I am particularly satisfied with the outcome which I secured in regard to degression and modulation. The Commission's proposals represented a serious threat to the level of direct payments in Ireland, which are of such crucial importance to farm incomes. I opposed strenuously the proposed reduction of up to 13% in direct payments to meet future financing needs – the degressivity proposal. The removal of this automatic system of annual reductions in direct payments was a major achievement. The compromise which was agreed requires the Council to review from 2007 onwards the financial situation annually and, if budget deficits arise, to take necessary action. This is a more responsible and reasonable approach.