Financial Discipline for 2016

The EU Commission is proposing toreduce all Basic Payments in 2016 by 1.37%.  This is under the ‘Financial Discipline’ measure which is mainly used to create a ‘Crisis Reserve’.  The figure is slightly lower than the 1.39% applied to 2015 Basic Payments (on those amounts over €2,000).  As the name suggests, the Crisis Reserve is designed to allow the EU to cope with unexpected events in agricultural markets  Despite problems in many sectors over the last few years, the Reserve has never been used – other sources of funds have been found to address problems.  Therefore the money deducted has been paid back to BPS claimants the following year.  This may be less likely to happen in future with greater calls on the entire EU budget.