TITLE IIGENERAL PROVISIONS
CHAPTER 2MODULATION AND FINANCIAL DISCIPLINE
Article 10Modulation
1.
All the amounts of direct payments to be granted in a given calendar year to a farmer in a given Member State shall be reduced for each year until 2012 by the following percentages:
2005: 3 %,
2006: 4 %,
2007: 5 %,
2008: 5 %,
2009: 5 %,
2010: 5 %,
2011: 5 %,
2012: 5 %.
2.
The amounts resulting from application of the reductions provided for in paragraph 1, after deducting the total amounts referred to in Annex II, shall be available as additional Community support for measures under rural development programming financed under the EAGGF ‘Guarantee’ Section according to Regulation (EC) No 1257/1999.
3.
The amount corresponding to one percentage point shall be allocated to the Member State where the corresponding amounts have been generated. The remaining amounts shall be allocated to the Member States concerned in accordance with the procedure referred to in Article 144(2) on the basis of the following criteria:
agricultural area,
agricultural employment,
gross domestic product (GDP) per capita in purchasing power.
However, any Member State shall receive at least 80 % of the total amounts which the modulation has generated in that Member State.
4.
By way of derogation from the second subparagraph of paragraph 3, if in a Member State the proportion of rye as part of its total cereal production exceeded 5 % on average during the period 2000-2002 and its proportion of the total Community production of rye exceeded 50 % during the same period, at least 90 % of the amounts which the modulation generated in the Member State concerned shall be reallocated to that Member State, until 2013 included.
In such a case, without prejudice to the possibility provided for by Article 69, at least 10 % of the amount allocated to the Member State concerned shall be available for measures referred to in paragraph 2 of this Article in rye producing regions.
For the purpose of this paragraph, ‘cereals’ mean the cereals referred to in Annex IX.
5.
Paragraph 1 shall not apply to direct payments granted to farmers in the French overseas departments, in the Azores and Madeira, in the Canary and Aegean islands.