Background Pillar 2 Financing of the CAP
64.For many years, the CAP was financed from a single fund, the European Agricultural Guidance and Guarantee Fund (EAGGF). On 1 January 2007, the EAGGF was replaced by two funds which form part of the EU’s general budget: the European Agricultural Guarantee Fund (“the EAGF”) which finances measures under Pillar 1, and the European Agricultural Fund for Rural Development (EAFRD) which finances measures under Pillar 2.
65.The legal basis for the setting up of the funds is Article 40(3) of the TFEU.
66.The Financial Memorandum(19) that accompanied the Bill for this Act explains how the CAP has been funded in Scotland.