Article 14 of EU Regulation No. 1307/2013 (Direct Payments Regulation) and Article 58 of EU Regulation No. 1305/2013 (Rural Development Regulation) allow Member States to transfer up to 15% of Pillar 1 funds to Pillar 2 and vice versa on an annual basis. Member States with direct payments per hectare less than 90% of the EU average may transfer up to 25% from Pillar 2 to Pillar 1 on an annual basis.
Funds transferred from Pillar 1 to Pillar 2 are not required to be co-financed. Ireland has not to date availed of this provision in the Regulations.