Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy
26. 6. 1999 EN Official Journal of the European Communities L 160/103 COUNCIL REGULATION (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof, Having regard Commission (1), to the proposal from the Having regard to the opinion of Parliament (2), the European certain information on the common agricultural policy and be financed by the Guarantee’ section of the Fund in order to achieve the objectives set out in Article 33(1) of the Treaty; evaluation actions should (3) Whereas the Guidance’ section of the Fund should finance expenditure for certain rural regions whose development measures development is lagging behind as well as for the rural development Community initiative; in Having regard to the opinion of the Economic and Social Committee (3), Having regard to the opinion of Auditors (4), the Court of (4) Whereas the Commission is responsible for the administration of the Fund and whereas close cooperation between Member States and the Commission is provided for within a committee for the Fund; Council (1) Whereas by means of Regulation No 25 on the financing of the common agricultural policy (5), European established the Agricultural Guidance and Guarantee Fund (EAGGF), hereinafter referred to as the Fund’, which forms part of the general budget of the European Communities; whereas that Regulation laid down the principles which should apply for the financing of the common agricultural policy; the (2) Whereas at the single market stage, in view of the fact that price systems are standardised and the agricultural policy is a Community policy, the financial consequences devolve upon the Community; whereas, in accordance with that laid down in Article 2(2) of principle as Regulation No 25, refunds on exports to third stabilising countries, intervention aimed at agricultural development measures, specific veterinary measures as laid down in Council Decision 90/424/EEC of 26 June 1990 on expenditure in the veterinary field (6), measures provide markets, intended rural to (1) OJ C 170, 4. 6. 1998, p. 83. (2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal). (3) OJ C 407, 28. 12. 1998, p. 222. (4) OJ C 401, 22. 12. 1998, p. 3. (5) OJ L 30, 20. 4. 1962, p. 991/60. Regulation as last amended by Regulation (EEC) No 728/70 (OJ L 94, 28. 4. 1970, p. 9). (6) OJ L 224, 18. 8. 1990, p. 19. Decision as last amended by Decision 94/370/EC (OJ L 168, 2. 7. 1994, p. 31). (5) Whereas have been made; whereas the responsibility for checking the Fund's Guarantee Section expenditure lies, in the first place, with the Member States, which designate the authorities and bodies empowered to effect expenditure; whereas the Member States must carry out this task fully and effectively; whereas the Commission, being responsible for implementing the Community budget, must verify the conditions under which payments and checks the Commission can only finance expenditure where those conditions offer all necessary guarantees regarding compliance with Community rules; system of whereas, management of Community expenditure, is essential that the Commission, as the institution responsible for funding, its entitled and enabled to carry out all checks on the management of expenditure it considers necessary and that there should be full and effective transparency and mutual assistance between the Member States and the Commission; decentralised in it a (6) Whereas, during the clearance of accounts, the Commission is able to determine within a reasonable time the total expenditure to be the Guarantee Section in the entered against general account only if satisfactory it has assurance that the national controls are adequate and transparent and that the paying agencies verify the legality and regularity of the payment requests which they execute; whereas provision should therefore be made for the accreditation of paying agencies by Member States; whereas in L 160/104 EN Official Journal of the European Communities 26. 6. 1999 order to ensure consistency in the standards required for accreditation in the Member States the Commission provides guidance on the criteria to be applied; whereas, for that purpose, it should be stipulated that only expenditure effected by paying agencies accredited by the Member States should be financed; whereas, moreover, in order to ensure the transparency of national regards payment authorisation, procedures, the number of authorities and bodies to which these responsibilities are delegated should, where appropriate, be restricted taking account of the constitutional arrangements of each Member State; in particular and validation controls, as (7) Whereas management decentralised of Community funds, in particular following reform of the common agricultural policy, leads to the designation of several paying agencies; whereas, therefore, where a Member State accredits more than on paying agency, it must designate a single consistency in the contact body to ensure to provide liaison management of between the Commission and the various accredited paying agencies and to ensure that the the Commission information concerning the operations of several paying agencies is made rapidly available; the funds, requested by (8) Whereas financial resources must be mobilised by the Member States in accordance with the needs of their disbursing agencies, while the Commission makes advance payments against the booking of the expenditure effected by the disbursing agencies; whereas in the framework of rural development measures, genuine advance payments for programme implementation should be provided for; whereas it is appropriate to treat these advance payments according to the financial mechanisms established for advances on the provision for expenditure effected in a reference period; (9) Whereas two types of decisions should be established, one concerning the clearance of the the other Guarantee Section of determining including to be drawn from the financial corrections, checks on conformity, with results of Community rules, of the expenditures; the Fund, consequences, the the (10) Whereas the checks on conformity and the ensuing clearance decisions will therefore no longer be linked to the implementation of the budget in a particular financial year; whereas the maximum period to which the consequences to be drawn from the checks on conformity may be applied must be determined; whereas, however, the pluriannual character of rural development measures does not allow the application of such a maximum period; (11) Whereas measures must be taken to prevent and deal with any irregularities and to recover the amounts lost as a result of such irregularities or negligence; whereas the financial responsibility for such irregularities or negligence must be determined; (12) Whereas Community expenditure must be made subject to close supervision; whereas, in addition to supervision carried out by Member States on their own initiative, which remains essential, provisions should be made for verification by officials of the Commission and for it to have the right to enlist the help of Member States; (13) Whereas information technology needs to be fully as possible for producing the used as to the Commission; information to be sent whereas, when the carrying Commission just have full and immediate access to information on expenditure held in both documents and electronic files; checks, out (14) Whereas the extent of Community financing makes it necessary for the European Parliament and the Council to be kept regularly informed by means of financial reports; it to bring is desirable the Fund closer (15) Whereas, with a view to simplifying financial the management, financing period of to the financial year as set out in Article 272(1) of the Treaty; whereas carrying out such an operation the funds requires having a clear picture of the currently available towards therefore, financial year concerned; whereas, provision should be made for the Commission to have the powers necessary to adapt the financing period of the Fund where there are enough remaining budgetary resources available; the end of agricultural (16) Whereas Council Regulation (EEC) No 729/70 the of 21 April 1970 on the financing of been common substantially amended on several occasions; whereas, now that new amendments are being made to the said Regulation, it is desirable, in order to clarify matters, that the provisions in question should be recast, policy (1) has (1) OJ L 94, 28. 4. 1970, p. 13. Regulation as last amended by Regulation (EC) No 1287/96 (OJ L 125, 8. 6. 1995, p. 1). 26. 6. 1999 EN Official Journal of the European Communities L 160/105 HAS ADOPTED THIS REGULATION: Article 1 The European Agricultural Guidance 1. and Guarantee Fund (hereinafter called the Fund’) shall the European the general budget of form part of Communities. It shall comprise two sections: — the Guarantee Section, — the Guidance Section. 2. The Guarantee Section shall finance: (a) refunds on exports to third countries; 2. Intervention intended to stabilise the agricultural markets, undertaken in accordance with Community rules within common framework organisation of agricultural markets, shall be financed under Article 1(2)(b). the the of 3. The Council, acting by a qualified majority on a proposal from the Commission, shall, as far as is necessary, adopt financing the measures referred to in paragraphs 1 and 2. the procedure for Article 3 Rural development measures outside Objective 1 accordance with shall be financed under Article undertaken in 1. programmes Community rules 1(2)(c). (b) intervention intended to stabilise the agricultural market; 2. Veterinary and plant health measures undertaken in accordance with Community rules shall be financed under Article 1(2)(d). (c) rural development measures outside Objective 1 development rural the programmes except Community initiative; (d) the Community's financial contribution towards specific veterinary measures, inspection measures in the veterinary field and programmes for the eradication and monitoring of animal diseases (veterinary measures) as well as towards plant health measures; (e) measures intended to provide information on the common agricultural policy and certain evaluation actions of measures financed by the Guarantee Section of the Fund. The Guidance 3. rural Section development measures which are not covered by paragraph 2, point (c). finance shall 4. Expenditure relating to administrative costs and personnel borne by Member States and by recipients of aid from the Fund shall not be taken over by the Fund. Article 2 3. Information measures and evaluation actions undertaken in accordance with Community rules shall be financed under Article 1(2)(e). 4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 13. Article 4 Each Member State shall communicate to the 1. Commission: (a) details of the authorities and bodies it accredits to pay the expenditure referred to in Articles 2 and 3, hereinafter referred to as paying agencies’, (b) where more than one paying agency is accredited, details of the authority or body it charges, first, the information to be with bringing together supplied to the Commission and sending it the same, the harmonised application of Community rules, hereinafter referred to as the coordinating body’. second, with promoting and, 1. Refunds on export to third countries, granted in accordance with the Community rules within the framework of the common organisation of agricultural markets, shall be financed under Article 1(2)(a). 2. Paying agencies shall be authorities and bodies of the Member States, which, as regards payments in the L 160/106 EN Official Journal of the European Communities 26. 6. 1999 areas for which they are responsible, offer sufficient guarantees that: (a) the admissibility of claims and compliance with Community rules are checked before payment is authorised; (b) the payments effected are correctly and fully recorded in the accounts; and (c) the necessary documents are submitted within the time and in the form laid down in Community rules. carrying out of The paying agencies must hold documents 3. effected and documents justifying the payments the prescribed concerning the administrative and physical the relevant documents are kept by the bodies responsible those bodies must for authorising the expenditure, transmit reports to the paying agency on the number of checks carried out, their content and the measures taken in the light of the results. controls. Where 4. Only expenditure effected by accredited paying agencies may be the subject of Community financing. Each Member State shall, taking into account its 5. constitutional and institutional structures, the number of accredited paying agencies to the minimum necessary in order to effect the expenditure referred to in Articles 2 and 3 under satisfactory administrative and accounting conditions. limit necessary adjustments within a time limit to be fixed in relation to the seriousness of the problem. The Member inform the Commission. concerned State shall 8. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 13. Article 5 1. The financial resources required to cover the expenditure referred to in Articles 2 and 3 shall be made the to the Member Commission by means of advances on the provision for expenditure effected in a reference period. States by available Advance payments for programme implementation in the framework of rural development measures referred to in Article 3(1) may be granted by the Commission on the approval of the programmes concerned and shall be deemed to be expenditure effected on the first day of the month following the granting decision. the Until 2. advances on the provision for expenditure effected are paid, the resources necessary to meet that expenditure shall be mobilised by the Member States in accordance with the needs of their accredited paying agencies. 3. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 13. Each Member State shall communicate to the concerning following particulars 6. Commission the those paying agencies: Article 6 (a) their name and their statutes; (b) the administrative, accounting and internal control conditions under which payments are made relating to the implementation of Community the common rules within the framework of agricultural policy; (c) the act of accreditation. The Commission shall be informed forthwith of any change in those particulars. 7. Where one or more of for accreditation are not, or are no longer, fulfilled by an accredited paying agency, accreditation shall be the withdrawn unless the paying agency makes the conditions States 1. Member intervals, shall, transmit to the Commission the following information and concerning coordinating bodies and relating to the transactions financed by the Guarantee Section of the Fund: accredited agencies regular paying the at (a) statements of financial needs; expenditure and estimates of (b) annual accounts, accompanied by the information required for clearance and an attestation regarding the integrality, accuracy and veracity of the accounts transmitted; 2. Detailed rules for the application of this Article and, in particular, those covering the attestation of the accounts shall be referred to in paragraph 1(b) adopted in accordance with the procedure laid down in Article 13. 26. 6. 1999 EN Official Journal of the European Communities L 160/107 Article 7 The Commission, after consulting the Fund in the decisions 1. Committee shall adopt paragraphs 2, 3 and 4. set out The Commission shall decide on monthly 2. advances on the provision for expenditure effected by the accredited paying agencies. for October shall be attributed to Expenditure October if it is effected from 1 to 15 October and to November if it is effected from 16 to 31 October. Advances shall be paid to the Member State not later the second month than the third working day of following that in which the expenditure is effected. Additional Committee being informed at the next consultation. advances may be made, the Fund 3. The Commission shall, before 30 April of the year following the financial year concerned, on the basis of the information referred to in Article 6(1)(b), clear the accounts of the paying agencies. The clearance of accounts decision shall cover the the accounts integrality, accuracy and veracity of the submitted. The decision shall not prejudice adoption of a subsequent decision pursuant to paragraph 4. 4. The Commission shall decide on the expenditure to be excluded from the Community financing referred to in Articles 2 and 3 where it finds that expenditure has not been effected in compliance with Community rules. Before a decision to refuse financing is taken, the results of the Commission's checks and the replies of the Member State concerned shall be notified in writing, after which the two parties shall endeavour to reach agreement on the action to be taken. If no agreement is reached, the Member State may ask for a procedure to be initiated with a view to mediating between the respective positions within a period of four months, the results of which shall be set out to and examined by the Commission, before a decision to refuse financing is taken. in a report sent account non-compliance found. The Commission shall into of nature infringement and the financial Community. take the loss suffered by the gravity and the A refusal to finance may not involve: (a) expenditure referred to in Article 2 effected prior to 24 months preceding the Commission's written communication of the results of those checks to the Member State concerned; (b) expenditure for a measure or action referred to in Article 3 in respect of which the final payment was effected prior to 24 months preceding the the Commission's written communication of results of to the Member State concerned. those checks However, the fifth subparagraph shall not apply to the financial consequences: (a) of irregularities as referred to in Article 8(2); (b) concerning national aids, or infringements, for which the procedures referred to in Articles 88 and 226 of the Treaty have been initiated. 5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 13. Those rules in particular the treatment of advance payments referred second subparagraph under to in Article 5(1), paragraphs 2, 3 and 4 of this Article and the procedures relating to the decisions referred to in the said paragraphs 2, 3 and 4. shall cover Article 8 The Member States shall, 1. in accordance with national provisions laid down by law, regulation or administrative action, take the measures necessary to: (a) satisfy themselves that transactions financed by the Fund are actually carried out and executed correctly; (b) prevent and deal with irregularities; The Commission shall evaluate the amounts to be excluded having regard in particular to the degree of (c) recover sums lost as a result of irregularities or negligence. L 160/108 EN Official Journal of the European Communities 26. 6. 1999 The Member States shall inform the Commission of those purposes and in the measures particular of the administrative and judicial procedures. taken for the state of (b) whether the requisite supporting documents exist and tally with the transaction financed by the Fund; 2. In the absence of total recovery, the financial consequences of irregularities or negligence shall be borne by the Community, with the exception of the negligence consequences attributable to administrative authorities or other bodies of the Member States. irregularities or of The sums recovered shall be paid to the accredited paying agencies and deducted by them from the expenditure financed by the Fund. The interest on sums recovered or paid late shall be paid into the Fund. 3. The Council, acting by a qualified majority on a proposal from the Commission, shall lay down general rules for the application of this Article. Article 9 the Fund and shall 1. Member States shall make available to the Commission all information required for the proper working of suitable to facilitate the supervision which the measures Commission may consider necessary to undertake within the the management of Community financing, including inspections on the spot. framework of take all laid down Member States shall communicate to the Commission provisions or administrative action which they have adopted for the application of legal acts of the Community relating to the common agricultural policy in so far as those acts have financial consequences for the Fund. regulation law, by (c) the conditions under which transactions financed by the Fund are carried out and checked. The Commission shall give due notice before the inspection is to the Member State concerned or to the Member State on whose territory it is to take place. Officials of the Member State concerned may take part in the inspection. carried out the request of the Commission and with the At agreement of inspections or the Member State, inquiries concerning the transactions referred to in this Regulation shall be carried out by the competent authorities of the Commission may also participate. that Member State. Officials of To make verification more effective, the Commission may, with the agreement of the Member States concerned, arrange for the administrative authorities of those States to participate in certain inspections or inquiries. 3. The Council, acting by a qualified majority on a proposal from the Commission, shall, as far as is necessary, lay down general rules for the application of this Article. Article 10 Before 1 July of each year, the Commission shall submit to the European Parliament and to the Council a financial report on the administration of the Fund during the preceding financial year and, in particular, on the state of its resources and the nature of its expenditure achieving Community financing. conditions and the for by laid law, down regulation 2. Without prejudice to the supervision effected by in accordance with national the Member States provisions or administrative action and without prejudice to Article 248 of the Treaty, or to any inspection organised on the basis of Article 279(c) of the Treaty, authorised representatives appointed by the Commission to carry out inspections on the spot shall have access to the books and all other documents, including information created or relating to stored in electronic form, expenditure financed by the Fund. Article 11 for The Committee the European Agricultural Guidance and Guarantee Fund (hereinafter called the Fund Committee’) shall assist the Commission in administering the Fund, as laid down in Articles 12 to 15. They may, in particular, check: Article 12 (a) whether administrative practices are in accordance with Community rules; The Fund Committee shall consist of representatives of the Commission. Each the Member States and of 26. 6. 1999 EN Official Journal of the European Communities L 160/109 Member State shall be represented on the Fund Committee by not more than five officials. The Fund Committee the a shall have Commission as chairman. representative of Article 13 1. Where the procedure laid down in this Article is to be followed, the matter shall be referred to the Fund Committee by the chairman, either on his own initiative or at the request of the representative of a Member State. The representative of 2. the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 205(2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the committee shall be weighted in the manner set out in that Article. The chairman shall not vote. 3. (a) The Commission shall adopt measures which shall be immediately applicable. (b) However, it in such measures accordance with the opinion delivered by the Fund Committee, they shall be communicated by the Commission to the Council forthwith. In that event: are not — the Commission may defer for not more than one month from the date of such communication, the application measures which it has adopted, of — the Council, acting by a qualified majority, may adopt a different decision within the time limit referred to in the preceding indent. Article 14 1. The Fund Committee shall be consulted: coming financial year and, additional estimates; if necessary, in (c) on draft reports on the Fund to be submitted to the Council. 2. The Fund Committee may examine any other question referred to it by its chairman either on his own initiative or at the request of a representative of a Member State. It shall be informed regularly of the activities of the Fund. Article 15 The chairman shall convene the Fund Committee. Secretarial services shall be provided for the Fund Committee by the Commission. The Fund Committee shall lay down its own rules of procedure. Article 16 1. Regulation (EEC) No 729/70 shall be repealed. 2. References to the repealed Regulation shall be construed as references to this Regulation and should be read in accordance with the correlation table set out in the Annex. Article 17 Article 15, Decision 90/424/EEC shall be deleted. third subparagraph and Article 40 of Article 18 The measures required to facilitate the transition from the arrangements provided in Regulation (EEC) No 729/70 to those established by this Regulation shall be adopted in accordance with the procedure laid down in Article 13. (a) in cases where provision is made for it to be consulted; Article 19 (b) for the assessment of the Fund's credits to be the entered in the Commission's estimate for The Commission may delete the first sentence of Article 7(2), second subparagraph in accordance with the procedure laid down in Article 13 where the budgetary funds attributed to the Guarantee Section of L 160/110 EN Official Journal of the European Communities 26. 6. 1999 the Fund, which are available toward the end of a given financial year, would allow the Fund to finance the additional expenditure resulting from that deletion for that financial year. Where the Commission makes use of this power, it may in accordance with the same procedure postpone the starting date of those payment windows of measures, which start to run between 16 and 31 October inclusive, to 1 November. Article 20 This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. It shall apply to expenditure effected as from 1 January 2000. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 17 May 1999. For the Council The President K. -H. FUNKE 26. 6. 1999 EN Official Journal of the European Communities L 160/111 ANNEX CORRELATION TABLE Regulation (EEC) No 729/70 This Regulation Article 1(1) Article 1(1) Article 1(2)(a) and (b) Article 1(2)(a) and (b) Article 1(4) Article 2(1) Article 2(2) Article 3(1) Article 3(2) Article 3(3) Article 1(4) Article 2(1) Article 2(3) Article 2(3) Article 2(3) — Article 4(1)(a), first subparagraph Article 4(1)(a) Article 4(1)(a), second subparagraph Article 4(1)(a), third subparagraph Article 4(2) Article 4(3) Article 4(1)(b), first subparagraph Article 4(1)(b) Article 4(1)(b), second subparagraph Article 4(2) Article 4(3) Article 4(4) Article 4(4) Article 4(5) Article 4(6) Article 4(7) Article 4(5), first sentence Article 5(1), first subparagraph Article 4(5), second sentence Article 5(2) Article 4(6) Article 5(1) Article 5(2)(a) Article 5(2)(b) Article 5(2)(c) Article 5a Article 6 Article 6a Article 6b Article 6c Article 7 Article 8 Article 9 Article 10 Article 11 Article 4(8) and Article 5(3) Article 6(1) Article 7(2) Article 7(3) Article 7(4) — — — — — — Article 8 Article 9 Article 10 Article 11 L 160/112 EN Official Journal of the European Communities 26. 6. 1999 Regulation (EEC) No 729/70 This Regulation Article 12(1) Article 12(2) Article 13 Article 14 Article 15 Article 16 Article 12 — Article 13 Article 14 Article 15 —