The Future of Food and Farming

Ideas for a new CAP implementation modelENRD Workshop 30.01.2018

Christina BORCHMANNDirector "Assurance and Audit"

European Commission – DG AGRI

CAP delivery

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• Discussion on the design of the policy and its delivery go hand inhand

• Incremental simplification initiatives coming to their limits

• Shift towards performance requires alleviating the burden forcompliance

CAP delivery — state of play

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• Effective implementation

• Well perfoming delivery systems, such as IACS

• Overall low error rate

• Effective supervision and good corrective capacity

☺

CAP delivery — state of play

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• Hugely rule-based and compliance driven

• Legality and regularity target at 98 %

• Complex legal framework

• Administrative burden

• "Brussels" driven

CAP delivery wish list

• Streamline CAP policy design

• Change policy and management focus from compliance to result

orientation

• Increase flexibility and subsidiarity for MS/regions

• Reduce the EU-related administrative burden for beneficiaries

and administrations

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New sharing of roles

Shared management: new delimitation between EU and MS

EU : defining the basic policy framework

▪ Objectives

▪ Portfolio of measures

▪ Basic EU requirements

MS : develop policy configuration

▪ Configure measures

▪ Create compliance framework for beneficiaries

▪ Identify indicators and set targets

▪ Chose appropriate delivery instruments

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Performance orientation

• EU level objectives (general, specific)

• Comprehensive set of common indicators for the purpose of

establishing performance requirements and reporting

• National indicators and targets set at CAP plan level

• Performance anchored at MS, not the beneficiary level

• Appropriate ex ante conditionalities

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Compliance architecture

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MS

Beneficiary

EUCompliance framework

• Basic EU rules on aid implementation, implementation systems and budgetary allocations

Configuring the policy

“Structured Planning Process”

• Needs analysis against common objectives

• Definition of targets and indicators

• Choice among broad types of intervention set out in EU basic acts, in line with appropriate EU criteria (e.g. basic EU requirements, budgetary allocations)

• MS: planning discretion

• Commission assessment and approval of the CAP plan

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Structured planning process

SWOT-analysis

Relevant objectives and target-setting

Types of interventions per objectives and target-setting

Inter-vention 1

Inter-vention 2

Inter-vention 3

National

CAP Plan

• Performance framework/incentives

• EU governance structures incl. management & control systems

• Compliance with basic EU requirements concerning:

• Design/use of broad types of intervention

• Specific requirements

Commission approval

The Strategy:

EU performance/compliance framework for MS:

MS: Performance and compliance framework for beneficiaries

Mandatory EU menu for MS“ EU rules only ”

Flexibility for MS“EU objectives only “

Current1.Pillar

Current2.Pillar

New CAP option

Configuring policy interventions

EU rules with

options

EU ruleswith

programming

Planningprocess

Design of actions — a tentative example

EU objective

“ foster a smart and resilient agriculture sector ”

Types of intervention

• Decoupled area based direct payments

Budget allocation

EU requirements(examples)• WTO Green-box• Basic Definitions• Min/Max amounts/ha• Basic criteria for

“modulation” of the level of support

• Coupled direct payments

Max.100 % ofenvelope

Max.[X]% ofenvelope

EU requirements(examples)• WTO Blue Box• Some Basic Definitions• Scope (eligible

products)• Maximum national

allocation

Governance structures(examples)• IACS/IACS GIS (basic rules)• Paying agencies• Financial management

rules• Certification bodies• Competent authorities

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Audit and assurance — compliance

Focus on:

• Compliance by MS with governance structures , incl. management and control systems (e.g.: IACS), EU requirements and approved CAP plans

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• Competent authority

• Accredited paying agencies

• Measure linked management systems, e.g. the new IACS monitoring and LPIS

• Certification bodies checking outputs/results

• Single audit approach Commission only checkingperformance and that governance structures in place

Governance structures – achievement of targets

Targets achieved Assurance based on outputs and results

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OBJECTIVES

TARGETS

EU RULES

Types of intervention designed at EU level — RACER indicators for outputs/results/impacts

Targets set in CAP plans for performance at MS/regional level

Limited general set of EU rules including governance structures to be in place

Audit and assurance — performance

• Annual performance reporting by MS/regions

• Indicators to be used: output (annual), results (medium term)

• Audit of performance reporting by the Commission

• Single audit approach also for performance

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Targets achieved Assurance based on outputs and results

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EU ELIGIBILITY

PRE-FINANCING

ANNUAL REPORTING

Expenditure is eligible for financing by the EU targets are achieved, outputs and results obtained

Member States declare expenditure on a regular basis like today and are (partially) reimbursed

Member States report annually on outputs obtained

Targets achieved Assurance based on outputs and results

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FINANCIAL CLEARANCE

PERFORMANCE CLEARANCE

PERFORMANCE REVIEW

Like today based on veracity, correctness and completeness of accounts

Annual review determining outputs obtained and thereby final eligibility of expenditure incurred in

the year

Review towards end of programming period of medium term results (impacts)

Preventive actions

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SELF-ASSESMENT

ACTION PLANS

TARGET REVIEW

If expected outputs/results are not achieved, MS should review their set up

Review may result in action plan to improve design of national/regional measures to increase

performance.

Review may result in proposal to adjust targets in CAP plan

• EU objectives and indicators

• EU types of interventions

• EU basic requirements

• EU governance structures

• CAP approval by Commission

• EU performance framework

The C in the CAP

Subsidiarity ≠ renationalisation !

Communication EPCommittee on Agriculture and Rural Development

Agriculture Council Impact analysis Multiannual financial frameworkpost 2020

Legal proposalsEuropean Council

29 NOVEMBER 29 NOVEMBER 11/___DAY_DM—

JAN MAI MAY/JUNEFEBRUARY

TIMETABLE

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More information at:

Https://ec.europa.eu/agriculture/future-cap_en

Thank you for your attention!