G/SCM/N/401/EU  
25 July 2023 
(23-5071) Page: 1/54 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT  1994 AND ARTICLE  25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
EUROPEAN UNION 
The following communication, dated and received on 14 July  2023, 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 G ATT 1994 and Article  25 
of the Agreement on Subsidies and Countervailing Measures.  
  G/SCM/N/401/EU  
- 2 - 
  TABLE OF CONTENTS  
1  INTRODUCTION  ................................ ................................ ................................ ...........  4 
1.1  Structure of Notification  ................................ ................................ ................................  4 
1.2  Period Covered  ................................ ................................ ................................ .............  4 
1.3  Presentation of Notification  ................................ ................................ ............................  4 
1.4  Status of Subsidies  ................................ ................................ ................................ ....... 4 
2  EUROPEAN UNION SUBSIDIES  ................................ ................................ .....................  4 
3  EU FINANCING PROGRAMMES IN THE FIELD OF ENERGY AND TRANSPORT  .................  5 
3.1  Connecting Europe Facility  (in the field of energy) (2021 --2027)  ................................ ........  5 
3.2  Shared Management Funds (in the field of energy)  ................................ ...........................  6 
3.2.1   European Regional Development Fund (ERDF) and Cohesion Fund (CF)  ............................  6 
3.2.1.1   The ERDF (in the field of energy)  ................................ ................................ ..............  6 
3.2.1.2   Cohesion Fund  ................................ ................................ ................................ ........  7 
3.2.2   European Social Fund  ................................ ................................ ................................ . 7 
3.2.3   European Agricultural Fund for Rural Development  ................................ ........................  8 
3.2.4   Just Transition Fund ................................ ................................ ................................ ... 9 
3.3  Guidelines for the development of the trans -European transport network (Regulation EU 
1315/2013)  ................................ ................................ ................................ ......................  11 
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of transport)  
(Regulation EU  No 2021/1153)  ................................ ................................ ...........................  11 
3.3.2   Shared Management Funds (in the field of transport)  ................................ ...................  12 
3.3.2.1   The ERDF  ................................ ................................ ................................ .............  12 
3.3.2.2   The CF  ................................ ................................ ................................ .................  13 
4  COMMON AGRICULTURAL POLICY (CAP)  ................................ ................................ .... 13 
4.1  General Observations  ................................ ................................ ................................ .. 13 
4.1.1   The CAP reform process  ................................ ................................ ...........................  13 
4.1.2   Financing the CAP  ................................ ................................ ................................ .... 14 
4.1.3   Information on the Internet  ................................ ................................ ......................  15 
4.2  European Agricultural Guarantee Fund (EAGF)  ................................ ...............................  15 
4.3  Measures Financed Through the EAGF ("First Pillar" of the CAP)  ................................ ....... 16 
4.3.1   Export refunds  ................................ ................................ ................................ ........  16 
4.3.1.1   Cereals  ................................ ................................ ................................ ................  18 
4.3.1.2   Rice ................................ ................................ ................................ ....................  19 
4.3.1.3   Sugar  ................................ ................................ ................................ ..................  19 
4.3.1.4   Olive oil  ................................ ................................ ................................ ...............  19 
4.3.1.5   Textile plants ................................ ................................ ................................ ........  20 
4.3.1.6   Fruit and vegetables  ................................ ................................ ..............................  20 
4.3.1.7   School schemes  ................................ ................................ ................................ .... 21 
4.3.1.8   Wine ................................ ................................ ................................ ...................  22 
4.3.1.9   Promotion of agricultural products  ................................ ................................ ...........  24 
4.3.1.10   Other plant products  ................................ ................................ ............................  25 G/SCM/N/401/EU  
- 3 - 
  4.3.1.11   POSEI and Aegean Islands - excluding direct aids  ................................ ...................  25 
4.3.1.12   Milk and dairy product  ................................ ................................ .........................  26 
4.3.1.13   Beef and veal  ................................ ................................ ................................ ..... 26 
4.3.1.14   Sheep meat and goat meat  ................................ ................................ ..................  27 
4.3.1.15   Pig meat  ................................ ................................ ................................ ............  27 
4.3.1.16   Eggs and poultry meat  ................................ ................................ .........................  28 
4.3.1.17   Bee-keeping/apiculture  ................................ ................................ ........................  28 
4.3.2   Direct Payments  ................................ ................................ ................................ ...... 29 
4.3.2.1   Structure of direct payments and general conditions  ................................ .................  29 
4.3.2.2   Basic payment  ................................ ................................ ................................ ...... 32 
4.3.2.3   Greening and Cross Compliance  ................................ ................................ ..............  33 
4.3.2.4   Coupled Support  ................................ ................................ ................................ ... 34 
4.3.3   POSEI and Aegean islands  ................................ ................................ ........................  35 
4.4  The European Agricultural Fund for Rural Development ("Second Pillar" of the CAP) ............  35 
4.5  Measures Financed by the European Agricultural Fund for Rural Develo pment ("Second  
Pillar" of the CAP)  ................................ ................................ ................................ .............  37 
4.5.1   Policy framework  ................................ ................................ ................................ ..... 37 
4.5.2  Rural development measures  ................................ ................................ ....................  38 
4.6  IPARD II  ................................ ................................ ................................ ....................  42 
4.7  Measures Financed By IPARD  ................................ ................................ .......................  43 
5  EUROPEAN MARITIME, FISHERIES AND AQUACULTURE FUND (EMFAF)  .....................  44 
5.1  EU Funds  ................................ ................................ ................................ ...................  44 
6  PROGRAMMES IN THE FIELD OF RESEARCH  ................................ ...............................  47 
6.1  Framework programmes ................................ ................................ ..............................  47 
7  THE EUROPEAN UNION'S STRUCTURAL ACTIONS  ................................ .......................  51 
7.1  European Regional Development Fund  ................................ ................................ ..........  51 
 G/SCM/N/401/EU  
- 4 - 
  1  INTRODUCTION  
1.1  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 notifica tion 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 notification, covers 
subsidies granted by individual Member States . The Member States' notifications cover subsidies 
granted at both national and sub -national level.  
1.2  Period Covered  
As far as possible, this notification relates to subsidies granted during t he period 2021  and 2022  
and to subsidy programmes which are currently in force and provides statistical information at least 
up to the end of 2022 . 
1.3  Presentation of Notification  
The information provided in this notification includes, as far as possible, all the 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 required elements are stil l included.  
1.4  Status of Subsidies  
In preparing this notification, the EU has attempted to achieve the maximum transparency regarding  
aid and support measures granted within its territory . The fact that such aid has been notified does 
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 of its expenditure amounts t o a specific subsidy.  
2  EUROPEAN UNION  SUBSIDIES  
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 . All these are described in m ore 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 to 
determine its conformity with Article  107 of the EU Treaty . Member States are required t o 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 issues 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 the 27 Member States' aid schemes can be found in addenda to this notification.  G/SCM/N/401/EU  
- 5 - 
  3  EU FINANCING PROGRAMMES IN THE FIELD OF ENERGY AND TRANSPORT  
3.1  Connecting Europe Facility (in the field of energy) (2021 --2027)  
1. Title of the subsidy programme  
Connecting Europe Facility (in the field of energy) (CEF -Energy).  
2. Period covered by the notification  
2021-2022.  
3. Policy objective and/or pu rpose of the subsidy  
CEF - Energy is available for trans -European energy infrastructure projects such as gas pipelines, 
transmission grids, LNG terminals, gas storage, smart grids, and carbon dioxide networks . Every 
two years the European Commission draws up a list of EU projects of common interest (PCIs) which 
may apply for CEF funding . The fifth list of EU PCIs from November  2021 includes 98 projects 
(67 electricity transmission and storage, 5 smart grid deployment, 20 gas, and 6 cross -border carbon 
dioxide networks).  
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 grantin g 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  sufficient market 
finance or 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).  
The entry into force of the revised TEN -E Regula tion (Regulation (EU) 2022/869) in June 2022 did 
not directly impact CEF -funding in year 2022.  
Since 2021, CEF Energy includes an additional window for cross -border projects in the field of 
renewable energy (cross -border RES projects) . There is an applicat ion process to obtain the 
cross-border RES project status first, before being eligible for CEF Energy funding . The first three 
such projects were selected in 2022, which cover offshore wind park, hydrogen value chain and 
decarbonised district heating system . New projects with status will be selected in 2023 and every 
year until 2027.  
4. Background and authority for the subsidy  
Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing 
the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) 
No 283/2014;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) No  714/2009 and (EC) 
No 715/2009 Text with EEA relevance;  
Regulation (EU) 2022/869 of the European Parliament and of the Council of 3 0 May 2022 on 
guidelines for trans -European energy infrastructure, amend ing Regulations (EC) No 715/2009, 
(EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing 
Regulation (EU) No 347/2013  
Commission Delegated Regulation (EU) 2020/389 of 31  October  2019 amending Regulation (EU) 
No 347/2013 o f the European Parliament and of the Council as regards the Union list of projects of 
common interest.  
Commission Delegated Regulation (EU) 2022/564 of 1 9 November  2021 amending Regulation (EU) 
No 347/2013 of the European Parliament and of the Council as r egards the Union list of projects of 
common interest . G/SCM/N/401/EU  
- 6 - 
  Commission Delegated Regulation (EU) 2022/2202 of 2 9 August  2022 supplementing Regulation 
(EU) 2021/1153 of the European Parliament and of the Council by establishing a list of selected 
cross-border pro jects in the field of renewable energy . 
5. Form of the subsidy  
Grants.  
6. To whom and how the subsidy is provided  
Others.  
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
In the period - 2021-2022, CEF Energy awarded grants of EUR  1.66 billion to 18 actions (5 electricity 
actions, 4 CO2 actions, 3 gas actions,1 Smart Grid action, and 5 cross -border renewable actions).  
8. Duration of the subsidy  
N.A. 
3.2  Shared Management Funds (in the field of energy)  
In the period 2021 -2022, EU Funds cover two budgetary periods : the period 2014 -2020 and the 
period 2021 -2027.  
3.2.1   European Regional Development Fund (ERDF) and Cohesion Fund (CF)  
In the period 2014 -2020, around EUR  29 billion all ocated 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 buildings 
and enterprises.  
In the period 2021 -2027, around EUR 128.9 bn allocated in total to the low carbon economy p riority 
from the ERDF and CF . The ERDF and CF have 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.  
3.2.1.1   The ERDF (in the field of energy)  
The E RDF 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, including the low -carbon economy 
for the period 2014 -2020 and a greener,  low-carbon transitioning towards a net zero carbon 
economy and resilient Europe for the period 2021 -2027.  
In the period 2021 -2027, the ERDF allocates a total of EUR  104.3  billion to activities under a greener, 
low-carbon transitioning towards a net zero c arbon economy and resilient Europe by promoting clean 
and fair energy transition, green and blue investment, the circular economy, climate change 
mitigation and adaptation, risk prevention and management, and sustainable urban mobility (PO2) . 
Furthermore, some E RDF 2014-2020 resources must be channelled specifically towards low -carbon 
economy projects : 20% in more developed regions ; 15% in transition regions ; and 12 % in less 
developed regions : 12%. 
The same applies for the E RDF 2021-2027 where resources allocated to a greener, low carbon and 
transitioning economy also depend on the category of region with at least 85 % of funds focusing on 
either a greener Europe or smarter Europe priorities ; at least 30 % in transition regions and in less 
develop ed regions.  G/SCM/N/401/EU  
- 7 - 
  In the context of the Union emergency intervention to address high energy prices resulting from the 
impact of Russia 's war of aggression against Ukraine, the E RDF 2014-2020 allocations coul d 
exceptionally be used to provide working capital supp ort to SMEs particularly affected by energy 
price increases and may benefit from a co -financing rate of 100 %. 
For further details and a more complete description on the E RDF, please see section 7.  
3.2.1.2   Cohesion Fund  
The Cohesion Fund is aimed at Member States w hose 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, notably in the environment.  
In the period 2014 -2020, the Cohesion Fund allocates a total of EUR  63.4 billion to activities in total, 
which include projects related to energy, as long as they clearly benefit the environment in terms of 
energy efficiency, use of renewable energy, developing rail transpor t, supporting intermodality, 
strengthening public transport, etc.  
In the period 2021 -2027, the Cohesion Fund allocates a total of EUR  24.5 billion to activities under 
a greener, low -carbon transitioning towards a net zero carbon economy and resilient Europ e by 
promoting clean and fair energy transition, green and blue investment, the circular economy, climate 
change mitigation and adaptation, risk prevention and management, and sustainable urban mobility 
(PO2).  
For further details and a more complete descri ption on the ERDF, please see section 7.  
3.2.2   European Social Fund  
1. Title of the subsidy programme  
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 poverty;  
• investing in education, skills and lifelong learning;  
• enhancing institutional capacity and an efficient public administration.  
In addition, 20 % of ESF invest ments 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 sectors related to 
the environment and energy.  G/SCM/N/401/EU  
- 8 - 
  4. Background and authority for the subsidy  
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  
Grants and financial instruments ( loans, guarantees and equity, possibility to combine with grants).  
6. To whom and how the subsidy is provided  
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 wh ich 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  
The ESF contribution allocated to the thematic objective "Supporting the s hift to a low -carbon, 
resource efficient economy", as a secondary theme, amounts 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 o f the regions (from 
50 to 85% at priority axis level).  
Financial instruments 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  
2014-2020.  
3.2.3   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 "first pillar") . Rural 
Development policy shares a number of objectives with other European Structural and Investment 
Funds (ESIF).  
1. Title of the subsidy programme  
While Regulation (EU) 1305/2013 was replaced by the new Regulation (EU) 2021/2115 from 
January  2023, it continu ed to apply in the transitional period largely unchanged (as during the 
2014-20 period), with some additional elements to ensure a smooth transition to the new CAP . 
Regarding the implementation of existing Rural Development Programmes, Regulation 
(EU)1305/ 2013 will also continue to apply until the end of 2025.  
2. Period covered by the notification  
2014–2022.  
3. Policy objective and/or purpose of the subsidy  
In the field of energy, the EAFRD focuses on the support of rural development under investment in 
physical assets . Support for processing of agricultural biomass for renewable energy, production of G/SCM/N/401/EU  
- 9 - 
  bioenergy for on -farm use and support of infrastructure for energy supply for distributing renewable 
energy are available . Under farm and business development measur e, renewable energy production 
can also be supported as a startup aid for non -agricultural activities or diversification into 
non-agricultural activities.  
4. Background and authority for the subsidy  
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  
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants).  
6. To whom and how the subsidy is provided  
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  
Rural Development Programmes are co -funded from national resou rces and the EAFRD . For the 
period 2014 -22, total planned support was EUR  200 billion, of which EUR  136 billion from EU funds 
and the remainder from national budgets . In response to the COVID -19 pandemic, the Next 
Generation EU (NGEU) budget co -funded rural development activities in 2020 and 2021 for a total 
amount of EUR  8.1 billion . Moreover, energy -related projects can also be financed from other 
measures, such as measures aiming at improving the economic performance of farms, including 
irriga tion (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 minimum EU contribution is 20 % share of EAFRD 
contribution i n 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 operati on. 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 investment 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  
2014-2022. 
3.2.4   Just Transition Fund  
1. Title of the subsidy programme  
Just Transition Fund.  G/SCM/N/401/EU  
- 10 - 
  2. Period covered by the notification  
2021-2022.  
3. Programming period  
The period covered by the notification refers to programming period 2021 -2027.  
4. Background and authority for the subsidy  
Articles 174 and 176 of the TFEU.  
For the programming period 2021 -2027, the legal basis is:  
-  Regulation (EU) 2021/1060 of the European Parliament and of the Council of 
24 June 2021 laying down common provisions on the European Regional Development 
Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and 
the European Maritime, Fisheries and Aquac ulture Fund and financial rules for those and 
for the Asylum, Migration and Integration Fund, the Internal Security Fund and the 
Instrument for Financial Support for Border Management and Visa Policy;  
- Regulation (EU) 2021/1056 of the European Parliament and of the Council of 
24 June 2021 establishing the Just Transition Fund.  
5. Form of the subsidy  
Grants or other forms of support from the Union budget for ERDF resources are mainly used to 
co-finance:  
6. Policy o bjective  and/or purpose of the subsidy  
The Just Transition Fund is to provide support to the people, economies and environment of 
territories which face serious socio -economic challenges deriving from the transition process towards 
the Union 's 2030 targets for energy and climate and a climate -neutr al economy of the Union 
by 2050, based on the Paris Agreement.  
7. To whom and how the subsidy is provided  
The rules on eligibility are determined at the national level, except when there are general rules laid 
down in the applicable EU legislation.  
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. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
For the period 2021 -2027, resources for the JTF under the Investment for jobs and growth goal that 
are ava ilable for budgetary commitment for the period 2021 -2027 shall be EUR 17,5 billion  in 2018 
prices.  G/SCM/N/401/EU  
- 11 - 
  Financial Allocations In Commitment Appropriations Per Year In 2021 -2022  
Please note that this data covers Heading 3  of the EU budget:  
2021 -2027 (EUR  million, current prices ) 
 TOTAL  
2021  0 
2022  6.894  
2023  7.006  
2024  1.582  
2025  1.607  
2026  1.323  
2027  1.360  
Sum:  19.782  
10. JTF and state aid  
The JTF provides an integrated, strategic, medium term planning and financial framework to address 
the social, employment, economic and environmental impacts of the transition towards the Union 's 
2030 targets for energy and climate and a climate -neutral economy of the Union by 2050, based on 
the Paris Agreement . Within the context of providing financial ass istance to economic operators, JTF 
financing must respect the State aid rules where relevant.  
11. Statistical data permitting an assessment of the trade effects  of the subsidy  
Because the Funds are designed to alleviate disparities between regions within the U nion, and 
because the aid is paid out on a horizontal basis, within eligible regions, it is considered that the 
trade effects are minimal.  
3.3  Guidelines for the development of the trans -European transport network (Regulation 
EU 1315/2013)  
This Regulation esta blishes guidelines for the development of a trans -European transport network 
comprising a dual -layer structure consisting of the comprehensive network and of the core network, 
the latter being established on the basis of the comprehensive network . It ident ifies 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 app lications 
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 t he trans -European transport network 
and provides for measures for the implementation of the trans -European transport network.  
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of transport) 
(Regulation EU  No 2021/1153)  
Connecting Europe Facil ity 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 guide lines and 
listed in the Annex of the CEF in the case of transport and energy.  G/SCM/N/401/EU  
- 12 - 
  1. Title of the subsidy programme  
Connecting Europe Facility EU Financing Programme (in the field of transport sector) (Regulation 
EU No 2021/1153 ). 
2. Period covered by the notification  
2021–2022.  
3. Policy objective and/or purpose of the subsidy  
The general objective of CEF 2021-2027 is to build, develop, modernise and complete the 
trans-European networks, taking into account the Union long -term decarbonisation commitments, 
and thus to contribute to smart, sustainable and inclusive growth and to enhance territorial, social 
and economic cohesion . It shall contribute to the development of projects of common interest 
relating to efficient, interconnected, and multimodal networks an d infrastructure for sustainable, 
smart, interoperable, inclusive, accessible, resilient, safe and secure mobility . It shall contribute to 
more sustainable modal composition of the transport system, in order to meet EU climate neutrality 
and zero pollution  ambitions by 2050.  
More in detail, between 2021 and 2022, the Commission selected more than 264 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  6.370  billion.  
4. Background and authority for the subsidy  
Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11  December  2013 
on Union guidelines for the development of the trans -European transport networ k and repealing 
Decision No 661/2010/EU.  
Regulation (EU) No 2021/1153  of the European Parliament and of the Council of 7 July 2021 
establishing the Connecting Europe Facility and repealing Regulations (EC)  No 1316/2013 and (EC) 
No 283/2014.  
5. Form of the sub sidy 
Grants, procurement and financial instruments.  
6. To whom and how the subsidy is provided  
Others.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Annual amounts in multi -annual wor k programmes (2021 -2023) - Commitment appropriations:  
2021–approximately EUR  242.2  million for 68 projects/actions  
2022-approximately EUR  6,128  million for 196 projects/actions  
8. Duration of the subsidy  
2021-2027.  
3.3.2   Shared Management Funds (in the field of tra nsport)  
3.3.2.1   The ERDF  
The ERDF aims to strengthen economic and social cohesion in the European Union by correcting 
imbalances between its regions.  G/SCM/N/401/EU  
- 13 - 
  The ERDF focuses its investments on several key priority areas, including transport under two 
priorities : under th e low carbon economy priority which cover sustainable multimodal mobility as 
part of the transition to a net zero carbon economy and under a more connected Europe priority 
which cover climate resilient, intelligent, secure, sustainable and intermodal TEN -T as well as 
national regional and local mobility.  
For further details and a more complete description on the ERDF, please see section 7.  
3.3.2.2   The CF  
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, notably in the environment.  
In the period 2014 -2020, the Cohesion Fund allocates a total of EUR  63.4 billion to activities in total, 
which include  projects related to trans -European transport network, notably priority projects of 
European interest as identified by the EU . The Cohesion Fund contribute to support infrastructure 
projects financed under the Connecting Europe Facility.  
In the period 2021 -2027, the Cohesion Fund allocates a total of EUR  23.6 billion to activities in total, 
which include projects related to sustainable transport.  
For further details and a more complete description on the CF, please see section 7.  
4  COMMON AGRICULTURAL POLICY (CAP)  
4.1  General Observations  
4.1.1   The CAP reform process  
Due to delay in agreeing the EU's legal framework for the CAP for the period 2021 -2027, a 
Transitional Regulation has been adopted to cover 2021 and 2022 . The Transitional Regulation 
mostly extends the 2013  CAP. The CAP-reform post 2020 is therefore not part of this notification.  
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 poli cy 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 cove r 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 produ ction and 
farmers can decide whether and what to 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 ar e 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 Coupled 
Support (VCS) - see 4.3. 2.4.1 for details and, for some Member States, the crop -specific payment 
for cotton – see 4.3. 2.4.2 for  details.  
Under the 2014-2020 CAP, market intervention measures opera te as a genuine safety net in case 
of crisis . As a result of these reforms the CAP has been further modernised and simplified . Moreover, 
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 G/SCM/N/401/EU  
- 14 - 
  schemes wit hin 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 January  2014, been replaced by Regulation (EU) No 1308/2013 of the European Parliament and 
the Council of 1 7 December  2013 establishing a common organisation of the markets in agricultural 
products.  
Further, financing of CAP expen diture is governed by Regulation (EU) No 1306/2013 of the European 
Parliament and the Council of 1 7 December  2013 on the financing, management and monitoring of 
the common agricultural policy.  
On 1 January  2018, some technical improvements to the CAP enter ed 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 posi tion of farmers in the value chain.  
On 1 7 April 2019, Directive (EU) 2019/633 on unfair trading practices in business -to-business 
relationships in the agri cultural and food supply chain  was adopted . The directive contains new rules 
that ban  for the first time certain unfair trading practices (UTPs) imposed unilaterally by 1  trading 
partner on another . The rules will improve  the position of businesses and farmers in the food supply 
chain.  
On 1 October  2019 the Commission adopted  new regulatory measures to improve market 
transparency in the agri -food supply chain . 
On 23 December  2020, Regulation EU 2020/2220 of the European Parliament and the Council was 
adopted which lai d down certain transitional provisions for support from the European Agricultural 
Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund ( EAGF) in 
the years 2021 and 2022 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and 
(EU) No 1307/2013 as regards resources and application in the years 2021 and 2022 and Regulation 
(EU) No 1308/2013 as regards resources and the distribution of such support in respect of the years 
2021 and 2022 . 
The legislative procedure regarding the EU 's legislative proposals on the CAP beyond 2020 has not 
been concluded in time to allow Member States and the Commission to prepare all elements 
necessary to apply the new legal framework and the CAP strategic plans as from 1 January  2021, 
as initially prop osed by the Commission . That delay has created uncertainty and risks for farmers in 
the Union and the entire Union agriculture sector . In order to alleviate that uncertainty and to 
maintain the vitality of rural areas and regions, as well as to contribute to environmental 
sustainability, the Transitional Regulation EU 2020/2220 of the European Parliament and the Council 
provided for the continued application of the rules of the current CAP framework covering the period 
2014 to 2020 ( 'current CAP framework ') and for uninterrupted payments to farmers and other 
beneficiaries, and thus provided predictability and stability during the transitional period in the years 
2021 and 2022 ( 'transitional period ') until the date of application of the new legal framework 
covering the period starting on 1 January  2023 ( 'new legal framework '). 
4.1.2   Financing the CA P 
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 20 21 and 202 2. 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. 1 Intervent ions in agricultural markets and 4.3. 2 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 the field of Rural Development in so far as the payments occurred in the candidate 
countries to the EU.  G/SCM/N/401/EU  
- 15 - 
  From 2014, a crisis reserve was introduced to ensure additional support for the agricult ural 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 expend itures 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 has 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 Agriculture And Rural Development , Million EUR 
 2021  2022  
European Agricultural Guarantee Fund (EAGF)  40,425.94  40,843.70  
Export subsidies  0.00 0.00 
Other intervention in markets  2,505.33  2,879.99  
Direct payments  37,920.61  37,963.71  
Of which non -trade distorting direct payments  33,553.53  33,900.27  
European Agricultural Fund for Rural Development 
(EAFRD)  14,643.64  15,233.82  
Rural Development 2014 -2020 14,643.64  15,233.82  
Rural development 2007 -2013 0.00 0.00 
Rural development completion of previous periods  0.00 0.00 
Pre-accession (Ipard)  180.25  193.55  
 
 
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 referred to in this notification is publi cly 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/index -fr.htm  (French).  
http://eur -lex.europa.eu/budget/www/index -es.htm  (Spanish)  
4.2  European Agricultural Guarantee Fund (EAGF ) 
1. Title of the subsidy programme  
Common Agricultural Policy - Direct payments and interventions in markets ("First Pillar")  
2. Period covered by the notification  
1 January  2021 - 31 December  2022. G/SCM/N/401/EU  
- 16 - 
  3. Policy objective and/or purpose of the subsidy  
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 author ity for the subsidy  
Treaty on the Functioning of the European Union, in particular Title III of Part III.  
5. Form of the subsidy  
The aid is normally in the form of grants or loans.  
6. To whom and how the subsidy  is provided  
Payments are made to economic actors i n the sector, for the large part, agricultural producers.  
7. Total amount of the subsidy  
European Agricultural Guarantee Fund - Financial Year (Million EUR) 
 2021  2022  
Intervention in markets  2,505.33  2,879.99  
Export subsidies  0.00 0.00 
Direct payments  37,920.61  37,963.71  
Total EAGF  40,425.94  40,843.70  
Of which non -trade distorting direct payments  33,553.53  33,900.27  
 
8. Duration of the subsidy  
The current multi -annual financial framework covers the period 2014 to 2020 . However, the 
Transitional Regulation EU 2020/2220 of the European Parliament and the Council prolongs the 
2014-2020 direct payments schemes by two years to cover the 2021 and 2022 calendar years, but 
taking into account the new reduced limits as agreed in the MFF.  
9. Statistical data permitting an assessment of the trade effects  of the subsidy  
In 202 2, 83% of the support provided had no, or at most, minimally trade distorting effects . 
Unchanged level compared to 2018.  
4.3  Measures Financed Through the EAGF ("First Pillar" of t he CAP)  
4.3.1   Export refunds  
Since 2021, the provision for export refunds in exceptional circumstances, whose ceiling had been 
set to zero since 2013, has been legally removed from Regulation (EU) 1308/2013 (please refer to 
Regulation (EU) 2021/2117, Article 1(5 6)). The EU no longer has legal base in the legislation to 
grant export subsidies.  Interventions in agricultural markets per sector . 
In order to stabilise markets and assure the agricultural population of an equitable standard of living, 
the Common Agricul tural Policy provides, in the Common Market Organisation Regulation, 
intervention and aid measures that vary according to the nature of the product and the special 
characteristics of the market . This section 4.3. 1 deals with spending for the Interventions in 
agricultural markets per sector . Section 4.3. 2 will address Direct Payments in a similar way . Most of 
the support schemes represented in the section 4 .3.1 of this notification have their legal basis in G/SCM/N/401/EU  
- 17 - 
  Regulation (EU) No 1308/2013 of the E uropean Parliament and of the Council of 1 7 December  2013 
establishing a common organisation of the markets in agricultural products , amended by Regulation 
(EU) 2020/2220 of the European Parliament and of the Council of 2 3 December  2020 laying down 
certain  transitional provisions for support from the European Agricultural Fund for Rural 
Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 
2021 and 2022 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and 
(EU) No 1307/2013 as regards resources and application in the years 2021 and 2022 and Regulation 
(EU) No 1308/2013 as regards resources and the distribution of such support in respect of the years 
2021 and 2022.  
Support To Agricultural Markets ( EAGF Budget - Payments) EUR Million  
Products  2021  2022  
Olive oil  57.6 47.7 
Fruits and vegetables  891.4  877.9  
Wine 1,029.75  950.6  
Promotion  63.5 57.6 
Hops 2.28 2.2 
Public and Private storage  34.3 10.2 
Other plant products (POSEI  and Smaller Aegean Islands)  221 221.3  
Dairy products    
Beef and veal    
Sheep and goat    
Pig meat   
Eggs and poultry    
Apiculture  46.6 51.2 
School Schemes  156.25  170.1  
Completion of previous programme  2.6 0.0 
Exceptional measures (C0VID -19 and others)  0.0 492.2  
Total expenditure  2,505.3  2,880.9  
 
As a response to the COVID -19 pandemic, intervention purchases were opened for butter (for the 
first time since 2009) and SMP (the first time since 2018) . There were no public intervention 
purchases for animal products in 2021 and 2022.  
In 2022, the EU opened Private Storage Aid for  pig meat (for 46,491 tonnes) . 
In the course of 2022, the EU made voluntary submissions to the WTO of ad hoc reports on COVID -19 
measures adopted by the EU and its Member States in order to provide transparent information to 
other WTO Members . The reports included a list of measures approved by the European Commission 
and Member States' measures under EU state aid rules, which the Commission approved under the 
Temporary Framework to support the economy in the context of the COVID -19 pandemic.  
While agricultural markets largely recovered from the disturbances caused by the COVID -19 
pandemic, the EU continued to monitor the impacts of the pandemic in the agricultural sectors . As 
most affected production sector, the exceptional measures to support the wine sector adopted 
in 2020 were extended to 2021 and most of them were also reconducted to 2022 . This has largely 
supported the recovery of the wine market during 2021 . 
The reserve for crises in the agricultural sector, established in Regulati on 1306/2013, was not used 
in 2020 or 2021 but was activated in 2022 for the first time since its introduction as part of the 
response to  Russia 's war in Ukraine.  G/SCM/N/401/EU  
- 18 - 
  As a response to market disturbances resulting from the war in Ukraine, the EU has taken seve ral 
measures to support the farmers following the price volatility, the increased prices of inputs, 
including fertilisers etc.:  
- €492 351 930 distributed in national allocations to directly support farmers most affected by 
higher input costs and the closure  of export markets . Summary of the Market support measures 
taken as a result if the COVID -19 pandemic:  
Date Delegated / Implementing 
Regulation (EU) No.  Description  
30 April 2020 Commission Delegated 
Regulation (EU) 2020/592, 
amended three times in 2020 
and 2021  Derogations from certain provisions of Regulation (EU) 
No 1308/2013 to address the market disturbance in the fruit 
and vegetables and wine sectors.  
30 April 2020 Commission Implementing 
Regulation (EU) 2020/593  Authorizing agreements and decisions on market 
stabilization measures in the potatoes sector (derogation 
from certain competition rules under Article  222 of 
Regulation (EU) No  1308/2013 for six  months).  
30 April 2020 Commission Implementing 
Regulation (EU) 2020/594  Authorizing agreements and decisions on market 
stabilization measures in the live trees and other plants, 
bulbs, roots and the like, cut flowers and ornamental foliage 
sector (derogation from certain competition rules under 
Article  222 of Regulation (EU) N o 1308/2013 for 
six months).  
30 April 2020 Commission Implementing 
Regulation (EU) 2020/599  Authorizing agreements and decisions on the planning of 
production in the milk and milk products sector (derogation 
from certain competition rules under Article  222 of 
Regulation (EU) No 1308/2013 for six  months).  
30 April 2020 Commission Implementing 
Regulation (EU) 2020/600  Derogations regarding implementation of support measures 
in the sectors of fruit and vegetables, wine, olive oil and 
table olives, apiculture, and for the school scheme.  
30 April 2020 Commission Implementing 
Regulation (EU) 2020/601  Derogations regarding the validity of vine planting 
authorizations and the grubbing up in case of anticipated 
replanting.  
4 May 2020 Commission Delegated 
Regulation 2020/884  Derogations regarding implementation of support measures 
in the fruit and vegetables sector and the wine sector.  
6 July 2020 Commission Implementing 
Regulation (EU) 2020/975  Authorizing agreements and decisions on market 
stabilization measures in the wine sector (derogation from 
certain competition six  months).  
Public interventions are currently available in a number of sectors that are prone to fluctuations in 
price. To combat this instability, the EU has adopted a mechanism to mitigate the impact on farmers 
of years with particularly low price levels . The sectors which can benefit from public intervention 
are: 
4.3.1.1   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 procedure 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 tendering 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 to the warehouse, bef ore 
unloading).  G/SCM/N/401/EU  
- 19 - 
  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.  
4.3.1.2   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 the 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 refe rence 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 ad justed 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.  
4.3.1.3   Sugar  
Private storage  
There is a pr ivate storage system as a safety net . Following Article 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 September  2017. 
4.3.1.4   Olive oil  
The European Commission pursues 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, p resentation 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 carried out by producer organisations 
and interbranch organisations in the areas of market knowledge, improvement of environmen tal 
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 econom ic 
development having a significant negative impact on the margins in the sector.  G/SCM/N/401/EU  
- 20 - 
  4.3.1.5   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 
the Commission, by 3 1 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 financial 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 for 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 ha s been 
transferred to Rural Development funds in application of Article 66(1) of Regulation (EU) 
No 1307/2013 and as from 1 January  2017, the annual budget for the Spanish restructuring 
programme has been transferred to Direct Payments . 
4.3.1.6   Fruit and vegetable s 
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 resulting 
from crises, promote consumption - so contributing to improv ed 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 objectives . 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 in areas where marketed production 
by producer organisations is less than 15 %. EU aid to producer organisations remains limited 
to 4.1% of the va lue of marketed produce, but this may rise to 4.6 % (4.7% in case of associations G/SCM/N/401/EU  
- 21 - 
  of producer organisations) provided that the amount in excess of 4.1 % is used only for crisis 
prevention and management measures.  
Crisis prevention and management  
Producer org anisations' operational programmes may include crisis prevention and management 
measures . Those can consist of investments making the management of the volumes placed on the 
market more efficient, training and exchanges of best practices, promotion and com munication, 
whether for prevention or during a crisis period, support for the administrative costs of setting up 
or for the refilling of mutual funds, replanting of orchards for health or phytosanitary reasons, market 
withdrawal, green harvesting/non -harve sting and harvest insurance.  
Exceptional measures  
The Commission adopted a series of regulations following the COVID -19 pandemic with the view to 
providing in the year 2020  and onwards  flexibility to producer organisations and their associations 
on control s and management of operational programmes, including their operational funds . In 
addition, the Commission adopted a regulation providing emergency measures relating to the use 
of mutual funds for resolving the specific problem of producer organisations lo cated in regions 
affected by the Asian brown marmorated stink bug ( Halyomorpha halys ). 
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.  
4.3.1.7   School scheme s 
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 which EUR 150 million  for fruit/vegetables 
and EUR 100 million  for milk and the possibility for the Member States to transfer part of resources 
between the two parts of the scheme .1 This budget cove rs 1) the supply/distribution of fruit, 
vegetables, milk and certain 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, moni toring and evaluation . Member States may grant national aid, in addition to EU aid.  
School year  EU budget for school fruit/vegetables 
(payments in EUR  million, EU 27)2 EU budget for school milk (payments 
in EUR  million,  EU 27)  
2020/2021  145.8  99.3 
2021/2022  125.7  95.1 
 
1 Total EU budget for the EU 28: the United Kingdom was a member of the European Union in school 
years 2017/2018 and 2018/2019 and continued to participate in the scheme in school year 2019/2020, 
according to the Withdrawal Agreement. The budget in subsequent school years does not include the 
United  Kingdom.  
2 Source: Commis sion Implementing Decision (EU) 2021/462 fixing  the definitive allocation of Union aid 
to Member States for school fruit and vegetables and for school milk for the period from 1  August 2021 to 
31 July 2022 and amending Implementing Decision (EU) 2020/467 . G/SCM/N/401/EU  
- 22 - 
  4.3.1.8   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 to 
achieve the two main reform objectives . Member States are responsible for the support programmes 
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 within  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 restruct uring 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 following programming period (2014 -2018), innovation was introduced as a 
new me asure . Now the current programming period (2019 -2023) is underway 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:  
• Promoti on 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 protected designation of origin or ge ographical 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 meas ures, 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 p otential . 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 introduction of 
advanced systems of sustainable  production.  
The normal renewal of vineyards which have come to the end of their natural life is not 
supported.  G/SCM/N/401/EU  
- 23 - 
  Support for restructuring and conversion of vineyards may only take the following forms:  
o Compensation of producers for the loss of revenue due t o 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 
actual costs of restructuring and conver sion 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 supply and demand in the m arket 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 insurance contributes to safeguar ding 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 
must 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 concerned 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 competition 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 enterprise and its adaptation to market demands, as well as to increase 
its competitiveness and shall concern the production or marketing of wine.  
Support at its maximum rate is limited to micro, small and medium -sized enterprises.  G/SCM/N/401/EU  
- 24 - 
  • 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 increase the marketa bility 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 distilled which 
exceeds 10 % in relation to the volume of alcohol contain ed 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.  
Exceptional measures  
Following the COVID -19 pandemic, the European Commission has adopted a package3 of 
regulations and some transitional temporary provisions in order to provide in 2020 but also in 
2021 and 2022 ample flexibility to wine producers in the ma nagement and implementation of 
support programmes including provisions relating to administrative and on -the-spot controls 
but also relative to an operational update of funds in all measures .4 It also introduced 2 
temporary crisis measures : crisis distill ation and crisis storage.  
This has largely supported the recovery of the wine market during 2021.  
4.3.1.9   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 2 2 October  2014 on information provision and promotion 
measures concerning agricultural products implemented in the in ternal 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 term s 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 indicat ions (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 202 1 and 2022 (per year ) together with higher EU co-financing rates 
 
3 Commission Delegated Regulation (EU) No 2020/ 592 of 30 April 2020.  
  Commission Implementing Regulation (EU) No 2020/600 of 30 April 2020.  
  Commission Implementing Regulation (EU) No 2020/601 of 30 April 2020.  
  Commission Delegated Regulation (EU) No 2020/884 of 4 May 2020.  
  Commission Delegated R egulation (EU) No 2020/975 of 6 July 2020.  
  Commission Delegated Regulation (EU) No 2020/1275 of 6 July 2020.  
  Regulation (EU) No 2020/2220 of the European Parliament and of the Council of 23 December 2020.  
4 Article 43 of Regulation (EU) No 1308/2013 of  the European Parliament and of the Council of 
17 December 2013.  G/SCM/N/401/EU  
- 25 - 
  in comparison to the previous regime .5 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 progra mmes 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 these Member 
States . A key element of the new promotion po licy 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 allocated 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.  
In 2021, DG AGRI continued to pursue its proactive engagement to protect Europe 's food heritage 
and promote its high quality agri -food products and standards  in non -EU countries, including through 
its bilateral agreements . The DG endeavoured to implement its promotion policy for EU agri -food 
products around the world . Despite the adverse impact of the COVID -19 pandemic on the 
implementation of several promotio n programmes, two calls for proposals were published in 
January  2021 in line with the annual work programme objectives and topics . Furthermore, several 
measures at the Commission 's own initiative were implemented, such as promotion campaigns, 
online promot ion seminars or the production of market entry handbooks.  
A comprehensive review of the EU agri -food promotion policy objectives and its regulatory 
framework was launched in 2021 with a view to enhancing its contribution to sustainable production 
and consumption, and in line with the evolving diets, in accordance with the EU's Farm to Fork 
Strategy a nd with the CAP 2023-2027. This includes support for promotion campaigns to increase 
consumption of fresh fruits and vegetables in the context of healthy, balanced diets, promotion of 
the sustainable attributes of EU agri -food products and the promotion of  EU organic products . An 
impact assessment was completed in March  2022 as the basis for a future legislative proposal . The 
impact assessment analysed social, economic and environmental impacts of the different policy 
options to enhance the contribution of the promotion policy to sustainable production and 
consumption, and in line with the evolving diets . In addition, the impact assessment examined 
different implementation options beyond the current model of direct management and shared 
management.  
4.3.1.10   Other pla nt product s 
Hops 
From 1 January  2011, the hops producer organisations in Germany receive annually 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.  
4.3.1.11   POSEI and Aegean Islands  - excluding direct aid s 
The legal bas es for this expenditure are Regulations (EU) 228/2013 and 229 /2013  of the European 
Parliament and the Council of 1 3 March  2013 laying down  specific measures for agriculture in the 
outermost regions of the Union and the Aegean islands and repealing Council Regulation (EC) 
No 247/2006 . Objective factors arising as a result of insularity and remoteness of certain regions of 
the EU impose constr aints on economic operators and producers in these outermost regions and 
islands that severely handicap their activities . Therefore, appropriate specific supply measures to 
guarantee supply and to compensate for the additional costs arising from their remo teness, 
insularity, and distant location are applied.  
 
5 European Commission – Agriculture and Rural Development, "Promotion of EU farm products". 
https://agriculture.ec.europa.eu/common -agricultural -policy/market -measures/promotion -eu-farm-
products_en . 68The EU contribution co -finances between 70 % and 80 % of such programmes (up to 90 % in 
certai n circumstances). Since 2020, the duration of support to such promotion measures in the wine sector are 
no longer limited to five years.  G/SCM/N/401/EU  
- 26 - 
  4.3.1.12   Milk and dairy produc t 
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 w ater 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 threshol ds 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, the public intervention price is 90 % 
of the reference threshold for butter and 100 % for skimmed milk powder.  
For butter and skimmed mi lk powder, public intervention is open from 1 March  to 30 September . 
Where quantities offered for public intervention during 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 specifications to be determined by the Commission.  
As a response to the COVID -19 pandemic, intervention purchases were opened for butter (for the 
first time since 2009) and SMP (the first time since 2018).  
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 and exclus ively 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  
o geographical indication and with a certain maturing period.  
No such aid was granted in 2021 and 2022.  
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 
related to animal diseases and loss of consumer  confidence due to public, animal or plant health 
risks. 
No such measure was adopted in 2021 and 2022.  
Production limitation  
The milk quota system ended with effect from 3 1 March  2015. 
4.3.1.13   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 scale for the classification of 
carcasses of bovine animals aged eight months or more . The Comm ission 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 State 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 accepted 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 G/SCM/N/401/EU  
- 27 - 
  Member State or region of a Member State on the basis of reco rded 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.  
No such aid was granted in 2021 and 2022.  
Exceptional market support measures  
The Commission may adopt exceptional measures against market disturbance cau sed 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.  
No such measure was adopted in 2021 and 2022.  
4.3.1.14   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 costs.  
No such aid wa s granted in 2021 and 2022.  
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 diseases and loss of consumer confidence due to public, animal or plant health 
risks.  
No such measure was adopted in 2021 and 2022.  
4.3.1.15   Pig meat  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult mar ket situation and/or 
taking into account the average recorded EU market prices and the production costs.  
In the light of the market disturbances emerged as a consequence of the COVID -19 pandemic and 
the war in Ukraine, the EU opened Private Storage Aid for  pig meat (for 46,491 tonnes) in 2022.  
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 marke t support 
measures related to animal diseases and loss of consumer confidence due to public, animal or plant 
health risks.  
No such measure was adopted in 2021 and 2022.  G/SCM/N/401/EU  
- 28 - 
  4.3.1.16   Eggs and poultry meat  
Exceptional market support measures  
The Commission may adopt exce ptional 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 heal th 
risks.  
No such measure was adopted in 2021 and 2022.  
4.3.1.17   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 programme for a period of three years ("Bee -keeping 
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.  
Support to the apiculture sector, co -funding national apiculture programmes at 50 %, continued to 
the tune of EUR 40 million  in 2020, and of EUR 60 million  from 2021.  
Regulation 2019/974 initially allocates EUR  40 million of EU support to apicul ture for each of the 
years 2021 and 2022.6 
The increase from EUR 40 million  to EUR 60 million  from year 2021 is in accordance with the 
Multiannual Financial Framework, as laid down in Council Regulation (EU, Euratom) 2020/2093 of 
17 December  2020 laying d own the multiannual financial framework for the years 2021 to 2027.  
 
6 Please see the legal basis : Regulation (EU) 2020/2220 of the European Parliament and of the Council 
of 23 December 2020 laying down certain transitional provisions for support from the European Agricultural 
Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years  
2021 and 2022 and amending Regulations (EU) No 130 5/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as 
regards resources and application in the years 2021 and 2022 and Regulation (EU) No 1308/2013 as regards 
resources and the distribution of such support in respect of the years 2021 and 2022 OJ L 437, 28.12 .2020, 
p. 1. G/SCM/N/401/EU  
- 29 - 
  The total amount provided for in the multi -annual financial framework in respect of the European 
Agricultural Guarantee fund includes an increase to EUR 60 million  per year for apiculture 
programmes.  
4.3.2   Direct Payments  
Until 2020 as well as during the transition period (i.e.  2021 and 2022), Regulation  1307/2013 
continued to establish the rules for direct payments to farmers . The national ceilings for the transition 
period are spelled out in Regulation (EU)  2020/2220 . Regulation 1307/2013 was repealed with the 
application of the new CAP from the beginning of 2023.  
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   
 2021  2022  
Million EUR    Decoupled  Coupled  
SAPS (Single Area Payment Scheme)  4,406.0   4,392.0   
Redistributive Payment  1,610.0   1,615.0   
BPS (Basic Payment Scheme)  14,172.0   14,260.0   
Payment for agricultural practices 
beneficial for the climate and the 
environment  10.778.0   10,776.0   
Payment for farmers in areas with natural 
constraints  5.0  5.0  
Payment for young farmers  574.  530.0   
Cotton   242.0   242.0  
POSEI and Aegean islands   431  437.4  
Voluntary Coupled Support   4,018.00   4,011.0  
Small Farmers Scheme1 707.061   681  
Total direct payments  37,920.61  37,900.27  
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.  
 
 
4.3.2.1   Structure of direct payments and general conditions  
Direct payments are available to active farmers as defined in Articles 4(1)(a) and 9 of Regulation 
(EU) No 1307/20 13. 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 state suitable for grazing 
or cultivation . Coupled payment support is granted on the basis of e ligible 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 n ational 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  4.3.2.2) complemented by a series of other decoupled support 
schemes targeting specific objectives or types of farmers:  G/SCM/N/401/EU  
- 30 - 
  • a 'green' direct payment for agricultural practice s beneficial for the climate and the 
environment (see further section  4.3.2.3.2). 
• a payment to young farmers (YFP)7 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.  
• (where applied) a redistributive payment8 to provide additional  support to small and 
middle -size farms : Member states may allocate up to 30 % of their total direct payment 
national allocations to a redistributive payment for the first eligible hectares . The number 
of hectares for which this payment can be granted is limited to a thresho ld 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) .9 The SFS is 
a simplified direct payment scheme replacing all other direct payments to farmers who 
choose 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 exempted 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 decide  to apply Voluntary Coupled Support (VCS) . VCS is a production -limiting scheme that 
shall take the form of an annua l 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 the "basic payme nt" is 
not a pre -requisite to qualify for the VCS.  
A small number of Member States implement the crop -specific payment for cotton, which is also a 
production -limiting scheme, based on fixed areas, fixed yields and reference amounts by Member 
State (see fur ther details under 4.3.3.3.2).  
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 i n 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 allocations.  
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 period and subject to the approval by the Commission, 
 
7 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).  
8 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).  
9 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/401/EU  
- 31 - 
  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 
Regulati on (EU) No 1307/2013 (DP regulation) and shown 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. 
The Transitional Regulation prolongs the 2014 -2020 direct payments schemes by two years to cover 
the 2021 and 2022 calendar years, but taking into acc ount the new reduced limits as agreed in the 
Multiannual Financial Framework . 
(EUR million)  
 2015  2016  2017  2018  2019  2020  2021  2022  
Austria  693.1  692.4  691.8  691.7  691.7  691.7  677.6  677.6  
Belgium  523.7  509.8  502.1  489.0  481.9  505.3  494.9  472.0  
Bulgaria  720.9  788.8  789.6  791.0  792.5  867.1  789.3  799.0  
Croatia  183.7 202.9  241.1  279.4  317.6  348.3  365.0  403.2  
Cyprus  50.8 50.2 49.7 49.1 48.6 48.6 47.6 47.6 
Czech Republic  840.1  839.3  838.5  856.7  856.7  871.8  847.1  847.1  
Denmark  870.2  852.2  834.3  826.3  818.3  818.1  801.3  782.3  
Estonia  114.4  114.5  123.7  133.9  143.9  169.4  190.7  193.6  
Finland  523.3  523.4  523.5  524.1  524.6  524.6  515.7  517.5  
France  7,302.1  7,270.7  7,239.0  6,900.8  6,877.2  6,877.2  6,736.4  6,726.4  
Germany  7,912.8  4,880.5  4,848.1  4,820.3  4,792.6  4,717.3  4,620.8 4,522.4  
Greece  2,109.8  2,087.0  2,064.1  2,043.3 2,022.4  2,022.5  1,981.1  1,980.2  
Hungary  1,276.7  1,275.5  1,274. 1 1,274.0  1,273.9  1,301.4  1,275.5  1,275.5  
Ireland  1,214.8  1,213.3  1,211.8  1,211.4  1,211. 0 1,211.1  1,186.3  1,186.3  
Italy 3,897.1  3,847.8 3,797.2  3,750.0  3,702.4  3,698.3  3,622.5  3,623.1  
Latvia  181.0  205.7  230.3  255.0  279.8  302.5  313.8  318.9  
Lithuania  417.9  442.5 467.1  475.3  483.3  517.0  570.0  578.5  
Luxembourg  33.6 33.5 33.5 33.5 33.4 35.3 33.4 33.4 
Malta  5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2 
Netherlands  749.2  736.8  724.3  682.5  670.8  660.8  661.3  609.7  G/SCM/N/401/EU  
- 32 - 
   2015  2016  2017  2018  2019  2020  2021  2022  
Poland  3,359.2  3,375.7  3,392.0  3,411.2  3,430.2  3,375.7  3,345.3  3,376.7  
Portugal  565.9  574.0  582.1  590.8  599.4  684.5  681.0  685.6  
Romania  1,600.0  1,772.5  1,801.3  1,872.8  1,903.2  1,903.2  1,891.8  1,919.4  
Slova k Republic  435.5  438.6  441.8  445.2  448.7  392.6  415.3  394.5  
Slovenia  138.0  137.0  136.0  135.1  134.3  134.3  131.5  131.5  
Spain  4,902.3  4,911.3  4,926.3  4,939.7  4,953.1  4,953.8  4,859.1  4,856.0 
Sweden  696.8  697.2  697.6  698.7  699.7  699.8  685.7  685.9  
United Kingdom  3,170.7  3,177.3  3,183.6  3,192.2  3,201.4  n.a. n.a. n.a. 
Total  41,489  41,650  41,378  41,378  41,398  38,337  37,745  37,649  
4.3.2.2   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 farmers 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 schemes . 
This regime facilitates and reduces the administrative burden with only flat -rate payments per 
eligible ha of agricultural land . The SA PS 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 (TNA) for certain sectors.  
More detailed information on the SAPS and TNA can be found in this s ite: 
https://ec.europa.eu/agriculture/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 direct payments any allocations for other direct payment schemes decided by 
each relevant Member State, including the compulsory 30 % component of the greening payment.  
In 2021 and 2022, Member States apply either the basic payment scheme (BPS, 
17 Members,  5  choosing the opti on of regionalising the scheme10) or the Single Area Payment 
Scheme (SAPS, 10  Members) . For beneficiaries, eligibility for these schemes remained a precondition 
for additional payments under all direct payment schemes . It continues to remain the most important 
 
10 European Commission (2021), Direct Payments 2015 -2021 –Decisions take n by Member States: State 
of Play as from June  2021. https://agriculture.ec.europa.eu/system/files/2021 -07/simplementation -decisions -
ms-2021_en_0 .pdf. Until its withdrawal from the European Union in 2020, the United Kingdom also had  
regionalised its scheme.  G/SCM/N/401/EU  
- 33 - 
  of the direct payment schemes, accounting for between 39 % and 69 % of total direct payments (with 
the exception of Malta).  
Among the Member States applying the SAPS, nine Member States implemented EUR 260 million of 
TNA in claim year 2020, complementing direct payments with payments from national sources (85 % 
of the total as decoupled direct payments) . The provisions for the transition period in 2021 and 2022 
continue to limit the maximum amounts payable as TNA to 50 % of the amounts payable in 2013 
(initial amounts).  
4.3.2.3   Greening and Cross Compliance  
4.3.2.3.1   Cross Compliance  
The CAP reform of 2013 implemented by Regulation (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 res pecting 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 thes e 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.  
4.3.2.3.2   Green D irect Payment  
The objective of the Green D irect P ayment 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 climate . These 
practices include diversifying crops, maintaining permanent grassland and dedicating 5 % of arable 
land t o 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 reduction s 
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.  
During this transition period, certain previously existing exemptions to these practices continued to 
apply for participants in the small farmer scheme and farmers with a large proporti on of permanent 
grassland, while farmers meeting requirements for organic production are entitled ipso facto  to this 
payment . The seven member States and regions opting for the use of equivalent practices used a 
mix of approaches (based on measures and cer tification schemes) and applied them variedly to the 
three practices .11 
As a response to the war in Ukraine and with the objective of ensuring food security, the Commission 
introduced, for the year  2022, certain flexibilities regarding the treatment of fal low land, even where 
it had been grazed or harvested for production purpose or had been cultivated .12 
 
11 European Commission (2021), Direct Payments 2015 -2021 –Decisions taken by Member States: State 
of Play as from June  2021 
12 Commission Implementing Decision (EU) 2022/484  G/SCM/N/401/EU  
- 34 - 
  4.3.2.4   Coupled Support  
4.3.2.4.1   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 goat  meat, beef and veal, 
olive oil, silkworms, dried fodder, hops, sugar beet, cane an d 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 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 de termined by Member States for each measure 
and notified to the Commission . In 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 ce iling 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 t his 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 financ ial ceilings at Member State level, as well as support 
measure level.  
All Member States, except Germany, apply the VCS scheme, a production -limiting scheme applying 
annual payments based on fixed areas and yields or on a fixed number of animals . On average, 
Member States allocate around 11 % of their national ceiling to this scheme . As in 2021, 11 Member 
States made use of the option to apply an additional top -up of up to 2 % for protein crops to increase 
their VCS ceiling of 13 % (+2%) in 2022.  
The annual budget remained around EUR 4.2 billion  per year allocated via 260 measures, and the 
most supported sectors in 2021 were the three animal -related sectors, with more than 70 % of 
support provided under this scheme going to beef and veal (38.8 %), dair y products (21.4 %), and 
sheep and goat meat (12.8 %), followe d by protei n crops , fruit and vegetables, and sugar beet . 
Among the 21  sectors covered by VCS, no support was allocated by any member State to short 
rotation coppice, cane and chicory, and dried fodder . 
 Supported hectares/heads  Total amount paid (in M EUR)*  
Application  year 2021  2022  2021  2022  
Beef and veal  18.907.971  18.976.384  1.626,2 1.627,03  
Cereals  2.067.717  2.067.717  110,8  110,8  
Flax 4.966  3.936  0,5 0,6 
Fruit and vegetables  720.994  720.994  184,2  189,2  
Grain legumes  12.260  12.260  1,4 1,4 
Hemp  13.140  13.140  1,7 1,7 
Hops 8.869  8.869  4,4 4,4 
Milk and milk products  11.489.241  11.489.241  11,5 896.5  
Nuts 446.799  446.799  17,6 17,6 
Oilseeds  76.847  76.847  1,0 1,0 
Olive oil  886.704 0 886.704  65,4 65,4 
Protein crops  4.160.055  4.160.055  472,4  473 
Rice 469.758  469.758  68,6 68,6 
Seeds  28.414  28.414  5,4 5,4 
Sheep  meat and goat  meat 41.189.468  41.189.468  535,7  536,03  G/SCM/N/401/EU  
- 35 - 
   Supported hectares/heads  Total amount paid (in M EUR)*  
Application  year 2021  2022  2021  2022  
Silkworms  9.150  N/A 1 1 
Starch potato  58.145  58.145  17,5 17,5 
Sugar beet  507.669  507.669  180,6  181 
* Total EU decided by Member States (i.e. actual payments to farmers may be lower due to reduction 
and sanctions applied)  
4.3.2.4.2   Cotton  
In addition to the VCS scheme, the European Union continued to provide payments for cotton in 
Bulgaria, Greece, and Spain . Payments are limited to a maximum base area and are calculated using 
a fixed yield and reference amounts (lower in 2021 and 2022, compared to 2020).13 
This 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 normal 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 Pro tocol.  
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 giv en year exceeds the base area, aid is reduced 
proportionally to the overshot.  
4.3.3   POSEI and Aegean islands  
The legal basis for this expenditure are Regulations (EU) No 228/2013 and 229/2013 . 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 
activities . Therefore, specific measures on agriculture are applied to remedy the difficulties caused 
by these handica ps referred to in Article 349 of the Treaty.  
4.4  The European Agricultural Fund for Rural Development ("Second Pillar" of the CAP)  
1. Title of the subsidy programme  
Common Agricultural Policy : Rural Development ("Second Pillar").  
2. Period covered by the notification  
1 January  2021 - 31 December  2022. 
3. Policy objective and/or purpose of the subsidy  
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 T itle III of Part III . Rural development 
policy should also take into account the general objectives for economic and social cohesion policy 
set out in the Treaty and contribute to their achievement, while integrating other major policy 
priorities as spelle d out in the conclusions of the Lisbon and Göteborg European Councils for 
competitiveness and sustainable development.  
 
13 The reference amounts declined, in EUR/ha, for Bulgaria from 649.15 to 636.13, for Greece 
from 234.18 to 229.37, for Portugal from 228.00 to 223.32, and for Spain from 362.15 to 354.73. See 
Regulation  1307/2013, Article  58. G/SCM/N/401/EU  
- 36 - 
  4. Background and authority for the subsidy  
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 authoritie s responsible for the managing, implementation and control of the 
programmes.  
Regulation (EU) No 1305/2013 was limited in time to 2020 . The Transitional Regulation therefore 
extends the measures provided for by that Regulation until the date on which the n ew CAP should 
apply, i.e. 1 January  2023. The extension respects the new financial ceilings as set out in the 
Multiannual Financial Framework  for 2021 to 2027.  
No changes were made to the types of measures that may be financed during 2021 and 2022 as 
provided for by Regulation (EU) No 1305/2013 . However, some minor changes were made to the 
eligible amounts for investments in physical assets that can be financed by EURI, i.e. by an additional 
maximum 35 %, provided that such support does not exceed 75 % and fo r young farmers the aid 
may be increased by an additional maximum €30,000.  
5. Form of the subsidy  - Grants from EU budget  
Rural development programmes are co -financed by Member States and the EU budget . Support 
might take the form of grants as well as financi al instruments.  
6. To whom and how the subsidy  is provided  
The aid is co -financed with the Member States and implemented through multi -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 amount of the subsidy  
The table below shows the amounts involved (payment appropriations in EUR  million s for each 
financial instrument).  
Expenditure (Payments) for Rural Development (Million EUR) 
8. Duration of the subsidy  
2014-2022. 
9. Statistical data permitting an assessment of the trade effects  of the subsidy  
No, or at most minimal, trade distorting effects.  Financial instrument  2021  2022  
European Agricultural Fund for Rural Development 
(EAFRD)  14,643.64  15,233.82  
Rural Development 2014 -2020 14,643.64  15,233.82  
Rural development 2007 -2013 0.00 0.00 
Rural development completion of previous periods  0.00 0.00 
Pre-accession (Ipard)  180.25  193.55  G/SCM/N/401/EU  
- 37 - 
  4.5  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 make -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 Environ mental Action Programme 2020 and the 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 potentia l. 
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 addressed 
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 sust ainability has become a European and international 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 th e 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 de velopment 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 repealing 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 inno vation 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 m anagement in agriculture;  
4. Restoring, 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 s ectors;  
6. Promoting social inclusion, poverty reduction and economic development in rural areas.  
While Regulation (EU) 1305/2013 was replaced by the new Regulation (EU) 2021/2115 from 
January  2023, it continued to apply in the transition period largely unchanged (as during 
the 2014-20 period), with some additional elements to ensure a smooth transition to the revised 
CAP. Regarding the implementation of existing RDPs, Regulation (EU)1305/2013 will also  continue 
to apply until the end of 2025.  
RDPs continued to be implemented at the Member State level based on national RDPs that need to 
incorporate at least four of the six European Focus Areas and be based on measures defined in 
Annex VI of the Regulatio n. While rural development aims to support sustainable rural development 
throughout the European Union, interventions also directly affect the agricultural sector . G/SCM/N/401/EU  
- 38 - 
  Programmes are approved by the Commission . In total, there were 114 approved RDPs at the end  
of 2021, with 20 national programmes and 7 Member States with 2 or more regional programmes.  
4.5.2   Rural development measures  
• Knowledge transfer and information actions . 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 
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 far m relief services . This measure 
supports 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 cover 
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 1,500 per advice . 
Support under this measure can also be provided to cover costs arising for the setting up 
of farm and forest advisory services, farm management services and farm relief services . 
Support shall be degressive over a maximum period of five years from setting u p. 
Furthermore, the measure supports 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 tho se 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 duration 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 pr oducts 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 costs.  
• Investments in physical assets  is a support scheme to be car ried 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 the development of infra structure 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 has been used by all Mem ber 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 mult iple 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, 
investments 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.  G/SCM/N/401/EU  
- 39 - 
  • Business start -up support for young farmers . Support is granted to person s 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 activ ities. 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 ac tivity in rural area . The support shall be 
granted up to the maximum amount laid down in the Annex II of Regulation 
(EU) No 1305/2013 per person who submits a business plan for the development of their 
farming activities.  
• Business start -up for the developm ent 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 and 
management plans rel ating 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 
natural 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 achievement of some of the mos t 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, preserv ing 
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 damaged forests . Moreover, th e 
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 pur poses 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 availability . The 
support can be granted as a flat -rate aid in annual instalments for the first five years 
following t he date on which the producer group or organisation was recognised . It shall 
be degressive and calculated on the basis of the group's or organisation'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 av ailable in a given part of that territory will depend on the 
particular environmental /climate needs identified by Member States/regions in the SWOT 
analysis . Agri-environment -climate payments aim to preserve and promote the necessary 
changes to agricultura l practices that make a positive contribution to the environment G/SCM/N/401/EU  
- 40 - 
  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 the ir 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 Regul ation (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 rule for 
a period of five to seven years . If justified by achieving or maintaining environmental 
benef its, a longer period can be determined . After termination of the initial period 
commitments, their annual extension is possible . The payments are granted annually and 
cover all or part of the additional costs and income foregone resulting from the 
commitme nts made . Where necessary, they may cover also transaction costs . 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 farmi ng 
practices with a view to encourage farmers 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 m easure 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 Di rectives 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 sites 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 per 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 related 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 which 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 G/SCM/N/401/EU  
- 41 - 
  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 unit.  
• 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 Partnership 
Agricultural Productivity and Sustainability, experimental work to develop new products, 
processes and technologies in the agri -food and forest sectors, co -operation amon g small 
operators in organising joint work processes and sharing facilities and resources, 
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 mitigat ing 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 activities 
concerning health care, social integration, community -supported agriculture and 
education about the environment and food . The Co -operation Measure should be used t o 
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-opera tion" 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 support rate of a 
differen t 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 measure 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 production 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 compensate affiliated farm ers 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 the 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 costs 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 ta ken 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 DS) 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 management of the implementation of the community -led local development 
strategy and the community -led local development . 
• a new M easure "M21" was introduced in Regulation (EU) 2020/872 as a response to 
the impact of the COVID -19 pandemic.  G/SCM/N/401/EU  
- 42 - 
  This regulation lays down exceptional temporary support to farmers and SMEs particularly 
affected by the COVID -19 crisis . Support shall be granted to farmers, as well as to SMEs 
active in processing, marketing or development of agricultural products covered by 
Annex  I to the Treaty on the Functioning of the European Union or cotton, except fis hery 
products.  
The Regulation (EU) 2020/872 allowed for the provision of exceptional temporary EAFRD 
support to farmers and SMEs particularly affected by the COVID -19 crisis in 2020, not 
exceeding EUR 7,000 per farmer and EUR 50,000 per SME . Total exceptio nal temporary 
support a s limite d to 2% of the total EAFRD contributio n to RDPs and amounte d to 
EUR 616 million  in FY 2021 (support for 2020) and EUR 12 million  in FY2022 (for 2021).  
In 2022, Regulation (EU) 2022/1033 also allowed for the provision of exceptional 
temporary support to farmers and SMEs engaged in processing, marketing, or developing 
agricultural products, and affected by the impact of the war in Ukraine . Such support 
would be paid out in a lump sum, durin g 2023, of not exceedin g EUR 15,00 0 per farme r 
and EUR 100,00 0 per SME for activities contributin g to food securit y or addressin g marke t 
imbalances , and would have to support beneficiaries to pursuing goals related to (i)a 
circular economy, (ii)nutrient management, (iii)the efficien t use of resources , or 
(iv)environmenta l and climate -friendl y productio n methods . This support complements 
similar exceptional measures against market disturbances . Total exceptional temporary 
support cannot exceed 5 % of total EAFRD  contributions to RDPs for 2021 -22. 
• Next Generation Europe  – "EURI Regulation " (paragraphs 12 and 13 of Article 7 of 
Regulation EU 2020/2220) : an extra amount of €8.1  billion. P ursuant to Article 3(3) of 
Regulation (EU) 2020/2094 of 1 4 December  2020 establ ishing a European Union 
Recovery Instrument (EURI), these resources are made available as of the date of entry 
into force of the Own Resources Decision . The resources for rural development from the 
"EURI Regulation " are available only for the 2021 and 2022  programming years 
(additional resources to co -fund rural development measures) . Given the unprecedented 
challenges faced by EU agriculture and rural areas due to the COVID -19 pandemic, the 
additional resources support targeted measures paving the way for a more resilient, 
sustainable and digital economic recovery in line with the objectives of the Union 's 
environmental and climate commitments.  
4.6  IPARD II  
1. Title of the subsidy programme  
IPARD II, the Rural Development programme under the Instrument for Pre -Accession assistance.  
2. Period covered by the notification  
1 January  2021-31 December  2022. 
3. Policy objective and/or purpose of the subsidy  
The objective of IPARD  is to provide assistance for the progressive alignment of agricultural sector 
in pre -accession countries with Union standards, while pursuing balanced territorial development of 
rural areas and increasing food -safety of those countries as well as their ab ility to cope with 
competitive pressure . The investment support is to be channelled through management and control 
systems which are compliant with good governance standards of a modern public administration.  
4. Background and authority for the subsidy  
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)  and Regulation (EU) 
2021/1529 of 1 5 September  2021 and in particular Article 19.  G/SCM/N/401/EU  
- 43 - 
  5. Form of the subsidy  - Grants from EU budget  
IPARD multi -annual programmes co -financed by the EU budget and the IPARD beneficiary countries.  
6. To whom and how the subsidy  is provided  
The aid is co -financed by the European Commission together with the IPARD beneficiary co untries 
and implemented through multi -annual programmes approved by the Commission . By means of 
indirect management, the budget implementation tasks for each measure of every programme 
covering selection, approval, controls and financial execution of the i ndividual 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 
Expenditure for Pre -Accession (Million EUR) 
Financial instrument  2020 2021 2022 
IPARD  77.0 180.3  164.2  
8. Duration of the subsidy  
2014-2020 for IPARD II.  
9. Statistical data permitting an assessment of the trade effects  of the subsidy  
No, or at most minimal, trade distorting effects.  
4.7  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 
pre-accession countries in their preparation for the implementation and management of the Common 
Agricultural Policy . In particular, it shall contribute  to the sustainability 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 
Türkiye , Croatia and North Macedonia.  
In 2014, with a change in policy approach, all pre -accession countries became eligible, subject to 
the presence of appropriate management  and control capacities . In 2015, IPARD II programmes 
have been adopted for Albania, North Macedonia, Montenegro, Serbia and T ürkiye . Entrustment for 
budget implementation tasks under IPARD II has been granted in 201 7 to Montenegro,  North 
Macedonia  and Tür kiye, in 2018 to Albania and Serbia, in 2019 to T ürkiye , in 2020 to Serbia , and in 
2021 to Albania and Montenegro . 
  G/SCM/N/401/EU  
- 44 - 
  5  EUROPEAN MARITIME, FISHERIES AND AQUACULTURE FUND (EMFAF)  
5.1  EU Funds  
1. Title of the subsidy programme  
The European Maritime, Fisheries and Aqua culture Fund14 (EMFAF)  
2. Period covered by the notification  
From 2021 to 2027.  
3. Policy objectives and/or purpose  of the subsidy  
The EMFAF  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 Poli cy (CFP).  
As a global ocean actor and a major producer of seafood, the EU has a responsibility to protect and 
sustainably use the oceans and their resources . It is also in the EU 's socioeconomic interest to 
guarantee the availability of food supplies, the competitiveness of the maritime economy and the 
livelihood of coastal communities . The EMFAF helps achieve sustainable fisheries and conserve 
marine biological resources.  
This leads to:  
• healthy, safe and sustainably managed seas and oceans  
• food security th rough the supply of seafood products  
• growth of a sustainable blue economy.  
It also helps achieve the UN 's Sustainable Development Goal 14 ( 'conserve and sustainably use the 
oceans, seas and marine resources '), to which the EU is committed . However, the EMF AF is a small 
fund, so it must be used strategically . Every euro invested should generate much more in terms of 
collective benefits and common good . Therefore, EMFAF funding should support investment that has 
a clear added value, in particular by addressin g market failures or suboptimal investment situations . 
Public support should not duplicate or crowd out private financing nor distort competition . Rather, it 
should facilitate private investment, especially where the private sector is profitable, like is t he 
maritime economy in general.  
The EMFAF  supports innovative projects that contribute to the sustainable use and management of 
aquatic and maritime resources.  
In particular, it facilitates:  
- sustainable and low -carbon fishing activities  
- the protection of marine biodiversity and ecosystems  
- the sup ply of quality and healthy seafood to European consumers  
- the socio -economic attractiveness and the generational renewal of the fisheries sector, in 
particular as regards small -scale coastal fisheries  
- the development of sustainable and competitive aquacultu re contributing to food security  
- the improvement of skills and working conditions in fisheries and aquaculture  
- the economic and social vitality of coastal communities  
- innovation in the sustainable blue economy  
- maritime security contributing to a safe marit ime space  
- international cooperation contributing to healthy, safe and sustainably managed oceans.  
There are limited eligibility rules at EU level . It is up to EU countries to develop in their national 
EMFAF programmes the most appropriate means for achievi ng the objectives set in line with the 
EMFAF priorities.  
 
14 Regulation (EU) No 2021/1139 of the European Parliament and of the Council of 7 July 2021 
establishing the European Maritime, Fisheries and Aquaculture Fund and amending Regulation (EU) 2017/1004.  G/SCM/N/401/EU  
- 45 - 
  A national EMFAF programme is a strategic roadmap for public investment between 2021 and 2027 . 
It describes tailor -made actions to respond to the specific challenges identified by the EU country as 
regards the common EU priorities for marine biodiversity, maritime policy and sustainable fisheries 
and aquaculture.  
There are conditions and restrictions for certain types of subsidies . The EMFAF Regulation includes 
a list of ineligible operations to avoid  detrimental impacts on sustainability (e.g. investments 
increasing fishing capacity) . Moreover, certain categories of subsidies to the fishing fleet are subject 
to specific eligibility rules to ensure their consistency with the CFP 's conservation objectiv es. 
4. Background and authority  for the subsidy  
As regards the EMFAF, 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 accordanc e 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 
implement ation and control of the operations in programmes.  
5. Form of the subsidy  
The EMFAF is managed jointly by the European Commission and national authorities (through shared 
management) and directly by the European Commission (direct management) . Under shared 
management the Fund is 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 
which projects will be funded . The national authorities and the Commission are jointly responsible 
for the implementation of the programme . Under direct management , the Commission directly 
administers the fund through work programmes adopted by the EMFAF Committee, which comprises 
a group of experts designated by EU countries.  
6. To whom and how the subsidy  is provided  
Funding is avail able to all kinds of recipients within the fishery and aquaculture sectors undertaking 
revenue -generating projects . Under the shared management part of the EMFAF, beneficiaries are 
selected on the basis of selection criteria set by the Managing Authority . Beneficiaries can include 
fishers, fisher organisations, firms in the fisheries, aquaculture, and fish processing sectors, SMEs, 
producer organisations, professional organisations, fisheries local actions groups (FLAGs) and 
cooperatives.  
EMFAF support is provided subject to compliance with CFP rules . In cases where a beneficiary 
commits a serious infringement (e.g. illegal fishing) or an EU country does not comply with a specific 
obligation, funding is interrupted, suspended or corrected.  
Member States hav e to publish, on a single website or portal, a list of operations supported under 
the EMFAF 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 be neficiaries involved in illegal 
fishing activities.  
7. Total amount  of the subsidy  
The total financial envelop of the EMFAF  is EUR  6.108  billion (EUR  5.311  billion in shared 
management and EUR  797 million  in direct management) . Under shared management, each country 
receives the same percentage of the fund 's budget as during the previous period, 2014 -2020.  
EMFF Allocation by Member State 2021 -2027 ( Euros ) 
AT 6,718,094 
BE 40,266,171 G/SCM/N/401/EU  
- 46 - 
  BG 84,944,698 
CY 38,307,322 
CZ 30,005,249 
DK 200,969,309 
DE 211,811,682 
EE 97,391,060 
ES 1,120,441,924 
FI 74,393,168  
FR 567,136,526 
GR 374,995,903 
HR 243,687,047 
HU 37,710,346 
IE 142,369,552 
IT 518,216,830 
LT 61,183,577 
LV 134,876,696 
MT 21,825,290 
NL 97,924,288 
PL 512,387,953 
PT 378,572,022 
RO 162,450,905 
SE 115,896,525 
SI 23,929,641 
SK 15,225,428 
Total  5,311,000,000 
* 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 States 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".  
8. Duration of the subsidy  
The EMFF pr ogramming period is from 2014 to 2020.The EMFAF programming period is from 
2021-2027.  
9. Statistical data permitting an assessment of the trade effects  of the subsidy  
Given that the EMFAF's main objective is to support environmentally sustainable, resource -efficient, 
competitive fisheries which are 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.  
The EU has a shortfall in fisheries and aquacultur e 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 activitie s, namely aid directly linked to 
the quantities 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 wi th the internal market, are not permitted.  G/SCM/N/401/EU  
- 47 - 
  6  PROGRAMMES IN THE FIELD OF RESEARCH  
6.1  Framework programmes  
1. Title of the subsidy programme  
- Horizon Europe – the Framework Programme for Research and Innovation , and 
- the Research and Training Programme of the European Atomic Energy Community for the 
period 2021 -2025 complementing Horizon Europe – the Framework Programme for 
Research and Innovation  
The arrangements for implementing these programmes are broadly the same and are therefore 
described together in the  following paragraphs.  
In 2021 grants were still signed on carried -over budget of Horizon 2020 (budget years 2014 -2020, 
see notification 2021).  
2. Period covered  by the notification  
2021 and 2022.  
3. Policy objective  and/or purpose of the subsidy  
Financial parti cipation in EU Research and Technological Development (RTD) and innovation 
activities during the period 2021 to 2022 is provided through the above -mentioned programmes.  
Horizon Europe is implemented through:  
(a) the specific programme established by Decisi on (EU) 2021/764;  
(b) a financial contribution to the European Institute of Innovation and Technology established by 
the EIT Regulation;  
(c) the specific programme on defence research established by Regulation (EU) 2021/697.  
Under Horizon Europe:  
- The 'Excellent Science ' pillar  aims to increase the EU 's global scientific 
competitiveness . It supports frontier research projects defined and driven by top 
researchers themselves through the European Research Council, funds fellowships for 
experienced research ers, doctoral training networks and exchanges for researchers 
through Marie Skłodowska -Curie Actions, and invests in world -class research 
infrastructures.  
- The 'Global Challenges and European Industrial Competitiveness pillar ' supports 
projects relating to societal challenges and reinforces technological and industrial 
capacities through clusters and partnerships . It sets EU -missions with ambitious goals 
tackling some of our biggest problems . It also includes activities pursued by the Joint 
Research Centre w hich supports EU and national policymakers with independent scientific 
evidence and technical support.  
- The 'Innovative Europe ' pillar  aims to make Europe a frontrunner in market -creating 
innovation via the European Innovation Council, supporting innovation s with potential 
breakthrough and disruptive nature with scale -up potential that may be too risky for 
private investors, and SMEs . It also helps to develop the overall European innovation 
landscape through the European Institute of Innovation and Technolog y (EIT) which 
fosters the integration of the knowledge triangle of education, research and innovation.  
- The 'Widening Participation and Strengthening the European Research Area ' part 
increases support to EU Member States in their efforts to make the most of their national 
research and innovation potential.  G/SCM/N/401/EU  
- 48 - 
  The programme of the European Atomic Energy Community has two main parts : fusion research 
and development  and nuclear fission, saf ety and radiation protection . The objectives and activities 
to be undertaken are set out in the Council Regulation (Euratom) 2021/765.  
The activities under these programmes relate to fundamental research, industrial research or 
pre-competitive development.  
The implementation of Horizon Europe and the Euratom Programme is aimed to respond to the 
evolving opportunities and needs of science and technology, industry, policies and society.  
4. Background and authority for the subsidy  
The legal bases of these program mes are, respectively, Articles 173, 182, 183, and 188 of the TFEU 
and Article 7 of the Treaty establishing the European Atomic Energy Community . The legal acts are 
the following:  
- Regulation (EU) 2021/695 of the European Parliament and of the Council of 2 8 April 2021 
establishing Horizon Europe – the Framework Programme for Research and Innovation, 
laying down its rules for participation and dissemination, and repealing Regulations (EU) 
No 1290/2013 and (EU) No 1291/2013 (published in OJ L 170, 12.5.2021, p . 1); 
- Council Decision (EU) 2021/764 of 1 0 May 2021 establishing the Specific Programme 
implementing Horizon Europe – the Framework Programme for Research and Innovation, 
and repealing Decision 2013/743/EU (published in OJ L 167 I, 12.5.2021, p. 1);  
- Regula tion (EU) 2021/697 of the European Parliament and of the Council of 2 9 April 2021 
establishing the European Defence Fund and repealing Regulation (EU) 2018/1092 
(published in OJ L 170, 12.5.2021, p. 149);  
- Council Regulation (Euratom) 2021/765 of 1 0 May 2021 establishing the Research and 
Training Programme of the European Atomic Energy Community for the period 2021 -2025 
complementing Horizon Europe – the Framework Programme for Research and Innovation 
and repealing Regulation (Euratom) 2018/1563 (published i n OJ L 167 I, 12.5.2021, 
p. 81). 
Work programmes are adopted specifying the research topics and other conditions for the award of 
grants are adopted, in general, every one or 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/opport unities/portal/screen/how -to-participate/referenc
e-documents  
5. Form of the subsidy  
Support to these activities is mainly provided in the form of grants within the meaning of Article  25.3 
of the WTO Agreement on Subsidies an d Countervailing Measures.  
6. To whom and how the subsidy is provided  
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 countr y) may 
participate in a project and receive EU funding from the Framework Programme broadly on the same 
terms as those established in Member States . Legal entities established in other countries may 
receive funding under certain conditions.  
In general, pro jects must include at least one independent legal entity established in a Member State 
and at least two other independent legal entities each established in different Member States or 
associated countries.  
In general, a grant is awarded on the basis of excellence, impact and quality and efficiency of the 
implementation to projects submitted by consortia of universities, research organisations and 
undertakings following, as a general rule, an invitation for p roposals and an evaluation procedure G/SCM/N/401/EU  
- 49 - 
  with independent experts and selection procedure . The legal entities apply in function of their 
interest in carrying out a research project on a specific research topic in collaboration with other 
partners.  
The amount o f 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 Regulation (EU) 
2021/695.  
7. Amount of the subsidy  
2021 -2022  Total amounts granted  
(in millions of EUR)  
Horizon 2020 EU Framework programme for Research and Innovation 
(2014 -2020)  6.116 
Horizon Europe Framework programme for Research and Innovation 
(2021 -27) 16.290  
Programme of the European Atomic Energy Community (EURATOM) 
complementing Horizon Europe (excluding Fusion grants)  329 
Total  22.735  
8. Duration of the subsidy  
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, payments are released in instalments.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
The programmes have no direct impact on trade . As a general rule, further work and considerable 
additional financial efforts of t he participants are always necessary for the results of a project to lead 
to a commercially exploitable process or product.  
Furthermore, generally access to the results must be shared among participants and a more widely 
dissemination of results is require d 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 such programmes can be assessed only several years  after the completion 
of the projects because normally further substantive investment is required after the end of the 
projects to develop commercial applications.  
10. Research on Coal and Steel  
The Treaty establishing the European Coal and Steel Community (EC SC) expired on 23 July 2002. 
The remaining 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 exclusively financed by the yearly 
returns gen erated 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 
29 April 2008 published 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.  
On 16 July 2020, the Commission adopted a package of proposals to revise the three legal bases 
regulating the Research Programme of the Research Fund for Coal and Steel.  
In July 2021, the EU adopted the new RFCS package . This modernisation act will enable the fund to 
use a portion of the assets of the European Steel and Coal Community (ECSC) in liquidation for the 
period 2021 -27 in order to provide an annual RFCS allocation up to € 111  million . G/SCM/N/401/EU  
- 50 - 
  The new RFCS legal base was used for the calls launched in 2022 . The Commission has the mandate, 
through its budgetary services, to manage the assets of the ECSC in liquidation.  
This will contribute towards the funding of large clean steelmaking research and innovation 
breakthrough projects, leading to near zero -carbon steel making by 2030 ; and research projects for 
the coal sector,  to assist the just transition of formerly operating coal mines or coal mines in the 
process of closure, and related infrastructure in line with the Just Transition Mechanism.  
Specifically to the sector related to the steel industry, the Commission will ai m to support research 
projects via a dedicated Clean Steel co -programmed partnership in synergy with other European 
Union programmes, especially with Horizon Europe.  
The programme is closely co -ordinated with other activities, carried out either in the Mem ber States 
or existing EU programmes, such as the EU Framework Programme for research, and innovation . In 
order to increase the impact of this programme, the European Commission will encourage and 
promote co -ordination, complementarities and synergy betwee n the different 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: 
https://research -and-innovation.ec.europa.eu/funding/funding -opportunities/funding -progr ammes
-and-open-calls/research -fund-coal-and-steel-rfcs_en#documents  
For coal and steel, the Union contributes financially in the following ways : through research, pilot 
and demonstration (RTD) projects, accompanying meas ures and support and preparatory actions.  
(1) Research, Pilot and 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 h ave a sufficient scale for 
use. They should allow the investigation of potential for putting theoretical or laboratory results 
either into practice or to increase the reliability of the technical and economic data needed to 
progress to the demonstration st age, 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 projects : 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 U nion is up to 50% of the allowable 
costs.  
(2) Accompanying measures are designed to complement and/or co -ordinate research  
activities related to this programme.  
(3) 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 contr act. This allows for a wide and non -discriminatory dissemination of the 
research results.  
Total EC support allocated to coal and steel projects in the period 2021 and 2022 are: 
Year 2021 -2022  
Support in  millions of EUR  222 G/SCM/N/401/EU  
- 51 - 
  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 t he various regions and the backwardness of the 
least-favoured regions.  
The years 2019 and 2020 concern one legislative package  composed of the following elements:  
- A general regulation which defines common rules, applicable to the European Regional 
Develo pment Fund (ERDF), European Social Fund (ESF) and the Cohesion Fund (CF)15. 
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 financ ially managing, controlling and evaluating 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 authori ty to carry out 
cooperation programmes . Out-turn of payment appropriations in 2019 and 2020 per 
Fund (in EUR  million s) 
Fund  Total 
appropriations 
2019  Out-turn in 
2019  Total 
appropriations 
2020  Out-turn in 
2020  
ERDF  31,002.1  29,437.7  32,297.0  32,297.0  
CF 9,801.4  8,793.2  10,164.8  10,164.8  
ESF 13,467.0  13,366.0  14,114.2  14,073.0  
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 enterpri ses. Consequently, as 
stated at the beginning of this document, the notification of a particular fund does not prejudge the 
status of the aid involved.  
7.1  European Regional Development Fund  
1. Title of the  subsidy  programme  
European Regional Development Fund (ER DF). 
2. Period covered by the notification  
2019-2020. 
3. Programming period  
The period covered by the notification refers to programming period 2014 -2020.  
4. Background and authority for the subsidy  
Articles 174 and 176 of the TFEU.  
For the programming period 2014-2020, the legal basis is:  
 
15 As well as the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime 
and Fisheries Fund (EMFF), which are not part of this section.  G/SCM/N/401/EU  
- 52 - 
  - Regulation (EC) 1303/2013 of 1 7 December  2013 laying down common provisions on 
the European Regional Development Fund, the European Social Fund, the Cohesion 
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 repealing Regulation (EC) No 1080/2006;  
- Commission De legated 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 Development Fund, the European 
Social Fund, the Cohesion Fun d, 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 Fund, the Cohesion 
Fund and the European Maritime and Fis heries Fund.  
In 2020, in response to the COVID -19 outbreak, some additional flexibility were provided under two 
regulations amending Regulation (EC) 1303/2013 and Regulation (EC) No 1301/2013:  
Regulation (EU) 2020/460 of the European Parliament and of the Council of 3 0 March  2020 
amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as 
regards specific measures to mobilise investments in the healthcare systems of Member 
States and in other sectors of their economies in response to t he COVID -19 outbreak 
(Coronavirus Response Investment Initiative)  
Regulation (EU) 2020/558 of the European Parliament and of the Council of 2 3 April 2020 
amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013 as regards specific 
measures to provide e xceptional flexibility for the use of the European Structural and 
Investments Funds in response to the COVID -19 outbreak  
5. Form of the subsidy  
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 maintenance of jobs;  
• investment in infrastructure;  
• development of endogenous potential by measures which support regional and local 
development.  
• In addition, the ERDF may support the financing of working capital in SM Es where 
necessary as a temporary measure to provide an effective response to a public health 
crisis.  
6. Policy o bjective  and/or purpose of the subsidy  
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.  
For the period 2014 -2020 the ERDF focuses its investments on several key priority areas . This is 
known as "thematic concentration ": 
- Innovation and rese arch; 
- 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.  G/SCM/N/401/EU  
- 53 - 
  In transition regions, this focus 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. To whom and how the subsidy is provided  
The rules on eligibility are determined at the national level, except when there are general rules laid 
down in the applicable EU legislation.  
In the period 2014 -2020, resources for the Investment for growth and jobs goal are allocated among 
the following three categories 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 ar e: 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. Subsidy per unit, or i n cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
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).  
Financial Allocations in Commitment Appropriations 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  G/SCM/N/401/EU  
- 54 - 
  10. 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 relevant.  
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 structural funds by national authorities is subject to EU state 
aid rules.  
11. Statistical data permitting an assessment of the trade effects  of the subsidy  
Because the Funds are designed t o 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.  
 
__________