The proposal tabled by the EU Commission provides for progressive reductions on payments in excess of €150,000 to any one farmer and sets a mandatory cap on individual payments of €300,000 or more. These reductions and caps are net of the greening payment and salary costs and would not have any practical implications for Ireland. The Commission proposal does not provide flexibility for Member States to set individual national limits. However, in agreeing the EU multiannual financial framework for the next EU budget last week, the European Council decided to make capping optional for Member States.
Of course, this does not automatically give Member States the option to fix ceilings on individual payments at a national level. This is an issue that EU Agriculture Ministers will have to consider over the course of the coming weeks in the light of the MFF agreement and the clarity provided concerning the overall budget for EU direct payments and national allocations.
For my own part, I have stated before in this house that I would have no difficulty with a cap on payments of approximately €100,000. However, and particularly in view of our role as Presidency, I recognise that we must find a common solution across the European Union which all Member States can accept and live with. I also need to ensure that the flexibility countries are given in relation to the capping issue suits Ireland.
I will be consulting with colleagues in the Council, Commission and European Parliament over the coming weeks with a view to arriving at a formula that is acceptable to the Commission and all Member States, including Ireland.
