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— support to improve the economic, ecological and social functions of forests; — promoting the adaptation and development of all the Community’s rural areas: a residual scheme comprising a broad range of measures (land reparcelling, setting up of farm relief and farm management services, encouragement for tourist and craft activities, restoring agricultural production potential damaged by natural disasters, etc.) based on experience with the programmes implemented in the regions whose development is lagging behind or rural areas with conversion difficulties (former Structural Funds Objectives 1, 6 and 5b) and which did not fit into any of the other eight measures provided for under Regulation (EC) No 1257/1999. Under the new Structural Funds regulation ((EC) No 1260/1999 (OJ L 161, 26.6.1999)), the source of Community funding for rural development measures differed according to the territory concerned: — in Objective 1 areas they were integrated into the measures aiming to promote regional development, financed by the EAGGF Guidance Section; — in Objective 2 areas they accompanied the support measures, financed by the EAGGF Guarantee Section; and — in the remaining territory they were to be integrated into the planning for rural development schemes (except in the case of ‘accompanying measures’, which were financed by the EAGGF Guarantee Section throughout the Community). Mention should also be made of the Leader+ community initiative, financed by the EAGGF Guidance Section, which promoted the implementation of integrated local development strategies. It was decided by the Berlin European Council that the average maximum amount available each year for rural development and for accompanying measures in the period 2000–06 would be about EUR 4 300 million. E. The 2003 reform of the CAP: Regulation (EC) No 1783/2003 The reform passed in June 2003 (4.2.2) confirmed that rural development was one of the fundamental elements of the CAP. Consequently, the Council legislated to strengthen it by increasing the total amount of funding and extending the scope of the second pillar. — In addition to the specific sums allocated to rural development under Objective 2 of the economic and social cohesion policy, it was decided to transfer funds from the first pillar of the CAP to the second pillar by means of a progressive reduction (modulation) in direct payments to large farms (those receiving more than EUR 5 000 in direct payments). By applying a progressive rate of 3 % in 2005, 4 % in 2006 and 5 % from 2007 onwards, an additional overall amount of EUR 1 200 million was released as from 2007 and allocated to Member States to provide funding for new accompanying measures. — Irrespective of the modulation, the 2003 reform placed particular emphasis on the content of the second pillar by extending the scope of the instruments contained in Regulation (EC) No 1257/1999. Six categories of measures were therefore either introduced or improved within new Council Regulation (EC) No 1783/2003 (OJ L 270, 21.10.2003). They are listed below. a. Food quality The first measure envisaged relates to improving food quality, which is of course greatly encouraged by the European Union but did not previously benefit from any specific aid scheme. Farmers taking part in programmes to improve product quality and production processes will receive, provided certain guarantees are given to consumers, a ‘quality’ aid up to a maximum amount of EUR 3 000 per farm per year. Information and promotion campaigns by producers’ groups will be able to receive funding of up to 70 % of eligible costs. b. Compliance with standards It is possible to give temporary and progressively decreasing support to farmers to help them to adapt to the strict Community standards regarding the environment, public health, animal and plant health, animal welfare and safety in the workplace. This aid is payable for five years and will be subject to a maximum amount of EUR 10 000 per farm per year. c. Farm advisory service Farmers will be able to receive support at the rate of 80 % of the cost of this type of service, up to a maximum amount of EUR 1 500. d. Animal welfare Aid is granted to farmers who undertake to improve the welfare of their farm animals, beyond the level required by normal good farming practice, based on the additional costs and loss of earnings. This aid is subject to a maximum amount of EUR 500 per livestock unit per year. e. Areas with environmental restrictions Regulation (EC) No 1783/2003 makes provision for the allocation of aid to areas with environmental restrictions in the context of the Natura 2000 programme (4.2.10, Table III) for the protection of birds and their habitats. f. Young farmers There has been a substantial increase in both the amount of aid given to help young farmers enter the profession and the intensity of support. F. The financial and planning framework for rural development for the period 2007–13 The enlargement of the European Union in 2004 increased the diversity of circumstances in rural areas while enhancing the scale and intensity of rural development. The utilised agricultural area (UAA) of the 25 Member States has risen to 166
4 Common policies 2 Common agricultural policy 163 million ha (compared with 145 million ha for the EU-15). The number of farms has risen by more than a million with the 10 new countries, most of them operating on a semisubsistence basis. The number of farmers has also risen, by a total of 3 million (4.2.10, Table II). With a view to meeting these new challenges, and as part of the preparatory work on the new financial perspective for 2007–13, the European institutions established in 2005 a single fund for the second pillar of the CAP, the EAFRD (European Agricultural Fund for Rural Development), bringing together all the previous measures (Regulation (EC) No 1698/2005, OJ L 277, 21.10.2005) (4.2.6). In addition to the 2007–13 multiannual financial framework, Council Decision 2006/144/EC set out Community strategic guidelines for rural development in the new programming period (Decision 2006/144/EC, OJ L 55, 25.2.2006). These guidelines identify key actions for achieving the Community’s priorities, particularly as concerns the Gothenburg sustainable development objectives and the renewed Lisbon strategy for growth and employment established by the Gothenburg European Council (15 and 16 June 2001) and the Thessaloniki European Council (20 and 21 June 2003) respectively. Four new axes are set out: — improving the competitiveness of the agricultural and forestry sectors (axis 1); — improving the environment and countryside (axis 2); — improving the quality of life in rural areas and encouraging diversification of the rural economy (axis 3); — building local capacity for employment and diversification (axis 4 — Leader). Key actions for each axis are suggested to the Member States for their national or regional rural development programmes for 2007–13. In addition, the Council decision establishes some programming criteria. — When drawing up their national or regional strategy, the competent domestic authorities must adopt an integrated approach that makes appropriate use of spatial planning and maximises the synergy between and within the different axes. — Complementarity must likewise be ensured between the various Community instruments, promoting synergy between structural, employment and rural development policies. The national and regional rural development programmes for the period 2007–13 were approved by the Commission during the first half of 2008. Role of the European Parliament The European Parliament has always maintained that rural development policy should reinforce, supplement and adapt the CAP to protect the European agricultural model. In 2005 the EP welcomed the establishment of a single fund for rural development but it proposed a different financial distribution for the priority axes (T6-0215/2005 of 7 June 2005, OJ C 124, 25.5.2006). The Members stated in the same resolution that the desire to incorporate Natura 2000 into the new Regulation (EC) No 1698/2005, without earmarking additional funds, was highly problematical. They therefore called for the resources available for commitment under the EAFRD to be raised to EUR 95 750 million at 2004 prices for the new 2007–13 programming period (4.2.10, Table I). As far as the rural development policy strategic guidelines are concerned, the European Parliament approved the broad thrust of the Commission’s proposals but pointed out that more emphasis should be placed on the modernisation of the agricultural sector and the needs of young farmers (T6- 0062/2006 of 16 February 2006). g Albert Massot Marti August 2008 4.2.6. Financing of the CAP The CAP has traditionally been financed by a single fund, the EAGGF (European Agricultural Guidance and Guarantee Fund). The Guarantee Section was mainly used to finance market support measures and income aid whilst the Guidance Section financed measures involving structural improvements and rural development. The EAGGF was replaced on 1 January 2007 by the EAGF and the EAFRD. Legal basis Article 34 (3) of the Treaty establishing the European Community (EC) . Regulations (EC) No 1290/2005 (OJ L 209, 11.8.2005) and (EC) No 1698/2005 (OJ L 277, 21.10.2005). Development of the agricultural financial framework Since January 1962, the CAP has been implemented via the European Agricultural Guidance and Guarantee Fund (EAGGF). In 1964 this was split into two sections: the 167
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2009 EDITION The European Union at
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2009 Edition Fact
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Note to readers This 2009 edition o
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Contents 1 1.1. Historical evolutio
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5 Economic and monetary union 5.1.
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1 How the European Union works 1 Hi
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1 How the European Union works 2 Ma
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1 How the European Union works 3 Eu
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1 How the European Union works 4 De
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1 How the European Union works 5 Fi
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2 6 1 How the European Union works
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— entitlement to effective legal
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2.2. The citizens of the Union and
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of the internal market, in which it
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the EU-25 Member States to introduc
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2.4. Voting rights and eligibility
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of the Member State concerned, as t
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3 How the European Union 1 works 4
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— the elimination of physical fro
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3.2. The main freedoms of the inter
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EEC. Under this approach the guidin
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Certain advantages specific to Unio
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Page 124 and 125: 3.3. Rules of competition 3.3.1. Ge
Page 126 and 127: ceilings for all the undertakings c
Page 128 and 129: — It is to enable more effective
Page 130 and 131: emergencies. For this reason the EC
Page 132 and 133: On 7 May 1998, horizontal aid becam
Page 134 and 135: The regimes based on special and ex
Page 136 and 137: In its resolution of 14 January 200
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Page 140 and 141: — The aim is also to guarantee le
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Page 144 and 145: The committee proposed a range of r
Page 146 and 147: Implementation of the directive is
Page 148 and 149: 3.4.5. Intellectual, industrial and
Page 150 and 151: 4. Efforts to combat counterfeiting
Page 152 and 153: 4.7. Trans-European networks, 236 4
Page 154 and 155: — reform of State aid policy; —
Page 156 and 157: 4.2. Common agricultural policy 4.2
Page 158 and 159: and other committees (socioeconomic
Page 160 and 161: policy and aid); EUR 14 billion ear
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Page 164 and 165: 4.2.4. The first pillar of the CAP:
Page 166 and 167: existing coupled aid be eliminated
Page 170 and 171: Guarantee Section and the Guidance
Page 172 and 173: increase its impact on compulsory e
Page 174 and 175: As far as tariff quotas are concern
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Page 178 and 179: 4.2.9. The CAP and the Treaty of Li
Page 180 and 181: Union’s activity. It should be re
Page 182 and 183: Table III — Basic agri-environmen
Page 184 and 185: Table V — Trade in agricultural a
Page 186 and 187: funds (EDF) and headings in the EU
Page 188 and 189: — the implementation of internati
Page 190 and 191: management measures based on total
Page 192 and 193: the baselines, where Member States
Page 194 and 195: 4.4.3. Fisheries structural assista
Page 196 and 197: d. Fisheries partnership agreements
Page 198 and 199: with Norway represents more than 60
Page 200 and 201: 1. Cooperation between Member State
Page 202 and 203: The enlargement of 2004 caused an 8
Page 204 and 205: It also reformed the decision-makin
Page 206 and 207: 4.5.2. The European Regional Develo
Page 208 and 209: Parliament also succeeded in retain
Page 210 and 211: and their interoperability, road an
Page 212 and 213: Community financial assistance is p
Page 214 and 215: (COM(95) 961) dealt with the extern
Page 216 and 217: previously, transport between two M
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decide to provide public passenger
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1998 on the recognition of the dist
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4.6.4. Road traffic and safety prov
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4.6.5. Air transport: market access
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formation of global alliances. As w
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chances for new competitors, as wel
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components. Firstly, it proposes se
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country which call at Community por
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Memorandum of Understanding) if pre
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ecently focused on the promotion of
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In its resolution of 26 October 200
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European energy networks (TEN-E). T
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— demonstration that the project
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4.8. Industrial policy 4.8.1. Gener
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— The resolution of 13 June 2002
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Czech Republic held meetings with t
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the country’s leadership in the i
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which employs more than 2 million p
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4.8.5. The chemicals and pharmaceut
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completed by an ‘Inventory and co
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Following a broad consultation proc
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In October 2003 Parliament adopted
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provided that the scheduled duratio
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networks’ could provide an opport
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applications. By mid-2008 the Commi
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focus on the issues of information
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Directive 98/44/EC on the legal pro
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need to implement an EU strategy to
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(ex Articles 117 and 118) Member St
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With a view to enhancing the qualit
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4.9.2. The European Social Fund The
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The co-financing by the ESF may var
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— Recommendations: the Council ma
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4.9.4. Social security cover in oth
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— Expansion of the fields of soci
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health and safety. One of the corne
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the involvement of social partners
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Objectives The Community supports a
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protection of self-employed women d
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4.9.8. Anti-discrimination and soci
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social exclusion as an objective of
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4.10. Environment policy 4.10.1. En
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as LIFE, the ‘Urban’ programme,
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2. Public participation in decision
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problems. However, market forces ca
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defines the objectives for integrat
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achieved by disposing of waste at a
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incineration facility should be con
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C. Conservation and protection of t
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In November 2006, Parliament adopte
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2012, a reduction of around 25 % fr
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does not include any legal requirem
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(see below). In addition, halting t
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consequences of climate change, whi
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Environment and LIFE-Third countrie
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European Union’s ever increasing
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(COM(2006) 388) for a regulation to
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the Green Paper calls for the invol
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Furthermore, the EP felt that the s
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the scientific committees are now p
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warning or identified by a visual s
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4.11.3. Public health The Treaty of
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involve all Member States as well a
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c. Police and judicial cooperation
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4.12.2. Asylum and immigration poli
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concerning Member States’ measure
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The EP actively supports the introd
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action plans: one of general scope
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Operational Cooperation at the Exte
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in criminal matters, underlines the
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4.12.5. Police and customs cooperat
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organisation, a list of organisatio
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electricity and gas for all consume
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future of energy in the EU and part
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entered into force on 1 July 1987,
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detailed proposal. Projects are sel
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4.15. Small and medium-sized enterp
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considerable impact on the complian
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are needed to help organise and dev
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4.17. Culture and education 4.17.1.
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EC of 15 November 2006). The progra
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4.17.2. Youth policy Youth policy i
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c. Youth and media Youth protection
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multicultural communication through
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Article 151 makes it possible to su
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the Lisbon strategy. Promoting cult
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markets. A series of important merg
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Minors should be protected from the
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situation can only be improved by i
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final). The main significance of th
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administration, to facilitate impor
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Since the need for unanimity in Cou
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anomalies. Finally, Directive 2006/
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— a minimum standard rate of 15 %
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Commission then had not made any pr
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4.18.4. Taxation of energy Various
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discussions, which preceded the ado
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way of harmonisation would probably
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— During the transitional period
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5 Economic and monetary union 1 The
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5 Economic and monetary union 3 Eur
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5 Economic and monetary union 4 Coo
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5 Economic and monetary union 4 Coo
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5 Economic and monetary union 5 Fra
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5 Economic and monetary union 5 Fra
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6 1 How the European Union works 3
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B. The Maastricht Treaty (1992) The
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6.1.2. Defending human rights and d
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the EU-Africa strategic partnership
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— to strengthen the security of t
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confirmed the EU’s ability to con
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— 1.3 % to 11.2 % of exports; —
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Table 9 — Imports by economic are
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6.2.2. The European Union and the W
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4. 2002-03 Following the Doha Confe
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6.3. Framework for relations with c
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countries (the Czech Republic, Esto
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3. Other western Balkan countries T
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. The 10 new Member States that joi
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2. Monitoring the extension of Comm
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intended to be valid for three year
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Council meetings reiterated that th
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former Federal Republic of Yugoslav
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6.4.2. The Russian Federation A str
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etween the economies and societies
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Europe and central Asia in connecti
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Background A number of developments
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and dialogue on international issue
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— the Euro-Mediterranean Civil Fo
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individual State, i.e. not with the
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parallel with progress on political
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production and aircraft building (B
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2. Relations with the Rio Group and
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On 8 November 2006 the first of the
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and alternating between venues with
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Commission adopted a communication
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etween the EU and the countries of
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delivered through the UN and NGOs o
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(resolution of 23 October 2003). On
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c. A first-ever EU-ASEAN summit too
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3. Although not a participant of th
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6. Environment On the basis of the
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political framework has been redefi
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2007 GSP preferential imports (mill
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within 72 hours and up to EUR 10 mi
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As the institution for adopting the
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State is to accept the repatriation
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European Parliament Fact</s
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