Financing Challenges and Proposed Solutions for Food Chain Strand in Single Market Programme Budget
Explore the budgetary situation and proposed solutions for the Food Chain Strand in the Single Market Programme. Discover the budget gaps, reduction of co-financing rates, and the way forward to address financing challenges in the food industry.
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Financing of the Food Chain strand of the Single Market Programme Budget situation & proposed way forward Brussels, 21 October 2022 Jeroen Lettens European Commission Directorate General for Health and Food Safety Unit SANTE.A.3 Budget, Finance and Controls
Budget gap for emergency measures taken in 2020/2021 and 2022 Total annual budget available for the Food Chain strand 231.5 M Annual budget needs for eradication programmes (veterinary 107 M and phytosanitary 20 M ) 127.0 M Annual budget needs for other actions under the Food Chain strand of the SMP 79.3 M Budget needs for emergency measures taken in 2020/2021 and 2022 for animal diseases and plant pests (at co-financing rate of 50/75%) 440.9 M Budget gap ; cannot be filled by budget transfers within the SMP or from other budget headings due to the tight overall budgetary situation 415.7 M
Closing the budgetary gap The Commission continues to look into possibilities within the existing EU budget Commission took account of the meeting of the AGRIFISH Council on 17 October 2022 If no financing outside SMP is made available, the newly proposed way forward is as follows 3
Reduction of co-financing rates by 60% from 2023 to 2027 Emergency measures starting from 2023 until 2027 Eradication programmes starting from 2023 until 2027 Co-financing rates Co-financing rates for future emergency measures (2023 to 2027): same changes as in the eradication programmes Current rates Rates reduced by 60% 20%/30% 50%75% Plant pests Animal diseases: Group 1 (AI, ASF, Rabies, Salmonella) No changes for emergency measures taken in 2020/2021 and 2022, even if no grant agreements have been signed yet. 50%75% 30%/45% 16%/24% 12%/18% 100% 20%/30% 12%/18% 0% 0% 100% Group 2 (TSE, Bruc, CSF, LSD, PPR, SGPox) Group 2,1 (Bv TB) Group 2,2 (Bv TB) Third Countries The SMP work programme 2023 would have to include the reduced co-financing rates. The 2023 work programme on eradication measures would have to be amended.
Budgetary effects of the reduced co-financing rates Budget freed up further to the reduction of the co-financing rates in eradication programmes from 2023 to 2027 (78,3 M per year for 5 years) 391.5 M Budget freed from savings in other areas of the SMP Food Chain strand from 2022 to 2027 31.2 M Annual budget allocated to emergency measures in the MFF: 19 M per year from the 2022 to 2027 budgets 114.0 M Total budget becoming available to finance the emergency measures taken in 2020/201 and 2022 for which grant agreements have not yet been signed 536.7 M Budget needs for emergency measures taken in 2020/2021 and 2022 with co- financing rates of 50%/75% 440.9 M
Assessment of the way forward + No retroactive reduction of co-financing rates + Proceed with signature of grants for 2020/2021 and 2022 Emergency Measures, and 2023 national programmes + Possibility to co-finance future outbreaks (2023 to 2027) within the limits of the available budget (19 M per year) - Important financial impact on eradication and phytosanitary programmes starting from 2023 until 2027; - Low co-financing rates of 20%/30% and 12%/18% from 2023 onwards. 6
Next steps - timeline October 2022 - Prepare COM Decisions to amend 2022 and 2023 work programmes for SMP Food Chain strand October 2022 - Present Amendment to PAFF meeting and possibly prepare written procedure for vote Nov/Dec 2022 - Adopt Amendment to COM decision Dec 2022 onwards Start preparations for signature of grant agreements (dual signature) Q1 2023 Make prefinancing payments 7
Amendment 2022 SMP work programme Amendment of COM Implementing Decision C(2022) 724 Draft Amending Budget 05/22 Increase the 2022 budget for SMP Food chain strand with 73,8 million EUR Likely to be combined with amendment for EUROSTAT 2022 work programme 8
Amendment 2023/24 SMP work programme for veterinary and phytosanitary programmes Amendment of Commission Implementing Decision C(2022) 3467 implementation of veterinary programmes for animal diseases and zoonoses and phytosanitary programmes for plant pests under the Single Market Programme Multiannual work programme 2023-2024 Reduction of the co-financing rate by 60%, i.e. 20/30% instead of 50/75% Co-financing rate may be increased, upon availability of resources 9
Work programme for years 2023-2027 relatinf to other actions under the Food Chain strand of the SINGLE MARKET PROGRAMME Annex III of the SMP financing decision work programme related to Food Chain strand actions other than veterinary and phytosanitary programmes Single financing decision for SMP 2023 work programme not yet launched Reduction of the co-financing rates for Emergency measures by 60% as from 2023 Co-financing rate may be increased, upon availability of resources Overview of other grants (EURL and EURCs), actions under procurement, indirect management and other actions Total (estimated) budget for 2023: 231.3 million EUR Reserve funds for years 2024-2027 10
Questions? Thank you for your attention!
