(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2004)0490)(1),

–   having regard to Article 37 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0181/2004),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the opinion of the European Economic and Social Committee (CESE 251/05),

–   having regard to the report of the Committee on Agriculture and Rural Development and the opinions of the Committee on Budgets and the Committee on Regional Development (A6-0145/2005),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

Text proposed by the Commission   Amendments by Parliament Amendment 1 Recital 3 (3)  The reform of the CAP in June 2003 and April 2004 introduced major changes likely to have a significant impact on the economy across the whole rural territory of the Community in terms of agricultural production patterns, land management methods, employment and the wider social and economic conditions in rural areas. (3)  The reform of the CAP in June 2003 and April 2004 introduced major changes likely to have a significant impact on the economy across the whole rural territory of the Community in terms of the structural development of agriculture, regional distribution and intensity of production, as well as agricultural production patterns, land management methods, employment and the wider social and economic conditions in rural areas. Amendment 2 Recital 3 a (new) (3a) In the coming years, the European food and agriculture sector will become increasingly liberalised, and will have to be able to compete in the global marketplace. EU common policies should provide opportunities for improved competitiveness through innovation. Amendment 3 Recital 3 b (new) (3b) Increased competitiveness in the food and agricultural sector in rural areas will require the development of European quality labels that reflect food safety, documentation of production processes (traceability), animal welfare, environment and working conditions. Amendment 4 Recital 5 (5)  The Community may take measures in accordance with the principle of subsidiarity as provided for in Article 5 of the Treaty. Since the goal of rural development cannot be achieved adequately by the Member States given the links between it and the other instruments of the Common Agricultural Policy, the extent of the disparities between rural areas and the limits on the financial resources of the Member States in an enlarged Union, it can be better achieved at Community level through the multiannual guarantee of Community finance and by concentrating it on its priorities. According to the principle of proportionality as stated in Article 5 of the Treaty, the present Regulation does not exceed what is necessary to achieve this goal. (5)  The Community may take measures in accordance with the principle of subsidiarity as provided for in Article 5 of the Treaty. Since the goal of rural development cannot be achieved adequately by the Member States given the links between it and the other instruments of the common agricultural policy, the extent of the disparities between rural areas and the limits on the financial resources of the Member States in an enlarged Union, it can be better achieved at Community level through the multiannual guarantee of Community finance and by concentrating it on its priorities. The European Union must ensure that this Regulation is made financially viable through the allocation of sufficient funding to enable both old and new rural-development activities to be funded. According to the principle of proportionality as stated in Article 5 of the Treaty, the present Regulation does not exceed what is necessary to achieve this goal. Amendment 5 Recital 6 (6)  The activities of the European Agricultural Fund for Rural Development, hereinafter called the "Fund", and the operations to which it contributes must be consistent and compatible with the other Community policies and comply with all Community legislation. (6)  The activities of the European Agricultural Fund for Rural Development, hereinafter called the "Fund", and the operations to which it contributes must be consistent and compatible with cohesion policy in rural areas and the other Community policies and comply with all Community legislation. Amendment 6 Recital 7 (7)  In its action in favour of rural development the Community takes care to encourage the elimination of disparities and the promotion of equality between women and men in accordance with Articles 2 and 3 of the Treaty. (7)  In its action in favour of rural development the Community takes care to encourage the elimination of disparities and the promotion of non-discrimination and equality between women and men in accordance with Articles 2 and 3 of the Treaty. Amendment 7 Recital 11 (11)  To ensure the sustainable development of rural areas it is necessary to focus on a limited number of core priority objectives at Community level relating to agricultural and forestry competitiveness, land management and environment, and quality of life and diversification of activities in those areas. (11)  To ensure the sustainable development of rural areas it is necessary to focus on a limited number of core priority objectives at Community level relating to agricultural and forestry competitiveness, land management and environment, and quality of life and diversification of activities in those areas, taking into account, however, the diversity of situations within the EU, ranging from remote rural areas suffering from depopulation and decline to peri-urban areas under increasing pressure from urban centres. Amendment 8 Recital 16 (16)  The granting of specific benefits to young farmers may facilitate both their initial establishment and the structural adjustment of their holdings after their initial setting up. The setting-up measure should be streamlined by granting a single premium and made conditional on the establishment of a business plan ensuring the development of young farmers" activities. (16)  The granting of specific benefits to young farmers may facilitate both their initial establishment and the structural adjustment of their holdings after their initial setting up. The setting-up measure should be conditional upon the presentation of a suitable business plan as an instrument to ensure over time the development of the activity of the new undertaking. In order to facilitate the starting-up and development of the new undertaking this business plan should be backed up by appropriate incentives, by means of an integrated package of measures concerning the various axes of intervention. Amendment 9 Recital 23 (23)  Improvements in the processing and marketing of primary agricultural and forestry production should be encouraged by means of support for investments aimed at improving efficiency in the processing and marketing sector, promoting the processing of agricultural and forestry production for renewable energy, introducing new technologies, opening new market opportunities for agricultural and forestry products, putting emphasis on quality, improving performance in the environmental protection, occupational safety, hygiene and animal welfare fields, as appropriate, by targeting small and micro-enterprises which are better placed to add value to local products, while simplifying the conditions for investment aid as compared with those laid down in Council Regulation (EC) No 1257/1999. (23)  Improvements in the processing and marketing of primary agricultural and forestry production should be encouraged by means of support for investments aimed at improving efficiency in the processing and marketing sector, promoting the processing of agricultural and forestry production for renewable energy, introducing new technologies, opening new market opportunities for agricultural and forestry products, putting emphasis on quality, improving performance in the environmental protection, occupational safety, hygiene and animal welfare fields, by supporting micro-enterprises, small and medium-sized enterprises and collective producer entities, which are better placed to add value to local products, while simplifying the conditions for investment aid as compared with those laid down in Council Regulation (EC) No 1257/1999. Amendment 10 Recital 32 (32)  Natural handicap payments in mountain areas and payments in other areas with handicaps should contribute, through continued use of agricultural land, to maintaining the countryside, and the maintenance and promotion of sustainable farming systems. Objective parameters for fixing the level of payments should be laid down in order to ensure the efficiency of this support scheme and ensure that its objectives are achieved. (32)  Natural handicap payments in mountain areas and payments in other areas with handicaps should contribute, through continued use of agricultural land, to maintaining the countryside, and the maintenance and promotion of sustainable farming systems. Objective parameters for fixing the level of payments should be laid down in order to ensure the efficiency of this support scheme and ensure that its objectives are achieved. While maintaining the requisite continuity in the demarcation of areas with handicaps, in future the basic concept should focus mainly on natural handicaps within a Member State. For the system of compensatory payments, Member States should be called upon to develop systems which differentiate objectively. The Commission is called upon to submit a comprehensive study on how to define areas with handicaps, looking at all relevant aspects. Until then, the current definition should apply. Amendment 11 Recital 33 (33)  Support should continue to be granted to farmers to help address specific disadvantages in the areas concerned resulting from the implementation of Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds and Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora in order to contribute to the effective management of NATURA 2000 sites. (33)  While support should continue to be granted to farmers and forest holders to help address specific disadvantages in the areas concerned resulting from the implementation of Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds and Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora in order to contribute to the effective management of NATURA 2000 sites, the European Agricultural Fund for Rural Development should be only a secondary source of such funding. In addition to other European funds, the primary sources of funding are, above all, the national and regional budgets. Amendment 12 Recital 34 (34)  Agri-environmental payments should continue to play a prominent role in supporting the sustainable development of rural areas and in responding to society's increasing demand for environmental services. They should further encourage farmers to serve society as a whole by introducing or continuing to apply agricultural production methods compatible with the protection and improvement of the environment, the landscape and its features, natural resources, the soil and genetic diversity. In accordance with the polluter-pays principle these payments should cover only those commitments going beyond the relevant mandatory standards. (34)  Agri-environmental payments should continue to play a prominent role in supporting the sustainable development of rural areas and in responding to society's increasing demand for environmental services. They should further encourage farmers to serve society as a whole by introducing or continuing to apply agricultural production methods compatible with the protection and improvement of the environment, the landscape and its features, natural resources, the soil and genetic diversity. In accordance with the polluter-pays principle these payments should cover only those commitments going beyond the relevant mandatory standards, with provision for effective support elements in addition to compensation for the effects on costs and profits. Amendment 13 Recital 45 (45)  There is a need to accompany changes in rural areas by helping them to diversify farming activities towards non-agricultural activities and develop non-agricultural sectors, promote employment, improve basic services and carry out investments making rural areas more attractive in order to reverse trends towards economic and social decline and depopulation of the countryside. An effort to enhance the human potential in this respect is also necessary. (45)  There is a need to accompany changes in rural areas by helping them to diversify farming activities towards non-agricultural activities and develop non-agricultural sectors, promote employment, improve basic services and carry out investments making rural areas more attractive in order to reverse trends towards economic and social decline and depopulation of the countryside. An effort to enhance the human potential in this respect is also necessary. Rural development measures, particularly those under priority axis III, should be implemented in addition to existing policies and thereby create specific synergies in rural areas. Amendment 14 Recital 50 (50)  Given the importance of the LEADER approach, a substantial share of the contribution of the Fund should be earmarked for this priority. (50)  Given the importance of the LEADER approach, an adequate share of the contribution of the Fund should be earmarked for this priority. Amendment 15 Recital 56 (56)  Over and above these amounts the Member States must take account of the amounts generated by modulation as provided for in Article 12(2) of Regulation (EC) No …/… [on the financing of the CAP]. (56)  Over and above these amounts the Member States must take account of the amounts generated by modulation as provided for in Article 12(2) of Regulation (EC) No …/… [on the financing of the CAP], which amounts, given that they originate in the first pillar, should be used to provide direct support for the common agricultural policy in farming and forestry, in particular by increasing aid to the farmers that receive least. Amendment 16 Recital 58 (58)  The rate of the Fund's contribution to rural development programming should be set in relation to public expenditure in the Member States, taking account of the importance of the priority for land management and environment, the situation in the regions covered by the Convergence Objective, the priority given to the LEADER approach, the outermost regions referred to in Article 299 of the Treaty and the islands covered by Council Regulation (EEC) No 2019/93 of 19 July 1993 introducing specific measures for the smaller Aegean islands concerning certain agricultural products7. (58)  The rate of the Fund's contribution to rural development programming should be set in relation to public expenditure in the Member States, taking account of the importance of the priority for land management and environment, the situation in the regions covered by the Convergence Objective, the importance given to the LEADER approach, the outermost regions referred to in Article 299 of the Treaty and the islands covered by Council Regulation (EEC) No 2019/93 of 19 July 1993 introducing specific measures for the smaller Aegean islands concerning certain agricultural products7. Amendment 17 Recital 66 (66)  The Community reserve for the LEADER approach should be allocated taking the performance of the programmes in this respect into account. The criteria for its allocation should be laid down accordingly. deleted Amendment 18 Article 3 The Fund contributes to the promotion of sustainable rural development throughout the Community in a complementary manner to the market and income support policies of the Common Agricultural Policy, to Cohesion policy and to the Common Fisheries Policy. With specific reference to Article 33(1) of the Treaty, and placing particular emphasis on the objectives of the common agricultural policy, the Fund contributes to the promotion of sustainable rural territory development throughout the Community and to the prevention of depopulation of rural areas in a complementary manner to the market and income support policies of the Common Agricultural Policy, to Cohesion Policy, to policies on social inclusion, non-discrimination and promotion of equal opportunities and to the Common Fisheries Policy. Amendment 19 Article 4, paragraph 1, point (a) (a) improving the competitiveness of agriculture and forestry by means of support for restructuring; (a) improving the competitiveness of agriculture and forestry by means of support for development and restructuring, innovation, training and professional qualifications; Amendment 20 Article 4, paragraph 1, point (b) (b) improving the environment and the countryside by means of support for land management; (b) improving the environment, the countryside and farming of the land by means of support for sustainable land management; Amendment 21 Article 4, paragraph 1, point (c) (c) improving the quality of life in rural areas and encouraging diversification of economic activity. (c) improving the quality of life in and the cultural development of rural areas and encouraging the development and the diversification of economic activity. Amendment 22 Article 4, paragraph 1, point (c a) (new) (ca) improving the supply to the local and regional population of farm products produced in their area; Amendment 23 Article 4, paragraph 1, point (c b) (new) (cb) increasing the contribution to sustainable energy supply and climate protection. Amendment 24 Article 5, paragraph 1 1.  The Fund shall complement national, regional and local actions contributing to the priorities of the Community. 1.  The Fund shall complement national, regional and local actions without prejudice to the implementation of corresponding national development programmes contributing to the priorities of the Community. Amendment 25 Article 5, paragraph 2 2.  The Commission and the Member States shall ensure that the assistance from the Fund and the Member States is consistent with the activities, policies and priorities of the Community. The assistance of the Fund must be consistent with the objectives of Economic and Social Cohesion and those of the European Fisheries Fund in particular. 2.  The Commission and the Member States shall ensure that the assistance from the Fund and the Member States is consistent with the activities, policies and priorities of the Community. The assistance of the Fund must be consistent with the objectives of Economic, Social and Territorial Cohesion and those of the European Fisheries Fund and environment policy in particular. Amendment 26 Article 5, paragraph 4 4.  There shall also be consistency with the measures financed by the European Agricultural Guarantee Fund. 4.  There shall also be consistency with the measures financed by the European Agricultural Guarantee Fund , which must be clearly distinguished from the financing measures put in place by other structural funds. Amendment 27 Article 6, paragraph 1, point (b) (b) the economic and social partners; (b) the bodies representing the economic and social partners and rural organisations involved in this sector; Amendment 28 Article 6, paragraph 3 3.  The partnership shall be involved in the preparation and monitoring of the national strategy plan and in the preparation, implementation, monitoring and evaluation of the rural development programmes. The Member States shall involve all appropriate partners at the various programming stages, due regard being had to the time limit set for each step. 3.  The partnership shall be involved in the preparation and monitoring of the national strategy plan and in the preparation, implementation, monitoring and evaluation of the rural development programmes. The Member States shall involve all appropriate partners at the various programming stages. In programme planning, therefore, care must be taken to allow enough time to consult the various partners and ensure genuine participation. Amendment 29 Article 7 The Member States shall be responsible for implementing the rural development programmes at the appropriate territorial level, according to their own institutional arrangements. This responsibility shall be carried out in accordance with this Regulation. The Member States shall be responsible for implementing the rural development programmes at the appropriate territorial level, according to their own institutional arrangements and the rules on subsidiarity as set out in the Treaty establishing a Constitution for Europe. This responsibility shall be carried out in accordance with this Regulation. Amendment 30 Article 8, paragraph 1 The Member States and Commission shall promote equality between men and women at all the various stages of programme implementation. The Member States and Commission shall promote equality between men and women and non-discrimination on the grounds listed in Article 13 of the Treaty at all the various stages of programme implementation. Amendment 31 Article 8, paragraph 2 This includes the stages of conception, implementation, monitoring and evaluation. This includes the stages of conception, implementation, monitoring and evaluation, with gender mainstreaming being a fundamental yardstick for the assessment of programme eligibility. Amendment 32 Article 8, paragraph 2 a (new) The Member States shall devise measures to facilitate access by women to joint ownership of farms and to the aid provided for in this Regulation. Amendment 33 Article 8 a (new) Article 8a Specific aid to small and micro-enterprises Member States and the Commission shall support small and micro-enterprises on account of their special importance to employment and the environment in rural areas. In view of the special socioeconomic importance of the enterprises, each Member State shall adopt criteria for financial support which afford these enterprises privileged access to rural development funding. Amendment 34 Article 9, paragraph 1, subparagraph 1 1.  The Council adopts at Community level strategic guidelines for rural development for the programming period from 1 January 2007 to 31 December 2013 in the light of the policy priorities set at Community level. 1.  The Council adopts at Community level strategic guidelines for rural development and particularly for the attainment of the objectives referred to in Article 4 for the programming period from 1 January 2007 to 31 December 2013 in the light of the policy priorities set at Community level. Amendment 35 Article 9, paragraph 1, subparagraph 2 These guidelines shall set at Community level the strategic priorities for rural development for the programming period with a view to implementing each of the priority headings laid down in this Regulation. These guidelines shall set at Community level strategic priorities for rural development for the programming period. Without prejudice to Member States" exclusive powers pursuant to the principle of subsidiarity, Member States shall take account of those guidelines in their national strategy plans as referred to in Article 11. Amendment 36 Article 11, paragraph 3, point (e) (e) the means to ensure coordination with the other CAP instruments and with Cohesion policy; (e) the means to ensure coordination between the CAP, including the two pillars 1a and 1b, on the one hand and cohesion, territorial convergence, regional competitivity and employment policies, on the other; Amendment 37 Article 11, paragraph 3, point (g a) (new) (ga) an outline of how the plan contributes to social inclusion and non-discrimination. Amendment 38 Article 11 a, paragraph 2 2.  Each Member State shall send the Commission its national strategic plan before submitting its rural development programmes. 2.  Each Member State shall send the Commission its national strategic plan before or when submitting its rural development programmes. If a Member State has only one rural development programme, the national strategy may be included as a separate chapter. Amendment 39 Article 12, title and paragraph 1 Annual summary report by Member State 1.  For the first time in 2008 and no later than 1 October each year, each Member State shall submit to the Commission a summary report setting out the progress made in implementing its strategy and objectives and their contribution to the achievement of the Community strategic guidelines for rural development. Summary report by Member State 1.  No later than 1 October 2010, each Member State shall submit to the Commission a summary report setting out the progress made in implementing its strategy and objectives and their contribution to the achievement of the Community strategic guidelines for rural development. After the conclusion of the programming period, each Member State shall submit a summary report on the programming period 2007-2013. Amendment 40 Article 13, title and paragraph 1 Annual Commission report 1.  For the first time in 2009 and at the start of each year, the Commission shall present an annual report summarising the main developments, trends and challenges relating to the implementation of the national strategy plans and the Community strategic guidelines. Commission report 1.  After the submission of the reports of the Member States, the Commission shall present a report in 2011 summarising the main developments, trends and challenges relating to the implementation of the national strategy plans and the Community strategic guidelines. This report shall be based on the Commission's analysis and appraisal of the Member States" annual summary reports referred to in Article 12 and any other available information. It shall indicate the measures taken or to be taken by the Member States and Commission in order to provide an appropriate follow-up to the report's conclusions. This report shall be based on the Commission's analysis and appraisal of the Member States" summary reports referred to in Article 12 and any other available information. It shall indicate the measures taken or to be taken by the Member States and Commission in order to provide an appropriate follow-up to the report's conclusions. Amendment 41 Article 13, paragraph 2 2.  The annual Commission report shall be sent to the Council, Parliament, the European Economic and Social Committee and the Committee of the Regions. 2.  The Commission report shall be sent to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Amendment 42 Article 14, paragraph 2 2.  A Member State may submit either a single programme for its entire territory or a programme for each region. 2.  A Member State may submit either a national programme or regional programmes or a combination of the two types of programme. Amendment 43 Article 16 The Community financial contribution to each of the three objectives referred to in Article 4 shall cover at least 15% of the Fund's total contribution to the programme for priority axis I and III referred to in Sections I and III respectively under Chapter I of Title IV and 25% of the Fund's total contribution to the programme for the priority axis II referred to in Section II of Chapter I. The Community financial contribution to each of the five objectives referred to in Article 4 shall cover at least 10 % of the Fund's total contribution to the programme for priority axis I referred to in Section I under Chapter I of Title IV, 20 % of the Fund's total contribution to the programme for the priority axis II referred to in Section II of Chapter I and 8 % of the Fund's total contribution to the programme for priority axis III referred to in Section III of Chapter I. Amendment 44 Article 18, paragraph 1 1.  The rural development programmes shall be re-examined and, if appropriate, adapted for the remainder of the period at the Member State's or Commission's initiative, following Monitoring Committee approval. The purpose of these revisions shall be to take account of the outcome of evaluations and the Commission's annual reports, particularly with a view to strengthening or adapting the way in which the Community priorities are taken into account. The rural development programmes shall be revised, when applicable, following allocation of the LEADER reserve referred to in Article 92. 1.  The rural development programmes shall be re-examined and, if appropriate, adapted for the remainder of the period at the Member State's or Commission's initiative, following Monitoring Committee approval. The purpose of these revisions shall be to take account of the outcome of evaluations and the Commission's annual reports, particularly with a view to strengthening or adapting the way in which the Community priorities are taken into account. Amendment 45 Article 19, point (a) (v a) (new) (va) technical support for farmers and forest holders; Amendment 46 Article 19, point (b) (i) (i) farm modernisation, (i) farm modernisation, extending to the smallest holdings, Amendment 47 Article 19, point (b) (v a) (new) (va) experimental development; Amendment 48 Article 19, point (c) (i) (i) helping farmers to adapt to demanding standards based on Community legislation, (i) helping farmers to adapt to demanding standards based on Community legislation with a view to optimum food safety, Amendment 130 Article 19, point (c) (ii) (ii) supporting farmers who participate in food quality schemes, (ii) supporting farmers and producer groups who participate in food quality schemes, e.g. in the framework of Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs1, ___________ 1 OJ L 208, 24.7.1992, p. 1. Amendment 50 Article 19, point (c) (iii a) (new) (iiia) supporting initiatives such as local farmers" markets and quality food local procurement schemes; Amendment 51 Article 19, point (d) (i) (i) supporting semi-subsistence farms undergoing restructuring, (i) supporting semi-subsistence farms, undergoing restructuring, operating in rural, peri-urban and urban areas, Amendment 52 Article 21, paragraph 1, introductory part 1.  Support provided for in Article 19 (a)(ii), shall be granted to persons who: 1.  Support provided for in Article 19(a)(ii) shall be mandatory for the Member States and the regions and shall be granted to persons who: Amendment 53 Article 21, paragraph 1, point (c) (c) submit a business plan for the development of their farming activities. (c) submit an appropriate business plan for the development of their farming activities. The progress made with the business plan shall be verified over the three years following establishment. Amendment 54 Article 21, paragraph 2 2.  The support shall be granted in the form of a single premium up to the maximum amount laid down in Annex I. 2.  The support shall be granted in the form of a single premium and/or an interest subsidy on loans up to a maximum capitalised value of EUR 55 000. Amendment 55 Article 21, paragraph 2 a (new) 2a. With a view to supporting implementation of the business plan referred to in paragraph 1(c), it is necessary to ensure an integrated package of measures contributing to the establishment and development of the new enterprise. This package shall include one or more intervention measures pursuant to Title IV, permitting the financing of further operations relating to one or more axes. Amendment 56 Article 21, paragraph 2 b (new) 2b. Measures to help young farmers set up in business shall feature in all national and regional rural-development programmes. Amendment 57 Article 21, paragraph 2 c (new) 2c. Young farmers supported under this Article  may be given a period not exceeding five years, after they have set up, in which to comply with the conditions laid down in Community standards or by minimum requirements in connection with farm modernisation aid, payments intended to compensate for the natural handicaps of mountain areas and payments for other areas with handicaps, as well as agrienvironment and animal welfare payments. Amendment 58 Article 23, paragraph 1, point (b a) (new) (ba) to help potential future farmers and forest owners to meet costs arising from the preparation of the business plan for the development of their farming activities. Amendment 59 Article 25, paragraph 1, point (a) (a) improve the overall performance of the farm, and (a) improve the overall economic and environmental performance of the farm, and Amendment 60 Article 25, paragraph 1, point (a a) (new) (aa) create jobs, and Amendment 61 Article 26, title Improvement of the economic value of forests Improvement of the economic, ecological and social value of forests Amendment 62 Article 26, paragraph 1 1.  Investment support provided for in Article 19 (b)(ii) shall be granted for forests owned by private owners or their associations or by municipalities or their associations. This limitation does not apply to the subtropical forests and to the wooded areas of the territories of Açores, Madeira and French Oversea Departments. 1.  Investment support provided for in Article 19(b)(ii) shall be granted for forests owned by private owners or their associations or by municipalities or their associations. This limitation does not apply to the tropical or subtropical forests and to the wooded areas of the territories of Azores, Madeira and French Overseas Departments and of the European Union's outermost regions. Investment support shall also be granted for the establishment and structural reinforcement of forest owner organisations so as to support members in the sustainable and more efficient management of their forests. Amendment 63 Article 26, paragraph 2 2.  Investments shall be based on forest management plans. 2.  Investments shall be based on forest management plans for forest holdings of a size greater than that to be set by the Member States in their programmes. Amendment 64 Article 27, paragraph 1, point (a) (a) improve the overall performance of the enterprise; (a) improve the overall economic and environmental performance of the enterprise; Amendment 65 Article 27, paragraph 2, subparagraph 1 2.  Support under paragraph 1 shall be limited to micro and small enterprises within the meaning of Commission recommendation 2003/361/EC. In the case of forestry production, support shall be limited to micro-enterprises. 2.  Support under paragraph 1 shall be granted to micro, small and medium-sized enterprises within the meaning of Commission recommendation 2003/361/EC, and to any collective producer entity. In the case of forestry production, support shall be limited to micro- and small enterprises and associations of micro- and small enterprises. Amendment 66 Article 28 Support provided for in Article 19 (b)(iv), may cover notably operations related to access to farm and forest land, energy supply and water management. Support provided for in Article 19(b)(iv) may cover notably operations related to land reparcelling, taking into account the importance of landscape protection, access to farm and forest land, energy supply and water management, and funding and equipment for public centres providing technical support for the agri-food sector. Amendment 131 Article 30, paragraph 1, point (b) (b) be for Community food quality schemes or for those recognised by the Member States which comply with precise criteria to be defined in accordance with the procedure referred to in Article 95(2); schemes whose sole purpose is to provide a higher level of control of respect of obligatory standards under Community or national law shall not be eligible for support, (b) be for Community food quality schemes, e.g. in the framework of Regulation (EEC) No 2081/92, or for those recognised by the Member States which comply with precise criteria to be defined in accordance with the procedure referred to in Article 95(2); schemes whose sole purpose is to provide a higher level of control of respect of obligatory standards under Community or national law shall not be eligible for support, Amendment 67 Article 31, paragraph 1 a (new) The support may include information and promotion activities for: (a) co-operation, information transfer or networking between farmers, processors or other market actors in the agro-food chain; (b) transfer of know-how and best practices between farmers, processors or other market actors in the agro-food chain. Amendment 68 Title IV, Chapter I, Section 2, title PRIORITY AXIS 2: LAND MANAGEMENT PRIORITY AXIS 2: IMPROVING THE ENVIRONMENT AND THE COUNTRYSIDE Amendment 69 Article 34, point (a) (iv) (iv) agri-environment and animal welfare payments, (iv) agri-environment and animal welfare payments and measures to conserve and exploit agricultural genetic diversity "on farm", Amendment 70 Article 34, point (a) (iv a) (new) (iva) promotion of organic farming, Amendment 71 Article 34, point (b) (v) (v) forest-environment payments, (v) forest-environment payments and measures to exploit and conserve genetic diversity used for forestry purposes, Amendment 72 Article 35, paragraph 4 4.  Payments shall be degressive above a threshold level of area per holding to be defined in the programme. 4.  Taking into account the relevant objectives, payments shall be degressive above a threshold level of area per holding to be defined in the programme. Amendment 73 Article 36, paragraph 1 Support provided for in Article 34 (a)(iii), shall be granted annually and per hectare of Utilised Agricultural Area to farmers in order to compensate for costs incurred and income foregone resulting from disadvantages in the areas concerned related to the implementation of Directives 79/409/EEC and 92/43/EEC. Support provided for in Article 34 (a)(iii), shall be granted annually and per hectare of Utilised Agricultural Area to farmers in order to compensate for costs incurred and income foregone resulting from disadvantages in the areas concerned related to the implementation of Directives 79/409/EEC, 92/43/EEC and 2000/60/EC. Amendment 74 Article 36, paragraph 2 Support shall be limited to the maxima laid down in Annex I. Support shall be limited to the maxima laid down in Annex I. The amount of the support should be set, for the long term, at EUR 200 per ha per annum, and an extension of the period of validity should be possible. Amendment 75 Article 37, paragraph 3, subparagraph 1 3.  Agri-environment and welfare payments cover only those commitments going beyond the relevant mandatory standards established pursuant to Articles.4 and 5 and Annexes III and IV of Council Regulation (EC) No 1782/2003 and other relevant mandatory requirements established by national legislation and identified in the programme. Additionally, farmers and other land managers undertaking agri-environment commitments shall respect minimum requirements for fertiliser and plant protection product use to be identified in the programme. 3.  Agri-environment and welfare payments cover only those commitments going beyond the relevant mandatory standards established pursuant to Articles.4 and 5 and Annexes III and IV of Council Regulation (EC) No 1782/2003 and other relevant mandatory requirements established by national legislation and identified in the programme. Amendment 76 Article 37, paragraph 3, subparagraph 2 These commitments shall be undertaken for five years. Where necessary and justified, a longer period shall be determined according to the procedure referred to in Article 95(2) for particular types of commitments. These commitments shall be undertaken for five years, as a rule. Where necessary and justified, a longer period of up to seven years shall be determined for particular types of commitments. In special, justified cases, a period of less than five years shall also be possible. Amendment 77 Article 37, paragraph 4, subparagraph 1 4.  The payments shall be granted annually and shall cover additional costs and income foregone resulting from the commitment given; where necessary, they may cover also transaction cost. 4.  The payments shall be granted annually. They shall incorporate an incentive component of 20 % to cover additional costs and income foregone resulting from the commitment given. Amendment 78 Article 37, paragraph 4, subparagraph 2 Where appropriate, the beneficiaries are selected on the basis of calls for tender, applying criteria of economic, environmental and animal welfare efficiency. Where appropriate, the beneficiaries are selected on the basis of calls for tender, applying criteria of economic, environmental and animal health and welfare efficiency. Amendment 79 Article 38, point (b) (b) on-farm investments which enhance the public amenity value of the NATURA 2000 area concerned. (b) investments which enhance the public amenity value of the NATURA 2000 area concerned and of other areas which are important for purposes of nature conservation. Amendment 80 Article 41, paragraph 3 3.  Christmas trees and fast-growing species for short-term cultivation shall be excluded from support. 3.  Christmas trees, invasive or alien species, and fast-growing species for short-term cultivation shall be excluded from support. Amendment 81 Article 43, paragraph 1 Support provided for in Article 31 (b)(iv), shall be granted annually and per hectare of forest to private forest owners or associations thereof in order to compensate for costs incurred resulting from the restrictions on the use of forests and other wooded land related to the implementation of Directives 79/409/EEC and 92/43/EEC in the area concerned. Support provided for in Article 31(b)(iv), shall be granted annually and as a flat-rate amount per hectare of forest to private forest owners or associations thereof in connection with specific projects in order to compensate for costs incurred and loss of income resulting from the restrictions on the use of forests and other wooded land related to the implementation of Directives 79/409/EEC and 92/43/EEC in the area concerned. Amendment 82 Article 44, paragraph 2, subparagraph 1 2.  The payments shall cover additional costs resulting from the commitment given. They shall be calculated on the basis of real costs. 2.  The payments shall be calculated on the basis of the conventional assessment procedure. Amendment 83 Article 46, point (b) (b) which enhance the public amenity value of the area concerned. (b) which enhance or preserve the public amenity value of the area concerned. Amendment 84 Article 47, paragraph 1 1.  Member States shall designate the areas eligible for payments provided for in Article 34 (a)(i), (ii) and (iii) as well as (b)(i), (iii), (iv) and (vi) of that Article, taking into account the provisions of paragraphs 2, 3, 4 and 5 of this Article. 1.  Member States shall, in accordance with their institutional structures, designate the areas eligible for payments provided for in Article 34(a)(i), (ii) and (iii) as well as (b)(i), (iii), (iv) and (vi) of that Article, taking into account the provisions of paragraphs 2, 3, 4 and 5 of this Article. For first afforestation areas: where specific legislation provides for an approval procedure, areas shall not be designated. Amendment 85 Article 47, paragraph 2, subparagraph 1, point (a) (a) to the existence, because of altitude, of very difficult climatic conditions, the effect of which is substantially to shorten the growing season; (a) to the existence, because of altitude or northern location, of very difficult climatic conditions, the effect of which is substantially to shorten the growing season; Amendment 86 Article 47, paragraph 2, subparagraph 1, point (b a) (new) (ba) to the presence of a small or dwindling population largely dependent on the agricultural sector and unlikely to remain should it contract any more rapidly, undermining the social, economic and environmental sustainability of the regions affected. Amendment 87 Article 47, paragraph 2, subparagraph 1, point (b b) (new) (bb) to their inclusion among mountain and less-favoured areas designated for "phasing out" of assistance. Amendment 88 Article 47, paragraph 2, subparagraph 2 Areas north of the 62nd parallel and certain adjacent areas shall be regarded as mountain areas.. Areas north of the 60th parallel and certain adjacent areas shall be regarded as mountain areas. Amendment 89 Article 47, paragraph 3, subparagraph 1, point (b a) (new) (ba) characterised by the presence of a small or dwindling population largely dependent on agriculture and unlikely to remain should it contract any more rapidly, undermining the social, economic and environmental sustainability of the regions affected, Amendment 90 Article 47, paragraph 3, subparagraph 1, point (b b) (new) (bb) included among the mountain and less-favoured areas designated for "phasing out" of assistance, Amendment 91 Article 47, paragraph 3, subparagraph 3 As concerns areas affected by specific handicaps referred to in point (b) of the first subparagraph, their total extent shall not exceed 10% of the area of the Member State concerned. deleted Amendment 92 Article 47, paragraph 3, subparagraph 4 The Member States shall delimitate those areas in the programmes according to specific provisions to be defined in accordance with the procedure referred to in Article 95(2). In the programmes, the Member States shall confirm or modify the existing delimitation of those areas according to specific provisions to be defined in accordance with the procedure referred to in Article 95(2). Amendment 93 Article 47, paragraph 5, subparagraph 1 5.  Areas apt for afforestation for environmental reasons such as protection against erosion or extension of forest resources contributing to climate change mitigation, shall be eligible for payments provided for in Article 34 (b) (i) and (iii). 5.  Areas apt for afforestation for environmental reasons and to protect against erosion shall be eligible for payments provided for in Article 34 (b) (i) and (iii). Extension of forest resources contributing to climate change mitigation shall not be eligible for payments. Amendment 94 Article 49, point (a) (i) (i) diversification into non-agricultural activities. (i) diversification into non-agricultural activities, including on-farm activities, Amendment 95 Article 49, point (a) (i a) (new) (ia) diversification of the income of those working in agriculture by promoting local processing, direct marketing and the establishment of products with designations of geographical origin and special quality marks, Amendment 96 Article 49, point (a) (ii) (ii) support for the creation and development of micro-enterprises with a view to promoting entrepreneurship and developing the economic fabric, (ii) support for the creation, business restart, takeover and development of micro-enterprises and small enterprises - including family enterprises - with a view to promoting entrepreneurship and developing the economic fabric, Amendment 97 Article 49, point (a) (iii) iii) encouragement of tourism activities, iii) encouragement of sustainable tourism activities, Amendment 98 Article 49, point (a) (iv) (iv) the protection, upgrading and management of the natural heritage, so contributing to sustainable economic development. (iv) the protection, upgrading and management of the rural heritage (natural, historical or cultural). Amendment 99 Article 49, point (a) (iv a) (new) (iva) support for and promotion of women's activities in rural areas. Amendment 100 Article 49, point (b) (ii) (ii) village renovation and development; conservation and upgrading of the rural heritage. (ii) village renovation and development; conservation and upgrading of the rural heritage, landscape conservation and nature conservation; Amendment 101 Article 49, point (c) (c)  A vocational training measure for economic actors operating in the fields covered by priority axis 3. deleted Amendment 102 Article 50 The aid beneficiary referred to in Article 49(a) (i) may be either the farmer, his or her spouse, or one of their children. The aid beneficiary referred to in Article 49(a) (i) may be either the farmer, his or her spouse, or one of their children, as well as other persons whose income is directly dependent on agriculture, i.e. those employed the whole year round either in agriculture or in sectors upstream or downstream of it. Amendment 103 Article 50 a (new) Article 50a Aid for marketing measures The aid beneficiary referred to in Article 49(a)(i)a may be either the farmer, his or her spouse, or one of their children. Amendment 104 Article 51, title Support for business creation and development Support for business creation, takeover and development Amendment 105 Article 52, point (c a) (new) (ca) the creation and modernisation of small-scale rural-tourism infrastructure. Amendment 106 Article 53 The support referred to in Article 49(a)(iv) covers environmental awareness actions, tourism improvements and the drawing-up of protection and management plans relating to NATURA 2000 sites and other places of high natural value. The support referred to in Article 49(a)(iv) covers environmental awareness actions and tourism improvements. Amendment 107 Article 56 Vocational trainingSupport under Article 49(c), shall not include courses of instruction or training which form part of normal education programmes or systems at secondary or higher levels. deleted Amendment 108 Article 60, point (a) (a) area-based programmes intended for well-identified sub-regional rural territories; (a) area-based programmes intended for regional agricultural territories including less-favoured and mountain areas and regions designated for 'phasing-out' of assistance; Amendment 109 Article 67, paragraph 2, subparagraph 1 2.  At the initiative of the Member States, for each rural development programme, the Fund may finance preparation, management, monitoring, evaluation, information and control activities of programme assistance. 2.  At the initiative of the Member States, for each rural development programme and for the National Strategic Plan, the Fund may finance preparation, management, monitoring, evaluation, information and control activities of programme assistance. Amendment 110 Article 67, paragraph 2, subparagraph 2 Up to 4% of the total amount for each programme may be devoted to these measures. Up to 2 % of the total amount for each programme may be devoted to these measures. Amendment 111 Article 67, paragraph 2, subparagraph 3 Within the limit set in the above subparagraph, each programme shall reserve an amount for establishing and operating the national rural network referred to in Article 69. Within the limit set in the above subparagraph, each programme shall reserve an amount for establishing and operating the national rural network referred to in Article 69 and for technical assistance in respect of the National Strategic Plan. Amendment 112 Article 68, paragraph 1 A European Network for Rural Development for the networking of national networks, organisations and administrations active in the field of rural development at Community level shall be put in place in accordance with Article 67(1). A European Network for Rural Development for the networking of national networks, representative economic and social organisations and administrations active in the field of rural development at Community level shall be put in place without delay in accordance with Article 67(1). Amendment 113 Article 69, paragraph 1 1.  Each Member State shall establish a national rural network, which gathers together all the organisations and administrations involved in rural development. 1.  Each Member State shall establish without delay a national rural network, which gathers together all the representative economic and social organisations and administrations involved in rural development. Amendment 114 Article 70, paragraph 1 1.  The resources available for commitment from the Fund for the period 2007 to 2013 shall be EUR 88.75 billion at 2004 prices. The annual breakdown is shown in Annex II. Of these resources, at least EUR 31.3 billion at 2004 prices shall be concentrated in regions eligible for the Convergence Objective. 1.  The resources available for commitment from the Fund for the period 2007 to 2013 shall be EUR 95.75 billion at 2004 prices. This amount shall be conditional upon its compatibility with the financial perspective for the period commencing 2007 and shall be adjusted where appropriate. The annual breakdown is shown in Annex II. Of these resources, at least EUR 31.3 billion at 2004 prices shall be concentrated in regions eligible for the Convergence Objective. Amendment 115 Article 70, paragraph 2 2. 3% of the resources referred to in paragraph 1, for an amount of EUR 2.66 billion at 2004 prices, shall be allocated to the reserve provided for in Article 92. deleted Amendment 116 Article 70, paragraph 4 a (new) 4a. The amounts required to pay compensation for nature conservation measures under NATURA 2000 shall be added to the rural development budget. Amendment 117 Article 70, paragraph 5, subparagraph 1, introductory part 5.  The Commission shall make an initial annual indicative breakdown by Member State of the amounts indicated in paragraph 1, after deduction of the amounts referred to in paragraphs 2 and 3, based on objective criteria and taking into account: 5.  The Commission shall make an initial annual indicative breakdown by Member State of the amounts indicated in paragraph 1, after deduction of the amounts referred to in paragraph 3, based on objective criteria and taking into account: Amendment 118 Article 70, paragraph 5, subparagraph 2 The Commission shall review in 2011 the annual allocations for the years 2012 and 2013 in order to distribute the amount referred to in paragraph 2. deleted Amendment 119 Article 70, paragraph 6 6.  In addition to the amounts indicated in paragraph 5, the Member States shall take into account for the purpose of programming the amounts resulting from modulation as provided for in Article 12(2) of Regulation (EC) No…/…[financing of the CAP]. 6.  In addition to the amounts indicated in paragraph 5, the Member States shall take into account for the purpose of programming the amounts resulting from modulation as provided for in Article 12(2) of Regulation (EC) No…/…[financing of the CAP]. These amounts shall be used for projects under priority axes I and II, from which the payments for NATURA 2000 should be excluded. Amendment 120 Article 71, paragraph 1 1.  The Decision adopting a rural development programme shall fix the maximum contribution from the Fund for each priority heading. The decision shall clearly identify, where necessary, the appropriations allocated to the regions eligible for the Convergence Objective. 1.  The Decision adopting a rural development programme shall fix the maximum contribution from the Fund for each priority heading. The decision shall clearly identify, where necessary, the appropriations allocated to the regions eligible for the Convergence Objective, including the statistical and natural effect regions. Amendment 121 Article 71, paragraph 4 4.  Notwithstanding the ceilings set out in paragraph 3, the Fund contribution may be increased by five percentage points for the programmes of the outermost regions and the smaller islands of Aegean Sea. 4.  Notwithstanding the ceilings set out in paragraph 3, the Fund contribution shall be increased to 85 % of subsidisable public expenditure for the programmes of the outermost regions and the smaller islands of the Aegean Sea. Amendment 122 Article 71, paragraph 6, subparagraph 2 An operation may qualify for a Fund contribution only under one rural development programme at a time. It may be financed under only one priority axis of the rural development programme. An operation may qualify for a Fund contribution only under one rural development programme at a time. Amendment 123 Article 72, paragraph 3, subparagraph 2, point (c) (c) the purchase of land costing more than 10% of all the eligible expenditure on the operation concerned. (c) the purchase of land costing more than 10 % of all the eligible expenditure on the operation unless a higher percentage is set in the programme approved by the Commission. Amendment 124 Article 76, introductory part and point (a) For each rural development programme the Member State shall designate : For each rural development programme the Member State shall, in accordance with its institutional structure, designate: (a) the managing authority, being a public or private national, regional or local body designated by the Member State, or the Member State itself when it carries out that task, to manage a programme; (a) the managing authority, being a public or private national, regional or local body designated by the Member State in accordance with its institutional structure, or the Member State itself when it carries out that task, to manage a programme; Amendment 125 Article 77, paragraph 1, point (a) (a) ensuring that operations are selected for funding in accordance with the criteria applicable to the rural development programme and that they comply, for the whole period of their execution, with applicable Community and national rules and Community policies; (a) ensuring that operations are selected for funding in accordance with the criteria applicable to the rural development programme and that they comply, for the whole period of their execution, with applicable Community and national rules and Community policies. These Community and national rules should be applicable without delay, should not be over-stringent and should allow a degree of flexibility which does not contravene the general guidelines for this Community policy; Amendment 126 Article 92 Article 92 Community reserve for the LEADER priority axis 1.  The amount allocated to the reserve referred to in Article 70(2) shall be used to support implementation of the LEADER approach in programmes. deleted 2.  Implementation of the LEADER approach shall be evaluated on the basis of objective criteria including: (a) the priority given to the LEADER approach, (b) the territorial coverage of the LEADER approach, (c) the stage reached in implementing the LEADER priority axis, (d) the leverage effect on private capital, (e)the results of mid-term evaluations. Amendment 127 Article 95, paragraph 1 1.  The Commission shall be assisted by a Rural Development Committee (hereinafter: the "Committee"). 1.  The Commission shall be assisted by a Rural Development and Forestry Committee (hereinafter: the "Committee"). Amendment 128 Article 98, paragraph 2 2.  Council Directives and Decisions laying down and amending the lists of less-favoured areas referred to in Article 21(2) of Regulation (EC) No 950/97 are repealed. deleted Amendment 129 Annex I, Article 35, paragraph 3, rows 2 and 3 Maximum natural handicap payment 250 Per hectare of UAA Maximum handicap payment for mountain areas and for areas with other handicaps 250 Per hectare of UAA Maximum payment for areas with other handicaps 150 Per hectare of UAA

(1) Not yet published in OJ.