Farmers’ organisations from Germany, France, the Netherlands, Belgium, Finland, England, Scotland, Wales, Northern Ireland and Denmark call on the European Parliament, the Council of Ministers and the European Commission to guarantee that if any funds are transferred by a Member State from pillar 1 to pillar 2 , they must be match funded by national co-financing’.
This position is in line with the original proposal from the European Commission, as well as the opinion of the European Parliament.
The arguments for a mandatory national co-financing are:
• Co-financing is a fundamental principle behind the rural development policy
The rural development policy has always been accompanied by a national co-financing. This principle ensures that only projects that the member states themselves prioritise enough to co-finance will be implemented.
• Co-financing will contribute towards less distortion of the competition
Mandatory co-financing will reduce transferring of funds from P1 to P2 – and thereby also reduce the distortion of the competition between member states, which will be the result if large sums are transferred.
• Co-financing will significantly increase the sound management of EU-funds
If member states co-finance the rural developments projects they are much more likely to ensure that the EU-funds – along with the national contribution – are properly managed. In other words: misuse of EU-funds will be prevented.
• Co-financing will prevent that transferred RD-funds are used before proper RD-funds
Some member states might be tempted to use funds transferred from P1 to P2 before the proper RD-funds simply because there are no mandatory co-financing. However, if RD-funds from these two sources are treated equally this potential distortion is eliminated.
• No co-financing will effectively transfer EU-funds to national treasuries
Providing member states with the possibility to finance rural development programs solely with EU funds, will de facto offer them with the possibility of saving money on their national budgets.
Based on this we strongly urge the European Parliament, the Council of Ministers and the European Commission to ensure that mandatory co-financing of funds transferred from pillar 1 to pillar 2 are included in the final compromise on the reform of the CAP.
