L 314/10 Official Journal of the European Union 30.11.2005 COMMISSION REGULATION (EC) No 1954/2005 of 29 November 2005 amending Regulation (EC) No 796/2004 laying down detailed rules for the implementation of cross- compliance, modulation and the integrated administration and control system provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and derogating from Regulation (EC) No 1782/2003 as regards payment of the aid THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (), and in particular of Articles 28(3) and 145(c) thereof, Whereas: (1)  Commission Regulation (EC) No 796/2004 (%) lays down the method for the calculation of the various reductions that may have to be applied in respect of direct aid governed by Regulation (EC) No 1782/2003. That method needs to be clarified. To this end, the sequence for the calculation of potential reductions should be determined. (2) Articles 64, 70, 71 and 143b of Regulation (EC) No 1782/2003 provide for the fixing of budgetary ceilings by the Commission for each of the direct payments concerned. Provision should be made in order to determine whether and to which extent those budgetary ceilings are overshot. In so doing, it should be avoided that the consequences of irregularities attri- butable to individual aid applicants affect the calculation of such overshoot. (3)  Articles 10 and 11 of Regulation (EC) No 1782/2003 provide for reductions and, as the case may be, adjustments of all direct payments to be granted in () O] L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 118/2005 (O] L 24, 27.1.2005, p. 15). () OJ L 141, 30.4.2004, p. 18. Regulation as last amended by Regu- lation (EC) No 436/2005 (O] L 72, 18.3.2005, p. 4). respect of a calendar year due to modulation and financial discipline, respectively. The respective imple- menting provisions need to be adapted to the new sequence of calculation of reductions in the process of calculating the amount of the payments to be made to farmers. Article 79 of Regulation (EC) No 796/2004 sets out the method for determining whether the threshold of EUR 5 000 referred to in Article 12 of Regulation (EC) No 1782/2003 has been reached. Due to the new sequence of calculation of reductions, that method should be adapted. Several Member States are facing various difficulties in the finalisation of the measures necessary for the appli- cation of aid schemes introduced by Regulation (EC) No 1782/2003. In such cases, Member States should therefore be authorised, by way of derogation from Article 28(2) of Regulation (EC) No 1782/2003, to grant payments in two instalments. However, in order to protect the financial interests of the Community, Member States should grant the first instalment only up to an amount for which eligibility has already been established and for which it is clear that it is not higher than the overall amount to be paid. As a result of the change in the sequence of calculation of the reductions in the process of calculating the amount of the direct payments, certain Member States need to adapt their systems for the administration of the aid schemes concerned. In order to avoid that such adap- tations lead to delays as regards payments in respect of the year 2005, Member States should, as regards certain aid schemes, therefore be authorised to start to apply the new sequence of the calculations of the reductions for the first time with regard to aid applications submitted in respect of the year 2006. The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Direct Payments,