(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2007)0122),

–   having regard to Article 37(2) of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0116/2007),

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

–   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 Budgetary Control (A6-0321/2007),

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 the Commission.

Text proposed by the Commission   Amendments by Parliament Amendment 1 RECITAL 10 (10)  Since there is no need for Member States to inform the Commission on the way they have decided or plan to reuse the cancelled funds and to amend the financing plan for the rural development programme concerned, the second subparagraph of Article 33(4) of Regulation (EC) No 1290/2005 should be deleted. deleted Amendment 2 RECITAL 12 (12)  It is necessary to clarify the legal basis for the adoption of detailed rules for the application of Regulation (EC) No 1290/2005. In particular, the Commission should be able to adopt detailed rules of application in respect of the publication of information on beneficiaries of the common agricultural policy, in respect of intervention measures where no fixed sum per item has been laid down in a common market organisation and in respect of appropriations which have been carried over to finance the expenditure referred to in Article 3(1)(c) of that Regulation. (12)  It is necessary to clarify the legal basis for the adoption of detailed rules for the application of Regulation (EC) No 1290/2005 and to ensure, after the Commission's legal services have given their opinion, that during the implementation of sanctions no discrimination will be created among those eligible for aid from the common agricultural policy. In particular, the Commission should be able to adopt detailed rules of application in respect of the publication of information on beneficiaries of the common agricultural policy, in respect of intervention measures where no fixed sum per item has been laid down in a common market organisation and in respect of appropriations which have been carried over to finance the expenditure referred to in Article 3(1)(c) of that Regulation. Amendment 3 RECITAL 14 (14)  Making this information accessible to the public enhances transparency regarding the use Community funds in the common agricultural policy and improves the sound financial management of these funds, in particular by reinforcing public control of the money used. Given the overriding weight of the objectives pursued it is justified with regard to the principle of proportionality and the requirement of the protection of personal data to provide for the general publication of the relevant information as it does not go beyond what is necessary in a democratic society and for the prevention of irregularities. (14)  Making this information accessible to the public enhances transparency regarding the use of Community funds in the common agricultural policy and contributes to a better understanding on the part of citizens of support for Europe's multifunctional agricultural sector and concerning the sound financial management of these funds. Given the overriding weight of the objectives pursued it is justified, with regard to the principle of proportionality and the requirement of the protection of personal data, to provide for the general publication of the relevant information as it does not go beyond what is necessary in a democratic society and for the prevention of irregularities. Farmers provide services for everyone in society, in return for which farms receive compensation. These services include, in particular, supplying affordable, good-quality food to nearly 500 million Europeans, providing renewable raw materials and renewable energy sources and preserving the cultivated landscape. In order to receive this compensation, agricultural enterprises have to comply with specified requirements, compliance with which is subject to stringent checks by the authorities. Amendment 4 RECITAL 14 A (new) (14a)  Publication of this information has a significant bearing on the right to privacy of the individuals concerned. It is therefore essential that key data protection provisions and provisions specifying the main items of data to be published should be incorporated in the Council regulation and not merely dealt with in implementing legislation. In particular, steps should be taken to ensure that the individuals concerned are informed about publication in advance. It is essential to stipulate that those using, or looking at, the data either enrol or register. Amendment 5 RECITAL 14 B (new) (14b)  The rules governing transparency constitute a significant budgetary control instrument. In the event of serious breaches of the transparency requirement, provision should be made for a reduction in funding from the Community budget. In that connection, a transitional period should be laid down. Amendment 6 ARTICLE 1, POINT 1 A (new) Article 6, paragraph 2, subparagraph 1 (Regulation (EC) No 1290/2005) (1a)  In Article 6(2), subparagraph 1 is replaced by the following: "2. Member States shall accredit as paying agencies departments or bodies which fulfil the conditions laid down in paragraph 1. Member States shall inform the Commission of any accreditation given, including an assessment of the paying agency's fulfilment of the conditions laid down in paragraph 1. Member States shall also inform the Commission of any major changes in the structures or the functioning of the accredited paying agency which might affect fulfilment of the conditions by the paying agencies." Amendment 7 ARTICLE 1, POINT 1 B (new) Article 6, paragraph 4 (Regulation (EC) No 1290/2005) (1b)  In Article 6, paragraph 4 is replaced by the following: "4. Where an accredited paying agency does not meet or no longer meets one or more of the conditions laid down in paragraph 1, the Commission may withdraw accreditation unless the Member State makes the necessary changes within a period to be determined by the Commission according to the severity of the problem." Amendment 8 ARTICLE 1, POINT 1 C (new) Article 6, paragraph 4 a (new) (Regulation (EC) No 1290/2005) (1c)  In Article 6, the following paragraph 4a is added: "4a. The Commission shall monitor the accreditation of paying agencies by the Member States. Where an accredited paying agency does not meet or no longer meets one or more of the conditions laid down in paragraph 1, the Commission shall order the accrediting Member State to withdraw the accreditation unless the paying agency makes the necessary changes within a period to be determined by the Commission according to the severity of the problem." Amendment 9 ARTICLE 1, POINT 1 D (new) Article 7 (Regulation (EC) No 1290/2005) (1d)  Article 7 is replaced by the following: "Article 7 Certification bodies The certification body shall be a public or private legal entity designated by the Member State with a view to certifying the truthfulness, completeness and accuracy of the accounts of the accredited paying agency, taking account of management and control systems. Where a certification body cannot perform or can no longer perform its tasks, the Member State shall withdraw the designation unless the certification body makes the necessary changes within a period to be determined according to the severity of the problem. Member States shall inform the Commission of the designation of certification bodies, including an assessment of the certification bodies' ability to perform the tasks mentioned. Member States shall also inform the Commission in the case of any major changes to the structures or the functioning of the certification bodies which might possibly affect the certification bodies' ability to perform their tasks. The Commission shall monitor the designation of certification bodies by the Member States, as well as their functioning. Where a certification body cannot perform or no longer can perform its tasks, the Commission shall order the designating Member State to withdraw the designation unless the certification body makes the necessary changes within a period to be determined according to the severity of the problem." Amendment 10 ARTICLE 1, POINT 1 E (new) Article 9, paragraph 3 a (new) (Regulation (EC) No 1290/2005) (1e)  In Article 9, the following paragraph 3a is added: "3a. Without prejudice to the above-mentioned obligations, each Member State shall, at the appropriate national level, prior to receiving Community funding in year N and on an annual basis, as part of the annual summary set out in Article 53b(3) of the Financial Regulation, issue a statement, based on available audits and declarations, declaring that the financial control structures required by Community law are in place and functioning." Amendments 11 and 12 ARTICLE 1, POINT 3 Article 17a, paragraph 2, point (a) (Regulation (EC) No 1290/2005) (a) the Commission has already decided, by means of at least two decisions pursuant to Article 31, to exclude from Community financing expenditure from the Member State concerned for the same measure and for the same reasons; (a) the Commission has already decided, by means of at least two decisions pursuant to Article 31 concerning the same paying agency in a Member State, to exclude from Community financing expenditure from the Member State concerned for the same measure and for the same reasons. This condition shall be considered to be met in cases where the second decision does not concern the same paying agency in a Member State, but where the overall circumstances show that the problem identified at the paying agency which was first audited has not been remedied. That measure must be implemented for the first time after 16 October 2008, the date on which this Regulation enters into force in accordance with Article 2; Amendment 13 ARTICLE 1, POINT 3 Article 17a, paragraph 3, subparagraph 2 (Regulation (EC) No 1290/2005) The percentage by which the monthly payments may be reduced or suspended shall be equal to the percentage decided by the Commission in its latest decision as referred to in paragraph 2(a). The percentage by which the monthly payments may be reduced or suspended shall be equal to the percentage decided by the Commission in its latest decision as referred to in paragraph 2(a). This percentage shall be reduced if in the meantime the Member State concerned has gone some way towards remedying the deficiencies identified by the Commission in its latest decision. The Commission may decide to increase this percentage annually if those deficiencies have persisted for four years or longer. Amendment 14 ARTICLE 1, POINT 3 Article 17 a, paragraph 3 a (new) (Regulation (EC) No 1290/2005) 3a.  Insofar as a Member State proves during the settlement of accounts procedure that the reductions in or deferment of monthly payments imposed in accordance with this Article are not sufficiently justified, the amounts corresponding to the reductions or deferments of payments in question shall be returned forthwith to that Member State, together with the customary legal exchange transaction charges. Amendment 15 ARTICLE 1, POINT 5 A (new) Article 31, paragraph 2 (Regulation (EC) No 1290/2005) (5a)  In Article 31, paragraph 2 is replaced by the following: "2. The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature, duration and gravity of the infringement and of the financial damage caused to the Community." Amendment 16 ARTICLE 1, POINT 6 A (new) Article 31, paragraph 5 a (new) (Regulation (EC) No 1290/2005) (6a)  In Article 31, the following paragraph 5a is added: "5a. The Commission shall draw up an annual report which summarises the amounts excluded from Community financing following infringements by Member States of their obligations under Regulation (EEC) No 4045/89, as well as the amounts which could not be excluded due to failure to notify Member States in time, as provided for in paragraph The first annual report shall also summarise the data described in the previous subparagraph for already completed years of the previous financial perspective." Amendment 17 ARTICLE 1, POINT 6 B (new) Article 32, paragraph 5 (Regulation (EC) No 1290/2005) (6b)  In Article 32, paragraph 5 is replaced by the following: "5. If recovery has not taken place within four years of the primary administrative or judicial finding, or within eight years where recovery action is taken in the national courts, the financial consequences of non-recovery shall be borne by the Member State concerned. A transitional period of 5 years shall be allowed. Member States shall indicate separately in the summary report referred to in the first subparagraph of paragraph 3 the amounts not recovered within the time-limits specified in the first subparagraph. Where, in the context of the recovery procedure, the absence of any irregularity is recorded by an administrative or legal instrument of a definitive nature, the Member State concerned shall declare as expenditure to the EAGF the financial burden borne by it under the first subparagraph. However, if for reasons not attributable to the Member State concerned, recovery could not take place within the time-limits specified in the first subparagraph, and the amount to be recovered exceeds EUR 1 000 000, the Commission may, at the request of the Member State, extend the time-limits by a maximum of 50 % of the initial time-limits." Amendment 18 ARTICLE 1, POINT 7 Article 33, paragraph 4, subparagraph 2 (Regulation (EC) No 1290/2005) (7)  In Article 33(4), the second subparagraph is deleted. deleted Amendment 19 ARTICLE 1, POINT 7 A (new) Article 33, paragraph 8, subparagraph 1 (Regulation (EC) No 1290/2005) (7a)  In Article 33(8), the first subparagraph is replaced by the following: "8. If recovery has not taken place prior to the closure of a rural development programme, the financial consequences of non-recovery shall be borne by the Member State concerned and shall be taken into account either at the end of the period of four years following the first administrative or judicial finding or eight years where recovery action is taken in the national courts, or on the closure of the programme if those deadlines expire prior to such closure." Amendment 20 ARTICLE 1, POINT 9, POINT (C) Article 42, point 8b (Regulation (EC) No 1290/2005) 8b. the detailed rules as to the obligation of the Member States to publish information on beneficiaries laid down in Article 44a, including aspects related to the protection of individuals with regard to the processing of their personal data; 8b. where necessary the detailed rules as to the obligation of the Member States to publish information on beneficiaries laid down in Article 44a, including aspects related to traceability, the use of the data by third parties and the protection of individuals with regard to the processing of their personal data and the protection of those individuals against radical animal rights activists; Amendment 21 ARTICLE 1, POINT 9 A (new) Article 43, subparagraph 1a (new) (Regulation (EC) No 1290/2005) (9a)  In Article 43, the following subparagraph is added: "Within two years following the entry into force of this Regulation, the Commission shall submit to the European Parliament and the Council a report setting out the experience gained from the publication of information concerning the beneficiaries of agricultural payments. This report shall include a review of what the data were used for, by whom they were used and an assessment of the advantages or otherwise of the publication of those data from the point of view of openness, transparency and public understanding of the common agricultural policy. In addition, the Commission shall indicate whether the centralised publication of information at Commission level would be advisable or, as appropriate, why it would not be." Amendment 22 ARTICLE 1, POINT 9 B (new) Article 43 a (new) (Regulation (EC) No 1290/2005) (9b)  The following Article 43 a is inserted: "Article 43 a Evaluation reports 1.  In 2008-2009 the Commission shall draw up an evaluation report, possibly accompanied by legislative proposals1. 2.  In 2011 the Commission shall draw up an evaluation report, possibly accompanied by legislative proposals, considering, in particular, the objective distribution of agricultural and rural development funds, on the basis of objective criteria rather than taking as its starting point historical expenditure and compromises in the Council. __________ 1 In accordance with Declaration No 9 on the Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (OJ C 139, 14.6.2006, p. 1)." Amendment 23 ARTICLE 1, POINT 10 Article 44 a (Regulation (EC) No 1290/2005) Pursuant to Article 53b(2)(d) of Regulation (EC) No 1605/2002, Member States shall ensure annual ex-post publication of the beneficiaries of the EAGF and the EAFRD and the amounts received per beneficiary under each of these Funds. 1.  Pursuant to Article 53b(2)(d) of Regulation (EC) No 1605/2002, Member States shall ensure annual ex-post publication, via the Internet, of the beneficiaries of the EAGF and the EAFRD and the amounts received per beneficiary under each of these Funds. When accessing the proposed Internet site, users shall be required to enrol or register. In the interests of transparency on both sides, any beneficiary of Community payments whose details have been published shall have access to a report on visitors to pages relating to it. The publication shall contain at least: 2.  The publication shall contain at least: (a) for the EAGF, the amount subdivided in direct payments within the meaning of Article 2(d) of Regulation (EC) No 1782/2003 and other expenditure; (a) for the EAGF, the amount subdivided in direct payments within the meaning of Article 2(d) of Regulation (EC) No 1782/2003 and other expenditure. In addition, intervention expenditure shall be subdivided by area; (b) for the EAFRD, the total amount of public funding per beneficiary." (b) for the EAFRD, the amount of public funding per beneficiary subdivided by axes pursuant to Title IV, Chapter I, of Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)1; (ba) the beneficiaries' names (surnames and forenames) and – subject to binding data protection provisions – the municipalities in which they have their places of residence or registered offices, and the amounts of the annual payments; (bb) if, in the case of agricultural enterprises in the legal form of a sole proprietorship, the forenames and surnames of farmers must be published, then in the case of other legal forms of business, including legal persons, the forenames and surnames of the investors and of the management, e.g. the board of a public limited company and the directors of a private limited company, shall also be given. In keeping with data protection requirements, Member States may further subdivide the information. In particular, they may also publish information concerning payments from the EAFRD on a project-related basis. Member States shall not be required to publish details of additional payments from purely national funds (top-ups), but publication of this information shall be encouraged. 3.  Information shall be published annually on a date to be specified by the Member State which should be notified to the Commission and to the recipients either in writing in advance or as part of the communication from the paying agency outlining the amount of payment. 4.  In the case of expenditure funded directly from the EAGF and relating to individual employees, publication shall be permissible only with the express consent of the employee concerned or in a form which does not allow the actual salary of an individual employee to be determined. 5.  Member States may provide for the publication of information pursuant to Article 44(a) to be carried out in full or in part by individual paying agencies, in which case they may stipulate that the information should be confined to payments effected in the area covered by the paying agency concerned (regional publication). 6.  The Commission shall set up an Internet platform linked to the Member States' Internet platforms. If Member States have information published by several paying agencies, those agencies shall also be linked to one another. Member States and the Commission shall be free to carry out general assessments of and to explain published data. Data concerning individuals shall be assessed only with the consent of those individuals. 7.  Publication of the information shall be accompanied by an overall explanatory statement explaining what the payments are made for and, in the case of the Single Farm Payment (SFP), a statement to the effect that in many cases the SFP is the actual farm income and that in some cases the actual farm income is less than the amount of the SFP– owing to costs of production. ____________ 1 OJ L 277, 21.10.2005, p. 1. Regulation as last amended by Regulation (EC) No 2012/2006 (OJ L 384, 29.12.2006, p. 8)." Amendment 24 ARTICLE 1, POINT 10 A (new) Article 44 b (new) (Regulation (EC) No 1290/2005) (10a)  The following Article 44b is inserted: "Article 44b Additional provisions governing the publication of information concerning beneficiaries 1.  If, as a result of the absence of key components, the annual publications by the Member States after 30 June 2009 contain major errors which seriously compromise the desired degree of transparency concerning expenditure practice, within two years following the entry into force of this Regulation payments for the Funds concerned and for the paying agency concerned shall be reduced by a flat rate of 2% for every year in which the major errors are not remedied. The first subparagraph of Article 17a(3) shall apply mutatis mutandis. 2.  Point 2.1 of Annex VI to Commission Regulation (EC) No 1974/2006 of 15 December 2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)1 is hereby repealed. _______________ 1 OJ L 368, 23.12.2006, p. 15. Regulation as amended by Regulation (EC) No 434/2007 (OJ L 104, 21.4.2007, p. 8)." Amendment 25 ARTICLE 2, PARAGRAPH 2 Article 1(10) shall apply to EAGF expenditure incurred from 16 October 2007 and to EAFRD expenditure from 1 January 2007. Article 1(10) shall apply to EAGF expenditure incurred from 16 October 2008 and to EAFRD expenditure from 1 January 2008. This concerns payments made by Member States after 16 October 2008 insofar as they concern the EAGF and after 1 January 2008 insofar as they concern the EAFRD. Articles 1(3) and (5) shall enter into force on 16 October 2008.