Regulation (EU) 2020/2220 and breakdown of EAFRD financial resources for 2021 and 2022

Subject: Regulation (EU) 2020/2220 and breakdown of EAFRD financial resources for 2021 and 2022

The internal debate between Italian regions on the future distribution of EAFRD resources earmarked for regional development programmes (RDPs) over the two transitional years 2021 and 2022 has stalled because of a failure to agree on the criteria to be used for allocating the funds.

More specifically, according to the latest ministerial proposal, EAFRD funds should be distributed among the various Italian regions in accordance with the criteria normally used for ‘de minimis’ aid.

These resources, however, are only supposed to be used to bridge the gap between richer, more developed areas and poorer, marginal areas, which is why the funds should only be distributed on the basis of criteria that are appropriate for achieving such general rural development objectives.

Furthermore, the proposal does not consider that Regulation (EU) 2020/2220 has extended, for the transitional period, the current CAP Pillar 1 payment scheme which, unless appropriately readjusted, would make the gap between more developed and less developed regions even wider.

In view of this, can the Commission answer the following questions:

1. Does it not agree that in distributing EAFRD funding, the primary objective should nonetheless be to close the gap between European regions, the aim being to fairly redress the territorial balance from a socio-economic and financial point of view?

2. Does it not also agree that EAFRD 2021-2022 resources should be allocated on the basis of a comprehensive analysis of the CAP and, specifically, of the readjustment of first-pillar payments for that period?

Answer given by Commissioner Wojciechowski on behalf of the European Commission (11 June 2021)

Regulation (EU) 2020/2220 (1) extends the 2014-2020 Common Agricultural Policy (CAP) Regulations for a two-year transitional period. This regulation provides for the pre-allocated CAP envelopes per Member State for the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development (EAFRD) for 2021 and 2022, resulting from the 2021-2027 multi- annual financial framework regulation (2), as well as the additional resources allocated to the EAFRD provided by the European Union Recovery Instrument.

Since the CAP is governed by the principle of shared management, the decision on how to allocate the Member States’ national envelopes between regions falls under the competence of each Member State.

⋅1∙ Regulation (EU) 2020/2220 of the European Parliament and of the Council of 23 December 2020 laying down certain transitional provisions for support from the

European Agricultural Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 2021 and 2022. ⋅2∙ Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027.