Press Release: Commission tables proposal for ‘Financial Discipline’ for CAP direct payments in 2014 financial year

With the forecast for expenditure on CAP Direct Payments & Market measures for 2014 higher than the provisional ceiling for 2014 agreed by EU heads of government, the European Commission has tabled a proposal for "Financial Discipline" to ensure that spending remains within budget limits. The concept, established in 2003 but never triggered until now, requires the Commission to make a proposal before the end of March introducing a linear cut in CAP Direct Payments in order to ensure that the ceiling for the CAP's first pillar in the forthcoming year is respected.

The Commission proposal, which includes a threshold to exempt the first €5 000 of farmers' Direct Payments from any reduction, foresees a reduction of just under 5% (4.98%) in all Direct Payments – or an overall reduction of €1471.4m.

European Commission: DG Agriculture and Rural Development: Press Release, 10.10.13: Financial Discipline: 4.0% reduction in CAP Direct payments in 2014 budget year http://ec.europa.eu/agriculture/newsroom/136_en.htm

European Commission: DG Agriculture and Rural Development: Direct support: Direct payments http://ec.europa.eu/agriculture/direct-support/direct-payments/index_en.htm

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