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This was a mechanism that was introduced in the 2003 reform of the Common Agricultural Policy and modified in the health check of 2009. It allowed for the reduction of direct payments and the transfer of the money thus ʽsavedʼ from pillar 1 (European Agricultural Guarantee Fund) to pillar 2 (European Agricultural Fund for Rural Development).
Modulation, as such, was not an element of the 2013 reform. Similar elements, however, exist in the form of degressivity, capping and transfers between pillars.

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