EU rural development policy 2007-2013

Two legislative text proposals: Proposal for a Council Regulation on the financing of the CAP => creates a new financing framework for the CAP Proposal for a Council Regulation on support for Rural Development from the European Agricultural Fund for Rural Development (EAFRD) => the new rural development regulation

The ‘new 1258’ establishes two new funds: The European Agricultural Fund for Guarantee => EAFG The European Agricultural Fund for Rural Development => EAFRD

Single financing framework for the CAP: Legal basis for the financing of all measures, actions and programmes within the scope of the CAP Common and specific rules for the two new Funds Includes the rules on budget discipline

Rural Development Policy 2007-2013: One single rural development fund One single programming system One single set of financial rules One single control system Make it simple For all rural areas in the EU

Simplification CURRENT 5 types of programming Guarantee Guarantee Objective 2 Guarantee new MS Guidance Objective 1 Guidance LEADER+ 3 financial management and control systems Guidance Single funding, programming, financial management and control framework for RD

Policy focus on 3 main objectives: Improving the competitiveness of the agricultural sector through support for restructuring Enhancing the environment and the countryside through support for land management Enhancing the quality of life in rural areas and promoting diversification of economic activities

Four priority axes to implement the objectives: Competitiveness of the farm and forestry sector Environment/land management Wider rural development on and off farm LEADER approach

Programming steps EU strategy document setting out the EU priorities for the three policy axes National strategy plans translating the EU priorities to the member state situation and ensuring complementarity with Cohesion policy National or regional rural development programmes articulating the four axes

Programme balance Competitiveness objective: total programme funding at least 15% Environment/land management: 25% Quality of life and diversification: 15% Implementation of the LEADER approach: 7%

Reporting based on a common framework for monitoring and evaluation Annual progress reports at programme level National summary reports on progress in implementation of the national strategy Annual Commission summary report to the Council and the EP on the progress in implementation of the EU strategy and priorities

Financial management and control: Similar to the Structural Funds: Differentiated appropriations, automatic decommitment (n+2) Managing Authority and Monitoring Committee Using Guarantee bodies and procedures: A Paying Agency and a Certifying Body Annual financial clearance of accounts and conformity clearance decisions

Funding origin for the EAFRD Guarantee (56 billion EUR): EU-15 + EU-10 unchanged at 2006 level Bulgaria + Romania phased in Guidance (33 billion EUR): Transfer from Cohesion heading, including statistical phasing-out Convergence regions Bulgaria + Romania (EU-10 average) Leader+ Modulation (7 billion EUR): Transfer 1st to 2nd pillar Total funding 2007-13: 96 billion EUR (2004 prices)

Financial resources

Community cofinancing rates: At the level of the axis as share of total eligible public expenditure For axis 1 and 3 a maximum cofinancing rate of 50% (75% in Convergence regions) For axis 2 and 4 a maximum cofinancing rate of 55% (80% in Convergence regions) 5 percentage points additional for the outermost regions and small Aegean islands Minimum cofinancing rate of 20% per axis

Conclusion Single and simpler coherent framework for rural development Focus on commonly agreed EU priorities, while leaving sufficient programming flexibility for the MS Increased accountability at EU, national and regional level for results obtained