Explanatory Memorandum to COM(2010)772 - Amendment of Council Regulation (EC) No 378/2007 as regards the rules for the implementation of voluntary modulation of direct payments under the common agricultural policy

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CONTEXT OF THE PROPOSAL

Alignment to the Treaty on the Functioning of the European Union (TFEU):

The Treaty on the Functioning of the European Union (the Treaty) makes a distinction between the powers delegated to the Commission to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of the legislative act as laid down in Article 290 i of the Treaty (delegated acts), and the powers conferred upon the Commission to adopt uniform conditions for implementing legally binding Union acts as laid down in Article 291 i of the Treaty (implementing acts).

In the case of delegated acts, the legislator delegates to the Commission the power to adopt quasi-legislative acts. In the case of implementing acts, the context is very different. Indeed, Member States are primarily responsible for the implementation of legally binding acts of the European Union. However, if the application of the legislative act requires uniform conditions for its implementation the Commission is authorised to adopt these acts.

The alignment exercise of Regulation (EC) No 378/2007 on new rules of the Treaty is based on a classification on the basis of the new philosophy of the current Commission implementing powers. The classification has shown that all powers conferred to the Commission by this regulation are to adopt implementing acts.

Following this exercise, a draft proposal for amendment of Regulation (EC) No 378/2007 has been prepared. The general principles, methods of calculation, regional application and the use of the modulated amounts are determined by the Legislator.

Member States are, in accordance with Article 291 of the Treaty, responsible for implementing the regime established by the Legislator. However, it seems necessary to ensure uniform implementation of the voluntary modulation scheme. Therefore, the Legislator gives the Commission powers to fix, in accordance with Article 291, paragraph 2 of the Treaty, the net amounts resulting from the voluntary modulation (Article 4(1)) and to adopt detailed rules on the integration of voluntary modulation in the rural development programming (Article 6(a)) and financial management of voluntary modulation (Article 6(b)).

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



- Consultation of interested parties

- Collection and use of expertise

There was no need for consultation of interested parties or for external expertise.

- Impact assessment

No need of impact assessment.

2.

LEGAL ELEMENTS OF THE PROPOSAL



- Summary of the proposed action

Identify the delegated and implementing powers of the Commission in Council Regulation (EC) No 378/2007 and establish the corresponding procedure for adoption of these acts.

- Legal basis

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

- Subsidiarity principle

The proposal complies with the subsidiarity principle.

- 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.

3.

BUDGETARY IMPLICATION



This measure does not involve any additional Union expenditure.