                  29.1.2016

                  EN

                  Official Journal of the European Union

                  C 36/631

            P7_TA(2013)0087
      Financing, management and monitoring of the CAP (Decision on the opening of interinstitutional negotiations)
      European Parliament decision of 13 March 2013 on the opening of, and on the mandate for, interinstitutional negotiations on the proposal for a regulation of the European Parliament and of the Council on the financing, management and monitoring of the CAP (COM(2011)0628/2 — C7-0341/2011 — COM(2012)0551 — C7-0312/2012 — 2011/0288(COD) — 2013/2531(RSP))
      (2016/C 036/42)

         The European Parliament,

                  —

                  having regard to the proposal of the Committee on Agriculture and Rural Development,

                  —

                  having regard to Rules 70(2) and 70a of its Rules of Procedure,

            whereas the financial envelope specified in the legislative proposal is only an indication to the legislative authority and cannot be fixed until agreement is reached on the proposal for a regulation laying down the multiannual financial framework for the years 2014-2020;
      decides to open interinstitutional negotiations on the basis of the following mandate:

         MANDATE

         Amendment 1

         Proposal for a regulation

         Recital 1 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (1a)

                                    Cutting red tape is one of the key objectives and main requirements of the CAP reform. Realistic tolerance thresholds and de minimis limitations should be introduced and an appropriate balance should be struck between trust and scrutiny, in order to ensure that the future administrative burden on Member States and beneficiaries is kept to a reasonable level. As part of this process of cutting red tape, due account should be taken of the administrative and other costs of checks at all levels and the use of effective administrative and monitoring systems should be rewarded. The overriding objective should be to reduce administrative costs and to ensure that the administrative burden on farmers and administrators returns to a reasonable level.

         Amendment 2

         Proposal for a regulation

         Recital 3

                     Text proposed by the Commission

                     Amendment

                              (3)

                              In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of the accreditation of the paying agencies and coordinating bodies, the content of the Farm Advisory System, the measures to be financed by Union budget under public intervention and the valuation of the operations in connection with public intervention, the reductions and suspension of the reimbursements to the Member States, the compensation between expenditure and revenues under the Funds, the recovery of debts, the
                                    penalties
                                  applied to beneficiaries in case of non-compliance with the eligibility conditions, in respect of rules on securities, on the functioning of the integrated administration and control system, of the measures excluded from the scrutiny of transactions, the penalties applied under cross compliance, the rules on maintenance of permanent grassland, the rules on the operative event and the exchange rate to be used by the Member States not using the euro and in respect of the content of the common evaluation framework of the measures adopted under the CAP. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.

                              (3)

                              In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of the accreditation of the paying agencies and coordinating bodies, the content of the Farm Advisory System, the measures to be financed by Union budget under public intervention and the valuation of the operations in connection with public intervention, the reductions and suspension of the reimbursements to the Member States, the compensation between expenditure and revenues under the Funds, the recovery of debts, the
                                    administrative penalties
                                  applied to beneficiaries in case of non-compliance with the eligibility conditions, in respect of rules on securities, on the functioning of the integrated administration and control system, of the measures excluded from the scrutiny of transactions, the penalties applied under cross compliance, the rules on maintenance of permanent grassland
                                    and pasture
                                 , the rules on the operative event and the exchange rate to be used by the Member States not using the euro and in respect of the content of the common evaluation framework of the measures adopted under the CAP. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.
                                    Under to the second subparagraph of Article 287(4) TFEU, the Court of Auditors may deliver opinions at the request of either the European Parliament or of the Council on those delegated acts.

                     (The two amendments, replacing ‘penalty’ with ‘administrative penalty’ and ‘permanent grassland’ with ‘permanent grassland and pasture’, apply throughout the text; adopting them will necessitate corresponding changes throughout.)

         Amendment 3

         Proposal for a regulation

         Recital 5 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (5a)

                                    This Regulation should provide, where appropriate, for exemptions in cases of force majeure and in exceptional circumstances. In connection with agricultural regulations, the concept of force majeure should be interpreted in light of the case-law of the Court of Justice.

         Amendment 4

         Proposal for a regulation

         Recital 9 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (9a)

                                    The increasing requirements for certification bodies and paying agencies should not be coupled with a further increase in red tape in the Member States. Above all, those requirements should not be more stringent than international auditing standards. As regards the scope and content of the certification process, a balanced cost-benefit ratio should be maintained and any additional reporting requirements should bring clear added value.

         Amendment 5

         Proposal for a regulation

         Recital 10

                     Text proposed by the Commission

                     Amendment

                              (10)

                              In order to help beneficiaries to become more aware of the relationship between agricultural practices
                                    and
                                  management of farms on the one hand, and standards relating to the environment, climate change, good agricultural condition of land, food safety, public health, animal health, plant health and animal welfare on the other, it is necessary that Member States establish a comprehensive farm advisory system offering advice to beneficiaries. That farm advisory system should in any way not affect the obligation and responsibility of beneficiaries to respect those standards. Also a clear separation between advice and checks should be ensured by the Member States.

                              (10)

                              In order to help beneficiaries to become more aware of the relationship between agricultural practices, management
                                    and risk management
                                  of farms on the one hand, and standards relating to the environment, climate change, good agricultural condition of land, food safety, public health, animal health, plant health and animal welfare on the other, it is necessary that Member States establish a comprehensive farm advisory system offering advice to beneficiaries. That farm advisory system should in any way not affect the obligation and responsibility of beneficiaries to respect those standards. Also a clear separation between advice and checks should be ensured by the Member States.

         Amendment 6

         Proposal for a regulation

         Recital 11

                     Text proposed by the Commission

                     Amendment

                              (11)

                              The farm advisory system should cover at least the requirements and standards forming the scope of cross compliance. That system should also cover the requirements to be respected in relation to the agricultural practices beneficial for the climate and the environment for direct payments, as well as the maintenance of the agricultural area under Regulation (EU) No DP/xxx of the European Parliament and of the Council of xxx establishing rules for direct payment to farmers under support schemes within the framework of the common agricultural policy.
                                    That
                                  system should
                                    finally
                                  cover certain elements related to climate change mitigation and adaptation, biodiversity, protection of water, animal and plant disease notification and innovation as well as the sustainable development of the
                                    economical
                                  activity of
                                    the small
                                  farms.

                              (11)

                              The farm advisory system should cover at least the requirements and standards forming the scope of cross compliance
                                    at farm level
                                 . That system should also cover the requirements to be respected in relation to the agricultural practices beneficial for the climate and the environment for direct payments, as well as the maintenance of the agricultural area under Regulation (EU) No …/2013 [DP] of the European Parliament and of the Council of xxx establishing rules for direct payment to farmers under support schemes within the framework of the common agricultural policy.
                                    In addition, that
                                  system should cover certain elements related to climate change mitigation and adaptation, biodiversity, protection of water, animal and plant disease notification and innovation as well as the
                                    environmental performance and
                                  sustainable development of the
                                    economic
                                  activity of farms
                                    , including activities for farm modernisation, competitiveness building, sectoral integration innovation and market orientation, as well as the promotion and implementation of principles relating to accounting, entrepreneurship and the sustainable management of economic resources
                                 .
                                    Finally, Member States should be allowed to include in their system the promotion of conversions of farms and the diversification of their economic activity and the introduction of appropriate preventive actions to address natural disasters and animal and plant diseases, as well as advice on integrated pest management and use of non chemical alternatives.

         Amendment 7

         Proposal for a regulation

         Recital 12

                     Text proposed by the Commission

                     Amendment

                              (12)

                              Entry into the farm advisory system should be on a voluntary basis for beneficiaries. All beneficiaries, even if not receiving support under the CAP, should be allowed to participate in the system. However
                                    priority criteria may be set by the
                                  Member States. Due to the nature of the system, it is appropriate for the information obtained in the course of the advisory activity to be treated as confidential, except in case of serious infringements of Union or national law. In order to ensure the efficiency of the system, advisors should be suitably qualified and regularly trained.

                              (12)

                              Entry into the farm advisory system should be on a voluntary basis for beneficiaries. All beneficiaries, even if not receiving support under the CAP, should be allowed to participate in the system. However, Member States
                                    should be able to determine, on the basis of environmental, economic and social criteria, the categories of beneficiaries that have priority access to the farm advisory system
                                 . Due to the nature of the system, it is appropriate for the information obtained in the course of the advisory activity to be treated as confidential, except in case of serious infringements of Union or national law. In order to ensure the efficiency of the system, advisors should be suitably qualified and regularly trained.

         Amendment 8

         Proposal for a regulation

         Recital 13

                     Text proposed by the Commission

                     Amendment

                              (13)

                              The financial resources required to cover the expenditure effected by the accredited paying agencies in respect of the EAGF, are to be made available to the Member States by the Commission in the form of reimbursements against the booking of the expenditure effected by those agencies. Until such reimbursements, in the form of monthly payments, have been paid, financial resources are to be mobilised by the Member States in accordance with the needs of their accredited paying agencies.
                                    The
                                  personnel costs and the administrative costs of the Member States and the beneficiaries involved in the execution of the CAP should be borne by themselves.

                              (13)

                              The financial resources required to cover the expenditure effected by the accredited paying agencies in respect of the EAGF, are to be made available to the Member States by the Commission in the form of reimbursements against the booking of the expenditure effected by those agencies. Until such reimbursements, in the form of monthly payments, have been paid, financial resources are to be mobilised by the Member States in accordance with the needs of their accredited paying agencies.
                                    In order to improve the operational efficiency of the paying agencies, the
                                  personnel costs and the administrative costs of the Member States and the beneficiaries involved in the execution of the CAP should be borne by
                                    the agencies
                                  themselves.

         Amendment 9

         Proposal for a regulation

         Recital 14

                     Text proposed by the Commission

                     Amendment

                              (14)

                              The use of the agro-meteorological system and the acquisition and improvement of satellite images should provide the Commission with the means to manage the agricultural markets
                                    and
                                  to facilitate the monitoring of agricultural expenditure.

                              (14)

                              The use of the agro-meteorological system and the acquisition and improvement of satellite images should provide the Commission with the means to manage the agricultural markets, to facilitate the monitoring of agricultural expenditure
                                    and of the use of the resources upon which agriculture is dependent, including in respect of agro-forestry systems
                                 ,
                                    and to assess and to provide timely aid in the case of natural disasters
                                 .

         Amendment 10

         Proposal for a regulation

         Recital 23

                     Text proposed by the Commission

                     Amendment

                              (23)

                              The rural development programmes are financed from the Union budget on the basis of commitments in annual instalments. Member States should be able to draw on the Union funds provided for as soon as they begin the programmes. A suitably restricted prefinancing system ensuring a steady flow of funds so that payments to beneficiaries under the programmes are made at the appropriate time
                                    is
                                  therefore
                                    needed
                                 .

                              (23)

                              The rural development programmes are financed from the Union budget on the basis of commitments in annual instalments. Member States should be able to draw on the Union funds provided for as soon as they begin the programmes. A suitably restricted prefinancing system ensuring a steady flow of funds, so that payments to beneficiaries under the programmes are made at the appropriate time
                                    , should
                                  therefore
                                    be made a priority
                                 .

         Amendment 11

         Proposal for a regulation

         Recital 27

                     Text proposed by the Commission

                     Amendment

                              (27)

                              Sectoral agricultural legislation requires Member States to send information on the numbers of checks carried out and their outcome within specified deadlines. Those control statistics are used to determine the level of error at Member State level and, more generally, for the purposes of checking the management of the EAGF and the EAFRD. They are an important source for the Commission to satisfy itself as to the correct management of funds and are an essential element for the annual declaration of assurance. Given the vital nature of this statistical information and in order to ensure that Member States respect their obligation to send it in time, it is necessary to provide a deterrent to late provision of the data required in a manner proportionate to the extent of the data deficit. Therefore, provisions should be put in place whereby the Commission can suspend part of the monthly or interim payments for which the relevant statistical information has not been sent in time.

                              (27)

                              Sectoral agricultural legislation requires Member States to send information on the numbers of checks carried out and their outcome within specified deadlines. Those control statistics are used to determine the level of error at Member State level and, more generally, for the purposes of checking the management of the EAGF and the EAFRD. They are an important source for the Commission to satisfy itself as to the correct management of funds and are an essential element for the annual declaration of assurance. Given the vital nature of this statistical information and in order to ensure that Member States respect their obligation to send it in time, it is necessary to provide a
                                    proportionate
                                  deterrent to late provision of the data required in a manner proportionate to the extent of the data deficit. Therefore, provisions should be put in place whereby the Commission can suspend part of the monthly or interim payments for which the relevant statistical information has not been sent in time.
                                    However, such suspension should only be used where the delay places the annual budget discharge mechanism at risk, in accordance with the principle of proportionality
                                 .

         Amendment 12

         Proposal for a regulation

         Recital 30

                     Text proposed by the Commission

                     Amendment

                              (30)

                              The financing of measures and operations under the CAP will in part involve shared management. To ensure that Union funds are soundly managed, the Commission should perform checks on the management of the Funds by the Member State authorities responsible for making payments. It is appropriate to define the nature
                                    of the checks to be made by the Commission
                                 , to specify the terms of its responsibilities for implementing the budget and to clarify the Member States' cooperation obligations.

                              (30)

                              The financing of measures and operations under the CAP will in part involve shared management. To ensure that Union funds are soundly managed, the Commission should perform
                                    the necessary
                                  checks on the management of the Funds by the Member State authorities responsible for making payments. It is appropriate to define the
                                    general rules and principles to be followed by the Commission when carrying out checks, as well as their
                                  nature, to specify the terms of its responsibilities for implementing the budget and to clarify the Member States' cooperation obligations.

         Amendment 13

         Proposal for a regulation

         Recital 31

                     Text proposed by the Commission

                     Amendment

                              (31)

                              In order to allow the Commission to fulfil its obligation to check the existence and proper functioning of management and inspection systems for Union expenditure in the Member States, provision should be made
                                    , irrespective of the inspection carried out by Member States themselves
                                 , for checks by persons delegated by the Commission who should be able to request assistance from the Member States in their work.

                              (31)

                              In order to allow the Commission to fulfil its obligation to check the existence and proper functioning of management and inspection systems for Union expenditure in the Member States, provision should be made for checks by persons delegated by the Commission who should be able to request assistance from the Member States in their work.
                                    Such national provision should take into account the principle of proportionality, the level of confidence that exists as to the reliability of national control and management systems, and the overall effectiveness of the national controls in the checks that the Commission has carried out
                                 .

         Amendment 14

         Proposal for a regulation

         Recital 36

                     Text proposed by the Commission

                     Amendment

                              (36)

                              The recovery procedures used by the Member States may have the effect of delaying recovery for a number of years, with no guarantee that the outcome will actually be successful. The cost of implementing those procedures may also be out of proportion to the amounts which are or may be collected. Consequently, Member States should be permitted to halt recovery procedures in certain cases.

                              (36)

                              The recovery procedures used by the Member States may have the effect of delaying recovery for a number of years, with no guarantee that the outcome will actually be successful. The cost of implementing those procedures may also be out of proportion to the amounts which are or may be collected.
                                    The threshold for recovery of amounts unduly paid, including interest, is set very low and. recovery should only be undertaken when cost-effective.
                                  Consequently, Member States should be permitted to halt recovery procedures in certain cases.

         Amendment 15

         Proposal for a regulation

         Recital 37

                     Text proposed by the Commission

                     Amendment

                              (37)

                              In order to protect the financial interests of the Union budget, measures should be taken by Member States to satisfy themselves that transactions financed by the EAGF and the EAFRD are actually carried out and are executed correctly. Member States should also prevent, detect and deal effectively with any irregularities or non-compliance with obligations committed by beneficiaries. To this end, Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests should apply.

                              (37)

                              In order to protect the financial interests of the Union budget,
                                    proportionate
                                  measures should be taken by Member States to satisfy themselves that transactions financed by the EAGF and the EAFRD are actually carried out and are executed correctly. Member States should also prevent, detect and deal effectively with any irregularities or non-compliance with obligations committed by beneficiaries. To this end, Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests should apply.
                                    In order to ensure that the Union's policy priorities and objectives are consistent, risks to the environment and public health should be included in the scope of what is considered to present a risk to the general budget of the European Union, since the costs associated with these are externalised to other areas of public, including Union, spending. Minimising additional costs in other areas should ensure efficiency in public spending.

         Amendment 16

         Proposal for a regulation

         Recital 37 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (37a)

                                    In addition to Regulation (EC, Euratom) No 2988/95, more detailed provisions should be laid down in this Regulation dealing with irregularities in the field of the common agricultural policy. A beneficiary who receives aid without complying with the eligibility criteria or commitments for the grant of that aid should be considered to have wrongly obtained an advantage. Such advantages are to be withdrawn pursuant to Article 4 of Regulation (EC, Euratom) No 2988/95. In order to deter beneficiaries from non-compliance, administrative penalties within the meaning of Article 5 of Regulation (EC, Euratom) No 2988/95 should apply, in the form of reduction or exclusion from aid, in particular in situations where intentional irregularities or those caused by negligence are involved. Those administrative penalties may affect aid for which eligibility conditions or commitments have been met. However, it is important that, in the case of irregularities related to Title III of Chapter 2 of Regulation (EU) No …/2013 [DP], the sum of all withdrawals and reductions of aid should not exceed the payment referred to in that Chapter.

         Amendment 17

         Proposal for a regulation

         Recital 38

                     Text proposed by the Commission

                     Amendment

                              (38)

                              Provisions relating to general principles on checks, withdrawals, reductions or exclusions from payments and to the imposition of penalties are contained in various sectoral agricultural regulations. Those rules should be gathered in the same legal framework at a horizontal level. They should cover the obligations of the Member States as regards administrative and on-the-spot checks, the rules on the recovery, reduction and exclusions of aid. Rules on checks of obligations not necessarily linked to the payment of an aid should be laid down as well.

                              (38)

                              Provisions relating to general principles on checks, withdrawals, reductions or exclusions from payments and to the imposition of
                                    proportionate administrative
                                  penalties are contained in various sectoral agricultural regulations. Those rules should be gathered in the same legal framework at a horizontal level. They should cover the obligations of the Member States as regards administrative and on-the-spot checks
                                    including the general principles and criteria applicable
                                 , the rules on the recovery, reduction and exclusions of aid. Rules on checks of obligations not necessarily linked to the payment of an aid should be laid down as well.
                                    It is necessary to provide for a strong incentive for Member States to reduce the number of on-the-spot checks where the error rate is at an acceptable level, as well as for flexibility on the basis of the customary standards of the Member States or regions concerned, allowing for justified exceptions on agronomic, ecological or environmental grounds.

         Amendment 18

         Proposal for a regulation

         Recital 38 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (38a)

                                    A fair system of penalties for farmers who commit irregularities should rule out double penalties and the simultaneous application of administrative penalties under this Regulation or criminal penalties under criminal law, except in cases of fraud.

         Amendment 19

         Proposal for a regulation

         Recital 38 b (new)

                     Text proposed by the Commission

                     Amendment

                                    (38b)

                                    Administrative penalties, including the obligation to pay back any payments obtained by the farmer, should not be imposed on the basis of circumstances that are objectively beyond the farmer’s control, and particularly not of unforeseeable events.

         Amendment 20

         Proposal for a regulation

         Recital 41

                     Text proposed by the Commission

                     Amendment

                              (41)

                              The main elements of that integrated system and, in particular, the provisions concerning a computerised database, an identification system for agricultural parcels, aid applications or payment claims and a system for the identification and recording of payment entitlements should be maintained.

                              (41)

                              The main elements of that integrated system and, in particular, the provisions concerning a computerised database, an identification system for agricultural parcels, aid applications or payment claims and a system for the identification and recording of payment entitlements should be maintained.
                                    Member States should make appropriate use of technology when setting up these systems, with a view of reducing administrative burden and ensuring efficient and effective controls.

         Amendment 21

         Proposal for a regulation

         Recital 44

                     Text proposed by the Commission

                     Amendment

                              (44)

                              Under Regulation (EC) No 485/2008, Member States are to take the measures necessary to ensure effective protection of the financial interests of the Union budget, and particularly in order to check the genuineness and compliance of operations financed by the EAGF. In the interests of clarity and rationality, the relevant provisions should be integrated into the same act. Regulation (EC) No 485/2008 should therefore be repealed.

                              (44)

                              Under Regulation (EC) No 485/2008, Member States are to take the measures necessary to ensure effective protection of the financial interests of the Union budget, and particularly in order to check the genuineness and compliance of operations financed by the EAGF. In the interests of
                                    simplicity,
                                  clarity and rationality, the relevant provisions should be integrated into the same act. Regulation (EC) No 485/2008 should therefore be repealed.

         Amendment 22

         Proposal for a regulation

         Recital 50

                     Text proposed by the Commission

                     Amendment

                              (50)

                              Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/200125 , which was replaced by Regulation (EC) No 73/2009, established the principle that the full payment to beneficiaries of some supports under the CAP should be linked to compliance with rules relating to land management, agricultural production and agricultural activity. That principle was subsequently reflected in Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)26 and Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) 27. Under this so-called ‘cross compliance’ system Member States are to impose penalties in the form of reduction or exclusion of support received under the CAP in whole or in part.

                              (50)

                              Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/200125 , which was replaced by Regulation (EC) No 73/2009, established the principle that the full payment to beneficiaries of some supports under the CAP should be linked to compliance with rules relating to land management, agricultural production and agricultural activity. That principle was subsequently reflected in Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)26 and Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) 27. Under this so-called ‘cross compliance’ system Member States are to impose
                                    administrative
                                  penalties in the form of reduction or exclusion of support received under the CAP in whole or in part
                                    , in accordance with the principle of proportionality and taking into account the general criteria for the graduation of these penalties as defined in this Regulation
                                 .

         Amendment 23

         Proposal for a regulation

         Recital 53

                     Text proposed by the Commission

                     Amendment

                              (53)

                              Statutory management requirements need to be fully implemented by Member States in order to become operational at farm level and ensure the necessary equal treatment between farmers.

                              (53)

                              Statutory management requirements need to be fully implemented by Member States in order to become operational at farm level and ensure the necessary equal treatment between farmers.
                                    The Commission should issue guidelines on the interpretation of the rules on animal identification and registration for cross-compliance purposes, which should, where appropriate, provide for flexibility at farm level in order to strike the necessary balance between safeguarding the spirit of the legislation and applying proportionate administrative penalties only in the case of non-compliance directly and unequivocally attributable to the beneficiaries, in particular in respect of repeated failure of the technology in use.

         Amendment 24

         Proposal for a regulation

         Recital 54

                     Text proposed by the Commission

                     Amendment

                                    (54)

                                    As regards Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy the provisions will only be operational under cross compliance when all Member States will have fully implemented them in particular with clear obligations for farmers. According to the Directive the requirements at farm level will be applied at the latest by 1 January 2013.

                        deleted

         Amendment 26

         Proposal for a regulation

         Recital 56

                     Text proposed by the Commission

                     Amendment

                                    (56)

                                    According to Article 22 of Directive 2000/60/EC, Council Directive 80/68/EEC of 17 December 1979 on the protection of groundwater against pollution caused by certain dangerous substances shall be repealed on 23 December 2013. In order to maintain the rules under cross compliance related to protection of groundwater, it is appropriate, while awaiting the inclusion of Directive 2000/60/EC in cross compliance, to adjust the scope of cross-compliance and to define a standard of good agricultural and environmental condition encompassing the requirements of Articles 4 and 5 of the Directive 80/68/EEC.

                        deleted

         Amendment 27

         Proposal for a regulation

         Recital 57

                     Text proposed by the Commission

                     Amendment

                              (57)

                              The cross compliance system implies certain administrative constraints for both beneficiaries and national administrations since record keeping must be ensured, checks must be carried out and penalties have to be applied where necessary. Those penalties should be proportionate, effective and dissuasive. Such penalties should be without prejudice to other penalties laid down under other provisions of Union or national law. For the sake of consistency, it is appropriate to merge the relevant Union provisions into one single legal instrument. For farmers participating in the small farmers scheme referred to in Title V of Regulation (EU) No xxx/xxx[DP], the efforts to be made under the cross compliance system may be considered as exceeding the benefit of keeping those farmers under that system. For reasons of simplification, those farmers should therefore be exempted from cross compliance and in particular from its control system and from the risk of cross compliance penalties. However, that exemption should be without prejudice to the obligation to respect the applicable provisions of the sectoral legislation and to the possibility to be checked and to be imposed penalties under that legislation.

                              (57)

                              The cross compliance system implies certain administrative constraints for both beneficiaries and national administrations since record keeping must be ensured, checks must be carried out and penalties have to be applied where necessary. Those penalties should be proportionate, effective and dissuasive. Such penalties should be without prejudice to other penalties laid down under other provisions of Union or national law. For the sake of consistency, it is appropriate to merge the relevant Union provisions into one single legal instrument. For farmers participating in the small farmers scheme referred to in Title V of Regulation (EU) No …/2013[DP], the efforts to be made under the cross compliance system may be considered as exceeding the benefit of keeping those farmers under that system. For reasons of simplification, those farmers should therefore be exempted from cross compliance and in particular from its control system and from the risk of cross compliance penalties. However, that exemption should be without prejudice to the obligation to respect the applicable provisions of the sectoral legislation and to the possibility to be checked and to be imposed penalties under that legislation.
                                    Minor unintentional infringements associated with cross compliance inspections should not incur a penalty. Instead a warning should be issued and compliance monitored at a future inspection.

         Amendment 28

         Proposal for a regulation

         Recital 60

                     Text proposed by the Commission

                     Amendment

                              (60)

                              An effective implementation of cross compliance requires verification at beneficiaries' level that obligations are respected. Where a Member State decides to make use of the option not to apply a reduction or exclusion where the amount concerned is less than EUR 100, the competent control authority should, for a sample of beneficiaries in the following year, verify that the findings of the non-compliance concerned have been remedied.

                              (60)

                              An effective implementation of cross compliance requires verification at beneficiaries' level that obligations are respected. Where a Member State decides to make use of the option not to apply a reduction or exclusion where the amount concerned is less than EUR 100, the competent control authority should, for a sample of beneficiaries in the following year, verify that the findings of the non-compliance concerned have been remedied.
                                    Member States may also set up an early-warning system applicable to non-severe first non-compliances in order to achieve a better acceptance of the cross compliance system by farming communities and in order to better involve farmers in the implementation of the requirements. This system should include warning letters calling for remedial action by the beneficiary concerned followed, in the next year, by verification, by the Member State, of compliance.

         Amendment 29

         Proposal for a regulation

         Recital 68

                     Text proposed by the Commission

                     Amendment

                              (68)

                              Each measure under the CAP should be subject to monitoring and evaluation in order to improve its quality and demonstrate its achievements. In this context a list of indicators should be determined and the impact of the CAP policy assessed by the Commission in relation to policy objectives. The Commission should set up a framework for a common monitoring and evaluation ensuring among others that relevant data, including information from Member States is available on a timely manner. In so doing it should take into account the data needs and synergies between potential data sources. Moreover, the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A Budget for Europe 2020 — Part II stated that the climate related expenditure in the overall Union budget should increase to at least 20 %, with contribution from different policies. The Commission should therefore be able to assess the impact of the Union's support in the framework of the CAP to climate objectives.

                              (68)

                              Each measure under the CAP should be subject to monitoring and evaluation in order to improve its quality and demonstrate its achievements. In this context a list of indicators should be determined and the impact of the CAP policy assessed by the Commission in relation to policy objectives. The Commission should set up a framework for a common monitoring and evaluation ensuring among others that relevant data, including information from Member States is available on a timely manner. In so doing it should take into account the data needs and synergies between potential data sources
                                    , drawing, as far as possible, on existing data sources
                                 .
                                    In addition, the monitoring and evaluation framework should take account of and properly reflect the structure of the CAP, since the monitoring and evaluation framework for the second pillar cannot be applied to the first pillar, in particular because under the first pillar there is scope for generating synergies, given the comparably uniform nature of the measures. Proper account should be taken of this.
                                  Moreover, the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A Budget for Europe 2020 — Part II stated that the climate related expenditure in the overall Union budget should increase to at least 20 %, with contribution from different policies. The Commission should therefore be able to assess the impact of the Union's support in the framework of the CAP to climate objectives.

         Amendment 30

         Proposal for a regulation

         Recital 70c

                     Text proposed by the Commission

                     Amendment

                              (70c)

                              In its judgment, the Court did not contest the legitimacy of the objective of reinforcing public control of the use of the money from the EAGF and the EAFRD.
                                    This objective should be analysed in the light of the new financial management and control framework to be applied as from 1 January 2014. In the context of this framework, the controls by the national administrations cannot be exhaustive and, in particular, for almost all schemes only a limited part of the population can be checked on-the-spot. An increase of the minimum control rates beyond the levels currently applied would, in the present context, put additional financial and administrative burden on the national administrations and would not be cost-effective. Moreover, the new framework provides that, under certain conditions, Member States may reduce the number of on-the-spot checks. Against this background, the publication of the name of the beneficiaries of the agricultural funds reinforces the public control of the use of those funds and, therefore, is a useful addition to the existing management and control framework that is necessary to ensure an adequate level of protection of the Union's financial interest. The national authorities, while applying the new rules simplifying the administrative process of the implementation of Union funds and reducing the administrative costs, should be enabled to rely on the public control, notably through its preventive and deterrent effect against fraud and any misuse of the public funds, by discouraging individual beneficiaries from irregular behaviour.

                              (70c)

                              In its judgment, the Court did not contest the legitimacy of the objective of reinforcing public control of the use of the money from the EAGF and the EAFRD.

         Amendment 31

         Proposal for a regulation

         Recital 70d

                     Text proposed by the Commission

                     Amendment

                              (70d)

                              The objective of the public control of the use of the money from the EAGF and the EAFRD pursued with the publication of beneficiaries may be achieved only by ensuring a certain degree of information to be
                                    delivered
                                  to the knowledge of the public. That information should cover data on
                                    the identity of the beneficiary,
                                  the amount awarded and under which of the funds, the purpose and the nature of the measure concerned.
                                    The publication of that information should be made in such a way as to cause less interference with
                                  the beneficiaries
                                    ’ right
                                  to respect for their private life in general and to protection of their personal data in particular, rights recognised by Articles 7 and 8 of the Charter of Fundamental Rights of the European Union.

                              (70d)

                              The objective of the public control of the use of the money from the EAGF and the EAFRD pursued with the publication of beneficiaries may be achieved only by ensuring a certain degree of information to be
                                    brought
                                  to the knowledge of the public. That information should cover data on the amount awarded under each of the funds, the purpose and the nature of the measure concerned.
                                    In order to provide an accurate picture of the territorial distribution of CAP support, information on the location of the holdings to which those measures apply should also be provided.
                                  The
                                    right of
                                  beneficiaries to respect for their private life in general and to protection of their personal data in particular, rights recognised by Articles 7 and 8 of the Charter of Fundamental Rights of the European Union
                                    , should be safeguarded
                                 .

         Amendment 32

         Proposal for a regulation

         Recital 70f

                     Text proposed by the Commission

                     Amendment

                                    (70f)

                                    In order to observe a balance between the pursued objective of the public control of the use of the money from the EAGF and the EAFRD on the one hand and the beneficiaries’ right to respect for their private life in general and to protection of their personal data on the other hand, the importance of the aid should be taken into account. Following the extensive analysis and the consultation with the stakeholders it appeared that in order to reinforce the effectiveness of such publication and to limit the interference with the beneficiaries' rights, a threshold should be set up as regards the amount of aid received below which the name of the beneficiary should not be published.

                        deleted

         Amendment 33

         Proposal for a regulation

         Recital 70 g

                     Text proposed by the Commission

                     Amendment

                                    (70 g)

                                    The threshold should reflect and be based on the level of the support schemes set up within the framework of the CAP. As the structures of the Member States' agricultural economies vary considerably and may differ significantly from the average Union farm structure, the application of different minimum thresholds that reflect the particular situation of the Member States should be allowed. Regulation xxx/xxx [DP] sets out a simple and specific scheme for small farms. Article 49 of that Regulation lays down criteria for calculating the amount of aid. For reasons of consistency, those criteria should also be used for fixing specific thresholds per Member State for the publication of the name of a beneficiary. Except for the name, below that specific threshold the publication should contain all the relevant information in order to allow the taxpayers to have an accurate image of the CAP.

                        deleted

         Amendment 34

         Proposal for a regulation

         Recital 70h

                     Text proposed by the Commission

                     Amendment

                              (70h)

                              In addition, making this information accessible to the public enhances transparency regarding the use of Union funds in the CAP, thus contributing to the visibility and better understanding of that policy. It enables citizens to participate more closely in the decision-making process and guarantees that the administration enjoys greater legitimacy and is more effective and more accountable to the citizen. It would also help local people to witness concrete examples of the provision of ‘public goods’ by farming and underpin the legitimacy of state support for the agricultural sector. Furthermore, the personal accountability of the farmers for use of the public funds received will be reinforced.

                              (70h)

                              In addition, making this information accessible to the public enhances transparency regarding the use of Union funds in the CAP, thus contributing to the visibility and better understanding of that policy.
                                    Similar rules should also apply to beneficiaries of funding from other Union funds (ERFD, ESF and EFF) so that this objective can also be achieved in other fields of Union policy.
                                  It enables citizens to participate more closely in the decision-making process and guarantees that the administration enjoys greater legitimacy and is more effective and more accountable to the citizen. It would also help local people to witness concrete examples of the provision of ‘public goods’ by farming and underpin the legitimacy of state support for the agricultural sector. Furthermore, the personal accountability of the farmers for use of the public funds received will be reinforced.

         Amendment 35

         Proposal for a regulation

         Article 2 — paragraph 1 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   The definitions of ‘farmer’, ‘agricultural activity’, ‘agricultural area’
                        , ‘holding’
                      laid down in Article 4 of Regulation (EU) xxx/xxx[DP] shall apply for the purposes of this Regulation
                        , save as otherwise provided for in this Regulation
                     .

                  1.   The definitions of ‘farmer’, ‘agricultural activity’
                        and
                     ‘agricultural area’ laid down in Article 4 of Regulation (EU) …/2013[DP] shall apply for the purposes of this Regulation.

         Amendment 36

         Proposal for a regulation

         Article 2 — paragraph 1 — subparagraph 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        Save for the purpose of Title VI, the definition of ‘holding’ laid down in Article 4 of Regulation (EU) …/2013[DP] shall apply for the purposes of this Regulation.

         Amendment 37

         Proposal for a regulation

         Article 2 — paragraph 1 — subparagraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        For the purposes of this Regulation, ‘sectoral agricultural legislation’ means any applicable act adopted on the basis of Article 43 TFEU within the framework of the CAP as well as, where applicable, any delegated acts or implementing acts adopted on the basis of those acts.

         Amendment 38

         Proposal for a regulation

         Article 2 — paragraph 2 — point e a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ea)

                                    a plant disease affecting part or all of the beneficiary's crops;

         Amendment 39

         Proposal for a regulation

         Article 2 — paragraph 2 — point f

                     Text proposed by the Commission

                     Amendment

                              (f)

                              expropriation of
                                    a large
                                  part of the holding if that could not have been anticipated on the day of lodging the application.

                              (f)

                              expropriation of
                                    all or
                                  part of the holding if that could not have been anticipated on the day of lodging the application
                                    , or repossession of the land by the owner
                                 .

         Amendment 40

         Proposal for a regulation

         Article 7 — paragraph 1 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   Paying agencies shall be
                        dedicated
                      departments or bodies of the Member States responsible for the management and control of expenditure referred to in Article 4(1) and Article 5.

                  1.   Paying agencies shall be departments or bodies of the Member States responsible for the management and control of
                        all
                      expenditure referred to in
                        both
                      Article 4(1) and Article 5.

         Amendment 41

         Proposal for a regulation

         Article 7 — paragraph 2 — subparagraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        The Commission shall, on a risk basis, review the documentary evidence provided by the Member States pursuant to Article 102 and assess the functioning of the systems in order to confirm that management and control bodies satisfy the conditions for national accreditation.

         Amendment 42

         Proposal for a regulation

         Article 7 — paragraph 3 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              a management declaration of assurance as to the completeness, accuracy and veracity of the accounts, the proper functioning of the internal control systems as well as to the legality and regularity of the underlying transactions
                                    and the respect of the principle of sound financial management;

                              (b)

                              a management declaration of assurance as to the completeness, accuracy and veracity of the accounts
                                    and
                                  the proper functioning of the internal control systems
                                    , based on measurable performance criteria,
                                  as well as to the legality and regularity of the underlying transactions;

         Amendment 43

         Proposal for a regulation

         Article 7 — paragraph 3 — point c

                     Text proposed by the Commission

                     Amendment

                              (c)

                              a summary of the results of all available audits and checks carried out, including an analysis of systematic
                                    or
                                  recurrent weaknesses as well as corrective actions taken or planned.

                              (c)

                              a summary of:

                                                (i)

                                          the results of all available audits and checks carried out, including an analysis of systematic
                                                and
                                              recurrent weaknesses as well as corrective actions taken or planned,

                                                (ii)

                                                the control statistics sent in accordance with Article 102(1)(c)(v), and

                                                (iii)

                                                other checks that are considered relevant
                                             .

         Amendment 44

         Proposal for a regulation

         Article 7 — paragraph 4 –– subparagraph 1 — introductory phrase

                     Text proposed by the Commission

                     Amendment

                  4.   Where more than one paying agency is accredited, the Member State shall
                        designate
                      a body, hereinafter referred to as the ‘coordinating body’, to which it assigns the following tasks:

                  4.   Where,
                        as a result of a Member State’s constitutional arrangements,
                      more than one paying agency is accredited, the Member State shall
                        select
                      a body, hereinafter referred to as the ‘coordinating body’, to which it assigns the following tasks:

         Amendment 45

         Proposal for a regulation

         Article 7 — paragraph 5

                     Text proposed by the Commission

                     Amendment

                  5.   Where an accredited paying agency does not meet or no longer meets one or more of the accreditation criteria referred to in paragraph 2, the Member State shall withdraw its accreditation unless the paying agency makes the necessary changes within a period to be determined according to the severity of the problem.

                  5.   Where an accredited paying agency does not meet or no longer meets one or more of the accreditation criteria referred to in paragraph 2, the Member State shall
                        , on its own initiative or at the request of the Commission,
                      withdraw its accreditation unless the paying agency makes the necessary changes within a period to be determined according to the severity of the problem.

         Amendment 46

         Proposal for a regulation

         Article 8 — paragraph 1 — point b a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ba)

                                    rules on the scope and work underlying the management declaration of the paying agencies;

         Amendment 47

         Proposal for a regulation

         Article 8 — paragraph 1 — point c a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ca)

                                    the obligations of the paying agencies as regards public intervention, as well as the content of their management and control responsibilities;

         Amendment 48

         Proposal for a regulation

         Article 8 — paragraph 2 — point a

                     Text proposed by the Commission

                     Amendment

                                    (a)

                                    the obligations of the paying agencies as regards public intervention, as well as on the content of their management and control responsibilities.

                        deleted

         Amendment 49

         Proposal for a regulation

         Article 9

                     Text proposed by the Commission

                     Amendment

                  1.   The certification body shall be a public or private audit body
                        designated
                      by the Member State
                        which
                      shall provide an opinion on
                        the management declaration of assurance covering
                      the completeness, accuracy and veracity of the annual accounts of the paying agency, the proper functioning of
                        its internal
                      control
                        system
                     , the legality and regularity of the underlying transactions,
                        as well as the respect of the principle of sound financial management
                     .

                  1.   The certification body shall be a public or private audit body
                        . Where it is a private audit body, it shall be selected
                      by the Member State
                        by means of a public tendering procedure. The certification body
                      shall provide an opinion
                        , drawn up in accordance with internationally accepted audit standards,
                      on the completeness, accuracy and veracity of the annual accounts of the paying agency
                        and
                      the proper functioning of
                        the
                      control
                        systems put in place as well as
                      the legality and regularity of the underlying transactions.
                        This opinion shall state, inter alia, whether the examination calls into question the assertions made in the management declaration of assurance referred to in Article 7(3)(b).

                  It shall be operationally independent from both the paying agency concerned and the authority which has accredited that agency.

                  It shall be operationally independent from both the paying agency concerned and the authority which has accredited that agency.

                  2.   The Commission shall
                        , by means of implementing
                      acts,
                        lay
                      down rules concerning the status of the certification bodies, the specific tasks, including the checks, which they
                        have
                      to carry out
                        as well as the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies
                     .
                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                  2.   The Commission shall
                        be empowered to adopt delegated
                      acts,
                        in accordance with Article 111, laying
                      down rules concerning the status of the certification bodies
                        and
                      the specific tasks, including the checks, which
                        shall be structured in the most efficient way, relying as far as possible on integrated samples with a view of minimising the administrative burden on farmers and Member States
                     .

                        The Commission shall adopt implementing acts, laying down rules concerning the certificates and reports to be drawn up by the certification bodies, together with the documents accompanying them. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

         Amendment 50

         Proposal for a regulation

         Article 12

                     Text proposed by the Commission

                     Amendment

                  1.   Member States shall establish a system of advising beneficiaries on land and farm management (
                        hereinafter referred to as the
                     ‘farm advisory system’) operated by one or more
                        designated
                      bodies. The
                        designated
                      bodies may be public or private.

                  1.   Member States shall establish a system of advising beneficiaries on land
                        management, farm management,
                      and farm
                        risk
                      management (‘farm advisory system’) operated by one or more
                        selected
                      bodies. The
                        selected
                      bodies may be public
                        and/
                     or private.

                  2.   The farm advisory system shall cover at least:

                  2.   The farm advisory system shall cover at least the following:

                              (a)

                              the statutory management requirements and the standards for good agricultural and environmental condition of land as laid down in Chapter I of Title VI;

                              (a)

                                    obligations at farm level deriving from
                                  the statutory management requirements and the standards for good agricultural and environmental condition of land as laid down in Chapter I of Title VI;

                              (b)

                              the agricultural practices beneficial for the climate and the environment as laid down in Chapter 2 of Title III of Regulation (EU) No xxx/xxx [DP] and the maintenance of the agricultural area as referred to in Article 4(1)(c) of Regulation (EU) No xxx/xxx [DP];

                              (b)

                              the agricultural practices beneficial for the climate and the environment laid down in Chapter 2 of Title III of Regulation (EU) No xxx/xxx [DP] and the maintenance of the agricultural area referred to in Article 4(1)(c) of Regulation (EU) No xxx/xxx [DP];

                              (c)

                              the requirements or actions related to climate change mitigation and adaptation, biodiversity, protection of water, animal and plant disease notification and innovation at minimum as laid down in Annex I to this Regulation;

                              (c)

                              the requirements or actions related to climate change mitigation and adaptation, biodiversity, protection of water, animal and plant disease notification and innovation at minimum as laid down in Annex I to this Regulation;

                                    (ca)

                                    the sustainable development of the economic activities of farms in accordance with measures provided for in rural development programmes, including those for farm modernisation, competitiveness building, sectoral integration, innovation and market orientation as well as the promotion and implementation of principles relating to accounting, entrepreneurship and the sustainable management of economic resources;

                              (d)

                              the sustainable development of the
                                    economical
                                  activity of
                                    the small
                                  farms as defined by the Member States
                                    and at least of the
                                  farms participating in the small farmers scheme referred to in Title V of Regulation (EU) No xxx/xxx[DP].

                              (d)

                              the
                                    environmental performance and
                                  sustainable development of the
                                    economic
                                  activity of farms as defined by the Member States
                                    , with priority being given to
                                  those participating in the small farmers scheme referred to in Title V of Regulation (EU) No …/2013[DP].

                  3.   The farm advisory system may also cover
                        in particular
                     :

                  3.   The farm advisory system may also cover
                        , inter alia, the following
                     :

                                    (a)

                                    the sustainable development of the economical activity of holdings other than those referred to in paragraph (2)(d);

                                    (aa)

                                    the promotion of conversions of farms and the diversification of their economic activity,

                                    (ab)

                                    risk management and the introduction of appropriate preventive actions to address natural disasters, catastrophic events and animal and plant diseases;

                                    (ac)

                                    advice on integrated pest management and on the use of non chemical alternatives.

                              (b)

                              the
                                    minimum
                                  requirements established by national legislation, as referred to in Article 29
                                    (3)
                                  and 30
                                    (2)
                                  of Regulation (EU) No xxx/xxx [RD]

                              (b)

                              the requirements established by national legislation, as referred to in Article 29 and 30 of Regulation (EU) No …/2013 [RD]

         Amendment 51

         Proposal for a regulation

         Article 13 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   Member States shall ensure that the advisors within the farm advisory system are suitably qualified and regularly
                        trained
                     .

                  1.   Member States shall ensure that the advisors within the farm advisory system are suitably qualified and regularly
                        undergo in-service training
                     .

         Amendment 52

         Proposal for a regulation

         Article 13 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                  3.   The
                        competent
                      national authority shall provide the beneficiary
                        , where appropriate by the use of electronic means,
                      with the appropriate list of
                        designated
                      bodies.

                  3.   The national authority shall provide the
                        potential
                      beneficiary with the appropriate list of
                        selected
                      bodies
                        primarily by electronic means
                     .

         Amendment 53

         Proposal for a regulation

         Article 14

                     Text proposed by the Commission

                     Amendment

                  Beneficiaries, whether or not they receive support under the common agricultural policy, including rural development, may use the farm advisory system on a voluntary basis.

                  Beneficiaries, whether or not they receive support under the common agricultural policy, including rural development, may use the farm advisory system on a voluntary basis.

                  However Member States may determine,
                        in accordance with objective
                      criteria, the categories of beneficiaries that have priority access to the farm advisory system.
                        Member States shall nevertheless ensure that priority is given to
                      farmers whose access to an advisory service other than the farm advisory system is most limited.

                  However Member States may determine,
                        based on environmental, economic and social
                      criteria, the categories of beneficiaries that are to have priority access to the farm advisory system
                        , which may include, inter alia
                     :

                                    (a)

                                    those
                                  farmers whose access to an advisory service other than the farm advisory system is most limited;

                                    (b)

                                    farmers participating in the measures intended to ensure carbon, nutrient and/or energy efficiency described in Chapter 2 of Title III of Regulation (EU) No …/2013[DP];

                                    (c)

                                    networks operating with limited resources within the meaning of Articles 53, 61 and 62 of Regulation (EU) (EU) No …/2013 [RD]
                                 .

                  The farm advisory system shall ensure that beneficiaries have access to advice reflecting the specific situation of their holding.

                  The farm advisory system shall ensure that beneficiaries have access to advice reflecting the specific situation of their holding.

         Amendment 54

         Proposal for a regulation

         Article 15 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                        2.

                        The Commission may, by means of implementing acts, adopt rules for the uniform implementation of the farm advisory system. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                        deleted

         Amendment 55

         Proposal for a regulation

         Article 16 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   In the event that the Union legislation provides for sums to be reduced from the amount referred to in paragraph 1, the Commission shall
                        , by means of implementing
                      acts,
                        set
                      the net balance available for EAGF expenditure on the basis of the data referred to in that legislation.

                  2.   In the event that the Union legislation provides for sums to be reduced from the amount referred to in paragraph 1, the Commission shall
                        be empowered to adopt delegated
                      acts
                        , in accordance with Article 111
                     ,
                        setting
                      the net balance available for EAGF expenditure on the basis of the data referred to in that legislation.

         Amendment 56

         Proposal for a regulation

         Article 22 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  The measures financed pursuant to point (c) of Article 6 shall aim to give the Commission the means to manage Union agricultural markets in a global context, to ensure agri-economic monitoring of agricultural land and of the condition of crops so as to enable estimates to be made
                        , in particular
                      as regards yields and agricultural production, to share the access to such estimates in an international context, such as initiatives coordinated by United Nations organisations or other international agencies, to contribute to transparency of world markets, and to ensure
                        technological
                      follow-up of the agri-meteorological system.

                  The measures financed pursuant to point (c) of Article 6 shall aim to give the Commission the means to manage Union agricultural markets in a global context, to ensure agri-economic
                        and agro-ecological
                      monitoring of agricultural
                        and forest
                      land and of the condition of
                        the agricultural resource base and
                      crops, so as to enable estimates to be made
                        ; for example
                      as regards yields
                        , resource efficiency
                      and
                        long-term
                      agricultural production, to share the access to such estimates in an international context, such as initiatives coordinated by United Nations organisations or other international agencies, to contribute to transparency of world markets, and to ensure follow-up of the agri-meteorological system.

         Amendment 57

         Proposal for a regulation

         Article 22 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  The measures financed pursuant to point (c) of Article 6 concern the collection or purchase of data needed to implement and monitor the common agricultural policy, including satellite data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions and the updating of agri-meteorological and econometric models. Where necessary, those measures shall be carried out in collaboration with national laboratories and bodies.

                  The measures financed pursuant to point (c) of Article 6 concern the collection or purchase of data needed to implement and monitor the common agricultural policy, including satellite data and meteorological data, the creation of a spatial data infrastructure and a website, the carrying out of specific studies on climatic conditions
                        , the monitoring of soil health
                      and
                        soil functionality and
                      the updating of agri-meteorological and econometric models. Where necessary, those measures shall be carried out in collaboration with national laboratories and bodies.

         Amendment 58

         Proposal for a regulation

         Article 25 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   The Council, acting on a proposal from the Commission presented no later than 31 March of the calendar year in respect of which the adjustment referred to in paragraph 1 applies, shall determine the adjustment no later than 30 June of the same calendar year.

                  2.   The
                        European Parliament and the
                      Council, acting on a proposal from the Commission presented no later than 31 March of the calendar year in respect of which the adjustment referred to in paragraph 1 applies, shall determine the adjustment no later than 30 June of the same calendar year.

         Amendment 59

         Proposal for a regulation

         Article 25 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                  3.   If by 30 June in any year the adjustment rate has not been set, the Commission shall set it by means of an implementing act and shall inform the Council immediately. Such implementing act shall be adopted in accordance with the advisory procedure referred to in Article 112(2).

                  3.   If by 30 June in any year the adjustment rate has not been set, the Commission shall set it by means of an implementing act and shall inform the
                        European Parliament and the
                      Council immediately. Such implementing act shall be adopted in accordance with the advisory procedure referred to in Article 112(2).

         Amendment 60

         Proposal for a regulation

         Article 25 — paragraph 4

                     Text proposed by the Commission

                     Amendment

                  4.   Until 1 December,
                        on a proposal by the Commission, on the basis of new information in its possession, the Council may adapt
                      the adjustment rate for direct payments set in accordance with paragraphs 2 or 3.

                  4.
                        If new material information becomes available after the adoption, on the basis of that information, of the decision referred to in paragraphs 2 and 3, the Commission may,
                      until 1 December,
                        without using either of the procedures referred to in Article 112(2) and (3), adopt implementing acts adapting
                      the adjustment rate for direct payments set in accordance with paragraphs 2 or 3.

         Amendment 61

         Proposal for a regulation

         Article 25 — paragraph 6

                     Text proposed by the Commission

                     Amendment

                  6.   Before
                        applying this Article, account shall first be taken of the amount authorised by the budget authority
                      for the Reserve for crises in the agricultural sector referred to in point 14 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management.

                  6.   Before
                        submitting the proposal referred to in paragraph 2, the Commission shall determine whether the conditions
                      for the
                        mobilisation of the
                      Reserve for crises in the agricultural sector referred to in point 14 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management
                        have been met, and, if they have, the Commission shall submit a proposal to that effect
                     .

         Amendment 62

         Proposal for a regulation

         Article 26 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   If, on drawing up the draft budget for financial year N, there appears to be a risk that the amount referred to in Article 16 for financial year N will be exceeded, the Commission shall propose to the European Parliament and the Council
                        or to the Council
                      the measures necessary to ensure compliance with that amount.

                  2.   If, on drawing up the draft budget for financial year N, there appears to be a risk that the amount referred to in Article 16 for financial year N will be exceeded, the Commission shall propose to the European Parliament and the Council the measures necessary to ensure compliance with that amount.

         Amendment 63

         Proposal for a regulation

         Article 26 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                  3.   At any time, if the Commission considers that there is a risk of the amount referred to in Article 16 being exceeded and that it cannot take adequate measures to remedy the situation under its powers, it shall propose other measures to ensure compliance with that amount. These measures shall be adopted
                        by the Council on the basis of Article 43(3) of the Treaty or
                      by the European Parliament and the Council on the basis of Article 43(2) of the Treaty.

                  3.   At any time, if the Commission considers that there is a risk of the amount referred to in Article 16 being exceeded and that it cannot take adequate measures to remedy the situation under its powers, it shall propose other measures to ensure compliance with that amount. These measures shall be adopted by the European Parliament and the Council on the basis of Article 43(2) of the Treaty.

         Amendments 195 and 202

         Proposal for a regulation

         Article 29

                     Text proposed by the Commission

                     Amendment

                        Without prejudice to the eligibility for support under Article 30(2) of Regulation (EU) No RD/xxx,
                      expenditure financed under the EAFRD shall not be subject of any other financing under the EU budget.

                  Expenditure financed under the EAFRD shall not be subject of any other financing under the EU budget.

         Amendment 65

         Proposal for a regulation

         Article 34 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   Following the Commission decision approving the programme, an initial prefinancing amount for the whole programming period shall be paid by the Commission. This initial pre-financing amount shall represent
                        4 %
                      of the EAFRD contribution to the programme concerned. It may be split into a maximum of three instalments depending on budget availability. The first instalment shall represent 2 % of the EAFRD contribution to the programme concerned.

                  1.   Following the decision of the Commission approving the
                        rural development
                      programme, an initial prefinancing amount for the whole programming period shall be paid by the Commission
                        to the Member State
                     . This initial pre-financing amount shall represent
                        7 %
                      of the EAFRD contribution to the programme concerned. It may be split into a maximum of three instalments depending on budget availability. The first instalment shall represent 2 % of the EAFRD contribution to the programme concerned.

         Amendment 66

         Proposal for a regulation

         Article 35 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   Interim payments shall be made for each rural development programme. They shall be calculated by applying the co-financing rate for each measure to the incurred public expenditure pertaining to it.

                  1.   Interim payments shall be made for each rural development programme. They shall be calculated by applying the co-financing rate for each measure to the incurred public expenditure pertaining to it
                        or to the total eligible expenditure, including public and private expenditure
                     .

         Amendment 67

         Proposal for a regulation

         Article 35 — paragraph 3 — point a

                     Text proposed by the Commission

                     Amendment

                              (a)

                              transmission to the Commission of a declaration of expenditure signed by the accredited paying agency, in accordance with Article 102(1)(c);

                              (a)

                              transmission to the Commission of a
                                    monthly
                                  declaration of expenditure signed by the accredited paying agency, in accordance with Article 102(1)(c);

         Amendment 68

         Proposal for a regulation

         Article 37 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   The Commission shall automatically decommit any portion of a budget commitment
                        for a rural development programme
                      that has not been used for the purpose of prefinancing or making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in Article 35(3) has been presented to it in relation to expenditure incurred by 31 December of the second year following that of the budget commitment.

                  1.   The Commission shall automatically decommit any portion of a
                        Member State’s
                      budget commitment that has not been used for the purpose of prefinancing or making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in Article 35(3) has been presented to it in relation to expenditure incurred by 31 December of the second year following that of the budget commitment.

         Amendment 69

         Proposal for a regulation

         Article 37 — paragraph 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        1a.

                        Member States which, because of their federal system of government, submit several rural development programmes, may offset amounts not used by 31 December of the second year following that of the budget commitment for one or more rural development programmes against amounts spent after that date under other rural development programmes. Should any amounts remain to be decommitted after such offsetting, they shall be charged, on a proportional basis, to the rural development programmes in respect of which underspends have been recorded.

         Amendment 70

         Proposal for a regulation

         Article 37 — paragraph 4 — subparagraph 1 — point b a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ba)

                                    that part of the budget commitments which concerns aid pursuant to points (b) and (c) of Article 37(1)of Regulation (EU) No …/2013[RD].

         Amendment 71

         Proposal for a regulation

         Article 38

                     Text proposed by the Commission

                     Amendment

                        Article 38

                        deleted

                        Budget Commitments

                        The Commission Decision adopting the list of the projects to which the Prize for innovative, local cooperation is awarded, as referred to in Article 58(4) of Regulation (EU) No RD/xxx shall constitute a financing decision within the meaning of Article [75(2)] of Regulation (EU) No FR/xxx.

                        Following the adoption of the Decision referred to in the first paragraph, the Commission shall made a budget commitment by Member State for the total amount of the prizes granted to projects in that Member State within the limit referred to in Article 51(2) of Regulation (EU) No RD/xxx.

         Amendment 72

         Proposal for a regulation

         Article 39

                     Text proposed by the Commission

                     Amendment

                        Article 39

                        deleted

                        Payments to the Member States

                        1.

                        Within the framework of the interim payments referred to in Article 35, the Commission shall make payments in order to reimburse the expenditure incurred by accredited paying agencies in awarding the Prizes referred to in this Section in the limits of the available budget commitments for the Member States concerned.

                        2.

                        Each payment shall be subject to the transmission to the Commission of a declaration of expenditure signed by the accredited paying agency, in accordance with Article 102(1)(c).

                        3.

                        Accredited paying agencies shall establish and forward, either directly or via the intermediary of the coordinating body, where one has been appointed, declarations of expenditure relating to the Prize for innovative, local cooperation to the Commission, within periods set by the Commission by means of implementing acts adopted in accordance with the examination procedure referred to in Article 112(3).

                        Declarations of expenditure shall cover expenditure that the paying agencies have incurred during each of the periods concerned.

         Amendment 73

         Proposal for a regulation

         Article 40

                     Text proposed by the Commission

                     Amendment

                        Article 40

                        deleted

                        Automatic decommitment for the Prize for innovative, local cooperation

                        The Commission shall automatically decommit the amounts referred to in the second subparagraph of Article 38 that have not been used for reimbursing the Member States as laid down in Article 39 or for which no declaration of expenditure meeting the conditions laid down in that Article has been presented to it in relation to expenditure incurred by 31 December of the second year following that of the budget commitment.

                        Article 37(3), (4) and (5) shall apply mutatis mutandis.

         Amendment 74

         Proposal for a regulation

         Article 42 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   Where the latest possible date of payment is not respected by the Member States, they shall pay the beneficiaries default interests
                        , supported from the national budget
                     .

                  2.   Where the latest possible date of payment is not respected by the Member States, they shall pay the beneficiaries default interests.
                        This paragraph shall not apply in cases where the payment delay is not the fault of the Member State concerned.

         Amendments 196, 197, 198 and 199

         Proposal for a regulation

         Article 43 — paragraph 2 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  2.   The Commission may, by way of implementing acts, reduce or suspend the monthly or interim payments to a Member State if
                        all
                      of the following conditions are met:

                  2.   The Commission may, by way of implementing acts, reduce or suspend the monthly or interim payments to a Member State if
                        one or more of the key components of the national control system in question do not exist or are not effective due to the gravity or persistence of the deficiencies found, or irregular payments are not being recovered with the necessary diligence and if one
                      of the following conditions are met:

                                    (a)

                                    one or more of the key components of the national control system in question do not exist or are not effective due to the gravity or persistence of the deficiencies found, or irregular payments are not being recovered with the necessary diligence;

                        deleted

                              (b)

                              the deficiencies referred to
                                    in point (a)
                                  are of a continuous nature and have been the reason for at least two implementing acts pursuant to Article 54, excluding from Union financing expenditure from the Member State concerned;
                                    and

                              (b)

                                    either
                                  the deficiencies referred to
                                    above
                                  are of a continuous nature and have been the reason for at least two implementing acts pursuant to Article 54, excluding from Union financing expenditure from the Member State concerned;
                                    or

                              (c)

                              the Commission concludes that the Member State concerned is not in a position to implement the necessary
                                    measures to remedy the situation in the immediate future
                                 .

                              (c)

                              the Commission concludes that the Member State concerned is not in a position to implement the necessary
                                    remedial measures in the immediate future, in accordance with an action plan with clear progress indicators, to be established in consultation with the Commission
                                 .

         Amendment 75

         Proposal for a regulation

         Article 44 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                        When
                      sectoral agricultural legislation requires Member States to submit, within a specific period of time, information on the
                        numbers
                      of checks carried out and their outcome and the Member States overrun that period, the Commission may suspend the monthly payments referred to in Article 18 or the interim payments referred to in Article 35 for which the relevant statistical information has not been sent in time.

                        Where
                      sectoral agricultural legislation requires Member States to submit, within a specific period of time, information on the
                        number
                      of checks carried out
                        under Article 61
                      and their outcome and
                        where
                      the Member States overrun that period, the Commission may suspend
                        the
                      monthly payments referred to in Article 18 or the interim payments referred to in Article 35 for which the relevant statistical information has not been sent in time
                        provided that the Commission has made available to the Member States in good time prior to the start of the reference period all the information, forms and explanations they need to compile the relevant statistics. In doing so, the Commission shall act in accordance with the principle of proportionality and the detailed rules it has adopted on the basis of Article 48(5), taking account of the extent of the delay. In particular, the Commission shall clearly distinguish between a situation where the late submission of information places the annual budget discharge mechanism at risk and a situation where such a risk does not exist. Before suspending the monthly payments the Commission shall notify in writing the Member State concerned.

         Amendment 76

         Proposal for a regulation

         Article 47 — paragraph 1 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                  It shall supply coherent, objective and comprehensive information, both inside and outside the Union, in order to give an overall picture of that policy.

                  It shall supply coherent, objective and comprehensive information, both inside and outside the Union, in order to give an
                        accurate
                      overall picture of that policy.

         Amendment 77

         Proposal for a regulation

         Article 48 — paragraph 6

                     Text proposed by the Commission

                     Amendment

                  6.   The Commission
                        may lay down, by means of implementing acts,
                      further details on the obligation laid down in Article 46 as well as the specific conditions applying to the information to be booked in the accounts kept by the paying agencies.
                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                  6.   The Commission
                        shall be empowered to adopt delegated acts, in accordance with Article 111, laying down
                      further details on the obligation laid down in Article 46 as well as the specific conditions applying to the information to be booked in the accounts kept by the paying agencies.

         Amendment 78

         Proposal for a regulation

         Article 48 — paragraph 6 a (new)

                     Text proposed by the Commission

                     Amendment

                        6a.

                        The Commission shall be empowered to adopt delegated acts, in accordance with Article 111, laying down further rules on the payment by the Member States of default interests to the beneficiaries as referred to in Article 42(2).

         Amendment 79

         Proposal for a regulation

         Article 48 — paragraph 7 — point c

                     Text proposed by the Commission

                     Amendment

                                    (c)

                                    rules on the payment by the Member States of default interests to the beneficiaries as referred to in Article 42(2).

                        deleted

         Amendment 80

         Proposal for a regulation

         Article 49 — paragraph 1 — subparagraph 1 — point c a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ca)

                                    whether a paying agency complies with the accreditation criteria laid down in Article 7(2) and whether the Member State correctly applies the provisions of Article 7(5);

         Amendment 81

         Proposal for a regulation

         Article 49 — paragraph 1 — subparagraph 1 — point c b (new)

                     Text proposed by the Commission

                     Amendment

                                    (cb)

                                    the work which the certification bodies are required to carry under Article 9;

         Amendment 82

         Proposal for a regulation

         Article 49 — paragraph 1 — subparagraph 1 — point c c (new)

                     Text proposed by the Commission

                     Amendment

                                    (cc)

                                    compliance with the obligations laid down in Article 56(1).

         Amendment 83

         Proposal for a regulation

         Article 49 — paragraph 2 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  2.   The Commission shall give sufficient prior notice of an on-the-spot check to the Member State concerned or the Member State within whose territory the check is to take place. Agents from the Member State concerned may take part in such checks.

                  2.   The Commission shall give sufficient prior notice of an on-the-spot check to the Member State concerned or the Member State within whose territory the check is to take place
                        and shall coordinate checks with a view to reducing any negative impact on paying agencies.
                      Agents from the Member State concerned may take part in such checks.

         Amendment 84

         Proposal for a regulation

         Article 50 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                  3.   Member States shall make available to the Commission all information about irregularities
                        and suspected fraud cases
                      detected, and about the steps taken to recover undue payments in connection with those irregularities and frauds pursuant to Section III of this Chapter.

                  3.   Member States shall make available to the Commission all information about irregularities detected and about the steps taken to recover undue payments in connection with those irregularities and frauds pursuant to Section III of this Chapter.

         Amendment 85

         Proposal for a regulation

         Article 51 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  The accredited paying agencies shall keep supporting documents relating to payments made and documents relating to the performance of the administrative and physical checks required by Union legislation, and shall make the documents and information available to the Commission.

                  The accredited paying agencies shall keep supporting documents relating to payments made and documents relating to the performance of the administrative and physical checks required by Union legislation, and shall make the documents and information available to the Commission.
                        Such supporting documents may be kept in electronic form.

         Amendment 86

         Proposal for a regulation

         Article 52 — paragraph 1 — introductory part

                     Text proposed by the Commission

                     Amendment

                  The Commission
                        may, by means of implementing acts, lay
                      down rules regarding:

                  The Commission
                        shall be empowered to adopt delegated acts, in accordance with Article 111, laying
                      down rules regarding:

         Amendment 87

         Proposal for a regulation

         Article 52 — paragraph 1 — point c a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ca)

                                    the conditions, under which the electronic storage of supporting documents referred to in the first subparagraph of Article 51 is to be performed, including its form and duration.

         Amendment 88

         Proposal for a regulation

         Article 52 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  The implementing acts provided for in the first paragraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                        deleted

         Amendment 89

         Proposal for a regulation

         Article 54 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature
                        and gravity
                      of the infringement and of the
                        financial damage caused
                      to the
                        Union
                     .

                  2.   The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature of the infringement and
                        it shall base the amounts excluded on an assessment
                      of the
                        risk
                      to the
                        agricultural funds stemming from the infringement
                     .

         Amendment 90

         Proposal for a regulation

         Article 54 — paragraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        2a.

                        The Commission shall base its financial corrections on individual cases of irregularity identified, or by taking account of the systemic nature of the irregularity to determine whether an extrapolated or flat rate correction should be applied.

                        Flat rate corrections shall only be applied where it is impossible, due to the nature of the case, to either identify the extent and amount of the irregularity found or to extrapolate the amount to be corrected

         Amendment 91

         Proposal for a regulation

         Article 54 — paragraph 3 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  3.   Before the adoption of any decision to refuse financing, the findings from the Commission's inspection and the Member State's replies shall be notified in writing, following which the two parties shall attempt to reach agreement on the action to be taken.

                  3.   Before the adoption of any decision to refuse financing, the findings from the Commission's inspection and the Member State's replies shall be notified in writing, following which the two parties shall attempt to reach agreement on the action to be taken.
                        In this context the Member States shall be given the opportunity to demonstrate, through an examination of the documentation concerned, that the actual extent of irregularity is less than the Commission's assessment.

         Amendment 92

         Proposal for a regulation

         Article 54 — paragraph 3 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                  If agreement is not reached, the Member State may request opening of a procedure aimed at reconciling each party's position within four months. A report of the outcome of the procedure shall be given to the Commission, which shall
                        examine it
                      before deciding on any refusal of financing.

                  If agreement is not reached, the Member State may request opening of a procedure aimed at reconciling each party's position within four months. A report of the outcome of the procedure shall be given to the Commission, which shall
                        take into account the report's recommendations
                      before deciding on any refusal of financing.
                        The Commission shall give reasons if it does not decide to follow the recommendations in the report.

         Amendment 93

         Proposal for a regulation

         Article 54 — paragraph 5 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              national aids
                                    or infringements
                                  for which the procedure laid down in Article 108 or Article 258 of the Treaty

                                    respectively has begun
                                 ;

                              (b)

                              national aids for which the procedure laid down in Article 108
                                    (2) TFEU has been initiated by the Commission
                                  or
                                    infringements which the Commission has notified to the Member State concerned by a letter of formal notice in accordance with
                                  Article 258 TFEU;

         Amendment 94

         Proposal for a regulation

         Article 55 — paragraph 1 — introductory part

                     Text proposed by the Commission

                     Amendment

                  The Commission shall
                        , by means of implementing
                      acts
                        , lay
                      down rules
                        for the implementation of
                     :

                  The Commission shall
                        be empowered to adopt delegated
                      acts,
                        in accordance with Article 111, laying
                      down
                        objectives for the various phases of the clearance of accounts procedure, the respective roles and responsibilities of the different parties involved as well as
                      rules
                        concerning
                     :

         Amendment 95

         Proposal for a regulation

         Article 55 — paragraph 1 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              the conformity clearance provided for in Article 54 with regard to the measures to be taken in connection with the adoption of the decision and its implementation, including the information exchange between the Commission and the Member States
                                    and
                                  the deadlines to be respected as well as the conciliation procedure provided for in that Article, including the establishment, tasks, composition and working arrangements of the conciliation body.

                              (b)

                              the conformity clearance provided for in Article 54 with regard to the measures to be taken in connection with the adoption of the decision and its implementation, including the information exchange between the Commission and the Member States, the
                                    rates of co-financing corrections to be applied, the
                                  deadlines to be respected as well as the conciliation procedure provided for in that Article, including the establishment, tasks, composition and working arrangements of the conciliation body.

         Amendment 96

         Proposal for a regulation

         Article 55 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                        The implementing acts provided for in the first paragraph shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                        deleted

         Amendment 97

         Proposal for a regulation

         Article 56 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   For any undue payment following the occurrence of irregularity or negligence, Member States shall request recovery from the beneficiary within one year
                        of the first indication that such
                      an
                        irregular has taken place and shall record the
                      corresponding amounts in the debtors' ledger of the paying agency.

                  1.   For any undue payment following the occurrence of irregularity or negligence, Member States shall request recovery from the beneficiary within one year
                        after the approval
                      and
                        , where applicable, reception, by
                      the
                        paying agency or body responsible for the recovery of a control report or similar document, stating
                      that an
                        irregularity
                      has taken place
                        . The
                      corresponding amounts
                        shall be recorded at the same time of the recovery request
                      in the debtors' ledger of the paying agency.

         Amendment 98

         Proposal for a regulation

         Article 56 — paragraph 2 — subparagraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        However, if, for reasons not attributable to the Member State concerned, it is not possible for recovery to take place within the time limit specified in the first subparagraph and if the amount to be recovered exceeds EUR 1 million, the Commission may, at the request of the Member State, extend the time limit by a period up to half of the original period.

         Amendment 99

         Proposal for a regulation

         Article 56 — paragraph 3 — subparagraph 1 — point a

                     Text proposed by the Commission

                     Amendment

                              (a)

                              if the costs already and likely to be incurred total more than the amount to be recovered, or

                              (a)

                              if the costs already and likely to be incurred total more than the amount to be recovered
                                    ; this condition shall be deemed to have been met if the amount to be recovered from the beneficiary in the context of a single payment does not exceed EUR 300;
                                  or

         Amendment 100

         Proposal for a regulation

         Article 57 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  When the Union budget is credited as referred in the first paragraph, the Member State may retain
                        10 %
                      of the corresponding amounts as flat rate recovery costs, except in cases of irregularity or negligence attributable to its administrative authorities or other official bodies.

                  When the Union budget is credited as referred in the first paragraph, the Member State may retain
                        20 %
                      of the corresponding amounts as flat rate recovery costs, except in cases of irregularity or negligence attributable to its administrative authorities or other official bodies.

         Amendment 101

         Proposal for a regulation

         Article 59

                     Text proposed by the Commission

                     Amendment

                  In order to ensure correct and efficient application of the provisions relating to recovery set out in this Section, the Commission shall be empowered to adopt delegated act in accordance with Article 111 concerning specific obligations to be complied with by the Member States.

                  In order to ensure correct and efficient application of the provisions relating to
                        the conditions and procedures for the
                      recovery
                        of debts and the default interest thereon
                      set out in this Section, the Commission shall be empowered to adopt delegated act in accordance with Article 111 concerning specific obligations to be complied with by the Member States.

         Amendment 102

         Proposal for a regulation

         Article 60 — paragraph 1 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                                    offer
                                  effective prevention against fraud, especially as regards the areas with a higher level of risk, and which shall act as a deterrent, having regard to the costs and benefits as well as the proportionality of the measures;

                              (b)

                                    ensure
                                  effective prevention against fraud, especially as regards the areas with a higher level of risk, and which shall act as a deterrent, having regard to the costs and benefits as well as the proportionality of the measures;

         Amendment 103

         Proposal for a regulation

         Article 60 — paragraph 1 — point e a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ea)

                                    prevent undue environmental and public health costs, especially to avoid funding of activities under the CAP which generate additional costs to other policy areas within the general budget of the European Union, especially the environment and public health.

         Amendment 104

         Proposal for a regulation

         Article 60 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   Member States shall set up efficient management and control systems in order to ensure compliance with the legislation governing Union support schemes.

                  2.   Member States shall set up efficient
                        , proportionate and risk-based
                      management and control systems in order to ensure compliance with the legislation governing Union support schemes.

         Amendment 105

         Proposal for a regulation

         Article 60 — paragraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        2a.

                        The introduction of new payment systems, which would in turn necessitate the introduction of new greening-related monitoring and penalty systems, is to be avoided as this would create a need for additional, complicated administrative procedures and more red tape.

         Amendment 106

         Proposal for a regulation

         Article 60 — paragraph 4 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  4.
                        The Commission may, by means of implementing acts, adopt rules aiming at reaching a uniform application
                      of paragraphs 1 and 2 of this Article.

                  4.
                        In order to ensure that the objectives
                      of paragraphs 1 and 2 of this Article
                        are achieved correctly and efficiently
                     ,
                        the Commission shall be empowered to adopt delegated acts, in accordance with Article 111, laying down specific obligations for the Member States.

         Amendment 107

         Proposal for a regulation

         Article 60 — paragraph 4 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                        deleted

         Amendment 108

         Proposal for a regulation

         Article 61

                     Text proposed by the Commission

                     Amendment

                        -1.

                        The Commission shall adopt delegated acts, in accordance with Article 111 regarding rules on the minimum level of on-the-spot checks necessary for an effective and proportionate management of risk. Those rules shall specify the circumstances in which Member States have to adjust the number of on-the-spot checks depending on the level of inherent risk, and shall provide for the possibility to reduce the number of checks where the error rates are at an acceptable level and the management and control systems in place work properly;

                  1.   The system set up by the Member States in accordance with Article 60(2) shall include, except where otherwise provided, systematic administrative checking of all aid applications and shall be supplemented by on-the-spot checks.

                  1.   The system set up by the Member States in accordance with Article 60(2) shall include, except where otherwise provided, systematic administrative checking of all aid applications and
                        payment claims
                      and shall be supplemented by on-the-spot checks
                        the purpose of which shall be to monitor compliance with the provisions of the aid schemes and the level of inherent risk and whose number shall be adjusted in light of that purpose
                     .

                  2.   As regards the on-the-spot checks, the authority responsible shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part and a risk-based part in order to obtain a representative error rate, while targeting also highest
                        errors
                     .

                  2.   As regards the on-the-spot checks, the authority responsible shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part and a risk-based part in order to obtain a representative error rate, while targeting also
                        the areas in which the risk of error is
                      highest.

                        To ensure that the checks are proportionate, account needs to be taken of factors including:

                              —

                                    the size of the sums involved;

                              —

                                    the outcome of earlier audits of the management and control systems;

                              —

                                    voluntary participation in management schemes certified on the basis of recognised international standards.

         Amendment 109

         Proposal for a regulation

         Article 64

                     Text proposed by the Commission

                     Amendment

                  1.   In order to ensure correct and efficient
                        application of the checks
                      and that the verification of the eligibility conditions is carried out in an efficient, coherent and non-discriminatory way which protects the financial interest of the Union, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 concerning
                        the situations where beneficiaries or their representatives prevent checks from being carried out.

                  1.   In order to ensure
                        that the application of the checks is
                      correct and efficient and that the verification of the eligibility conditions is carried out in an efficient, coherent and non-discriminatory way which protects the financial interest of the Union, the Commission shall be empowered to adopt delegated acts in accordance with Article 111, concerning,
                        in particular, the following:

                        2.

                        The Commission shall, by means of implementing acts, adopt the necessary rules aiming at reaching a uniform application of this Chapter in the Union. Those rules may, in particular, relate to the following:

                                    (-a)

                                    the rules concerning situations where beneficiaries or their representatives prevent checks from being carried out;

                              (a)

                              the rules concerning administrative and on-the-spot checks to be conducted by the Member States with regard to the respect of obligations, commitments and eligibility criteria resulting from the application of Union legislation;

                              (a)

                              the rules concerning administrative and on-the-spot checks to be conducted by the Member States
                                    in accordance with a proportionate and risk-based approach,
                                  with regard to the respect of obligations, commitments and eligibility criteria resulting from the application of Union legislation;

                                    (b)

                                    the rules on the minimum level of on-the-spot checks necessary for an effective management of the risks, as well as the conditions under which Member States have to increase such checks, or may reduce them where the management and control systems function properly and the error rates are at an acceptable level;

                              (c)

                              the rules and methods on the reporting of the checks and verification carried out and their results;

                              (c)

                              the rules and methods on the reporting of the checks and verification carried out and their results;

                              (d)

                              the authorities responsible for performing the checks for compliance as well as to the content, the frequency and the marketing stage to which those checks shall apply;

                              (d)

                                    rules on the designation of
                                  the authorities responsible for performing the checks for compliance as well as the content, the frequency and the marketing stage to which such checks shall apply;

                              (e)

                              where the
                                    specific needs for
                                  proper management of the system so require, rules introducing additional requirements with respect to customs procedures, in particular as laid down in Regulation (EC) No 450/2008 of the European Parliament and of the Council;

                              (e)

                              where the proper management of the system so requires, rules introducing additional requirements with respect to customs procedures, in particular as laid down in Regulation (EC) No 450/2008 of the European Parliament and of the Council;

                              (f)

                              with regard to hemp as referred to in Article 38 of Regulation (EU) No xxx/xxx [DP], rules on the specific control measures and methods for determining tetrahydrocannabinol levels;

                              (f)

                              with regard to hemp as referred to in Article 38 of Regulation (EU) No …/2013 [DP], rules on the specific control measures and methods for determining tetrahydrocannabinol levels;

                              (g)

                              with regard to cotton as referred to in Article 42 of Regulation (EU) No xxx/xxx [DP], a system for checks on the approved interbranch organisations;

                              (g)

                              with regard to cotton as referred to in Article 42 of Regulation (EU) No …/2013 [DP], a system for checks on the approved interbranch organisations;

                              (h)

                              with regard to wine as referred to in Regulation (EU) No sCMO/xxx, rules on the measurement of areas, as well as relating to checks and rules governing the specific financial procedures for the improvement of checks;

                              (h)

                              with regard to wine as referred to in Regulation (EU) No …/2013[sCMO], rules on the measurement of areas, as well as relating to checks and rules governing the specific financial procedures for the improvement of checks;

                              (i)

                              the tests and methods to be applied for establishing the eligibility of products for public intervention and private storage, as well as the use of tendering procedures, both
                                    for public intervention and for private storage
                                 .

                              (i)

                              the tests and methods to be applied for establishing the eligibility of products for public intervention and private storage, as well as the use of tendering procedures
                                    for
                                  both.

                        1a.

                        The Commission shall adopt implementing acts laying down time limits by which the Commission is to respond to an indication that the Member State intends to reduce the number of its on-the-spot checks.

                  The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3) or in the corresponding Article of Regulation (EU) No xxx/xxx[DP], Regulation (EU) No xxx/xxx[RD] or Regulation (EU) No xxx/xxx[sCMO] respectively.

                  The implementing acts provided for in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 112(3) or in the corresponding Article of Regulation (EU) No …/2013[DP], Regulation (EU) No …/2013[RD] or Regulation (EU) No …/2013[sCMO] respectively.

         Amendment 110

         Proposal for a regulation

         Article 65

                     Text proposed by the Commission

                     Amendment

                  1.   Where it is found that a beneficiary does not comply with the eligibility criteria
                        or the commitments relating to the conditions for granting the aid
                      as provided for in the sectoral agricultural legislation the aid shall be withdrawn in full
                        or in part.

                  1.   Where it is found that a beneficiary does not comply
                        , in whole or in part,
                      with the eligibility criteria
                        for a certain aid scheme,
                      as provided for in the sectoral agricultural legislation, the
                        corresponding part of the
                      aid shall be withdrawn in full.

                        In particular, in the case of non-compliance with eligibility criteria relating to countable units such as hectares of land or number of animals the aid shall be withdrawn in full for those units, for which the eligibility criteria are not fulfilled.

                        1a.

                        Where aid is linked to the fulfilment of specific commitments and it is found that a beneficiary does not comply with these commitments the corresponding aid shall be withdrawn in full or in part.

                  2.   Where
                        Union law
                      so provides, Member States shall also impose penalties
                        by way
                      of reductions or exclusions of the payment or part of the payment granted or to be granted in respect of which the eligibility criteria or the commitments have been met.

                  2.   Where
                        legislative acts within the meaning of Article 289(3) of the Treaty
                      so provide
                        - where relevant, subject to further details laid down in delegated acts-
                      Member States shall also impose
                        administrative
                      penalties
                        in the form
                      of reductions or exclusions of the payment or part of the payment granted or to be granted in respect of which the eligibility criteria or the commitments have been met.

                  The amount of the reduction of aid shall be graduated according to the severity, extent, duration and reoccurrence of the non compliance found and may go as far as total exclusion from one or several aid schemes or support measures
                        for one or more calendar years
                     .

                  The amounts
                        of the withdrawal referred to in paragraph 1a and
                      the
                        administrative penalties referred to in paragraph 2
                      shall be graduated according to the
                        nature,
                      severity, extent, duration, and reoccurrence of the non compliance found and may go as far as total exclusion
                        for one or more calendar years
                      from one or several aid schemes or support measures
                        that are the subject of the non compliance
                     .

                        2a.

                        The graduation of penalties shall be based on the following general criteria:

                              —

                                    the ‘severity’ of non-compliance shall depend, in particular, on the importance of the consequences of the non-compliance, in particular the risk it represents for the Union fund concerned, and consistently taking account of the aims of the requirement or standard concerned;

                              —

                                    the ‘extent’ of non-compliance shall be determined taking account, in particular, of whether the non-compliance has a far-reaching impact or whether it is limited to the farm itself;

                              —

                                    the ‘duration’ of non-compliance shall be determined by the competent authority taking account, in particular, of the estimated length of time for which the effect lasts or the potential for terminating those effects by reasonable means;

                              —

                                    ‘reoccurrence’ of non-compliance shall mean that the non-compliance with the same requirement, standard or obligation has been determined more than once within a consecutive period of three calendar years, provided the beneficiary has been informed of a previous non-compliance and, where applicable, has had the possibility to take the necessary measures to terminate that previous non-compliance;

                  3.   The amounts concerned by the withdrawal
                        referred to in paragraph 1
                      and by the penalties referred to in
                        paragraph 2
                      shall be recovered in full.

                  3.   The amounts concerned by the withdrawal and by the
                        administrative
                      penalties referred to in
                        the previous paragraphs
                      shall be recovered in full.

         Amendment 111

         Proposal for a regulation

         Article 65 a (new)

                     Text proposed by the Commission

                     Amendment

                        Article 65a

                        Withdrawals and reductions as regards payment for agricultural practices beneficial for the climate and the environment

                        Notwithstanding Article 65, the sum of the withdrawals and reductions applied in accordance with that Article as a result of non-compliance with the obligations referred to in Title III of Chapter 2 of Regulation …/2013[DP] shall not exceed the amount of the payment referred to in that Chapter.

         Amendment 112

         Proposal for a regulation

         Article 66 — paragraph 1 — point a

                     Text proposed by the Commission

                     Amendment

                              (a)

                              the suspension of the right to participate in an aid scheme, the exclusion and suspension of payment or a reduction rate of aids, payments or refunds
                                    or any other penalty, in particular
                                  in case time limits have not been respected, the product, size or quantity is not in conformity with the application, the evaluation of a scheme or the notification of information did not take place, is incorrect or is not notified on time;

                              (a)

                              the suspension of the right to participate in an aid scheme, the exclusion and suspension of payment or a reduction rate of aids, payments or refunds, in case time limits have not been respected, the product, size or quantity is not in conformity with the application, the evaluation of a scheme or the notification of information did not take place, is incorrect or is not notified on time;

         Amendment 113

         Proposal for a regulation

         Article 66 — paragraph 1 — point g

                     Text proposed by the Commission

                     Amendment

                              (g)

                              the withdrawal or suspension of an approval or a recognition,
                                    in particular
                                  when an operator, producer organisation, association of producer organisations, producer group or inter-branch organisation fails to respect or no longer meets the conditions required, including failure to make notifications;

                              (g)

                              the withdrawal or suspension of an approval or a recognition, when an operator, producer organisation, association of producer organisations, producer group or inter-branch organisation fails to respect or no longer meets the conditions required, including failure to make notifications;

         Amendment 114

         Proposal for a regulation

         Article 66 — paragraph 1 — subparagraph 1 — point i a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ia)

                                    the procedures and technical criteria related to the measures and penalties in points (a) to (i), where non-compliance with any of the obligations resulting from the application of the relevant legislation is found;

         Amendment 115

         Proposal for a regulation

         Article 66 — paragraph 2 — subparagraph 1 — point a

                     Text proposed by the Commission

                     Amendment

                                    (a)

                                    the procedures and technical criteria related to the measures and penalties referred to in paragraph 1 where non-compliance with any of the obligations resulting from the application of the relevant legislation is found;

                        deleted

         Amendment 116

         Proposal for a regulation

         Article 66 — paragraph 2 — subparagraph 1 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              the
                                    rules and
                                  procedures regarding the recovery of undue payments resulting from the application of the relevant legislation.

                              (b)

                              the procedures regarding the recovery of undue payments resulting from the application of the relevant legislation.

         Amendment 117

         Proposal for a regulation

         Article 68

                     Text proposed by the Commission

                     Amendment

                  1.   Each Member State shall set up and operate an integrated administration and control system (hereinafter referred to as the ‘integrated system’).

                  1.   Each Member State shall set up and operate an integrated administration and control system (hereinafter referred to as the ‘integrated system’).

                  2.   The integrated system shall apply to the support schemes listed in Annex I of Regulation (EU) No xxx/xxx [DP] and to the support granted in accordance with Articles 22(1)(a) and (b), 29 to 32, 34 and 35 of Regulation xxx/xxx [RD] and where applicable Article 28(1)(b) of regulation (EU) CR/xxx.

                  2.   The integrated system shall apply to the support schemes listed in Annex I of Regulation (EU) No …/2013 [DP] and to the support granted in accordance with Articles 22(1)(a) and (b), 29 to 32, 34 and 35 of Regulation …/2013 [RD] and where applicable Article 28(1)(b) of regulation (EU) …/2013[CR].

                  However, this Chapter shall not apply to measures referred to in Article 29(9) of Regulation (EU) No xxx/xxx[RD], as well as to measures under Article 22(1)(a) and (b) of that Regulation as far as the establishment cost is concerned.

                  However, this Chapter shall not apply to measures referred to in Article 29(9) of Regulation (EU) No …/2013[RD], as well as to measures under Article 22(1)(a) and (b) of that Regulation as far as the establishment cost is concerned.

                  3.   To the extent necessary, the integrated system shall also apply to the control of cross-compliance as laid down in Title VI.

                  3.   To the extent necessary, the integrated system shall also apply to the control of cross-compliance as laid down in Title VI.

                        3a.

                        Member States shall make appropriate use of technology when setting up their integrated system, in order to reduce administrative burdens and ensure that controls are carried out in an efficient and effective manner.

         Amendment 118

         Proposal for a regulation

         Article 70 — paragraph 1 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                  This database shall in particular allow consultation through the competent authority of the Member State, of the data relating to the calendar and/or marketing years, starting from 2000. It shall also allow direct and immediate consultation of the data relating to at least the previous five consecutive calendar years.

                  This database shall in particular allow consultation through the competent authority of the Member State, of the data relating to the calendar and/or marketing years, starting from 2000.
                        However, the Member States which acceded to the Union in 2004 shall only be required to ensure consultation of the data from 2004.
                      It shall also allow direct and immediate consultation of the data relating to at least the previous five consecutive calendar years.

         Amendment 119

         Proposal for a regulation

         Article 73 — paragraph 2 and 2a (new)

                     Text proposed by the Commission

                     Amendment

                  2.   Member States shall provide, inter alia by the use of electronic means, preestablished forms based on the areas determined in the previous year as well as graphic material indicating the location of those areas. A Member State may decide that the aid application needs to contain only changes with respect to the aid application submitted the previous year. However, as concerns the small farmers scheme as provided for in Title V of Regulation (EU) No DP/xxx this possibility shall be given to all farmers concerned.

                  2.   Member States shall provide, inter alia by the use of electronic means, preestablished forms based on the areas determined in the previous year as well as graphic material indicating the location of those areas. A Member State may decide that the aid application needs to contain only changes with respect to the aid application submitted the previous year. However, as concerns the small farmers scheme as provided for in Title V of Regulation (EU) No …/2013[DP]this possibility shall be given to all farmers concerned.

                        2a.

                        Member States may decide that an aid application or a payment claim that fulfils the requirements laid down in paragraph 1 is to remain valid for a number of years provided that the beneficiaries concerned are under an obligation to report any change to the information they first submitted. The multiannual application shall however be conditional upon annual confirmation by the beneficiary.

         Amendment 120

         Proposal for a regulation

         Article 75

                     Text proposed by the Commission

                     Amendment

                  1.   In accordance with Article 61, Member States, through the paying agencies or the bodies delegated by them, shall carry out administrative checks on the aid application to verify the eligibility conditions for the aid. Those checks shall be supplemented by on-the-spot checks.

                  1.   In accordance with Article 61, Member States, through the paying agencies or the bodies delegated by them, shall carry out administrative checks on the aid application to verify the eligibility conditions for the aid. Those checks shall be supplemented by on-the-spot checks
                        the purpose of which shall be to monitor compliance with the provisions of the aid schemes and the level of inherent risk
                     .

                  2.   For the purpose of on the spot checks Member States shall draw up a sampling plan of
                        agricultural holdings and/or
                      beneficiaries.

                  2.   For the purpose of on the spot checks Member States shall draw up a sampling plan of beneficiaries
                        comprising of both a random part, in order to obtain a representative error rate, and a risk-based part, enabling a primary focus on high-risk claims
                     .

                  3.   Member States may use remote sensing and Global Navigation Satellite System (GNSS) techniques as a means of carrying out on-the-spot checks on agricultural parcels.

                  3.   Member States may use remote sensing and Global Navigation Satellite System (GNSS) techniques as a means of carrying out on-the-spot checks on agricultural parcels.

                  4.   In case of non compliance with the eligibility conditions Article 65 shall apply.

                  4.   In case of non compliance with the eligibility conditions Article 65 shall apply.

         Amendment 121

         Proposal for a regulation

         Article 76

                     Text proposed by the Commission

                     Amendment

                  1.   The payments under the support schemes and measures referred to in Article 68(2) shall be made within the period from 1 December to 30 June of the following calendar year. Payments shall be made in up to two instalments within that period.

                  1.   The payments under the support schemes and measures referred to in Article 68(2) shall be made within the period from 1 December to 30 June of the following calendar year. Payments shall be made in up to two instalments within that period.

                  Payments shall be made in up to two instalments within that period.

                  Payments shall be made in up to two instalments within that period.

                  However Member States may pay advances up to 50 % as regards direct payments and 75 % for the support granted under rural development as referred to in Article 68(2) prior to 1 December and not before 16 October.

                  However Member States may pay advances up to 50 % as regards direct payments and 75 % for the support granted under rural development as referred to in Article 68(2) prior to 1 December and not before 16 October.

                        Without prejudice to the application of the third subparagraph, the Commission may adopt implementing acts authorising the Member States to increase the percentage of advances to 80 % in regions in which farmers face serious financial difficulties due to exceptional conditions. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                  2.   Payments referred to in the paragraph 1 shall not be made before the verification of eligibility conditions, to be carried out by the Member States pursuant to Article 75, has been finalised.

                  2.   Payments referred to in the paragraph 1 shall not be made before the verification of eligibility conditions, to be carried out by the Member States pursuant to Article 75, has been finalised.

                        2a.

                        By way of derogation from paragraph 2 of this Article, Member States may decide, taking into account the risk of overpayment, to pay up to 50 % of the applicable payment referred to in Title III of Regulation (EU) …/2013 [DP] and 75 % of the support granted under rural development as referred to in Article 68(2) after completion of the administrative checks provided for in Article 61(1). The percentage payment shall be the same for all beneficiaries of the measure or of the set of operations.

                        2b.

                        The Commission may, at the request of one or more Member State, under exceptional circumstances and where the necessary budgetary resources are available, authorise advances to be paid before 16 October.

         Amendment 122

         Proposal for a regulation

         Article 77 — paragraph 1 — point a a (new)

                     Text proposed by the Commission

                     Amendment

                                    (aa)

                                    rules on the use of technology when setting up the integrated system to ensure their optimisation;

         Amendment 123

         Proposal for a regulation

         Article 77 — paragraph 1 — point b a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ba)

                                    the basic features, definitions and quality requirements for the computerised database provided for in Article 70;

         Amendment 124

         Proposal for a regulation

         Article 77 — paragraph 1 — point b b (new)

                     Text proposed by the Commission

                     Amendment

                                    (bb)

                                    the basic features, definitions and quality requirements for the identification system for agricultural parcels, provided for in Article 71, and for the identification of the beneficiaries, provided for in Article 74;

         Amendment 125

         Proposal for a regulation

         Article 77 — paragraph 1 — point b c (new)

                     Text proposed by the Commission

                     Amendment

                                    (bc)

                                    the basic features, definitions and quality requirements for the system for the identification and registration of payment entitlements provided for in Article 72;

         Amendment 126

         Proposal for a regulation

         Article 77 — paragraph 1 — point b d (new)

                     Text proposed by the Commission

                     Amendment

                                    (bd)

                                    rules on the aid application and payments claims provided for in Article 73, and the application for payment entitlements, including the final date for submission of applications, the requirements as to the minimum amount of information to be included in the application, provisions for amendments to or the withdrawal of aid applications, exemption from the requirement to submit an aid application and provisions which allow Member States to apply simplified procedures or to correct obvious errors;

         Amendment 127

         Proposal for a regulation

         Article 77 — paragraph 1 — point b e (new)

                     Text proposed by the Commission

                     Amendment

                                    (be)

                                    rules on the carrying out of checks in order to verify compliance with obligations, and the correctness and completeness of the information provided in the aid application or payment claim;

         Amendment 128

         Proposal for a regulation

         Article 77 — paragraph 2 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              provisions required for a harmonised definition of the basis for calculation of aid, including rules on how to deal with certain cases where eligible areas contain landscape features or trees;

                              (b)

                              provisions required for a harmonised definition of the basis for calculation of aid, including rules on how to deal with certain cases where eligible areas contain landscape features or trees;
                                    without prejudice to Article 9 of Regulation (EU) No …/2013 [DP], eligibility rules shall be consistent with meeting the challenges of climate change and biodiversity loss, and shall not, therefore, penalise high nature value farming or grazed agro-forestry systems, or cause decreases in environmental quality; flexibility, justified on agronomic or ecological grounds, shall be allowed on the basis of the customary standards of the Member State or region concerned;

         Amendment 129

         Proposal for a regulation

         Article 77 — paragraph 3 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              provisions to ensure a harmonised and proportionate treatment of
                                    intentional
                                  irregularities, situations of minor errors, accumulation of reductions and simultaneous application of different reductions;

                              (b)

                              provisions to ensure a harmonised and proportionate treatment of
                                    severe
                                  irregularities, situations of minor errors, accumulation of reductions and simultaneous application of different reductions;

         Amendment 130

         Proposal for a regulation

         Article 78 — paragraph 1 — point a

                     Text proposed by the Commission

                     Amendment

                                    (a)

                                    the basic features, definitions and quality requirements for the computerised database provided for in Article 70;

                        deleted

         Amendment 131

         Proposal for a regulation

         Article 78 — paragraph 1 — point b

                     Text proposed by the Commission

                     Amendment

                                    (b)

                                    the basic features, definitions and quality requirements for the identification system for agricultural parcels provided for in Article 71 and for the identification of the beneficiaries as provided for in Article 74;

                        deleted

         Amendment 132

         Proposal for a regulation

         Article 78 — paragraph 1 — point c

                     Text proposed by the Commission

                     Amendment

                                    (c)

                                    the basic features, definitions and quality requirements for the system for the identification and registration of payment entitlements provided for in Article 72;

                        deleted

         Amendment 133

         Proposal for a regulation

         Article 78 — paragraph 1 — point d

                     Text proposed by the Commission

                     Amendment

                                    (d)

                                    rules on the aid application and payments claims provided for in Article 73, and the application for payment entitlements, including the final date for submission of applications, the requirements as to the minimum amount of information to be included in the application, provisions for amendments to or the withdrawal of aid applications, exemption from the requirement to submit an aid application and provisions which allow Member States to apply simplified procedures or to correct obvious errors;

                        deleted

         Amendment 134

         Proposal for a regulation

         Article 78 — paragraph 1 — point e

                     Text proposed by the Commission

                     Amendment

                                    (e)

                                    rules on the carrying out of checks in order to verify compliance with obligations, and the correctness and completeness of the information provided in the aid application or payment claim;

                        deleted

         Amendment 135

         Proposal for a regulation

         Article 78 — paragraph 1 — point f

                     Text proposed by the Commission

                     Amendment

                                    (f)

                                    technical definitions needed for the purpose of the uniform implementation of this Chapter;

                        deleted

         Amendment 136

         Proposal for a regulation

         Article 88 — paragraph 2 — subparagraph 1 — introductory part

                     Text proposed by the Commission

                     Amendment

                  2.   The Commission shall, where necessary, by means of implementing acts adopt the provisions aiming at reaching a uniform application of this
                        Regulation in the Union
                     , in particular relating to the following:

                  2.   The Commission shall, where necessary, by means of implementing acts adopt the provisions aiming at reaching a uniform application of this
                        Chapter
                     , in particular relating to the following:

         Amendment 137

         Proposal for a regulation

         Article 90 — paragraph 3 a (new)

                     Text proposed by the Commission

                     Amendment

                        (3a)

                        The Commission shall be empowered to adopt delegated acts, in accordance with Article 111, concerning the following:

                                    (a)

                                    the actions to be implemented by the Member States to prevent the unlawful use of protected designations of origin and protected geographical indications;

                                    (b)

                                    relevant checks and verification to be carried out by the Member States, including testing.

         Amendment 138

         Proposal for a regulation

         Article 90 — paragraph 4 — subparagraph 1 — point c

                     Text proposed by the Commission

                     Amendment

                                    (c)

                                    the actions to be implemented by the Member States to prevent the unlawful use of protected designations of origin and protected geographical indications;

                        deleted

         Amendment 139

         Proposal for a regulation

         Article 90 — paragraph 4 — subparagraph 1 — point d

                     Text proposed by the Commission

                     Amendment

                                    (d)

                                    checks and verification to be carried out by the Member States, including testing.

                        deleted

         Amendment 140

         Proposal for a regulation

         Article 91 — paragraph 2 — point a

                     Text proposed by the Commission

                     Amendment

                              (a)

                              the non-compliance is the result of an act or omission directly attributable to the beneficiary concerned;

                              a)

                              the non-compliance is the result of an act or omission directly
                                    and unequivocally
                                  attributable to the beneficiary concerned;

         Amendment 141

         Proposal for a regulation

         Article 91 — paragraph 2 — subparagraph 1 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              the non-compliance is related to the agricultural activity of the beneficiary;
                                    and

                              (b)

                              the non-compliance is related to the agricultural activity of the beneficiary;
                                    or

         Amendment 142

         Proposal for a regulation

         Article 93 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                        Directive 2000/60/EC of 23 October 2000 establishing a framework for Community action in the field of water policy will be considered as being part of Annex II once this Directive is implemented by all Member States and the obligations directly applicable to farmers have been identified. In order to take account of those elements the Commission shall be empowered to adopt delegated acts in accordance with Article 111 for the purpose of amending the Annex II within 12 months starting at the moment the last Member State has notified the implementation of the Directive to the Commission.

                        deleted

         Amendment 144

         Proposal for a regulation

         Article 93 — paragraph 5

                     Text proposed by the Commission

                     Amendment

                  In addition, as regards the years 2014 and 2015, the rules on cross compliance shall also comprise the maintenance of permanent grassland.
                        The
                      Member States which were Member
                        of the Union at
                     1 January 2004 shall ensure that land which was under permanent grassland at the date provided for the area aid applications for 2003 is maintained under permanent grassland within defined limits.
                        The
                      Member States which became
                        Member of the Union
                      in 2004 shall ensure that land which was under permanent grassland on 1 May 2004 is maintained under permanent grassland within defined limits. Bulgaria and Romania shall ensure that land which was under permanent grassland on 1 January 2007 is maintained under permanent grassland within defined limits.

                  In addition, as regards the years 2014 and 2015, the rules on cross compliance shall also include the maintenance of permanent grassland
                        and permanent pasture.
                      Member States which were
                        Member States before
                     1 January 2004 shall ensure that land which was under permanent grassland
                        and permanent pasture
                      at the date provided for the area aid applications for 2003 is maintained under permanent grassland
                        and permanent pasture
                      within defined limits. Member States which became
                        Member States
                      in 2004 shall ensure that land which was under permanent grassland
                        and permanent pasture
                      on 1 May 2004 is maintained under permanent grassland
                        and permanent pasture
                      within defined limits. Bulgaria and Romania shall ensure that land which was under permanent grassland
                        and permanent pasture
                      on 1 January 2007 is maintained under permanent grassland
                        and permanent pasture
                      within defined limits.

                        However, a Member State may, in duly justified circumstances, derogate from the first subparagraph, provided that it takes action to prevent a significant decrease in its total permanent grassland and permanent pasture area.

         Amendment 145

         Proposal for a regulation

         Article 93 — paragraph 8

                     Text proposed by the Commission

                     Amendment

                        Furthermore,
                      the Commission shall
                        , by means of implementing acts, adopt
                      the methods for the determination of the ratio of permanent grassland and agricultural land that has to be maintained.
                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                  The Commission shall
                        be empowered to adopt delegated acts, in accordance with Article 111, laying down
                      the methods for the determination of the ratio of permanent grassland and agricultural land that has to be maintained.

         Amendment 146

         Proposal for a regulation

         Article 94

                     Text proposed by the Commission

                     Amendment

                  Member States shall ensure that all agricultural area
                        , including land which is no longer used for production purposes,
                      is maintained in good agricultural and environmental condition. Member States shall define, at national or regional level, minimum standards for beneficiaries for good agricultural and environmental condition of land on the basis of Annex II, taking into account the specific characteristics of the areas concerned, including soil and climatic condition, existing farming systems, land use, crop rotation, farming practices, and farm structures. Member States shall not define minimum requirements which are not established in Annex II.

                  Member States shall ensure that all agricultural area is maintained in good agricultural and environmental condition. Member States shall define, at national or regional level, minimum standards for beneficiaries for good agricultural and environmental condition of land on the basis of Annex II, taking into account the specific characteristics of the areas concerned, including soil and climatic condition, existing farming systems, land use, crop rotation, farming practices, and farm structures. Member States shall not define minimum requirements which are not established in Annex II.

         Amendment 147

         Proposal for a regulation

         Article 96 — paragraph 1 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                  Member States may make use of their existing administration and control systems to ensure compliance with the rules on cross compliance.

                  Member States may make use of their existing administration and control systems to ensure compliance with the rules on cross compliance
                        and shall define a set of verifiable requirements and standards to be applied at farm level
                     .

         Amendment 148

         Proposal for a regulation

         Article 96 — paragraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        2a.

                        Checks of requirements, standards, acts or areas of cross compliance may take account of the following factors:

                              —

                                    farmers’ participation in the farm advisory system provided for in Title III of this Regulation;

                              —

                                    farmers’ participation in a certification system, if such system covers the requirements and standards concerned.

         Amendment 149

         Proposal for a regulation

         Article 96 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                  3.   Member States shall carry out on-the-spot checks to verify whether a beneficiary complies with the obligations laid down in this Title.

                  3.   Member States shall carry out on-the-spot checks to verify whether a beneficiary complies with the obligations laid down in this Title.
                        In doing so, Member States shall focus primarily on claims with the highest risks according to the principle of proportionality
                     .

         Amendment 150

         Proposal for a regulation

         Article 96 — paragraph 4 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  4.   The Commission shall
                        , by means of implementing
                      acts, adopt rules on the carrying out of checks in order to verify compliance with the obligations referred to in this Title.

                  4.   The Commission shall
                        be empowered to adopt delegated
                      acts
                        , in accordance with Article 111, laying down
                      rules on the carrying out of checks in order to verify compliance with the obligations referred to in this Title.

         Amendment 151

         Proposal for a regulation

         Article 96 — paragraph 4 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                        deleted

         Amendment 152

         Proposal for a regulation

         Article 97 — paragraph 1 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   The penalty provided for in Article 91 shall be applied when the rules on cross compliance are not complied with at any time in a given calendar year (hereinafter referred to as ‘the calendar year concerned’), and the non-compliance in question is attributable to the beneficiary who submitted the aid application or the payment claim in the calendar year concerned.

                  1.   The penalty provided for in Article 91 shall be applied when the rules on cross compliance are not complied with at any time in a given calendar year (hereinafter referred to as ‘the calendar year concerned’), and the non-compliance in question is
                        directly and unequivocally
                      attributable to the beneficiary who submitted the aid application or the payment claim in the calendar year concerned.

         Amendment 153

         Proposal for a regulation

         Article 97 — paragraph 3 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                        Where a Member State decides to make use of the option provided for in the first subparagraph, the competent authority shall, for a sample of beneficiaries, take in the following year the actions necessary to verify that the beneficiary has remedied the findings of non-compliance concerned. The finding and the obligation to take remedial action shall be notified to the beneficiary.

                        deleted

         Amendment 154

         Proposal for a regulation

         Article 99

                     Text proposed by the Commission

                     Amendment

                  1.   The penalty provided for in Article 91 shall be applied by means of reduction or exclusion of the total amount of the payments listed in Article 92 granted or to be granted to that beneficiary related to the calendar year concerned or the years concerned.

                  1.   The penalty provided for in Article 91 shall be applied by means of reduction or exclusion of the total amount of the payments listed in Article 92 granted or to be granted to that beneficiary related to the calendar year concerned or the years concerned.

                  For the calculation of those reductions and exclusions account shall be taken of the severity, extent, permanence and reoccurrence of the non-compliance found as well as of the criteria set out in paragraphs 2, 3 and 4.

                  For the calculation of those reductions and exclusions
                        proportionate
                      account shall be taken of the
                        nature,
                      severity, extent, duration and reoccurrence of the non-compliance found as well as of the criteria set out in paragraphs 2, 3 and 4.

                  2.   In the case of non compliance due to negligence, the percentage of reduction shall not exceed 5 % and, in the case of repeated non-compliance, 15 %.

                  2.   In the case of non-compliance due to negligence, the percentage of reduction shall not exceed 5 % and, in the case of repeated non-compliance,
                        shall not exceed
                      15 %.

                  In duly justified cases Member States may decide that no reduction
                        shall
                      be applied where, given its severity, extent and duration, a case of non-compliance
                        is to
                      be considered
                        as
                      minor. However, cases of non-compliance which constitute a direct risk to public or animal health shall not be considered
                        as
                      minor.
                        The finding and the obligation to take remedial action shall be notified to the beneficiary.

                  In duly justified cases Member States may decide that no reduction
                        is to be
                      applied where, given its severity, extent and duration, a case of non-compliance
                        should
                      be considered
                        to be
                      minor. However, cases of non-compliance which constitute a direct risk to public or animal health shall not be considered
                        to be
                      minor.

                        Furthermore, Member States may set up an early warning system applying to cases of first non-compliance that are not considered to be severe. Where a Member State decides to make use of this option, the competent authority shall send an initial warning to the beneficiary, notifying it of the finding and of the obligation to take remedial action. The impact of such system shall be limited to holding the beneficiary responsible for the non-compliance. The warning shall be followed by appropriate checks within the following year to verify whether the non-compliance has been remedied. If it has been remedied, no reduction shall be applied. If it has not been remedied, the reduction pursuant to the first subparagraph shall be applied retroactively. However, cases of non-compliance which constitute a direct risk to public or animal health shall always be considered to be severe.

                  3.   In the case of
                        intentional
                      non-compliance, the percentage of reduction shall in principle not be less than 20 % and may go as far as total exclusion from one or several aid schemes and apply for one or more calendar years.

                  3.   In the case of
                        severe
                      non-compliance
                        resulting from gross negligence
                     , the percentage of reduction shall in principle not be less than 20 % and may go as far as total exclusion from one or several aid schemes and apply for one or more calendar years.

                  4.   In any case, the total amount of reductions and exclusions for one calendar year shall not be more than the total amount referred to in the first subparagraph of paragraph 1.

                  4.   In any case, the total amount of reductions and exclusions for one calendar year shall not be more than the total amount referred to in the first subparagraph of paragraph 1.

         Amendment 155

         Proposal for a regulation

         Article 101

                     Text proposed by the Commission

                     Amendment

                  1.   In order to ensure a correct distribution of the funds to the entitled beneficiaries, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 to establish a harmonised basis for calculation of penalties due to cross compliance, taking into account reductions due to financial discipline.

                  1.   In order to ensure a correct distribution of the funds to the entitled beneficiaries, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 to establish a harmonised basis for calculation of penalties due to cross compliance, taking into account reductions due to financial discipline.

                  2.   In order to ensure that cross compliance is carried out in an efficient, coherent and non discriminatory way, the Commission shall be empowered to adopt delegated acts in accordance with Article 111 concerning the calculation and application of penalties.

                  2.   In order to ensure that cross compliance is carried out in an efficient,
                        risk-based and proportionate,
                      coherent and non discriminatory way, the Commission shall be empowered to adopt delegated acts, in accordance with Article 111, concerning the calculation and application of penalties.
                        Those delegated acts shall in particular contain rules for cases where administrative penalties are not to be imposed for non-compliance due to technical failure of the systems for identification and registration of animals, referred to in Annex II, SMR 7 and SMR 8, which does not result from an act or omission directly attributable to the beneficiary concerned.

         Amendment 156

         Proposal for a regulation

         Article 102 — paragraph 1 — subparagraph 1 — point c — point v

                     Text proposed by the Commission

                     Amendment

                              (v)

                                    a
                                  summary of the results of all available audits and checks carried out in accordance with the schedule and detailed provisions laid down in the sector specific rules.

                              (v)

                                    an annual
                                  summary
                                    , together with the EAGF and EAFRD expenditure account,
                                  of the results of all available audits and checks carried out in accordance with the schedule and detailed provisions laid down in the sector specific rules.

         Amendment 157

         Proposal for a regulation

         Article 102 — paragraph 3 a (new)

                     Text proposed by the Commission

                     Amendment

                        (3a)

                        Where, in order to fulfil their obligations under this Article, Member States are required to carry out statistical analyses, the Commission shall furnish them with all necessary information in good time.

         Amendment 158

         Proposal for a regulation

         Article 106 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                  3.   Where a direct payment as provided for in Regulation (EU) No DP/xxx is made to a beneficiary in a currency other than the euro, Member States shall convert the amount of aid expressed in euro into the national currency on the basis of the
                        most recent
                      exchange rate set by the European Central Bank prior to 1 October of the year for which the aid is granted.

                  3.   Where a direct payment as provided for in Regulation (EU) No DP/xxx is made to a beneficiary in a currency other than the euro, Member States shall convert the amount of aid expressed in euro into the national currency on the basis of the
                        last monthly average
                      exchange rate set by the European central bank prior to 1 October of the year for which aid is granted.

         Amendment 159

         Proposal for a regulation

         Article 107 — paragraph 1 — subparagraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   The Commission
                        may, by means of implementing acts,
                      adopt measures
                        in order
                      to safeguard the application of Union legislation if exceptional monetary practices related to national currency are likely to jeopardise it. Those measures may, where necessary, derogate from the existing rules.

                  1.   The Commission
                        shall be empowered to
                      adopt
                        delegated acts, in accordance with Article 111, concerning
                      measures to safeguard the application of Union legislation if exceptional monetary practices related to national currency are likely to jeopardise it. Those measures may, where necessary, derogate from the existing rules.

         Amendment 160

         Proposal for a regulation

         Article 110

                     Text proposed by the Commission

                     Amendment

                  1.   A common monitoring and evaluation framework shall be established with a view to measuring the performance of the common agricultural policy.
                        It shall include all instruments related to the monitoring and evaluation of common agricultural policy measures
                      and in particular of the direct payments provided for in Regulation (EU) No DP/xxx, the market measures provided for in Regulation (EU) No CMO/xxx, the rural development measures provided for in Regulation (EU) No RD/xxx and of the application of the cross compliance provided for in this Regulation.

                  1.   A common monitoring and evaluation framework shall be established with a view to measuring the performance of the common agricultural policy, and in particular of:

                                    (a)

                              the direct payments provided for in Regulation (EU) No …/2013[DP],

                                    (b)

                              the market measures provided for in Regulation (EU) No …/2013[sCMO],

                                    (c)

                              the rural development measures provided for in Regulation (EU) No …/2013[RD] and of,

                                    (d)

                              the application of the cross compliance provided for in this Regulation.

                        In order to ensure an effective performance measurement the
                      Commission shall
                        be empowered to adopt delegated acts in accordance with Article 111 regarding the content and construction of that framework.

                        The
                      Commission shall
                        monitor those policy measures on the basis of reporting by Member States in accordance with the rules laid down in this Regulation. The Commission shall establish a multi-annual evaluation plan with periodic evaluations of specific instruments which it will carry out.

                  2.   The impact of the common agricultural policy measures referred to in paragraph 1 shall be measured in relation to the following objectives:

                  2.   The impact of the common agricultural policy measures referred to in paragraph 1 shall be measured in relation to the following objectives:

                              (a)

                              viable food production, with a focus on agricultural income, agricultural productivity and price stability;

                              (a)

                              viable food production, with a focus on
                                    input prices
                                 , agricultural income, agricultural productivity and price stability;

                              (b)

                              sustainable management of natural resources and climate action, with a focus on greenhouse gas emissions, biodiversity, soil and water;

                              (b)

                              sustainable management of natural resources and climate action, with a focus on greenhouse gas emissions, biodiversity, soil and water;

                              (c)

                              balanced territorial development, with a focus on rural employment, growth and poverty in rural areas.

                              (c)

                              balanced territorial development, with a focus on rural employment, growth and poverty in rural areas.

                        The
                      Commission shall
                        define, by means of implementing acts, the set of indicators specific to the objectives referred to in the first subparagraph. Those implementing acts shall be adopted
                      in accordance with
                        the examination procedure referred to in Article 112(3).

                        In order to ensure the efficient application of this paragraph the
                      Commission shall
                        be empowered to adopt delegated acts,
                      in accordance with Article
                        111, regarding the content and construction of the monitoring and evaluation framework, including the set of indicators and the methods for their calculation.

                  3.   Member States shall provide the Commission with all the information necessary to permit the monitoring and evaluation of the measures concerned. The Commission shall take into account the data needs and synergies between potential data sources, in particular their use for statistical purposes when appropriate.

                  3.   Member States shall provide the Commission with all the information necessary to permit the monitoring and evaluation of the measures concerned.
                        As far as possible, such information shall be based on established sources of data, such as the Farm Accountancy Data Network and Eurostat.
                      The Commission shall take into account the data needs and synergies between potential data sources, in particular their use for statistical purposes when appropriate.

                  The Commission shall adopt, by means of implementing acts, rules on the information to be sent by the Member States, as well as on the data needs and synergies between potential data sources. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                  The Commission shall adopt, implementing acts laying down rules on the information to be sent by the Member States,
                        without imposing an undue administrative burden on them,
                      as well as
                        rules
                      on the data needs and synergies between potential data sources. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 112(3).

                  4.   The Commission shall present a report on the implementation of this Article to the European Parliament and the Council every four years. The first report shall be presented not later than 31 December 2017.

                  4.   The Commission shall present a report on the implementation of this Article to the European Parliament and the Council every four years. The first report shall be presented not later than 31 December 2017.

         Amendment 200

         Proposal for a regulation

         Article 110 a (new)

                     Text proposed by the Commission

                     Amendment

                  Article 110a

                  Article 110a

                  Publication of beneficiaries

                        Ex post
                      publication of
                        the
                      beneficiaries
                        of the EAGF and the EAFRD

                        1.
                        Member States shall ensure annual ex post publication of the beneficiaries of the EAGF and the EAFRD.
                        The publication shall contain:

                  Member States shall ensure annual ex post publication of the beneficiaries of the EAGF and the EAFRD.
                        In doing so, they shall apply, mutatis mutandis, Article 21 of Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union.

                                    (a)

                                    without prejudice to the first paragraph of Article 110b of this Regulation, the name of the beneficiaries, as follows:

                                                (i)

                                                the first name and the surname where the beneficiaries are natural persons;

                                                (ii)

                                                the full legal name as registered where the beneficiaries are legal persons with the autonomous legal personality pursuant to the legislation of the Member State concerned;

                                                (iii)

                                                the full name of the association as registered or otherwise officially recognised where the beneficiaries are associations without an own legal personality;

                                    (b)

                                    the municipality where the beneficiary resides or is registered and, where available, the postal code or the part thereof identifying the municipality;

                                    (c)

                                    the amounts of payment corresponding to each measure financed by the EAGF and the EAFRD received by each beneficiary in the financial year concerned;

                                    (d)

                                    the nature and the description of the measures financed by the EAGF or the EAFRD and under which the payment referred to in point (c) is awarded.

                        The information referred to in the first subparagraph shall be made available on a single website per Member State. It shall remain available for two years from the date of the initial publication.

                        2.

                        As regards the payments corresponding to the measures financed by the EAFRD as referred to in point (c) of the first subparagraph of paragraph 1, the amounts to be published shall correspond to the total public funding, including both the Union and the national contribution.

         Amendment 162

         Proposal for a regulation

         Article 110b

                     Text proposed by the Commission

                     Amendment

                        Article 110b

                        deleted

                        Threshold

                        Where the amount of aid received in one year by a beneficiary is equal or less than the amount fixed by a Member State pursuant to Article 49 of Regulation (EU) No DP/xxx that Member State shall not publish the name of that beneficiary as provided for in point (a) of the first subparagraph of Article 110a(1) of this Regulation.

                        The amounts fixed by a Member State pursuant to Article 49 of Regulation (EU) No DP/xxx and notified to the Commission under that Regulation shall be made public by the Commission in accordance with the rules adopted under Article 110d.

                        Where the first paragraph of this Article applies the Member States shall publish the information referred to in points (b), (c) and (d) of the first subparagraph of Article 110a(1) and the beneficiary shall be identified by a code. Member States shall decide on the form of that code.

         Amendment 165

         Proposal for a regulation

         Article 111 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   The
                        delegation of
                      power referred to in
                        this Regulation
                      shall be conferred on the Commission for
                        an indeterminate period of time from the entry into force of this Regulation.

                  2.   The power
                        to adopt delegated acts
                      referred to in
                        Articles …
                      shall be conferred on the Commission for
                        a period of five years from …

                      (1)

                        .

         Amendment 166

         Proposal for a regulation

         Article 111 — paragraph 2 — subparagraph 1a (new)

                     Text proposed by the Commission

                     Amendment

                        The Commission shall, not later than nine months before the expiry of a period of five years, submit a report on the delegated powers. The delegation of power shall be extended by the same period if the European Parliament and the Council agree to this extension not later than three months before the end of each period. To this end, the European Parliament shall decide by a majority of its members and the Council by a qualified majority.

         Amendment 167

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 1 — indent 1 a (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information helping farmers to plan how best to invest in ‘climate-proofing’ their farm systems, and which Union funds they can use to do so; specifically, information on adapting farmland to climatic fluctuations and longer term changes and information on how to adopt practical agronomic measures to increase the resilience of farming systems to floods and droughts and to improve and optimise soil carbon levels.

         Amendment 168

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 2 — indent 7 a (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information on the positive correlation between biodiversity and agro-ecosystem resilience, and the spreading of risk, and also the link between monocultures and susceptibility to crop failure/damage from pests and extreme climatic events

         Amendment 169

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 2 — indent 8 a (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information on how to best prevent the spread of alien invasive species and why this is important for the effective functioning of the ecosystem and for its resilience against climate change, including information on access to funding for eradication schemes where additional costs are implied

         Amendment 170

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 3 — indent 5 b (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information on sustainable, low volume irrigation systems and on how to optimise rain-fed systems, in order to promote efficient water use.

         Amendment 171

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 3 — indent 5 c (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information on reducing water use in agriculture, including crop choice, on improving soil humus to increase water retention and on decreasing the need to irrigate.

         Amendment 172

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 5 — indent 1

                     Text proposed by the Commission

                     Amendment

                              —

                              Information on
                                    actions targeted towards innovation
                                 .

                              —

                              Information on
                                    the objectives of the European Innovation Partnerships for Agricultural productivity and sustainability as stated on Article 61 of Regulation (EU) No …/2013 [RD]
                                 .

         Amendment 173

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 5 — indent 1 a (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information on the existing operational groups created under article 62 of Regulation (EU) No …/2013 [RD] including their tasks and foster exchange and cooperation with them when appropriate.

         Amendment 174

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 5 — indent 3 a (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    Information on Rural Development Programmes oriented to the fulfilment of the priorities of knowledge transfer and innovation in agriculture as referred to in Article 5 (1) of Regulation (EU) No …/2013 [RD].

         Amendment 175

         Proposal for a regulation

         Annex 1 — paragraph 1 — subparagraph 5 a (new)

                     Text proposed by the Commission

                     Amendment

                        Exchange of best practice, training and capacity building (horizontal to all themes mentioned above)

         Amendment 176

         Proposal for a regulation

         Annex II — Main Issue ‘Water’ — SMR1 — last column

                     Text proposed by the Commission

                     Amendment

                        Articles 4 and 5

                        Compliance with the action programme and with the code of good practice for farms in vulnerable areas

         Amendment 180

         Proposal for a regulation

         Annex II — Main issue ‘Soil and carbon stock’ — GAEC 6

                     Text proposed by the Commission

                     Amendment

                  Maintenance of soil organic matter level including ban on burning arable stubble

                  Maintenance of soil organic matter level
                        through appropriate practices
                      including ban on burning arable stubble
                        , except for plant health reasons or for pruning residue
                     .

         Amendment 181

         Proposal for a regulation

         Annex II — Main Issue ‘Soil and carbon stock’ — GAEC 7

                     Text proposed by the Commission

                     Amendment

                        Protection of wetland and carbon rich soils including a ban of first ploughing

                        deleted

         Amendment 184

         Proposal for a regulation

         Annexe II — Main Issue ‘Landscape, minimum level of maintenance’ — GAEC 8

                     Text proposed by the Commission

                     Amendment

                  Retention of landscape features, including where appropriate, hedges, ponds, ditches, trees in line, in group or isolated, field margins and terraces, and including a ban on cutting hedges and trees during the bird breeding and rearing season
                        and possible measures for avoiding invasive species and pests

                  Retention of landscape features, including where appropriate,
                        semi-natural habitats,
                      hedges, ponds, ditches, trees in line, in group or isolated, field margins and terraces, and including a ban on cutting hedges and trees during the bird breeding and rearing season.

         Amendment 192

         Proposal for a regulation

         Annex II — Main Issue ‘Action on antimicrobial resistance (AMR)’ (new)

                     Text proposed by the Commission

                     Amendment

                        Action on antimicrobial resistance (AMR)

         Amendment 193

         Proposal for a regulation

         Annex II — Main Issue ‘Action on antimicrobial resistance (AMR)’ (new) — GAEC 8c (new)

                     Text proposed by the Commission

                     Amendment

                        Commission Action plan against the rising threats from Antimicrobial Resistance, (COM(2011) 748, 15.11.2011). For food producing animals: Good Farming Practices to avoid infections including density limits, documentation of treatments including prophylaxis, no use of critically important antimicrobials

         Amendment 194

         Proposal for a regulation

         Annex II — Main Issue ‘Plant protection products’ — SMR 10 — last column

                     Text proposed by the Commission

                     Amendment

                        Article 55, first and second sentence

                        Correct application of plant protection products; use of authorised products only, in the recommended quantities and in line with the indications on the label. Keeping a record of the name of the product used, its formulation, the date on which it was applied to the parcel of land concerned, the person applying it and the level of that person’s qualifications, the amount applied and the method of application

         (1)
            Date of entry into force of this Regulation.