CAP financing post 2013
What are the changes to financing, management and monitoring?
The rules on financing, management and monitoring of the CAP have been collected in a single regulation. Many of the rules on financing and management of direct payments, market measures and rural development have been harmonised.
Unduly paid aid will be withdrawn and general principles established for all penalties imposed on beneficiaries who do not comply with conditions or obligations.
The names of CAP fund beneficiaries will be published in order to discourage improper conduct and at the same time give farmers a sense of responsibility when using the public funds they receive.
The crises reserve for responding to market disturbances will be funded through a reduction in direct payments. Unused funds will be reimbursed to farmers.
Changes to the budget and funding
Distribution between the two CAP pillars (in commitment appropriations) is as follows:
- pillar 1: 76.6% of the CAP budget, corresponding to 29% of the EU budget, or €312.74 billion
- pillar 2: 23.4% of the CAP budget, corresponding to 9% of the EU budget, or €95.58 billion
Financial discipline: If forecasts indicate that the yearly CAP budget ceiling will be exceeded, direct payments will be linearly cut (small farmers will be exempted). These linear cuts will finance the reserve for crises in the agricultural sector.