Explanatory Memorandum to COM(2010)539 - Amendment of Council Regulation (EC) No 73/2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers

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1. Context of the proposal

- Grounds for and objectives of the proposal

To align The Commission implementing powers in Council Regulation (EC) No 73/2009 i to the differentiation between delegated and implementing powers of the Commission introduced by Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFUE).

- General context

Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFUE) distinguish two different types of Commission acts:

- Article 290 of the TFUE allows the legislator to delegate to the Commission the power to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act. Legal acts adopted by the Commission in this way are referred to in the terminology used by the Treaty as 'delegated acts' (Article 290(3)).

- Article 291 of the TFUE allows Member States to adopt all measures of national law necessary to implement legally binding Union acts. Those acts can confer implementing powers on the Commission where uniform conditions for implementing them are needed. Legal acts adopted by the Commission in this way are referred to in the terminology used by the Treaty as 'implementing acts' (Article 291(4))

- Existing provisions in the area of the proposal

Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFUE).

- Consistency with the other policies and objectives of the Union

Not applicable.

2. Consultation of interested parties and impact assessment

- Consultation of interested parties

- Collection and use of expertise

There was no need for consultation of interested parties or for external expertise since the proposal to align Council Regulation (EC) No 73/2009 to the Lisbon Treaty is an inter-institutional matter that will concern all Council Regulations. The amendments aiming at simplification are of limited scope and purely technical nature.

- Impact assessment

No need of impact assessment since the proposal to align Council Regulation (EC) No 73/2009 to the Lisbon Treaty is an inter-institutional matter that will concern all Council Regulations. The amendments aiming at simplification are of limited scope and purely technical nature.

1.

Legal elements of the proposal



- Summary of the proposed action

Identify the delegated and implementing powers of the Commission in Council Regulation (EC) No 73/2009 and establish the corresponding procedure for adoption of these acts.

Additionally, some elements of simplification in the area of cross-compliance are introduced. Moreover, the possibility for the Member States not to require the declaration of all the agricultural areas of their holding for farmers with a total area of the holding lower than 1 hectare is foreseen.

- Legal basis

Article 43 of the Treaty on the Functioning of the European Union.

- Subsidiarity principle

Agricultural policy is of shared competence between the EU and the Member States. This means that as long as the EU does not legislate in the sector Member States maintain their competence. As regards direct payments a community approach already exists, and it is justified to simplify the current rules.

- Proportionality principle

The proposal complies with the proportionality principle.

- Choice of instruments

Proposed instrument: Regulation of the European Parliament and of the Council.

Other means would not be adequate for the following reason: a Regulation must be amended by a Regulation.

2.

Budgetary implications



This measure does not involve any additional Community expenditure.

5. Additional information

- Simplification

The amendments concerning cross compliance represent an important simplification and contribute to ease the administrative burden for Member States.

It can be assumed that the proposed possibility for Member States to exempt farmers not applying for area-related payments and declaring only small areas (less than 1 hectare) from the requirement of an area declaration will mainly concern livestock producers without any eligible land to apply for area-related payments. The number of farmers which could be affected is difficult to foresee, but it can be assumed that it will be limited, keeping in mind the continued decoupling of livestock payments and transfer to area related payments. The amendment however represents a cut of the administrative burden for certain Member States.