EUROPEAN-SEED.COM I EUROPEAN SEED I 23 (EAFRD). These agricultural funds are complemented by addi- tional funding from Horizon Europe, as the proposed envelope for this program includes €10 billion to support research and innovation in food, agriculture, rural development and the bio economy (Fig. 2). In regard to the distribution of the direct payments among member states, it is proposed that all member states with direct payments below 90% of the EU average will see a continuation of the process started in the period of 2014-2020 and will close 50% of the existing gap to 90%. All member states will contribute to financing this exter- nal convergence of direct payment levels. The member states’ allocations for direct payments in the CAP Strategic Plan regu- lation are calculated on this basis. Furthermore, a certain level of flexibility for transfers between allocations will be offered to the member states. Up to 15% of respective direct payments can be transferred to EAFRD allocation and vice versa. For rural development, it is proposed to rebalance the financing between the EU and member states’ budgets. In line with what is foreseen for the European Structural and Investment Funds, an increase in national co-financing rates will allow keeping public support to European rural areas largely unchanged. But the main novelty of the new CAP after 2020 con- cerns the "new delivery model", where the Union sets the basic policy parameters (objectives of the CAP, broad types of inter- vention, basic requirements), while member states bear greater responsibility and are more accountable as to how they meet the objectives and achieve agreed targets (Fig. 3). A shift towards a more performance-oriented policy requires the establishment of a solid performance framework that will allow to assess and monitor the performance of the policy. The current Common Monitoring and Evaluation Framework (CMEF) and the current monitoring system of Direct Payments and Rural Development would be used as a basis for monitoring and assessing policy performance, but they will have to be streamlined and further developed (including consistency between the two pillars). Further investment into developing appropriate indicators and ensuring sufficient data streams would be needed. A new Performance Monitoring and Evaluation Framework (PMEF) will cover all instruments of the future CAP: the CAP Strategic Plans as well as those elements of the CAP not covered by the CAP Strategic Plans (some parts of the Common Markets Organisation, specific schemes). Performance would be meas- ured in relation to the Specific Objectives of the policy by using a set of common indicators. In any case, the instruments of the Common Market Organisation are unchanged. FIG 3. THE NEW STRUCTURE The EU sets goals and parameters The Member State defines the strategic plan (national or regional) The European Union evaluates, approves and controls The EU agricultural sector is more complicated than other sectors due to small farms managed by family farmers, and part-time activity. FIG. 2 DISTRIBUTION OF THE CAP BUDGET AFTER 2020 365 billion 20 billion market measures 266,2 billion direct payments 78,8 billion rural development 10 billion research and innovation