Explanatory Memorandum on European Union Document s1

EXPLANATORY MEMORANDUM ON EUROPEAN UNION DOCUMENT

9898/15

COM (2015) 288 final

9898/15 ADD 1

SWD(2015) 114 final

DOCUMENT 9898/15 OF 12 JUNE 2015 CONCERNING A REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS: THIRD REPORT ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013).

DOCUMENT 9898/15 ADD 1 OF 12 JUNE 2015 COMMISSION STAFF WORKING DOCUMENT ACCOMPANYING DOCUMENT REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS THIRD REPORT ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013)

Submitted by the Department for Environment, Food and Rural Affairs

______June 2015

SUBJECT MATTER

1. Report 9898/15 and the accompanying supplementary information (9898/15 ADD 1) provides detailed information on implementation of the European Agricultural Fund for Rural Development (EAFRD) budget to the end of 2013. This funds Rural Development Programmes in Member States. The report sets out progress on spending and what has been achieved with it at Member State level.

SCRUTINY HISTORY

2. The Parliamentary scrutiny history relevant to this document is contained in the attached Annex A.

MINISTERIAL RESPONSIBILITY

3. Responsibility lies with the Secretary of State for Environment, Food and Rural Affairs, Scottish Ministers, Welsh Ministers and Northern Ireland Executive Ministers.

INTEREST OF THE DEVOLVED ADMINISTRATIONS

4. The Devolved Administrations have been consulted in the preparation of this Explanatory Memorandum.

LEGAL AND PROCEDURAL ISSUES

5. (i) Legal Basis

Council Regulation (EC) No 1698/2005, Article 14.

(ii) European Parliament Procedure

Article 14 of Council Regulation (EC) No 1698/2005 provides that the Commission report shall be sent to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

(iii) Voting Procedure

Not applicable.

(iv) Impact on United Kingdom Law

Not applicable.

(v) Application to Gibraltar

Not applicable.

(vi) Fundamental Rights Analysis

Not applicable.

APPLICATION TO THE EUROPEAN ECONOMIC AREA

6. Not applicable.

SUBSIDIARITY

7. Article 14 of Council Regulation (EC) No 1698/2005 specifically provides for the Commission to present this report.

POLICY IMPLICATIONS

8. There are no policy implications as the report and its accompanying supplementary information are factual accounts of spending in the EU and by Member States under the EAFRD to the end of 2013, and expected expenditure to the end of 2015.

CONSULTATION

9. Not applicable

IMPACT ASSESSMENT

10. Not applicable.

FINANCIAL IMPLICATIONS

11. Overall spend to the end of 2013 across the EU was 74% of the overall budget. This compares with 46% to the end of 2011. Spend can continue until the end of 2015.

12. For the EU as a whole, the main points are:

· Improving competitiveness of the agriculture and forest sector (Axis 1): at 68%, spend is broadly in line with targets. Around 2.4million farmers have been trained and 637,000 projects undertaken;

· Improving the environment and the countryside (Axis 2): 86% of the overall allocation had been spent. 46.9million ha, equivalent to 27% of the total utilised agricultural area, were under environmental management;

· Improving the quality of life in rural areas and encouraging diversification of the rural economy (Axis 3): although at 60% there has been a notable increase compared with 2011, some member states are delayed in meeting their targets. More than 75,000 jobs have been created and 62,000 micro-enterprises supported;

· Building local capacity for employment and diversification (Axis 4): the rate of 46% reflects delays in implementing the Leader approach in a number of Member States. 140,000 projects have been supported so far.

13. Overall spend in the UK is above the EU-27 average, at around 80% of the 2007-2013 budget.

14. The UK spend for specific types of spend compared with the EU average is as follows:

Area / UK / EU average
Improving competitiveness of the agriculture and forest sector (Axis 1) / 78% / 68%
Improving the environment and the countryside (Axis 2) / 84% / 86%
Improving the quality of life in rural areas and encouraging diversification of the rural economy (Axis 3) / 62% / 60%
Building local capacity for employment and diversification (Axis 4) / 65% / 46%
Total across Rural Development Programmes in the UK / 80% / 74%

TIMETABLE

15. Not applicable.

GEORGE EUSTICE MP

MINISTER OF STATE

DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS

ANNEX A

PARLIAMENTARY SCRUTINY HISTORY RELEVANT TO A:

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS THIRD REPORT ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013)

COMMISSION STAFF WORKING DOCUMENT ACCOMPANYING THE DOCUMENT REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS THIRD REPORT ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013)

EM NO /TITLE: UNNUMBERED EUROPEAN COURT OF AUDITORS (ECA) SPECIAL REPORT NO 5/2015: ARE FINANCIAL INSTRUMENTS A SUCCESSFUL AND PROMISING TOOL IN THE RURAL DEVELOPMENT AREA?

Date EM signed: 03/06/2015

Scrutiny Committees’ Recommendations:

Commons / Lords
Yet to be considered. / Cleared at chairman's sift 1584 - 09/06/15

EM NO /TITLE: UNNUMBERED EM EUROPEAN COURT OF AUDITORS (ECA) SPECIAL REPORT NO 4/2015 TECHNICAL ASSISTANCE: WHAT CONTRIBUTION HAS IT MADE TO AGRICULTURE AND RURAL DEVELOPMENT?

Date EM signed: 03/06/2015

Scrutiny Committees’ Recommendations:

Commons / Lords
Yet to be considered. / Cleared at chairman's sift 1584 - 09/06/15

EM NO /Title: 15997/14 REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 7th FINANCIAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT and the COUNCIL on the EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD) 2013 FINANCIAL YEAR

15997/14 ADD 1 COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 7th FINANCIAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT and the COUNCIL on the EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD) 2013 FINANCIAL YEAR

Date EM signed: 04/12/2014

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important Report No. 25 10/12/14 / Cleared at Chairman's Sift 16/12/14

EM NO /TITLE: UNNUMBERED EM EUROPEAN COURT OF AUDITORS (ECA) SPECIAL REPORT NO 23/2014 ERRORS IN RURAL DEVELOPMENT SPENDING: WHAT ARE THE CAUSES, AND HOW ARE THEY BEING ADDRESSED?

Date EM signed: 27/02/2015

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important 03/03/15 / Cleared at chairman's sift 1577 - 10/03/15

EM NO /Title: Unnumbered EM ECA Report No. 22 Achieving economy: keeping the costs of EU‑financed rural development project grants under control

Date EM signed: 06/01/2015

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important Report No. 29 14/01/15 / Cleared at Chairman's Sift 13/1/15

EM NO/Title: 14836/13 Report from the Commission to the European Parliament and the Council: 6th Financial Report from the Commission to the European Parliament and the Council on the European Agricultural Fund for Rural Development (EAFRD) 2012 financial year

Date EM signed: 30/10/2013

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important 08/11/13 / Cleared at Chairman's Sift 05/11/13

EM NO /Title: Unnumbered EM European Court of Auditors: Special report 6: Have the Member States and the Commission achieved value for money for the measures for diversifying the rural economy

Date EM signed: 28/10/2013

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important 08/11/13 / Cleared by ministerial correspondence 28/12/13

EM NO /Title: 13979/13 Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Second Report on the implementation of the national strategy plans and the Community strategic guidelines for rural development (2007-2013)

13979/13 ADD 1 Commission Staff Working Document accompanying the document Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Second Report on the implementation of the national strategy plans and the Community strategic guidelines for rural development (2007-2013)

Date EM signed: 14/10/2013

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important report 20 - 25/10/13 / Cleared at Chairman's sift 1520 - 22/10/13

EM NO /TITLE: 12452/13 PROPOSAL FOR REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL AMENDING COUNCIL REGULATION (EC) NO 1698/2005 ON SUPPORT FOR RURAL DEVELOPMENT BY THE EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD)

Date EM signed: 04/09/2013

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important 11/10/13 / Cleared at Chairman's sift 01/10/13

EM NO /Title: 8340/13 Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down certain transitional provisions on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and amending Regulation (EU) No [RD] as regards resources and their distribution in respect of the year 2014 and amending Council Regulation (EC) No 73/2009 and Regulations (EU) No [DP], (EU) No [HZ] and (EU) No [sCMO] as regards their application in the year 2014

Date EM signed: 01/05/2013

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important 23/05/13 / Sifted to Sub-Committee d at chairman's sift 14/05/13.
Cleared by letter on 10/10/13.

EM NO /TITLE: 13817/11 REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013).

EM 13817/11 ADD 1 COMMISSION STAFF WORKING PAPER ACCOMPANYING THE DOCUMENT: REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013).

Date EM signed: 13/10/11

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important - 26/10/11 / Cleared at the Chairman's Sift - 18/10/11

EM NO /Title: 13397/11 Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1698/2005 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability

Date EM signed: 06/09/2011

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as politically important 07/12/11 / Sifted to Sub-committee D at Chairman's sift 13/09/11
Cleared by letter 15/09/11

EM NO /TITLE: 14329/12 - AMENDMENT TO THE COMMISSION PROPOSAL COM(2011) 627 FINAL/3 FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON SUPPORT FOR RURAL DEVELOPMENT BY THE EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD)

14483/12 - AMENDMENT TO THE COMMISSION PROPOSAL COM(2011) 625 FINAL/3 FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ESTABLISHING RULES FOR DIRECT PAYMENTS TO FARMERS UNDER SUPPORT SCHEMES WITHIN THE FRAMEWORK OF THE COMMON AGRICULTURAL POLICY

COM (2012) 535 FINAL - AMENDMENT TO THE COMMISSION PROPOSAL COM(2011) 626 FINAL/3 FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ESTABLISHING A COMMON ORGANISATION OF THE MARKETS IN AGRICULTURAL PRODUCTS (SINGLE CMO REGULATION)

DATE EM SIGNED: 17/10/12

SCRUTINY COMMITTEES’ RECOMMENDATIONS:

Commons / Lords
Cleared as not legally or politically important 26/10/12 / Cleared at Chairman’s sift 23/10/12

EM NO/TITLE: 14339/12 REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL - 5TH FINANCIAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON THE EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD) 2011 FINANCIAL YEAR

DATE EM SIGNED: 12/01/12

SCRUTINY COMMITTEES’ RECOMMENDATIONS:

COMMONS / LORDS
Cleared as not legally or politically important 17/10/12 / Cleared at Chairman's Sift 23/10/12

13817/11 ADD 1 COMMISSION STAFF WORKING PAPER ACCOMPANYING THE DOCUMENT: REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS ON THE IMPLEMENTATION OF THE NATIONAL STRATEGY PLANS AND THE COMMUNITY STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT (2007-2013).

Date EM signed: 13/10/11

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important - 26/10/11 / Cleared at the Chairman's Sift - 18/10/11

EM NO/TITLE: 15960/11 REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL- 4TH FINANCIAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON THE EUROPEAN AGRICULTURE GUARANTEE FUND - 2020 FINANCIAL YEAR PART 1 TO 3

15958/11 REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL- 4TH FINANCIAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON THE EUROPEAN AGRICULTURE FUND FOR RURAL DEVELOPMENT - 2020 FINANCIAL YEAR

DATE EM SIGNED: 09/11/11

Scrutiny Committees’ Recommendations:

Commons / Lords
Cleared as not legally or politically important 23/11/11 / Cleared at the Chairman's Sift 15/11/11

EM NO /TITLE: 15396/11 PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ESTABLISHING RULES FOR DIRECT PAYMENTS TO FARMERS UNDER SUPPORT SCHEMES WITHIN THE FRAMEWORK OF THE COMMON AGRICULTURAL POLICY

EM 15425/11 PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON SUPPORT FOR RURAL DEVELOPMENT BY THE EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD)

EM 15426/11 PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON THE FINANCING, MANAGEMENT AND MONITORING OF THE COMMON AGRICULTURAL POLICY.

EM 15397/11 PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ESTABLISHING A COMMON ORGANISATION OF THE MARKETS IN AGRICULTURAL PRODUCTS (SINGLE CMO REGULATION)