, climate, environment and human rights obligations, should be considered as a serious deficiency in Member States’ governance systems. It is, however, necessary to review the conditions for suspending payments in order to make the mechanism more efficient. The financial consequences of such suspensions should be decided in an ad-hoc conformity procedure.

Text proposed by the Commission

Amendment

(41)  The Commission is responsible for the implementation of the Union's budget in cooperation with Member States in accordance with Article 317 of the Treaty. The Commission should thus be empowered to decide, by means of implementing acts, whether the expenditure effected by the Member States is in conformity with Union law. Member States should be afforded the right to justify their decisions to make payments and should have recourse to conciliation where there is no common agreement between them and the Commission. In order to give Member States legal and financial assurances as to expenditure effected in the past, a limitation period should be set for the Commission to decide which financial consequences should follow from the non-conformity.

(41)  The Commission is responsible for the implementation of the Union's budget in cooperation with Member States in accordance with Article 317 of the Treaty. The Commission should thus be empowered to decide, by means of implementing acts, whether the expenditure effected by the Member States is in conformity with Union law, priorities, and international agreements, inter alia, the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change. Amongst these objectives, particular attention should be given to the principle of PCD , as well as the Union’s climate and environmental policy objectives set out in Article 191 of the Treaty. The agricultural policy and its financing should not impede on the functioning of other Union policies. Member States should be afforded the right to justify their decisions to make payments and should have recourse to conciliation where there is no common agreement between them and the Commission. In order to give Member States legal and financial assurances as to expenditure effected in the past, a limitation period should be set for the Commission to decide which financial consequences should follow from the non-conformity.

Text proposed by the Commission

Amendment

(49)  The Communication from the Commission on 'The future of food and farming' set out the bolstering of environmental care and climate action and the contributing to the achievement of Union environmental and climate objectives as a strategic orientation of the future CAP. Hence, sharing Land Parcel Identification System and other Integrated Administration and Control System data has become necessary for environmental and climate purposes at national and Union level. Provision should therefore be made for sharing the data collected through the integrated system, which is relevant for environmental and climate purposes, between Member States' public authorities and with the Union institutions and bodies. In order to increase efficiency in using data available to different public authorities for the production of European statistic, it should also be provided that data from the integrated system has to be made available for statistical purposes to bodies which are part of the European Statistical System.

(49)  The Communication from the Commission on 'The future of food and farming' set out the bolstering of environmental care and climate action and the contributing to the achievement of Union environmental and climate objectives as a strategic orientation of the future CAP. The Communication also stresses the global dimension of the CAP and states the Union’s commitment to enhance PCSD. Hence, at national and Union level, sharing Land Parcel Identification System and other Integrated Administration and Control System data has become necessary for environmental and climate purposes and PCD grounds, and for achieving the SDGs as well as for the purpose of coherence with other Union’s internal and external policies at national and Union level. Provision should therefore be made for sharing the data collected through the integrated system, which is relevant for these purposes, between Member States' public authorities and with the Union institutions and bodies. In order to increase efficiency in using data available to different public authorities for the production of European statistics, it should also be provided that data from the integrated system has to be made available for statistical purposes to bodies which are part of the European Statistical System.

Text proposed by the Commission

Amendment

(49a)  An additional strategic orientation to ensure the consistency of CAP related agro-food sector trade outcomes with Union development policy also needs to be respected in the planning and the implementation by the Member States of CAP policies and instruments, particularly as regards the deployment of voluntary coupled support and of the agricultural reserve in addressing market crisis situations.

Text proposed by the Commission

Amendment

(53)  Having regard to the international structure of agricultural trade and in the interest of the proper functioning of the internal market, it is necessary to organise cooperation among the Member States. It is also necessary to set up a centralised documentation system at Union level concerning undertakings established in third countries and which receive or make payments.

(53)  Having regard to the international structure of agricultural trade and in the interest of the proper functioning of the internal market and respect for the PCD obligations, it is necessary to organise cooperation among the Member States and between the Member States and third countries. It is also necessary to set up a centralised documentation system at Union level concerning undertakings established in third countries and which receive or make payments. Such a system should contribute to the identification of incoherencies between the implementation of the CAP and the objectives of the external policies of the Union. The documentation system should highlight the contribution or impact of the aforementioned undertakings in third countries to the 2030 Agenda for Sustainable Development. Such documentation should also underline the CAP contribution, especially having regard to its external dimension, to the Union’s development objectives as provided for in Article 208 of the Treaty.

Text proposed by the Commission

Amendment

(55)  Conditionality is an important element of the CAP, in particular with regard to its environmental and climate elements but also concerning public health and animal related issues. This implies that controls should be carried out and, where necessary, penalties should be applied to ensure the effectiveness of the conditionality system. To have a level playing field between beneficiaries in different Member States, certain general rules on conditionality controls and penalties should be introduced at Union level.

(55)  Conditionality is an important element of the CAP, in ensuring that payments achieve a high degree of sustainability, e.g. on the use of pesticides and ensuring a level playing field for farmers within and between Member States, in particular with regard to its environmental and climate elements but also concerning public health and animal welfare. This implies that controls should be carried out and, where necessary, penalties should be applied to ensure the effectiveness of the conditionality system. To have that level playing field between beneficiaries in different Member States, certain general rules on conditionality, and controls and penalties related to non-compliance should be introduced at Union level.

Text proposed by the Commission

Amendment

(67)  In this context the role played by civil society, including by the media and non-governmental organisations and their contribution to reinforcing the administrations' control framework against fraud and any misuse of public funds, should be properly recognised.

(67)  In this context the role played by civil society, including by the media and non-governmental organisations and their contribution to reinforcing the administrations' control framework against fraud and any misuse of public funds, should be properly recognised. The aforementioned stakeholders should furthermore be encouraged to highlight and refer to the Commission Hearing Officer established by Regulation (EU) .../... [the CAP Strategic Plan Regulation] the inconsistencies between the implementation of the CAP and existing Union policies, especially taking into consideration the environmental and development policies of the Union.

Text proposed by the Commission

Amendment

(82)  The implementing powers of the Commission should also cover: rules aiming at reaching a uniform application of Member States' obligations regarding the protection of the financial interests of the Union and the necessary rules aiming at reaching a uniform application of checks in the Union.

(82)  The implementing powers of the Commission should also cover: rules aiming at reaching a uniform application of Member States' obligations regarding the protection of the financial interests of the Union which should include the principle of budgetary efficiency by not allowing CAP payments that generate additional costs for the Union budget, and the necessary rules aiming at reaching a uniform application of checks in the Union. The Commission should therefore also define rules ensuring the coherence between the CAP implementation by Member states and the Union’s other policies, with a particular attention being given to the environmental requirements laid down in Article 11 and 191 of the Treaty as well as the obligations in terms of PCD set out in Article 208 of the Treaty.

Text proposed by the Commission

Amendment

(a)  measures required for the analysis, management, monitoring, information exchange and implementation of the CAP, as well as measures relating to the implementation of control systems and technical and administrative assistance;

(a)  measures required for the analysis, management, monitoring, information exchange and implementation of the CAP and of the of the 2030 Agenda for Sustainable Development and Paris Agreement on climate change, as well as measures relating to the implementation of control systems and technical and administrative assistance;

Text proposed by the Commission

Amendment

(c)  the actions taken by the Commission through remote-sensing applications used for the monitoring of agricultural resources in accordance with Article 23;

(c)  the actions taken by the Commission through remote-sensing applications used for the monitoring of agricultural resources and of the Member States' participation in farming practices consistent with the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change, in accordance with Article 23;

Text proposed by the Commission

Amendment

(f)  studies on the CAP and evaluations of measures financed by the Funds, including improvement of evaluation methods and exchange of information on practices under the CAP, as well as studies carried out with the European Investment Bank (EIB);

(f)  studies on the CAP and evaluations of measures financed by the Funds, including improvement of evaluation methods and exchange of information on practices under the CAP, as well as studies carried out with the European Investment Bank (EIB), involving relevant actors referred to in Article 94 of Regulation (EU) .../... [the CAP Strategic Plan Regulation], notably local, regional, national, and international stakeholders, academic experts and NGOs;

Text proposed by the Commission

Amendment

(h)  contribution to measures relating to the dissemination of information, raising awareness, promoting cooperation and exchanging experiences at Union level, and taken in the context of rural development interventions, including the networking of the parties concerned;

(h)  contribution to measures relating to the dissemination of information, raising awareness, including as regards the global consequences of CAP, promoting cooperation and exchanging experiences at local, regional, national, Union and international level, and taken in the context of rural development interventions, including the networking of the parties concerned;

Text proposed by the Commission

Amendment

(ja)  effects of the CAP on third countries, especially developing countries.

Text proposed by the Commission

Amendment

(d)  to promote and ensure harmonised application of Union rules.

(d)  to promote and ensure harmonised application of Union rules as well as rules to be applied by the Union that arise from the relevant international treaties.

Text proposed by the Commission

Amendment

(a)  manage Union agricultural markets in a global context;

(a)  equitably and sustainably manage Union agricultural markets in a global context, including by establishing and expanding market monitoring mechanisms at a regional and global level, taking account of development objectives;

Text proposed by the Commission

Amendment

(b)  ensure agri-economic and agri-environmental-climate monitoring of agricultural land use and agricultural land use change, including agro-forestry, and monitoring of the condition of crops so as to enable estimates to be made, in particular as regards yields and agricultural production and agricultural impacts associated with exceptional circumstances;

(b)  ensure agri-economic and agri-environmental-climate monitoring of agricultural land use and agricultural land use change, including agro-forestry, and monitoring of the condition of crops so as to enable estimates to be made, in particular as regards yields and agricultural production and agricultural impacts associated with exceptional circumstances, as well as monitoring progress regarding the implementation of agricultural practices helping to reach climate goals and targets laid down in the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change;

Text proposed by the Commission

Amendment

(d)  contribute to transparency of world markets;

(d)  contribute to transparency of world markets, including ensuring PCD;

Text proposed by the Commission

Amendment

Pursuant to point (c) of Article 7 the Commission shall finance the actions concerning the collection or purchase of data needed to implement and monitor the CAP, including satellite data, geo-spatial data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions, remote sensing used to assist in the monitoring of agricultural land use change and soil health and the updating of agri-meteorological and econometric models. Where necessary, those actions shall be carried out in collaboration with EEA, JRC, national laboratories and bodies or with the involvement of the private sector.

Pursuant to point (c) of Article 7 the Commission shall finance the actions concerning the collection or purchase of data needed to implement and monitor the CAP and its effects, both inside and outside of the Union, including satellite data, geo-spatial data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions, remote sensing used to assist in the monitoring of agricultural land use change and soil health and the updating of agri-meteorological and econometric data and models. Where necessary, those actions shall be carried out in collaboration with EEA, JRC, national laboratories and bodies or with the involvement of civil society and the private sector. This shall include sharing access and contributing to international initiatives and data sources including UNFCCC as well as climate and environmental data, or data and/or information that contributes to transparency of world markets or tracking achievement of SDGs.

Text proposed by the Commission

Amendment

Article 23a

Monitoring Policy Coherence for Development

1.  In accordance with Article 208 of the Treaty, the impact of the CAP on food systems and on long-term food security in developing countries shall be subject to regular and independent assessments. This monitoring shall pay particular attention to the impact of agri-food trade flows between the Union and developing countries on:

(a)    food production, processing and distribution in LDCs;

(b)    local smallholder producers and women farmers;

(c)   products deemed to be sensitive by developing countries;

(d)    products from sectors where CAP coupled payments have been granted and where CAP crisis management measures have been deployed.

2.  The assessment shall examine data from the Union market observatories, case studies, reporting on the SDGs, as well as evidence provided by partner countries and other relevant stakeholders such as civil society organisations. For this purpose, the sectoral and geographic scope of the Union market observatories shall be expanded to products deemed to be sensitive by partner countries and to cover LDCs. The Commission shall adopt delegated acts in accordance with Article 100 supplementing this Regulation by defining the scope of and the procedure for the assessment.

3.  If monitoring data indicate a risk of adverse affects on the agri-food production and processing or food security of a developing country, an early warning shall be issued by the Commission, prompting a consultation between the Union and affected farming communities as well as partner country governments to agree on measures. A social safeguard shall be available to affected parties.

4.  Where no early warning is issued but adverse effects occur, the affected party may file a complaint. Complaints shall be received by the European Parliament's Standing Rapporteur on Policy Coherence for Development and the complaint shall be handled by Hearing Officers in the Commission. Evidence may be presented by the affected groups and other interested parties.

5.  The Commission shall transmit an annual report to the European Parliament and to the Council on the results of the assessment, the evidence received and the Union’s policy response.

Text proposed by the Commission

Amendment

(a)  rules relating to the financing pursuant to points (b) and (c) of Article 7;

(a)  rules relating to the financing pursuant to points (b), (c) and (k) of Article 7;

Text proposed by the Commission

Amendment

(ia)  it does no harm socially or environmentally and is coherent with Union policy aims and international commitments and obligations as referred to in Articles 5 and 6 of Regulation (EU) .../... [the CAP Strategic Plan Regulation].

Text proposed by the Commission

Amendment

Where the Member States fails to submit or to implement the action plan referred to in paragraph 1 or if that action plan is manifestly insufficient to remedy the situation, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30.

Where the Member States fails to submit or to implement the action plan referred to in paragraph 1 or if that action plan is manifestly insufficient to remedy the situation or is not in line with the Union's international agreements or with PCD, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 19(3) or the interim payments referred to in Article 30.

Text proposed by the Commission

Amendment

The provision of information financed pursuant to point (e) of Article 7 shall aim, in particular, to help explain, implement and develop the CAP and to raise public awareness of its content and objectives to reinstate consumer confidence following crises through information campaigns, to inform farmers and other parties active in rural areas and to promote the European model of agriculture, as well as to help citizens understand it.

Information financed pursuant to point (e) of Article 7 shall aim in particular to help explain, implement and develop the CAP and to raise public awareness of its content and its objectives, including climate change mitigation, environmental protection, animal welfare, maintaining social structures in rural areas, as well as its global dimension, while assuming responsibility for the CAP’s impact, in particular, on developing countries and to inform citizens, following crises, through impartial and objective information campaigns, to inform farmers and other parties active in rural areas, and to promote a sustainable Union model of agriculture, as well as to help citizens understand it.

Text proposed by the Commission

Amendment

The system set up by the Member States in accordance with Article 57(2) shall include systematic checks which shall also target the areas where the risk of errors is the highest.

The system set up by the Member States in accordance with Article 57(2) shall include systematic checks which shall also target the areas where the risk of errors is the highest and where the nature of those risks poses the highest degree of damage to the environment, climate, and public or animal health.

Text proposed by the Commission

Amendment

Checks shall not be carried out at the level of the EIB or other international financial institutions in which a Member State is a shareholder.

Checks shall not be carried out by the Member States at the level of the EIB or other international financial institutions in which a Member State is a shareholder. Those systematic conformity and coherence checks shall be carried out on Union or other appropriate level.

Text proposed by the Commission

Amendment

4a.  Member States shall ensure that datasets collected through the integrated system, and which are relevant for the Commission to analyse, monitor and assess the impact of the CAP, the CAP Strategic Plans and the interventions supported on the Union’s development objectives and on developing countries, are shared free of charge with the Commission and, where necessary, with the national bodies of the Member States responsible for drawing up the CAP Strategic Plans and the national Managing Authorities for the CAP Strategic Plans.

Text proposed by the Commission

Amendment

Article 76 a

Proof of responsible investments and good practices

Undertakings that wish for their investments and good practices, that can outbalance negative impacts, to be taken into account in the framework of the assessment pursuant to Article7 Regulation (EU) …/… [CAP Strategic Plan Regulation] shall provide the Commission with the necessary proof.

Text proposed by the Commission

Amendment

2.  Member States shall send the Commission a list of undertakings established in a third country for which payment of the amount in question has or should have been made or received in that Member State.

2.  Member States shall send the Commission a list of undertakings established in a third country for which payment of the amount in question has or should have been made or received in that Member State. Where necessary, the Commission shall invite experts from third countries, including developing countries, in order to obtain an assessment of the external impacts of CAP implementation at Member State level.

Text proposed by the Commission

Amendment

(aa)  the production of proof referred to in Article 76a as regards responsible investments and good practices;

Text proposed by the Commission

Amendment

(1a)  In its resolution of 30 May 2018 on the Multiannual Financial Framework and own resources for 2021-2027 (2018/2714(RSP), the European Parliament deplored the fact that the Commission proposal of 2 May 2018 on the MFF for 2021-2027 led to a 15% reduction in the level of common agricultural policy, and stated that it was particularly opposed to any radical cuts that would adversely impact on the very nature and objectives of that policy. It also questioned, in this context, the proposal to reduce the European Agricultural Fund for Rural Development by more than 25 %.

Text proposed by the Commission

Amendment

(1b)  Taking into account the importance of direct payments and all other payments in pillar one as well as second-pillar funds for farmers, which makes a significant contribution to investment and employment in rural areas, and given the fundamental role of common agricultural policy, the severe cuts envisaged for the second pillar of the CAP are not acceptable. Therefore, it is essential to maintain the funding allocated to the common agricultural policy 2021-2027 for the EU-27 at least at the level of the 2014-2020 budget while budgeting the initial amount for the agricultural crisis reserve: EUR 383.255 billion in 2018 prices (i.e. EUR 431.946 billion in current prices).

Text proposed by the Commission

Amendment

(1c)  Agriculture must not suffer any financial disadvantage as a result of political decisions such as the withdrawal of the United Kingdom from the EU or the funding of new European policies.

Text proposed by the Commission

Amendment

(14)  With a view to ensuring that the amounts for the financing of the CAP comply with the annual ceilings, the financial discipline mechanism by which the level of direct support is adjusted, should be maintained. However, the threshold of EUR 2000 should be abolished. An agricultural reserve should be maintained to support the agricultural sector in the event of market developments or major crises affecting the agricultural production or distribution. Article 12(2)(d) of Regulation (EU, Euratom) [New Financial Regulation] foresees that non-committed appropriations may be carried over to the following financial year only. In order to significantly simplify the implementation for beneficiaries and national administrations, a roll-over mechanism should be used, using any unused amounts of the reserve for crises in the agricultural sector established in 2020. For this purpose a derogation from Article 12(2)(d) is necessary, allowing for non-committed appropriations of the agricultural reserve to be carried over without time limitation to finance the agricultural reserve in the following financial year(s). Furthermore, as regards the financial year 2020, a second derogation is necessary as the total unused amount of the reserve available at the end of year 2020 should be carried over to the year 2021 to the corresponding line of the new agricultural reserve without being returned to the budgetary lines which cover direct payment interventions under the CAP Strategic Plan.

(14)  With a view to ensuring that the amounts for the financing of the CAP comply with the annual ceilings, the financial discipline mechanism by which the level of direct support is adjusted, should be maintained. An agricultural reserve should be maintained to support the agricultural sector in the event of market developments or major crises affecting the agricultural production or distribution. Article 12(2)(d) of Regulation (EU, Euratom) [New Financial Regulation] foresees that non-committed appropriations may be carried over to the following financial year only. For this purpose a derogation from Article 12(2)(d) is necessary, allowing for non-committed appropriations of the agricultural reserve to be carried over without time limitation to finance the agricultural reserve in the following financial year(s).

Text proposed by the Commission

Amendment

(16a)  Equalising the level of direct payments among the Member States is essential in order to ensure a level playing field in the EU’s single market. There is an urgent need for a fair distribution of direct payments between Member States.

Text proposed by the Commission

Amendment

(22)  As regards the financial management of the EAFRD, provision should be made with regard to budget commitments, payment deadlines, decommitment and interruptions. Rural develoment interventions are financed from the Union's budget on the basis of commitments made in annual instalments. Member States should be able to draw on the Union Funds provided for as soon as the CAP Strategic Plans are approved. A suitably restricted prefinancing system is therefore needed, to ensure a steady flow of funds so that payments to beneficiaries under the interventions are made at the appropriate time.

(22)  As regards the financial management of the EAFRD established regarding the relevant lines of Common Provisions Regulation, provision should be made with regard to budget commitments, payment deadlines, decommitment and interruptions . Rural development interventions are financed from the Union's budget the basis of commitments made in annual instalments. Member States should be able to draw on the Union Funds provided for as soon as the CAP Strategic Plans are approved. A suitably restricted prefinancing system is therefore needed, to ensure a steady flow of funds so that payments to beneficiaries under the interventions are made at the appropriate time.

Text proposed by the Commission

Amendment

(a)  a severe natural disaster gravely affecting the holding;

(a)  a natural disaster gravely affecting the holding;

Text proposed by the Commission

Amendment

The deadline of 15 February referred to in the first subparagraph may be exceptionally extended by the Commission to 1 March, upon request by the Member State concerned, as provided for in the second subparagraph Article 63(7) of the Financial Regulation.

The deadline of 15 February referred to in the first subparagraph may be extended by the Commission to 1 May, upon request by the Member State concerned, as provided for in the second subparagraph Article 63(7) of the Financial Regulation.

Text proposed by the Commission

Amendment

Moreover, by derogation from point (d) of Article 12(2) of the Financial Regulation, the total unused amount of the crisis reserve available at the end of year 2020 shall be carried over to the year 2021 without being returned to the budgetary lines which cover the actions referred to in point (c) of Article 5(2) and made available for the financing of the agricultural reserve.

deleted

Text proposed by the Commission

Amendment

1a.  The adjustment rate shall only apply to direct payments in excess of EUR 2000 to be granted to farmers in the corresponding calendar year.

Text proposed by the Commission

Amendment

(a)  prior to 1 December but not before 16 October, pay advances of up to 50 % for direct payments interventions;

(a)  prior to 1 December but not before 16 October, pay advances of up to 75 % for direct payments interventions;

Text proposed by the Commission

Amendment

Amounts of the Union financing under the EAFRD which are cancelled and amounts recovered, and the interest thereon, shall be reallocated to other rural development interventions in the CAP Strategic Plan. However, the cancelled or recovered Union Funds may be reused by Member States only for a rural development operation under the national CAP Strategic Plan and provided the funds are not reallocated to rural development operations which have been the subject of a financial adjustment.

Amounts of the Union financing under the EAFRD which are cancelled and amounts recovered, and the interest thereon, shall be reallocated to other rural development operations in the CAP Strategic Plan. However, the cancelled or recovered Union Funds may be reused by Member States only for a rural development operation under the national CAP Strategic Plan and provided the funds are not reallocated to rural development operations which have been the subject of a financial adjustment.