European Parliament 2019-2024 Plenary sitting A9-0101/2020 11.5.2020 ***I REPORT on the proposal for a regulation of the European Parliament and of the Council laying down certain 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 and amending Regulations (EU) No 228/2013, (EU) No 229/2013 and (EU) No 1308/2013 as regards resources and their distribution in respect of the year 2021 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards their resources and application in the year 2021 (COM(2019)0581 – C9-0162/2019 – 2019/0254(COD)) Committee on Agriculture and Rural Development Rapporteur: Elsi Katainen RR\1204899EN.docx PE646.753v02-00 EN United in diversity EN PR_COD_1amCom Symbols for procedures * Consultation procedure *** Consent procedure ***I Ordinary legislative procedure (first reading) ***II Ordinary legislative procedure (second reading) ***III Ordinary legislative procedure (third reading) (The type of procedure depends on the legal basis proposed by the draft act.) Amendments to a draft act Amendments by Parliament set out in two columns Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column. The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend. Amendments by Parliament in the form of a consolidated text New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced. By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted. PE646.753v02-00 2/146 RR\1204899EN.docx EN CONTENTS Page DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION .................................5 EXPLANATORY STATEMENT ............................................................................................87 LETTER FROM THE COMMITTEE ON BUDGETS............................................................90 OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT................................93 PROCEDURE – COMMITTEE RESPONSIBLE .................................................................147 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE ..................................148 RR\1204899EN.docx 3/146 PE646.753v02-00 EN PE646.753v02-00 4/146 RR\1204899EN.docx EN DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION on the proposal for a regulation of the European Parliament and of the Council laying down certain 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 and amending Regulations (EU) No 228/2013, (EU) No 229/2013 and (EU) No 1308/2013 as regards resources and their distribution in respect of the year 2021 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards their resources and application in the year 2021 (COM(2019)0581 – C9-0162/2019 – 2019/0254(COD)) (Ordinary legislative procedure: first reading) The European Parliament, – having regard to the Commission proposal to Parliament and the Council (COM(2019)0581), – having regard to Article 294(2) and Article 43(2) and Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0162/2019), – having regard to Article 294(3) of the Treaty on the Functioning of the European Union, – having regard to the opinion of the European Economic and Social Committee of …1, – having regard to the opinion of the Committee of the Regions of ... 2, – having regard to the opinion of the Court of Auditors of 26 February 20203, – having regard to Rule 59 of its Rules of Procedure, – having regard to the opinion of the Committee on Regional Development, – having regard to the letter from the Committee on Budgets, – having regard to the report of the Committee on Agriculture and Rural Development (A9-0101/2020), 1. Adopts its position at first reading hereinafter set out; 2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; 3. Instructs its President to forward its position to the Council, the Commission and the 1 OJ C …/ Not yet published in the Official Journal. 2 OJ C ... / Not yet published in the Official Journal. 3 OJ C 109, 1.4.2020, p. 1. RR\1204899EN.docx 5/146 PE646.753v02-00 EN national parliaments. Amendment 1 Proposal for a regulation Recital 2 Text proposed by the Commission Amendment (2) The Commission proposed to link (2) The Commission proposed to link the CAP to the delivery of performance the CAP to the delivery of performance (‘delivery model’). Under the new legal (‘delivery model’). Under the new legal framework, the Union is to set the basic framework, the Union is to set the policy policy parameters, such as objectives of the parameters, such as objectives of the CAP CAP and basic requirements, while and basic requirements. A strong Union Member States are to bear greater framework is essential to ensuring that responsibility as to how they meet the the CAP remains a common policy and to objectives and achieve targets. ensure a level playing field. Member Accordingly, Member States are to draw States are also to have a greater up CAP Strategic Plans, which are to be responsibility as regards how they meet approved by the Commission and the objectives and achieve targets. implemented by Member States. Accordingly, Member States are to draw up CAP Strategic Plans, based on an ex- ante analysis and an assessment of needs, which are to be approved by the Commission and implemented by Member States. Amendment 2 Proposal for a regulation Recital 2 a (new) Text proposed by the Commission Amendment (2a) With a view to the next reform of the CAP, and taking into account the new ambitions set out in the Commission’s Communication of 11 December 2019 on the European Green Deal (“the European Green Deal”), Member States should further promote agro-environmental and climate-related measures in force and any other tool that can help farmers in their efforts towards an ecological transition. PE646.753v02-00 6/146 RR\1204899EN.docx EN Amendment 3 Proposal for a regulation Recital 2 b (new) Text proposed by the Commission Amendment (2b) In its resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027 – Parliament’s position with a view to an agreement1a, the European Parliament took a position in favour of maintaining the financing of the CAP for the EU-27 at the level of the 2014-2020 budget in real terms, while budgeting the initial amount of the agricultural reserve, namely EUR 383 255 million in 2018 prices (EUR 431 946 million in current prices). The figures provided for in this Regulation should therefore be calculated on the basis of the figures agreed for the MFF 2021-2027 or, should that MFF not be adopted in time, on the basis of extended 2020 ceilings and provisions in accordance with Article 312(4) TFEU. __________________ 1a P8_TA(2018)0449. Amendment 4 Proposal for a regulation Recital 3 Text proposed by the Commission Amendment (3) The legislative procedure was not (3) The legislative procedure was not concluded in time to allow Member States concluded in time to allow Member States and the Commission to prepare all and the Commission to prepare all elements necessary to apply the new legal elements necessary to apply the new legal framework and the CAP Strategic Plans as framework and the CAP Strategic Plans as of 1 January 2021, as initially proposed by of 1 January 2021, as initially proposed by the Commission. the Commission. That delay creates uncertainty and risks for farmers and the entire agriculture sector. In order to alleviate that uncertainty, this Regulation should provide for the continued RR\1204899EN.docx 7/146 PE646.753v02-00 EN application of the current rules and uninterrupted payments to the farmers and other beneficiaries, and thus provide predictability and stability during the transitional period until the date of application of the new legal framework (“transitional period”). Amendment 5 Proposal for a regulation Recital 3 a (new) Text proposed by the Commission Amendment (3a) The continuity and predictability of the support to farmers through the CAP is essential for the stability of the agricultural sector, as well as for maintaining the vitality of rural areas and regions, and is contributing to environmental sustainability. Amendment 6 Proposal for a regulation Recital 4 Text proposed by the Commission Amendment (4) Therefore, in order to ensure that (4) Therefore, in order to ensure that support can be granted to farmers and other support can be granted to farmers and other beneficiaries from the European beneficiaries from the European Agricultural Guarantee Fund (EAGF) and Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural the European Agricultural Fund for Rural Development (EAFRD) in 2021, the Union Development (EAFRD) in 2021 and, should continue to grant such support for where applicable, in 2022, the Union one more year under the conditions of the should continue to grant such support for existing legal framework, which covers the one or, where applicable, two more years period 2014 to 2020. The existing legal under the conditions of the existing legal framework is laid down in particular in framework, which covers the period 2014 Regulations (EU) No 1303/20137 , (EU) to 2020.