Introduction Following the Rural Development Regulation agreed in Sept 2005, the new RD policy for the period is characterised by continuity and incremental changes The new policy kept the 3 core objectives defined for the period: –Axis 1: Competitiveness –Axis 2: Environment + Land Management –Axis 3: Economic Diversification + Quality of Life Main changes were aimed at simplifying and streamlining the conditions under which the measures can be implemented

Broader scope of measures Though the 3 axes remain the same, the socio- economic field covered is larger with the number of measures increasing from 22 in the period to more than 30 measures in order to address a wider rural population, i.e going beyond the agricultural sector. Axis 1; competitiveness; increased focus on the quality of production and products (3 new measures) Axis 2; Land Management; new measures around the sustainable use of forestry lands Axis 3; Wider Rural Development; –New measure to support micro-enterprises in the scope of eco diversification –Introduction of training and animation programmes

Bottom-up approach 1/2 Member States (MS), regions and local action groups (LAGs) have more say in attuning programme to local needs 1. Introduction of a minimum level of funding for each of the 3 axis: 10% for Axis 1, 25% for Axis 2 and 10% for Axis 3 –These minimum funding percentages are a safeguard to ensure that the programme of each MS reflects at least the 3 main objectives –They have been set low in order to provide MS with a high margin of flexibility (55% of EU funding) to emphasize the policy axis they wish in function of their situation and their needs –They leave MS free to personalise their own balance between “agricultural restructuring” and “land management and socio- economic development of rural areas”

Bottom-up approach 2/2 2. LEADER Axis What is the Leader Approach ? The Leader Approach supports the creation of Local Action Groups (LAGs) in charge of drawing up and implementing sustainable rural development strategies for local rural areas From what was a community initiative in the period, the leader model is now an obligatory element to be implemented by the Member States

Streamlining of funding and control The 2 funds EAGGF Guidance and Guarantee which were financing the measures during the period have been merged into a new single fund, EAFRD, in charge of financing all rural development measures in all rural regions A common and single monitoring and evaluation system has been developed, agreed and established between the Commission and the Member States in order to increase control and the delivery of policy –Commission can reduce or suspend payments –Clearance of accounts and the conformity clearance instruments used to verify the sums spent by the Member States

New Financial Perspective EU maximum co-financing rate is 50% for Axis 1 and Axis 3 ad 55% for Axis 2 for the new period –Convergence regions (per capita GDP < 75% of EU average) receive preferential rates; 75% for Axis 1 and 3 and 80% for Axis 2 Within the new financial perspective for the period , the Commission allocated €69.8bn to rural development. Resources available to Member States for RD will diminish, with the annual budget decreasing from €10.54bn in 2006 down to €10.05bn in 2013 However each MS can implement voluntary modulation by transferring additional sums from direct payments up to a max rate of 20% to allocate them to RD