In the 2014 draft budget, the Commission's first estimates for direct payments and market-related expenditure for farmers showed that the sub-ceiling under Heading 2 for the financial year 2014 is likely to be exceeded. To meet financial discipline obligations, the Commission proposes a cut of 4.91759% on direct payments over €5000 (representing €1471.4 million for the calendar year 2013) to try to achieve a more balanced distribution of payments.
The rapporteur, supported by the committee on agriculture and rural development, contested the Commission’s method of calculation, which is based on the European Council multi-annual financial framework (MFF) agreement of 7-8 February 2013. This agreement does not have formal legal standing and therefore the rapporteur has taken the original figures from the Commission's proposal on the MFF as a basis of calculation, as these are the same figures as in the CAP reform proposals. This method of calculation resulted in a reduction of 0.748005%.
The rapporteur agrees on the threshold of €5000 and the committee adopted an amendment which leaves the door open for the European Parliament to reconsider its position once the MFF has been adopted.