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Table 4.4 Direct payments to agricultural producers in the EU, 2007/08-2011/12
(€ million)
2007/08 2008/09 2009/10 2010/11 2011/12
Other direct aids
Protein crops, olives, hops, legumes, energy crops 223 192 228 59 47

(...) All schemes of direct payments (except the Small Farmers Scheme) are subject to provisions to ensure compliance with basic standards relating to the environment, food safety, animal and plant health and animal welfare (cross-compliance ).

Under the new system of direct payments, farmers may be eligible for payments under a number of different schemes including: the Basic Payment Scheme (BPS) or the SAPS; agricultural practices beneficial for the climate and the environment (Greening); payments for young farmers; payments for areas with natural constraints; redistributive payments; and voluntary support coupled to production. With the exception of voluntary coupled support, eligibility under the BPS or SAPS is a precondition to qualifying for support under the other schemes.

Agricultural practices beneficial for the climate and the environment (Greening)
Each member State is required to allocate at least 30% of the national envelope for direct payments for payments for agricultural practices beneficial for the climate and the environment (Greening) (Table A4.1). To qualify for payments, three basic requirements must be met:
(i) Crop diversification requirements apply to holdings which have more than 10 ha of arable land:
• For holdings of more than 30 ha, at least three crops must be cultivated, the main crop must occupy no more that 75% of the arable area, and the two principal crops must occupy no more than 95% of the arable area; and
• For holdings of 10-30 ha at least two crops must be cultivated, and the main crop must occupy no more than 75% of the arable area;
Or, more than 75% of land eligible for the BPS is permanent grassland, used to grow grass, or laying fallow, provided the remaining arable area is 30 ha or less;
(ii) The ratio of the area under permanent grassland to total agricultural area in each member State or region must not decline by more than 5% compared to a reference based on 2012 data. In addition, each member State is required to designate environmentally sensitive permanent grassland areas which may not be converted or ploughed; and
Each holding must include an ecological focus area (EFA) of at least 5% (possibly increasing to 7%) of the arable area for a farm with an arable area of more than 15 ha which could include land left fallow, or land used for terraces, hedges, buffer strips, forestry, green cover, or nitrogen-fixing crops.

Alternatively, farmers meeting the requirements for organic production as set out in Regulation (EC) No. 834/2007 are deemed to be entitled to greening payments for the land under organic production.

For measures to address foot-and-mouth disease the EU is to provide 60% of the total funds, for other measures relating to disease control or loss of consumer confidence due to public, animal or plant health risks the EU is to provide 50%. Other measures which may be taken to react to severe imbalance in markets include (...) measures to address the spread of pests and diseases or the effects of natural disasters.

Although the general objective of Pillar II is rural development, some of the programmes and measures permitted under Regulation (EU) No. 1305/2013 are targeted at farmers and intended to improve efficiency (e.g. investments in physical assets), productivity in the sector (e.g. aid for young farmers), and risk reduction (e.g. aid for restoring production potential after damage by natural disasters, subsidies for insurance premiums, and income stabilization).

Producer organizations remain the focus of support for the fruits and vegetables sector. To receive funding, a producer organization must be recognized by the authorities of the member State by meeting criteria, including a three to five year operational programme that meets some of the objectives set out in Regulation (EU) No. 1308/2013, Article 33. The operational programme should be funded by an operational fund financed by contributions from the member States or the producer organization itself, with EU assistance limited to 50-60% of the total fund, and at least 10% of spending under an operational programme must cover environmental actions. (...)

At national level, member States generally provide for different types of authorizations for the opening of retail outlets. Some relate to the compliance of the premises with defined requirements or are linked to the sale of certain products (food, alcohol, tobacco, etc.) others are directly linked to the retail activity. As far as the type of authorization is concerned, two groups of member States can be distinguished: on the one hand, member States such as Germany, Ireland, the Netherlands, Poland, Slovakia, and Slovenia, that rely on general planning provisions and building permits, and which at times resort to partnerships between private investors and public authorities, and, on the other hand, member States such as Romania, Italy, Austria, Belgium, Spain, France, and Greece which apply, in addition to the planning provisions/and building permits, a specific prior authorization procedure to establish retail outlets. There are further differences within these two groups and priorities may vary: the protection of the environment, the vitality of city centres, diversity of offers etc.

On 31 January 2013, the Commission adopted its European Retail Action Plan (ERAP). The Plan describes the challenges faced by the sector (financial crisis, ageing population, development of e-commerce, sustainability challenges and remaining regulatory barriers to a better functioning of the internal market) and suggests a series of actions, mostly of a non-legislative nature, to address these challenges: (...) sustainability; (...)