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Posted on 19-06-2019

The Union’s expenditure

01-05-2018

Budget expenditure is approved jointly by the Council and Parliament. The annual EU budget must respect the budgetary ceilings agreed under the multiannual financial framework (MFF) for different programmes and policies, such as those on cohesion, agriculture and external relations. Flexibility instruments ensure that the EU can react in the event of unexpected needs. Use of financial instruments creates a leverage effect as regards EU spending.

Budget expenditure is approved jointly by the Council and Parliament. The annual EU budget must respect the budgetary ceilings agreed under the multiannual financial framework (MFF) for different programmes and policies, such as those on cohesion, agriculture and external relations. Flexibility instruments ensure that the EU can react in the event of unexpected needs. Use of financial instruments creates a leverage effect as regards EU spending.

Multiannual Financial Framework

01-02-2018

There have been five multiannual financial frameworks (MFFs) to date. The Treaty of Lisbon transformed the MFF from an interinstitutional agreement into a legally binding act. Established for a period of at least five years, an MFF must ensure that the Union’s expenditure develops in an orderly manner and within the limits of its own resources, and sets out provisions with which the annual budget of the Union must comply, thus laying down the cornerstone of financial discipline.

There have been five multiannual financial frameworks (MFFs) to date. The Treaty of Lisbon transformed the MFF from an interinstitutional agreement into a legally binding act. Established for a period of at least five years, an MFF must ensure that the Union’s expenditure develops in an orderly manner and within the limits of its own resources, and sets out provisions with which the annual budget of the Union must comply, thus laying down the cornerstone of financial discipline.

Implementation of the budget

01-01-2018

The Commission is responsible for implementing the budget in cooperation with the Member States, subject to political scrutiny by the European Parliament.

The Commission is responsible for implementing the budget in cooperation with the Member States, subject to political scrutiny by the European Parliament.

The common agricultural policy (CAP) and the Treaty

01-04-2018

Following the entry into force of the Treaty of Rome, Member States’ agricultural policies were replaced by intervention mechanisms at Community level. The foundations of the common agricultural policy (CAP) have remained unchanged since the Treaty of Rome, with the exception of rules relating to the decision-making procedure. The Lisbon Treaty recognised codecision as the ‘ordinary legislative procedure’ for the CAP, in place of the consultation procedure.

Following the entry into force of the Treaty of Rome, Member States’ agricultural policies were replaced by intervention mechanisms at Community level. The foundations of the common agricultural policy (CAP) have remained unchanged since the Treaty of Rome, with the exception of rules relating to the decision-making procedure. The Lisbon Treaty recognised codecision as the ‘ordinary legislative procedure’ for the CAP, in place of the consultation procedure.

Financing of the CAP

01-04-2018

For many years, the common agricultural policy (CAP) was financed from a single fund, the European Agricultural Guidance and Guarantee Fund (EAGGF), which on 1 January 2007 was replaced by the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).

For many years, the common agricultural policy (CAP) was financed from a single fund, the European Agricultural Guidance and Guarantee Fund (EAGGF), which on 1 January 2007 was replaced by the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).

The common agricultural policy – instruments and reforms

01-04-2018

The common agricultural policy (CAP) has undergone five major reforms, the most recent of which were in 2003 (mid-term review), 2009 (the ‘Health Check’) and 2013 (for the 2014-2020 financial period). The first discussions on the post-2020 CAP began in 2016 and the corresponding legislative proposals were unveiled in June 2018.

The common agricultural policy (CAP) has undergone five major reforms, the most recent of which were in 2003 (mid-term review), 2009 (the ‘Health Check’) and 2013 (for the 2014-2020 financial period). The first discussions on the post-2020 CAP began in 2016 and the corresponding legislative proposals were unveiled in June 2018.

First pillar of the CAP: I — Common organisation of the markets (CMO) in agricultural products

01-04-2018

The CMO is the framework for the market measures provided for under the CAP. Following a series of reforms, 21 separate CMOs were codified in 2007 into a single CMO, covering all agricultural products. Reforms to the CAP have also made the policy progressively more market-oriented and scaled down the role of intervention tools, which are now regarded as safety nets to be used only in the event of a crisis.

The CMO is the framework for the market measures provided for under the CAP. Following a series of reforms, 21 separate CMOs were codified in 2007 into a single CMO, covering all agricultural products. Reforms to the CAP have also made the policy progressively more market-oriented and scaled down the role of intervention tools, which are now regarded as safety nets to be used only in the event of a crisis.

First pillar of the common agricultural policy (CAP): II – Direct payments to farmers

01-04-2018

The 2003 reform and the 2009 Health Check decoupled most direct aid and transferred it to the new single payment scheme (SPS) or the single area payment scheme for new Member States. Regulation (EU) No 1307/2013 defines the direct payments system with effect from 1 January 2015.

The 2003 reform and the 2009 Health Check decoupled most direct aid and transferred it to the new single payment scheme (SPS) or the single area payment scheme for new Member States. Regulation (EU) No 1307/2013 defines the direct payments system with effect from 1 January 2015.

Second pillar of the CAP: rural development policy

01-04-2018

As the second pillar of the common agricultural policy (CAP), the EU’s rural development policy is designed to support rural areas of the Union and meet the wide range of economic, environmental and societal challenges of the 21st century. A higher degree of flexibility (in comparison with the first pillar) enables regional, national and local authorities to formulate their individual seven-year rural development programmes based on a European ‘menu of measures’. Contrary to the first pillar, which ...

As the second pillar of the common agricultural policy (CAP), the EU’s rural development policy is designed to support rural areas of the Union and meet the wide range of economic, environmental and societal challenges of the 21st century. A higher degree of flexibility (in comparison with the first pillar) enables regional, national and local authorities to formulate their individual seven-year rural development programmes based on a European ‘menu of measures’. Contrary to the first pillar, which is entirely financed by the EU, the second pillar programmes are co-financed by EU funds and regional or national funds.

WTO Agreement on Agriculture

01-04-2018

The domestic support systems in agriculture are governed by the Agreement on Agriculture (AoA), which entered into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through the negotiations of commitments on support and protection, and through the establishment of strengthened and more operationally effective rules and discipline. Agriculture is ...

The domestic support systems in agriculture are governed by the Agreement on Agriculture (AoA), which entered into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through the negotiations of commitments on support and protection, and through the establishment of strengthened and more operationally effective rules and discipline. Agriculture is therefore special because the sector has its own agreement, whose provisions prevail.

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