Direct payments will be phased in in the new member states over a ten year period. The first 25% of the level applicable in the Union of 15 will apply in 2004 followed by three increments of 5% in the next three years and, from 2008, by an annual increment of 10%, reaching 100% in 2013. This approach is designed to minimise the economic distortion that would in many cases result from sudden huge increases in income and avoid discouraging the restructuring of agriculture which will be necessary in many of the new member states.