EU exceptional measures for the agri-food sector

Agri-food sector

Rome [ENA] In the Public Health Emergency of International Concern all the countries are experiencing because of the outbreak of the Coronavirus , the European Commission announced a new set of measures to help the agri-food sector in this unparalleled crisis. COVID-19 is taking agri-food sector and tourism into uncharted territory above all in Italy. In fact Italy is top in Europe for the number of tourism sector firms with

383,600, ahead of France (326,700), Spain (308,000) and Germany (263,400), Eurostat stated yesterday. Many of Italian tourist firm are associated with agri-food sector. FMI (International Monetary Fund) announced on 15th April that Italy's budget deficit will rise to 8.3% of GDP this year and then fall back to 3.5% next. In this exceptional circumstances the Coronavirus response investment initiative plus (CRII+) proposed by the European Commission introduces outstanding measures of flexibility and simplification in the use of the European structural investment funds (ESIF), including the European agricultural fund for rural development (EAFRD). Regarding the EAFRD, the CRII+ will support farmers, rural areas and EU countries

by increasing flexibility in the use of those funds, including: * flexibility in the use of financial instruments: Farmers and other rural development beneficiaries will have the opportunity to benefit from loans or guarantees to cover operational costs of up to €200,000 at favourable conditions, such as very low interest rates or favourable payment schedules. * reallocation of funds: EU countries can allocate money still available under their rural development programmes (RDP) to finance relevant actions to face the crises. The money will still have to be used in the framework of the respective RDP. Commission will support Member States and react promptly to any requests for programme changes. * postponement for the submission of annual

reports: the deadline for EU countries to submit these reports on the implementation of their RDPs is postponed, giving more time to national authorities to put it together. * no amendments to partnership agreements required: EU countries will not have to amend their partnership agreements to modify their RDPs, lifting some administrative procedures. In addition to the measures directly linked to the EAFRD under the CRII+, the European Union through the Commission is proposing further flexibility and simplification of other common agricultural policy (CAP) instruments: * Extension of deadline for CAP payment applications: the deadline will be extended by a month, from 15 May to 15 June 2020, providing more time to farmers

* to fill in their application for both direct payments and rural development payments. * Higher advances of payments: to increase the cash flow of farmers, the Commission will increase the advances of direct payments (from 50% to 70%) and rural development payments (from 75% to 85%). Farmers will start receiving these advances from mid-October. * Reduction of physical on-the-spot checks and leeway for timing requirements: EU countries have to carry out checks to ensure that eligibility conditions are met. However, in the current exceptional circumstances, it is crucial to minimise physical contact between farmers and the inspectors carrying out the checks. This measure will help reduce administrative burden and avoid unnecessary delays.

The common agricultural policy (CAP) aims to support the vitality and economic viability of rural communities through rural development measures (the so-called second pillar). The rural development measures reinforce the market measures and income supports of the CAP with strategies and funding to strengthen the EU’s agri-food and forestry sectors, environmental sustainability, and the wellbeing of rural areas in general.

The common agricultural policy (CAP) aims to support the vitality and economic viability of rural communities through rural development measures (the so-called second pillar). The rural development measures reinforce the market measures and income supports of the CAP with strategies and funding to strengthen the EU’s agri-food and forestry sectors, environmental sustainability, and the wellbeing of rural areas in general.