The Commission presented a mid-term evaluation report of Regulation (EU) No 652/2014 of the European Parliament and of the Council, which set a common financial framework (CFF) in the areas of the food chain, animal health and welfare and plant health and plant reproductive material (CFF Regulation).

The report covers the following spending measures:

veterinary eradication, control and surveillance programmes implemented by the Member States, which aim to progressively eliminate animal diseases and zoonoses and to implement disease control measures; phytosanitary survey programmes concerning the presence of pests in the Union territory; veterinary and phytosanitary emergency measures ; European Union Reference Laboratories (EURLs) activities ; Better Training for Safer Food (BTSF) programme , which is a training initiative addressing national authority staff.

To achieve its objective, a maximum total ceiling for expenditure of EUR 1 891 936 000 for the seven-year period 2014-2020, covered by the present MFF was set aside for the CFF Regulation.

The CFF expenditure primarily consists of direct co-financing to the Member States, which are the almost exclusive beneficiaries of the EU spending in this area.

The main findings of the report are as follows:

the EU framework on food safety, animal and plant health has been generally recognised as uniform and largely consistent in its application and enforcement in all the Member States. This ensures in turn that both citizens and businesses are confident that this framework is fair and effective in promoting high safety standards in a key sector of the EU economy; the EU investment in surveillance, disease and pest control and eradication, contributes to the safety and trade in the entire food chain; the present financial framework is functioning well within its policy context: all activities receiving EU financial support in this area serve the CFF Regulation general and specific objectives; the CFF Regulation financial instrument has also proven to be flexible to address emerging needs for co-financing especially in the occurrence of outbreaks.

Achievement of objectives : the evaluation focuses on the efficiency and added value in achieving the four specific objectives of the CFC Regulation: (i) animal health, (ii) public health, (iii) official controls and (iv) food safety.

1) Animal health : payments for veterinary programmes in 2014 amounted to EUR 136 million and EUR 148 million in 2015 ( 75% of the total spending in 2014 and 2015). The analysis of these indicators for the period 2014-2016 reveals a positive epidemiological trend for all priority diseases receiving EU financial support under the veterinary programmes, with a growing number of Member States or regions becoming free from animal diseases. A significant example is represented by the EU programmes addressing Rabies : this disease has been almost eradicated in the EU in wildlife. Another good example is the increased number of Member States free from bovine brucellosis.

Thanks to early detection and to immediate application of EU co-funded emergency measures, all recent epidemics have been successfully contained. The report cited a recent example is the fight against the epidemic of Lumpy Skin Disease (LSD), an infectious viral disease of cattle transmitted via infected saliva or through insects, introduced in the EU from Turkey.

Obtaining a higher animal health status is the result of the legal measures put in place at Union level, with the technical and financial support provided by the EU to the Member States. When a disease is suspected or confirmed, various preventive and control measures are immediately put in place under the emergency measures system.

2) Plant health : survey programmes were established for the first time in 2015; the evaluation of their results has therefore been limited . Nevertheless, the EU Members States have welcomed their introduction since the very first year, with 17 EU countries presenting a programme in 2015 and 22 in 2016. In 2015, the implementation of surveys programmes has allowed the detection of a number of new emerging risks in the Union territory such as the plant bacterium Xylella fastidiosa .

In 2014, spending to implement emergency measures amounted to EUR 7.7 million and in 2015 to EUR 12.2 million while spending on surveys programmes amounted to EUR 4.2 million in 2015.

Overall, the report noted that the implementation of EU-funded forward-looking programs and contingency measures in the Union contributes to preserving agricultural production by protecting plant health , as well as protect biodiversity, forests and agricultural competitiveness.

3) Official controls : the testing activities carried out by the network of 43 EURLs contributed to the continuous update of diagnostic tools for the timely identification of pathogens. This is critical to uniform implementation of controls throughout the EU as it ensures confidence in the reliability of test results.

The BTSF programme has also proven to be helpful in responding to new needs, notably during crisis events, when it contributed to both prevention and crises-preparedness. The trainings have provided support to a common understanding across Member States of their obligations .

4) Food safety : during the period covered by the evaluation, the Commission services carried out around 200 audits and inspections per year. These audits and inspections have contributed to several key Commission priorities, including: (i) a regulatory environment which facilitates jobs, growth and investment by ensuring high levels of safety supported by sound control and enforcement systems; (ii) a deeper and fairer internal market by providing a level playing field where citizens and businesses can be confident in uniform and high levels of safety and transparent information on the state of implementation of controls in Member States and non-EU countries.

PURPOSE: to provide for the scope and objectives for food and feed expenditure and to modernise the financial provisions for this area.

LEGISLATIVE ACT: Regulation (EU) No 652/2014 of the European Parliament and of the Council laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material, amending Council Directives 98/56/EC, 2000/29/EC and 2008/90/EC, Regulations (EC) No 178/2002, (EC) No 882/2004 and (EC) No 396/2005 of the European Parliament and of the Council, Directive 2009/128/EC of the European Parliament and of the Council and Regulation (EC) No 1107/2009 of the European Parliament and of the Council and repealing Council Decisions 66/399/EEC, 76/894/EEC and 2009/470/EC.

CONTENT: this Regulation offers a framework to finance measures provided for under the animal health policy, the plant health regime, the regime for production and making available on the market of plant reproductive material and the rules which govern official controls. It replaces the financial provisions currently laid down in multiple legal texts by one single financial framework which optimises the implementation and the functioning of financial management of expenditure in the field of food and feed.

Budget and objectives of expenditure : the ceiling for the expenditure for the period 2014 to 2020 shall be EUR 1 891 936 000 in current prices

The general objective of Union law in those areas is to contribute to a high level of health for humans, animals and plants along the food chain, a high level of protection and information for consumers and a high level of protection of the environment, while favouring competitiveness and creation of jobs.

The specific objectives aim to (i) contribute to a high level of safety of food and food production systems; (ii) improve the welfare of animals; (iii) detect pests and eradicate where those pests have entered the Union; (iv) improve the effectiveness, efficiency and reliability of official controls and other activities carried out with a view to the effective implementation of and compliance with the Union rules.

These objectives are accompanied by indictors .

Measures and eligible costs : where the Union financial contribution takes the form of a grant, it shall not exceed 50 % of the eligible costs.

The maximum rate may be increased to:

75% of the eligible costs in respect of cross-border activities implemented together by two or more Member States in order to control, prevent or eradicate pests or animal diseases; 100% of the eligible costs where the activities benefitting from the Union contribution concern the prevention and control of serious human, plant and animal health risks for the Union

Furthermore, Union-level funding should be provided in order to cope with exceptional circumstances such as emergency situations related to animal and plant health.

List of animal diseases : the list of animal diseases which qualify for funding under emergency measures is annexed to this Regulation. In order to take account of the animal diseases which are likely to constitute a new threat for the Union, the power to adopt acts should be delegated to the Commission, in respect of supplementing that list.

Specific eligible costs : Union financing for measures in the field of animal and plant health should cover specific eligible costs. In exceptional and duly justified cases, it should also cover the costs incurred by the Member States in carrying out other necessary measures. Such measures may include the implementation of enhanced biosecurity measures in case of outbreak of disease or presence of pests, the destruction and transport of carcasses during eradication programmes, and the costs of compensation to owners resulting from emergency vaccination campaigns.

National programmes : for organisational and efficiency reasons in respect of the handling of funding in the animal and plant health areas, the Regulation lays down rules on content, submission, evaluation and approval of national programmes, including those implemented in the outermost regions of the Union. For the same reasons, deadlines for reporting and filing of payment requests are also be laid down.

The Commission may organise on-the-spot checks in Member States and at the premises of the beneficiaries with a view to verifying in particular (a) the effective implementation of the measures benefitting from the Union financial contribution; (b) the compliance of administrative practices with Union rules; (c) the existence of the requisite supporting documents and their correlation with the measures benefitting from a Union contribution.

Transparency : where appropriate, beneficiaries and Member States concerned shall ensure that suitable publicity is given to financial contributions granted under this Regulation in order to inform the public of the role of the Union in the funding of the measures.

By 30 June 2017, the Commission shall establish a mid- term evaluation report accompanied, if appropriate, by a legislative proposal to amend this Regulation. By 30 June 2022, the Commission shall carry out an ex-post evaluation examining the effectiveness and efficiency of the expenditure and its impact

ENTRY INTO FORCE: 30.06.2014.

DELEGATED ACTS: the Commission shall be empowered to adopt delegated acts in order to supplement the list of animal diseases. The power to adopt delegated acts shall be conferred on the Commission for a period of seven years from 30 June 2014 . The European Parliament or the Council may raise objections to a delegated act within a period of two months from the date of notification (this may be extended by two months). If the European Parliament or Council express objections, the delegated act will not enter into force.

The European Parliament adopted by 548 votes to 13, with 67 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material, amending Council Directives 98/56/EC, 2000/29/EC and 2008/90/EC, Regulations (EC) No 178/2002, (EC) No 882/2004 and (EC) No 396/2005, Directive 2009/128/EC and Regulation (EC) No 1107/2009 and repealing Council Decisions 66/399/EEC, 76/894/EEC and 2009/470/EC.

Parliament adopted its position at first reading under the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement reached between the European Parliament and the Council. They amended the proposal as follows:

Budget : the ceiling for expenditure in relation to food and feed during the whole period 2014 to 2020 is to be EUR 1 891 936 000 at current prices.

The expenditure should aim to attain the general objective of contributing to a high level of health for humans, animals and plants along the food chain and in related areas, by preventing and eradicating diseases and pests and by ensuring a high level of protection for consumers and the environment.

Maximum rates of grants : where the Union financial contribution takes the form of a grant, it should not exceed 50% of the eligible costs. This rate may be increased to 75% of the eligible costs in respect of cross-border activities implemented together by two or more Member States in order to control, prevent or eradicate pests or animal diseases. The maximum rate may be increased to 100% of the eligible costs where the activities benefitting from the Union contribution concern the prevention and control of serious human, plant and animal health risks for the Union.

List of animal diseases and zoonoses : the list of animal diseases and zoonoses which qualify for grants for the eradication, control and surveillance of the animal diseases and zoonoses is set out in the Annex to the Regulation . In order to take account of new scientific or epidemiological developments, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission, in respect of supplementing those lists.

Eligible costs : Union financing for measures in the field of animal and plant health should cover specific eligible costs. In exceptional and duly justified cases, it should also cover the costs incurred by the Member States in carrying out other necessary measures. Such measures may include the implementation of enhanced biosecurity measures in case of outbreak of disease or presence of pests, the destruction and transport of carcasses during eradication programmes, and the costs of compensation to owners resulting from emergency vaccination campaigns.

Co-financing for emergency measures : the amended text provides for the introduction a Union co-financing for the costs incurred by Member States for compensation to owners for the value of destroyed plants, plant products or other objects subject to the measures referred to in Article 16 of Directive 2000/29/EC.

The introduction of Union co-financing requires the development of guidelines on the conditions applicable as regards the limits of the market value of the crops and trees concerned. That introduction should therefore apply only from 1 January 2017.

The Committee on Agriculture and Rural Development adopted the report by Agnès LE BRUN (EPP, FR) on the proposal for a Regulation of the European Parliament and of the Council laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material, amending Council Directives 98/56/EC, 2000/29/EC and 2008/90/EC, Regulations (EC) No 178/2002, (EC) No 882/2004 and (EC) No 396/2005, Directive 2009/128/EC and Regulation (EC) No 1107/2009 and repealing Council Decisions 66/399/EEC, 76/894/EEC and 2009/470/EC.

The committee recommended that Parliament’s position adopted at first reading following the ordinary legislative procedure should amend the Commission proposal as follows:

Budget and initial amount of grants : the Commission proposal provided an overall financial envelope of EUR 1 891, 936 million in current prices for the period from 1 January 2014 to 31 December 2020.

For cost-effectiveness reasons the Commission proposal suggests setting a threshold of EUR 50 000 , below which no grants would be awarded. Members suggested deleting this threshold .

Access to the crisis reserve : Members deleted Article 5 of the Commission proposal that provides for access to be granted to the agricultural crisis reserve in order to respond to emergency situations in the veterinary or plant health sector.

Maximum rates grants : according to the report:

the maximum rate may be increased to 75% of the eligible costs for collective action on plant or animal health for the control, prevention or eradication of pests or animal diseases, carried out by legally-constituted groups of operators or professional organisations comprising persons under public or private law, but excluding pet owners orveterinarians; the maximum rate may be increased to 100% of the eligible costs where the activities concern the prevention and control along the whole food chain of serious human, animal and plant health risks for the Union, based on the criteria referred to in the Regulation and, where appropriate; on an opinion delivered by EFSA.

The Commission should be empowered to adopt delegated acts laying down the criteria to be used to determine what constitutes a serious human, animal or plant health risk for the Union exists.

Lists of animal diseases and zoonoses : the Commission proposed drawing up the list of animal diseases and zoonoses which qualify for a grant by means of an implementing act. Members considered that the list of diseases is an essential element which should be incorporated into the basic act (in an annex) . Furthermore, the possibility should be provided to supplement the list of diseases which qualify for a grant, without the procedure being as demanding as for a basic legal act, hence the use of delegated acts .

Eligible costs : Members proposed to include costs such as those relating to : (i) compensation to owners for the value of their animals slaughtered or culled, within the limit of the normal market value of the animals immediately before any suspicion or confirmation of the disease; (ii) losses due to emergency vaccination campaigns; (iii) the implementation of enhanced biosecurity measures as part of collective action; (iv) the transportation and destroying the contaminated feeding stuffs; (v) the transportation, processing and disposal of carcasses; (vi) the destruction of products of plant origin, within the limit of the value of those plants immediately before their destruction.

Criteria and objectives of actions : the Commission proposes that the objectives pursued and the criteria used to evaluate the national programmes should be set by means of their work programme. However, these objectives and criteria should be established in a more transparent way, using delegated acts.

PURPOSE: to provide for the scope and objectives for food and feed expenditure and to modernise the financial provisions for this area.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Union legislation provides for requirements regarding food and food safety and feed and feed safety, at all stages of production, including rules aimed at guaranteeing fair practices in trade and the provision of information to consumers.

The general objective of Union legislation in those areas is to contribute to a high level of health for humans, animals and plants along the food chain, a high level of protection and information of consumers and a high level of protection of the environment while favouring competitiveness and creation of jobs. The pursuit of that general objective requires appropriate financial resources .

This piecemeal framework is not in line with some provisions of the Financial Regulation and is quite complex. It has evolved over time and it needs to be rationalised.

This is an opportunity to replace the current financial provisions in multiple legal bases by one single, clear and modern financial framework which optimises the implementation and the functioning of financial management of expenditure in the field of food and feed.

IMPACT ASSESSMENT: four options have been considered:

Option 1 : no change. The current legal framework will not be consistent with the Multiannual Financial Framework. Expenditure on plant health could not be increased. Option 2 : bring existing legislation into one legislative instrument. Option 3a : establish a single coherent financial programme, largely using existing financial provisions but with improvements. Option 3b : introduction of aspects of Cost and Responsibility Sharing Schemes (CRSS). Option 4 : stop all EU actions.

Option 3a is the preferred option .

LEGAL BASIS: Articles 43(2) and 168(4)(b) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: this proposal is part of the 'Healthier Animals and Plants for a Safer Food Chain Package'. Its main elements are:

Scope and objectives of costs: the draft Regulation provides for the scope and objectives for food and feed expenditure up to a maximum ceiling of EUR 1 891,936 million in current prices. The objectives are: (i) a high level of safety of food and food production systems; (ii) a higher animal health status and animal welfare; (iii) the detection and eradication of pests; (iv) to ensure an effective implementation of official controls. These objectives are accompanied with their indicators.

Measures and eligible costs : the funding rates for grants are rationalised. A standard funding rate is set at 50% of the eligible costs. This rate can be raised under certain conditions up to 75% and 100%. In order to avoid the administrative burden of the management of microprogrammes, this Regulation sets a minimal amount for grants of EUR 50 000 . This Regulation also provides for the access to the Reserve for crises in the agricultural sector in certain circumstances.

Plant health , in order to protect the EU against pests linked inter alia to trade globalisation and climate change, Union financial contribution will also cover survey programmes for the presence of pests and phytosanitary support measures for the outermost territories of Member States.

Official controls carried out by the Member States : the proposed Regulation provides for the possibility to support Union reference laboratories and projects aimed at improving the effectiveness and efficiency of official controls.

Transparency : this Regulation sets the procedures of submission and evaluation of annual and multiannual control programmes and the procedure for setting or updating the list of animal diseases or plant pests eligible for co-funding.

Simplification : the procedures for financing these areas are simplified. In particular the number of decisions the Commission will have to adopt will decrease significantly. For example, the reimbursement decisions will not be taken by the Commission any more.

Implementing powers : in order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission with regard to the establishment and amendment of the lists of animal diseases and zoonoses which qualify for Union funding, as well as the establishment of work programmes.

BUDGETARY IMPLICATION: on 29 June 2011, the European Commission presented its proposal for a multiannual financial framework for 2014-2020 which was amended on 6 July 2012 . Taking into account the conclusions of the European Council of 7/8 February 2013, the Commission is proposing a maximum amount of EUR 1 891,936 million for expenditure in relation to food and feed during the whole period 2014-2020.

Total appropriations (including human resources and administrative expenditure) is estimated at EUR 1 960 886 million for the whole period.

The Commission may use, on the basis of a cost-benefit analysis, an existing executive agency for the implementation of this Programme.