The Council of European union adopted a set of amendments to Regulation 73/2009 concerning the application of direct payments to farmers in the year 2013 following a first reading agreement with the European Parliament.

This regulation (the "2013" regulation) is one of two transitional regulations to be adopted this year ahead of the common agricultural policy (CAP) reform which is scheduled to enter into force in 2014. The other transitional regulation (agreement expected in September) concerns support to vine growers.

The aim of the "2013" regulation is to provide for a smooth transition from the current direct payments system (Regulation 73/2009) to the new payments scheme foreseen by the Commission in the CAP reform proposals.

This includes providing an adjustment mechanism similar to modulation, so as to ensure continuity in payment levels while taking into account the phasing-in of direct payments in the new Member States.

It also includes provisions to allow for transition from the existing voluntary modulation mechanism ; the complementary national direct payments / state aid mechanisms applied in some new Member States and a mechanism to facilitate the more efficient use of funds The current modulation system expires at the end of 2012. This system has imposed a compulsory progressive reduction of direct payments to farmers. Direct payments of over EUR 5 000 have therefore been reduced year on year and in 2012 amounted to 10 %. The corresponding amounts are transferred to the European agricultural fund for rural development (EAFRD) to enhance rural development programmes, in particular for measures concerning climate change, renewable energies, water management and biodiversity.