Financial discipline

1.   An adjustment rate for interventions in the form of direct payments referred to in Article 5(2), point (c), of this Regulation and for the Union financial contribution to direct payments under Chapter IV of Regulation (EU) No 228/2013 and Chapter IV of Regulation (EU) No 229/2013 for the specific measures referred to in Article 5(2), point (e), of this Regulation (‘the adjustment rate’) shall be determined by the Commission where the forecasts for the financing of the interventions and measures financed under the corresponding sub-ceiling for a given budgetary year indicate that the applicable annual ceilings will be exceeded.
The adjustment rate shall apply to payments to be granted to farmers for the interventions and specific measures referred to in the first subparagraph of this paragraph exceeding EUR 2 000 for the corresponding calendar year. For the purposes of this subparagraph, Article 17(4) of Regulation (EU) 2021/2115 shall apply
mutatis mutandis
.
The Commission shall, by 30 June of the calendar year in respect of which the adjustment rate applies, adopt implementing acts fixing the adjustment rate. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).
2.   Until 1 December of the calendar year in respect of which the adjustment rate applies, the Commission may, on the basis of new information, adopt implementing acts adapting the adjustment rate set in accordance with paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).
3.   Where financial discipline has been applied, the appropriations carried over in accordance with Article 12(2), point (d), of the Financial Regulation shall be used to finance expenditure under Article 5(2), point (c), of this Regulation, to the extent necessary to avoid the repeated application of financial discipline.
Where appropriations to be carried over in accordance with the first subparagraph remain available and the overall amount of non-committed appropriations available for reimbursement represents at least 0,2 % of the annual ceiling for EAGF expenditure, the Commission may adopt implementing acts setting out per Member State the amounts of non-committed appropriations to be reimbursed to final beneficiaries. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).
4.   The amounts set by the Commission in accordance with paragraph 3, second subparagraph, shall be reimbursed to final beneficiaries by Member States in accordance with objective and non-discriminatory criteria. Member States may apply a minimum threshold of amounts of reimbursement per final beneficiary. That reimbursement shall apply only to final beneficiaries in those Member States where financial discipline applied in the preceding financial year.
5.   The Commission is empowered to adopt delegated acts in accordance with Article 102 which are necessary in order to ensure the coherent application of the financial discipline in the Member States, supplementing this Regulation with rules for calculating the financial discipline to be applied by Member States to farmers.