Príloha 3/strana 2
11152/12EW/io2
ANNEXDGB I BLIMITE EN
ANNEXJoint proposal of Hungary, Czech Republic, Latvia, Lithuania, Slovakia and Romania for differentiated basic payment The draft Regulation on direct payments foresees that from 1st of January 2014 all Member States of the EU, i.e. countries applying SPS as well as the countries applying the SAPS, shall switch to a uniform payment system applicable throughout the EU.
•However, the current proposal gives the Member States currently applying SPS models advantage regarding the possibility to differentiate the value of payment entitlements after 2014.
•This possibility is not available for Member States currently applying SAPS.
•It does not take account of the need for following the principle of equal treatment between Member States.
•Therefore, Article 22 of the proposed direct payments Regulation should be amended accordingly.
From 2014 the draft Regulation for direct payments enables the Member States applying SPS, based on Article 22(2)-(3), to partly incorporate the value of the payment entitlements distributed pursuant to Regulation (EC) No 73/2009 into the value of their basic payment entitlements. In addition to the 2000-2002 references, the values of these SPS entitlements also include additional supports coming from the subsequent sectoral reforms (Mediterranean reform, sugar reform, fruits and vegetables reform, vine reform, health check) including certain specific supports specified in Article 68 of Regulation (EC) No 73/2009 as well (Article 68(1)(c)).
According to the draft Regulation, in case of those farmers of the Member States applying SPS, where the value of basic support entitlements does not reach the total value of the payment entitlements possessed as of 31 December 2013 each payment entitlement can be increased in proportion to the difference.
Príloha 3/strana 3
11152/12EW/io3
ANNEXDGB I BLIMITE EN
However, it does not provide this opportunity for the Member States switching from the SAPS system; they cannot carry on any other historical reference into the basic entitlement system to be introduced from 2014 even though countries fulfil similar criteria as those currently proposed in Article 22 and would be forced to introduce a uniform value of payment entitlements without any transition period, i.e. starting already from 2014. Hence, we consider the regulation does not cater for the principle of equal treatment between Member States. Therefore, we demand that new Member States receive the opportunity to proportionally increase the value of the basic payment entitlements in such cases when the value of the basic entitlements is lower than the total direct support received when applying SAPS. To this end, we propose that separate payments, specific support via Articles 68(1)(b) (specific disadvantages in the dairy, beef and veal, sheepmeat and goatmeat and rice sectors) and 68(1)(c) (restructuring payments) and the Complementary National Direct Payments should also be taken into account to calculate the increase of those entitlements. It should not be overlooked that for those NMS who wished to switch to SPS before 2013 – pursuant to Article 57(3) of Regulation (EC) No 73/2009 —, an equivalent facility was available in the current rules.
For the calculation of the value of payment entitlements the following should be taken into account concerning the Member States who apply the SAPS:
•specific supports (68 1(b)),
•specific supports (68(1)c)),
•separate payments
•complementary national direct payments
granted to their farmers in a reference period between 2010 and 2013. Such period may consist of one single year or the average of more years. For each component of the increase different reference period may also be applied"
This way, a differentiated value of basic payment entitlements would be formed which may reflect amounts received through SAPS, decoupled restructuring support, complementary national direct payment and separate payments, which would ensure for the NMS an option equivalent to the one available to MS already applying SPS.
Príloha 3/strana 4
11152/12EW/io4
ANNEXDGB I BLIMITE EN
In order to respect the principle of equal treatment for those member states who would be unable to use the solution mentioned above an alternative option should be the differentiation of payment entitlements according to the land use (eg.: hectares of arable land, grassland and extensive grassland Therefore we propose an adjustment in Article 22 of the draft direct payments regulation
on the basis that it is optional possibility for these Member States
Possible wording of the draft is enclosed in Annex as a basis for discussion.
Príloha 3/strana 5
11152/12EW/io5
ANNEX TO THE ANNEXDGB I BLIMITE EN
ANNEX TO THE ANNEX„(2) Member States which applied the single payment scheme as provided for in Regulation (EC) No 73/2009, may limit the calculation of the unit value of payment entitlements provided for in paragraph 1 to an amount corresponding to no less than 40 % of the national or regional ceiling established under Articles 19 or 20, after application of the linear reduction provided for in Article 23(1). (3) Member States making use of the possibility provided for in paragraph 2 shall use the part of the ceiling which remains after the application of that paragraph to increase the value of payment entitlements in cases where the total value of payment entitlements held by a farmers under the basic payment scheme calculated according to paragraph 2 is lower than the total value of payment entitlements, including special entitlements, he held on 31 December 2013 under the single payment scheme in accordance with Regulation (EC) No 73/2009. To this end, the national or regional unit value of each of the payment entitlement of the farmer concerned shall be increased by a share of the difference between the total value of the payment entitlements under the basic payment scheme calculated according to paragraph 2 and the total value of payment entitlements, including special entitlements, which the farmer held on 31 December 2013 under the single payment scheme in accordance with Regulation (EC) No 73/2009.
For the calculation of the increase, a Member State may also take into account the support granted in calendar year 2013 pursuant to Articles 52, 53(1), and 68(1)(b) of Regulation (EC) No 73/2009 provided that the Member State has decided not to apply the voluntary coupled support pursuant to Title IV of this Regulation to the relevant sectors.
For the purpose of the first subparagraph, a farmer is considered to hold payment entitlements on 31 December 2013 where payment entitlements were allocated or definitively transferred to him by that date.
Príloha 3/strana 6
11152/12EW/io6
ANNEX TO THE ANNEXDGB I BLIMITE EN
(3a) For the calculation of value of entitliments, Member States which applied the Single Area Payment Scheme when calculating the increase referred to in paragraph (3) may take into account the total value of the SAPS, separate payments (2011) or (2012) or (2013), specific support pursuant to Articles 68 (1b) and/or 68(1)(c) granted to their farmers in (2012) or (2013) and complementary national direct payments (2010) or (2013) (,or may determine different per unit values of the payment entitlements for hectares of arable land, grassland and extensive grassland).” ___________________
