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REPORT (COM(2024)0495 – C100148/2024 – 2024/0274(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2020/2220 as regards specific measures under the European Agricultural Fund for Rural Development (EAFRD) to provide additional assistance to Member States affected by natural disasters

A-10-2024-0026

Committee on Agriculture and Rural Development · Rapporteur: Veronika Vrecionová

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Parliament adopts its first-reading position on the proposed regulation amending Regulation (EU) 2020/2220 to provide additional EAFRD assistance to Member States affected by natural disasters since 1 January 2024, taking over the Commission proposal. The budgetary assessment notes the proposal is budget neutral in commitments but has implications, requests more information on payment profiles, and welcomes support for farmers, foresters and SMEs affected by disasters.

Committee position. The Committee on Agriculture and Rural Development, through its rapporteur, proposes that Parliament adopt its first-reading position taking over the Commission proposal, as reflected in the draft resolution.

Key points

  1. Parliament adopts its position at first reading, taking over the Commission proposal without amendments.
  2. The proposal aims to provide additional targeted assistance and flexibility to Member States affected by natural disasters occurring since 1 January 2024, helping farmers, forest holders and specific SMEs with liquidity, including lump sums up to EUR 42 000 per beneficiary.
  3. The budgetary assessment notes the proposal is overall budget neutral in commitments but observes budgetary implications.
  4. Parliament recalls its calls for more resources for the EU Solidarity Fund and administrative simplification for swift deployment of funds.
  5. Parliament criticises the use of previously planned funding as an emergency response tool but acknowledges the proposal as a pragmatic solution for rapid response.
  6. Flexibility measures are justified given slow take-up of rural development funds and implementation rates below 75 % on several lines.
  7. Parliament regrets the lack of a legislative financial statement and requests the Commission provide information on payment profile implications.
  8. Parliament welcomes financial support for farmers, foresters and SMEs affected by disasters, prioritising 'build back better' measures, and stresses additional support for subsistence agriculture and low-income farmers.
  9. A 100 % EU co-financing rate is justifiable for disaster relief, but affected stakeholders should be consulted for realistic support.
  10. Voluntary reduction of the non-regression threshold could lower expenditure against mainstreaming targets, but such flexibility is needed for reallocation.
  11. The measure also aims to prevent imminent de-commitments of 2021 and 2022 commitments, affecting the Cascade mechanism's de-commitment compartment.
  12. In the longer term, more genuine budgetary flexibility should allow transfers to a dedicated expenditure instrument for emergency response.

Who is affected

  • Member States affected by natural disasters since 1 January 2024, receiving additional EAFRD assistance.
  • Farmers, forest holders and specific small and medium-sized enterprises (SMEs) affected by natural disasters, eligible for liquidity support including lump sums.

Figures and deadlines

  • EUR 42 000 per beneficiary as the maximum lump sum payment.
  • Implementation rates of less than 75 % on several lines justify flexibility measures.

Legal basis: Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union