(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2007)0484),

–   having regard to Article 37, paragraph 2, third subparagraph, of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0283/2007),

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

–   having regard to the report of the Committee on Agriculture and Rural Development (A6-0470/2007),

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 Commission.

Text proposed by the Commission   Amendments by Parliament Amendment 1 RECITAL 1 A (new) (1a)  Cross-compliance has already proven to be a very important instrument under the reformed Common Agricultural Policy as regards justifying expenditure. Cross-compliance does not impose new obligations on farmers, nor does it entitle them to new payments following their compliance. It simply establishes a link between direct payments made to farmers and the public services they render to society as a whole by complying with Community legislation in the field of environment, food safety and animal welfare. The requirements of Community legislation are generally very strict compared to standards which apply elsewhere in the rest of the world. Amendment 2 RECITAL 1 B (new) (1b)  Given the value the EU places on these high standards, the reformed Common Agricultural Policy has effectively transformed the first pillar of the policy into a de facto rural development policy, as farmers are being rewarded for supplying public services, rather than receiving unconditional payments linked to production. To meet the objectives of the cross-compliance system, the full understanding of the system and co-operation of farmers are required - something which is currently lacking, because of the fear which the regime has generated at farm level. A better informed farm sector would find compliance easier. However, understanding the details of 18 specific EU Directives and Regulations presents huge problems not just for farmers, but also Member State competent authorities. Amendment 3 RECITAL 1 C (new) (1c)  Cross-compliance has linked the payment of support to farmers to complying with 18 different EU Directives and Regulations. By its very nature, the monitoring of cross-compliance is complex. The system of cross-compliance requires that those carrying out the checks have a full understanding of farming and are familiar with the different sectors of farming. Adequate training for those carrying out inspection of farmers' activities is vital. In addition, inspectors should have the discretion to take into account un-seasonal and sudden factors which mitigate against full compliance - due to no fault of the farmer. Amendment 4 RECITAL 1 D (new) (1d)  The cross-compliance system and/or the Common Agricultural Policy will probably require further adjustment in the future, as currently the level of payments does not always seem to be in balance with the compliance efforts made by the farmers concerned, because payments still depend to a large extent on historic spending. In particular animal welfare legislation is obviously most burdensome for livestock farmers, which is not reflected in the level of their payments. However, if imported products met the same animal welfare standards, then there would be no need to compensate farmers for their compliance with Community legislation in this field. The Commission should therefore strive for recognition of the non-trade concerns as import criteria within the World Trade Organisation negotiations. Amendment 5 RECITAL 1 E (new) (1e)  Continuous effort should be put into the simplification, improvement and harmonisation of the cross-compliance system. Therefore the Commission should present a report on the application of the cross-compliance system every two years. Amendment 6 RECITAL 1 F (new) (1f)  Reduced administrative burdens, harmonised checks, amalgamation of checks, including within the European institutions, and timely payments would increase the overall support among farmers for the cross-compliance system and so increase the effectiveness of the policy. Amendment 7 RECITAL 1 G (new) (1g)  In the spirit of wanting to promote compliance, advance notice is essential. It is also required to assist farmers, many of whom are part-time operators, to prepare for inspections. Unannounced checks have no real place in the system, as they contribute to a disproportionate but valid sense of fear among farmers about the overall cross-compliance regime. Where "deliberate and serious fraud" is suspected, other means of attack, including Member State domestic law, should be used. When unannounced checks are carried out they should be done on the basis of good intelligence of the competent authority that a serious problem exists in a given farm. At the same time the effectiveness of the on-the-spot checks should not be jeopardised. Amendment 8 RECITAL 1 H (new) (1h)  In order to limit the burden on farmers, Member States and the European institutions should be encouraged to keep both the number of on-the-spot checks and the number of controlling agencies to a minimum, without prejudice to the provisions of Commission Regulation (EC) No 796/2004 of 21 April 2004 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in Council Regulation (EC) No 1782/20031. Member States should therefore be allowed to perform the minimum control percentage at the level of the paying agency. Further, Member States and the European institutions should be encouraged to take additional measures to limit the number of persons carrying out the controls, to ensure that they are properly trained and to limit the period during which an on-the-spot check may be carried out on a particular farm to a maximum of one day. The Commission should assist Member States in meeting the requirements for integrated sample selections. Sample selection for on-the-spot checks should be carried out independently from specific minimum control percentages as provided for under the specific legislation falling within the scope of cross-compliance. _______________________ 1 OJ L 141, 30.4.2004, p. 18. Regulation as last amended by Regulation (EC) No 972/2007 (OJ L 216, 21.8.2007, p. 3). Amendment 9 RECITAL 1 I (new) (1i)  Administrative and on-the-spot checks as set out in Regulation (EC) No 796/2004 are conducted in such a way as to ensure effective verification of compliance with the terms under which aids are granted, and of the requirements and standards relevant for cross-compliance. These need to be made complementary under the existing integrated administration and control system, in order to prevent duplication and enable all the checks to be conducted in a single visit. Amendment 10 RECITAL 1 J (new) (1j)  Member States should ensure that farmers are not punished twice (reduction or exclusion of payments, as well as a fine following non-compliance with the relevant national legislation) for the same case of non-compliance. Amendment 11 RECITAL 1 K (new) (1k)  The reductions in payments applicable in cases of non-compliance with cross-compliance rules, obligations and requirements differ, depending on whether non-compliance is deemed an intentional act or the result of negligence. In the same way, those reductions should be proportionate to the importance of the sphere of activity concerned by the non-compliance at the farm holding, particularly where this is a mixed crop and stock farming holding. Amendment 12 RECITAL 2 (2)  Article 44(3) of Council Regulation (EC) No 1782/2003 provides that farmers shall keep at their disposal for a period of at least 10 months the parcels corresponding to the eligible hectare. Experience shows that this condition risks putting high constraints on the functioning of the land market and creates significant administrative workload for the farmers and the administrative services. A reduction of the time period would not jeopardise the management of the cross-compliance obligations. On the other hand, it is also necessary to establish a date where the parcels should be at the farmer's disposal to avoid double claims for the same land. Therefore it would be appropriate to establish that farmers shall have the parcels at their disposal on the 15 June of the year of submission of the aid application. The same rule should also be applied for the Member States applying the single area payment scheme. It would be also appropriate to set up the rules as regards the responsibilities under cross-compliance in case of transfer of land. (2)  Article 44(3) of Council Regulation (EC) No 1782/2003 provides that farmers shall keep at their disposal for a period of at least 10 months the parcels corresponding to the eligible hectare. Experience shows that this condition risks putting high constraints on the functioning of the land market and creates significant administrative workload for the farmers and the administrative services. A reduction of the time period would not jeopardise the management of the cross-compliance obligations. On the other hand, it is also necessary to establish a date where the parcels should be at the farmer's disposal to avoid double claims for the same land. Therefore it would be appropriate to establish that farmers shall have the parcels at their disposal on the latest date for submission applicable in the Member State concerned of the year of submission of the aid application. The same rule should also be applied for the Member States applying the single area payment scheme. It would be also appropriate to set up the rules as regards the responsibilities under cross-compliance in case of transfer of land. Amendment 13 RECITAL 7 A (new) (7a)  In his single application, the farmer declares, inter alia, the area he is using for agricultural purposes, the scheme or schemes in question and his payment entitlements, and attests that he is aware of the conditions attached to the granting of the aid in question. Those conditions should correspond not only to the aid eligibility criteria but also to the criteria on public health, animal and plant health, animal welfare and respect for the environment on which payment of that aid is conditional. By that attestation, the farmer would undertake to comply with those various conditions, and contract to abide by them. Amendment 14 ARTICLE 1, POINT -1 (new) Article 4, paragraph 2, subparagraph 1 a (new) (Regulation (EC) No 1782/2003) (- 1) In Article 4, paragraph 2, the following subparagraph is added: "In the case of directives, the Commission shall ensure that the statutory management requirements in the areas referred to in paragraph 1 are transposed in a harmonised manner in each Member State." Amendment 15 ARTICLE 1, POINT 1, POINT (A) Article 6, paragraph 1 (Regulation (EC) No 1782/2003) (a)  Paragraph (1) is replaced by the following: "1. Where the statutory management requirements or good agricultural and environmental conditions are not complied with in a given calendar year (hereinafter 'the calendar year concerned'), the total amount of direct payments to be granted, after application of Articles 10 and 11 to the farmer who submitted an application in the calendar year concerned, shall be reduced or cancelled in accordance with the detailed rules laid down under Article 7. Subject to paragraph 2, the farmer who submitted an aid application shall be held liable unless he can show that the non-compliance in question is neither the result of an action or omission directly attributable: (a) to himself, or (b) in case where the agricultural land has been transferred during the calendar year concerned, - to the transferee where the transferral has taken place between the date referred to in Article 44(3) and 1 January of the following calendar year; - to the transferor, where the transferral has taken place between 1 January of the calendar year concerned and the date referred to in Article 44(3)." deleted Amendment 31 ARTICLE 1, POINT 1, POINT (B) Article 6, paragraph 3, subparagraph 1 (Regulation (EC) No 1782/2003) 3.  Notwithstanding paragraph 1 and pursuant to the conditions laid down in the detailed rules referred to in Article 7(1), Member States may decide not to apply a reduction amounting to EUR 50 or less per farmer and per calendar year. 3.  Notwithstanding paragraph 1 and pursuant to the conditions laid down in the detailed rules referred to in Article 7(1), Member States may decide not to apply a reduction amounting to EUR 100 or less per farmer and per calendar year. Amendment 17 ARTICLE 1, POINT 1, POINT (B) Article 6, paragraph 3, subparagraph 2 (Regulation (EC) No 1782/2003) Any finding of non-compliance shall nevertheless be subject to a specific follow-up by the competent authority. Any such findings, the follow-up measures and the remedial action to be taken shall be notified to the farmer. Any finding of non-compliance shall nevertheless be subject to a specific follow-up in the risk analysis by the competent authority. Any such findings, the follow-up measures and the remedial action to be taken shall be notified to the farmer. This subparagraph shall not apply where the farmer has taken immediate remedial action putting an end to the non-compliance found. Amendment 18 ARTICLE 1, POINT 2 Article 7, paragraph 2, subparagraph 3 (Regulation (EC) No 1782/2003) Any finding of minor non-compliance shall nevertheless be subject to a specific follow-up by the competent authority. Any such finding, the follow-up measures and the remedial action to be taken shall be notified to the farmer. This subparagraph shall not apply where the farmer has taken immediate remedial action putting an end to the non-compliance found". deleted Amendment 19 ARTICLE 1, POINT 2 A (new) Article 7, paragraph 4, subparagraph 1 a (new) (Regulation (EC) No 1782/2003) (2a)  In Article 7(4) the following subparagraph is added: "In any case, in the new Member States, the percentage of reduction referred to in Article 6(1) shall take into account the relevant percentage of the schedule of increments applicable in a given year in accordance with Article 143a." Amendment 20 ARTICLE 1, POINT 2 B (new) Article 7, paragraph 4 a (new) (Regulation (EC) No 1782/2003) (2b)  In Article 7, the following paragraph is added: "4a. Where a reduction or exclusion of payments is being applied following non-compliance registered during an on-the-spot check as referred to in Article 25, no fine shall be imposed under the corresponding national legislation for the same case of non-compliance. Where a fine has been imposed following non-compliance with national legislation, no reduction or exclusion of payments shall be imposed for the same case of non-compliance." Amendment 21 ARTICLE 1, POINT 2 C (new) Article 8 (Regulation (EC) No 1782/2003) (2c)  Article 8 is replaced by the following: "Article 8 Review By 31 December 2007 at the latest, and every two years thereafter, the Commission shall submit a report on the application of the cross-compliance system accompanied, if necessary, by appropriate proposals notably with a view to: – amending the list of statutory management requirements set out in Annex III, – simplifying, deregulating and improving the legislation under the list of statutory management requirements, special attention being paid to legislation concerning nitrates, – simplifying, improving and harmonising the control systems in place, taking into account the opportunities offered by the development of indicators and bottleneck-based controls, controls already performed under private certification schemes, controls already performed under national legislation implementing the statutory management requirements, and information and communication technology, The reports shall also contain an estimate of the total costs of control under the cross-compliance system of the year preceding the year in which the report will be published." Amendment 22 ARTICLE 1, POINT 2 D (new) Article 18, paragraph 1, point (e) (Regulation (EC) No 1782/2003) (2d)  In Article 18(1), point (e) is replaced by the following: "(e) an integrated control system that comprises verification of eligibility conditions and of the requirements in terms of cross-compliance," Amendment 23 ARTICLE 1, POINT 2 E (new) Article 25 (Regulation (EC) No 1782/2003) (2e)  Article 25 is replaced by the following: "Article 25 Controls on cross-compliance 1.  Member States shall carry out on-the-spot checks to verify whether the farmer complies with the obligations referred to in Chapter 1. These controls shall take place within a period of not more than one day for a particular farm. 2.  Member States may make use of their existing administration and control systems to verify compliance with the statutory management requirements and good agricultural and environmental conditions referred to in Chapter 1. However, Member States shall endeavour to limit the number of controlling agencies and the number of persons carrying out the on-the-spot checks on a particular farm. These systems, and notably the system for identification and registration of animals set up in accordance with Directive 92/102/EEC, Regulation (EC) No 1782/2003, Regulation (EC) No 1760/2000 and Regulation (EC) No 21/2004, shall be compatible, within the meaning of Article 26 of this Regulation, with the integrated system. 3.  Member States shall endeavour to plan controls in such a way that farms which can best be controlled in a particular period during the year, due to seasonal reasons, are indeed controlled in that particular period. However, if the controlling agency could not control a particular statutory management requirement, or a part thereof, or good agricultural and environmental conditions during an on-the-spot check, due to seasonal reasons, those requirements and conditions shall be deemed to be met." Amendment 24 ARTICLE 1, POINT 3 Article 44, paragraph 3 (Regulation (EC) No 1782/2003) Except in case of force majeure or exceptional circumstances, these parcels shall be at the farmer's disposal on the 15 June of the year of submission of the aid application. Except in case of force majeure or exceptional circumstances, these parcels shall be at the farmer's disposal on the latest date for submission applicable in the Member State concerned of the year of submission of the aid application. Amendment 25 ARTICLE 1, POINT 5, POINT (A) Article 143 b, paragraph 5, subparagraph 1, new sentence (Regulation (EC) No 1782/2003) Except in case of force majeure or exceptional circumstances, these parcels shall be at the farmer's disposal on the 15 June of the year of submission of the aid application. Except in case of force majeure or exceptional circumstances, these parcels shall be at the farmer's disposal on the latest date for submission applicable in the Member State concerned of the year of submission of the aid application. Amendment 26 ARTICLE 1, POINT 5, POINT (B) Article 143 b, paragraph 6, subparagraph 3 (Regulation (EC) No 1782/2003) As from 1 January 2005 and until 31 December 2008 the application of Articles 3, 4, 6, 7 and 9 shall be optional for the new Member States insofar as those provisions relate to statutory management requirements. As from 1 January 2009 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III according to the following timetable: As from 1 January 2005 and until 31 December 2008 the application of Articles 3, 4, 6, 7 and 9 shall be optional for the new Member States insofar as those provisions relate to statutory management requirements. As from 1 January 2009 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III according to the following timetable: (a) requirements referred to in point A shall apply from 1 January 2009; (a) requirements referred to in point A shall apply from 1 January 2009; (b) requirements referred to in point B shall apply from 1 January 2010; (b) requirements referred to in point B shall apply from 1 January 2011; (c) requirements referred to in point C shall apply from 1 January 2011. (c) requirements referred to in point C shall apply from 1 January 2013. However, for Bulgaria and Romania, the application of Articles 3, 4, 6, 7 and 9 shall be optional until 31 December 2011 insofar as those provisions relate to statutory management requirements. As from 1 January 2012 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III according to the following timetable: However, for Bulgaria and Romania, the application of Articles 3, 4, 6, 7 and 9 shall be optional until 31 December 2011 insofar as those provisions relate to statutory management requirements. As from 1 January 2012 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III according to the following timetable: (a) requirements referred to in point A shall apply from 1 January 2012; (a) requirements referred to in point A shall apply from 1 January 2012; (b) requirements referred to in point B shall apply from 1 January 2013; (b) requirements referred to in point B shall apply from 1 January 2014; (c) requirements referred to in point C shall apply from 1 January 2014. (c) requirements referred to in point C shall apply from 1 January 2016. New Member States may apply this option also in the case where they decide to terminate the application of the single area payment scheme before the end of the period of application provided for in paragraph 9. New Member States may apply this option also in the case where they decide to terminate the application of the single area payment scheme before the end of the period of application provided for in paragraph 9. Amendment 27 ARTICLE 1, POINT 5, POINT (C) Article 143 b, paragraph 9, first sentence (Regulation (EC) No 1782/2003) For any new Member States the single area payment scheme shall be available for a period of application until the end of 2010. For any new Member States the single area payment scheme shall be available for a period of application until the end of 2013. Amendment 28 ARTICLE 1, POINT 5 A (new) Article 145, point (m) (Regulation (EC) No 1782/2003) (5a)  In Article 145, point (m) is replaced by the following: "(m) rules on the administrative and on-the-spot checks and the checks by remote sensing. In the case of controls pursuant to Title II Chapter 1 the rules laid down shall provide for regular and sufficient advance notice of on-the-spot checks where this does not jeopardise the actual goal of the controls. The rules shall also provide for incentives for Member States to put in place a system of well-functioning and coherent controls;" Amendment 29 ARTICLE 2 Article 51, paragraph 3, subparagraph 2 (Regulation (EC) No 1698/2005) The derogation provided for in the first subparagraph shall apply until 31 December 2008. As from 1 January 2009 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III of Regulation (EC) No 1782/2003 according to the following timetable: The derogation provided for in the first subparagraph shall apply until 31 December 2008. As from 1 January 2009 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III of Regulation (EC) No 1782/2003 according to the following timetable: (a) requirements referred to in point A shall apply from1 January 2009; (a) requirements referred to in point A shall apply from1 January 2009; (b) requirements referred to in point B shall apply from 1 January 2010; (b) requirements referred to in point B shall apply from 1 January 2011; (c) requirements referred to in point C shall apply from 1 January 2011. (c) requirements referred to in point C shall apply from 1 January 2013. However, for Bulgaria and Romania, the application of Articles 3, 4, 6, 7 and 9 of Regulation (EC) No 1782/2003 shall be optional until 31 December 2011 insofar as those provisions relate to statutory management requirements. As from 1 January 2012 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III of Regulation (EC) No 1782/2003 according to the following timetable: However, for Bulgaria and Romania, the application of Articles 3, 4, 6, 7 and 9 of Regulation (EC) No 1782/2003 shall be optional until 31 December 2011 insofar as those provisions relate to statutory management requirements. As from 1 January 2012 a farmer receiving payments under the single area payment scheme shall respect the statutory management requirements referred to in Annex III of Regulation (EC) No 1782/2003 according to the following timetable: (a) requirements referred to in point A shall apply from 1 January 2012; (a) requirements referred to in point A shall apply from 1 January 2012; (b) requirements referred to in point B shall apply from 1 January 2013; (b) requirements referred to in point B shall apply from 1 January 2014; (c) requirements referred to in point C shall apply from 1 January 2014. (c) requirements referred to in point C shall apply from 1 January 2016.