Pillar Transfers

Seven countries out of the total EU membership of 28 will use the Pillar Transfer mechanism under the reformed CAP.  This allows money to be shifted between Pillar 1 (SPS/BPS) and Pillar 2 (Rural Development).  The rates for the four regions of the UK were set out in our article last month.  However, the Northern Irish rate has since changed from 7% to 0% due to a political argument within the Stormont administration.  The overall rate for the UK is put at 10.76%.  Whilst the UK is shifting funds from Pillar 1 to Pillar 2 to boost Rural Development, some countries are operating ‘reverse’ transfers.  These tend to be newer Member States in the East that have large RD allocations but lower Direct Payments.  The table below summarises the situation.  Any countries not included are not using the transfer mechanism.