Legal provisions of COM(2019)580 - Amendment Reg 1306/2013 as regards financial discipline as from financial year 2021 and Reg 1307/2013 as regards flexibility between pillars in respect of calendar year 2020

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Article 1 - Amendments to Regulation (EU) No 1306/2013

Regulation (EU) No 1306/2013 is amended as follows:

(1)in Article 16, paragraph 1 is replaced by the following:

‘1.   The annual ceiling for EAGF expenditure shall be constituted by the maximum amounts set for it under Regulation (EU, Euratom) No 1311/2013 and under the Regulation to be adopted by the Council pursuant to Article 312(2) TFEU for the years 2021 to 2027.’;

(2)in Article 26, paragraph 1 is replaced by the following:

‘1.   In order to ensure that the annual ceilings referred to in Article 16 for the financing of the market-related expenditure and direct payments are respected, an adjustment rate for direct payments (“the adjustment rate”) shall be determined when the forecasts for the financing of the measures financed under that sub-ceiling for a given financial year indicate that the applicable annual ceilings will be exceeded.’.

Article 2 - Amendments to Regulation (EU) No 1307/2013

Regulation (EU) No 1307/2013 is amended as follows:

(1)in Article 14(2), the sixth subparagraph is replaced by the following:

‘By 8 February 2020, Member States may decide to make available for calendar year 2020 as direct payments an amount not higher than the amount set out in Annex VIa. As a result, the corresponding amount shall no longer be available for support financed under the EAFRD for financial year 2021. That decision shall be notified to the Commission by 8 February 2020 and shall set out the amount to be transferred.’;

(2)in Article 53, paragraph 6 is replaced by the following:

‘6.   Member States may, by 1 August of any given year, review their decision pursuant to this Chapter.

By 8 February 2020, Member States may also review their decision pursuant to this Chapter to the extent necessary to adjust to the decision on flexibility between pillars for calendar year 2020 taken in accordance with Article 14.

By means of a review pursuant to the first and second subparagraphs of this paragraph, Member States may decide with effect from the following year:

(a)to leave unchanged, increase or decrease the percentage fixed pursuant to paragraphs 1, 2 and 3, within the limits laid down therein where applicable, or to leave unchanged or decrease the percentage fixed pursuant to paragraph 4;

(b)to modify the conditions for granting the support;

(c)to cease granting the support under this Chapter.

Member States shall notify the Commission of any decision relating to a review pursuant to the first and second subparagraphs of this paragraph by the respective dates referred to in those subparagraphs. The notification of the decision relating to a review pursuant to the second subparagraph of this paragraph shall explain the link between the review and the decision on flexibility between pillars for calendar year 2020 taken in accordance with Article 14.’;

(3)Annex VIa, the text of which is set out in the Annex to this Regulation, is inserted.

Article 3

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.