Council Regulation (EC) No 1268/1999 of 21 June 1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre- accession period
26. 6. 1999 EN Official Journal of the European Communities L 161/87 COUNCIL REGULATION (EC) No 1268/1999 of 21 June 1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof, Having regard Commission (1), to the proposal from the Having regard to the opinion of Parliament (2), the European Having regard to the opinion of the Economic and Social Committee (3), Having regard to the opinion of the Committee of the Regions (4), (1) Whereas the the European conclusions of Council of 12 and 13 December 1997 provide for an enhanced pre-accession strategy for the applicant countries of central and eastern Europe and a specific pre-accession strategy for Cyprus; (2) Whereas the the European conclusions of Council provide that the aid provided for in this Regulation be granted for the time being to the 10 applicant countries of central and eastern Europe; (3) Whereas the Community has decided to provide special assistance in the form of pre-accession aid for the countries applying for accession in order to carry out action to support the current economic and social reform process in those countries and to prepare and facilitate the the integration Community economy; economies their into of (1) OJ C 175, 9. 6. 1998, p. 7 and OJ C 27, 2. 2. 1999, p. 18. (2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal). (3) OJ C 101, 12. 4. 1999. (4) OJ C 93, 6. 4. 1999. assistance together with (4) Whereas assistance from the Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession from the period Community under Council Regulation 1267/ 1999 of 21 June 1999 establishing an Instrument for Structural Policies for Pre-accession (5) should be coordinated within the framework of Council Regulation 1266/1999 of 21 June 1999 on coordinating aid to the applicant countries in the framework of the pre-accession strategy and amending Regulation (EEC) No 3906/89 (6) and to the conditional provisions of be subject Council Regulation (EC) No 622/98 of 16 March 1998 on assistance to the applicant countries in the framework of the pre-accession strategy, and in particular on the establishment of Accession Partnerships (7); to the (5) Whereas paragraph 17 of the conclusions of the Luxembourg European Council of 12 and financial 13 December 1997 provides involved in the support in the enlargement process will be based, allocation of aid, on the principle of equal treatment, of accession, with particular attention being paid to countries with the greatest need; independently countries time that the of (6) Whereas the Community pre-accession aid has to to resolve priority be decided in particular problems the applicant countries in a sustainable manner and facilitating the implementation by them of the acquis communautaire, focusing in particular on the common agricultural policy (CAP); in adapting the economies of (7) Whereas pre-accession aid for agriculture should follow the priorities of the reformed CAP; whereas such aid should be applied to priority areas to be defined for each country, such as the (5) See page 73 of this Official Journal. (6) See page 68 of this Official Journal. (7) OJ L 85, 20. 3. 1998, p. 3. L 161/88 EN Official Journal of the European Communities 26. 6. 1999 of for improvement processing structures agricultural and fishery products, distribution, quality control of food as well as veterinary and setting-up of plant-health controls and the should also be producer groups; whereas possible to finance integrated rural development initiatives and agri- projects to support local environmental measures, the improve efficiency of farms, to adapt infrastructure as well as measures which will accelerate structural reconversion; to it (8) Whereas, in the sector, agricultural the Community support will be implemented in the form of multiannual programmes established in accordance with the guidelines and the principles of the operational programmes applied in the to framework of facilitate the implementation of the principles and procedures in force; structural policy in order the applicant countries in (9) Whereas, in accordance with Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds (1), assistance can only be granted for any measure financial from one Community instrument within a given period, subject in the case of the European Investment Bank (EIB) to its own rules on the provision of assistance; (10) Whereas Community funds should not replace funding available in each applicant country and constitutes a whereas Community assistance financial completion of projects; contribution to the (11) Whereas pre-accession aid in the agricultural sector has to be granted in the form of a financial contribution and subject to the specific financial rules established by Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (2); (12) Whereas the allocation to applicant countries of resources fixed by the budget authority in the preamble of this instrument should take full account of national prosperity on the basis of the agricultural gross domestic product, of workforce, of utilised agricultural area and, if necessary, of specific territorial particularities; (13) Whereas applicant countries should submit their plans as quickly as possible in order to avoid delaying the implementation of the pre-accession measures from 1 January 2000; implementation (14) Whereas the drawing-up of those programmes, follow-up their should comply with the specific mechanisms Structural Fund rules and thus facilitate the transfer of the acquis communautaire; and the (15) Whereas a detailed ex-ante assessment should be carried out before Community resources are commited in order to ensure that the programme complies with real needs, to permit flexibility in the implementation of Community intervention to take account of the relevant information and the the measures, and to strengthen the monitoring and ex-post evaluation to ensure the effectiveness of the anticipated impact; results of first (16) Whereas provision should be made for a monitoring committee to assist the Commission with the follow-up to each programme; (17) Whereas the necessary decisions should be adopted in accordance with the procedure laid down in Article 50(2) of Regulation (EC) No 1260/1999 and for specific financial items in accordance with the procedure laid down in Article 13 of Regulation (EC) No 1258/1999; (18) Whereas reports should be submitted to the the Economic and Parliament, the Social Committee and the Committee of Regions the progress implementation of agricultural pre-accession aid; the Council, achieved on in (19) Whereas, during transitional period the (1 January 1999 to 31 December 2001) all reference to the euro should as a general rule be considered as a reference to the euro as a in accordance with the second monetary unit, sentence of Article 2, of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (3); (20) Whereas the implementation of these measures will help to achieve the Community’s aims; whereas the Treaty does not provide for the adoption of this Regulation powers other than those laid down in Article 308, (1) See page 1 of this Official Journal. (2) OJ L 160, 26. 6. 1999, p. 103. (3) OJ L 139, 11. 5. 1998, p. 1. 26. 6. 1999 EN Official Journal of the European Communities L 161/89 HAS ADOPTED THIS REGULATION: TITLE 1 OBJECTIVES AND TYPES OF MEASURES Article 1 Objectives — development and diversification of economic activities, providing for multiple activities and alternative income, — setting up farm relief and farm management services, — setting up producer groups, — renovation and development of villages and the protection and conservation of the rural heritage, 1. This Regulation establishes the framework for Community support for sustainable agriculture and sustainable rural development for the pre-accession period for the following applicant countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. — land improvement and reparcelling, — establishment and updating of land registers, — improvement of vocational training, Community support comply with the 2. conditions laid down in the framework of accession partnerships and shall relate in particular to: shall (a) contributing to the implementation of the acquis common communautaire agricultural policy and related policies; concerning the (b) solving priority and specific problems for the sustainable adaptation of the agricultural sector and rural areas in the applicant countries. Article 2 Measures In accordance with the priorities defined by the applicant countries and as defined in Article 4(3), support for agriculture and rural development shall the following measures, relate to one or more of which shall be consistent with the relevant acquis communautaire: — investments in agricultural holdings, — development and improvement of rural infrastructure, — agricultural water resources management, including afforestation of agricultural — forestry, investments in forest holdings owned by areas, private and and marketing of forestry products, processing owners forest — technical assistance for the measures covered by including studies to assist with this Regulation, the the programme, information and publicity campaigns. and monitoring preparation of TITLE II ASSISTANCE Article 3 — improving the processing and marketing of agricultural and fishery products, Complementarity and technical assistance — improving the structures for quality, veterinary the quality of and plant-health controls, foodstuffs and for consumer protection, for — agricultural production methods designed to and maintain the environment protect the countryside, shall action The Community 1. complement corresponding national actions or contribute to these. It shall be established in close collaboration between the Commission, the applicant country, the competent authorities and bodies and the economic and social partners at the appropriate level. Such cooperation shall implementation including financing and appraisal, monitoring and evaluation of the measures. cover preparation, L 161/90 EN Official Journal of the European Communities 26. 6. 1999 In the framework of the technical assistance, the 2. take initiatives and measures to Commission shall ensure that the Community measures supports the priority objectives referred to in Article 1 and bring added value to national initiatives. Article 4 Programming 1. Measures for agriculture and sustainable rural development under this Regulation shall be the subject of a plan to be drawn up at the most appropriate geographical level. The plan shall be prepared by the competent authorities designated by the applicant country and shall be submitted by those countries to the Commission after the competent authorities and organisations at the appropriate level have been consulted. The plan shall cover a period of up to seven to the 2. years application of Article 1(2), shall include: from the year 2000 and subject — a quantified description of the current situation showing disparities, shortcomings and potential the main results of previous for development, operations Community assistance, the financial resources deployed and the evaluation results available, undertaken with — where appropriate, information on the need for technical assistance preparation, the measures any studies, operations the relating implementation or adaptation of concerned, training or to — the names of the competent authorities and bodies the programme, responsible for carrying out including the paying agency, — a definition of final beneficiaries’, which may be organisations, or public or private undertakings responsible for conducting the operations. In cases where public aid is granted by other authorities entrusted there with by the applicant countries, the final beneficiaries shall be the institutions deciding the granting of the public aid, — a description of the measures contemplated for implementing the plans, and in particular aid schemes, including the points necessary for assessing the rules of competition, — provisions ensuring correct implementation of the programme, including monitoring and evaluation and the definition of quantified indicators for evaluation and the arrangements for controls and penalties, — the results of and provisions consultations adopted for associating competent authorities and bodies as well as appropriate economic, social and environmental partners. — a description of its quantified objectives, the priorities selected and the geographical scope, strategy proposed, the — a prior appraisal environmental showing economic, including effects on employment, the and social anticipated impact, the national, the Community — an indicative overall financial table summarising and, where the appropriate, resources provided for and corresponding to each rural development priority adopted in the context of if necessary, measures the plan, including, financed by the EIB and other international financial instruments, financial private — an indicative financial profile for each year covered by the programming period for each source contributing to the programme, In their plans, applicant countries shall ensure 3. that priority is given to measures to improve market efficiency, quality and health standards and measures to create new employment in compliance with the provisions on the protection of the environment. in rural areas, 4. Unless otherwise agreed with the applicant country, the plan shall be submitted not later than six months after the entry into force of this Regulation. 5. On the basis of each applicant country’s plan, a Programme for Agriculture and Rural Development shall be approved by the Commission in accordance with the procedure laid down in Article 50(2) of Regulation (EC) No 1260/1999 within six months of the submission of relevant In particular the Commission shall appraise the proposed plan to determine whether this is Regulation. the plan, on condition that all information is available. consistent with it 26. 6. 1999 EN Official Journal of the European Communities L 161/91 The programme may, if necessary, be revised and 6. amended as a result: — of socioeconomic development, relevant new information and the results observed from the concerned, implementation the and including the evaluation, as well as the need to adjust the amounts of aid available, of monitoring of results actions — in view of actions taken in the framework of the national the acquis the adoption of partnership accession for programme communautaire, and the Measures financed under this Regulation shall comply the Europe Agreements, with the provisions of including those the agreements with regard to State aids. implementing provisions Measures financed under this Regulation shall comply with the objectives of the CAP, in particular those relating to common market organisations, and of Community structural measures. They shall not cause commercial disruption. TITLE III — of a reallocation of resources as laid down in FINANCIAL PROVISIONS Article 15. Article 5 Ex-ante appraisal, monitoring and evaluation 1. In order to assess their effectiveness, support for measures included in the programme shall be subject to prior and mid-term appraisal, on-going monitoring and ex-post evaluation designed to appraise the success and impact with respect to the defined objectives. 2. The Commission and the applicant country shall monitor the implementation of the programme. Such monitoring shall be carried out by way of jointly agreed procedures. Monitoring shall be carried out by reference to specific financial indicators agreed and established beforehand. environmental physical and shall Applicant countries submit annual progress reports to the Commission not later than the end of the first six months of the following year, which shall information referred to in contain at Article 37 of Regulation (EC) No 1260/1999. least the 3. A monitoring committee shall be established for each rural development programme in compliance with Article 35 of Regulation (EC) No 1260/1999. Article 7 Resources Community assistance under 1. this Regulation shall be granted during the period from 2000 to 2006. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspective. financial The Community for 2. carrying out the rural development programme shall be granted in the form of advances, part-financing and financing in accordance with the principles laid down in Article 30 of Regulation (EC) No 1260/1999. contribution Payments of financial assistance may take the form of advances implementation and of for programme payments against expenditure incurred. The financial 3. allocation to each applicant country for pre-accession aid under this instrument shall be based on the following objective criteria: — farming population, — agricultural area, Article 6 Compatibility — gross domestic product (GDP) per capita in purchasing power, — specific territorial situation. Measures granted Community support shall comply with the commitments adopted in the Accession Partnership and shall be consistent with the principles of the national programme for the adoption of the acquis communautaire. For the period referred to in Article 4(2), up to 4. 2 % of the annual allocation of funds may be devoted to financing the measures taken on the initiative of the Commission for preliminary studies, exchange visits, evaluations and controls. L 161/92 EN Official Journal of the European Communities 26. 6. 1999 Article 8 Article 10 Rate of Community contribution Reduction, suspension and cancellation of aid The Community contribution may amount to up 1. to 75 % of the total eligible public expenditure. For measures referred to in the last indent of Article 2 and Article 7(4), the Community contribution to financing may amount to up to 100 % of the total eligible cost. 2. For revenue generating investments, public aid may amount to up to 50 % of the total eligible cost of which the Community contribution may amount to up to 75 %. In any case the Community contribution shall comply with the ceilings on rates of aid and cumulation laid down for State aid. The financial support and the payments shall be 3. expressed in euro. Article 9 Financial control 1. The financial support shall comply with the principles laid down in Regulation (EC) No 1258/ 1999. The Commission shall implement expenditure under this Regulation in accordance with the Financial Regulation applicable to the general budget of the European Communities on the basis of the financing memorandum to the up Commission and the applicant country. between drawn be The Commission, in Article 12, shall adopt in accordance with the 2. procedure set out the methods for managing the programme, the provisions for monitoring and checking its execution, the systems for preventing and checking irregularities and the procedures for recovering amounts unduly paid. These measures shall be adopted as a prerequisite to the referred to in approval of Article 4(5). the programme as 3. Without prejudice to checks carried out by beneficiary countries, the Commission and the Court of Auditors may, through their own agents or duly authorised representatives, carry out on-the-spot technical or financial audits, including sample checks and final audits. 1. If the implementation of a measure does not appear to justify any part of the finance allocated to it, the Commission shall carry out an appropriate examination of the case, in particular by requesting the applicant country or the authorities designated by it to implement the measure to make their comments within a specified period. Following that examination, the Commission 2. may reduce or suspend the aid for the measure concerned if the examination confirms the existence of an irregularity or of an important modification which affects the nature or the conditions of implementation of the measure and for which Commission approval was not obtained. 3. Any amount recovered by way of overpayment shall be transferred to the Commission. The amounts not transferred shall be subject to interest on arrears in accordance with the provisions of the Financial Regulation. Article 11 The Commission shall allocate the available resources to the applicant countries for the implementation of Article 7(2). Within three months of the adoption of this Regulation, the Commission shall communicate its decisions to each applicant country on the indicative financial allocation for seven years. TITLE IV IMPLEMENTING RULES Article 12 1. The Commission shall adopt detailed rules for the implementation of this Regulation in accordance with the procedure laid down in Article 50(2) of Regulation (EC) No 1260/1999. adopt The Commission shall 2. the detailed financial rules in accordance with the procedure laid down in Article 13 of Regulation (EC) No 1260/1999. They to appropriate provisions compliance with budgetary discipline. relate, to ensure in particular, shall 26. 6. 1999 EN Official Journal of the European Communities L 161/93 TITLE V — informing the general public of the Community’s role in relation to the aid. OTHER PROVISIONS Article 13 Reports The Commission shall present an annual report on the Community support granted under this Regulation to the the European Parliament, Economic the and Committee of the Regions. to the Council, to Social Committee and In such reports the Commission shall outline in particular the progress made towards achieving the objectives set out in Article 1. TITLE VI FINAL PROVISIONS Article 14 Information and publicity 1. The programmes set out in Article 4(5) shall be the subject of appropriate publicity in the applicant countries. 2. The publicity shall entail in particular: The proposals contemplated and the measures adopted to that end shall be communicated to the Commission. Article 15 On accession to the European Union, a country shall lose its entitlement to support under this Regulation. Resources made available as a result of an applicant country acceding to the European Union shall be listed in reallocated to other applicant countries Article 1(1). Reallocation shall be based on applicant countries’ need and capacity for absorbing assistance and on the criteria laid down in Article 7(3). The Council, acting by qualified majority on a proposal from the Commission, shall take a decision outlining the general approach for reallocation. In the light of the decision referred to in the second paragraph by the Council, the Commission shall decide on the reallocation of available resources among the other beneficiaries in accordance with the procedure laid down in Article 12(1). Article 16 Entry into force This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. — informing potential beneficiaries and professional organisations of the assistance available, It shall apply from 1 January 2000. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Luxembourg, 21 June 1999. For the Council The President G. VERHEUGEN