Commission Implementing Regulation (EU) No 367/20142 sets the net balance available for European Agricultural Guarantee Fund (EAGF) expenditure, as well as the amounts available for the budget years 2014 to 2020 for the European Agricultural Fund for Rural Development (EAFRD), pursuant to Article 10c(2) and Articles 136, 136a and 136b of Council Regulation (EC) No 73/20093 and to Article 14 and Article 66(1) of Regulation (EU) No 1307/2013 of the European Parliament and of the Council4.

In accordance with Article 7(2) of Regulation (EU) No 1307/2013, the estimated product of the reduction of payments notified by Member States by 1 August 2014 and referred to in Article 11(6) of that Regulation is to be made available as Union support for measures under rural development programming financed under the EAFRD as specified in Regulation (EU) No 1305/2013 of the European Parliament and of the Council5. The relevant national ceilings were adapted through Commission Delegated Regulation (EU) No 1378/20146.

In the United Kingdom, the legislation implementing the Union rules on direct payments in Wales has been quashed by a national court order. As a consequence, new decisions were taken by the United Kingdom for the implementation of direct payments in Wales and notified to the Commission. As those new decisions affect the estimated product of the reduction of payments for the United Kingdom referred to in Article 11(6) of Regulation (EU) No 1307/2013, Annex I to Regulation (EU) No 1305/2013 and Annex III to Regulation (EU) No 1307/2013 were adapted through Commission Delegated Regulation (EU) 2016/1427.

In accordance with Article 3(1) of Council Regulation (EU, Euratom) No 1311/20138, the sub-ceiling for market related expenditure and direct payments of the multiannual financial framework set out in Annex I to that Regulation is to be adjusted under the technical adjustment provided for in Article 6(1) of that Regulation following the transfers between the EAFRD and direct payments.