G/SCM/N/343/EU  
 
13 September 2019  
(19-5889) Page: 1/51 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE  
GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON 
SUBSIDIES AND COUNTE RVAILING MEASURES  
EUROPEAN UNION 
The following notification, dated  2 July 2019 , is being circulated at the request of the delegation of 
the European Union . 
 
_______________  
 
 
Pursuant to the European Union's obligations under the WTO Subsidies Agreement, please find 
attached the EU 's New and Full Notification Pursuant to Article XVI :1 of the GATT 1994 and Article  25 
of the Agreement on Subsidies and Countervailing Measures.   G/SCM/N/343/EU  
 
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  TABLE OF CONTENTS  
1   INTRODUCTION  ................................ ................................ ................................ .........  4 
 Structure of Notification  ................................ ................................ ..............................  4 
 Period Covered  ................................ ................................ ................................ ...........  4 
 Presenta tion of Notification  ................................ ................................ ..........................  4 
 Status of Subsidies  ................................ ................................ ................................ ..... 4 
2   EUROPEAN UNION  SUBSIDIES  ................................ ................................ ...................  4 
3   EU FINANCING PRO GRAMMES IN THE FIELD  OF ENERGY  
AND TRANSPORT ................................ ................................ ................................ .............  5 
 Connecting Europe Facility (in the field of energy) (2014 -2020)  ................................ ....... 5 
 Shared Management Funds related to the EU Energy Policy  ................................ .............  6 
3.2.1    European Regional Development Fund (ERDF)  ................................ .............................  6 
3.2.2    Cohesion Fund ................................ ................................ ................................ .........  7 
3.2.3    European Social Fund  ................................ ................................ ...............................  9 
3.2.4    European Agricultural Fund for Rural Development  ................................ ....................  10 
 Guidelines for the development of the trans -European  
transport network (Regulation EU 1315/2013)  ................................ ................................ ..... 12 
3.3.1    Connecting Europe Facility EU Financing Programme  
(in the field of transport) (Regulation EU  1316/2013)  ................................ ...........................  12 
4   COMMON AGRICULTU RAL POLICY (CAP)  ................................ ................................ .. 14 
 General Observations  ................................ ................................ ................................  14 
4.1.1    The CAP reform process  ................................ ................................ .........................  14 
4.1.2    Financing the CAP  ................................ ................................ ................................ .. 15 
4.1.3    Information on the Internet  ................................ ................................ ....................  15 
 European Agricultural Guarantee Fund (EAGF)  ................................ .............................  15 
 Measures Financed Through the EAGF ("First Pillar" of the CAP)  ................................ ..... 16 
4.3.1    Export refunds  ................................ ................................ ................................ ...... 16 
4.3.2    Interventions in agricultural markets per sector  ................................ .........................  16 
4.3.2.1    Cereals  ................................ ................................ ................................ ..............  17 
4.3.2.2    Rice ................................ ................................ ................................ ..................  18 
4.3.2.3    Sugar  ................................ ................................ ................................ ................  18 
4.3.2.4    Olive oil  ................................ ................................ ................................ .............  18 
4.3.2.5    Textile plants  ................................ ................................ ................................ ...... 18 
4.3.2.6    Fruit and vegetables  ................................ ................................ ............................  19 
4.3.2.7    School schemes  ................................ ................................ ................................ .. 20 
4.3.2.8    Wine ................................ ................................ ................................ .................  20 
4.3.2.9    Promotion of agricultural products  ................................ ................................ .........  23 
4.3.2.10    Other plant products  ................................ ................................ ..........................  23 
4.3.2.11    POSEI - excluding direct aids  ................................ ................................ ..............  24 
4.3.2.12    Milk and dairy product  ................................ ................................ .......................  24 
4.3.2.13    Beef and veal  ................................ ................................ ................................ ... 25 G/SCM/N/343/EU  
 
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  4.3.2.14    Sheep meat and goat meat  ................................ ................................ ................  26 
4.3.2.15    Pig meat  ................................ ................................ ................................ ..........  26 
4.3.2.16    Eggs and po ultry meat  ................................ ................................ .......................  27 
4.3.2.17    Bee-keeping/apiculture  ................................ ................................ ......................  27 
4.3.3    Structure of direct payments and general conditions  ................................ ..................  28 
4.3.3.1    Basic payment  ................................ ................................ ................................ .... 30 
4.3.3.2    Greening and Cross Compliance  ................................ ................................ ............  31 
4.3.3.2.1    Cross Compliance  ................................ ................................ .............................  31 
4.3.3.2.2    Green Direct Payment  ................................ ................................ .......................  31 
4.3.3.3    Coupled Support  ................................ ................................ ................................ . 31 
4.3.3.3.1    Voluntary Coupled Support  ................................ ................................ ................  31 
4.3.3. 3.2   Cotton  ................................ ................................ ................................ ............  32 
4.3.4    POSEI  ................................ ................................ ................................ ..................  32 
 The European Agricultural Fund for Rural Development  
("Second Pillar" of The CAP)  ................................ ................................ ..............................  32 
 Measures Financed by the European Agricultural Fund for  
Rural Development ("Second Pillar" of The CAP)  ................................ ................................ .. 34 
4.5.1    Policy framework  ................................ ................................ ................................ ... 34 
4.5.2    Rural development measures  ................................ ................................ ..................  34 
 IPARD II  ................................ ................................ ................................ ..................  38 
 Measures Financed By IPARD  ................................ ................................ .....................  39 
5   EUROPEAN FISHERI ES FUND (EFF) AND EU ROPEAN  
MARITIME AND FISHERI ES FUND (EMFF)  ................................ ................................ ..... 40 
 EU Funds  ................................ ................................ ................................ .................  40 
6   PROGRAMMES IN TH E FIELD OF RESEARCH  ................................ .............................  43 
 Framework programmes  ................................ ................................ ............................  43 
 Research on Coal and Steel  ................................ ................................ .......................  45 
7   THE EUROPEAN UNI ON'S STRUCTURAL ACTI ONS ................................ .....................  46 
 European Regional Development Fund  ................................ ................................ ........  47 
 G/SCM/N/343/EU  
 
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  1  INTRODUCTION  
Structure of Notification  
Subsidies in the European Union are granted both at Union level , i.e. out of the Union budget, and 
by Member States.  
In view of this, the notificati on is divided into two parts. This first part of the notification deals with 
subsidies granted by the European Union and general information on aid granted within the Union's 
territory. The second part of this notification, circulated as addenda to this no tification, covers 
subsidies granted by individual Member States. The Member States' notifications cover subsidies 
granted at both national and sub -national level.  
Period Covered  
As far as possible, this notification relates to subsidies granted during the  period 2017  and 2018  
and to subsidy programmes which are currently in force and provides statistical information at least 
up to the end of 2018 . 
Presentation of Notification  
The information provided in this notification includes, as far as possible, all t he elements required 
by Article  25.3 of the Subsidies Agreement and in almost all cases follows the presentation required 
by the subsidies questionnaire. In a few cases, the presentation is different to that specified in the 
questionnaire, but all the requ ired elements are still included.  
Status of Subsidies  
In preparing this notification, the EU has attempted to achieve the maximum transparency with 
regard to aid and support measures granted within its territory. The fact that such aid has been 
notified do es not, in accordance with Article 25.7 of the Subsidies Agreement, prejudge its legal 
status under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement or 
the nature of the measure itself. In view of the diverse nature of many  of the programmes notified, 
it may be that only part of a programme's funding involves a subsidy element, which may or may 
not be specific. Consequently, the appearance of a programme in this notification does not in any 
way imply that the whole or part o f its expenditure amounts to a specific subsidy.  
2  EUROPEAN UNION  SUBSI DIES  
a. Subsidies granted out of the European Union budget  
The two largest areas of expenditure were structural and agriculture operations. Another notable 
area of expenditure is research. A ll these are described in more detail in this part of the notification.  
b. State aid in the Member States  
The European Commission is responsible for examining all state aid granted within the EU in order 
to determine its conformity with Article  107 of the EU Treaty . Member States are required to notify 
all aid schemes to the Commission, which may decide either not to raise any objection or open an 
investigation procedure. If the aid scheme is ultimately found not to conform to Article  107, the 
Commission issue s a negative decision which prevents the aid being granted. If the Member State 
has already granted such aid, the Commission can order the aid to be repaid.  
Details of Member States' aid schemes can be found in addenda to this notification.  G/SCM/N/343/EU  
 
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  3  EU FINANCING PR OGRAMMES IN THE FIEL D OF ENERGY AND TRAN SPORT  
Connecting Europe Facility (in the field of energy) (2014 -2020)  
1.  Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Connecting Europe Facility (in the field of energy) (CEF -Energy) . 
2. Period covered by the notification  
2017-2018.  
3. Policy objective and/or purpose of the subsidy  
Under CEF -Energy, 5.35 billion EUR is available for trans -European energy infrastructure projects 
such as gas pipelines, transmission grids, LNG terminals, gas storage, and smart grids. Every two 
years the European Commission draws up a list of EU projects of common interest (PCIs) which may 
apply for CEF funding.  The current third list of EU PCIs includes 173 pro jects.  
In the energy sector, the CEF is one element of the toolset developed under the TEN -E guidelines to 
support PCIs. As relevant as the CEF funding, the guidelines help project promoters with binding 
deadlines for permit granting decisions (3.5 years) and with regulatory solutions to address specific 
problems of energy projects of cross border nature. Grants for works under the CEF are not available 
to all PCIs but only to those that are commercially not viable (i.e. do not have a guarantee of cost 
recovery under the tariff scheme approved) but have particularly high positive externalities 
(e.g. increasing security of supply, testing new technologies).  
4. Background and authority for the subsidy (including identification of the legislation under 
which it  is granted)  
Regulation (EU) No  1316/2013 of the European Parliament and of the Council of 11  December 2013 
establishing the Connecting Europe Facility, amending Regulation (EU) No  913/2010 and repealing 
Regulations (EC) No  680/2007 and (EC) No  67/2010 Tex t with EEA relevance;  
Regulation (EU) No  347/2013 of the European Parliament and of the Council of 17  April 2013 on 
guidelines for trans -European energy infrastructure and repealing Decision No  1364/2006/EC and 
amending Regulations (EC) No  713/2009, (EC) N o 714/2009 and (EC) No  715/2009 Text with EEA 
relevance;  
Commission Delegated Regulation (EU) 2018/540 of 23 November 2017 amending Regulation (EU) 
No 347/2013 of the European Parliament and of the Council as regards the Union list of projects of 
common in terest.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants . 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined ) 
Others . 
7. Subsidy per unit, or in cases where this is not possib le, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous ye ar, or both) is not possible, a full explanation  
In the period 2017 -2018, CEF Energy awarded grants of EUR 1.721 billion to 39 actions.  G/SCM/N/343/EU  
 
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  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
N.A. 
Shared Management Funds related to the EU Energy Policy  
3.2.1   European Regional Development Fund (ERDF)  
The ERDF aims to strengthen economic and social cohesion in the European Union by correcting 
imbalances between its regions.  
The ERDF focuses its investments on  several key priority areas. This is known as 'thematic 
concentration':  
• Innovation and research;  
• The digital agenda;  
• Support for small and medium -sized enterprises (SMEs);  
• The low -carbon economy.  
The ERDF resources allocated to these priorities will depend on the category of region.  
• In more developed regions, at least 80% of funds must focus on at least two of these 
priorities;  
• In transition regions, this focus is for 60% of the funds;  
• This is 50% in less developed regions.  
Furthermore, some ERDF reso urces must be channeled specifically towards low -carbon economy 
projects:  
• More developed regions: 20%;  
• Transition regions: 15%; and  
• Less developed regions: 12% . 
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
European Regional Development Fund (ERDF) (in the field of energy) (Regulation No 1301/2013 ) 
2.  Period covered by the notification  
2014-2020. 
3.  Policy objective and/or purpose of the subsidy  
In the field of energy , the focu s is on energy efficiency, renewable energy, smart distribution grids, 
energy RTDI, smart energy infrastructure (incl. TEN -E). 
Specific focus areas  are defined in the Operational Programmes. Specific selection criteria defined 
by the Managing Authorities o f the Operational Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  G/SCM/N/343/EU  
 
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
REGULATION (EU) No  1301/2013 of the European Parliament and of the Council of 
17 December  2013 on the European Regional Development Fund and on specific provisions 
concerning the Investment for growth and jobs goal and repealing Regulation (EC) No  1080/20 06. 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants)  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined)  
Grants: Public and private entities  
Financial Instruments: The body that implements the financial instrument or the fund of funds 
(e.g. banks) is considered to be the beneficiary of the financial instrument. The beneficiary is distinct 
from the final recipients which can be public or private bodies, including individuals (e.g. households 
renovating their residence).  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for the year co vered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Around EUR 29 bn allocated in total to the energy focus areas from the ERDF and the CF taken 
together out of which around EUR 17 bn for energy efficiency in buil dings and enterprises, to be 
used both for grants and financial instruments (2014 -2020).  
ERDF has to be matched with national co -financing (public or and private), defined within the 
operational programmes. Maximum share from EU budget depending  on the lev el of development 
of the region (from 50 to 85% at priority axis level, with an additional 10 % points top up applies for 
contributions to EU level instruments or priority axis dedicated to financial instruments only and no 
national co -financing is required  for contributions to EU level instruments).  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014-2020. 
3.2.2   Cohesion Fund  
The Cohesion Fund is aimed at Member States whose Gross National Income ( GNI) per inhabitant is 
less than 90% of the EU average. It aims to reduce economic and social disparities and to promote 
sustainable development.  
The Cohesion Fund allocates a total of EUR 63.4 billion to activities under the following categories:  
• trans-European transport networks, notably priority projects of European interest as 
identified by the EU. The Cohesion Fund will support infrastructure projects under the 
Connecting Europe Facility;  
• environment: here, the Cohesion Fund can also support projects r elated to energy or 
transport, as long as they clearly benefit the environment in terms of energy efficiency, 
use of renewable energy, developing rail transport, supporting intermodality, 
strengthening public transport, etc.  G/SCM/N/343/EU  
 
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  The financial assistance of the  Cohesion Fund can be suspended by a Council decision (taken by 
qualified majority) if a Member State shows excessive public deficit and if it has not resolved the 
situation or has not taken the appropriate action to do so.  
Specific focus areas defined in the Operational Programmes. Specific selection criteria defined by 
the Managing Authorities of the Operational Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  
1.  Title of the subsi dy programme, if relevant, or brief description or identification of the subsidy  
The Cohesion Fund (in the field of energy) ( Regulation 1300/2013 ). 
2.  Period covered by the notification  
2014-2020 
3.  Policy objective and/or purpose of the subsidy  
In the field of energy , the focus is on energy efficiency, renewable energy, smart distribution grids. 
Specific focus areas defined in the Operational Programmes. Specific selection criteria defined by 
the Managing Authorities of the Operational Programmes, i n line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
Regulation (EU) No  1300/2013 o f the European Parliament and of the Council of 17  December  2013 
on the Cohesion Fund and repealing Council Regulation (EC) No  1084/2006 . 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants) . 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined)  
Grants: Public and private entities . 
Financial Instruments: The body that implements the financial instrument or the fund of funds 
(e.g. banks) is considered to be the beneficiary of the financial instrument. The beneficiary is distinct 
from the final recipi ents which can be public or private bodies, including individuals (e.g.  households 
renovating their residence).  
Eligible countries: BG, HR, CY, CZ, EE, EL, HU, LV, LT, MT, PL, PT, RO, SK and SL . 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Around EUR 29 billion allocated in total to the energy focus areas from the ERDF and the CF taken 
together (see also the table above), out of which around EUR 17 bn for energy efficiency in buildings 
and enterpr ises, to be used both for grants and financial instruments (2014 -2020).  
CF has to be matched with national co -financing (public or and private), defined within the 
operational programmes. Maximum share from EU budget 85% at priority axis level.  
Only eligib le expenditure can be financed. Eligibility rules are defined at national level, except where 
specific rules set at EU level apply. The amount of CF that a given project can receive depends on a G/SCM/N/343/EU  
 
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  number of factors, in particular whether it is revenue genera ting or not (in which case, only the 
"funding gap" i.e. the part of the investment costs that is not covered by the net revenue generated, 
can be financed). State aid rules need to be complied with.  
Financial instruments can provide finance to revenue gene rating projects, including cost savings (not 
limited to the "funding gap" only). The percentage that can be financed will depend on State aid 
rules and the specific provisions of the given instrument.  
8. Duration of the subsidy and/or any other time limits  attached to it, including date of 
inception/commencement  
2014-2020. 
3.2.3   European Social Fund  
1.  Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
European Social Fund (ESF) (in the field of energy) (Regulation No 1301/2013 ). 
The ESF investments cover all EU regions. More than EUR 80 billion is earmarked for human capital 
investment in Member States between 2014 and 2020, with an extra of at least EUR 3.2 billion 
allocated to the Youth Employment Initiative.  
For the 2014 -2020 period, the ESF will focus on four of the cohesion policy's thematic objectives:  
• promoting employment and supporting labour mobility ; 
• promoting social inclusion and combating pov erty; 
• investing in education, skills and lifelong learning ; 
• enhancing institutional capacity and an efficient public administration . 
In addition, 20% of ESF investments will be committed to activities improving social inclusion and 
combating poverty. This is known as thematic concentration.  
2.  Period covered by the notification  
2014-2020. 
3.  Policy objective and/or purpose of the subsidy  
The ESF contributes to energy and climate change challenges in implementing its investment 
priorities for employment, social inclusion, education and institutional capacity, through the 
improvement of education and training systems necessary for the adaptation of skills and 
qualifications, the up -skilling of the labour force, and the creation of new jobs in se ctors related to 
the environment and energy.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
Regulation (EU) No  1304/2013 of the European Parliament and of the Council of 17  December  2013 
on the European Social Fund and repealing Council Regulation (EC) No 1081/2006 . 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants) . G/SCM/N/343/EU  
 
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  6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined)  
Grants: Public and private entities . 
Financial Instruments: The body  that implements the financial instrument or the fund of funds (e.g. 
banks) is considered to be the beneficiary of the financial instrument. The beneficiary is distinct from 
the final recipients which can be public or private bodies, including individuals.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for  the year covered by the notification, 
for the previous year, or both) is not possible, a full explanation  
The ESF contribution allocated to the thematic objective "Supporting the shift to a low -carbon, 
resource efficient economy", as a secondary theme, am ounts to EUR 1.1 bn and additional ESF  
funding could further support actions related to this thematic objective.  
Maximum share from EU budget depending on the level of development of the regions (from 50 to 
85% at priority axis level).  
Financial instrument s can provide finance to revenue generating projects, including cost savings (not 
limited to the "funding gap" only). The percentage that can be financed will depend on State aid 
rules and the specific provisions of the given instrument.  
8. Duration of the  subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014-2020. 
3.2.4   European Agricultural Fund for Rural Development  
The EU's rural development policy helps the rural areas of the EU to meet the wide range of 
economic,  environmental and social challenges of the 21st century.  Frequently called "the second 
pillar" of the Common Agricultural Policy (CAP), it complements the system of direct payments to 
farmers and measures to manage agricultural markets (the so -called "fir st pillar"). Rural 
Development policy shares a number of objectives with other European Structural and Investment 
Funds (ESIF).  
1.  Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
European Agricultural Fun d for Rural Development  (EAFRD) (in the field of energy) (Regulation 
No 1305/2013 ). 
2. Period covered by the notification  
2014-2020 
3. Policy objective and/or purpose of the subsidy  
In the field of energy , the EAFRD focuses on the support of rural developm ent under investment in 
physical assets . Support for processing of agricultural biomass for renewable energy, production of 
bioenergy for on -farm use  and support of infrastructure for energy supply for distributing renewable 
energy are available. Under farm and business development measure , renewable energy production 
can also be supported as a startup aid for non -agricultural activities or diversification into non -
agricultural activities.  G/SCM/N/343/EU  
 
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) . 
Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17  December  2013 
on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) 
and repealing Council Regulation (EC) No 1698/2005 . 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants) . 
6. To whom and how the subsidy is provi ded (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined)  
Grants: Farmers or groups of farmers, in specific cases other businesses and/or public entities.  
Financial Instruments: The body that implements the financial instrument or the fund of funds (e.g. 
banks) is considered to be the beneficiary of the financial instrument.  
The beneficiary is distinct from the final recipients which can be farmers or groups of farmers, 
in specific cases other businesses and/or public entities (e.g., farmer modernizing the agricultural 
holding).  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating , if possible, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
For the 2014 -2020 period for r ural development programmes , EUR 99 .6 billion are available from 
EAFRD , mobilising more than EUR 160 billion of public funding in the 28 Member States. It is up to 
the Member States how big a percentage of their amount is devoted for investment in energy 
production. Based on the strategy of the programmes, MS reserved EUR 1.3 billion of public support 
for the projects primarily targeting "increasing efficiency in energy use in agriculture and food 
processing" and EUR 1.6 billion for "facilitating the supply  and use of renewable sources of energy, 
of by-products, wastes and residues and of other non -food raw material, for the purposes of the bio -
economy".  
Moreover, energy -related projects can also be financed from other measures, such as measures 
aiming at im proving the economic performance of farms, including irrigation (almost EUR  30 billion 
of public support reserved for enhancing of economic performance and increasing efficiency in water 
use by agriculture).  
Only eligible expenditure can be financed. The m inimum EU contribution is 20% share of EAFRD 
contribution in the total public support. Depending on the region and type of operation, the maximum 
Union contribution can be 53% to 100%.  
Aid intensity rates (share of public contribution in the total eligible  expenditure of the project) are 
subject to type of operation. Building of infrastructure can be 100%, but in other cases it is 40% in 
most of the regions and it can be higher in case of less developed regions, or other regional cases. 
Beneficiaries of inv estment related support may request for an advance payment up to 50% of the 
public aid if that option is included in the Rural Development Programme (RDP).  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/ commencement  
2014-2020. G/SCM/N/343/EU  
 
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Guidelines for the development of the trans -European transport network (Regulation 
EU 1315/2013)  
This Regulation establishes guidelines for the development of a trans -European transport network 
comprising a dual -layer structure cons isting of the comprehensive network and of the core network, 
the latter being established on the basis of the comprehensive network. It identifies projects of 
common interest and specifies the requirements to be complied with for the management of the 
infrastructure of the trans -European transport network.  
The trans -European transport network comprises transport infrastructure and telematic applications 
as well as measures promoting the efficient management and use of such infrastructure and 
permitting the establishment and operation of sustainable and efficient transport services.  
This Regulation sets out the priorities for the development of the trans -European transport network 
and provides for measures for the implementation of the trans -European transpor t network . 
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of transport) 
(Regulation EU  1316/2013)  
Connecting Europe Facility represents the funding instrument for the trans -European networks.  
The regulation establishing the CEF determines the conditions, methods and procedures for the 
Union's financial contribution to TEN projects identified in the respective sectorial guidelines and 
listed in the Annex of the CEF in the case of transport and energy.  
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Connecting Europe Facility EU Financing Programme (in the field of transport sector) (Regulation EU 
1316/2013) . 
2. Period covered by the notification  
2017-2018. 
3. Policy objective and/or purpose of the subsidy  
The overall objective of the CEF is to help create high -performing and environmentally sustainable 
interconnected networks across Europe, thereby contributing to economic growth and social and 
territorial cohesion wi thin the Union. Such investments in infrastructure are also instrumental in 
allowing the EU to meet its sustainable growth objectives outlined in the Europe 2020 Strategy and 
the Union priorities, notably those related to "Jobs, growth and investment ", "Digital single market " 
and "Energy Union and climate ". 
The objectives and priorities set in the Annual and Multi -Annual Work Programme for 2016 and 2017 
call for proposals (respectively completed in 2017 and 2018) are in line with the Union priorities, 
notab ly those related to "Jobs, growth and investment ", "Digital single market " and "Energy Union 
and climate ". 
At mid -term, following CEF Transport calls between 2014 and 2018, 718 projects were already 
selected for co -financing for a total CEF contribution of  EUR 23.9 billion, corresponding to the total 
grant budget for the transport programme (EUR 23.6 billion) with the addition of internal assigned 
revenues generated from the legacy programmes (Marco Polo and TEN -T). The Cohesion envelope 
of EUR 11.3 billion  has been completely allocated.  
More in detail, between 2017 and 2018, the Commission selected more than 240 projects under the 
CEF Transport programme, resulting from different calls for proposals launched over the years. This 
led to an additional EU -contribution of around EUR 4.4 billion and an overall transport investment of 
more than EUR 11 billion. In particular, the following calls for proposal have been completed:  G/SCM/N/343/EU  
 
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  Year - 
Call 
launch  Call reference  Projects 
selected  EU-
funding  Call Objectives  
2016 CEF Synergy 
Call 7 EUR 22 
million  Transport and Energy synergies  
2016 2016 CEF 
Transport Calls  152 EUR 2.7 
billion  Annual Programme (AP) Call mainly dedicated to Core and 
Comprehensive networks (non - pre identified sections). Multi 
Annual Programme (MAP) Call mainly dedicated to Core 
Network Corridors under cohesion envelope and telematics 
applications under general envelope.  
2017 2017 CEF 
Transport 
Blending Call  - 
1st cut off  39 EUR 1 
billion  Proposals in the transport sector aiming at maximising the 
leverage of private involvement and capital in the delivery of 
CEF Transport.  
2017 2017 CEF 
Transport 
Blending Call  - 
2nd cut off  35 EUR 
404.8 
million  As above, with a focus on innovation and new technologies 
projects, notably in the field of alternative fuels, in support of 
the Commission's Clean Mobility policy  
2017 2017 CEF 
Transport 
SESAR Call  14 EUR 
290.3 
million  Modernising Air Traffic Management (ATM) in Europe and 
providing a high performing ATM infrastructure that will 
enable the safe, efficient and environmentally friendly 
operation and development of air transport. Focus support 
harmonised ATM systems and standards in Europe  
The CEF complements Cohesion Policy transport priorities by targeting in particular the delivery of 
cross-border and projects in the rail or inland waterways sectors, the most complex projects on the 
TEN-T in terms of implementation. The CEF has been designed to bring maximum support to these 
projects. Furthermore, a Cohesion envelope of EUR 11.3 billion has been made available for the 
Cohesion fund eligible Member States, applying the higher co -financing rates of the Cohesion fund. 
During the first three years of the CEF, the selection of projects eligible for financing has respected 
the Member States ' national allocations under the Cohesion Fund. The Cohesion envelope has been 
completely allocated.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
Regulation  (EU) No 1315/2013 of the Europea n Parliament and of the Council  of 11 December 2013 
on Union guidelines for the development of the trans -European transport network and repealing 
Decision No 661/2010/EU  
Regulation  (EU) No 131 6/2013 of the European Parliament and of the Council  establishing the 
Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations 
(EC) No 680/2007 and (EC) No 67/2010 . 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants, procurement and financial instrument s. 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined)  
Others.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the p revious year, or both) is not possible, a full explanation  
Annual amounts in annual and multi -annual work programmes (201 -2020) - Commitment 
appropriations:  
2017 - EUR 6,651,978,648 . G/SCM/N/343/EU  
 
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  2018 - EUR 7,240,537,642 8. 
8. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement  
2014-2020 (costs eligible until 2023).  
4  COMMON AGRICULTURAL POLICY (CAP)  
General Observations  
4.1.1   The CAP reform process  
During the period under review of this notification the implementation of the 2013 reform continued.  
The 2013 reform is a continuation of the reform process of the CAP, following the direction of 
previous reforms of the last more than 20 years. With these reforms a fundamental policy shift has 
taken place from price support mechanisms to income support conditioned on the respect of certain 
criteria, with a shift in policy away from trade distorting amber box support to non -trade distorting 
green box support. Direct payments now cover nearly 90% of the EU budget outlay for "first pillar" 
support (i.e. market measures and direct payments together). The 2013 Reform enhanced further 
the environmental and climate -change mitigating elements of the CAP.  
The 2003 CAP Reform introduced a decoupled direct payments scheme, the Single Payment Scheme 
(SPS), as well as a simplified direct payments scheme for some new Member States called the Single 
Area Payment Scheme (SAPS). Under the SPS and SAPS , aid is no longer linked to production and 
farmers can decide whether and what t o produce knowing that they receive the same amount of 
aid, therefore production is adjusted to suit market demand. The 2013 reform continued this 
decoupling of direct payment. The 2013 reform main elements are decoupled "basic payment " 
(Basic  Payment Scheme [BPS] or Single Area Payment Scheme [SAPS],) complemented by a series 
of other decoupled support schemes targeting specific objectives or types of farmers: greening, 
young farmers, redistributive payments, areas with national constraints , plus the Voluntary Couples 
Support (VCS) - see 4.3.3 .1 for details.  
Under the current CAP, market intervention measures operate as a genuine safety net in case of 
crisis. As a result of these reforms the CAP has been further modernised and simplified. Mor eover, 
Rural Development policy has been further strengthened to allow farmers to face new challenges, 
such as climate change, renewable energies, water management and biodiversity.  
The main CAP Regulations in force since 1/1/2015: Regulation (EU) No 1307/ 2013 of the European 
Parliament and of the Council establishing rules for direct payments to farmers under support 
schemes within the framework of the common agricultural policy and repealing Council Regulation 
(EC) 637/2008 and Council Regulation (EC) No 73/2009 and Regulation (EU) No 1305/2013 of 
the European Parliament and of the Council on support for rural development by the European 
Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) 
No 1698/2005.  
The Regulations for the Common Market Organisation and Rural Development have , as of 
1/1/2014 , been replaced by Regulation (EU) No 1308/2013 of the European Parliament and the 
Council of 17 December 2013 establishing a common organisation of the markets in agricultural 
produc ts. 
Further, financing of CAP expenditure is governed by Regulation (EU) No 1306/2013 of the 
European Parliament and the Council of 17 December 2013 on the financing, management and 
monitoring of the common agricultural policy.  
On 1 January 2018, some tech nical improvements to the CAP entered into force with the 
agricultural part of the so -called "Omnibus Regulation". The main changes concern increased 
flexibility in the design of certain measures and extension of some prerogatives of producer 
organisations  to all sectors to improve the position of farmers in the value chain.  G/SCM/N/343/EU  
 
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  4.1.2   Financing the CAP  
The expenditure for agriculture included in this notification relates to payments made by the 
European Agricultural Guarantee Fund (EAGF) and the European Agricultural  Fund for Rural 
Development (EAFRD) during the years 2017 and 2018. For the EAGF (first pillar of the CAP) the 
SCM questionnaire is answered with detailed information on the individual support measures in 
section 4.3 (4.3.1 Export subsidies, 4.3.2 Interven tions in agricultural markets and 4.3.3 Direct 
payments). Support covered by the EAFRD (second pillar of the CAP) is treated in the same 
manner in sections 4.4 and 4.5 of this notification. Sections 4.6 and 4.7 cover support for pre-
accession measures in t he field of Rural Development in so far as the payments occurred in the 
candidate countries to the EU . 
From 2014 , a crisis reserve was introduced to ensure additional support for the agricultural sector 
in the case of a major crisis. This is financed annually within the financial discipline mechanism 
taking the form of an adjustment rate reducing the direct payments.  To ensure that the annual 
ceilings for the financing of market related expenditures and direct payments are respected in a 
given year, the mentioned adjustment rate might , if needed , be increased. In the case that the 
total amount of the crisis reserve ha s not been spent by the end of the budget year in question, 
or there are other remaining budgetary availabilities for the EAGF, the adjustment is repaid to the 
Direct Payments recipients in the following budget year.  
General Summary of expenditure for Agri culture and Rural Development, million EUR  
 2016  2017  2018  
European Agricultural Guarantee Fund (EAGF)  44,124.06  44,504.43  44,147.70  
Export subsidies  0.60 0.04 0.16 
Other intervention in markets  3,139.33  2,953.23  2,651.02  
Direct payments  40,984.13  41,551.16  41,496.52  
Of which non -trade distorting direct payments  36,431.05  36,927.0  36,715.50  
European Agricultural Fund for Rural 
Development (EAFRD)  12,353.44  11,094.91  12,445.47  
Rural Development 2014 -2020 7,809.87  11,051.78  12,173.54  
Rural development 2007 -2013 4,495.77  43,121.73  271.93  
Rural development completion of previous periods  47.8 0.00 0.00 
Pre-accession (Ipard)  339.24  91.66  98.30  
 
 
4.1.3   Information on the Internet  
 
 
General information on the Common Agricultural Policy can be found at:  
http://ec.europa.eu/agriculture/index en.htm  (English) . 
http://ec.europa.eu/agriculture/index fr.htm  (French) . 
http://ec.europa.eu/agriculture/index es.htm  (Spanish) . 
The legislation refer red to in this notification is publicly available at the following websites:  
http://eur -lex.europa.eu/homepage.html?locale=en  (English) . 
http://eur -lex.europa.eu/homepage.html?locale=fr  (French).  
http://eur -lex.europa.eu/homepage.html?locale=es  (Spanish) . 
The EU  budget can be consulted at:  
http://eur -lex.europa.eu/budget/www/index -en.htm  (English).  
http://eur -lex.europa.eu/budget/www/i ndex-fr.htm  (French).  
http://eur -lex.europa.eu/budget/www/index -es.htm  (Spanish)  
European Agricultural Guarantee Fund (EAGF)  
1. Title of the programme  
Common Agricultural Policy - Direct payments and interventions in markets ("First Pillar")  G/SCM/N/343/EU  
 
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  2. Period covered by the notification  
1 January 2017  - 31 December 2018 . 
3. Policy objective and/or purpose of the programme  
The policy objective aims at:  
• providing the farming community with a fair standard  of living ; 
• supplying consumers with food at reasonable prices ; and 
• promoting effective use of resources.  
4. Background and authority for the programme  
Treaty on the Functioning of the European Union, in particular Title III of Part III.  
5. Form of assistance granted  
The aid is normally in the form of grants or loans.  
6. To whom and how the assistance is provided  
Payments are made to economic actors in the sector, for the large part , agricultural producers.  
7. Total expenditure under the programme  
European  Agricultural Guarantee Fund - financial year (million EUR)  
 2016  2017  2018  
Intervention in markets  3,139.3  2,953.23  2,651.02  
Export subsidies  0.6 0.04 0.16 
Direct payments  40,984.1  41,551.16  41,496.52  
Total EAGF  44,124.1  44,504.43  44,147.7  
Of which non -trade distorting  direct payments  36,431.0  36,927.0  36,715.5  
 
8. Duration of the programme  
The current multi -annual financial framework covers the period from 2014 to 2020.  
9. Trade effects  
In 2018, 83% of the support provided had no , or at most , minimally trade distorting effects . 
Unchanged level compared to 2016.  
Measures Financed Through the EAGF ("First Pillar" of the CAP)  
4.3.1   Export refunds  
The last export licence was granted in July 2013. All payments made after this date for export 
subsidies relate to licences issued before this date, but where the administrative procedures for 
making the payments had not been finalised. The total amounts p aid on export refunds by the EAGF 
in 2016, 2017 and 2018 are as follows : EUR 0.6 million, EUR 0.04 million and EUR 0.16 million. 
4.3.2   Interventions in agricultural markets per sector  
In order to stabilise markets and assure the agricultural population of an equitable standard of living, 
the Common Agricultural Policy provides, in the Common Market Organisation Regulation, 
intervention and aid measures that vary according to the nature of the product and the special G/SCM/N/343/EU  
 
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  characteristics of the market. This section 4.3.2 deals with spending for the Interventions in 
agricultural markets per sector . Section 4.3.3 will address Direct Payments in a similar way. Most of 
the support schemes represen ted in the section 4.3.2 of this notification have their legal basis in  
Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 
establishing a common organisation of the markets in agricultural products and repealing Council 
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC)  No 1234/2007 as well 
as Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing 
certain aids and refunds related to the common organisation of the markets in agricultural products.  
Support to agricultural markets (EAGF budget - payments) EUR million  
Products  2016  2017  2018  
Cereals  0.0 0.0 14.9 
Rice 0.0 0.0 0.0 
Food programs  0.0 0.0 0.0 
Sugar  0.0 0.0 0.0 
Olive oil  46.0 42.8 47.9 
Textile plants  6.1 6.1 0.0 
Fruits and vegetables  1,172.7  992.4  865.1  
Wine 1027.1  1011.8  968.1  
Promotion  66.7 77.4 97.3 
Other plant products  242.0  236.9  231.2  
Dairy products  406.6  468.0  201.1  
Beef and veal  29.6 23.6 0.1 
Sheep and goat  1.8 3.5 0.0 
Pigmeat  105.7  1.4 0.0 
Eggs and poultry  0.4 0.0 0.0 
Other measures & animal products  34.5 89.3 63.9 
School Schemes  - - 155.8  
Total expenditure  3,139.3  2953.2  2,645.4  
 
 
The amounts for the animal sectors in 2018 represent mainly storage costs for public intervention 
of skimmed milk powder, including the depreciation of the products still in stock in September  2018. 
Other measures include amounts corresponding to emergency measures linked to African Swine 
Fever and avian influenza.  
4.3.2.1   Cereals  
Public intervention  
Public intervention is available for certain cereals from 1 November to 31 May.  
During this period , it is open for common wheat for a maximum quantity offered of 3 million tonnes 
per intervention period (and by automatic tendering proce dure above 3 million tonnes).  
Buying into public intervention for durum wheat, barley and maize shall be carried out by means of 
implementing acts, if the market situation so requires. For these cereals , buying -in prices will be 
determined by means of tend ering procedures. The buying -in price shall not be higher than the 
reference price.  
The intervention price for cereals is equal to the reference price , EUR 101.31/tonne , for the defined 
standard quality (related to the wholesale stage for goods delivered t o the warehouse, before 
unloading).  
Cereals will only be accepted in public intervention if they comply with certain minimum quality 
specifications.  
In practice , public intervention has not been used for cereals since 2010. Based on current market 
prices (well above the reference price), no public intervention is expected for cereals in the near 
future.  G/SCM/N/343/EU  
 
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  4.3.2.2   Rice 
Public intervention  
Public intervention is available for paddy rice from 1 April to 31 July. During this period, public 
intervention may be opened by t he Commission for paddy rice, by means of implementing acts, if 
the market situation so requires. Rice will only be accepted in intervention if it complies with certain 
eligibility criteria.  
The reference threshold for paddy rice is EUR 150/tonne for the defined standard quality (related to 
the wholesale stage for goods delivered to the warehouse, before unloading) . 
If the rice offered to intervention differs from the standard quality, the price is adjusted accordingly.  
In practice , public intervention  has not been used for rice since 2000. Based on current market 
prices (well above the reference price), no public intervention is expected for rice in the near future.  
4.3.2.3   Sugar  
Private storage  
There is a private storage system as a safety net. Following Arti cle 18 of Regulation No. 1308/2013, 
the Commission may decide to grant private storage aid, taking into account average recorded 
market prices in the Union, the reference threshold, production costs, and the need to respond to a 
significant negative impact  on the margins of the sector. Taking into account the market situation, 
the Commission may decide to grant aid for private storage of white sugar to undertakings.  
Quota system  
The quota system expired on 30/9/2017.  
4.3.2.4   Olive oil  
The European Commission pursue s the implementation of an Action plan for the quality of olive 
oil adopted in 2012. The olive oil regulatory "regime" sets marketing standards for olive oil 
concerning the packaging, labelling, presentation and advertising required for marketing in the EU , 
thus providing safeguards for consumers and allowing producers to maximise the benefits of selling 
a quality product. Certain Member States (IT, FR and EL) benefit from EU co -financing for a 
maximum amount of EUR 47.6 million to support programmes carrie d out by producer organisations 
and interbranch organisations in the areas of market knowledge, improvement of environmental 
impact, improvement competitiveness, quality, traceability schemes and dissemination of 
information.  
Private storage  
The Commission  may decide to authorise bodies, offering sufficient guarantees and approved by the 
Member States, to conclude contracts for the storage of olive oil that they market, inter alia , taking 
into account the average price recorded on the market, the reference thresholds, the production 
costs and/or the need to timely respond to a particularly difficult market situation or economic 
development having a significant negative impact on the margins in the sector.  
4.3.2.5   Textile plants  
National restructuring programmes for the cotton sector  
EU funds are attributed to Member States to finance specific restructuring measures to assist the 
cotton sector. The restructuring programmes must be compatible with EU law and consistent with 
the activities, policies and priorities of the EU. Council Regulation (EC) No 637/2008 provides that 
each cotton producer Member State shall, either every four years and for the first time by 
1 January  2009, submit to the Commission  a draft four -year restructuring programme or submit to G/SCM/N/343/EU  
 
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  the Commission, by 31 December 2009, a single draft modified restructuring programme for a 
duration of eight years. The annual budget for the restructuring programme per Member State from 
the financia l year 2010 onwards shall be as follows : EUR 4.0 million for Greece and EUR  6.134  million 
for Spain.  
The restructuring programmes contain one or more of the following measures:  
a. full and permanent dismantling of ginning facilities;  
b. investments in the ginning industry;  
c. participation of farmers in cotton quality schemes;  
d. information and promotion activities;  
e. aid to machinery contractors, not exceeding losses incurred.  
Aid is not granted for research projects and measures to support research projects or f or measures 
which are eligible for EU support under Council Regulation (EC) No 1698/2005 (Rural Development).  
As from 1 January 2014, the annual budget for the Greek restructuring programme has been 
transferred to Rural Development funds in application of Article 66(1) of Regulation (EU) No 
1307/2013.  
4.3.2.6   Fruit and vegetables  
The objectives of the fruit and vegetables scheme remain to improve the competitiveness and 
market orientation of the fruit and vegetable sector, reduce producers' income fluctuations resu lting 
from crises, promote consumption - so contributing to improved public health - and enhance 
environmental safeguards. The support measures include:  
(a) planning of production, including production and consumption forecasting and follow -up; 
(b) improvement of product quality, whether in a fresh or processed form;  
(c) boosting products' commercial value;  
(d) promotion of the products, whether in a fresh or processed form;  
(e) environmental measures, particularly those relating to water, and methods of production 
respecting the environment, including organic farming;  
(f) crisis prevention and management.  
EU Funding is available for producer organizations recognized by the Member States through 
approved 3 -5 year operational programmes in line with the scheme's objective s. Higher support 
(60% EU co-financing instead of 50%) is foreseen in some cases, such as for mergers of producer 
organisations. Additional national financial assistance is allowed and partially reimbursed by EU funds 
in areas where marketed production by producer organisations is less than 15%. EU aid to producer 
organisations remains limited to 4.1% of the value of marketed produce, but this may rise to 4.6% 
(4.7% in case of associations of producer organisations) provided that the amount in excess of 4 .1% 
is used only for crisis prevention and management.  
Crisis prevention and management  
Producer organisations' operational programmes may include crisis prevention and management 
measures. Those can consist of investments making the management of the volume s placed on the 
market more efficient, training and exchanges of best practices, promotion and communication, 
whether for prevention or during a crisis period, support for the administrative costs of setting up G/SCM/N/343/EU  
 
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  mutual funds, replanting of orchards for health or phytosanitary reasons, market withdrawal, green 
harvesting/non -harvesting and harvest insurance.  
Exceptional measures  
The Commission adopted six subsequent regulations to address the consequences of the Russian 
ban on imports from the EU, laying down temporary exceptional support measures open to all 
producers of certain fruit and vegetables through market withdrawals for free distribution and other 
destinatio ns, as well as non -harvesting and green harvesting.  
Environmental measures  
Producer organisations are required to devote at least 10% of expenditure in each operational 
programme to environmental actions or to include at least two environmental actions in their 
operational programme.  
4.3.2.7   School schemes  
School Fruit and Vegetables Scheme  
The EU School Fruit and Vegetables Scheme (SFVS) was operational from school year 2009 -2010 to 
2016/2017. It aimed to encourage the consumption of fruit and vegetables and contr ibute to shaping 
healthy eating habits in young people. Since 2014, the SFVS made available EUR 150 million of EU 
funds per school year and this money was matched by national and private funds in the scale of 
25% or 10% for less developed regions (co -financing). Around 12 .2 million children from 24 Member 
States out of 28 benefited from the scheme in school year 2016/17. The EU budget contributed with 
EUR 116 .8 million.  
School Milk Scheme  
The EU school milk scheme (SMS), first established in 1977, was operational until school year 
2016/2017. It aimed to encourage children's consumption of milk and other milk products containing 
important vitamins and minerals. Member States could grant national ai d, in addition to EU aid. 
Around 18 million children in the 28 Member States benefited from the scheme in school year 
2016/2017. The EU budget contributed with EUR 62 .5 million.  
EU School Scheme  
The new combined scheme entered into force on 1 August 2017, ahead of the 2017 -2018 school 
year. Like the individual schemes it replaces, it aims at increasing children's consumption of fruit, 
vegetables and milk and encouraging healthier eating habits . 
The total EU budget is EUR 250 million per school year, of whic h EUR 150 million for fruit/vegetables 
and 100 million for milk and the possibility for the Member States to transfer part of resources 
between the two parts of the scheme. This budget covers 1) the supply/distribution of fruit, 
vegetables, milk and certai n milk products to schoolchildren; 2) educational measures such as farm 
visits, school gardens, workshops and training activities; and 3) other costs related to information, 
publicity, monitoring and evaluation. Member States may grant national aid, in add ition to EU aid.  
In 2017/2018 school year, around 24 .4 million of children participated in the EU school scheme. The 
EU budget contributed with around EUR 182 million, of which EUR 170 million for the supply of fruit, 
vegetables and milk to schoolchildren, EUR 7 million for educational measures and EUR 5 million for 
other related costs. These figures are preliminary as p ayments may still be made.  
4.3.2.8   Wine  
National financial envelopes  
The 2008 wine reform introduced national financial envelopes (proportional to the production level 
in each Member State) to set up national support programmes in order to assist the wine sector t o 
achieve the two main reform objectives. Member States are responsible for the support programmes G/SCM/N/343/EU  
 
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  drawn up at the geographical level deemed the most appropriate by selecting among a predefined 
menu of measures and ensure that they are consistent both with in the programme and with other 
sources of financing (e.g. Rural Development). The first programming period (2008 -2013) was 
concluded with the phasing out of previous intervention measures which progressively gave way to 
structural measures such as restruc turing of vineyards, investments in transforming and marketing 
facilities and promotion of EU wine in third countries, which accounted for 2/3 of the global 
expenditure. For the current programming period (2014 -2018) , innovation was introduced as a new 
measure. It is expected that most of the budget will continue to be executed under the 3 main 
measures mentioned above. Support programmes shall contain one or more of the following 
measures:  
• Single Payment Scheme:  
At the beginning of each programming period,  Member States have had the possibility to 
provide support to vine -growers by allocating to them payment entitlements under the 
SPS and transferring funds from their national support programme in the wine sector to 
the Single Payment Scheme.  
See Section 4. 3.3.1 of this notification.  
• Promotion on third -country markets:  
This support covers information or promotion measures concerning EU wines in 
third-countries, thereby improving their competitiveness in those countries. The support 
relates to wines with a pr otected designation of origin or geographical indication or wines 
with an indication of the wine grape variety. The EU contribution to promotion activities 
shall not exceed 50% of the eligible expenditure. The measures may consist only of:  
o public relations , promotional or advertisement measures, in particular 
highlighting the advantages of the EU products, especially in terms of quality, 
food safety or environmental friendliness;  
o participation at events, fairs or exhibitions of international importance;  
o information campaigns, in particular on the EU systems covering designations of 
origin, geographical indications and organic production;  
o studies of new markets, necessary for the expansion of market outlets;  
o studies to evaluate the results of the promotion al and information measures.  
• Information in the Member States:  
Since the 2013 reform, Member States may choose to finance also projects with a view 
to informing consumers about the responsible consumption of wine and about the Union 
systems covering design ations of origin and geographical indications. These information 
activities may be carried out through information campaigns and through participation in 
events, fairs and exhibitions of national or Union importance.  
• Restructuring and conversion of vineyar ds: 
The objective of measures relating to the restructuring and conversion of vineyards is to 
increase the competitiveness of wine producers. Restructuring and conversion of 
vineyards is supported if Member States submit the inventory of their production 
potential. Support for restructuring and conversion of vineyards may only cover one or 
more of the following activities:  
o varietal conversion, including by means of grafting -on; 
o relocation of vineyards;  
o replanting of vineyards where that is necessary following mandatory grubbing -up 
for health or phytosanitary reasons on the instructions of the Member State (since 
the 2013 reform);  
o improvements to vineyard management techniques, in particular the introduct ion 
of advanced systems of sustainable production.  G/SCM/N/343/EU  
 
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  The normal renewal of vineyards which have come to the end of their natural life is not supported.  
Support for restructuring and conversion of vineyards may only take the following forms:  
o Compensation of p roducers for the loss of revenue due to the implementation of 
the measure. Compensation of producers for the loss of revenue may cover up to 
100% of the relevant loss.  
o Contribution to the costs of restructuring and conversion. The EU contribution to 
the ac tual costs of restructuring and conversion of vineyards does not exceed 
50%. In regions classified as convergence regions in accordance with Regulation 
(EC) 1083/2006, the EU contribution to the costs of restructuring and conversion 
does not exceed 75%.  
Green harvesting  
Green harvesting means the total destruction or removal of grape bunches while still in 
their immature stage, thereby reducing the yield of the relevant area to zero. Support for 
green harvesting contributes to restoring the balance of suppl y and demand in the market 
in wine in the EU by controlling excessive production in order to prevent market crises. It 
may be granted as compensation in the form of a flat rate payment per hectare to be 
determined by the Member State concerned. The payment  does not exceed 50% of the 
sum of the direct costs of the destruction or removal of grape bunches and the loss of 
revenue related to the destruction or removal of grape bunches.  
• Mutual funds:  
Support for the setting -up of mutual funds provides assistance to producers seeking to 
insure themselves against market fluctuations. This support is granted in the form of 
temporary and digressive aid to cover the administrative costs of the setting up of the 
funds.  
• Harvest insurance:  
Support for harvest i nsurance contributes to safeguarding producers' incomes where these 
are affected by natural disasters, adverse climatic events, diseases or pest infestations. 
Support for harvest insurance may be granted in the form of a financial EU contribution 
which mus t not exceed:  
a. 80% of the cost of the insurance premiums paid for by producers for insurance against 
losses as a result of adverse climatic events which can be assimilated to natural 
disasters;  
b. 50% of the cost of the insurance premiums paid for by producers  for insurance 
against:  
i. losses referred to in (a) and against other losses caused by adverse climatic 
events;  
ii. losses caused by animals, plant diseases or pest infestations.  
Support for harvest insurance may only be granted if the insurance payments concern ed 
do not compensate producers for more than 100% of the income loss suffered, taking into 
account any compensation the producers may have obtained from other support schemes 
related to the insured risk. Support for harvest insurance must not distort compe tition in 
the insurance market.  
• Investments:  
Support may be granted for tangible or intangible investments in processing facilities and 
winery infrastructure as well as marketing structures and tools intended to improve the 
overall performance of the enter prise and its adaptation to market demands, as well as 
to increase its competitiveness and shall concern the production or marketing of wine.  G/SCM/N/343/EU  
 
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  Support at its maximum rate is limited to micro, small and medium -sized enterprises.  
• Innovation (since the 2013 reform , this is a self -standing measure):  
Support may be granted for tangible or intangible investments aimed at the development 
of new products, processes and technologies concerning determined grapevine products.  
The support shall be intended to inc rease the marketability and competitiveness of these 
products and may include an element of knowledge transfer.  
The maximum aid rate is the same as for the Investments measure.  
• By-product distillation:  
Support may be granted for the voluntary or obligatory distillation of by -products of wine -
making. The amount of aid is fixed per % volume and per hectolitre of alcohol produced. 
No aid is paid for the volume of alcohol contained in the by -products to be d istilled which 
exceeds 10% in relation to the volume of alcohol contained in the wine produced. The 
maximum applicable aid level is based on collection and processing costs. The alcohol 
resulting from the supported distillation is used exclusively for industrial or energy 
purposes so as to avoid distortion of competition.  
4.3.2.9   Promotion of agricultural products  
The promotion policy has been reformed with the adoption of Regulation (EU) No 1144/2014 of the 
European Parliament and of the Council of 22 October 2014  on information provision and promotion 
measures concerning agricultural products implemented in the internal market and in third countries. 
This regulation applies from 1 December 2015 and repeals Council Regulation (EC) No 3/2008 of 17 
December 2007.  
The EU can assist in financing measures for the information on and promotion of agricultural products 
and food on the EU internal market and in third countries. These measures can consist of public 
relations, promotional or publicity actions, participation at  events and fairs, in particular those that 
highlight the advantages of EU products, especially in terms of quality, hygiene, food safety, 
nutrition, labelling, animal welfare or environmental friendliness of their production. Also covered 
are information campaigns on the EU system of protected designations of origin (P.D.O .), protected 
geographical indications (P.G.I .) and traditional speciality guaranteed (T.S.G.), information on EU 
quality and labelling systems and on "organic farming".  
The financing of the new promotion policy is foreseen to increase progressively from EUR 61 million 
in 2014 to EUR  200 million in 2020 together with higher EU co-financing rates in comparison to the 
previous regime . The EU co -finances promotion measures at a rate of 70% for simple programmes 
(programmes submitted by one or more organisations from the same Member State), 80% for 
multi-programmes (programmes submitted by at least two organisations from at least two Member 
States or one or more European organisations) and programmes targeting third countries, 85% for 
crisis management programmes and a 5% top on for beneficiaries from Member States under 
financial assistance, whereas the national co -financing disappears  in the se Member States . A key 
element of the new promotion policy is the establishment of an annual work programme, which sets 
out the strategic priorities for promotion measures in terms of products, schemes and markets to 
be targeted, and the corresponding all ocated budgets. The objective is to have a dynamic and pro -
active policy, adapted each year to emerging market opportunities and the needs of the sector.  
4.3.2.10   Other plant products  
Hops 
From 1 January 2011, the hops producer organisations in Germany receive annu ally a specific aid of 
EUR 2 ,277.000. This aid has replaced the former hops area aid that Member States could retain up 
to 25% of the component of national ceilings for coupled  aid. G/SCM/N/343/EU  
 
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  4.3.2.11   POSEI - excluding direct aids  
The legal basis for this expenditure is Regu lation (EU) 228/2013 of the European Parliament and the 
Council of 13 March 2013 laying down specific measures for agriculture in the outermost regions of 
the Union and repealing Council Regulation (EC) No 247/2006. Objective factors arising as a result 
of insularity and remot eness of certain regions of the EU impose constraints on economic operators 
and producers in these outermost regions that severely handicap their activities. Therefore , 
appropriate specific supply measures to guarantee supply and to compensate for the addi tional costs 
arising from their remoteness, insularity , and distant location are applied.  
4.3.2.12   Milk and dairy product  
Public intervention  
Public intervention is available for butter produced directly and exclusively from pasteurised cream 
obtained directly and exclusively from cow's milk in an approved undertaking in the Union of a 
minimum butterfat content, by weight, of 82% and a maximum water content, by weight, of 16% 
and for skimmed milk powder of top quality made from cow's milk in an approved undertaking in 
the Union by the spray process, with a minimum protein -content of 34% by weight of the fat free 
dry matter. The reference thresholds are EUR 246.39 per 100 kg for butter and EUR 169.80 per 100 
kg for skimmed milk powder. When buying -in at fixed price, t he public intervention price is 90% of 
the reference threshold for butter and 100% for skimmed milk powder.  
For butter and skimmed milk powder, public intervention is open from 1 March to 30 September. 
Where quantities offered for public intervention durin g this period exceed 50 ,000 tonnes butter or 
109,000 tonnes skimmed milk powder, the Commission suspends buying -in at fixed price for the 
product concerned. In that case , buying -in is carried out on the basis of a tendering procedure 
according to specifica tions to be determined by the Commission.  
An exceptional increase of the maximal quantities to be bought -in at fixed price was decided in 2016 
in view of the prolonged period of severe market imbalance experienced in the milk sector. Global 
demand for milk  and milk products had deteriorated in the course of 2015, notably due to the 
introduction and prolongation of the Russian import ban and the weakening demand in China, the 
main world importer of dairy products. At the same , time milk supply generally incr eased in the 
main exporting regions. In order to help the milk and milk products sector find a new balance in this 
exceptional market situation, the ceilings for the buying -in of butter and skimmed milk powder at a 
fixed price had been increased to 100 ,000 tonnes  butter and 350 ,000 t onnes  skimmed milk powder 
for the year 2016.  
Private storage  
Aid for private storage may be granted to respond to a particular difficult market situation for the 
following products:  
o butter produced from cream obtained directly a nd exclusively from cow's milk;  
o skimmed milk powder made from cow's milk;  
o cheese benefiting from a protected designation of origin or from a protected  
geographical indication and with a certain maturing period.  
Since the introduction of the Russian import ban, private storage aid was made available for butter, 
skimmed milk powder and cheese .1 The butter and cheese schemes came to an end on 
30 September  2016. The skimmed milk powder scheme ended on 28  February  2017.  
Exceptional support measures  
The Commission may adopt exceptional measures against market disturbance caused by significant 
price rises or falls on internal or external markets or other events and market support measures 
                                                
1 The private storage aid scheme for cheese was actually adopted as an exceptional measure, as it was 
applied to a broader range of cheese types, not limited to those benefiting from a protected designation of 
origin or from a protected geographical indicat ion. G/SCM/N/343/EU  
 
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  related to animal di seases and loss of consumer confidence due to public, animal or plant health 
risks.  
In October 2015, temporary exceptional aid worth EUR 420 million was made available to Member 
States in the form of national envelopes for distribution to livestock farmers . Member States had the 
possibility to provide a nationally -funded "top -up" of up to 100% of these amounts.  
In the autumn of 2016, in order to help the milk and milk products sector find a new balance, 
EUR 150 million was made available to milk producers i n the Union who voluntarily engaged in 
reducing cow milk deliveries for a 3 -month period, starting in October 2016.  
In parallel, in order to improve farmers' resilience, a one -time financial grant was made available in 
September 2016 to each Member State w ithin an overall budget of EUR 350 million for milk 
producers and farmers in other livestock sectors who engaged in one or more activities fostering 
economic sustainability and market stabilisation. As in 2015, Member States had the possibility to 
provide a nationally -funded "top -up" of up to 100% of the allocated amounts.  
Apart from the dairy sector, the other livestock sectors that benefited from these two targeted aid 
schemes were pig  meat, beef and veal, as well as sheep and goat.  
Production limitation  
The milk quota system ended with effect from 31 March 2015.  
4.3.2.13   Beef and veal  
Public intervention  
As regards the beef and veal sector, the reference threshold is fixed at EUR 2,224/tonne for 
carcasses of male bovine animals of grade R3 as laid down in the EU s cale for the classification of 
carcasses of bovine animals aged eight months or more. The Commission may open public 
intervention for beef and veal if, over a representative period, the average market price in a Member 
State or in a region of a Member Stat e recorded on the basis of the community scale for the 
classification of carcasses is below 85% of the reference threshold. The Commission may close public 
intervention if, over a representative period, this condition is no longer fulfilled. The intervention 
prices for beef and veal and the quantities acce pted for intervention are determined by the 
Commission by means of tendering procedures. In special circumstances, tendering procedures may 
be restricted to, or the intervention prices and the quantities for intervention may be fixed per 
Member State or re gion of a Member State on the basis of recorded average market prices. The 
maximum buying -in price determined in accordance with tendering procedures shall not exceed 85% 
of the reference threshold.  
Private storage  
Aid for private storage may be granted to  respond to a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
Exceptional market support measures  
The Commission may adopt exceptional measures against market disturbance ca used by significant 
price rises or falls on internal or external markets or other events and market support measures 
related to animal diseases and loss of consumer confidence due to public, animal or plant health 
risks.  
As mentioned in section 4.3.2.12, e xceptional aid was granted in both 2015 and 2016 in view of the 
exceptional severe market situation. The aid was primarily used for the dairy sector, but 7% were 
used for the beef and veal sector and 8% of the 2016 exceptional adjustment aid is foreseen to  be 
used for the beef meat sector.  G/SCM/N/343/EU  
 
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  4.3.2.14   Sheep  meat and goat  meat  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production c osts. 
Exceptional market support measures  
The Commission may adopt exceptional measures against market disturbance caused by significant 
price rises or falls on internal or external markets or other events and market support measures 
related to animal dise ases and loss of consumer confidence due to public, animal or plant health 
risks. 
As mentioned in section 4.3.2.12, exceptional aid was granted in both 2015 and 2016 in view of the 
exceptional severe market situation. The aid was primarily used for the dai ry sector, but 0.4% were 
used for the sheep and goat sector under the 2015 targeted aid and 3% of the 2016 exceptional 
adjustment aid was foreseen to be used for the sheep and goat sector . Out of that , 1% was executed 
to support sheep and goat meat.  
4.3.2.15   Pig meat  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
Aid for private storage has been granted for pig meat in 20152 and 20163 given the persisting difficult 
market situation which compromised the financial stability of many farms. In 2015 and in 2016, 
respectively 63 ,969 and 90 ,867 tonnes o f pig meat were put into storage.  
Exceptional market support measures  
The Commission may adopt exceptional support measures against market disturbance caused by 
significant price rises or falls on internal or external markets or other events and market sup port 
measures related to animal diseases and loss of consumer confidence due to public, animal or plant 
health risks.  
Moreover, with a view to address animal diseases (e.g. African swine fever) the Commission granted 
exceptional market support measures for Poland4 and Lithuania5 in 2014. Poland spent EUR 815,640 
of the budget granted, whereas Lithuania did not use the measure  at all. In 2017 , the Commission  
granted again exceptional support measures for the pig  meat market in Poland6 and EUR 60,000 
have be en spent. Finally, in 2018 , the Commission granted an emergency support measure to 
Poland7 8 and EUR 963,385 have been spent.  
                                                
2 Commission Implementing Regulation (EU) 2015/2334 of 14 December 2015 opening private storage 
for pig  meat and fixing in advance the amount of aid, OJ L 329, 15.12.2015, p. 10 -13. 
3 Commission Implementing Regulation (EU) 2015/360 of 5 March 2015 opening private storage for pig  
meat and fixing in advance the amount of aid OJ L 62, 6.3.2015, p. 16 -19. 
4 Commission Implementing Regulation (EU) No 324/2014 of 28 March 2014 adopting exceptional 
support measures for the pig meat market in Poland, OJ L 95, 29.3.2014, p. 24 -26. 
5 Commission Implementing Regulation (EU) No 428/2014 of 25 April 2014 adopting exceptional 
support measures for the pigmeat market in Lithuania and amending Implementing Regulation 
(EU) No 324/2014 adopting exceptional suppor t measures for the pigmeat market in Poland, OJ L 125, 
26.4.2014, p. 64 -67. 
6 Commission Implementing Regulation (EU) 2017/647 of 5 April 2017 adopting exceptional support 
measures for the pigmeat market in Poland in respect of certain sows and other pigs slaughtered from 1 
August to 30 November 2016, OJ L 92, 6.4.2017, p. 41 -47. 
7 Commission Implementing Regulation (EU) 2017/1536 of 11 September 2017 in an emergency  
8 Measure in the form of aid to holdings with no more than 50 animals of the porcine specie s located in 
certain areas of Poland when ceasing pigmeat production due to new requirements in relation to African swine 
fever, OJ L 234, 12.9.2017, p. 1 -5. G/SCM/N/343/EU  
 
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  4.3.2.16   Eggs and poultry  meat  
Exceptional market support measures  
The Commission may adopt exceptional support against market disturbance caused by significant 
price rises or falls on internal or external markets or other events and market support measures 
related to animal diseases and loss of consumer confidence due to public, animal or plant health 
risks.  
The Commission granted exceptional support measures for the eggs and poultry  meat sectors which 
had been heavily affected by the outbreaks of highly pathogenic avian influenza of various subtypes:  
- To France in 20179 and 2 01810 
- To Italy in 201811, 12 
- To Poland in 201812  
4.3.2.17   Bee-keeping/apiculture  
Special provisions for the apiculture sector  
With a view to improving general conditions for the production and marketing of apiculture products, 
Member States may draw up a national prog ramme for a period of three years ( "Beekeeping 
Programme "). The measures which may be included in the programme are laid down in Regulation 
(EU) No 1308/2013:  
• technical assistance to beekeepers and beekeepers'  organisations;  
• combating beehive invaders and  diseases, particularly varroasis ; 
• rationalisation of transhumance;  
• measures to support laboratories for  analysis of apiculture products;  
• measures to support the restocking of hives in the EU;  
• cooperation with specialised bodies for the implementation of applied research 
programmes  in the field of beekeeping and apiculture products;  
• market  monitoring;  
• enhancement of product quality with a view to exploiting the potential of products on 
the marke t. 
Measures financed from the EAFRD in accordance with Council Regulation (EC) No 1305/2013 shall 
be excluded from the apiculture programme. The EU shall provide part -financing for the apiculture 
programmes equivalent to 50% of the expenditure borne by Mem ber States.  
4.3.3. Direct payments  
 
The support schemes represented in this section 4.3.3 of this notification find their legal basis in 
Regulation (EU) No 1307/2013 of the European Parliament and of the Council establishing rules for 
                                                
9 Commission Implementing Regulation (EU) 2017/295 of 20 February 2017 on exceptional market 
suppo rt measures for the poultry meat sector in France, OJ L 43, 21.2.2017, p. 196 -204. 
10 Commission Implementing Regulation (EU) 2018/252 of 19 February 2018 on exceptional market 
support measures for the poultry sector in France, OJ L 46, 20.2.2018, p. 1 -8. 
11 Commission Implementing Regulation (EU) 2018/1506 of 10 October 2018 on exceptional market 
support measures for the eggs and poultrymeat sectors in Italy, OJ L 255, 11.10.2018, p. 1 -6. 
12 Commission Implementing Regulation (EU) 2018/1507 of 10 October 2018  on exceptional market 
support measures for the eggs and poultrymeat sectors in Poland, OJ L 255, 11.10.2018, p. 7 -11. G/SCM/N/343/EU  
 
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  direct payments to fa rmers under support schemes within the framework of the common agricultural 
policy and repealing Council Regulation (EC) 637/2008 and Council Regulation (EC) No 73/2009.  
The level of direct aids for the period covered by this notification is as follows:  
Direct Payments (EAGF financial year - execution of payment appropriations), EUR 
million  
 2017  2018  
Million EUR  Decoupled  Coupled  Decoupled  Coupled  
SAPS (Single Area Payment Scheme)  4,068.1   4,177.3   
Redistributive Payment  1,615.7   1,650.8   
BPS (Basic Payment Scheme)  17,540.2   17,300.8   
Payment for agricultural practices beneficial for the climate and the 
environment  11,767.1   11,774.6   
Payment for farmers in areas with natural constraints  2.8  4.9  
Payment for young farmers  352.8   381.6   
Cotton   233.8   243.7  
POSEI   426.5   438.8  
Voluntary Coupled Support   3,898.8   4,033.2  
Small Farmers Scheme1 1,182.6  18.5 1,019.9  15.7 
Other products / measures2 19.5 -0.8 14.7 -1.3 
Reimbursement of financial discipline3 378.2  47.4 390.8  50.9 
Total  36,927  4,624.2  36,715.5  4,781  
Total direct payments  41,551.2  41,496.5  
1 The small farmers' scheme is partly coupled/decoupled reflecting the implementation choices of  the 
Member States.  
2 Other (incl. Support for specific type of farming, Additional amount for sugar beet and cane 
producers, transitional fruit and vegetables payment other than tomatoes, specific support, suckler 
cow, sheep meat and goat  meat and SPS (Single Payment Scheme).  
3 The amount of reimbursement is considered decoupled/coupled with the same proportion as the rest 
of the direct payments, which might mean overestimation of the coupled component.  
 
 
4.3.3   Structure of direct payments and general conditions  
Direct payments are a vailable to active farmers as defined in Articles 4(1)(a) and 9 of Regulation 
(EU) No 1307/2013. Decoupled payments are granted on the basis of eligible hectares , irrespective 
of actual production on that area . It is sufficient to maintain the area in a st ate suitable for grazing 
or cultivation. Coupled payment support is granted on the basis of eligible units (hectares or 
animals).  
Generally, direct payments are not granted to a farmer if the total amount due or the area of land 
eligible for payment is too  small. These so -called "minimum requirements" vary from country to 
country as it is set by national administrations, but it is generally between EUR 100 and  EUR 500, 
or 0.3 ha to 5 ha, per farm , per year.  
Decoupled direct payments are granted to farmers in the form of a basic income support based on 
the number of agricultural hectares. There is a  Basic Payment Scheme (BPS) or Single Area 
Payment Scheme (SAPS) (see further section 4.3.3. 1) complemented by a series of other  
decoupled support schemes targeting specific objectives or types of farmers:  
• a 'green' direct payment for agricultural practices beneficial for the climate and the 
environment (see further section 4.3.3. 2.2). 
• a payment to young farmers (YFP )13 in the form of a top -up payment added to the basic 
payment, obligatory in every Member State. It is granted for a maximum of five years 
from the moment a young farmer sets up for the first time as the head of a farm 
holding. The YFP can account for up to 2% of total direct payment national allocations.  
                                                
13 More detailed information on the payment for young farmers can be found in this site:  
https://ec.europa.eu/agriculture/sites/agriculture/files/direct -support/direct -pavments/docs/young -farmer -
payment en.pdf  (English).  G/SCM/N/343/EU  
 
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  • (where applied) a redistributive payment14 to provide improved support to small and 
middle -size farms: Member states may allocate up to 30% of their total direct payment  
national allocations to a redistrib utive payment for the first eligible hectares. The 
number of hectares for which this payment can be granted is limited to a threshold set 
by national authorities (up to 30 hectares or up to the average farm size in Member 
States in which the latter is more  than 30 hectares). The amount per hectare is the 
same for all farmers in the country where it is applied and cannot exceed 65% of the 
national/regional average direct payment per hectare.  
• (where applied) a payment for areas with natural constraints, where  farming conditions 
are particularly difficult, e.g. coastal or mountain areas,  
• (where applied), farmers may benefit from the small farmers scheme (SFS)15. The SFS 
is a simplified direct payment scheme replacing all other direct payments to farmers 
who choo se to participate. The maximum level of the payment is decided at national 
level but , in any case , may not exceed EUR 1,250. The SFS includes simplified 
administrative procedures, and participating farmers are exempt from greening 
obligations and cross -compliance sanctions (see further in section 4.3.3. 2). 
Besides, provided that all pre -conditions are met (see under Chapter 4.3.3.1), the  Member States 
may opt to apply Voluntary Coupled Support (VCS). VCS is a production -limiting scheme that shall 
take the form of an annual payment based on fixed areas and yields or on a fixed number of animals 
and shall respect financial ceilings to be determined by Member States for each measure and notified 
to the Commission. Unlike for decoupled payments, eligibility to t he "basic payment" is not a 
pre-requisite to qualify for the VCS.  
Moreover, as a transitional provision, Member States applying the SAPS may grant a Transitional 
National Aid (TNA) to farmers in sectors for which TNA (or, where relevant, complementary national 
direct payments) was granted in 2013.  
The overall amount of direct payments to farmers in any Member State is limited each year by the 
size of that country's annual allocation (or "financial envelope ") from the EU budget. National 
authorities can decide on the percentage  they dedicate to the various direct payment schemes from 
this allocation, subject to certain limits set in the EU legislation. They may also choose to transfer 
money to or from their national rural development allocat ions. 
The Act of Accession of Croatia provides for a transitional period for the progressive introduction of 
the CAP direct payments to farmers, from 25% in 2013 to 100% in 2022. It also establishes the 
possibility for Croatia, during the transitional peri od and subject to the approval by the Commission, 
to fill the gap by paying farmers national support in the form of Complementary National Direct 
Payments  (CNDPs, commonly known as 'top -ups').  
National envelopes  
Direct payments are based on global national  envelopes set in Annex II of 
Regulation  (EU) No 1307/2013 (DP regulation) and show n in the table below. These national 
envelopes do not include the financing of the crop specific payment for cotton and the support for 
"POSEI". The envelopes are after any transfer of amounts to and from rural development envelopes  
but before transfers of the amounts of "reduction" as referred to in Article 11 of the DP regulation 
and before application of financial discipline. The national envelopes are the basis for setting the 
ceilings for the various direct payment schemes. Payment related to claim year N are paid in financial 
year N+1. Amounts are in EUR 1000.  
  
                                                
14 More detailed information on the redistributive payment can be found in this site: 
https://ec.europa.eu/agriculture/sites/agriculture/ files/ds -dp-redistributive -payment_en.pdf  (English) . 
15 More detailed information on the SFS can be found on this site:  
https://ec.europa.eu/agriculture/sites/agriculture/files/direct -support/direct -payments/docs/small -
farmers -scheme_en.pdf  (English) . G/SCM/N/343/EU  
 
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  Member State  2015  2016  2017  2018  2019  2020  
Belgium  523,658  509,773  502,095  488,964  481,857  505,266  
Bulgaria  721,251  792,449  793,226  794,759  796,292  796,292  
Czech Republic  844,854  844,041  843,200  861,708  861,698  872,809  
Denmark  870,751  852,682  834,791  826,774  818,757  880,384  
Germany  4,912,772  4,880,476  4,848,079  4,820,322  4,792,567  5,018,395  
Estonia  114,378  114,562  123,704  133,935  143,966  169,366  
Ireland  1,215,003  1,213,470  1,211,899  1,211,482  1,211,066  1,211,066  
Greece  1,921,966  1,899,160  1,876,329  1,855,473  1,834,618  1,931,177  
Spain  4,842,658  4,851,682  4,866,665  4,880,049  4,893,433  4,893,433  
France  7,302,140  7,270,670  7,239,017  7,214,279  7,189,541  7,437,200  
Croatia  183,735  202,865  241,125  279,385  317,645  306,080  
Italy 3,902,039  3,850,805  3,799,540  3,751,937  3,704,337  3,704,337  
Cyprus  50,784  50,225  49,666  49,155  48,643  48,643  
Latvia  181,044  205,764  230,431  255,292  280,154  302,754  
Lithuania  417,890  442,510  467,070  492,049  517,028  517,028  
Luxembourg  33,604  33,546  33,487  33,460  33,432  33,432  
Hungary  1,345,746  1,344,461  1,343,134  1,343,010  1,342,867  1,269,158  
Malta  5,241  5,241  5,242  5,243  5,244  4,690  
Netherlands  749,315  736,840  724,362  712,616  700,870  732,370  
Austria  693,065  692,421  691,754  691,746  691,738  691,738  
Poland  3,378,604  3,395,300  3,411,854  3,431,236  3,450,512  3,061,518  
Portugal  565,816  573,954  582,057  590,706  599,355  599,355  
Romania  1,599,993  1,772,469  1,801,335  1,872,821  1,903,195  1,903,195  
Slovenia  137,987  136,997  136,003  135,141  134,278  134,278  
Slovakia  438,299  441,478  444,636  448,155  451,659  394,385  
Finland  523,333  523,422  523,493  524,062  524,631  524,631  
Sweden  696,890  697,295  697,678  698,723  699,768  699,768  
United Kingdom  3,173,324  3,179,880  3,186,319  3,195,781  3,205,243  3,591,683  
 
 
4.3.3.1   Basic payment  
According to Article 1(b)(i) of Regulation (EU) No 1307/2013, the basic payment is granted either 
in the form of a basic payment scheme (BPS) or as a transitional simplified scheme, the Single Area 
Payment Scheme (SAPS). Eligibility for the basic payment is a pre -condition to receive other 
decoupled direct payments.  
BPS is granted on the basis of annual activation of payment entitlements with eligible hectares. 
Payment entitlements were allocated to farmer s in 2015 for their eligible area. The value of 
entitlements corresponds either to the national/regional flat rate or it is based on the individual 
reference of each farmer and converges towards the flat rate over the period.  
More detailed information on the basic payment scheme can be found in this site:  
https://ec.europa.eu/agriculture/sites/agriculture/files/direct -support/direct -payments/docs/basic -
payment -scheme_en.pdf  (English) . 
 
As an alternative to BPS, Member States applying SAPS in 2014 may continue to use such scheme s 
until 31 December 2020. This regime facilitates and reduces the administrative burden with only 
flat-rate payments per eligible ha of agricultural la nd. The SAPS is a decoupled direct support scheme 
with no, or at most minimal, trade -distorting effects. Member States applying SAPS may apply a 
transitional national aid (TN A) for certain sectors.  
More detailed information on the SAPS and TNA can be found in this site: 
https://ec.europa.eu/a griculture/sites/agriculture/files/direct -support/direct -
payments/docs/single -payment -scheme -and-transitional -aid en.pdf  (English) . 
The financial ceiling for BPS/SAPS is calculated for each Member State by deducting from the total 
national ceiling for dire ct payments any allocations for other direct payment schemes decided by 
each relevant Member State , including  the compulsory 30% component of the greening payment.  G/SCM/N/343/EU  
 
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  4.3.3.2   Greening and Cross Compliance  
4.3.3.2.1   Cross Compliance  
The CAP reform of 2013 implemented by Regulat ion (EU) No 1306/2013 carries forward the principle 
that there is a link through the Cross Compliance (CC) system between receipt of CAP support by 
farmers and respect of a set of basic rules related to the main public expectations on environment, 
public, animal and plant health and animal welfare. With Cross Compliance, the CAP support is 
reduced for farmers not respecting these basic rules in proportion of the severity, extent , and/or 
permanence of the determined  infringement . 
The 2013 CAP reform provides  for exemption from the Cross Compliance system for farmers 
participating in the Small Farmers Scheme. While these farmers need to respect the directives and 
regulations of the sectorial legislation, they are exempted from reductions of CAP payments under 
Cross Compliance. This change represents a simplification for these farmers and national 
administrations.  
4.3.3.2.2   Green Direct Payment  
The objective of the Green Direct Payment is to enhance the environmental performance of the CAP 
by complementing cross-compliance and second pillar agro -environment -climate schemes. The 
green direct payment of a farmer is like the other decoupled direct payments, paid per hectare for 
farmers respecting three annual practices that benefit the environment and the clima te. These 
practices include diversifying crops, maintaining permanent grassland and dedicating 5% of arable 
land to ecologically beneficial elements ( "ecological focus areas "). Thirty percent of the total direct 
payments national allocations are dedicated to this payment.  
As this is a mandatory scheme, farmers who break greening rules will be paid less. Such reductions 
reflect the number of hectares identified as non -compliant, taking into account the specific nature 
of the requirement concerned. As of 2017 , reductions can be accompanied by administrative 
penalties. In line with the proportionality principle, the size of such penalties depends on the severity 
and scope of non -compliance.  
4.3.3.3   Coupled Support  
4.3.3.3.1   Voluntary Coupled Support  
During the period 2015 -2020, Member States may grant coupled support to farmers operating in 
the following sectors and productions: cereals, oilseeds, protein crops, grain legumes, flax, hemp, 
rice, nuts, potato starch, milk and milk products, seeds, sheep  meat and goatmeat, beef and veal, 
olive oil, silkworms, dried fodder, hops, sugar beet, cane and chicory, fruit and vegetables and short 
rotation coppice.  
Coupled support may only be granted to sectors or regions of a Member State where specific types 
of farming or specific agricultural sectors that are particularly important for economic, social or 
environmental reasons undergo certain difficulties. Coupled support is a pr oduction -limiting scheme 
that shall take the form of an annual payment based on fixed areas and yields or on a fixed number 
of animals and shall respect financial ceilings to be determined by Member States for each measure 
and notified to the Commission. I n order to finance the coupled support, Member States may decide 
to use up to 8% (13% under specific conditions or more upon approval by the Commission) of their 
annual national ceiling for direct payments. Those percentages may be further increased by up to 
two percentage points for those Member States which decide to use at least 2% of their annual 
national ceiling for direct payments to support production of protein crops under this scheme. 
Member States may review their support decisions if needed, but these reviews (if any) shall also 
comply with the same pre -conditions and limits. On the basis of the Member States' decisions, the 
Commission shall fix corresponding annual financial ceilings at Member State  level, as well as support 
measure level.  
  G/SCM/N/343/EU  
 
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   Supported hectares/heads  Total amount paid (in M EUR)*  
 2016  2017  2016  2017  
Beef and veal  16.297.955  16.485.439  1.642,4  1.619,2  
Cereals  1.499.696  1.453.848  84,3 96,7 
Flax 8.399  6.613  0,6 0,6 
Fruit and vegetables  549.462  489.471  167,4  163,0  
Grain legumes  512.895  534.424  16,6 17,1 
Hemp  14.377  18.998  1,7 1,8 
Hops 7.335  7.515  4,5 4,4 
Milk and milk products  9.071.492  8.830.925  821,4  871,5  
Nuts 408.666  464.782  13,1 16,6 
Oilseeds  23.548  27.346  1,9 1,0 
Olive oil  619.923  532.168  63,8 66,1 
Protein crops  4.123.718  4.774.971  407,0  426,6  
Rice 410.003  416.249  55,1 54,9 
Seeds  22.744  32.359  5,0 5,3 
Sheepmeat and goatmeat  37.680.647  35.395.880  457,7  505,1  
Silkworms  1.722  663 0,4 0,2 
Starch potato  62.282  66.709  17,3 17,2 
Sugar beet  392.645  485.991  171,6  175,6  
* Total EU decided by Member States (i.e. actual payments to farmers may be lower due to reduction 
and sanctions applied)  
 
4.3.3.3.2   Cotton  
The coupled aid is granted per hectare of eligible area of cotton. In order to be eligible, the area 
shall be located on agricultural land authorised by the Member State for cotton production, sown 
under authorised varieties and actually harvested under no rmal growing conditions. The aid is paid 
for cotton of sound and fair merchantable quality. The obligation to maintain coupled support in the 
cotton sector results from Protocol 4 annexed to the Act of Accession of Greece and the payment is 
implemented in accordance with the objectives of that Protocol.  
The payments are limited by base areas and fixed yields and reference amounts by Member State 
are established to calculate the specific amounts to be paid per hectare of eligible area. If the eligible 
cotton  area in a given Member State and in a given year exceeds the base area, aid is reduced 
proportionally to the overshot.  
Cotton coupled support - Base areas, fixed yields and reference amounts  
 Base area  Fixed yield  Aid per ha (€/t)*  
Bulgaria  3,342 ha  1.2 tonne/ha  EUR 584.88 (2015) EUR 649.45 (2016 onwards)  
Greece  250,000 ha  3.2 tonne/ha  EUR 234.18 (2015 onwards)  
Spain  48,000 ha  3.5 tonne/ha  EUR 362.15 (2015 onwards)  
Portugal  360 ha  2.2 tonne/ha  EUR 228.000 (2015 onwards)  
* Farmers who are members of an approved inter -branch organisation are granted an aid per eligible 
hectare increasing the amount of aid per hectare mentioned above by an amount of EUR 2.  
Source:  Regulation (EU) No. 1307/2013, Article 58.  
4.3.4   POSEI  
The legal basis for this expe nditure is Regulation (EU) No 228/2013. Objective factors arising as a 
result of insularity and remoteness of certain regions of the EU impose constraints on economic 
operators and producers in these outermost regions that severely handicap their activitie s. 
Therefore , specific measures on agriculture are applied to remedy the difficulties caused by these 
handicaps referred to in Article 349 of the Treaty.  
The European Agricultural Fund for Rural Development ("Second Pillar" of The CAP)  
1. Title of the programme  
Common Agricultural Policy: Rural Development ("Second Pillar") . G/SCM/N/343/EU  
 
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  2. Period covered by the notification  
1 January 2017  - 31 December 2018 . 
3. Policy objective and/or purpose of the programme  
Contribute to the achievement of the Common Agricultural Policy's objectives as laid down in the 
Treaty on the Functioning of the European Union, in particular Title III of Part III. Rural development 
policy should also take into account the general object ives for economic and social cohesion policy 
set out in the Treaty and contribute to their achievement, while integrating other major policy 
priorities as spelled out in the conclusions of the Lisbon and Göteborg European Councils for 
competitiveness and s ustainable development.  
4. Background and authority for the programme  
As from 1.1.2014 Regulation (EU) No 1305/2013 of the European Parliament and the Council of 
17 December  2013 on support for rural development by the European Agricultural Fund for Rural 
Development (EAFRD) and replacing Council Regulation (EC) No 1698/2005. Member States shall 
designate the authorities responsible for the managing, implementation and control of the 
programmes.  
5. Form of assistance granted - Grants from EU budget  
Rural developm ent programmes are co -financed by Member States and the EU budget. Support 
might take the form of grants as well as financial instruments.  
6. To whom and how the assistance is provided  
The aid is co -financed with the Member States and implemented through mult i-annual programmes 
based on the aims of the EAFRD and the needs of the rural areas. The Member States are responsible 
for the implementation of the programme and the selection of individual projects.  
7. Total expenditure under the programme  
The table below s hows the amounts involved (payment appropriations in EUR million s for each 
financial instrument).  
Expenditure (payments) for Rural Development (million EUR)  
Financial instrument  2016  2017  2018  
EAFRD 2014 -2020 7,809.9  11,051.8  12,173.5  
EAFRD 2007-2013 4,495.8  43.1 271.9  
EAGGF Guarantee Section completion of programs 
2000-2006 0.0 0.0 0.0 
EAGGF Guidance Section completion of earlier 
programs  47.8 0.0 0.0 
Transitional instrument for New Member States 
Completion of 2004 -2006 programs  0.0 0.0 0.0 
Other  0.0 0.0 0.0 
Total  12,353.5  11,094.9  12,445.5  
 
 
8. Duration of the program  
2014-2020. G/SCM/N/343/EU  
 
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  9. Trade effects  
No, or at most minimal, trade distorting effects.  
Measures Financed by the European Agricultural Fund for Rural Development 
("Second Pillar " of The CAP)  
4.5.1   Policy framework  
The European Union has an active rural development policy because this helps achieve valuable 
goals for the countryside and for the people who live and work there. The EU's rural areas are a vital 
part of its physical m ake-up and its identity. Farming involves 22 million people in the EU and 
manages close to 50% of the EU territory. The whole EU agri-food sector generates 7.5% of 
employment and 3.7% of EU's total value added. Agri -food sector is the 4th export sector in EU, 
increased the value of its exports by 50% from 2010 to 2016 (faster than overall EU exports). Many 
of the EU's rural areas face significant challenges. Average income per head is lower in rural regions 
than in towns and cities, while the skills base is narrower and the services sector is less developed. 
Also, caring for the rural environment often carries a financial cost. The Europe 2020 Strategy, the 
EU Environmental Action Programme 2020 and t he 2020 Climate and Energy Package are just as 
relevant to the countryside as to the towns and cities. The EU's rural development policy is all about 
meeting the challenges faced by rural areas and unlocking their potential.  
Theoretically, individual EU Member States could decide and operate completely independent rural 
development policies. However, this approach would work poorly in practice. Not all countries in the 
EU would be able to afford the policy which they need. Moreover, many of the issues addre ssed 
through rural development policy do not divide up neatly at national or regional boundaries but 
affect people further . For example , pollution crosses borders all too easily and more generally, 
environmental sustainability has become a European and int ernational concern. Also, rural 
development policy has links to a number of other policies set at EU level. Therefore, the EU has a 
common rural development policy, which nonetheless places considerable control in the hands of 
individual Member States and regions due to the principle of shared management. The policy is 
funded partly from the central EU budget and partly from individual Member States' national or 
regional budgets.  
The essential rules governing rural development policy for the period 2014 to 2020, as well as the 
policy measures available to Member States and regions, are set out in Council Regulation 
(EU) No 1305/2013 of 17  December  2013 on support for rural development by the European 
Agricultural Fund for Rural Development (EAFRD) and repeal ing Council Regulation 
(EC) No 1698/2005. On this basis Member States build their 2014 -2020 Rural Development 
Programmes based upon at least four of the six common EU priorities : 
1. Fostering knowledge transfer and innovation in agriculture, forestry and rural areas;  
2. Enhancing the viability / competitiveness of all types of agriculture, and promoting 
innovative farm technologies and sustainable forest management;  
3. Promoting food chain organisation, animal welfare and risk management in agriculture;  
4. Restorin g, preserving and enhancing ecosystems related to agriculture and forestry;  
5. Promoting resource efficiency and supporting the shift toward a low -carbon and climate - 
resilient economy in the agriculture, food and forestry sectors;  
6. Promoting social inclusion,  poverty reduction and economic development in rural areas.  
4.5.2   Rural development measures  
• Knowledge transfer and information action s. Aims at the  diffusion of scientific 
knowledge and innovative practices, for persons engaged in the agricultural, food and 
forestry sectors as well as SMEs operation in rural areas. Operations supported may 
include training courses, workshops and coaching, but shall not include courses of G/SCM/N/343/EU  
 
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  instruction or training which form part of normal programmes or systems of agricultural 
and forestry education at secondary or higher levels. Other activities which can be 
supported under the measure are demonstration projects and farm/forest exchanges and 
visits.  
• Advisory services, farm management and farm relief services . This measure 
support s the use of advice by farmers, forest holders and SMEs in rural areas. Support is 
granted to help them to make use of advisory services for the improvement of the overall 
performance of their holdings. As a minimum , the advisory service to farmers shall cov er 
one of the elements mentioned in Article 15(4) of Regulation (EU) 1305/2013. Support 
for the use of advisory services shall be limited to a maximum of EUR 1500 per advice. 
Support under this measure can also be provided to cover cost s arising for the setting up 
of farm and forest advisory services, farm management services and farm relief services. 
Support shall be d egressive over a maximum period of five years from setting up. 
Furthermore , the measure support s the training of advisors  in order to ensure the quality 
of the service provided.  
• Supporting farmers who participate in food quality schemes . Covers agricultural 
products and foodstuffs for EU quality schemes, or for those recognized by the Member 
States which comply with precise criteria or voluntary agricultural product certification 
schemes recognised by Member States as meeting the Union best practice guidelines. 
Schemes whose sole purpose is to provide a higher level of control with respect of 
obligatory standards under EU or national law, shall not be eligible for support. The 
support is granted as an annual incentive payment whose level shall be determined 
according to the level of the fixed costs arising from the first participation in supported 
schemes, for a maximum durati on of five years. The support is limited to a maximum 
amount EUR 3,000 per holding , per year.  
• Supporting groups of producers for information and promotion activities  in the 
internal market for products under food quality schemes are also eligible. Support 
concerns products covered by the support of the quality schemes mentioned above . It 
shall be limited to a maximum of 70% of the cost s. 
• Investments in physical assets  is a su pport scheme to be carried out in order to 
improve the economic and environmental performance of agricultural holdings and rural 
enterprises, improve the efficiency of the agricultural products marketing and processing 
sector. The support contributes to th e development of infrastructure needed for the 
development of agriculture and forestry and support non -productive investments 
necessary to achieve environmental aims. Investment support is one of main instruments 
of the EU's rural development policy and ha s been used by all Member States in the 
programming period 2007 -2013. Investment measures have been highly relevant in 
meeting the needs of agriculture via improving competitiveness and contributing to the 
maintenance of sustainable agricultural structures , and have served multiple economic, 
social and environmental priorities at once.  
• Restoring of agricultural production potential . In order to prevent the negative 
consequences of natural disasters, adverse climatic events and catastrophic events, 
investmen ts in prevention and restoration may be supported. In case of investments for 
restoration , the level of destruction shall be at least 30% of the relevant agricultural 
production potential.  
• Business start -up support for young farmers . Support is granted to persons who are 
less than 40 years of age and are setting up for the first time on an agricultural holding 
as head of the holding. They must possess adequate occupational skills and competence 
and submit a business plan for the development of their farming  activities. The support 
shall be granted up to the maximum amount laid down in the Annex II of Regulation (EU) 
No 1305/2013.  
• Business start -up support for non -agricultural activities in rural areas.  Support is 
provided for the start of a new non -agricultural activity in rural area. The support shall be 
granted up to the maximum amount laid down in the Annex II of Regulation G/SCM/N/343/EU  
 
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  (EU) No 1305/2013 per person who submits a business plan for the development of their 
farming activiti es. 
• Business start -up for the development of small farms.  Support is provided to 
existing small farms (as defined by MS) for ensuring their sustainable development and 
growth and shall be granted to farmers who submit a business plan. The support shall be 
granted up to the maximum amount laid down in the Annex II of Regulation 
(EU) No 1305/2013.  
• Basic services for the economy and rural population . The support covers the 
development of local basic services, including cultural and leisure activities, and 
investments in small -scale infrastructure. Specific derogations for the size exist for the 
investments in broadband and renewable energy. Conservation and upgrading of the rural 
heritage are also eligible here. The support covers the drawing -up of protection a nd 
management plans relating to Natura 2000 sites and other places of high natural value, 
environmental awareness actions and investments associated with maintenance, 
restoration and upgrading of the natural heritage and with the development of high 
natura l value sites. It also covers support for studies and investments associated with 
maintenance, restoration and upgrading of the cultural heritage such as the cultural 
features of villages and the rural landscape.  
• Forestry  support contributes to the achieve ment of some of the most crucial 
environmental, societal and economic targets of the rural development policy. Forests 
have an important role in management of natural resources  Forests provide key 
ecosystem services such as sequestering carbon, protecting soil and water, preserving 
biodiversity, supplying energy and raw material for a low carbon economy, while allowing 
recreational activities. Therefore , the support aims at establishing forests and 
agro-forestry systems, prevention and restoration of damage d forests. Moreover , the 
support covers investments improving the resilience and environmental value of forests 
and investments in forestry technologies and in processing, mobilising and marketing of 
forest products. A separate support scheme is dedicated to operations of forest - 
environmental and climate services and forest conservation.  
• Supporting setting up of producer groups and organisations . Support is granted in 
order to facilitate the setting up and administrative operation of producer groups and 
organisation for the purposes of firstly adapting the production and output of producers 
who are members of such groups to market requirements. Secondly , it is granted for the 
purpose of jointly placing goods on the market, including preparation for sale, 
centralisation of sales and supply to bulk buyers and , thirdly , for establishing common 
rules on production information, with particular regard to harvesting and availabili ty. The 
support can be granted as a flat -rate aid in annual instalments for the first five years 
following the date on which the producer group or organisation was recognised. It shall 
be degressive and calculated on the basis of the group's or organisatio n's annual marketed 
production, up to the ceilings of EUR 100,000 per year.  
• Agri-environment -climate payments . Member States /regions must make the support 
under this measure available throughout their territories, in accordance with their specific 
national , regional or local specific needs and priorities. The exact types of 
operation/intervention to be available in a given part of that territory will depend on the 
particular environmental /climate needs identified by Member States/regions in the SWOT 
analysi s. Agri -environment -climate payments aim to preserve and promote the necessary 
changes to agricultural practices that make a positive contribution to the environment 
and climate. The support under this measure can be granted to farmers, groups of farmers 
or groups of farmers and other land managers and in justified cases also to other land 
managers or their groups who undertake voluntary  agri-environment -climate 
commitments on agricultural land. Agri -environment -climate payments cover only those 
commitments  going beyond the relevant mandatory standards established pursuant to 
Chapter I of Title VI of Regulation (EU) No 1306/2013, the relevant criteria and minimum 
activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation 
(EU) No 1307/2013, and relevant minimum requirements for fertiliser and plant protection 
product use as well as other relevant mandatory requirements established by national law 
and identified in the programme. The commitments are undertaken as a general r ule for G/SCM/N/343/EU  
 
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  a period of five to seven years. If justified by achieving or maintaining environmental 
benefits, a longer period can be determined. After termination of the initial period 
commitments, their annual extension is possible. The payments are granted a nnually and 
cover all or part of the additional costs and income foregone resulting from the 
commitments made. Where necessary, they may cover also transaction cost s. When 
calculating the payments, Member States must deduct the amount necessary in order to  
exclude double funding of the greening practices in Pillar I. Where appropriate, the 
beneficiaries may be selected on the basis of calls for tender, applying criteria of economic 
and environmental efficiency. Support is limited to the maximum amounts EUR 450-900 
per hectare per year and EUR 200 per livestock unit per year in the case of support for 
local breeds in danger of being lost to farming. Support may also be provided for the 
conservation and the sustainable use and development of genetic resources in agriculture.  
• Organic farming measure in the current programming period 2014 -2020  is 
established as a separate support scheme . It was part of the agri -environment measure 
earlier. This was decided to provide more visibility to the scheme. The support under this 
measure is dedicated for the conversion to and/or maintenance of organic farming 
practices with a view to encourage farmer s to participate in such schemes, thus answering 
society's demand for the use of environmentally friendly farm practices.  
• Natura 2000 payments and payments linked to Directive 2000/60/EC . The 
support under this measure is to be granted to beneficiaries of this measure who suffer 
from particular disadvantages due to specific mandatory requirements that go beyond 
certain baseline level in the areas concerned resulting from the implementation of Birds 
and Habitats Directives and Water Framework Directive (WFD)  when compared to the 
situation of farmers and foresters in other areas not concerned by these disadvantages. 
The compensation under this measure is to help address the specific disadvantages and 
to contribute to the effective management of Natura 2000 sit es and river basin areas and 
to ensure the protection of those sites and associated water bodies. Support is limited to 
the maximum amount of EUR 500/ha per year in the initial period not exceeding five years 
after which the maximum amount is EUR 200/ha pe r year. For Water Framework Directive 
payment , the minimum amount is EUR 50/ha per year.  
• Payments to areas facing natural or other specific constraints compensate farmers 
annually per hectare for all or part of the additional costs and income foregone rela ted to 
the constraints for agricultural production in the area concerned. Payments encourage 
continued use of agricultural land, contribute to maintaining the countryside and to 
maintain and promote sustainable farming systems. In the 2014 -2020 programming  
period, areas other than mountain areas facing significant natural constraints are to be 
delimited on the basis of bio -physical criteria. The minimum amount of payment is EUR  25 
per hectare per year ; the maximum amount varies . In mountain areas , up to EUR  450 
per hectare per year and on other constraint areas the maximum payment may be up to 
EUR 250 per hectare per year, with a possibility to give higher support in duly justified 
cases.  
• Animal welfare payments.  Animal welfare commitments shall provide upgraded 
standards of production methods and support farmers to prepare for possible higher 
standards in the future. Support under the measure "Animal welfare" can be paid for 
specific commitments and practises whi ch go beyond the existing standards and which 
have a direct effect in improving animal welfare. Besides the "Animal welfare" measure 
as laid down in Article 33 of Regulation (EU) No 1305/2013, animal welfare may be 
supported under several other measures of  Rural Development. The payments cover all 
or part of the additional costs and income foregone resulting from the commitment made. 
Where necessary, they may cover also transaction costs. Support is limited to the 
maximum amount of EUR 500 per livestock uni t. 
• The Co -Operation Measure , as laid down in Article 35 of Regulation (EU) No 1305/2013, 
can support the setting  up, running and direct costs of a wide range of cooperation 
projects. It can support operational groups under the European Innovation Partnersh ip 
Agricultural Productivity and Sustainability, experimental work to develop new products, 
processes and technologies in the agri -food and forest sectors, co -operation among small 
operators in organising joint work processes and sharing facilities and res ources, G/SCM/N/343/EU  
 
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  co-operation among supply chain actors for the establishment and development of short 
supply chains and local markets, joint action undertaken with a view to mitigating or 
adapting to climate change as well as environmental projects and practices, horizontal 
and vertical co -operation among supply chain actors in the sustainable provision of 
biomass, public-private partnerships /non-LEADER local development strategies, drawing  
up of forest management plans, diversification of farming activities into a ctivities 
concerning health care, social integration, community -supported agriculture and 
education about the environment and food. The Co -operation Measure should be used to 
make new things happen. It must not be used to support joint activities which are already 
taking place , but it can support existing entities embarking on new projects.  
Annex II to Regulation (EU) 1305/2013 does not specify support rates for the "Co -
operation" measure. Therefore, the maximum permitted support rate for a given 
operation depends on whether the operation falls within the scope of Art. 42 TFEU (i.e. 
whether it requires state aid clearance), and on whether the maximum sup port rate of a 
different rural development measure applies (pursuant to Art. 35(6) of Regulation (EU) 
1305/2013).  
• The Risk Management Measure  has been newly introduced under the second pillar of 
the CAP (Rural Development) for the period 2014 -2020. This me asure consists of three 
sub-measures: contribution to farmers for (1) insurance premiums, support to (2) mutual 
funds and to (3) an income stabilisation tool (IST). The insurance and mutual funds 
sub-measures support affiliated farmers in managing their pr oduction risks as regards 
losses to their animal husbandry or crop caused by crisis events including adverse climatic 
events, animal and plant diseases, pest infestations, and environmental incidents. The 
IST provides support to mutual funds which compensa te affiliated farmers with up to 70% 
of their income losses. To trigger the compensation, the losses have to exceed 30% of 
the average annual production or income of the individual farmer, with reference to the 
last three years (arithmetic average) or to t he last five years excluding the highest and 
the lowest entry (Olympic average). For all three sub -measures, the maximum EAFRD 
support rate is 65%. The insurance sub -measure provides financial contributions to the 
insurance premium paid by the farmer, while the mutual funds sub-measure and the IST 
(both managed by mutual funds) support the administrative cost s of setting up of mutual 
funds, provide financial contributions to the compensatory amounts paid in case of crisis 
and contribute to the interest on commercial loans taken out by the mutual fund for the 
purpose of paying the compensatory amounts to farmers. No contribution is made to the  
initial capital stock of the mutual funds.  
• Finally, LEADER  is an integrated territorial development tool on sub -regional ("local") 
level. It directly contributes to the balanced territorial development of rural areas, which 
is one of the overall objectives of the rural development policy. The implementation of 
LEADER Local Development Strategies (LDS) can reinforce territorial coherence and 
contribute to the long -term sustainable development of an area. It can also be an 
appropriate tool to address rural-urban relationships. The support granted under the 
LEADER cover preparatory support with a view to preparing and implementing a 
community -led local development strategy; implementation of the community -led local 
development strategy; the local action group's co -operation activities; running costs 
linked to the mana gement of the implementation of the community -led local development 
strategy and the community -led local development  
IPARD II  
1. Title of the programme  
IPARD II, the Rural Development programme under the Instrument for Pre-cession Assistance . 
2. Period covered b y notification  
1 January 2017 -31 December 2018 . G/SCM/N/343/EU  
 
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  3. Policy objective and/or purpose of the programme  
The objective of IPARD is to provide assistance for the progressive alignment of agricultural sector 
in pre -accession countries with Union standards, while pur suing balanced territorial development of 
rural areas and increasing food -safety of those countries as well as their ability to cope with 
competitive pressure . The investment support is to be channelled through management and control 
systems which are comp liant with good governance standards of a modern public administration.  
4. Background and authority for the programme  
Legal basis: Regulation (EU) No 231/2014 of the European Parliament and of the Council of 
11 March  2014 establishing an Instrument for Pre -accession Assistance (IPA II). 
5. Form of assistance granted - Grants from EU budget  
IPARD operational programmes co -financed by the EU budget and the IPARD beneficiary countries.  
6. To whom and how the assistance is provided  
The aid is co -financed by the European Commission together with the IPARD beneficiary countries 
and implemented through multi -annual operational programmes approved by the Commission. By 
means of indirect management, the budget implementation tasks for each measure of every 
programme c overing selection, approval, controls and financial execution of the individual measures, 
are entrusted to the IPARD beneficiary countries. Aid to final recipients is paid in the form of grants.  
7. Total expenditure under the IPARD II  programme 2014 -2020 
Expe nditure for pre -accession (million EUR)  
Financial instrument  2016  2017  2018  
IPARD  339.2  91.6 98.3 
 
 
8. Duration of the program  
2014-2020 for IPARD II . 
9. Trade effects  
No, or at most minimal, trade distorting effects.  
Measures Financed By IPARD  
IPARD is intended to cover the EU assistance by means of multi -annual programmes to the pre -
accession countries in progressive alignment with the standards and policies of the European Union, 
including where appropriate the acquis communautaire , with a view to membership.  
As part of agriculture and rural development policy area, IPARD programmes shall support countries 
in their preparation for the implementation and management of the Common Agricultural Policy. In 
particular, it shall contribute to the s ustainability of the agricultural sector and rural development 
and to the public administration reform in the pre -accession countries , allowing the setting up of the 
management and control structures suitable for managing post -accession EU -funded rural 
development programmes. During 2013, the countries eligible for IPARD were Turkey, Croatia and 
the Former Yugoslav Republic of Macedonia.  
In 2014, with a change in policy approach, all pre -accession countries became eligible, subject to 
the presence of approp riate management and control capacities. In 2015 , IPARD II programmes 
have been  adopted for Albania, North Macedonia, Montenegro, Serbia and Turkey. Entrustment for 
budget implementation tasks has been granted in 2017 under IPARD II to Montenegro, North 
Macedonia and in 2018 to Albania and Serbia.  G/SCM/N/343/EU  
 
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  5  EUROPEAN FISHERIES F UND (EFF) AND EUROPE AN MARITIME AND FISH ERIES FUND 
(EMFF)  
EU Funds  
1. Title of the measure  
The European Fisheries Fund 16(EFF) and the European Maritime and Fisheries Fund17 (EMFF)  
2. Period cove red by the notification  
2018 is the most recently completed calendar year. To be noted , 2015 was the final year of spending 
for the programmes funded by the EFF. The final reports and final payment applications reflecting 
implementation and spending for th e entire programming period have been submitted by 
31 March  2017.  
Since 1 January 2014, the EU has a reformed Common Fisheries Policy (CFP)18 which aims to ensure 
that fishing and aquaculture are environmentally, economically and socially sustainable and th at 
they provide a source of healthy food for EU citizens. Among its objectives, the CFP aims to foster a 
dynamic fishing industry and ensure a fair standard of living for fishing communities. The new CFP 
has four main policy areas: Fisheries management, In ternational policy, Market and trade policy, 
and the EMFF 2014 -2020.  
Delays in adopting the EMFF regulation had a knock -on effect on adoption of the operational 
programmes. However , all 27 programmes were adopted by the end of 2015 and are currently 
procee ding with implementation.  
3. Policy objectives and/or purpose  
The EMFF promotes sustainable fisheries and aquaculture and fosters the implementation of 
measures that are subject to new rules to ensure better compliance of Member States and operators 
with the objectives, rules and targets of the reformed Common Fisheries Policy (CFP).  
The EMFF includes funding opportunities for the protection of the environment through measures in 
support of fisheries resources management, including the transition to maximum  sustainable yield 
(MSY), the introduction of the landing obligation and the adoption of long -term management plans. 
The EMFF also encourages producer organisations to implement the new CFP through new 
management tools (i.e. production and marketing plans) . Under the EMFF, the market intervention 
mechanism has significantly reduced in scope and was phased -out at the end of 2018.  
In addition, in order to increase the number of stocks for which scientific advice is available, the 
budget for data collection an d scientific advice has been substantially increased. Last but not least, 
the budget for fisheries control has also been considerably enlarged to ensure better compliance 
with CFP rules19. 
The EMFF also supports the Integrated Maritime Policy (IMP), facilit ating coordination across borders 
and sectors to bring cost -effective synergies and money savings in managing maritime -related 
activities. Funding focuses mainly on initiatives developed in various sectors across the board like 
maritime spatial planning, i ntegrated maritime surveillance and marine knowledge.  
The EMFF's key objectives are:  
• To help fisher to adapt to new sustainable fishing practices, to diversify their sources of 
income and to make the sector generally more competitive. The European Maritime  and 
                                                
16 Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund . 
17 Regulation  (EU) No 508/2014 of the European Parliament and of the Council of 15 May 2014 on the 
European Maritime and Fisheries Fund . 
18 Regulation (EU) No 1380/2013 of 11 December 2013 (OJ L 354 of 28.12.2013) . 
19 Out of a total amount of € 5.75 billion for the period 2014 – 2020 of the EMFF , € 1.1 billion are 
dedicated to control and data -collection measures.  G/SCM/N/343/EU  
 
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  Fisheries Fund facilitates the Common Fisheries Policy and its objectives of a socially and 
economically sustainable future for the sector.  
• The EMFF also invests in the competitiveness of the fisheries, aquaculture and processing 
sectors. It focuses mainly on supporting innovation in the development or introduction of 
new or substantially improved products, pieces of equipment, processes, tech niques, 
management and organisation systems. Marketing and production plans and the 
development of new markets, together with diversification and complementary sources 
of income, are promoted  as ways to increase income.  
• The EMFF also plays a significant ro le in employment. It supports the creation of jobs in 
fishing, inland fishing and aquaculture and to maintain jobs by supporting blue and green 
growth, complementary activities to fishing, inland fishing and aquaculture.  
• Finally, the EMFF is building on th e positive results from supporting the sustainable 
development of fisheries areas under the EFF. The EMFF sustains the implementation of 
local development strategies in fisheries and aquaculture areas intended to add value, 
create jobs and attract young pe ople. It also promotes innovation at all stages of the 
fisheries and aquaculture supply chain and/or supports diversification inside commercial 
fishing. Such strategies are important not only for social but also for territorial cohesion.  
4.  Background and  authority  
As regards the EMFF, the Treaty of the Functioning of the European Union, and in particular 
Articles  42, 43(2), 91(1), 100(2), 173(3), 175, 188, 192(1), 194(2), 195(2) and 349 thereof are 
relevant. In accordance with the principles of shared management, Member States and the 
Commission are responsible for the management and control of programmes. Member States should 
have the primary responsibility, through their management and control systems, for the 
implementation and control of the operations in programmes.  
5. The form of public support  
Both the EFF (in the 2007 -2013 period) and the EMFF (in the 2014 -2020 period) were and are used 
to co-finance projects, along with national funding. Each Member State is allocated a share of the 
total fund budget based on the size of its fishing industry. Each Member State then draws up an 
operational programme, setting out how it intends to spend the money. Once the Commission 
approves this programme, it is up to the national authorities to decide whi ch projects will be funded. 
The national authorities and the Commission are jointly responsible for the implementation of the 
programme.  
Under the EFF, 98.5% of the support was provided in the form of grants ; 1.5% was delivered by 
financial instruments (FI s), using guarantees and loans which are repayable in nature. Six Member 
States have used FIs in the period 2007 -2013 (Bulgaria, Romania, Greece, Latvia, Estonia and The 
Netherlands). For the EMFF, only one Member State has set up FIs (Estonia).  
6. To whom  and how the public support is provided  
Under the EMFF, beneficiaries are selected on the basis of selection criteria set by the Managing 
Authority. Beneficiaries can include fishermen, fishermen organisations, firms in the fisheries, 
aquaculture, and fish  processing sectors, SMEs, producer organisations, professional organisations, 
fisheries local actions groups (FLAGs) and cooperatives.  
Under EMFF rules, access to funds is conditional upon the compliance by Member States and 
operators with the objectives,  rules and targets of the CFP, in particular the control obligations, the 
rules against illegal, unregulated and unreported fishing and the data collection. This principle 
existed under the EFF but has been given more importance under the EMFF.  
Member Stat es have to publish, on a single website or portal, a list of operations supported under 
the EMFF along with the totals of financial support. These lists must be updated at least every six 
months. This is particularly important in the prevention of funding of beneficiaries involved in illegal 
fishing activities.  G/SCM/N/343/EU  
 
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  7. Total budget of the programme  
The EMFF is the financial support tool of the CFP and the Integrated Maritime Policy (IMP). Its total 
financial envelop is EUR 6.4 billion ( EUR 5.75 billion in shared  management and EUR 0.65 billion in 
direct management). As of 31 December 2018, EUR 1.035 m illion has been paid.  
EMFF allocation by Member State 2014 -2020 (Euros)  
AT 6,965,000.00  
BE 41,746,051.00  
BG 88,066,622.00  
CY 39,715,209.00  
CZ 31,108,015.00  
DK 208,355,420.00  
DE 219,596,276.00  
EE 100,970,418.00  
ES 1,161,620,889.00  
FI 74,393,168.00  
FR 587,980,173.00  
GR 388,777,914.00  
HR 252,643,138.00  
HU 39,096,293.00  
IE 147,601,979.00  
IT 537,262,559.00  
LT 63,432,222.00  
LV 139,833,742.00  
MT 22,627,422.00  
NL 101,523,244.00  
PL 531,219,456.00  
PT 392,485,464.00  
RO 168,421,371.00  
SE 120,156,004.00  
SI 24,809,114.00  
SK 15,785,000.00  
UK 243,139,437.00  
EU27 (*)  5,749,331,600.00  
* Luxembourg is not a recipient of EMFF funds.  
A distinction has to be made between funds which are committed to be spent in selected projects 
and funds that are actually spent in these projects and claimed by the relevant Member State to the 
Commission for payment. As stated above, Member State s have to spend the amounts committed 
within three years. Otherwise the funding is lost to the Member State and by the Commission. 
Funding lost this way is said to be "de -committed".  
The closure documents for the EFF 2007 -2013 programming period have been submitted. 
EUR 4.3 billion was available for the period, of which EUR 3.64 billion , i.e. 84.6% , of the initial 
funding was used.  
8. Duration of the programme  
The EFF programming period was from: 2007 -2013 (31 December 2015 by virtue of the n+2 rule). 
The EMFF programming period is from 2014 to 2020 (31 December 2023 by virtue of the new 
n+3 rule).  
9. Trade effects  
Given that the EMFF's main objective is to support environmentally sustainable, resource -efficient, 
competitive fisheries which a re more selective, produce less discards, and do less damage to marine 
ecosystems, the structural support granted under EU funds has no distortionary effects on trade.  G/SCM/N/343/EU  
 
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  The EU has a shortfall in fisheries and aquaculture products and it is a major importer of these 
products from the rest of the world; hence, the structural support granted under EU funds has very 
limited influence on this situation.  
Finally, under EU State aid legislation, aid for export -related activities, namely aid directly linked to 
the q uantities exported, to the establishment and operation of a distribution network, or to other 
costs linked to the export activity and aid contingent upon the use of domestic over imported goods 
that are  incompatible with the internal market, are not permit ted. 
6  PROGRAMMES IN THE FI ELD OF RESEARCH  
Framework programmes  
1. Title of the subsidy programme  
- the Horizon 2020 EU Framework Programme for Research and Innovation (2014 to 
2020), and  
- the Research and Training Programme of the European Atomic Energy Community 
(2014 -2018) complementing the Horizon 2020 Framework Programme for Research and 
Innovation.  
The arrangements for implementing these framework programmes are essentially the same and are 
therefore described together in the following paragra phs. 
2. Period covered  
2017 and 2018 . 
3. Policy objective  
Financial participation in EU Research and Technological Development (RTD) activities during the 
period 2017 and 2018 is provided through the above -mentioned framework programmes.  
Horizon 2020 focus es on three priorities, namely generating excellent science in order to strengthen 
the Union's world -class excellence in science, fostering industrial leadership to support business, 
including micro, small and medium -sized enterprises (SMEs) and innovation , and tackling societal 
challenges, in order to respond directly to the challenges identified in the Europe  2020 strategy by 
supporting activities covering the entire spectrum from research to market.  
These objectives and activities are implemented through  the Decision establishing a specific 
programme implementing Horizon 2020 of 3 December 2013.20 
The framework programmes of the European Atomic Energy Community have two main parts: 
nuclear fission and controlled thermonuclear fusion (excluded). The objecti ves and activities to be 
undertaken are set out in the decisions adopting these framework programmes 2013/1314 of 
16 December  2013.   
The activities under these framework programmes relate to fundamental research, industrial 
research or pre -competitive deve lopment. Financing of product development is excluded.  
The implementation of Horizon 2020 and the Euratom Programme is aimed to respond to the 
evolving opportunities and needs of science and technology, industry, policies and society.  
                                                
20 OJ L 347, 20.12.2013, p. 965.  G/SCM/N/343/EU  
 
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  4. Background and aut hority for the subsidy  
The legal bases of these programmes are, respectively, Article 166 of the EC Treaty and Article 7 of 
the Treaty establishing the European Atomic Energy Community.  
The legal framework of the framework programmes consists of a number o f main legal and 
implementing acts:  
A Decision or Regulation by the Council on the "Framework Programme":  
-  EU: Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 
December 2013 establishing Horizon 2020 - the Framework Progra mme for Research 
and Innovation (2014 -2020), OJ L347, 20 December 2013, page 105;  
- Euratom: Council Regulation (EURATOM) No 1314/2013 of 16 December 2013 on the 
Research and Training Programme of the European Atomic Energy Community (2014 -
2018) complement ing the Horizon 2020 Framework Programme for Research and 
Innovation, OJ L 347, 20.12.2013, p. 948.  
Each framework programme is further implemented by Decisions by the Council adopting "Specific 
Programmes":  
- EU: Council Decision of 3 December 2013 establ ishing the specific programme 
implementing Horizon 2020 - the Framework Programme for Research and Innovation 
(2014 -2020) and repealing Decisions 2006/971/EC, 2006/972/EC, 2006/973/EC, 
2006/974/EC and 2006/975/EC, OJ L 347, 20.12.2013, p. 965.  
- Euratom: S pecific Programmes "Euratom" and "Direct Actions by the Joint Research 
Centre" - Council Decisions 2012/94 and 2012/95/Euratom of 19 December 2011, p. 
33 and 40;  
Rules governing the implementation of the activities are contained in the "Rules for Participa tion", a 
regulation adopted by the European Parliament and the Council (EC) and by the Council alone 
(Euratom):  
- EU: Regulation (EU) No 1290/2013 of the European Parliament and of the Council of  11 
December 2013 laying down rules for participation and dis semination in "Horizon 2020 -
the Framework Programme for research and Innovation (2014 -2020) and repealing 
Regulation (EC) No 1906/2006, OJ L 347, 20.12.2013, p. 81 ; 
- Euratom: Council Regulation (EURATOM) No 1314/2013 of 16 December 2013 on the 
Research an d Training Programme of the European Atomic Energy Community (2014 -
2018) complementing the Horizon 2020 Framework Programme for Research and 
Innovation . 
Work programmes are adopted specifying the research topics and other conditions for the award of 
grants  are adopted, in general, every two years.  
Grant agreements are concluded with the participants in the projects. The various model grant 
agreements, as well as the other documents are available at:  
https://ec.europa.eu/info/funding -tenders/opportunities/portal/screen/how -to-
participate/reference -documents  
5. Form of the subsidy  
Support to RTD activities is mainly provided in the form of grants within the meaning of Article 25.3 
of the WTO Agreement on Subsidies and Countervailing Measures.  G/SCM/N/343/EU  
 
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  6. To whom and how the subsidy is provided  
Research projects are carried out primarily by participants established within the European Union. 
Legal entities established in a country that has signed an association agreement (associated country) 
may participate in a project and receive EU funding from the Framework Programme on the s ame 
terms as those established in Member States. Legal entities established in other countries may 
receive funding under certain conditions.  
In general, research projects must include the participation of at least three independent legal 
entities each esta blished in a different Member State or associated country.  
The grant is awarded mainly on the basis of the scientific excellence to projects submitted by 
consortia of universities, research organisations and undertakings following, as a general rule, an 
invitation for proposals and an evaluation procedure with independent experts and selection 
procedure. The undertakings apply in function of their interest in carrying out a research project on 
a specific research topic in collaboration with other partners.  
The amount of the grant is typically calculated as a percentage of eligible costs of the project, 
depending on the nature of the activity concerned. Eligible costs are defined in the Rules for 
Participation.  
7. Amount of subsidy  
2017 -2018  Total amounts gra nted 
(in millions of EUR)  
Horizon 2020 EU Framework programme for Research and Innovation  17,782  
Programme of the European Atomic Energy Community (EURATOM) 
complementing Horizon 2020 (excluding Fusion grants)  109 
Total  17,892  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement.  
A project typically lasts for 3 -4 years and the EU funding is awarded for this period. Subject to 
delivery of required documents at pre -determined deadlines, pay ments are released in instalments.  
9. Trade effects of the subsidy  
The Framework Programmes have no direct impact on trade. As a general rule, further work and 
considerable additional financial efforts of the participants are always necessary for the resul ts of an 
RTD project to lead to a commercially exploitable process or product.  
Furthermore, access to the results must be shared among partners and a more widely dissemination 
of results is required and supported, which serves the public interest. One of the main benefits lies 
in establishing links among research community partners within Europe but also with non -EU 
countries.  
The economic impact of industrially oriented programmes can be assessed only several years after 
the completion of the projects bec ause further substantive investment is required after the end of 
the research projects to develop any commercial applications.  
Research on Coal and Steel  
The Treaty establishing the European Coal and Steel Community (ECSC) expired on 23  July 2002. 
The rema ining assets at the expiry of the ECSC were transferred to the European Community and a 
common Research Fund for Coal and Steel (RFCS) was created, dedicated to research in the coal 
and steel sectors. The activities carried out under this fund are exclusiv ely financed by the yearly 
returns generated by these assets.  
The Research Programme of the Research Fund for Coal and Steel was established by the Council 
Decisions 2003/76/EC, 2003/77/EC, 2003/78/EC of 1 February 2003, and 2008/376/EC of G/SCM/N/343/EU  
 
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  29 April 2008 pu blished in the Official Journal of 5 February 2003 (see OJ L 29/22, OJ L 29/25, 
OJ L 29/28). This last decision has been amended by the Council Decision 2008/376/EC of 
29 April 2008, published in the OJ L130/7 , dated 20.5.2008.  
The programme is closely co -ordinated with other activities, carried out either in the Member States 
or existing EU research programmes, such as the Framework Programme of the European 
Community for research, technological development and demonstration activities. In order to 
increas e the impact of this programme, the European Commission will encourage and promote 
co-ordination, complementarities and synergy between the different research programmes and 
support the exchange of information between projects financed under this programme  and those 
financed under the Research Framework Programme.  
The programme related documents and the information package are available on CORDIS at: 
http://ec.europa.eu/resear ch/industrial_technologies/rfcs_en.html . 
For coal and steel, the Union contributes financially in the following ways: through research, pilot 
and demonstration (RTD) projects, accompanying measures and support and preparatory actions.  
(1) Research, Pilot a nd Demonstration:  
Research projects are intended to cover investigative or experimental work with the aim of acquiring 
further knowledge. The financial contribution of the Union is up to 60% of the allowable costs.  
Pilot projects address the construction, operation and development of an installation or a significant 
part of an installation on an appropriate scale. These installations should have a sufficient scale for 
use. They should allow the investigation of potential for putting theoretical or laborator y results 
either into practice or to increase the reliability of the technical and economic data needed to 
progress to the demonstration stage, and in certain cases to the industrial and/or commercial stage. 
The financial contribution of the Union is up to  50% of the allowable costs.  
Demonstration project: aim at constructing and/or operating an industrial -scale installation or a 
significant part of an industrial -scale installation. Such projects aim to bring together all the technical 
and economic data in order to proceed with the industrial and/or commercial exploitation of the 
technology at minimum risk. The financial contribution of the Union is up to 50% of the allowable 
costs.  
(1) Accompanying measures are designed to complement and/or co -ordinate rese arch 
activities related to this programme.  
(2) Support measures: this includes the dissemination of research results and the 
promotion of the use of knowledge gained.  
It is worth noting that the results of all RFCS funded research projects are made public and can be 
acquired against a small fee by any organisation or individual, as provided for under Article 4 of 
Annex III of the model contract. This allows for a wide and non -discriminatory dissemination of the 
research results.  
Total EC support allocated t o coal and steel projects in the period 2015 and 2016 are:  
Year 2017  2018  
Support in million s of EUR 47 39 
7  THE EUROPEAN UNION'S  STRUCTURAL ACTIONS  
The Union's structural actions (comprising the Structural Funds and the Cohesion Fund) are intended 
to strengthen the economic and social cohesion of the Union, in particular by reducing disparities 
between the levels of development of the various regions and the backwardness of the 
least-favoured regions.  
The years 2017 and 2018 concern two legislative pac kages: 2007 -2013 and 2014 -2020. G/SCM/N/343/EU  
 
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  For both legislative periods the legislative package is composed of the following elements:  
- A general regulation which defines common rules, applicable to the European Regional 
Development Fund (ERDF), European Social Fund  (ESF) and the Cohesion Fund (CF). 
Based on the principle of 'shared management' between the Union, the Member States 
and the regions, this regulation offers a new programming process as well as new norms 
for financially managing, controlling and evaluatin g the projects.  
- A regulation for each of the sources of financing (ERDF, ESF, CF and the Instrument for 
Pre-Accession Assistance (IPA)).  
- A new regulation creating the possibility to create a cross -border authority to carry out 
cooperation programmes.  
Out-turn of payment appropriations in 2017 and 2018 per Fund (in EUR million s) 
Fund  Total 
appropriations 
2017  Out-turn in 2017  Total 
appropriations 
2018  Out-turn in 2018  
ERDF  16,825  16,816  30,178  29,872  
CF 8,272  8,269  9,453  9,247  
ESF 10,337  9,272  13,726  12,912  
These structural actions are required to comply with the Union's rules on the provision of state aid 
(Articles 107 -108 of the TFEU).  
The structural actions are notified in the spirit of transparency. The aid involved is largely devoted 
to the least -developed areas of the EU, and the majority of aid goes to finance infrastructure or to 
assist individuals directly, without necessarily benefiting commercial enterprises. Consequently, as 
stated at the beginning of this document, the notification of a particular fund does not prejudge the 
status of the aid involved.  
European Regional Development Fund  
1. Title of the programme  
European Regional Development Fund (ERDF) . 
2. Period covered by the notification  
2017-2018. 
3. Programming peri od 
The period covered by the notification refers to programming periods: 2007 -2013 and 2014 -2020. 
Please note that programmes under the programming period 2007 -2013 are now being closed.  
4. Legal basis  
Articles 174 and 176 of the TFEU.  
For the programming period 2007 -2013, the legal basis is:  
- Regulation (EC) No 1083/2003 of 11 July 2006 laying down provisions on the European 
Regional Development Fund, the European Social Fund and the Cohesion Fund and 
repealing Regulation (EC) No 1260/1999;  
- Regulation ( EC) No 1080/2006 Regulation (EC) of the European Parliament and of the 
Council of 5 July 2006 on the European Regional Development Fund and repealing 
Regulation (EC)  No 1783/1999;  G/SCM/N/343/EU  
 
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  - Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for the 
implementation of Council Regulation (EC) No 1083/2006 laying down general 
provisions on the European Regional Development Fund, the European Social Fund and 
the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European  Parliament 
and of the Counci l on the European Regional Development Fund.  
For the programming period 2014 -2020, the legal basis is:  
- Regulation (EC) 1303/2013 of 17 December 2013 laying down common provisions on 
the European Regional Development Fund, the European Social Fund, the Co hesion 
Fund, the European Agricultural Fund for Rural Development and the  European Maritime 
and Fisheries Fund and repealing Council Regulation (EC) No  1083/2006;  
- Regulation (EC) No 1301/2013 of 5 July 2006 on the European Regional Development 
Fund and r epealing Regulation (EC) No 1080/2006;  
- Commission Delegated Regulation (EU) No 480/2014 of 3 March 2014 supplementing 
Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying 
down common provisions on the European Regional Develo pment Fund, the European 
Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development 
and the European Maritime and Fisheries Fund and laying down general provisions on 
the European Regional Development Fund, the European Social Fun d, the Cohesion 
Fund and the European Maritime and Fisheries Fund.  
5. Form of assistance granted  
Grants or other forms of support from the Union budget for ERDF resources are mainly used to 
co-finance:  
• productive investment leading to the creation or maint enance of jobs;  
• investment in infrastructure;  
• development of endogenous potential by measures which support regional and local 
development.  
6. Objectives  
Regional policy targets all regions and cities in the European Union in order to support job creation, 
business competitiveness, economic growth, sustainable development, and improve citizens' quality 
of life.  
In 2007 -2013 the objectives are the following:  
- The Convergence  Objective, which shall be aimed at speeding up the convergence of 
the least-developed Member States and regions by improving conditions for growth and 
employment through the increase and improvement of the quality of investment in 
physical and human capital, the development of innovation and of the knowledge 
society, adaptab ility to economic and social changes, the protection and improvement 
of the environment, and administrative efficiency. This objective is financed by the 
ERDF, the ESF and the CF . 
- The Regional Competitiveness and Employment Objective, which shall, outsid e the 
least-developed regions, be aimed at strengthening regions' competitiveness and 
attractiveness as well as employment by anticipating economic and social changes, 
including those linked to the opening of trade, through the increase and improvement 
of the quality of investment in human capital, innovation and the promotion of the 
knowledge society, entrepreneurship, the protection and improvement of the 
environment, and the improvement of accessibility, adaptability of workers and 
businesses as well as the development of inclusive job markets. This objective is 
financed by the ERDF and the ESF . G/SCM/N/343/EU  
 
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  - The European Territorial Cooperation Objective, which shall be aimed at strengthening 
cross-border cooperation through joint local and regional initiatives, str engthening 
trans-national cooperation by means of actions conducive to integrated territorial 
development linked to the Union priorities, and strengthening interregional cooperation 
and exchange of experience at the appropriate territorial level. This obje ctive is financed 
by the  ERDF.  
For the period 2014 -2020 the ERDF focuses its investments on several key priority areas. This is 
known as "thematic concentration ": 
- Innovation and research;  
- The digital agenda;  
- Support for small and medium -sized enterpr ises (SMEs);  
- The low -carbon economy.  
The ERDF resources allocated to these priorities will depend on the category of region.  
In more developed regions, at least 80% of funds must focus on at least two of these priorities.  
In transition regions, this focu s is for 60% of the funds.  
It is 50% in less developed regions.  
Furthermore, some ERDF resources must be channelled specifically towards low -carbon economy 
projects:  
More developed regions: 20%;  
Transition regions: 15%; and  
Less developed regions: 12%.  
7. Eligibility  
The rules on eligibility are determined at the national level, except when there are general rules laid 
down in the applicable EU legislation.  
The eligibility in the period 2007 -2013 is as follows:  
- The Convergence Objective : The areas eligibl e for the convergence objective combine 
the regions eligible on a regional criteria basis (GDP is less than 75% of the Union 
average) and Member States who are eligible for the Cohesion Fund on a national 
criteria basis (GNI less than 90% of the European a verage). Transitional support is 
granted for regions corresponding to level 2 of the common classification of Territorial 
Units for Statistics (hereinafter NUTS level  2) within the meaning of Regulation (EC) No. 
1059/2003, which were covered by Objective 1  in the previous period but whose GDP 
exceeds 75% of the EU -15 GDP average (called "phasing -in"). 
- Regional Competitiveness and Employment Objective : The European Union regions 
which are not eligible for the convergence objective or for the transitional s upport of 
the regional competitiveness and employment "phasing in" objective are all eligible for 
the regional competitiveness and employment objective.  G/SCM/N/343/EU  
 
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  - European Territorial Cooperation Objective : The areas eligible are divided in three:  
i. For cross -border cooperation:  NUTS level 3 regions are eligible, along all the 
land-based internal borders and some external borders, along maritime borders 
separated by a maximum distance of 150 km.  
ii. For trans -national cooperation: all the regions are eligible but, in consultation with the 
Member States, the Commission has identified 13 cooperation areas (Northern 
Periphery, Baltic Sea, North West Europe, North Sea, Atlantic Coast, South West 
Europe, Alpine  Space, East -Central Europe, Mediterranean, South -East Europe , 
Acores -Madeira -Canarias, Indian Ocean Area, Caribbean  Area).  
iii. For inter-regional  cooperation: all the European regions are eligible.  
In the period 2014 -2020, resources for the Investment for growth and jobs goal are allocated among 
the following three cat egories of regions:  
a) less developed regions, whose GDP per capita is less than 75% of the average GDP of 
the EU-27; 
b) transition regions, whose GDP per capita is between 75% and 90% of the average GDP of 
the EU -27; 
c) more developed regions, whose GDP per capita  is above 90% of the average GDP of the 
EU-27. 
8. Principles of intervention  
The principles of intervention are: complementarity, coherence, coordination, conformity and 
additionally, proportionality, equality between men and women and non -discrimination, sustainable 
development and using the funds to focus on the Lisbon strategy priorities.  
9. Budget  
For the period 2007 -2013, the European Council agreed in December 2005 on the budget for the 
period 2007 -2013 and allocated EUR 347 billion on Structural and Cohesion Funds , of which 81.5% 
was planned to be spent in the "Convergence" regions. Based on simplified procedures, nearly all of 
the 436  programmes covering all EU regions and Member States were adopted before the end 
of 2007. 
In the period 2007 -2013, cohesion policy benefited from 35.7% of the total EU  budget or 
EUR 347.41  billion (at current prices). 81.54% of this budget was for the Convergence Objective, 
15.95% for the Regional Competitiveness and Employment and 2.52% fo r the European Territorial 
Cooperation.  
For the period 2014 -2020, economic, social and territorial cohesion will benefit from 1/3 of the 
EU budget amounting to close to EUR 373 billion (at current prices).  G/SCM/N/343/EU  
 
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  10. Financial allocations in commitment appropriat ions per year in 2014 -2020 
Please note that this data covers Heading 1b of the EU budget (economic, social and territorial 
cohesion):  
2014 -2020 (EUR million, current prices)  
 TOTAL  
2014  36,196  
2015  60,319  
2016  50,837  
2017  54,086  
2018  55,528  
2019  57,191  
2020  58,586  
Sum:  372,745  
11. Cohesion policy and state aid  
Cohesion Policy provides an integrated, strategic, medium term planning and financial framework to 
address the reduction of regional disparities by promoting development. It does this through 
geographic and financial targeting (concentration), governance processes and evaluation 
mechanisms. Within the context of providing financial assistance to economic operators, cohesion 
policy financing must respect the State aid rules where re levant.  
In line with EU cohesion policy, the State aid guidelines focus regional aid on the most deprived 
regions of the enlarged Union, while allowing for the need to improve competitiveness and to provide 
for a smooth transition. The use of the structura l funds by national authorities is subject to EU state 
aid rules.  
12. Trade effects  
Because the Funds are designed to alleviate disparities between regions within the Union, and 
because the aid is paid out on a horizontal basis, within eligible regions, it  is considered that the 
trade effects are minimal.  
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