G/SCM/N/372/EU  
16 July 2021 
(21-5662) Page: 1/49 
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  
The following communication , dated and received on 12  July 2021,  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/372/EU  
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  TABLE OF CONTENTS  
1  INTRODUCTION  ................................ ................................ ................................ ...........  4 
1.1  Structure of Notification  ................................ ................................ ................................  4 
1.2  Period Covered  ................................ ................................ ................................ .............  4 
1.3  Presentat ion 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) (2014 -2020)  ................................ .........  5 
3.2  Shared Management Funds related to the EU Energy Policy  ................................ ...............  6 
3.2.1   European Regional Development Fund (ERDF)  ................................ ...............................  6 
3.2.2   Cohesion Fund ................................ ................................ ................................ ...........  7 
3.2.3   European Social Fund  ................................ ................................ ................................ . 9 
3.2.4   European Agricultural Fund for Rural Development  ................................ ......................  10 
3.3  Guidelines for the development of the trans -European transport network (Regulation 
EU 1315/2013)  ................................ ................................ ................................ .................  12 
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of transport) 
(Regulation EU  1316/2013)  ................................ ................................ ................................  12 
4  COMMON AGRICULTURAL POLICY (CAP)  ................................ ................................ .... 13 
4.1  General Obs ervations  ................................ ................................ ................................ .. 13 
4.1.1   The CAP reform process - During the period under review of this notification the 
implementation of the 2013 refor m continued. EU transitional Regulation and Cap -Reform 
post 2020 is not part of this notification.  ................................ ................................ ..............  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 
4.3.2   Interventions in agricultural markets per sector  ................................ ...........................  16 
4.3.2.1   Cereals  ................................ ................................ ................................ ................  17 
4.3.2.2   Rice ................................ ................................ ................................ ....................  17 
4.3.2.3   Sugar  ................................ ................................ ................................ ..................  18 
4.3.2.4   Olive oil  ................................ ................................ ................................ ...............  18 
4.3.2.5   Textile plants ................................ ................................ ................................ ........  18 
4.3.2.6   Fruit and vegetables  ................................ ................................ ..............................  19 
4.3.2.7  School schemes  ................................ ................................ ................................ .... 20 
4.3.2.8   Wine ................................ ................................ ................................ ...................  21 
4.3.2.9   Promotion of agricultural products  ................................ ................................ ...........  24 
4.3.2.10   Other plant products  ................................ ................................ ............................  24 
4.3.2.11   POSEI and Aegean Islands - excluding direct aids  ................................ ....................  24 
4.3.2.12   Milk and dairy product  ................................ ................................ .........................  24 
4.3.2.13   Beef and veal  ................................ ................................ ................................ ..... 25 G/SCM/N/372/EU  
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  4.3.2.14   Sheep meat and goat meat  ................................ ................................ ..................  26 
4.3.2.15   Pig meat  ................................ ................................ ................................ ............  26 
4.3.2.16   Eggs and poultry meat  ................................ ................................ .........................  26 
4.3.2.17   Bee-keeping/apiculture  ................................ ................................ ........................  27 
4.3.3   Structure o f direct payments and general conditions  ................................ ....................  28 
4.3.3.1   Basic payment  ................................ ................................ ................................ ...... 30 
4.3.3.2   Greening and Cross Compliance  ................................ ................................ ..............  31 
4.3.3.3   Coupled Support  ................................ ................................ ................................ ... 31 
4.3.4   POSEI and Aegean islands  ................................ ................................ ........................  32 
4.4  The European Agricultural Fund for Rural Development ("Second Pillar" of the CAP) ............  33 
4.5  Measures Financed by the European Agricultural Fund for Rural Development 
("Second Pillar" of The CAP)  ................................ ................................ ...............................  34 
4.5.1   Policy framework  ................................ ................................ ................................ ..... 34 
4.5.2   Rural development measures  ................................ ................................ ....................  34 
4.6  IPARD II  ................................ ................................ ................................ ....................  39 
4.7  Measures Financed By IPARD  ................................ ................................ .......................  39 
5  EUROPEAN FISHERIES FUND (EFF) AND EUROPEAN MARITIME AND 
FISHERIES FUND (EMFF)  ................................ ................................ ...............................  40 
5.1  EU Funds  ................................ ................................ ................................ ...................  40 
6  PROGRAMMES IN THE  FIELD OF RESEARCH  ................................ ...............................  43 
6.1  Framework programmes ................................ ................................ ..............................  43 
6.2  Research on Coal and Steel  ................................ ................................ .........................  45 
7  THE EUROPEAN UNION'S STRUCTURAL ACTIONS  ................................ .......................  46 
7.1  European Regional Development Fund  ................................ ................................ ..........  47 
 G/SCM/N/372/EU  
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  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 notification 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 C overed  
As far as possible, this notification relates to subsidies granted during the period 2019 and 2020 
and to subsidy programmes which are currently in force and provides statistical information at least 
up to the end of 2020. 
1.3  Presentation of Notificati on 
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, th e presentation is different to that specified in the 
questionnaire, but all the required elements are still included.  
1.4  Status of Subsidies  
In preparing this notification, the EU has attempted to achieve the maximum transparency with 
regard to aid and suppor t 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 G ATT 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 to a specific subsidy.  
2  EUROPEAN UNION  SUBSIDIES  
a. Subsidies granted out of the European Union budget  
The two largest areas of expenditure were struc tural and agriculture operations . Another notable 
area of expenditure is research . All these are described in more detail in this part of the notification.  
b. State aid in the Member States  
The European Commission is responsible for examining all state aid gr anted within the EU in order 
to determine its conformity with Article  107 of the EU Treaty . Member States are required to notify 
all aid schemes to the Commission, which may decide either not to raise any objection or open an 
investigation procedure . If the aid scheme is ultimately found not to conform to Article  107, the 
Commission 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/372/EU  
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  3  EU FINANCING PROGRAMMES IN THE FIELD OF ENERGY AND TRANSPORT  
3.1  Connecting Europe Facility (in the field of energy) (2014 -2020)  
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Connecting Europe Facility (in the field of energy) (CEF -Energy).  
2. Period covered by the notification  
2019-2020.  
3. Policy objective and/or purpose of the subsidy  
CEF-Energy is available for trans -European energy infrastructure projects such as gas pipelines, 
transmission grids, LNG terminals, gas storage, and smart grids . Every two years the European 
Commission draws up a list of EU projects of common interest (PCIs) which may a pply for CEF 
funding . The current forth list of EU PCIs includes 149 projects (100  electricity transmission and 
storage, 6  smart grid deployment, 32 gas, 6 oil and 5  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 granting decisions (3.5 years) and with regulatory solutions to address specific 
problems  of energy projects of cross border nature . Grants for works under the CEF are not available 
to all PCIs but only to those that are commercially not viable (i.e. do not have a guarantee of cost 
recovery under the tariff scheme approved) but have particular ly high positive externalities 
(e.g. increasing security of supply, testing new technologies).  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
Regulation (EU) No  1316/2013 of the European Parliament and of the Council of 11  December  2013 
establishing the Connecting Europe Facility, amending Regulation (EU) No  913/2010 and repealing 
Regulations (EC) No  680/2007 and (EC) No  67/2010 Text with EEA relevance;  
Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17  April 2013 on 
guidelines for trans -European energy infrastructure and repealing Decision No  1364/2006/EC and 
amending Regulations (EC) No  713/2009, (EC) No  714/2009 and (EC) No  715/2009 Text w ith EEA 
relevance;  
Commission Delegated Regulation (EU) 2018/540 of 2 3 November  2017 amending Regulation (EU) 
No 347/2013 of the European Parliament and of the Council as regards the Union list of projects of 
common interest;  
Commission Delegated Regulatio n (EU) 2020/389 of 3 1 October  2019 amending Regulation (EU) 
No 347/2013 of the European Parliament and of the Council as regards the Union list of projects of 
common interest.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Grants.  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amount per unit ; if the latter, how 
determined ) 
Others.  G/SCM/N/372/EU  
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  7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per unit subsidy information (for the year covered by the notification, 
for the previ ous year, or both) is not possible, a full explanation  
In the period 2019 -2020, CEF Energy awarded grants of EUR 1.55 billion  to 18 actions (8 electricity 
actions, 6 CO2 actions, 3 gas actions and 1 Smart Grid action).  
8. Duration of the subsidy and/or any  other time limits attached to it, including date of 
inception/commencement  
N.A. 
3.2  Shared Management Funds related to the EU Energy Policy  
3.2.1   European Regional Development Fund (ERDF)  
The ERDF aims to strengthen economic and social cohesion in the European Union by correcting 
imbalances between its regions.  
The ERDF focuses its investments on several key priority areas . This is known as 'thematic 
concentration':  
• Innovation and research;  
• The digital agenda;  
• Support for small and medium -sized enterpri ses (SMEs);  
• The low -carbon economy.  
The ERDF resources allocated to these priorities will depend on the category of region.  
• In more developed regions, at least 80 % of funds must focus on at least two of these 
priorities;  
• In transition regions, this focus i s for 60 % of the funds;  
• This 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%. 
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
European Regional Development Fund (ERDF) (in the field of energy) (Regulation No 1301/2013 ) 
2. Period covered by the notification  
2014 - 2020. 
3. Policy obj ective and/or purpose of the subsidy  
In the field of energy , the focus is on energy efficiency, renewable energy, smart distribution grids, 
energy RTDI, smart energy infrastructure (incl . TEN-E). G/SCM/N/372/EU  
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  Specific focus areas  are defined in the Operational Programm es. Specific selection criteria defined 
by the Managing Authorities of the Operational Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
REGULATION (EU) No  1301/2013 of the European Parliament and of the Council of 
17 December  2013 on the European Regional Development Fund and on specific provisions 
concerning t he Investment for growth and jobs goal and repealing Regulation (EC) No  1080/2006 . 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants)  
6. To wh om and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amount per unit ; if the latter, how 
determined ) 
Grants : Public and private entities  
Financial Instruments : The body that implements the financial instrument or the fund of funds 
(e.g. banks) is considered to be the beneficiary of the financial instrument . The beneficiary is distinct 
from the final recipients which can be public or private bodies, including individu als (e.g. households 
renovating their residence).  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Around EUR 29 bn allocated in total to the energy focus areas from the ERDF and the CF taken 
togethe r out of which around EUR 17 bn for energy efficiency in buildings and enterprises, to be 
used both for grants and financial instruments (2014  - 2020).  
ERDF has to be matched with national co -financing (public and/or private), defined within the 
operationa l programmes . Maximum share from EU budget depending  on the level of development 
of the region (from 50 to 85 % at priority axis level, with an additional 10 % points top up applies for 
contributions to EU level instruments or priority axis dedicated to fina ncial instruments only and no 
national co -financing is required for contributions to EU level instruments).  
3.1.  By way of derogation, at the request of a Member State, a co -financing rate of 100 % may be 
applied to expenditure declared in payment applications d uring the accounting year starting 
1 July 2020 and ending 3 0 June 2021 for one or more priority axes in a programme supported by 
the ERDF, the ESF or the Cohesion Fund.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014 - 2020. 
3.2.2   Cohesion Fund  
The Cohesion Fund is aimed at Member States whose Gross National Income (GNI) per inhabitant is 
less than 90 % of the EU average . It aims to reduce economic and social disparities and to promote 
sustainable development.  G/SCM/N/372/EU  
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  The Cohesion Fund allocates a total of EUR 63.4 billion  to activities under the following categories:  
• trans-European transport networks, notably priority projects of European interest as 
identified by the EU . The Cohesion Fund will  support infrastructure projects under the 
Connecting Europe Facility;  
• environment : here, the Cohesion Fund can also support projects related to energy or 
transport, as long as they clearly benefit the environment in terms of energy efficiency, 
use of rene wable energy, developing rail transport, supporting intermodality, 
strengthening public transport, etc.  
The financial assistance of the Cohesion Fund can be suspended by a Council decision (taken by 
qualified majority) if a Member State shows excessive public deficit and if it has not resolved the 
situation or has not taken the appropriate action to do so.  
Specific focus areas defined in the Operational Programmes . Specific selection criteria defined by 
the Managing Authorities of the Operation al Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
The Cohesion Fund (in the fi eld of energy) (Regulation 1300/2013 ). 
2. Period covered by the notification  
2014 – 2020. 
3. Policy objective and/or purpose of the subsidy  
In the field of energy , the focus is on energy efficiency, renewable energy, smart distribution grids . 
Specific focu s areas defined in the Operational Programmes . Specific selection criteria defined by 
the Managing Authorities of the Operational Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
Regulation (EU) No  1300/2013 of the European Parliament and of the Council of 17  December  2013 
on the Cohesion Fund and repealing Council Regul ation (EC) No  1084/2006 . 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with grants) . 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amount per unit ; if the latter, how 
determined ) 
Grants : Public and private entities . 
Financial Instruments : The body that implements the financial instrument or the fund of funds 
(e.g. banks) is considered to be the beneficiary of the financial instrument . The beneficiary is distinct 
from the final recipients which can be public or private bodies, including individuals (e.g.  households 
renovating their residence).  
Eligible countries : BG, HR, CY, CZ, EE, EL, HU, LV, LT, MT, PL, PT, RO, SK and SL . G/SCM/N/372/EU  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per u nit in the previous 
year) . Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Around EUR 29 billion  allocated in total to the energy focus areas fro m the ERDF and the CF taken 
together (see also the table above), out of which around EUR 17 bn for energy efficiency in buildings 
and enterprises, to be used both for grants and financial instruments (2014 -2020).  
CF has to be matched with national co -financing (public or and private), defined within the 
operational programmes . Maximum share from EU budget 85 % at priority axis level.  
Only eligible expenditure can be financed . Eligibility rules are defined at national level, except where 
specific rules set at  EU level apply . The amount of CF that a given project can receive depends on a 
number of factors, in particular whether it is revenue generating or not (in which case, only the 
"funding gap" i.e. the part of the investment costs that is not covered by the  net revenue generated, 
can be financed) . State aid rules need to be complied with.  
Financial instruments can provide finance to revenue generating projects, including cost savings (not 
limited to the "funding gap" only) . The percentage that can be finance d will depend on State aid 
rules and the specific provisions of the given instrument.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014 - 2020. 
3.2.3   European Social Fund  
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
European Social Fund (ESF) (in the field of energy) (Regulation No 1301/2013 ). 
The ESF investments cover all EU regions . More than EUR 80 billion  is earmarked for human c apital 
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 e mployment 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 investments w ill 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 a nd 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 
qualificatio ns, the up -skilling of the labour force, and the creation of new jobs in sectors related to 
the environment and energy.  G/SCM/N/372/EU  
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
Regulation (EU) No 1304/2013 of the European Parliament and of the Council of 17  December  2013 
on the European Social Fund and repealing Council Regulation (EC) No 1081/2006 . 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Grants and financial instruments  (Loans, guarantees and equity, possibility to combine with grants) . 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amount per unit ; if the latter, how 
deter mined ) 
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 fin al recipients which can be public or private bodies, including individuals.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per unit subsidy information (for the year covered by the notification, 
for the previous year, or both) is not possible, a full explanation  
The ESF contribution allocated to the thematic objective "Supporting the shift to a low -carbon, 
resource efficient economy", as a secondary theme, 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 developm ent of 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 a id 
rules and the specific provisions of the given instrument.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014-2020. 
3.2.4   European Agricultural Fund for Rural Development  
The EU's rural development policy helps the rural areas of the EU to meet the wide range of 
economic, environmental and social challenges of the 21st century . Frequently called "the second 
pillar" of the Common Agricultural Policy (CAP), it complements the  system of direct payments to 
farmers and measures to manage agricultural markets (the so -called "first pillar") . Rural 
Development policy shares a number of objectives with other European Structural and Investment 
Funds (ESIF).  
1. Title of the subsidy pro gramme, if relevant, or brief description or identification of the subsidy  
European Agricultural Fund for Rural Development  (EAFRD) (in the field of energy) (Regulation 
No 1305/2013 ). 
2. Period covered by the notification  
2014 – 2020. G/SCM/N/372/EU  
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  3. Policy objective a nd/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 
bioenergy for on -farm use  and support of infrastructure for energy supply for distributing renewable 
energy are available . Under farm and business development measure , renewable energy production 
can also be supported as a startup aid for non -agricultural activities or diversification  into 
non-agricultural activities.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17  December  2013 
on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) 
and repealing Council Regulation (EC) No 1698/2005 . 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Grants and financial instruments (Loans, gua rantees and equity, possibility to combine with grants) . 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amount per unit ; if the latter, how 
determined ) 
Grants : 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 wh ere this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per unit subsidy information (for the year covered by the 
notificatio n, for the previous year, or both) is not possible, a full explanation  
For the 2014 -2020 period for rural development programmes , EUR 99.6 billion  are available from 
EAFRD , mobilising more than EUR 160 billion  of public funding in the 28 Member States . It is up to 
the Member States how big a percentage of their amount is devoted for investment in energy 
production . Based on the strategy of the programmes, MS reserved EUR 1.3 billion  of public support 
for the projects primarily targeting "increasing efficien cy in energy use in agriculture and food 
processing" and EUR 1.6 billion  for "facilitating the supply and use of renewable sources of energy, 
of by-products, wastes and residues and of other non -food raw material, for the purposes of the 
bio-economy".  
Moreover, energy -related projects can also be financed from other measures, such as measures 
aiming at improving the economic performance of farms, including irrigation (almost EUR  30 billion 
of public support reserved for enhancing of economic p erformance and increasing efficiency in water 
use by agriculture).  
Only eligible expenditure can be financed . The minimum EU contribution is 20 % share of EAFRD 
contribution in the total public support . Depending on the region and type of operation, the max imum 
Union contribution can be 53 % to 100 %. 
Aid intensity rates (share of public contribution in the total eligible expenditure of the project) are 
subject to type of operation . Building of infrastructure can be 100 %, but in other cases it is 40 % in 
most o f 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 Pr ogramme (RDP).  G/SCM/N/372/EU  
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  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014 - 2020. 
3.3  Guidelines for the development of the trans -European transport network (Regulation 
EU 1315/2013)  
This Regulation es tablishes 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 identifies projects of 
common interest and specifies the requirements to be complied with for the management of the 
infrastructure of the trans -European transport network.  
The trans -European transport network comprises transport infrastructure and telematic a pplications 
as well as measures promoting the efficient management and use of such infrastructure and 
permitting the establishment and operation of sustainable and efficient transport services.  
This Regulation sets out the priorities for the development of  the trans -European transport network 
and provides for measures for the implementation of the trans -European transport network . 
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of transport) 
(Regulation EU  1316/2013)  
Connecting Europe Facili ty 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 guidel ines and 
listed in the Annex of the CEF in the case of transport and energy.  
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Connecting Europe Facility EU Financing Programme (in the field of transport sector) (Regulation EU 
1316/2013).  
2. Period covered by the notification  
2019 – 2020. 
3. Policy objective and/or purpose of the subsidy  
The overall objective of the CEF is to help create high -performing and environmentally sustainable 
interconnec ted networks across Europe, thereby contributing to economic growth and social and 
territorial cohesion within the Union . Such investments in infrastructure are also instrumental in 
allowing the EU to meet its sustainable growth objectives outlined in the Europe 2020 Strategy and 
the Union priorities, notably those related to "Jobs, growth and investment", "Digital single market" 
and "Energy Union and climate".  
The objectives and priorities set in the Annual and Multi -Annual Work Programme for 2018 and 2019 
call for proposals (respectively completed in 2019  and 2020) are in line with the Union priorities, 
notably those related to "Jobs, growth and investment", "Digital single market" and "Energy Union 
and climate".  
More in detail, between 2019 and 2020, the Commission selected more than 253 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 2.772 billion . G/SCM/N/372/EU  
- 13 - 
  4. Background and authority for t he subsidy (including identification of the legislation under 
which it is granted ) 
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 network and repealing 
Decision No 661/2010/EU . 
Regulation (EU) No 1316/2013 of the European Parliament and of the Council establishing the 
Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations 
(EC) No 680/2007  and (EC) No 67/2010.  
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Grants, procurement and financial instruments.  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whethe r a fixed or fluctuating amount per unit ; if the latter, how 
determined ) 
Others.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Annual amounts in annual and multi -annual work programmes (2014 -2020)  - Commitment 
appropriations:  
2019 – approximately EUR 421 million  
2020 - approximately EUR 2,351 million  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014 - 2020 (costs eligible until 2023).  
4  COMMON AGRICULTURAL POLICY (CAP)  
4.1  General Observations  
4.1.1   The CAP reform process - During the period under review of this notification the 
implementation of the 2013 reform continued . EU transitional Regulation and Cap -Reform 
post 2020 is 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 policy shift has 
taken place from price support mechanisms to income support conditioned on the respect of certain 
criteria, with a shift in policy away from trade distorting amber box support to non -trade distorting 
green box support . Direct payments now cover nearly 90 % of the EU budget outlay for "first pillar" 
support (i.e. market measures and direct payments together) . The 2013 Reform enhanced further 
the environmental and climate -change mitigating elem ents 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 S APS, aid is no longer linked to production 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 paym ent. The 2013 reform main elements are decoupled "basic payment" 
(Basic  Payment Scheme [BPS] or Single Area Payment Scheme [SAPS],) complemented by a series 
of other decoupled support schemes targeting specific objectives or types of farmers : greening, G/SCM/N/372/EU  
- 14 - 
  young farmers, redistributive payments, areas with national constraints, plus the Voluntary Coupled 
Support (VCS) - see 4.3.3.1 for details and, for some Member States, the crop -specific payment for 
cotton – see 4.3.3.2 for details.  
Under the current CAP, market intervention measures operate as a genuine safety net in case of 
crisis. As a result of these reforms the CAP has been further modernised and simplified . Moreover, 
Rural Development policy has been further strengthened to allow farmers to face new chal lenges, 
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 fa rmers under support 
schemes within the framework of the common agricultural policy and repealing Council Regulation 
(EC) 637/2008 and Council Regulation (EC) No 73/2009 and Regulation (EU) No 1305/2013 of 
the European Parliament and of the Council on suppo rt 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 expenditure 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 entered into force with the 
agricultural part of the so -called "Omnibus Regulation" . The main changes concern increased 
flexibility in the design of certain measures and extension of some prerogatives of producer 
organisations to all sectors to improve the position of farmers in the value chain.  
On 17 April 2019, Directive (EU) 2019/633 on unfair trading practices in business -to-business 
relationships in the agricultural and food supply chain  was adop ted. 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 . 
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) a nd the European Agricultural Fund for Rural 
Development (EAFRD) during the years 2019 and 2020 . 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 Expo rt subsidies, 4.3.2 Interventions in agricultural markets and 4.3.3 Direct 
payments) . Support covered by the EAFRD (second pillar of the CAP) is treated in the same 
manner in sections 4.4 and 4.5 of this notification . Sections 4.6 and 4.7 cover support for 
pre-accession measures in the field of Rural Development in so far as the payments occurred in 
the candidate countries to the EU.  
From 2014, a crisis reserve was introduced to ensure additional support for the agricultural sector 
in the case of a major crisis. This is financed annually within the financial discipline mechanism 
taking the form of an adjustment rate reducing the direct payments . To ensure that the annual 
ceilings for the financing of market related expenditures and direct payments are respected in a 
given year, the mentioned adjustment rate might, if needed, be increased . In the case that the 
total amount of the crisis reserve has not been spent by the end of the budge t 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.  G/SCM/N/372/EU  
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  General Summary of expenditure for Agriculture and Rural Development,  million  EUR 
 2018  2019  2020  
European Agricultural Guarantee 
Fund (EAGF)  44,147.70  43,748.94  44,206.53  
Export subsidies  0.16 1.06 0.00 
Other intervention in markets  2,651.02  2,412.22  2,634.78  
Direct payments  41,496.52  41,335.66  41,571.75  
Of which non -trade distorting direct 
payments  36,715.50  36,601.40  36,774.01  
European Agricultural Fund for 
Rural Development (EAFRD)  12,445.47  14,097.69  14,569.63  
Rural Development 2014 -2020 12,173.54  13,840.00  14,569.48  
Rural development 2007 -2013 271.93  257.69  0.15 
Rural development completion of 
previous periods  0.00 0.00 0.00 
Pre-accession (Ipard)  98.30  73.96  77.01  
 
 
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 publicly available at the following websites:  
http://eur -lex.europa.eu/homepage.html?locale=en  (English).  
http://eur -lex.europa.eu/homepage.html?locale=fr  (French).  
http://eur -lex.europa.eu/homepage.html?locale=es  (Spanish).  
The EU budget can be consulted at:  
http://eur -lex.europa.eu/budget/www/index -en.htm  (English).  
http://eur -lex.europa.eu/budget/www/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 programme  
Common Agricultural Policy - Direct payments and interventions in markets (" First Pillar")  
2. Period covered by the notification  
1 January  2019 - 31 December  2020. 
3. Policy objective and/or purpose of the programme  
The policy objective aims at:  
• providing the farming community with a fair standard of living;  
• supplying consumers with foo d at reasonable prices ; and 
• promoting effective use of resources.  
4. Background and authority for the programme  
Treaty on the Functioning of the European Union, in particular Title III of Part III.  G/SCM/N/372/EU  
- 16 - 
  5. Form of assistance granted  
The aid is normally in the form of grants or loans.  
6. To whom and how the assistance is provided  
Payments are made to economic actors in the sector, for the large part, agricultural producers.  
7. Total expenditure under the programme  
European Agricultural Guarantee Fund - financial year (million EUR)  
 2018  2019  2020  
Intervention in markets  2,651.02  2,412.22  2,634.78  
Export subsidies  0.16 1.06 0.00 
Direct payments  41,496.52  41,335.66  41,571.75  
Total EAGF  44,147.7  43,748.94  44,206.53  
Of which non -trade distorting direct payments  36,715.5  36,601.40  36,774.01  
 
8. Duration of the programme  
The current multi -annual financial framework covers the period from 2014 to 2020.  
9. Trade effects  
In 2020, 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 the CAP)  
4.3.1   Export refunds  
The last export licence was granted in July 2013. All payments made after this date for export 
subsidies relate to licences issued before this date, but where the administrative procedures for 
making the payments had not been finalised . The total amounts paid on export refunds by the EAGF 
in 2018, 2019 and 2020 are as  follows : EUR  0.16 million , EUR 1.06 million and EUR 0.00 million . 
4.3.2   Interventions in agricultural markets per sector  
In order to stabilise markets and assure the agricultural population of an equitable standard of living, 
the Common Agricultural Policy prov ides, 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 4.3.2 deals with spending for the Interventions in 
agricultural m arkets per sector . Section 4.3.3 will address Direct Payments in a similar way . Most of 
the support schemes represented in the section 4.3.2 of this notification have their legal basis in 
Regulation (EU) No 1308/2013 of the European Parliament and of the C ouncil of 1 7 December  2013 
establishing a common organisation of the markets in agricultural products and repealing Council 
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC)  No 1234/2007 as well 
as Council Regulation (EU) No 1370/201 3 of 16 December  2013 determining measures on fixing 
certain aids and refunds related to the common organisation of the markets in agricultural products.  G/SCM/N/372/EU  
- 17 - 
  Support to agricultural markets (EAGF budget - payments) EUR  million  
Products  2018  2019  2020  
Cereals  14.9 0.0 0.0 
Rice 0.0 0.0 0.0 
Food programs  0.0 0.0 0.0 
Sugar  0.0 0.0 0.0 
Olive oil  47.9 36.7 35.1 
Textile plants  0.0 0.0 0.0 
Fruits and vegetables  865.1  865.7  915.0  
Wine 968.1  987.5  1,056.6  
Promotion  97.3 119.0  137.7  
Other plant products  231.2  230.3  227.7  
Dairy products  201.1  -60.3 1.0 
Beef and veal  0.1 1.1 49.5 
Sheep and goat  0.0 0.0 0.0 
Pigmeat  0.0 0.0 0.0 
Eggs and poultry  0.0 0.0 0.0 
Other measures & animal products  63.9 41.9 50.0 
School Schemes  155.8  191.5  162.1  
Total expenditure  2,645.4  2,413.3  2,634.8  
 
 
The negative amount for dairy products in 2019 is due to the sales of skimmed milk powder  (SMP) 
from public intervention . The amounts for the animal sectors in 2020 represent mainly private 
storage costs for butter, skimmed milk powder, cheese, beef and sheep and goat linked with the 
Covid -19 measures taken in spring 2020 . Beef and veal include also an exceptional measure for Irish 
beef. Other measures include support for the apiculture programmes and amounts corresponding to 
emergency measures linked to avian influenza . The amount for olive oil in 2020 includes private 
storage aid for olive oil.  
4.3.2.1   Cereals  
Public intervention  
Public intervention is available for certain cereals from 1 November  to 31 May.  
During t his 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, before 
unloading).  
Cereals will only be accepted in public interven tion 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 t he near 
future.  
4.3.2.2   Rice 
Public intervention  
Public intervention is available for paddy rice from 1 April to 31 July. D uring this period, public 
intervention may be opened by the Commission for paddy rice, by means of implementing acts, if G/SCM/N/372/EU  
- 18 - 
  the market situation  so requires . Rice will only be accepted in intervention if it complies with certain 
eligibility criteria.  
The reference threshold for paddy rice is EUR 150/tonne for the defined standard quality (related to 
the wholesale stage for goods delivered to the w arehouse, before unloading).  
If the rice offered to intervention differs from the standard quality, the price is adjusted accordingly.  
In practice, public intervention has not been used for rice since 2000 . Based on current market 
prices (well above the reference price), no public intervention is expected for rice in the near future.  
4.3.2.3   Sugar  
Private storage  
There is a private storage system as a safety net . Following 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 m ay decide to grant aid for private storage of white sugar to undertakings.  
Quota system  
The quota system expired on 30 September 2017.  
4.3.2.4   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, presentation and advertising re quired 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 millio n to support programmes carried out by producer organisations 
and interbranch organisations in the areas of market knowledge, improvement of environmental 
impact, improvement competitiveness, quality, traceability schemes and dissemination of 
information.  
Private storage  
The Commission may decide to authorise bodies, offering sufficient guarantees and approved by the 
Member States, to conclude contracts for the storage of olive oil that they market, inter alia , taking 
into account the average price recorded  on the market, the reference thresholds, the production 
costs and/or the need to timely respond to a particularly difficult market situation or economic 
development having a significant negative impact on the margins in the sector.  
A severe imbalance betw een supply and demand on the EU olive oil market in 2019 resulted in a 
significant price decrease . The European Commission adopted private storage aid for olive oil at the 
end of 2019 (virgin and lampante categories) and beginning of 2020 (extra virgin, vi rgin and 
lampante categories) for periods of 180 days in order to alleviate the difficult market situation.  
4.3.2.5   Textile plants  
National restructuring programmes for the cotton sector  
EU funds are attributed to Member States to finance specific restructuring me asures 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 G/SCM/N/372/EU  
- 19 - 
  the financial year 2010 onwards shall be as follows : EUR  4.0 million  for Greece and 
EUR 6.134  million for Spain.  
The res tructuring 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 has 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 . 
4.3.2.6   Fruit and vegetables  
The objectives of the fruit and vegetables scheme remain to improve the competitiveness and 
market orientation of the fruit and vege table sector, reduce producers' income fluctuations resulting 
from crises, promote consumption - so contributing to improved public health - and enhance 
environmental safeguards . The support measures include:  
(a) planning of production, including production an d 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 o f 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 value of marketed produce, but this  may rise to 4.6 % (4.7% in case of associations of 
producer organisations) provided that the amount in excess of 4.1 % is used only for crisis prevention 
and management measures.  
Crisis prevention and management  
Producer organisations' operational programme s 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 communication, 
whether for preventio n or during a crisis period, support for the administrative costs of setting up G/SCM/N/372/EU  
- 20 - 
  or for the refilling of mutual funds, replanting of orchards for health or phytosanitary reasons, market 
withdrawal, green harvesting/non -harvesting 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 flexibility to producer organisations and their associations on controls and 
management of operational programmes, i ncluding 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 located 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.  
4.3.2.7   School scheme s 
School Fruit and Vegetables Scheme  
The EU School Fruit and Vegetables Scheme (SFVS) was o perational from school year 2009 -2010 to 
2016/2017 . It aimed to encourage the consumption of fruit and vegetables and contribute to shaping 
healthy eating habits in young people . Since 2014, the SFVS made available EUR 150 million  of EU 
funds per school ye ar and this money was matched by national and private funds in the scale of 
25% or 10% for less developed regions (co -financing) . Around 12.2  million  children from 24 Member 
States out of 28 benefited from the scheme in school year 2016/17 . The EU budget c ontributed with 
EUR 116.8 million . 
School Milk Scheme  
The EU school milk scheme (SMS), first established in 1977, was operational until school 
year 2016/2017 . It aimed to encourage children's consumption of milk and other milk products 
containing important  vitamins and minerals . Member States could grant national aid, in addition to 
EU aid . Around 18  million  children in the 28 Member States benefited from the scheme in school 
year 2016/2017 . The EU budget contributed with EUR 62.5 million . 
EU School Scheme  
The new combined scheme entered into force on 1 August  2017, ahead of the 2017 -2018 school 
year. Like the individual schemes it replaces, it aims at increasing children's consumption of fruit, 
vegetables and milk and encouraging healthier eating hab its. 
The total EU budget is EUR 250 million  per school year, of which EUR 150 million  for fruit/vegetables 
and 100  million  for milk and the possibility for the Member States to transfer part of resources 
between the two parts of the scheme . This budget cov ers 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, mon itoring and evaluation . Member States may grant national aid, in addition to EU aid.  
The total EU budget is EUR 250 million  per school year, of which EUR 150 million  for fruit/vegetables 
and 100  million  for milk and the possibility for the Member States to transfer part of resources 
between the two parts of the scheme .1 This budget covers 1) the supply/distribution of fruit, 
vegetables, milk and certain milk products to schoolchildren ; 2) educational measure s such as farm 
 
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.  G/SCM/N/372/EU  
- 21 - 
  visits, school gardens, workshops and training activities ; and 3) other costs related to information, 
publicity, monitoring and evaluation . Member States may grant national aid, in addition to EU aid.  
School year  Participating 
childre n (millions, 
EU 282) EU budget for school 
fruit/vegetables (payments in 
EUR million , EU 28)3 EU budget for school milk 
(payments in EUR  million , 
EU 28)4 
2017/2018  20.2 113.7  71.1 
2018/2019  19.4 119.9  73.6 
2019/2020  19.3 94.2 56.8 
4.3.2.8   Wine  
National financial envelopes  
The 2008 wine reform introduced national financial envelopes (proportional to the production level 
in each Member State) to set up national support programmes in order to assist the wine sector 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 o f 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 restructuring of vineyards, investments in tra nsforming 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 measure . Now the current programming p eriod (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:  
• Promotion on third -country markets:  
This support covers information or promotion measures concerning EU wines in 
third-countries, thereby improving their competitiveness in those countries . The support 
relates to wines with a protected designation of origin or geographical indication or wine s 
with an indication of the wine grape variety . The EU contribution to promotion activities 
shall not exceed 50 % of the eligible expenditure . The measures may consist only of:  
o public relations, promotional or advertisement measures, in particular 
highlighting the advantages of the EU products, especially in terms of quality, 
food safety or environmental friendliness;  
o participation at events, fairs or exhibitions of international  importance;  
o information campaigns, in particular on the EU systems covering designations 
of origin, geographical indications and organic production;  
o studies of new markets, necessary for the expansion of market outlets;  
o studies to evaluate the results of the promotional 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 co vering designations 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.  
 
2 Source: Member States’ annual monitoring reports. In some cou ntries, these are estimates as the 
exact number is not/not easily available. Figures for the 2019/2020 school year are preliminary.  
3 Source: Member States’ declarations of expenditure. Figures for the 2019/2020 school year are 
preliminary as corrections a re possible and payments may still be made.  
4 Source: Member States’ declarations of expenditure. Figures for the 2019/2020 school year are 
preliminary as corrections are possible and payments may still be made.  G/SCM/N/372/EU  
- 22 - 
  • Restructuring and conversi on of vineyards:  
The objective of measures relating to the restructuring and conversion of vineyards is to 
increase the competitiveness of wine producers . Restructuring and conversion of 
vineyards is supported if Member States submit the inventory of their  production 
potential . Support for restructuring and conversion of vineyards may only cover one or 
more of the following activities:  
o varietal conversion, including by means of grafting -on; 
o relocation of vineyards;  
o replanting of vineyards where that is nece ssary 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 pro duction.  
The normal renewal of vineyards which have come to the end of their natural life is not supported.  
Support for restructuring and conversion of vineyards may only take the following forms:  
o Compensation of producers for the loss of revenue due to the implementation 
of the measure . Compensation of producers for the loss of revenue may cover 
up to 100 % of the relevant loss.  
o Contribution to the costs of restructuring and conversion . The EU contribution 
to the actual costs of restructuring and conversi on 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 th e 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 market 
in wine in th e 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 themselv es 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 safeguarding producers' in comes 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 pre miums paid for by producers for insurance against 
losses as a result of adverse climatic events which can be assimilated to natural 
disasters;  G/SCM/N/372/EU  
- 23 - 
  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, a s 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.  
• 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 marketability and competitiveness of thes e 
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 am ount 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 contained in the wine 
produced . The maxim um 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 CO VID-19 pandemic, the European Commission has adopted a package5 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 management 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 .6 
It also introduced 2 temporary crisis measures : crisis distillation and crisis storage.  
 
5 Commission Delegated Regulation (EU) No 20 20/592 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 Delegate d Regulation (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 . 
6 Article 43 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 
17 December 2013 . G/SCM/N/372/EU  
- 24 - 
  4.3.2.9   Promotion of agricultural products  
The promotion policy has been reforme d 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 internal market and in third countries . 
This regulation applies from 1 December  2015 and repeals Council Regulation (EC) No 3/2008 of 
17 December  2007. 
The EU can assist in financing measures for the information on and promotion of agricultural products 
and food on the EU internal market and in  third countries . These measures can consist of public 
relations, promotional or publicity actions, participation at events and fairs, in particular those that 
highlight the advantages of EU products, especially in terms of quality, hygiene, food safety, 
nutrition, labelling, animal welfare or environmental friendliness of their production . Also covered 
are information campaigns on the EU system of protected designations of origin (P.D.O.), protected 
geographical indications (P.G.I.) and traditional special ity guaranteed (T.S.G.), information on EU 
quality and labelling systems and on "organic farming".  
The financing of the new promotion policy is foreseen to increase progressively from EUR 61 million 
in 2014 to EUR  200 million in 2020 together with higher EU co-financing rates in comparison to the 
previous regime . The EU co -finances promotion measures at a rate of 70 % for simple programmes 
(programmes submitted by one or more organisations from the same Member State), 80 % for 
multi-programmes (programmes submitted by at least two organisations from at least two Member 
States or one or more European organisations) and programmes targeting third countries, 85 % for 
crisis management programmes and a 5 % top on for beneficiaries from Member States u nder 
financial assistance, whereas the national co -financing disappears in these Member States . A key 
element of the new promotion policy is the establishment of an annual work programme, which sets 
out the strategic priorities for promotion measures in te rms 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.  
4.3.2.10   Other plant 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 couple d aid.  
4.3.2.11   POSEI and Aegean Islands - excluding direct aid s 
The legal basis 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 constraints 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 remoteness, 
insularity, and distant location are applied.  
4.3.2.12   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 
minim um butterfat content, by weight, of 82 % and a maximum water content, by weight, of 16 % 
and for skimmed milk powder of top quality made from cow's milk in an approved undertaking in 
the Union by the spray process, with a minimum protein -content of 34 % by we ight of the fat free 
dry matter . The reference thresholds are EUR 246.39 per 100 kg for butter and EUR 169.80 per 
100 kg for skimmed milk powder . When buying -in at fixed price, the public intervention price is 90 % 
of the reference threshold for butter and 100% for skimmed milk powder.  G/SCM/N/372/EU  
- 25 - 
  For butter and skimmed milk 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 powde r, 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.  
No public intervention buying in has  taken place in years 2018  - 2020.  
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 exclusively from cow's milk;  
o skimmed milk powder made from cow's milk;  
o cheese benefiting from a protected designation of origin or from a protected  
o geographical indication and with a certain maturing period.  
In the light of the market disturbances emerged as a consequence of the Covid -19 pandemic, Private 
Storage Aid was granted for butter and skimmed milk powder between May and June 2020 (storage 
periods potentially elapsing until December  2020).  
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 consume r confidence due to public, animal or plant health 
risks.  
In the light of the market disturbances which emerged as a consequence of the Covid -19 pandemic, 
Private Storage Aid was granted for cheese between May and June 2020 (storage periods potentially 
elapsing until December  2020). This measure was implemented as an exceptional one, as Private 
Storage Aid for cheese under Regulation (EU) No 1308/2013 is limited to cheeses with protected 
designation of origin or protected geographical indication.  
Production  limitation  
The milk quota system ended with effect from 3 1 March  2015. 
4.3.2.13   Beef and veal  
Public intervention  
As regards the beef and veal sector, the reference threshold is fixed at EUR 2,224/tonne for 
carcasses of male bovine animals of grade R3 as laid down  in the EU scale for the classification of 
carcasses of bovine animals aged eight months or more . The Commission may open public 
intervention for beef and veal if, over a representative period, the average market price in a Member 
State or in a region of a  Member 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 
Member State or region of a Member State on the basis of recorded average market prices . The 
maximum buying -in price determined in accordance with tendering procedures shall not exceed 85 % 
of the reference threshold.  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult market situation and/or 
taking into account  the average recorded EU market prices and the production costs.  G/SCM/N/372/EU  
- 26 - 
  In the light of the market disturbances which emerged as a consequence of the Covid -19 pandemic, 
Private Storage Aid was granted, for fresh and chilled meat of bovine animals aged eight month s or 
more, between May and July 2020 (storage periods elapsed in November  2020).  
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.  
4.3.2.14   Sheep meat and goat meat  
Private storage  
Aid for private storage may be granted to respond to a par ticularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
In the light of the market disturbances which emerged as a consequence of the Covid -19 pandemic, 
Private Storage Aid was granted  for fresh and chilled meat of bovine animals aged eight months or 
more, between May and July 2020 (storage periods elapsed in November  2020).  
Exceptional market support measures  
The Commission may adopt exceptional measures against market disturbance caus ed 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.  
4.3.2.15   Pig meat  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
Exceptional market support measures  
The Commission may adopt exceptional support m easures 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 . 
4.3.2.16   Eggs and poultry meat  
Exceptional market support measures  
The Commission may adopt exceptional support against market disturbance caused by significant 
price rises or falls on internal or external markets or other events and market support measures 
related to animal diseases and loss of consumer confidence due to public, animal or plant health 
risks.  G/SCM/N/372/EU  
- 27 - 
  The Commission granted exceptional support measures for the eggs and poultry meat sectors which 
had been heavily affected by the outbreaks of highly pathogen ic avian influenza of various subtypes:  
- To France in 20177 and 20188 
- To Italy in 20189,10 
- To Poland in 201810 
- To Italy in 201911 
4.3.2.17   Bee-keeping/apiculture  
Special provisions for the apiculture sector  
With a view to improving general conditions for the production and marketing of apiculture products, 
Member States may draw up a national programme for a period of three years ("Bee keeping 
Programme") . The measures which may be included in the programme a re 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 p roduct quality with a view to exploiting the potential of products on 
the market.  
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 Member States.  
4.3.3 . Direct payments  
 
The support schemes represented in this section 4.3.3 of this notification find their legal basis in 
Regulation (EU) No 1307/2013 of the European Parliament and of the Council establishing rules for 
direct payments to farmers under support schemes within t he framework of the common agricultural 
policy and repealing Council Regulation (EC) 637/2008 and Council Regulation (EC) No 73/2009.  
The level of direct aids for the period covered by this notification is as follows:  
 
7 Commission Implementing Regulation (EU) 2017/295 of 20 February 2017 on exceptional market 
support measures for the poultry meat sector in France, OJ L 43, 21.2.2017, p. 196 -204. 
8 Commission Implementing Regulation (EU) 2018/252 of 19 February 2018 on exceptional market 
support measures for the poultry sector in France, OJ L 46, 20.2.2018, p. 1 -8. 
9 Commission Implementing Regulation (EU) 2018/1506 of 10 October 2018 on exceptio nal market 
support measures for the eggs and poultrymeat sectors in Italy, OJ L 255, 11.10.2018, p. 1 -6. 
10 Commission Implementing Regulation (EU) 2018/1507 of 10 October 2018 on exceptional market 
support measures for the eggs and poultrymeat sectors in P oland, OJ L 255, 11.10.2018, p. 7 -11. 
11 Commission Implementing Regulation (EU) 2019/1323 of 2 August 2019 on exceptional market 
support measures for the eggs and poultrymeat sectors in Italy, OJ L 206, 6.8.2019, p. 12 –17. G/SCM/N/372/EU  
- 28 - 
  Direct Payments (EAGF financial year - execution of payment appropriations), 
EUR million   
 2018  2019  2020  
Million EUR  Decoupled  Coupled  Decoupled  Coupled  Decoupled  Coupled  
SAPS (Single Area Payment Scheme)  4,177.3   4,299.2   4,356.5   
Redistributive Payment  1,650.8   1,654.1   1,685.9   
BPS (Basic Payment Scheme)  17,300.8   17,074.9   17 098.0   
Payment for agricultural practices beneficial for 
the climate and the environment  11,774.6   11,750.9   11,860.5   
Payment for farmers in areas with natural 
constraints  4.9  4.8  4.9  
Payment for young farmers  381.6   542.4   585.0   
Cotton   243.7   245.0   245.0  
POSEI and Aegean islands   438.8   437.1   437.4  
Voluntary Coupled Support   4,033.2   3,990.0   4,057.4  
Small Farmers Scheme1 1,019.9  15.7 884.8  12.6 786.1  10.9 
Other products / measures2 14.7 -1.3 2.33 -0.55 -11.6 -6.8 
Reimbursement of financial discipline3 390.8  50.9 388.0  50.2 408.7  53.8 
Total  36,715.5  4,781  36,601.4  4,734.4  36,774.0  4,797.7  
Total direct payments  41,496.5  41,335.7  41,571.7  
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, sp ecific support, suckler 
cow, sheep meat and goat meat and SPS (Single Payment Scheme).  
3 The amount of reimbursement is considered decoupled/coupled with the same proportion as the rest 
of the direct payments, which might mean overestimation of the coupled  component.  
 
 
4.3.3   Structure of direct payments and general conditions  
Direct payments are available to active farmers as defined in Articles 4(1)(a) and 9 of Regulation 
(EU) No 1307/2013 . Decoupled payments are granted on the basis of eligible hectares, irrespective 
of actual production on that area . It is sufficient to main tain the area in a state suitable for grazing 
or cultivation . Coupled payment support is granted on the basis of eligible units (hectares or 
animals).  
Generally, direct payments are not granted to a farmer if the total amount due or the area of land 
eligib le for payment is too small . These so -called "minimum requirements" vary from country to 
country as it is set by national administrations, but it is generally between EUR 100 and EUR 500, 
or 0.3 ha to 5 ha, per farm, per year.  
Decoupled direct payments are granted to farmers in the form of a basic income support based on 
the number of agricultural hectares . There is a Basic Payment Scheme (BPS) or Single Area 
Payment Scheme (SAPS) (see further section 4.3.3.1) complemented by a series of other 
decoupled support schemes targeting specific objectives or types of farmers:  
• a 'green' direct payment for agricultural  practices beneficial for the climate and the 
environment (see further section 4.3.3.2.2).  
• a payment to young farmers (YFP)12 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 payment13 to provide additional  support to small and 
middle -size farms : Member states may allocate up to 30 % of their total direct payment 
 
12 More detailed information on th e 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).  
13 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).  G/SCM/N/372/EU  
- 29 - 
  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) .14 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 annual payment based on fixed areas and yields or on a fixed number of 
animals and shall respect financial ceilings to be determined by Member States for each measure 
and notified to the Commission . Unlike for decoupled payments, eligibility to the " basic payment" 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 further 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) wa s granted in 2013.  
The overall amount of direct payments to farmers in any Member State is limited each year by the 
size of that country's annual allocation (or "financial envelope") from the EU budget . National 
authorities can decide on the percentage the y 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 prov ides 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 Comm ission, 
to fill the gap by paying farmers national support in the form of Complementary National Direct 
Payments  (CNDPs, commonly known as 'top -ups').  
National envelopes  
Direct payments are based on global national envelopes set in Annex II of 
Regulation  (EU) No 1307/2013 (DP regulation) and 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 deve lopment 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 
 
14 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/372/EU  
- 30 - 
  ceilings for the various direct paym ent schemes . Payment related to claim year N are paid in financial 
year N+1 . Amounts are in EUR 1000. 
Member State  2015  2016  2017  2018  2019  2020  
Belgium  523,658  509,773  502,095  488,964  481,857  505,266  
Bulgaria  721,251  792,449  793,226  794,759  796,292  796,292  
Czech Republic  844,854  844,041  843,200  861,708  861,698  872,809  
Denmark  870,751  852,682  834,791  826,774  818,757  880,384  
Germany  4,912,772  4,880,476  4,848,079  4,820,322  4,792,567  5,018,395  
Estonia  114,378  114,562  123,704  133,935  143,966  169,366  
Ireland  1,215,003  1,213,470  1,211,899  1,211,482  1,211,066  1,211,066  
Greece  1,921,966  1,899,160  1,876,329  1,855,473  1,834,618  1,931,177  
Spain  4,842,658  4,851,682  4,866,665  4,880,049  4,893,433  4,893,433  
France  7,302,140  7,270,670  7,239,017  7,214,279  7,189,541  7,437,200  
Croatia  183,735  202,865  241,125  279,385  317,645  306,080  
Italy 3,902,039  3,850,805  3,799,540  3,751,937  3,704,337  3,704,337  
Cyprus  50,784  50,225  49,666  49,155  48,643  48,643  
Latvia  181,044  205,764  230,431  255,292  280,154  302,754  
Lithuania  417,890  442,510  467,070  492,049  517,028  517,028  
Luxembourg  33,604  33,546  33,487  33,460  33,432  33,432  
Hungary  1,345,746  1,344,461  1,343,134  1,343,010  1,342,867  1,269,158  
Malta  5,241  5,241  5,242  5,243  5,244  4,690  
Netherlands  749,315  736,840  724,362  712,616  700,870  732,370  
Austria  693,065  692,421  691,754  691,746  691,738  691,738  
Poland  3,378,604  3,395,300  3,411,854  3,431,236  3,450,512  3,061,518  
Portugal  565,816  573,954  582,057  590,706  599,355  599,355  
Romania  1,599,993  1,772,469  1,801,335  1,872,821  1,903,195  1,903,195  
Slovenia  137,987  136,997  136,003  135,141  134,278  134,278  
Slovakia  438,299  441,478  444,636  448,155  451,659  394,385  
Finland  523,333  523,422  523,493  524,062  524,631  524,631  
Sweden  696,890  697,295  697,678  698,723  699,768  699,768  
United Kingdom  3,173,324  3,179,880  3,186,319  3,195,781  3,205,243  3,591,683  
 
 
4.3.3.1   Basic payment  
According to Article 1(b)(i) of Regulation (EU) No 1307/2013, the basic payment is granted either 
in the form of a  basic payment scheme (BPS) or as a transitional simplified scheme, the Single Area 
Payment Scheme (SAPS) . Eligibility for the basic payment is a pre -condition to receive other 
decoupled direct payments.  
BPS is granted on the basis of annual activation of payment entitlements with eligible hectares . 
Payment entitlements were allocated to 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 SAPS is a decou pled 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 site: 
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 rele vant Member State, including the compulsory 30 % component of the greening payment.  G/SCM/N/372/EU  
- 31 - 
  4.3.3.2   Greening and Cross Compliance  
4.3.3.2.1   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 suppor t is 
reduced for farmers not respecting these basic rules in proportion of the severity, extent, and/or 
permanence of the determined infringement.  
The 2013 CAP reform provides for exemption from the Cross Compliance system for farmers 
participating in the Small Farmers Scheme . While these farmers need to respect the directives and 
regulations of the sectorial legislation, they are exempted from reductions of CAP payments under 
Cross Compliance . This change represents a simplification for these farmers and national 
administrations.  
4.3.3.2.2   Green Direct Payment  
The objective of the Green D irect P ayment is to enhance the environmental performance of the CAP 
by complementing cross -compliance and second pillar agr o-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 diversifyi ng crops, maintaining permanent grassland and dedicating 5 % of arable 
land to ecologically beneficial elements ("ecological focus areas") . Thirty per cent  of the total direct 
payments national allocations are dedicated to this payment.  
As this is a mandato ry scheme, farmers who break greening rules will be paid less . Such reductions 
reflect the number of hectares identified as non -compliant, taking into account the specific nature 
of the requirement concerned . As of 2017, reductions can be accompanied by ad ministrative 
penalties . In line with the proportionality principle, the size of such penalties depends on the severity 
and scope of non -compliance.  
4.3.3.3   Coupled Support  
4.3.3.3.1   Voluntary Coupled Support  
During the period 2015 -2020, Member States may grant coupled suppo rt to farmers operating in 
the following sectors and productions : cereals, oilseeds, protein crops, grain legumes, flax, hemp, 
rice, nuts, potato starch, milk and milk products, seeds, sheep meat and goatmeat, beef and veal, 
olive oil, silkworms, dried fodder, hops, sugar beet, cane and chicory, fruit and vegetables and short 
rotation coppice.  
Coupled support may only be granted to sectors or regions of a Member State where specific types 
of farming or specific agricultural sectors that are particularly imp ortant 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 determined by Member States for each measure 
and notified to the Commission . In order to finance the coupled support, Member Sta tes may decide 
to use up to 8 % (13% under specific conditions or more upon approval by the Commission) of their 
annual national ceiling for direct payments . Those percentages may be further increased by up to 
two percentage points for those Member States w hich decide to use at least 2 % of their annual 
national ceiling for direct payments to support production of protein crops under this scheme . 
Member States may review their support decisions if needed, but these reviews (if any) shall also 
comply with the same pre -conditions and limits . On the basis of the Member States' decisions, the 
Commission shall fix corresponding annual financial ceilings at Member State level, as well as support 
measure level.  G/SCM/N/372/EU  
- 32 - 
   Supported hectares/heads  Total amount paid (in M EUR)*  
Application  year 2018  2019  2018  2019  
Beef and veal  16.656.592  16.486.876  1.612,7  1.621,1  
Cereals  1.568.182  1.423.493  93,5 109,6  
Flax 4.966  4.219  0,5 0,5 
Fruit and vegetables  447.352  455.240  167,0  167,4  
Grain legumes  492.684  496.345  16,1 16,4 
Hemp  19.732  17.075  1,7 1,7 
Hops 7.802  7.903  4,4 4,4 
Milk and milk products  8.747.242  12.503.556  847,4  857,5  
Nuts 472.098  482.876  16,3 16,8 
Oilseeds  49.817  24.543  1,0 1,0 
Olive oil  581.030  638.716  61,7 43,2 
Protein crops  4.387.185  4.378.507  421,1  437,9  
Rice 388.992  394.837  55,0 66,3 
Seeds  33.858  33.099  5,1 5,0 
Sheepmeat and goatmeat  32.773.924  32.589.937  503,9  516,5  
Silkworms  1.293  1.642  0,4 0,2 
Starch potato  69.865  68.516  16,7 17,0 
Sugar beet  444.978  430.962  168,7  177,6  
* Total EU decided by Member States (i.e. actual payments to farmers may be lower due to reduction 
and sanctions applied)  
 
4.3.3.3.2   Cotton  
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 merchant able quality . The obligation to maintain coupled support in the 
cotton sector results from Protocol 4 annexed to the Act of Accession of Greece and the payment is 
implemented in accordance with the objectives of that Protocol.  
The payments are limited by b ase areas and fixed yields and reference amounts by Member State 
are established to calculate the specific amounts to be paid per hectare of eligible area . If the eligible 
cotton area in a given Member State and in a given year exceeds the base area, aid i s reduced 
proportionally to the overshot.  
Cotton coupled support - Base areas, fixed yields and reference amounts  
 Base area  Fixed yield  Aid per ha (€/t)*  
Bulgaria  3,342 ha  1.2 tonne/ha  EUR 584.88 (2015) EUR 649.45 (2016 onwards)  
Greece  250,000 ha  3.2 tonne/ha  EUR 234.18 (2015 onwards)  
Spain  48,000 ha  3.5 tonne/ha  EUR 362.15 (2015 onwards)  
Portugal  360 ha  2.2 tonne/ha  EUR 228.000 (2015 onwards)  
* Farmers who are members of an approved inter -branch organisation are granted an aid per eligible 
hectare increasing the amount of aid per hectare mentioned above by an amount of EUR 2.  
Source:  Regulation (EU) No. 1307/2013, Article 58.  
4.3.4   POSEI 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 re gions that severely handicap their 
activities . Therefore, specific measures on agriculture are applied to remedy the difficulties caused 
by these handicaps referred to in Article 349 of the Treaty.  G/SCM/N/372/EU  
- 33 - 
  4.4  The European Agricultural Fund for Rural Development ("Sec ond Pillar" of the CAP)  
1. Title of the programme  
Common Agricultural Policy : Rural Development ("Second Pillar").  
2. Period covered by the notification  
1 January  2019 - 31 December  2020. 
3. Policy objective and/or purpose of the programme  
Contribute to the achievement of the Common Agricultural Policy's objectives as laid down in the 
Treaty on the Functioning of the European Union, in particular Title III of Part III . Rural development 
policy should also take into account the general objectives for economic and social cohesion policy 
set out in the Treaty and contribute to their achievement, while integrating other major policy 
priorities as spelled out in the conclusions of the Lisbon and Göteborg European Councils for 
competitiveness and sustainable develop ment.  
4. Background and authority for the programme  
As from 1.1.2014 Regulation (EU) No 1305/2013 of the European Parliament and the Council of 
17 December  2013 on support for rural development by the European Agricultural Fund for Rural 
Development (EAFRD) a nd replacing Council Regulation (EC) No 1698/2005 . Member States shall 
designate the authorities responsible for the managing, implementation and control of the 
programmes.  
5. Form of assistance granted - Grants from EU budget  
Rural development programmes are co -financed by Member States and the EU budget . Support 
might take the form of grants as well as financial instruments.  
6. To whom and how the assistance is provided  
The aid is co -financed with the Member States and implemented through 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 expenditure under the programme  
The table below shows  the amounts involved (payment appropriations in EUR  million s for each 
financial instrument).  
Expenditure (payments) for Rural Development (million EUR)  
Financial instrument  2018  2019  2020  
EAFRD 2014-2020 12,173.5  13,840.0 14,569.5 
EAFRD 2007-2013 271.9  257.7 0.2 
EAGGF Guarantee Section completion 
of programs 2000 -2006 0.0   
EAGGF Guidance Section completion 
of earlier programs  0.0 72.1 0.0 
Transitional instrument for New 
Member States Completion of 
2004-2006 programs  0.0   
Other  0.0   
Total  12,445.5  14,169.8 14,569.6 
 
 
8. Duration of the program  
2014 - 2020.  G/SCM/N/372/EU  
- 34 - 
  9. Trade effects  
No, or at most minimal, trade distorting effects.  
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 Env ironmental 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 pote ntial. 
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 ne ed. 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 sustai nability 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 the hands of 
individual Member States and regions due to the principle of shared management . The policy is 
funded partly from the central EU budget and partly from individual Member State s' national or 
regional budgets.  
The essential rules governing rural development policy for the period 2014 to 2020, as well as the 
policy measures available to Member States and regions, are set out in Council Regulation 
(EU) No 1305/2013 of 17  December  2013 on support for rural development by the European 
Agricultural Fund for Rural Development (EAFRD) and 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 innovation in agriculture, forestry and rural areas;  
2. Enhancing the viability / competitiveness of all types of agriculture, and promoting 
innovative farm technologies and sustainable forest  management;  
3. Promoting food chain organisation, animal welfare and risk management in agriculture;  
4. Restoring, preserving and enhancing ecosystems related to agriculture and forestry;  
5. Promoting resource efficiency and supporting the shift toward a low -carbo n and 
climate - resilient economy in the agriculture, food and forestry sectors;  
6. Promoting social inclusion, poverty reduction and economic development in rural areas.  
4.5.2   Rural development measures  
• Knowledge transfer and information actions . Aims at the diffus ion 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 incl ude courses of G/SCM/N/372/EU  
- 35 - 
  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/fores t exchanges and 
visits.  
• Advisory services, farm management and farm 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 improv ement 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 up . 
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 those recognized by the Member 
States which comply with precise criteria or voluntary agricultural product certification 
schemes recognised by Member States as mee ting 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 paym ent 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.  
• Suppo rting groups of producers for information and promotion activities  in the 
internal market for products under food quality schemes are also eligible . Support 
concerns products covered by the support of the quality schemes mentioned above . It 
shall be limite d to a maximum of 70 % of the costs.  
• Investments in physical assets  is a support scheme to be carried out in order to  
improve the economic and environmental performance of agricultural holdings and rural 
enterprises, improve the efficiency of the agricultural products marketing and processing 
sector . The support contributes to the development of infrastructure needed for the 
development of agriculture and forestry and support non -productive investments 
necessary to achieve environmental aims . Investment support is one of main instruments 
of the EU's rural development policy and has been used by all Member States in the 
programming period 2007 -2013. Investment measures have been highly relevant in 
meeting the needs of agriculture via improving competitiveness and contributing to the 
maintenance of sustainable agricultural structures, and have served multiple economic, 
social and environmental priorities at once.  
• Restoring of agricultural production potential . In order to prevent the negative 
consequences of natural disasters, adverse climatic events and catastrophic events, 
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.  
• Business start -up support for young farmers . Support is granted to persons who are 
less than 40 years of ag e and are setting up for the first time on an agricultural holding 
as head of the holding . They must possess adequate occupational skills and competence 
and submit a business plan for the development of their farming activities . The support 
shall be grante d up to the maximum amount laid down in the Annex II of Regulation (EU) 
No 1305/2013.  
• Business start -up support for non -agricultural activities in rural areas . Support is 
provided for the start of a new non -agricultural activity in rural area . The support shall be 
granted up to the maximum amount laid down in the Annex II of Regulation G/SCM/N/372/EU  
- 36 - 
  (EU) No 1305/2013 per person who submits a business plan for the development of their 
farming activities.  
• Business start -up for the development of small farms . Support is pro vided 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 fo r 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 relating to Natura 2000 sites and other pl aces 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 investme nts 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 most crucial 
environmental, societal and e conomic targets of the rural development policy . Forests 
have an important role in management of natural resources Forests provide key 
ecosystem services such as sequestering carbon, protecting soil and water, preserving 
biodiversity, supplying energy and raw material for a low carbon economy, while allowing 
recreational activities . Therefore, the support aims at establishing forests and 
agro-forestry systems, prevention and restoration of damaged forests . Moreover, the 
support covers investments improving the resilience and environmental value of forests 
and investments in forestry technologies and in processing, mobilising and marketing of 
forest products . A separate support scheme is dedicated to operations of 
forest - environmental and climate services and forest conservation.  
• Supporting setting up of producer groups and organisations . Support is granted in 
order to facilitate the setting up and administrative operation of producer groups and 
organisation for the purposes of firstly adapting the production  and output of producers 
who are members of such groups to market requirements . Secondly, it is granted for the 
purpose of jointly placing goods on the market, including preparation for sale, 
centralisation of sales and supply to bulk buyers and, thirdly, for establishing common 
rules on production information, with particular regard to harvesting and availability . The 
support can be granted as a flat -rate aid in annual instalments for the first five years 
following the date on which the producer group or o rganisation 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 available 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 agricultural practices that make a positive contribution to the environment 
and climate . The support under this measure can be granted to farmers, groups of farmers 
or groups of farmers and other land managers and in justified cases also to other land 
managers or their groups who undertake voluntary agri -environment -climate 
commitments on agricultural land . Agri-environment -climate payments cover only those 
commitments going beyond the relevant mandatory standards established pursuant to 
Chapter I of Title VI of Regulation (EU) No 1306/2013,  the relevant criteria and minimum 
activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation 
(EU) No 1307/2013, and relevant minimum requirements for fertiliser and plant protection 
product use as well as other relevan t mandatory requirements established by national law 
and identified in the programme . The commitments are undertaken as a general rule for G/SCM/N/372/EU  
- 37 - 
  a period of five to seven years . If justified by achieving or maintaining environmental 
benefits, a longer period can  be determined . After termination of the initial period 
commitments, their annual extension is possible . The payments are granted annually and 
cover all or part of the additional costs and income foregone resulting from the 
commitments made . Where necessar y, 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 ba sis 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 con version to and/or maintenance of organic farming 
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 measure is to be granted to beneficiaries of this measure who suffer 
from particular disadvantages due to specific mandatory requirements that go beyond 
certain baseline level in the areas concerned resulting fr om the implementation of Birds 
and Habitats Directives and Water Framework Directive (WFD) when compared to the 
situation of farmers and foresters in other areas not concerned by these disadvantages . 
The compensation under this measure is to help address t he 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 t he 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 far mers 
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 country side 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 b e 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 
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 t o 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 operation al 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 among small 
operators in organising joint work processes and sharing facilities and resources, G/SCM/N/372/EU  
- 38 - 
  co-operation among supply chain actors for the establishment and development of short 
supply chains and local markets, joint action undertaken with a view to mitigating or 
adapting to climate change as well as environmental projects and practices, horizontal 
and vertical co -operation among supply chain actors in the sustainable provision of 
biomass, public -private partnerships/non -LEADER local development strategies, drawing 
up of forest management pl ans, 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 to 
make new things happen . It must not be used to support joint activities which are already 
taking place, but it can support existing entities embarking on new projects.  
Annex II to Regulation (EU) 1305/2013 does not specify support rates for the 
"Co-operation" measure . Therefore, t he 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 
different rural development measure  applies (pursuant to Art. 35(6) of Regulation 
(EU) 1305/2013).  
• The Risk Management Measure  has been newly introduced under the second pillar of 
the CAP (Rural Development) for the period 2014 -2020. This 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 h usbandry 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 farmers with up to 70 % 
of their inco me 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 contribut ions to the compensatory amounts paid in case of crisis 
and contribute to the interest on commercial loans taken out by the mutual fund for the 
purpose of paying the compensatory amounts to farmers . No contribution is made to the 
initial capital stock of t he mutual funds.  
• Finally, LEADER  is an integrated territorial development tool on sub -regional ("local") 
level. It directly contributes to the balanced territorial development of rural areas, which 
is one of the overall objectives of the rural development policy . The implementation of 
LEADER Local Development Strategies (LDS) can reinforce territorial coherence and 
contribute to the long -term sustainable development of an area . It can also be an 
appropriate tool to address rural-urban relationships . The support granted under the 
LEADER cover preparatory support with a view to preparing and implementing a 
community -led local development strategy ; implementation of the community -led local 
development strategy ; the local action group's co -operation activities ; running costs 
linked to the management of the implementation of the community -led local development 
strategy and the community -led local development  
• a new extraordinary Measure 21 was created in 2020 under the EAFRD programming 
allowing:  
Emergency assistan ce to farmers and SMEs particularly affected by the COVID -19 crisis, 
aiming at ensuring continuity of their business activity;  
Support farmers, as well as to SMEs active in processing, marketing or development of 
agricultural products covered by Annex I to  the TFEU or cotton, except fishery products;  
Lump sum payment to be paid by 3 1 December  2021, based on applications for support 
approved by the competent authority by 3 0 June 2021. The subsequent reimbursement by 
the Commission shall be made (7  thousand  per farmer or 50  thousand  per SME).  
 G/SCM/N/372/EU  
- 39 - 
  4.6  IPARD II  
1. Title of the programme  
IPARD II, the Rural Development programme under the Instrument for Pre -cession Assistance.  
2. Period covered by notification  
1 January  2017-31 December  2018. 
3. Policy objective and/or purpose of the programme  
The objective of IPARD is to provide assistance for the progressive alignment of agricultural sector 
in pre -accession countries with Union standards, while pursuing balanced territorial development of 
rural areas a nd increasing food -safety of those countries as well as their ability to cope with 
competitive pressure . The investment support is to be channelled through management and control 
systems which are compliant with good governance standards of a modern public  administration.  
4. Background and authority for the programme  
Legal basis : Regulation (EU) No 231/2014 of the European Parliament and of the Council of 
11 March  2014 establishing an Instrument for Pre -accession Assistance (IPA II).  
5. Form of assistance granted  - Grants from EU budget  
IPARD multi -annual programmes co -financed by the EU budget and the IPARD beneficiary countries.  
6. To whom and how the assistance is provided  
The aid is co -financed by the European Commission together with the IPARD beneficiary countr ies 
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 indiv idual 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  2018  2019  2020  
IPARD  98.3 74.0 77.0 
 
 
8. Duration of the program  
2014 - 2020 for IPARD II.  
9. Trade effects  
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 a rea, 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 G/SCM/N/372/EU  
- 40 - 
  EU-funded rural development programmes . During 2013, the countries eli gible for IPARD were 
Turkey, 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 be en adopted for Albania, North Macedonia, Montenegro, Serbia and Turkey . Entrustment for 
budget implementation tasks has been granted in 2017 under IPARD II to Montenegro,  
North Macedonia, in 2018 to Albania and Serbia, in 2019 to Turkey and in 2020 to Mont enegro and 
Serbia.  
5  EUROPEAN FISHERIES FUND (EFF) AND EUROPEAN MARITIME AND FISHERIES FUND 
(EMFF)  
5.1  EU Funds  
1. Title of the measure  
The European Maritime and Fisheries Fund15 (EMFF)  
2. Period covered by the notification  
2014 - 2020.  
3. Policy objectives and/ or purpose  
The EMFF promotes sustainable fisheries and aquaculture and fosters the implementation of 
measures that are subject to new rules to ensure better compliance of Member States and operators 
with the objectives, rules and targets of the reformed Co mmon Fisheries Policy (CFP).  
The EMFF includes funding opportunities for the protection of the environment through measures in 
support of fisheries resources management, including maximum sustainable yield (MSY), the 
implementation of the landing obligatio n and of long -term management plans . The EMFF also 
encourages producer organisations to implement the new CFP through new management tools (i.e. 
production and marketing plans).  
In order to increase the number of stocks for which scientific advice is avail able, the budget for data 
collection and scientific advice has been substantially increased compared to the previous 
programming period . Last but not least, the budget for fisheries control has also been considerably 
enlarged to ensure better compliance wi th CFP rules .16 
The EMFF also supports the Integrated Maritime Policy (IMP), facilitating coordination across borders 
and sectors to bring cost -effective synergies and money savings in managing maritime -related 
activities . Funding focuses mainly on initiat ives developed in various sectors across the board like 
maritime spatial planning, integrated maritime surveillance and marine knowledge.  
The EMFF's key objectives are:  
• To help fisher to adapt to new sustainable fishing practices, to diversify their source s of 
income and to make the sector generally more competitive . The European Maritime and 
Fisheries Fund facilitates the Common Fisheries Policy and its objectives of a socially and 
economically sustainable future for the sector.  
• The EMFF also invests in the competitiveness of the fisheries, aquaculture and processing 
sectors . It focuses mainly on supporting innovation in the development or introduction of 
new or substantially improved products, pieces of equipment, processes, tech niques, 
management and organisation systems . Marketing and production plans and the 
 
15 Regulation (EU) No 508/2014 of the European Parliament and of the Council of 15 May 2014 on the 
European Maritime and Fisheries Fund.  
16 Out of a total amount of € 5.75 billion for the period 2014 – 2020 of the EMFF, € 1. 1 billion are 
dedicated to control and data -collection measures.  G/SCM/N/372/EU  
- 41 - 
  development of new markets, together with diversification and complementary sources of 
income, are promoted as ways to increase income.  
• The EMFF also plays a significant ro le in employment . It supports the creation of jobs in 
fishing, inland fishing and aquaculture and to maintain jobs by supporting blue and green 
growth, complementary activities to fishing, inland fishing and aquaculture.  
• Finally, the EMFF is building on the positive results from supporting the sustainable 
development of fisheries areas under the EFF . The EMFF sustains the implementation of 
local development strategies in fisheries and aquaculture areas intended to add value, 
create jobs and at tract young people . It also promotes innovation at all stages of the 
fisheries and aquaculture supply chain and/or supports diversification inside commercial 
fishing . Such strategies are important not only for social but also for territorial cohesion.  
The fishery sector has been hit hard by disruption to the market caused by the COVID -19 outbreak . 
To tackle this unprecedented situation, the Regulation amending the European Maritime Fisheries 
Fund (EMFF) was adopted on 2 3 April 2020. Through this amendment, the scope of the EMFF was 
extended to allow compensation for economic losses caused by the public health crisis, a more 
flexible allocation of financial resources within the operational programme of each Member State 
and a simplified procedure for amending  operational programmes to introduce the new measures 
quickly . Such support was granted until 3 1 December  2020 to all actors involved in the fishery and 
aquaculture sector, from the processing enterprises to fishers on foot . These measures help 
protecting  thousand s of jobs in the EU 's coastal regions and maintain food security.  
4.  Background and authority  
As regards the EMFF, the Treaty of the Functioning of the European Union, and in particular 
Articles  42, 43(2), 91(1), 100(2), 173(3), 175, 188, 192(1), 194(2), 195(2) and 349 thereof are 
relevant . In accordance with the principles of shared management, Member States and the 
Commission are responsible for the management and control of programmes . Member States should 
have the primary responsibility, throug h their management and control systems, for the 
implementation and control of the operations in programmes.  
5. The form of public support  
The EMFF is managed jointly by the European Commission and national authorities (through shared 
management) and direct ly 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 grants support 
through call for proposals and calls for tender.  
6. To whom and how the public support is provided  
Under the shared managemen t part of the EMFF, beneficiaries are selected on the basis of selection 
criteria set by the Managing Authority . Beneficiaries can include fishermen, fishermen organisations, 
firms in the fisheries, aquaculture, and fish processing sectors, SMEs, producer organisations, 
professional organisations, fisheries local actions groups (FLAGs) and cooperatives.  
Under EMFF rules, access to funds is conditional upon the compliance by Member States and 
operators with the objectives, rules and targets of the CFP, in pa rticular the control obligations, the 
rules against illegal, unregulated and unreported fishing and the data collection.  
Member States have to publish, on a single website or portal, a list of operations supported under 
the EMFF along with the totals of fi nancial support . These lists must be updated at least every six 
months . This is particularly important in the prevention of funding of beneficiaries involved in illegal 
fishing activities.  G/SCM/N/372/EU  
- 42 - 
  7. Total budget of the programme  
The total financial envelop of the EMFF is EUR 6.4 billion  (EUR 5.75 billion  in shared management 
and EUR 0.65 billion  in direct management) . By the end of 2019, EUR 3.21 billion  of EMFF funding 
had been committed to operations in the Member States .17 
EMFF  allocation by Member State 2014 -2020 (Euros)  
AT 6,965,000.00  
BE 41,746,051.00  
BG 88,066,622.00  
CY 39,715,209.00  
CZ 31,108,015.00  
DK 208,355,420.00  
DE 219,596,276.00  
EE 100,970,418.00  
ES 1,161,620,889.00  
FI 74,393,168.00  
FR 587,980,173.00  
GR 388,777,914.00  
HR 252,643,138.00  
HU 39,096,293.00  
IE 147,601,979.00  
IT 537,262,559.00  
LT 63,432,222.00  
LV 139,833,742.00  
MT 22,627,422.00  
NL 101,523,244.00  
PL 531,219,456.00  
PT 392,485,464.00  
RO 168,421,371.00  
SE 120,156,004.00  
SI 24,809,114.00  
SK 15,785,000.00  
UK 243,139,437.00  
EU27 (*)  5,749,331,600.00  
* Luxembourg is not a recipient of EMFF funds.  
A distinction has to  be made between funds which are committed to be spent in selected projects 
and funds that are actually spent in these projects and claimed by the relevant Member State to the 
Commission for payment . As stated above, Member 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 programme  
The EMFF programming period is from 2014 to 2020 (3 1 December  2023 by v irtue of the new 
n+3 rule).  
9. Trade effects  
Given that the EMFF's main objective is to support environmentally sustainable, resource -efficient, 
competitive fisheries which 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 aquaculture products  and it is a major importer of these 
products from the rest of the world ; hence, the structural support granted under EU funds has very 
limited influence on this situation.  
 
17 EUROPEAN COMMISSION – Directorate -General for Maritime Affairs and Fisheries (2020): FAME SU, 
EMFF implementation report 2019, Brussel  G/SCM/N/372/EU  
- 43 - 
  Finally, under EU State aid legislation, aid for export -related activities, 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 with the int ernal market, are not permitted.  
6  PROGRAMMES IN THE FIELD OF RESEARCH  
6.1  Framework programmes  
1. Title of the subsidy programme  
- the Horizon 2020 EU Framework Programme for Research and Innovation (2014 to 
2020), and  
- the Research and Training Programme of the European Atomic Energy Community 
(2014 -2018) complementing the Horizon 2020 Framework Programme for Research and 
Innovation.  
The arrangements for implementing these framework programmes are essentially the same and are 
therefore described together in the following paragraphs.  
2. Period covered  
2019 and 2020 . 
3. Policy objective  
Financial participation in EU Research and Technological Development (RTD) activities during the 
period 2017 and 2018 is provided through the above -mentioned framewo rk programmes.  
Horizon 2020 focuses on three priorities, namely generating excellent science in order to strengthen 
the Union's world -class excellence in science, fostering industrial leadership to support business, 
including micro, small and medium -sized enterprises (SMEs) and innovation, and tackling societal 
challenges, in order to respond directly to the challenges identified in the Europe  2020 strategy by 
supporting activities covering the entire spectrum from research to market.  
These objectives and a ctivities are implemented through the Decision establishing a specific 
programme implementing Horizon 2020 of 3 December  2013.18 
The framework programmes of the European Atomic Energy Community have two main parts : 
nuclear fission and controlled thermonucl ear fusion (excluded) . The objectives and activities to be 
undertaken are set out in the decisions adopting these framework programmes 2013/1314 of 
16 December  2013.  
The activities under these framework programmes relate to fundamental research, industrial  
research or pre -competitive development . Financing of product development is excluded.  
The implementation of Horizon 2020 and the Euratom Programme is aimed to respond to the 
evolving opportunities and needs of science and technology, industry, policies a nd society.  
4. Background and authority for the subsidy  
The legal bases of these programmes are, respectively, Article 166 of the EC Treaty and Article 7 of 
the Treaty establishing the European Atomic Energy Community.  
The legal framework of the framework programmes consists of a number of main legal and 
implementing acts:  
 
18 OJ L 347, 20.12.2013, p. 965.  G/SCM/N/372/EU  
- 44 - 
  A Decision or Regulation by the Council on the "Framework Programme":  
- EU: Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 
11 December  2013 establishing Hor izon 2020 - the Framework Programme for Research 
and Innovation (2014 -2020), OJ L347, 2 0 December  2013, page 105;  
- Euratom : Council Regulation (EURATOM) No 1314/2013 of 1 6 December  2013 on the 
Research and Training Programme of the European Atomic Energy Community 
(2014  - 2018) complementing the Horizon 2020 Framework Programme for Research 
and Innovation, OJ L 347, 20.12.2013, p. 948.  
Each framework programme is further implemented by Decisions by the Council adopting "Specific 
Programmes":  
- EU: Council Decision of 3 December  2013 establishing the specific programme 
implementing Horizon 2020 - the Framework Programme for Research and Innovation 
(2014  - 2020) and repealing Decisions 2006/971/EC, 2006/972/EC, 2006/973/EC, 
2006/974/EC and 2006/975/EC,  OJ L 347, 20.12.2013, p. 965.  
- Euratom : Specific Programmes "Euratom" and "Direct Actions by the Joint Research 
Centre" - Council Decisions 2012/94 and 2012/95/Euratom of 1 9 December  2011, p.  33 
and 40;  
Rules governing the implementation of the activities are contained in the "Rules for Participation", a 
regulation adopted by the European Parliament and the Council (EC) and by the Council alone 
(Euratom):  
- EU: Regulation (EU) No 1290/2013 of the European Parliament and of the Council 
of 11 Decem ber 2013 laying down rules for participation and dissemination in 
"Horizon  2020-the Framework Programme for research and Innovation (2014  - 2020) 
and repealing Regulation (EC) No 1906/2006, OJ L 347, 20.12.2013, p. 81 ; 
- Euratom : Council Regulation (EURATO M) No 1314/2013 of 1 6 December  2013 on the 
Research and Training Programme of the European Atomic Energy Community 
(2014  - 2018) complementing the Horizon 2020 Framework Programme for Research 
and Innovation . 
Work programmes are adopted specifying the rese arch topics and other conditions for the award of 
grants are adopted, in general, every two years.  
Grant agreements are concluded with the participants in the projects . The various model grant 
agreements, as well as the other documents are available at:  
https://ec.europa.eu/info/funding -tenders/opportunities/portal/screen/how -to-participate/referenc
e-documents  
5. Form of the subsidy  
Support to RTD activities is mainly provided in the form of grants within the meaning of Article 25.3 
of the WTO Agreement on Subsidies and Countervailing Measures.  
6. To whom and how the subsidy is provided  
Research projects are carried out primarily by pa rticipants established within the European Union . 
Legal entities established in a country that has signed an association agreement (associated country) 
may participate in a project and receive EU funding from the Framework Programme on the same 
terms as th ose established in Member States . Legal entities established in other countries may 
receive funding under certain conditions.  
In general, research projects must include the participation of at least three independent legal 
entities each established in a di fferent Member State or associated country.  G/SCM/N/372/EU  
- 45 - 
  The grant is awarded mainly on the basis of the scientific excellence to projects submitted by 
consortia of universities, research organisations and undertakings following, as a general rule, an 
invitation for pr oposals and an evaluation procedure with independent experts and selection 
procedure . The undertakings apply in function of their interest in carrying out a research project on 
a specific research topic in collaboration with other partners.  
The amount of t he grant is typically calculated as a percentage of eligible costs of the project, 
depending on the nature of the activity concerned . Eligible costs are defined in the Rules for 
Participation.  
7. Amount of subsidy  
2019 -2020  Total amounts granted  
(in millions of EUR)  
Horizon 2020 EU Framework programme for Research and Innovation  21,927  
Programme of the European Atomic Energy Community (EURATOM) 
complementing Horizon 2020 (excluding Fusion grants)  213 
Total  22,140  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
A project typically lasts for 3  - 4 years and the EU funding is awarded for this period . Subject to 
delivery of required documents at pre -determined deadlines, payments are released in instalments.  
9. Trade effects of the subsidy  
The Framework Programmes have no direct impact on trade . As a general rule, further work and 
considerable additional financial efforts of the participants are always necessary  for the results of an 
RTD project to lead to a commercially exploitable process or product.  
Furthermore, access to the results must be shared among partners and a more widely dissemination 
of results is required and supported, which serves the public inte rest. One of the main benefits lies 
in establishing links among research community partners within Europe but also with non -EU 
countries.  
The economic impact of industrially oriented programmes can be assessed only several years after 
the completion of the  projects because further substantive investment is required after the end of 
the research projects to develop any commercial applications.  
6.2  Research on Coal and Steel  
The Treaty establishing the European Coal and Steel Community (ECSC) 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 generated by these assets.  
The Research Programme of the Research Fund for Coal and Steel was established by the Council 
Decisions 2003/76/EC, 2003/77/EC, 2003/78/EC of 1 February  2003, and 2008/376/EC of 
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.  
The programme is closely co -ordinated with other activities, carried out either in the Member States 
or existing EU research programmes, such as the Framework Programme of the European 
Community for research, technological development and demon stration activities . In order to 
increase the impact of this programme, the European Commission will encourage and promote 
co-ordination, complementarities and synergy between the different research programmes and 
support the exchange of information betwee n projects financed under this programme and those 
financed under the Research Framework Programme.  G/SCM/N/372/EU  
- 46 - 
  The programme related documents and the information package are available on CORDIS at: 
http://ec.europa.eu/research/industrial_technologies/rfcs_en.html . 
For coal and steel, the Union contributes financially in the following ways : through research, pilot 
and demonstration (RTD) projects, accompanying measures and support and pr eparatory 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 have a sufficient scale for 
use. They should allow the investigation of potent ial 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 stage, and in certain cases to the industrial and/or commercial stage . 
The fina ncial contribution of the Union is up to 50 % of the allowable costs.  
Demonstration project : aim at constructing and/or operating an industrial -scale installation or a 
significant part of an industrial -scale installation . Such projects aim to bring together  all the technical 
and economic data in order to proceed with the industrial and/or commercial exploitation of the 
technology at minimum risk . The financial contribution of the Union is up to 50 % of the allowable 
costs.  
(1) Accompanying measures are design ed to complement and/or co -ordinate research 
activities related to this programme.  
(2) Support measures : this includes the dissemination of research results and the 
promotion of the use of knowledge gained.  
It is worth noting that the results of all RFCS f unded research projects are made public and can be 
acquired against a small fee by any organisation or individual, as provided for under Article 4 of 
Annex III of the model contract . This allows for a wide and non -discriminatory dissemination of the 
resear ch results.  
Total EC support allocated to coal and steel projects in the period 2015 and 2016 are:  
Year  2019 - 2020  
Support in  million s of EUR  82 
7  THE EUROPEAN UNION'S STRUCTURAL ACTIONS  
The Union's structural actions (comprising the Structural Funds and the Cohesion Fund) are intended 
to strengthen the economic and social cohesion of the Union, in particular by reducing disparities 
between the levels of development of the various regions and the backwardness of the 
least-favoured regi ons. 
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 
Development Fund (ERDF), European Social Fund (ESF) and the Cohesion Fun d (CF)19 . 
Based on the principle of 'shared management' between the Union, the Member States 
and the regions, this regulation offers a new programming process as well as new norms 
for financially managing, controlling and evaluating the projects.  
- A regulation for e ach of the sources of financing (ERDF, ESF, CF and the Instrument for 
Pre-Accession Assistance (IPA)).  
 
19 As well as the Europ ean Agricultural Fund for Rural Development (EAFRD) and the European Maritime 
and Fisheries Fund (EMFF), which are not part of this section.  G/SCM/N/372/EU  
- 47 - 
  - A new regulation creating the possibility to create a cross -border authority 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  32,297.00  32,297.00  
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 enterprises . Consequently, as 
stated at the beginning of this docume nt, 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 programme  
European Regional Development Fund (ERDF) . 
2. Period covered by the notification  
2019 - 2020. 
3. Programming period  
The period covered by the notification refers to programming period 2014 -2020.  
4. Legal basis  
Articles 174 and 176 of the TFEU.  
For the programming period 2014 -2020, the legal basis is:  
- Regulation (EC) 1303/2013 of 1 7 December  2013 lay ing 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 Delegated Regulation (EU) No 480/2014 of 3 March  2014 supplementing 
Regulation (EU) No 1303/2013 of th e European Parliament and of the Council 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 laying down general provisions on 
the European Regional Development Fund, the European Social Fund, the Cohesion 
Fund and the European Maritime and Fisheries Fund.  
In 2020, in response to the COVID -19 outbreak, some additional flexibility were provide d under two 
regulations amending Regulation (EC) 1303/2013 and Regulation (EC) No 1301/2013:  G/SCM/N/372/EU  
- 48 - 
  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 508/2 014 as 
regards specific measures to mobilise investments in the healthcare systems of Member 
States and in other sectors of their economies in response to the COVID -19 outbreak 
(Coronavirus Response Investment Initiative)  
 
Regulation (EU) 2020/558 of the E uropean 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 exceptional flexibility for the use of the European Structural and 
Investments Funds in response to the COVID -19 outbreak  
5. Form of assistance granted  
Grants or other forms of support from the Union budget for ERDF resources are mainly used to 
co-finance:  
• productive investment leading to the creation or 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 cap ital in SMEs where 
necessary as a temporary measure to provide an effective response to a public health 
crisis.  
6. Objectives  
Regional policy targets all regions and cities in the European Union in order to support job creation, 
business competitiveness, e conomic 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 research;  
- The digital a genda;  
- Support for small and medium -sized enterprises (SMEs);  
- The low -carbon economy.  
The ERDF resources allocated to these priorities will depend on the category of region.  
In more developed regions, at least 80 % of funds must focus on at least two of  these priorities.  
In transition regions, this focus is for 60 % of the funds.  
It is 50 % in less developed regions.  
Furthermore, some ERDF resources must be channelled specifically towards low -carbon economy 
projects:  
More developed regions : 20%; 
Transition regions : 15%; and 
Less developed regions : 12%. 
7. Eligibility  
The rules on eligibility are determined at the national level, except when there are general rules laid 
down in the applicable EU legislation.  G/SCM/N/372/EU  
- 49 - 
  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 capi ta is between 75 % and 90 % of the average GDP of 
the EU -27; 
c. more developed regions, whose GDP per capita is above 90 % of the average GDP of the 
EU-27. 
8. Principles of intervention  
The principles of intervention are : complementarity, coherence, coordination , conformity and 
additionally, proportionality, equality between men and women and non -discrimination, sustainable 
development and using the funds to focus on the Lisbon strategy priorities.  
9. Budget  
For the period 2014 -2020, economic, social and territor ial cohesion will benefit from 1/3 of the 
EU budget amounting to close to EUR 373 billion  (at current prices).  
10. Financial allocations in commitment appropriations per year in 2014 -2020 
Please note that this data covers Heading 1b of the EU budget (econo mic, social and territorial 
cohesion):  
2014 -2020 (EUR  million , current prices ) 
 TOTAL  
2014  36,196  
2015  60,319  
2016  50,837  
2017  54,086  
2018  55,528  
2019  57,191  
2020  58,586  
Sum:  372,745  
11. Cohesion policy and state aid  
Cohesion Policy provides an integrated, strategic, medium term planning and financial framework to 
address the reduction of regional disparities by promoting development . It does this through 
geographic and financial targeting (concentration), governance processes and eva luation 
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 m ost 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.  
12. Trade effects  
Because t he Funds are designed to alleviate disparities between regions within the Union, and 
because the aid is paid out on a horizontal basis, within eligible regions, it is considered that the 
trade effects are minimal.  
__________