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Transitional provisions for the support by the European Agricultural Fund for Rural Development (EAFRD) and by the European Agricultural Guarantee Fund (EAGF) in the year 2021

In “A European Green Deal”

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For a brief overview of the key points of the adopted text and its significance for the citizen, please see the corresponding summary note.

On 31 October 2019, the European Commission adopted two proposals to ensure the continuation of the current rules of the common agricultural policy (CAP) through a one-year transitionary period ending on 31 December 2021:

  • A proposal for a flexibility regulation extending certain technical provisions on direct payments to 2021, without any new budgetary or political commitments (already voted by Parliament at its plenary in December 2019).
  • A proposal for a transitional regulation setting out a number of amendments to current CAP regulations, as regards their resources and application in the year 2021.

The proposal for a transitional regulation would introduce transitional adjustments and amendments that are necessary due to the changes that come with the Commission’s proposals on the CAP beyond 2020 and to ensure the continuity of the CAP until the new system is in place. It touches upon several provisions of the current CAP legal framework. It would extend to 2021 the reserve for crises and certain essential provisions for the functioning of direct payments. On rural development, it concerns, among other things, the possibility, for the EU Member States that risk running out of funds, to decide an extension to 2021 of the 2014-2020 rural development programmes. As for sectoral aid schemes for fruit and vegetables, olive oil and table olives, and wine, their timetable is adapted to smooth the transition towards their inclusion in the CAP strategic plans. 

In the Council, an exchange of views on the CAP transitional rules took place on 27 January 2020. The majority of delegations were in favour of the adoption of a Council’s position as soon as possible. A number of delegations agreed with a one-year transitional period, while others were in favour of covering as well 2022. Some delegations requested that existing transitional national aid be included in this transitional regulation. Discussions held in the Council's Special Committee on Agriculture on the Croatian Presidency's suggested amendments paved the way for Council’s partial general approach adopted on 6 April 2020. On the duration of the transitional period, a Council statement considers that the need to extend the transitional period until the end of 2022 requires a final decision at a later stage.

In the Parliament, the dossier of the proposal for a CAP transitional regulation is attributed to the Committee on Agriculture and Rural Development (AGRI), rapporteur Elsi Katainen (Renew, Finland). On 28 April 2020, AGRI Members voted unanimously (by 48 votes in favour) the rapporteur’s report with compromise amendments agreed with political groups. The negotiating mandate was approved by plenary vote on May 15. Among the main amendments proposed in the approved report, a safeguard mechanism would be triggered by 30 October 2020, to extend the transitional period for an additional year if the 2021-2027 EU budget and CAP reform processes are not concluded. Moreover, financial figures in the transitional regulation should be calculated on the basis of the figures agreed for the 2021-2027 EU budget or, if not adopted in time, on the basis of extended 2020 ceilings and provisions. Other proposed amendments concern the use of rural development funds from the next financial period to finance outstanding commitments where funds have run out, and a longer duration of commitments for measures on organic farming, animal welfare and environmental requirements (up to 5 years). Amendments are proposed on the provisions of risk management tools, the budgeting of the crisis reserve, the obligation to continue internal convergence, and the continuation during the transitional period of transitional national aid and of operational programmes in the fruit and vegetables, and in the wine sector. The European Economic and Social Committee (EESC) adopted its opinion on the Commission’s proposal on 5 May 2020.

During the negotiations held in May-July 2020, Parliament and Council reached partial provisional political agreement on all essential aspects of the transitional CAP file. This agreement includes the decision on the two-year duration of the transitional period. Further discussions led to a proposal that the €8 billion additional funds for rural development stemming from the Commission’s proposal for a coronavirus crisis recovery instrument (Next Generation EU) should be made available as soon as possible through the transitional regulation. On 10 November 2020, Parliament and Council negotiators agreed to include articles dealing with such payments in the regulation on CAP transitional measures, according to a 30-70 % split between 2021 and 2022, respectively. This agreement also provides for at least 37 % of the funds to benefit organic farmers and environmental, climate-related actions and animal welfare and at least 55 % to support young farmers and on-farm investments on resilient, sustainable and digital recovery. Other provisions include higher share of EU finance up to 100 % of eligible measures and increased ceiling for business start-up aid for young farmers.

On 15 December 2020, Parliament’s plenary approved the transitional rules agreed in July (653 votes in favour, 19 against, and 22 abstentions), along with further agreement reached in the autumn on the inclusion of the EU recovery package for rural communities in the transitional regulation. The text endorsed by Parliament in 1st reading was adopted by Council on 23 December 2020. On 28 December 2020, the final act was published in the Official Journal of the European Union as Regulation (EU) 2020/2220 of the European Parliament and of the Council of 23 December 2020, and entered into force on the day following its publication (except for certain provisions for which specific rules apply, as detailed in article 11 of the regulation).

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Further reading:

Author: Rachele Rossi, Members' Research Service, legislative-train@europarl.europa.eu

As of 15/12/2024.