Fact Sheet on the European Union
The 2003 reform and the 2009 Health Check decoupled most direct aid and transferred it to the new single payment scheme (SPS) or the single area payment scheme for new Member States. A new regulation, Regulation (EU) No 1307/2013, defines the direct payments system with effect from 1 January 2015.
Articles 38 to 44 of the Treaty on the Functioning of the European Union (TFEU), Regulation(EU) No 1306/2013 (OJ L 347, 20.12.2013, p. 549) and Regulation (EU) No 1307/2013(OJ L 347, 20.12.2013, p. 608).
The CAP for the period 2014-2020 maintains the existence of two pillars but tightens up the links between them, thus offering a more holistic and integrated approach to policy support. Specifically, it introduces a new architecture for direct payments that is better targeted, fairer and greener. Regulation (EU) No 1307/2013 repeals Council Regulation (EC) No 637/2008and Council Regulation (EC) No 73/2009. It provides a single legal basis and lays down comprehensive rules for direct payments to farmers.
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SOURCE: European Parliament Website