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Wednesday, 26 October 2011

CAP: Voluntary modulation of direct payments

The 3120th Council meeting on Agriculture and Fisheries held in Luxembourg on 20 October 2011 adopted a regulation amending regulation 378/2007 as regards the rules for the implementation of voluntary modulation of direct payments under the CAP following a first-reading agreement with the European Parliament (36/11). This amended regulation aligns only the provisions of regulation 378/2007 on the Lisbon Treaty which makes a distinction between the powers delegated to the Commission.

Provided that only two member states are covered by this regulation, the powers conferred on the Commission are classified as implementing acts covering the adoption of uniform conditions for implementing legally binding UE acts (as laid down in Article 291(2) of the Treaty). The modulation concerns the compulsory transfer of a proportion of direct payments to farmers made under the CAP from agricultural market support (Pillar 1) to rural development (Pillar 2). The scope of the amended regulation is the "voluntary modulation" which is the system allowing certain member states to modulate direct payments to farmers at a rate over and above that of the compulsory EU-wide modulation scheme. However, it should be noted that the substance of the regulation stays untouched by the amendment which imply only procedural changes.

Source: Council of Ministers