REPORT on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013
11.5.2012 - (COM(2011)0630 – C7‑0337/2011 – 2011/0286(COD)) - ***I
Committee on Agriculture and Rural Development
Rapporteur: Luis Manuel Capoulas Santos
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013
(COM(2011)0630 – C7‑0337/2011 – 2011/0286(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2011)0630),
– having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0337/2011),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the opinion of the European Economic and Social Committee of 25 April 2012[1],
– having regard to the opinion of the Committee of the Regions of 3 May 2012[2],
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Agriculture and Rural Development and the opinion of the Committee on Budgets (A7-0163/2012),
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 Recital 2 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(2a) Regulation (EC) 378/2007 established a mechanism for voluntary modulation of direct payments, with a view to strengthening rural development policy in certain Member States. It is important, therefore, to provide continuity of funding for the commitments in rural development expenditure for the financial year 2014 and to ensure that the amount of direct payments in the calendar year 2013 is maintained at a similar level to that of 2012, without prejudice to the establishment of direct payment national ceilings during the next Financial Framework. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
The current provision for voluntary modulation of direct payments ends in 2012. The UK is the only Member State to apply this mechanism and therefore faces a significant gap in funding for its rural development programme in 2013. This threatens to undermine the delivery of existing rural development commitments in the financial year in question. | ||||||||||||||||||||||||||||||||||
Amendment 2 Proposal for a regulation Recital 3 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(3) For the smooth functioning of direct payments in calendar year 2013, it is necessary to extend the net ceilings set out for calendar year 2012 to 2013 and adjust them where necessary, in particular as regards the increases resulting from the phasing-in of direct payments in the new Member States and the cessation of voluntary modulation provided for in Council Regulation (EC) No 378/2007 of 27 March 2007 laying down rules for voluntary modulation of direct payments provided for in Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers . |
(3) For the smooth functioning of direct payments in calendar year 2013, it is necessary to extend the net ceilings set out for calendar year 2012 to 2013 and adjust them where necessary, in particular as regards the increases resulting from the phasing-in of direct payments in the new Member States. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
The current provision for voluntary modulation of direct payments ends in 2012. The UK is the only Member State to apply this mechanism and therefore faces a significant gap in funding for its rural development programme in 2013. This threatens to undermine the delivery of existing rural development commitments in the financial year in question. | ||||||||||||||||||||||||||||||||||
Amendment 3 Proposal for a regulation Recital 4 a (new) | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
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(4a) In order to ensure the correct implementation of direct payments to be made by the Member States with respect to applications made in 2013, 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 the relevant rules concerning the basis of calculation for reductions to be applied to the farmers by the Member States in 2013 due to the adjustment of payments and financial discipline. 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 to the Council. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Adaptation of legal text in accordance with the Common Understanding on practical arrangements for the use of delegated acts (Article 290 TFUE). | ||||||||||||||||||||||||||||||||||
Amendment 4 Proposal for a regulation Recital 5 | ||||||||||||||||||||||||||||||||||
Text proposed by the Commission |
Amendment | |||||||||||||||||||||||||||||||||
(5) The financial transfers to the European Agricultural Fund for Rural Development provided for in Articles 134, 135 and 136 of Regulation (EC) No 73/2009 relate to the 2007-2013 multi-annual financial perspectives. However, calendar year 2013 corresponds to financial year 2014 falling under the next multi-annual financial framework which permanently sets out the amounts available for rural development programming. Consequently, such financial transfers should be abolished. |
(5) The financial transfers to the European Agricultural Fund for Rural Development provided for in Articles 134 and 135 of Regulation (EC) No 73/2009 relate to the 2007-2013 multi-annual financial perspectives. However, calendar year 2013 corresponds to financial year 2014 falling under the next multi-annual financial framework which permanently sets out the amounts available for rural development programming. Consequently, such financial transfers should be abolished. | |||||||||||||||||||||||||||||||||
Justification | ||||||||||||||||||||||||||||||||||
Art. 69(6)(b) of Reg. 73/2009 allows MS to use unused direct payments for specific support measures (Art. 68(1)) or for the EAFRD (Art. 136). The COM proposal repeals Art. 136, while leaving Art. 68/69 in force. This discriminates MS having opted for transfers under Art. 136 since they can use these funds in the calendar year 2013 (=financial year 2014) neither in Pillar I nor in the EAFRD. This unequal treatment can be avoided by not repealing Art. 136. | ||||||||||||||||||||||||||||||||||
Amendment 5 Proposal for a regulation – amending act Article 1 – point 2 a (new) Regulation (EC) No 73/2009 Article 10 b (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
The current provision for voluntary modulation of direct payments ends in 2012. The UK is the only Member State to apply this mechanism and therefore faces a significant gap in funding for its rural development programme in 2013. This threatens to undermine the delivery of existing rural development commitments in the financial year in question. | ||||||||||||||||||||||||||||||||||
Amendment 6 Proposal for a regulation – amending act Article 1 – point 3 a (new) Regulation (EC) No 73/2009 Article 11 – paragraph 2 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Maintaining Article 11 (regarding financial discipline) unchanged - with the Council acting on a proposal from the Commission - would constitute a continuation of the reservation of Council's implementing powers under the former Article 202 EC. However, in the new legislative context, your rapporteur considers that this reservation of implementing powers for the Council is no longer justified. | ||||||||||||||||||||||||||||||||||
Amendment 7 Proposal for a regulation – amending act Article 1 – point 4 Regulation (EC) No 73/2009 Article 11 a | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
A new Article 11a has to be inserted here since the alignment proposal COM(2010) 539 is not yet adopted. The scope of the delegated acts should be limited in time. The delegation of powers should only concern rules applicable in respect of the year 2013 consistent with the scope and purpose of this proposal. | ||||||||||||||||||||||||||||||||||
Amendment 8 Proposal for a regulation – amending act Article 1 – point 4 a (new) Regulation (EC) No 73/2009 Article 68 – paragraph 8 – introductory part | ||||||||||||||||||||||||||||||||||
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Amendment 9 Proposal for a regulation – amending act Article 1 – point 4 b (new) Regulation (EC) No 73/2009 Article 69 – paragraph 1 | ||||||||||||||||||||||||||||||||||
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Amendment 10 Proposal for a regulation – amending act Article 1 – point 4 c (new) Regulation (EC) No 73/2009 Article 133 a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Regulation No 73/2009 has established a framework of EU direct payments and complementary national direct payments to be applicable in new MS. As a consequence during the last years from 2009 until 2011 total receipts of direct payments for farmers in several new MS in all farming sectors have reached the levels of direct payments received by farmers in the MS applying historical single payment scheme (SPS). Therefore it is important to maintain the amount of direct support in year 2013 and beyond on a level similar to that of 2012 and it is appropriate to establish a transitional mechanism for 2013. To avoid market distortions created due to different manner of implementation of recent CAP reforms in different MS, it is necessary to provide possibility to the new MS to grant transitional national support in 2013 while direct payments will be introduced uniformly in all MS. In order to provide smooth transition from currently applied direct payment system to the reformed and uniformly implemented direct payment system it is appropriate to establish a transitional mechanism for 2013. | ||||||||||||||||||||||||||||||||||
Amendment 11 Proposal for a regulation – amending act Article 1 – point 5 Regulation (EC) No 73/2009 Articles 134, 135, 136 | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Art. 69(6)(b) of Reg. 73/2009 allows MS to use unused direct payments for specific support measures (Art. 68(1)) or for the EAFRD (Art. 136). The COM proposal repeals Art. 136, while leaving Art. 68/69 in force. This discriminates MS having opted for transfers under Art. 136 since they can use these funds in the calendar year 2013 (=financial year 2014) neither in Pillar I nor in the EAFRD. This unequal treatment can be avoided by not repealing Art. 136. | ||||||||||||||||||||||||||||||||||
Amendment 12 Proposal for a regulation – amending act Article 1 – point 5 a (new) Regulation (EC) No 73/2009 Article 142 a (new) | ||||||||||||||||||||||||||||||||||
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Justification | ||||||||||||||||||||||||||||||||||
Adaptation of legal text in accordance with the Common Understanding on practical arrangements for the use of delegated acts (Article 290 TFUE). |
EXPLANATORY STATEMENT
Council Regulation (EC) No 73/2009 provides the rules for the current system of direct payments to farmers. That Regulation is expected to be superseded by the CAP reform proposals for 2014-2020, which are due to apply as from 1 January 2014. While Council regulation (EC) No 73/2009 continues to apply in 2013, there are some financial provisions within it which only run until 2012. In addition, calendar year 2013 corresponds to financial year 2014, and therefore falls under the new multi-annual financial framework of 2014-2020. This proposal has been produced to deal with the financial provisions for the 2013 transitional period.
The main purpose of the proposal is to set net ceilings for direct payments for the calendar year 2013 by establishing an adjustment mechanism similar to modulation, so as to ensure continuity in payment levels while taking into account the phasing-in of direct payments in the new Member States and the cessation of voluntary modulation.
1. Adjustment equivalent to compulsory modulation
The draft Regulation sets the level of reductions to be applied to farmers' direct payments in 2013, equivalent to the effect of existing compulsory modulation applicable in 2012. These adjustments are proposed to be set at a lower level, in the EU-10 Member States than in the EU-15 Member States. For EU-10 Member States, the level of adjustment in 2013 would be equal to 0% for amounts between 5,000 € and 300,000 € and to 4% for amounts over 300,000 €. Whereas for EU-15 Member States (excluding the Outermost regions and Aegean Islands), the level of adjustment in 2013 would remain equal to the level of compulsory modulation in 2012, which is currently fixed at 10% for amounts between 5,000 € and 300,000 € and 14% for amounts over 300,000 €. In the Outermost regions and the Aegean Islands, there would be no adjustments made. For Bulgaria and Romania there would also be no adjustments made as direct payments are still not fully phased-in there.
2. Voluntary modulation and other transfers to rural development
As mentioned previously, application year 2013 falls under the new multi-annual financial framework of 2014-2020 and the rural development amounts as thus defined. Consequently, the financial transfers to rural development programmes on the basis of articles 134, 135 and 136 of Council Regulation (EC) No 73/2009, are limited to the 2007-2013 period and should be abolished. Articles 134 and 135, referring to the additional transfers from the cotton and tobacco regimes to the rural development programmes respectively, have thus been deleted and the corresponding amounts have been included in the corresponding rural development envelopes in the multi-annual financial framework proposals. Article 136 has also been deleted and the unspent amounts have been included when calculating the relevant national ceilings for 2013.
Moreover, voluntary modulation provided for by Council Regulation (EC) No. 378/2007 is not continued in calendar year 2013.
3. Net ceilings for the total amount of direct payments
The draft Regulation also proposes changes to the total amount of direct payments each Member State can grant in 2013. These net ceilings are largely carried forward from the 2012 ceilings, with adjustments for the previously agreed phasing-in of direct payments to the new Member States and the cessation of voluntary modulation.
For EU-15 Member States (except for Germany, Sweden and the United Kingdom), the value of the net ceiling in 2013 would be equal to the value of the net ceiling in 2012, adapted in order to take into account the estimates on grubbing-up in 2012 (approx. 12 million € in total for Spain, Italy, France, Greece, Austria and Portugal) and the estimated transfer of the wine envelopes (approx. 160 million € in total for Greece, Spain, Luxembourg, and Malta and the United Kingdom) to the single payment scheme. For Germany and Sweden, the value of the net ceiling in 2013 would be the value of the net ceiling in 2012, to which would be added the amounts corresponding to the temporary transfer made to rural development for the financial year 2011 (Article 136) (approx. 52 million € in total for both Germany and Sweden). For the United Kingdom, the value of the net ceiling in 2013 would be the value of the net ceiling in 2012, to which would be added the amount corresponding to the annual transfer made by voluntary modulation to rural development (approx. 314 million €).
For EU-10 Member States, the value of the net ceiling in 2013 is adjusted to the amounts committed for financing the specific support under Article 68, as agreed in the Health Check, plus the phasing-in funds (approx. 550 million € in total). For Bulgaria and Romania, the situation in 2013 would be the same as in 2012 (i.e. no ceilings would be set).
4. Financial discipline
The current financial discipline provision requires all farmers’ direct payments to be scaled back if the Pillar 1 budget minus a 300 million € margin is forecast to be exceeded. In the current financial perspective, the purpose of the margin is to provide for a "safety net" in case of any unforeseen need for additional financing. In its proposals for the multi-annual financial framework and the CAP for 2014-2020, the Commission is proposing to make use of a new crisis reserve to address additional financing needs resulting from an unexpected agricultural crisis. In line with these proposals, the draft regulation removes the 300 million € margin for the financial year 2014.
The proposal also adds provisions for the Commission to adopt delegated acts to provide for rules on how Member States should apply the financial discipline adjustment on the amount of payments to be paid to farmers in 2013.
Finally, the rapporteur notes that the Commission proposal has been prepared on the premise that the alignment proposal COM(2010) 539 would be adopted first. Account should therefore be taken of this on-going procedure, possibly through additional amendments, at the time of adopting this report.
OPINION of the Committee on Budgets (25.4.2012)
for the Committee on Agriculture and Rural Development
on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation /EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013
(COM(2011)0630 – C7‑0337/2011 – 2011/0286(COD))
Rapporteur: Giovanni La Via
SHORT JUSTIFICATION
The Commission has presented a proposal for a regulation on the application of direct payments to farmers in respect of the year 2013 intended to amend Council Regulation (EC) 73/2009. While Council Regulation (EC) 73/2009 continues to apply in 2013, there are some financial provisions within it, which only run until the end of 2012. Moreover, calendar year 2013 accounts to financial year 2014, and therefore falls under the new multi-financial framework of 2014-2020.
The purpose of the Commission proposal is to set net ceilings for direct payments for the calendar year 2013 to ensure continuity in payment levels, whilst taking into account the phasing-in effect of direct payments in the new Member States and the discontinuation of voluntary modulation.
The Commission proposals set the level of reduced direct payments to farmers in 2013 at the same rate to be applied through compulsory modulation in 2012. In keeping with the existing structure it is made clear that EU-10 Member States will have a 0% level of adjustment for payments between EUR 5,000 and EUR 300,000 and a 4% for amounts above EUR 300,000 in 2013, whereas the adjustment for EU-15 Member States will be 10% for amounts between EUR 5,000 and EUR 300,000 and 14% above EUR 300,000. Excluded from this rule are the outermost regions, as well as Bulgaria and Romania, since the phasing-in period has not been completed.
Due to the fact that the financial year 2013 falls under the new multi-financial framework of 2014-2020 and with that the amounts for rural development are defined, the concept of voluntary modulation should be abolished. The Commission proposal also outlines the total amount of direct payments each Member State can grant in 2013. By and large the net ceilings are carried forward from the 2012 ceilings, with some adjustments concerning the phasing-in effects and voluntary modulation.
The net ceiling in 2013 for EU-15 Member States would be equal to the value of the net ceiling in 2012, with the adjustments deriving from grubbing-up in 2012 and the appraised transfer of the wine envelopes to the single payment scheme. This provision has an exception for Germany, Sweden and UK. For Germany and Sweden the amount corresponding to the temporary transfer made to rural development in the financial year 2011 would be added to the ceiling of 2012. For the UK the amount corresponding to the annual transfer made by voluntary modulation would be added to the ceiling of 2012. For EU-10 Member States the net ceiling of 2013 is adjusted to the amounts committed through the specific support, as agreed in the Health Check, plus the phasing-in funds.
The rapporteur would like to continue with the existing financial structure for the year 2013 to ensure continuity in payment levels. Moreover, the current financial discipline requires a minimum margin of EUR 300 million as a 'safety net' in cases of unforeseen events requiring additional financing. Complementary to a new multi-financial framework would be a newly installed crisis reserve, removing the EUR 300 million margin rule for the year 2014.
Therefore, for the above-mentioned reasons, the rapporteur supports in its entity the proposal by the Commission.
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The Committee on Budgets calls on the Committee on Agriculture and Rural Development, as the committee responsible, to propose that Parliament adopts its position at first reading taking over the Commission proposal.
PROCEDURE
Title |
Amendment of Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013 |
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References |
COM(2011)0630 – C7-0337/2011 – 2011/0286(COD) |
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Committee responsible Date announced in plenary |
AGRI 25.10.2011 |
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Committee(s) asked for opinion(s) Date announced in plenary |
BUDG 25.10.2011 |
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Rapporteur(s) Date appointed |
Giovanni La Via 6.2.2012 |
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Date adopted |
25.4.2012 |
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Result of final vote |
+: –: 0: |
31 1 0 |
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Members present for the final vote |
Zuzana Brzobohatá, Jean-Luc Dehaene, Isabelle Durant, Göran Färm, José Manuel Fernandes, Eider Gardiazábal Rubial, Salvador Garriga Polledo, Jens Geier, Ivars Godmanis, Estelle Grelier, Carl Haglund, Lucas Hartong, Jutta Haug, Monika Hohlmeier, Sidonia Elżbieta Jędrzejewska, Anne E. Jensen, Ivailo Kalfin, Jan Kozłowski, Alain Lamassoure, Giovanni La Via, George Lyon, Barbara Matera, Juan Andrés Naranjo Escobar, Vladimír Remek, Dominique Riquet, Potito Salatto, Helga Trüpel, Derek Vaughan |
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Substitute(s) present for the final vote |
Maria Da Graça Carvalho, Derk Jan Eppink, Georgios Papastamkos, Paul Rübig |
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PROCEDURE
Title |
Amendment of Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers in respect of the year 2013 |
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References |
COM(2011)0630 – C7-0337/2011 – 2011/0286(COD) |
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Date submitted to Parliament |
12.10.2011 |
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Committee responsible Date announced in plenary |
AGRI 25.10.2011 |
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Committee(s) asked for opinion(s) Date announced in plenary |
DEVE 25.10.2011 |
BUDG 25.10.2011 |
EMPL 25.10.2011 |
ENVI 25.10.2011 |
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REGI 25.10.2011 |
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Not delivering opinions Date of decision |
DEVE 25.1.2012 |
EMPL 27.10.2011 |
ENVI 24.10.2011 |
REGI 27.2.2012 |
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Rapporteur(s) Date appointed |
Luis Manuel Capoulas Santos 26.9.2011 |
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Discussed in committee |
29.2.2012 |
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Date adopted |
8.5.2012 |
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Result of final vote |
+: –: 0: |
38 1 1 |
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Members present for the final vote |
John Stuart Agnew, Liam Aylward, José Bové, Luis Manuel Capoulas Santos, Michel Dantin, Diane Dodds, Herbert Dorfmann, Robert Dušek, Hynek Fajmon, Iratxe García Pérez, Julie Girling, Béla Glattfelder, Sergio Gutiérrez Prieto, Martin Häusling, Esther Herranz García, Peter Jahr, Elisabeth Jeggle, Jarosław Kalinowski, Elisabeth Köstinger, George Lyon, Mairead McGuinness, Krisztina Morvai, Mariya Nedelcheva, James Nicholson, Wojciech Michał Olejniczak, Georgios Papastamkos, Marit Paulsen, Britta Reimers, Ulrike Rodust, Giancarlo Scottà, Czesław Adam Siekierski, Alyn Smith, Csaba Sándor Tabajdi, Janusz Wojciechowski |
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Substitute(s) present for the final vote |
Pilar Ayuso, María Auxiliadora Correa Zamora, Spyros Danellis, Sandra Kalniete, Christa Klaß, Giovanni La Via, Petri Sarvamaa, Milan Zver |
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Date tabled |
11.5.2012 |
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