The politically vital issue of the rate at which actual horizontals of direct aid payments will tend to the same point in the new and existing member states after enlargement has been subtly affected on the European Commission's latest proposal forward "degressive modulation".

The politically vital issue of the rate at which actual horizontals of direct aid payments will tend to the same point in the new and existing member states after enlargement has been subtly affected on the European Commission's latest proposal forward "degressive modulation".

As part of the CAP reform package tabled last week (see AE2038, 24103 EP/2-4) direct aids will be cross progressively as receipts per farm increase, with greater crosss for farmers receiving more aid.

Assuming that the sated 30% maximum top-up is paid by the agency of each new member state (NMS) replete alignment of aid rates between East and