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064700/EU XXVII. GP Eingelangt Am 11/06/21 064700/EU XXVII. GP Eingelangt am 11/06/21 Council of the European Union Brussels, 11 June 2021 (OR. en) 9727/21 ADD 6 FIN 452 COVER NOTE From: Secretary-General of the European Commission, signed by Ms Martine DEPREZ, Director date of receipt: 9 June 2021 To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union No. Cion doc.: COM(2021) 301 final - ANNEX 3 (PART 3/3) Subject: Annex to the report from the Commission to the European Parliament, the Council and the Court of Auditors "Annual Management and Performance Report for the EU Budget - Financial Year 2020" Delegations will find attached document COM(2021) 301 final - ANNEX 3 (PART 3/3). Encl.: COM(2021) 301 final - ANNEX 3 (PART 3/3) 9727/21 ADD 6 RG/ab ECOMP.2.A EN www.parlament.gv.at EUROPEAN COMMISSION Strasbourg, 8.6.2021 COM(2021) 301 final ANNEX 3 – PART 3/3 ANNEX to the REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS Annual Management and Performance Report for the EU Budget - Financial Year 2020 EN EN www.parlament.gv.at Annex 3 – Programme performance overview Heading 3 Natural resources and environment The EU budget is and will continue to be a driver of sustainability, investing in sustainable agriculture and maritime sectors, along with climate action, environmental protection, food security and rural development. Some of the programmes under this heading support the EU’s farming, agricultural and fisheries sectors and seek to make them more competitive (such as the common agricultural policy and the European Maritime, Fisheries and Aquaculture Fund). Other programmes are dedicated exclusively to the EU’s environmental and climate objectives (such as the programme for environment and climate action (LIFE) and the Just Transition Fund). Multiannual financial framework Multiannual financial framework 2014-2020 2021-2027 Heading 2 Heading 3 EAGF EAGF Sustainable growth: Natural natural EAFRD EAFRD resources resources and EMFF EMFAF environment LIFE LIFE Fisheries organisations and Fisheries organisations and agreements agreements JTF 103 www.parlament.gv.at www.parlament.gv.at Annex 3 – Programme performance overview LEGAL BASIS Regulation (EU) No 1306/2013 EAGF of the European Parliament and of the Council, Regulation (EU) EUROPEAN AGRICULTURAL GUARANTEE FUND No 1307/2013 of the European Parliament and of the Council, Regulation (EU) No 1308/2013 What is the European Agricultural Guarantee Fund? of the European Parliament and The European Agricultural Guarantee Fund (EAGF) provides basic protection for farm incomes of the Council and Council Regulation (EU) No 1370/2013 against the particular shocks (e.g. price- and production-related shocks) to which agriculture is exposed. The Common Market Organisation provides a framework of rules on issues such as market-support measures, product standards and labelling. Direct payments provide a stable revenue source for farmers. In addition, cross-compliance links direct payments to standards MORE INFORMATION concerning the environment, food safety, animal and plant health and animal welfare throughout http://europa.eu/!wm64UF the EU, while the ‘greening’ layer of direct payments rewards farmers for additional environmental care, such as crop diversity, permanent grassland and ecologically beneficial zones or landscape BUDGET ALLOCATION 2014- features. 2020 EUR 301 949.9 million OVERALL EXECUTION (2014-2020) 100% 100% % Payments Commitments Evaluations/ studies conducted Why is it necessary? Outlook for the 2021-2027 period A complete overview of the The EAGF preserves a level playing field in The Commission’s proposals on the common evaluations related to the the single market for agricultural products and agricultural policy for the post-2020 period EAGF can be found at: enables a stronger common position in trade aim to make it more responsive to current and http://europa.eu/!Xq94Py negotiations. Moreover, it responds more future challenges such as climate change (for effectively and efficiently to cross-border which the European Green Deal sets the level challenges such as underpinning food of ambition of related measures) or How is it security, mitigating and adapting to climate generational renewal, while continuing to implemented? change, caring for natural resources such as support farmers in the EU, for a sustainable The Directorate-General for soil and water, restoring biodiversity and and competitive agricultural sector. Agriculture and Rural strengthening economic and social cohesion. Negotiations with the European Parliament and the Council of the European Union on the Development is the lead DG The EAGF supports balanced territorial for the implementation of reform of the common agricultural policy are development and encourages smart, ongoing. the programme, mainly sustainable and inclusive growth: analysis through shared shows that less or no EAGF support would To ensure continuity of the support for management with the result in a higher concentration of agricultural common agricultural policy beneficiaries, Member States. production, i.e. small farmers and farmers in there is a transitional regulation that allows less-profitable areas would go out of business the EAGF measures to continue in 2021 and and larger farms would become even bigger 2022 under the rules for the 2014-2020 and more intensive. This would have a period though with financial allocations and negative effect on jobs in rural areas Budget implementation (in million EUR) EXECUTED COMMITMENTS EXECUTED PAYMENTS 2018 2019 2020 105 www.parlament.gv.at Annex 3 – Programme performance overview x To promote local agricultural production General and specific and to ensure a fair level of prices for objectives commodities for direct consumption and for processing by local industries in the x To promote balanced territorial outermost regions of the EU and on the development, viable food production and Aegean islands. sustainable management of natural x To provide the Commission with resources and climate action. reasonable assurances that Member x To improve the competitiveness of the States have put in place management agricultural sector and enhance its value and control systems in conformity with share in the food chain. EU rules. x To foster market stability, to better reflect x To inform and increase awareness of the consumer expectations and to sustain the common agricultural policy by stability of farmers’ income by providing maintaining an effective and regular direct income support. dialogue with stakeholders, civil society x To promote more market-oriented and specific target audiences. agriculture by ensuring a significant level x To facilitate decision-making on strategic of decoupled income support. choices for the common agricultural x To contribute to the enhancement of the policy and to support other activities of environmental performance of the the DG by means of economic and policy common agricultural policy. analyses and studies. 106 www.parlament.gv.at Annex 3 – Programme performance overview Key performance indicators Baseline PROGRESS TO TARGET Target Results Assessment Increase in 2013: Overall increase Index was above On track agricultural factor 111.8 in the long term baseline in 6 out of income (index) the 7 years from 2014 to 2020. 2020 index value: 124.0 Increase in 2005: Overall increase Index increased each On track agricultural 100 in the long term year from 2014 to productivity (index) (1) 2018. 2018 index value: 111 Increase in rural 2013: Overall increase Index increased each On track employment rate (2) 63.5% in the long term year from 2014 to 2019. 2019 employment rate: 69% % of target achieved by the end of 2020 (1) Latest results are from 2018. (2) Latest results are from 2019. NB: Progress to target is measured provisionally based on the number of years in which the index was above baseline. Where are we in the implementation? x Direct payments. In general, the implementation of direct payments is on track. The rebalancing of the distribution of direct- payment aid levels among and within Member States is ongoing. Data confirm that the average direct payments per hectare are converging at both Member State and farmer levels. The various schemes allowing further focus on the needs of certain categories of beneficiaries are fully in place. For the 2022 financial year, the needs for most schemes only show minor changes compared to 2021, owing to the stabilisation in execution. The ‘greening’ layer of direct payments accounts for 30% of Member States’ annual direct payment ceilings and covers annual obligations that benefit the environment and climate, such as crop diversification, maintenance of permanent grassland and the dedication of 5% of arable land to ecologically beneficial areas. x Market-related expenditure. The Common Market Organisation sets the framework for sector-specific support programmes (for wine, fruit and vegetables, olive oil, beekeeping and hops) and schemes (for promotion and support for the outermost regions and smaller Aegean islands, and EU school fruit, vegetables and milk scheme). Estimated expenditure for the Member States’ wine programmes and support for the fruit and vegetables sector represents around three quarters of the requested appropriations for market-related expenditure. Agricultural markets remain particularly sensitive to external shocks, i.e. lower economic growth, weather etc. In 2020, the Commission adopted a range of market interventions and exceptional measures to support the agricultural
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