REPORT on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1290/2005 on the financing of the common agricultural policy and repealing Council Regulation (EC) No 165/94 and Council Regulation (EC) No 78/2008

31.5.2011 - (COM(2010)0745 – C7‑0429/2010 – 2010/0365(COD)) - ***I

Committee on Agriculture and Rural Development
Rapporteur: Giovanni La Via

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1290/2005 on the financing of the common agricultural policy and repealing Council Regulation (EC) No 165/94 and Council Regulation (EC) No 78/2008

(COM(2010)0745 – C7‑0429/2010 – 2010/0365(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to Parliament and the Council (COM(2010)0745),

–   having regard to Article 294(2) and Article 42 and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0429/2010),

–   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–   having regard to the reasoned opinion submitted within the framework of the Protocol (No 2) on the application of the principles of subsidiarity and proportionality by the Polish Senate, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–   having regard to the other contributions submitted by the Italian Chamber of Deputies, the Portuguese Parliament and the Romanian Chamber of Deputies with regard to the draft legislative act,

–   having regard to the opinion of the European Economic and Social Committee of 4 May 2011[1]

–   having regard to Rule 55 of its Rules of Procedure,

–   having regard to the report of the Committee on Agriculture and Rural Development (A7-0209/2011),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment  1 Proposal for a regulation - amending act Recital 3
Text proposed by the Commission	Amendment
(3) The Commission should have the power to adopt delegated acts in accordance with Article 290 of the Treaty in order to supplement or amend certain non-essential elements of Regulation (EC) No 1290/2005. The elements for which that power may be exercised and the conditions to which that delegation must be subject should be defined.	(3) In order to ensure the proper functioning of the regime established by this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of supplementing or amending certain non-essential elements of Regulation (EC) No 1290/2005. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.
Justification
Text in accordance with the Common Understanding on practical arrangements for the use of delegated acts.
Amendment  2 Proposal for a regulation - amending act Recital 4
Text proposed by the Commission	Amendment
(4) In order to guarantee a uniform application of Regulation (EC) No 1290/2005 in all Member States, the Commission should be empowered to adopt implementing acts in accordance with Article 291 of the Treaty. The Commission should adopt those implementing acts in accordance with the provisions of Regulation (EU) No xxx/xxx of the European Parliament and the Council on1 ...	(4) In order to ensure uniform conditions for the implementation of Regulation (EC) No 1290/2005, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers1
_____________	_____________
1 OJ L [...], […], p.[…].	1 OJ L 55, 28.2.2011, p. 13
Justification
Text in accordance with the templates for provisions on implementing acts subject to control by Member States, in line with the Regulation of the European Parliament and the Council laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers
Amendment  3 Proposal for a regulation - amending act Article 1 – point 10 Regulation 1290/2005/EC Article 18 – paragraph 4
Text proposed by the Commission Amendment 4. If by 30 June in any year the Council has not set the adjustments referred to in Article 11(1) of Council Regulation (EC) No 73/2009, the Commission shall set those adjustments by implementing act in accordance with the procedure referred to in Article 42d(3) (advisory procedure) of this Regulation and shall inform the Council of them immediately. 4. If by 30 June in any year the adjustments referred to in Article 11(1) of Council Regulation (EC) No 73/2009 have not been set, the Commission shall set those adjustments by implementing act and shall inform the European Parliament and the Council of them immediately. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 42d(3).
Amendment  4 Proposal for a regulation - amending act Article 1 – point 11 Regulation 1290/2005/EC Article 19 – paragraph 2
Text proposed by the Commission Amendment 2. If, on drawing up the draft budget for financial year N, there appears to be a risk that the net balance referred to in Article 12(3) for financial year N will be exceeded, taking account of the margin provided for in Article 11 of Regulation (EC) No 73/2009, the Commission shall propose to the Council the measures necessary, including those required under Article 11(2) of Regulation (EC) No 73/2009. 2. If, on drawing up the draft budget for financial year N, there appears to be a risk that the net balance referred to in Article 12(3) for financial year N will be exceeded, taking account of the margin provided for in Article 11 of Regulation (EC) No 73/2009, the Commission shall propose the measures necessary, including those required under Article 11(2) of Regulation (EC) No 73/2009.
Amendment  5 Proposal for a regulation - amending act Article 1 – point 11 Regulation 1290/2005/EC Article 19 – paragraph 3
Text proposed by the Commission Amendment 3. At any time, if the Commission considers that there is a risk of the net balance referred to in Article 12(3) being exceeded and that it cannot take adequate measures to remedy the situation under its powers, it shall propose other measures to ensure compliance with that balance. These measures shall be adopted by the Council or the European Parliament and the Council.' 3. At any time, if the Commission considers that there is a risk of the net balance referred to in Article 12(3) being exceeded and that it cannot take adequate measures to remedy the situation under its powers, it shall propose other measures to ensure compliance with that balance. These measures shall be adopted in accordance with Article 43(2) TFEU.'
Amendment  6 Proposal for a regulation - amending act Article 1 – point 16 a (new) Regulation 1290/2005/EC Article 29 – paragraph 1 a (new)
Text proposed by the Commission Amendment (16a) In Article 29, the following paragraph 1a is inserted:   1a. For Member States which have opted to organise their rural development programmes on a regional basis, the calculation of the amount to be automatically decommitted may be made at the level of the Member State.
Amendment  7 Proposal for a regulation - amending act Article 1 – point 27 Regulation 1290/2005/EC Article 42 a
Text proposed by the Commission Amendment (27) The following Articles 42a, 42b, 42c and 42d are inserted: (27) The following Articles 42a and 42d are inserted: Article 42a Article 42a Exercise of the delegation Exercise of the delegation 1. The powers to adopt the delegated acts referred to in this Regulation shall be conferred on the Commission for an indeterminate period of time. 1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. As soon as it adopts a delegated act, the Commission shall simultaneously notify the European Parliament and the Council that it has done so.   3. The power to adopt delegated acts shall be conferred on the Commission subject to the conditions laid down in Articles 42b and 42c. 3. The delegation of power referred to in Articles 6(5), 6(6), 7(2), 9(4), 16(2), 31(a), 35a(1), 35a(2), in Article 37a and in Article 40a(1-6) of this Regulation shall be conferred on the Commission for a period of five years from …*. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of this five years period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.   3a. The delegation of power may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.   3b. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.   3c. A delegated act adopted pursuant to this Regulation shall enter into force only if no objection has been expressed either by the Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.   _____________   * Date of entry into force of this Regulation.
Amendment  8 Proposal for a regulation - amending act Article 1 – point 27 Regulation 1290/2005/EC Article 42 b
Text proposed by the Commission Amendment Article 42b deleted Revocation of the delegation   1. The delegation of power referred to in Article 42a may be revoked at any time by the European Parliament or by the Council.   2. The institution which has initiated an internal procedure for deciding whether to revoke the delegation of power shall endeavour to inform the other institution and the Commission within a reasonable period of time before taking a final decision, indicating the delegated powers which could be subject to revocation and possible reasons for such revocation.   3. The decision of revocation shall put an end to the delegation of the powers specified in that decision. It shall take effect immediately or at a later date specified therein. It shall not affect the validity of the delegated acts already in force. It shall be published in the Official Journal of the European Union.
Amendment  9 Proposal for a regulation - amending act Article 1 – point 27 Regulation 1290/2005/EC Article 42 c
Text proposed by the Commission Amendment Article 42c deleted Objections to delegated acts   1. The European Parliament or the Council may object to a delegated act within a period of two months from the date of notification. At the initiative of the European Parliament or the Council, this period shall be extended by one month.   2. If, on expiry of that period, neither the European Parliament nor the Council has objected to the delegated act it shall be published in the Official Journal of the European Union and shall enter into force on the date stated therein.   The delegated act may be published in the Official Journal of the European Union and enter into force before the expiry of that period if the European Parliament and the Council have both informed the Commission of their intention not to raise objections.   3. If the European Parliament or the Council objects to a delegated act, it shall not enter into force. The institution which objects shall state the reasons for objecting to the delegated act.
Amendment  10 Proposal for a regulation - amending act Article 1 – point 27 Regulation 1290/2005/EC Article 42 d
Text proposed by the Commission Amendment Article 42d Article 42d Implementing acts - committee Committee procedure 1. The Commission shall be assisted by the Committee on the Agricultural Funds. 1. The Commission shall be assisted by the Committee on the Agricultural Funds. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011*. 2. When implementing acts are adopted pursuant to this paragraph, Article [5] of Regulation (EU) No [xxxx/yyyy] (to be completed following the adoption of the regulation on control mechanisms, as referred to in Article 291(3) of the TFEU, currently the subject of discussion by the European Parliament and the Council) shall apply.(examination procedure) 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. 3. When implementing acts are adopted pursuant to this paragraph, Article [4] of Regulation (EU) No [xxxx/yyyy] (to be completed following the adoption of the regulation on control mechanisms, as referred to in Article 291(3) of the TFEU, currently the subject of discussion by the European Parliament and the Council) shall apply.(advisory procedure).' 3. Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.   __________________   * OJ L 55, 28.2.2011, p. 13.

• [1]  Not yet published in the Official Journal

EXPLANATORY STATEMENT

Following the Lisbon Treaty, the harmonisation of Regulation (EC) No 1290/2005 with the new rules contained in the Treaty is based on a classification into delegated powers and implementing powers of the provisions adopted by the Commission pursuant to that Regulation. Based on the criteria defined in Articles 290 and 291 for each type of act respectively, the rapporteur carefully scrutinized the Commission proposal and identified areas where the conditions for delegated acts were met. Consequently, the proposal was scrutinized on the conditions of implementing acts.

The rapporteur proposes some amendments as regards the conditions of the delegation (period of delegation, timeframe for objecting to a delegated act, extension of that period, committee procedure, etc.) in accordance with the Common Understanding on practical arrangements for the use of delegated acts approved by the Conference of Presidents on 3 March 2011 and Regulation 182/2011 of the European Parliament and the Council laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers.

Simplification.

The amendments relating to the expenditure to be financed by the EAGF and the recovery procedure constitute a simplification in that they replace two Council regulations and result in a decrease in the administrative tasks incumbent on Member States.

PROCEDURE

Title	Amendment of Council Regulation (EC) No 1290/2005 on the financing of the common agricultural policy and repealing Council Regulation (EC) No 165/94 and Council Regulation (EC) No 78/2008
References	COM(2010)0745 – C7-0429/2010 – 2010/0365(COD)
Date submitted to Parliament	15.12.2010
Committee responsible        Date announced in plenary	AGRI 18.1.2011
Rapporteur(s)        Date appointed	Giovanni La Via 26.1.2011	Giovanni La Via 26.1.2011	Giovanni La Via 26.1.2011	Giovanni La Via 26.1.2011
Rule 51 – joint committee meetings        Date announced in plenary
Discussed in committee	1.2.2011	11.4.2011
Date adopted	25.5.2011
Result of final vote	+: –: 0:	36 4 0
Members present for the final vote	John Stuart Agnew, Liam Aylward, José Bové, Luis Manuel Capoulas Santos, Vasilica Viorica Dăncilă, Michel Dantin, Paolo De Castro, Albert Deß, Diane Dodds, Herbert Dorfmann, Hynek Fajmon, Lorenzo Fontana, Iratxe García Pérez, Béla Glattfelder, Sergio Gutiérrez Prieto, Martin Häusling, Esther Herranz García, Peter Jahr, Elisabeth Jeggle, Jarosław Kalinowski, Elisabeth Köstinger, George Lyon, Gabriel Mato Adrover, Mairead McGuinness, Krisztina Morvai, Mariya Nedelcheva, James Nicholson, Rareş-Lucian Niculescu, Wojciech Michał Olejniczak, Georgios Papastamkos, Marit Paulsen, Britta Reimers, Ulrike Rodust, Alfreds Rubiks, Giancarlo Scottà, Czesław Adam Siekierski, Sergio Paolo Francesco Silvestris, Alyn Smith, Csaba Sándor Tabajdi, Marc Tarabella, Janusz Wojciechowski
Substitute(s) present for the final vote	Salvatore Caronna, Spyros Danellis, Jill Evans, Karin Kadenbach, Sandra Kalniete, Giovanni La Via, Véronique Mathieu, Maria do Céu Patrão Neves, Robert Sturdy, Artur Zasada
Date tabled	31.5.2011