G/SCM/N/315/EU  
 
11 July 2017  
(17-3736) Page: 1/55 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE AG REEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
EUROPEAN UNION 
The following communication, dated 30 June 2017, is being circulated at the request of the 
Delegation of the European Union . 
 
_______________  
 
 G/SCM/N/315/EU  
 
- 2 - 
 
  EUROPEAN UNION  
 
TABLE OF CONTENTS  
1   INTRODUCTION  ................................ ................................ ................................ ..........  4 
1.1   Structure of Noti fication  ................................ ................................ ...............................  4 
1.2   Period Covered  ................................ ................................ ................................ ............  4 
1.3   Presentation of Notification  ................................ ................................ ...........................  4 
1.4   Status of Subsidies  ................................ ................................ ................................ ...... 4 
2   EUROPEAN UNION  SUBSIDIES  ................................ ................................ ....................  4 
3   EU FINANCING PROGRAM MES IN THE FIELD OF ENERGY AND TRANSPO RT ................  5 
3.1   Trans European Network - Energy (TEN -E) Programme  ................................ ....................  5 
3.2   European Energy Programme for Recovery (energy infrastructu re projects)  ........................  6 
3.3   Guidelines for trans -European energy infrastructure (Regulation EU 347/2013) and 
amending guidelines for trans -European energy infrastructure as regards the Union list of 
projects of common interest (Regulation EU 1391/2013)  ................................ .........................  8 
3.3.1    Connecting Europe Facility EU Financing Programme (in the field of energy) 
(Regulation EU 1316/2013)  ................................ ................................ ................................ .. 8 
3.4   Shared Management Funds related to the EU Energy Policy  ................................ ..............  9 
3.4.1    European Regional Development Fund (ERDF)  ................................ ..............................  9 
3.4.2    Cohesion Fund ................................ ................................ ................................ ......... 11 
3.4.3    European Social Fund  ................................ ................................ ............................... 13 
3.4.4    European Agricultural Fund for Rural  Development  ................................ ...................... 14 
3.5   Guidelines for the development of the trans -European transport network (Regulation 
EU 1315/2013)  ................................ ................................ ................................ .................. 15 
3.5.1    Connecting Europe Facility EU Financing Programme (in the field of transport) 
(Regulation EU 1316/2013)  ................................ ................................ ................................ .16 
4   COMMON AGRICULTURAL POLICY (CAP)  ................................ ................................ ... 17 
4.1   General Observations  ................................ ................................ ................................ ..17 
4.1.1    The CAP reform process  ................................ ................................ ........................... 17 
4.1.2    Financing the CAP  ................................ ................................ ................................ ....18 
4.1.3    Information on the Internet  ................................ ................................ ...................... 19 
4.2   European Agricultural Guarantee Fund (EAGF)  ................................ ............................... 19 
4.3   Measures Financed Through The EAGF ("First Pillar" of the CAP)  ................................ .......20 
4.3.1    Export refunds  ................................ ................................ ................................ ........ 20 
4.3.2    Interven tions in agricultural markets per sector  ................................ ........................... 20 
4.3.3    Direct payments  ................................ ................................ ................................ ......32 
4.3.4    POSEI  ................................ ................................ ................................ .................... 37 
4.4   Measures Financed By The European Agricultural Fund For Rural Development 
("Second Pillar" Of The CAP) ................................ ................................ ................................ 37 
4.5   Measures Financed By The European Agricultural Fun d For Rural Development 
("Second Pillar" Of The CAP) ................................ ................................ ................................ 38 
4.5.1    Policy framework  ................................ ................................ ................................ .....38 
4.5.2 Rural development measures  ................................ ................................ ...................... 38 G/SCM/N/315/EU  
 
- 3 - 
 
  4.6   IPARD  ................................ ................................ ................................ ....................... 42 
4.7 Measures Financed By IPARD  ................................ ................................ ......................... 43 
5   EUROPEAN FISHERIES FUND (EFF)  ................................ ................................ ...........  44 
6   PROGRAMMES IN THE FI ELD OF RESEARCH  ................................ ..............................  47 
6.1   Framework programmes  ................................ ................................ .............................. 47 
6.2   Research on Coal and Steel  ................................ ................................ ......................... 50 
7   THE EUROPEAN UNION'S  STRUCTURAL ACTIONS  ................................ ......................  51 
7.1   European Regiona l Development Fund  ................................ ................................ .......... 52 
 
 G/SCM/N/315/EU  
 
- 4 - 
 
  1  INTRODUCTION  
1.1  Structure of Notification  
Subsidies in the European Union are granted both at Union level i.e. out of the Union budget, and 
by Member States.  
In view of this, the 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 Covered  
As far as possible, this notification relates to subsidies granted during the period 2015  and 2016  
and to subsidy programmes which are currently in force, and provides statistical information at 
least up to the end of 2016 .  
1.3  Presentation of Notification  
The information provided in this notification includes, as far as possible, all the elements  required 
by Article  25.3 of the Subsidies Agreement and in almost all cases follows the presentation 
required by the subsidies questionnaire. In a few cases, the presentation is different to that 
specified in the questionnaire, but all the required elemen ts 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 support measures granted within its territory. The fact that such aid has been 
notified does not, in accordance with Article 25.7 of the Subsidies Agreement, prejudge its legal 
status under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement 
or the nature of the measure itself. In view of the diverse nature of many of the pro grammes 
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 expen diture 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 structural and agriculture operations. Another notable 
area of expenditure is research. All these ar e described in more detail in this part of the 
notification.  
b. State aid in the Member States  
The European Commission is responsible for examining all state aid granted within the EU in order 
to determine its conformity with Article  107 of the EU Treaty, Mem ber 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 negativ e decision which prevents the aid being granted. If the Member State 
has already granted such aid, the Commission can order the aid to be repaid.  
Details of Member States' aid schemes can be found in addenda to this notification.  G/SCM/N/315/EU  
 
- 5 - 
 
  3  EU FINANCING PROGRAM MES IN  THE FIELD OF ENERGY AND TRANSPORT  
3.1  Trans European Network - Energy (TEN -E) Programme  
The TEN-E framework , developed and shaped in the 1990 's through the successive TEN -E 
Guidelines and the corresponding financing Regulation, aims at (1) supporting the com pletion of 
the EU internal energy market while encouraging the rational production, transportation, 
distribution and use of energy resources, (2) reducing the isolation of less -favoured and island 
regions, (3) securing and diversify the EU's energy supplie s also through co -operation with third 
countries, (4) contributing to sustainable development and protection of the environment 
(including inter alia a greater use of renewable energy sources and the reduction of environmental 
risks associated with the tra nsportation of energy). The current TEN -E policy framework includes 
electricity, gas and olefin transmission networks, but not CO2 transportation, neither oil pipeline 
infrastructure. The TEN financing Regulation adopted on 20 June 2007 sets out the condit ions for 
TEN-E funding and, in particular, states that co -financing can be granted for up to 50% of studies' 
cost and 10% of eligible works' cost, in particular to projects of European interest. The budget for 
the period 2007 -2013 is 155 million euro (abou t 22 m ln € per year).  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
Commission Implementing Decision C(2013)7569 of 11 November 2013 establishing the list of 
projects selected in the field of trans -European e nergy networks to be granted financial aid for the 
financial year 2013 and setting the maximum amount of that aid. 
2. Period covered by the notification  
2014 (the individual Decisions were notified to the Beneficiaries in 2014 in accordance with the 
Award Dec ision C(2013)7569)  
3. Policy objectiv e and/or purpose of the subsidy  
The current TEN -E policy framework includes electricity, gas and olefin transmission networks, but 
not CO2 transportation, neither oil pipeline infrastructure. The TEN financing Regulation a dopted 
on 20 June 2007 sets out the conditions for TEN -E funding and, in particular, states that 
co-financing can be granted for up to 50% of studies' cost and 10% of eligible works' cost, in 
particular to projects of European interest.  
4. Background and auth ority for the subsidy (including identification of the legislat ion under 
which it is granted)  
TEN Financial Regulation  [OJ L162 of 22.6.2007, p.1] - REGUL ATION (EC) No 680/2007 OF THE 
EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 June 2007 laying down general rules for the 
granting of Community financial aid in the field of the trans -European transport and energy 
networks  
TEN-E Guidelines  [OJ L262 of 22.9.2006, p.1] - Decision No 1364/2006/EC of the European 
Parliament and of the Council of 6 September 2006 laying down guidelines for trans -European 
energy net works and repealing Decision 96/391/EC and Decision No 1229/2003/EC  
5. Form of the subsidy (i.e., gra nt, loan, tax concession, etc.)  
Grant.  
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/315/EU  
 
- 6 - 
 
  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 no t possible, a full explanation  
Annual amounts in Work programmes:  
2013: EUR 22.200.000 out of which EUR 10.000.000 were taken by the EIB for project bonds.  
The total amount of all decisions notified (16 in total) is 11.669.475 EUR.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2013-2022 
3.2  European  Energy Programme for Recovery (energy infrastructure projects)  
The European Energy Programme for Recovery ('EEPR Regulation') proposed an important Union 
contribution of 3.98 billion EUR to co -finance specific energy projects in the fields of gas and 
electricity interconnections (2.365 billion EUR ), offshore wind energy (0.565 million EUR) and 
carbon capture and storage (1.05 billion EUR). 
The origin of the EEPR Regulatio n is the global 200 billion € European Economic Recovery Plan, 
presented by the Commission in November 2008, as a response to the economic and financial 
crisis in Europe.  
Furthermore, the "2nd Strategic Energy Review" adopted by the Commission in November  2008 
and endorsed by the 2009 Spring European Council constituted a key political document setting 
the priorities for the EU in the field of energy for the next years, in particular with regards to the 
strengthening of the energy networks.  
The Plan was e ndorsed by the European Council in December 2008 where the Commission was 
invited to present a list of concrete energy projects. The EEPR Regulation established the EEPR 
programme and its financing instrument. It was adopted on 13 July 2009 and entered int o force 
on 1st August 2010.  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
European Energy Programme for Recovery  
Sub-Programme: Gas and electricity infrastructure projects allocating financial assist ance to 
44 projects granted on the basis of Commission decisions.  
2. Period covered by the notification  
2010 (call for proposals)  
3. Policy objective and/or purpose of the subsidy  
The EEPR was a financial support programme whose overall objective was to st imulate recovery 
from the downturn affecting the EU economy while enhancing the achievement of the EU energy 
policy priorities, namely the security and diversification of energy supply, the operation of the 
internal energy market and the reduction of green house gas emissions. In particular, the EEPR's 
main objective was to help securing and speeding up investments in the energy sector, with a 
direct impact on the EU economy and employment; helping improve the security of supply of the 
most vulnerable Member  States and link energy islands to the rest of the EU energy market. 
Finally, EEPR was intended to speed up the implementation of the 20/20/20 objectives for 2020, 
by supporting the deployment of innovative technologies in the field of coal and renewable e nergy, 
two major indigenous resources.  G/SCM/N/315/EU  
 
- 7 - 
 
  Gas and electricity infrastructure is the main priority of the EEPR Regulation. It includes gas and 
electricity interconnections, Liquefied Natural Gas (LNG) terminals, gas storage facilities and gas 
reverse flow proj ects with the specific objective of helping to prevent potential disruptions to the 
gas supply in the future.  
Moreover, the majority of the interconnection projects selected in the EEPR Regulation were 
already forming part of the Trans -European Energy (TE N-E) networks and some received TEN -E 
funds to mainly co -finance feasibility studies. Hence, the EEPR programme constitutes the right 
instrument to contribute to the related expenditure of the implementation of the most mature 
TEN-E projects.  
The Community  promoted gas and electricity infrastructure projects having the highest Community 
added value and contributing to the following objectives:  
(a) security and diversification of sources of energy, routes and supplies;  
(b) the optimisation of the capacity of the energy network and the integration of the internal 
energy market, in particular concerning cross -border sections;  
(c) the development of the network to strengthen economic and social cohesion by reducing the 
isolation of the least favoured regions or islands of the Community;  
(d) the connection and integration of renewable energy resources; and  
(e) the safety, reliability and interoperability of interconnected energy networks, including the 
ability to use multidirectional gas flows where necessary . 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
Regulation (EC) No 663/2009 of the European Parliament and of the Council establishing a 
programme to aid economic recovery by granting Co mmunity financial assistance to projects in the 
field of energy.  
5. Form of the subsidy (i.e., gra nt, loan, tax concession, etc.)  
Grants  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whe ther 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 p er 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 n ot possible, a full explanation  
The call for proposals, covering all three sectors, was published on 19 May 2009. The granting of 
the EEPR funds was materialised through Individual Commission Decisions that have been notified 
to the beneficiaries concerned during the period March -May 2010.  
At the end of June 2016, 37 projects out of 59 were completed, and a total amount 
of 2,122,297,449 EUR (after deduction of the recovery orders for an amount 
of 144,188,902.94  EUR) was paid to the beneficiaries.  G/SCM/N/315/EU  
 
- 8 - 
 
  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commence ment 
Duration of eligible action(s) selected to be co -financed.  
3.3  Guidelines for trans -European energy infrastructure (Regulation EU 347/2013) and 
amending guidelines for trans -European energy infrastructure as regards the Union list 
of projects of common in terest (Regulation EU 1391/2013)  
This Regulation lays down guidelines for the timely development and interoperability of priority 
corridors and areas of trans -European energy infrastructure. It addresses the identification of 
projects of common interest ne cessary to implement priority corridors and areas falling under the 
energy infrastructure categories in electricity, gas, oil, and carbon dioxide. facilitates the timely 
implementation of projects of common interest by streamlining, coordinating more close ly, and 
accelerating permit granting processes and by enhancing public participation This Regulation 
establishes twelve Regional Groups ( 'Groups '). Projects of common interest included on the Union 
list pursuant to paragraph 4 of this Article are becoming an integral part of the relevant regional 
investment plans under Article 12 of Regulations (EC) No 714/2009 and (EC) No 715/2009 and of 
the relevant national 10 -year network development plans under Article 22 of Directives 
2009/72/EC and 2009/73/EC and oth er national infrastructure plans concerned, as appropriate. 
Those projects will be conferred the highest possible priority within each of those plans.  
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of energy) 
(Regulation EU 1316/2013)  
Connecting Europe Facility represents the new funding instrument for the trans -European 
networks.  
The draft regulation establishing the CEF determines the conditions, methods and procedures for 
the Union's financial contribution to TEN projects identified in t he respective sectorial guidelines 
and listed in the Annex of the CEF in the case of transport and energy. It will replace the existing 
legal bases for TEN funding.  
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 energy) (Regulation 
EU 1316/2013)  
2. Period covered by the notification   
2014 
3. Policy objective and/or purpose of the subsidy  
The overall objective of the CEF is to help crea te high -performing and environmentally -sustainable 
interconnected 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 EU's "20 -20-20" objectives in the area of energy policy and climate action.  
Under the CEF, and following the adoption of the Regulation on the European Fund for Stra tegic 
Investments (Regulation 2015/1017 of 25 June 2015) 5.35 billion EUR is available for trans -
European energy infrastructure projects, which aim at, in particular, interconnecting national 
transmission gas and electricity grids . The European Commission has drawn up a list of 195 EU 
projects of common interest (PCIs) which may apply for CEF funding. The list is updated every two 
years to integrate newly needed projects and remove obsolete ones, and the next update will take 
place by the end of 2017.  
In the energy sector, the CEF is only one element of the toolset developed under the new TEN -E 
guidelines to support projects of common interest. Perhaps even more importantly than CEF G/SCM/N/315/EU  
 
- 9 - 
 
  money, the guidelines help project promoters with binding deadlines for perm it 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 will not be available to all projects of common 
interest but only to those that are comme rcially not viable (i.e. do not have a guarantee of cost 
recovery under the tariff scheme approved) but have particularly high positive externalities 
(e.g. increasing Security of Supply, testing new technologies).  
4. Background and authority for the subsi dy (including identification of the legislation under 
which it is granted)  
Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of 
application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the 
Counci l on the financial rules applicable to the general budget of the Union  Regulation (EU) 
No 347/2013 of the European Parliament and of the Council of 17  April 2013 on guidelines for 
trans-European energy infrastructure and repealing Decision No  1364/2006/EC and amending 
Regulations (EC) No  713/2009, (EC) No  714/2009 and (EC) No  715/2009 Text with EEA relevance ; 
Regulation (EU) No  1316/2013 of the European Parliament and of the Council of 11  December 
2013 establishing the Connecting Europe Facility, amending R egulation (EU) No  913/2010 and 
repealing Regulations (EC) No  680/2007 and (EC) No  67/2010 Text with EEA relevance ; 
Commission Delegated Regulation (EU) 2016/89 of 18 November 2015 amending Regulation (EU) 
No 347/2013 of the European Parliament and of the C ouncil as regards the Union list of projects of 
common interest . 
5. Form of the subsidy (i.e., gra nt, loan, tax concession, etc.)  
Grants  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whe ther 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 pe r 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 multiannual Work programmes (2014 -2020):  
In the p eriod 2014 -2016, CEF Energy awarded 96 actions EUR 1.6 billion for grants, through five 
calls for proposals, from a possible maximum allocated budget of EUR 2.2 billion. Of the amount 
awarded, EUR 1.2 billion has been already committed through the  signatur e of grant agreements 
and EUR 0.55 billion has been disbursed.   
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014-2020 
3.4  Shared Management Funds related to the EU Energy Policy  
3.4.1   European Reg ional Development Fund (ERDF)  
The ERDF aims to strengthen economic and social cohesion in the European Union by correcting 
imbalances between its regions.  G/SCM/N/315/EU  
 
- 10 - 
 
  The ERDF focuses its investments on several key priority areas. This is known as 'thematic 
concentrat ion':  
 Innovation and research;  
 The digital agenda;  
 Support for small and medium -sized enterprises (SMEs);  
 The low -carbon economy.  
The ERDF resources allocated to these priorities will depend on the category of region.  
 In more developed regions, at least 80 % of funds must focus on at least two of these 
priorities;  
 In transitio n regions, this focus is for 60 % of the funds;  
 This is 50 % in less developed regions.  
Furthermore, some ERDF resources must be channeled specifically towards low -carbon economy  
projects:  
 More developed regions: 20%;  
 Transition regions: 15%; and  
 Less developed regions: 12%  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
European Regional Development Fund (ERDF) (in the fiel d of energy) (Regulation No 1301/2013 ) 
2.  Period covered by the notification  
2014-2020 
3.  Policy objective and/or purpose of the subsidy  
In the field of energy the focus is on Energy efficiency, renewable energy, smart distribution grids, 
energy RTDI, s mart energ y infrastructure (incl. TEN -E). 
Specific focus areas defined in the Operational Programmes. Specific selection criteria defined by 
the Managing Authorities of the Operational Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated with the European Commission.  
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  Decembe r 
2013 on the European Regional Development Fund and on specific provisions concerning the 
Investment for growth and jobs goal and repealing Regulation (EC) No  1080/2006  
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 latte r, 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 G/SCM/N/315/EU  
 
- 11 - 
 
  distinct f rom the final recipients which can be public or private bodies, including individuals (e.g. 
households renovating their residence).  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy  (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is no t possible, a full explanation  
Around EUR 29 bn a llocated in total to the energy focus areas from the ERDF and the CF taken 
together (see also the table below), out of which around EUR 17 bn for energy efficiency in 
buildings and enterprises, to be used both for grants and financial instruments (201 4-2020). 
ERDF has to be matched with national co -financing (public or and private), defined within the 
operational programmes. Maximum share from EU budget depending  on the level of development 
of the region (from 50 to 85% at priority axis level, with an addit ional 10 percent points top up 
applies for contributions to EU level instruments or priority axis dedicated to financial instruments 
only and no national co -financing is required for contributions to EU level instruments).  
8. Duration of the subsidy and/or  any other time limits attached to it, including date of 
inception/commencement  
2014-2020  
3.4.2   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 econ omic and social disparities and to 
promote sustainable development.  
The Cohesion Fund allocates a total of € 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 environmen t in terms of energy efficiency, 
use of renewable 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 ma jority) 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 Mana ging Authorities of the Operational 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 field of energy) (Regulation 1300/2013 ) 
2.  Period covered by the notification  
2014-2020 G/SCM/N/315/EU  
 
- 12 - 
 
  3.  Policy objective and/or purpose of the subsidy  
In the field of energy the focus is on Energy efficiency, renewable energy, smart d istribution grids. 
Specific focus areas defined in the Operational Programmes. Specific selection criteria defined by 
the Managing Authorities of the Operational Programmes, in line with the Partnership Agreement 
and the Operational Programmes negotiated w ith 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 Regulation (EC) No  1084/2006   
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Grants and financial instruments (Loans, guarantees and equity, possibility to combine with 
grants)  
6. To whom and how the subsidy i s 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 financ ial 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  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Around EUR 29 billion allocated in total to the e nergy focus areas from the ERDF and the CF taken 
together (see also the table above), out of which around EUR 17 bn for energy efficiency in 
buildings and enterprises, to be used both for grants and financial instruments (2014 -2020).  
CF has to be matched w ith 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 percenta ge that can be financed will depend on State 
aid rules and the specific provisions of the given instrument.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014-2020  G/SCM/N/315/EU  
 
- 13 - 
 
  3.4.3   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 r egions. More than € 80 billion is earmarked for human capital 
investment in Member States between 2014 and 2020, with an extra of at least € 3.2 billion 
allocated to the Youth Employment Initiative.  
For the 2014 -2020 period, the ESF will focus on four of the cohesion policy's thematic objectives:  
 promoting employment and supporting labour mobility  
 promoting social inclusion and combating poverty  
 investing in education, skills and lifelong learning  
 enhancing institutional capacity and an efficient publi c administration  
In addition, 20 % of ESF investments will be committed to activities improving social inclusion and 
combating poverty. This is known as thematic concentration.  
2.  Period covered by the notification  
 2014-2020 
3.  Policy objective and/or  purpose of the subsidy  
In the field of The ESF contributes to energy and climate change challenges in implementing its 
investment priorities for employment, social inclusion, education and institutional capacity, 
through the improvement of education and t raining systems necessary for the adaptation of skills 
and qualifications, the up -skilling of the labour force, and the creation of new jobs in sectors 
related  to the environment and energy.  
4. Background and authority for the subsidy (including identifica tion 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., g rant, 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; whethe r 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 t he financial instrument. The beneficiary is 
distinct from the final recipients which can be public or private bodies, including individuals . G/SCM/N/315/EU  
 
- 14 - 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for tha t 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 c ontribution 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 development 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 
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 
3.4.4   European A gricultural 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 Agricu ltural Policy (CAP), it complements the system of direct payments to 
farmers and measures to manage agricultural markets (the so -called "first pillar"). Rural 
Development policy shares a number of objectives with other European Structural and Investment 
Funds (ESIF).  
1.  Title of the subsidy programme, 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 notifica tion  
2014-2020 
3. Policy objective and/or purpose of the subsidy  
In the field of energy the EAFRD focusses on the support of rural development  under investment in 
physical assets: Support for processing of agricultural biomass for renewable energy, produc tion of 
bioenergy for on -farm use, 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 -agricultu ral 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 Coun cil 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 financ ial instruments (Loans, guarantees and equity, possibility to combine with 
grants)  G/SCM/N/315/EU  
 
- 15 - 
 
  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 la tter, 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 benefi ciary of the financial instrument.  
The beneficiary is distinct from the final recipients which can be farmers or groups of farmers, 
in specific cases other bu sinesses and/or public entities (e.g., farmer modernizing the agricultural 
holding).  
7. Subsidy pe r 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 cove red by the 
notification, 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 2 8 Member States. It is up to 
the Member States how big 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 "i ncreasing efficiency in energy use in agriculture and 
food processing" and EUR 1.6 billion for "facilitating the supply and use of renewable sources of 
energy, of by -products, wastes and residues and of other non -food raw material, for the purposes 
of the bio-economy".  
Moreover, energy -related projects can also be financed from other measures, such as measures 
aiming at improving the economic performance of farms, including irrigation (almost EUR 30 billion 
of public support reserved for enhancing of econo mic performance and increasing efficiency in 
water use by agriculture).  
Only eligible expenditure can be financed. The minimum EU contribution is 20% (share of EAFRD 
contribution in the total public support. Depending on the region and type of operation, the 
maximum Union contribution can be 53% to 100%.  
Aid intensity rates (share of public contribution in the total eligible expenditure of the project) are 
subject to type of operation. Building of infrastructure can be 100%, but in other cases it is 40% in  
most of the regions and it can be higher in case of less developed regions, or other regional cases. 
Beneficiaries of investment related support may request for an advance payment up to 50% of the 
public aid if that option is included in the Rural Develop ment Programme (RDP).  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
2014-2020 
3.5  Guidelines for the development of the trans -European transport network 
(Regulation EU 1315/2013)  
This Regulatio n establishes 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 telemat ic 
applications as well as measures promoting the efficient management and use of such 
infrastructure and permitting the establishment and operation of sustainable and efficient transport 
services.  G/SCM/N/315/EU  
 
- 16 - 
 
  This Regulation sets out the priorities for the developmen t of the trans -European transport 
network and provides for measures for the implementation of the trans -European transport 
network  
3.5.1   Connecting Europe Facility EU Financing Programme (in the field of transport) 
(Regulation EU 1316/2013)  
Connecting Europe Fac ility represents the new funding instrument for the trans -European 
networks.  
This regulation establishing the CEF determines the conditions, methods and procedures for the 
Union's financial contribution to TEN projects identified in the respective sectoria l guidelines and 
listed in the Annex of the CEF in the case of transport and energy. It will replace the existing legal 
bases for TEN funding.  
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   
2015-2016 
3. Policy objective and/or purpose of the subsidy  
The overall objective of the CEF is to help create high -performing and environmentally -sustainable 
interconnected networks across Europe, thereby contributing to economic growth and social and 
territorial cohesion within the Union. Such investments in infrastructure are also instrumental in 
allowing the EU to m eet 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 Mu lti-Annual Work Programme for 2017 call for proposals 
are in line with the Union priorities, notably those related to 'Jobs, growth and investment', 'Digital 
single market' and 'Energy Union and climate'  
Under the CEF, €24 billion is available for trans -European transport infrastructure projects and 
objectives such as i) removing bottlenecks, enhancing rail interoperability, bridging missing links 
and, in particular, improving cross -border sections, ii) ensuring sustainable and efficient transport 
systems i n the long run, with a view to preparing for expected future transport flows, as well as 
enabling all modes of transport to be decarbonised through transition to innovative low -carbon and 
energy -efficient transport technologies, while optimising safety and  iii) optimising the integration 
and interconnection of transport modes and enhancing the interoperability of transport services, 
while ensuring the accessibility of transport infrastructures.  
The infrastructure of the trans -European transport network cons ists of the infrastructure for 
railway transport, inland waterway transport, road transport, maritime transport, air transport and 
multimodal transport, as determined in the relevant sections of Chapter II of the CEF regulation 
(Regulation EU 1316/2013)  
The CEF will complement Cohesion Policy transport priorities by targeting in particular the delivery 
of cross -border and projects in the rail or inland waterways sectors, the most complex projects on 
the TEN -T in terms of implementation. The CEF has been des igned to bring maximum support to 
these projects. €11.3 billion are available in the CEF only for the Cohesion Fund eligible Member 
States, applying the higher co -financing rates of the Cohesion fund. During the first three years of 
the CEF, the selection of projects eligible for financing shall respect the Member States national 
allocations under the Cohesion Fund.  G/SCM/N/315/EU  
 
- 17 - 
 
  4. Background and authority for the subsidy (including identification of the legisla tion under 
which it is granted)  
REGULATION (EU) No 1315/201 3 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 COU NCIL 
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 conce ssion, etc.)  
Grants, procurement and financial instru ments  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
Others.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the p revious year, or both) is n ot possible, a full explanation  
Annual amounts in multiannual Work programmes (2014 -2020):  
2015 - EUR 2,226,848,306  
2015 - EUR 3,846,665,700  
8. Duration of the subsidy and/or any other time limits attached to it, including  date o f 
inception/commencement  
2014-2020  
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.   
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 crit eria, with a shift in policy away from trade distorting amber box support to non trade 
distorting green box support. Direct payments now cover nearly 90% of the EU budget outlay for 
"first pillar" support (i.e. market measures and Direct Payments together) . The 2013 Reform 
enhanced further the environmental and climate -change mitigating elements of the CAP.  
The 2003 CAP Reform introduced a decoupled direct payments scheme, the Single Payment 
Scheme (SPS), as well as a simplified direct payments scheme for s ome new Member States called 
the Single Area Payment Scheme (SAPS). Under the SPS and SAPS aid is no longer linked to 
production and farmers can decide whether and what to produce knowing that they receive the 
same amount of aid, therefore production is ad justed to suit market demand. The 2013 reform 
continued this decoupling of direct payment. The 2013 reform main elements is decoupled 'basic G/SCM/N/315/EU  
 
- 18 - 
 
  payment ' (Basic payment scheme [BPS] or Single area payment scheme [SAPS],) complemented 
by a series of other decou pled support schemes targeting specific objectives or types of farmers: 
greening, young farmers, redistributive payments, areas with national constraints and Voluntary 
Couples Support (VCS) - see 4.3.3 for details.  
Under the current CAP, market interventio n 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 challenges, 
such as  climate change, renewable energies, water management and biodiversity.  
The main CAP Regulations in force at 1/1/2015:  Regulation (EU) No 1307/2013 of the 
European Parliament and of the Council establishing rules for direct payments to farmers under 
suppor t schemes within the framework of the common agricultural policy and repealing Council 
Regulation (EC) 637/2008 and Council Regulation (EC) No 73/2009 and Regulation (EU) 
No 1305/2013 of the European Parliament and of the Council on support for rural devel opment 
by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council 
Regulation (EC) No 1698/2005.  
The Regulations for the Common Market Organisation and Rural Development have as of 1/1/2014 
been replaced by Regulation (EU) No 130 8/2013  of the European Parliament and the Council 
of 17 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 17 December 2013 on the financing, management and 
monitoring of the common agricultural policy.  
4.1.2   Financing  the CAP  
The expenditure for agriculture included in this notification relates to payments made by the 
European Agricultural Guaran tee Fund (EAGF) and the European Agricultural Fund for Rural 
Development (EAFRD) during the years 2015 and 2016. For the EAGF (first pillar of the CAP) the 
SCM questionnaire is answered in Section B below together with detailed information on the 
individua l support measures in section 4.3 (4.3.1 Export 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 notific ation. 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 Member States of EU28.  
As from 2014 a crisis reserve was introduced to ensure additional support for the agricu ltural 
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 expe nditures and direct payments are 
respected in a given year, the mentioned adjustment rate might if needed be increased. In the 
case that the total amount of the crisis reserve has not been spent by the end of the budget year 
in question, or there are other  remaining budgetary availabilities for the EAGF, the adjustment is 
repaid to the direct payments recipients in the following budget year.  
General Summary of expenditure for Agriculture and Rural Development, million EUR  
 2014  2015  2016  
European Agricultu ral Guarantee Fund (EAGF)  44,137.85  44,834.52  44,124.06  
Export subsidies  4.48 0.31 0.60 
Other intervention in markets  2,473.69  2,666.18  3,139.33  
Direct payments  41,659.68  42,168.04  40,984.13  
Of which non -trade distorting direct payments  38,952.09  39,08 5.01 36,431.05  
Europea n Agricultural Fund for Rural 
Development (EAFRD)  11,177.59  11,779.39  12,345.01  
Rural Development 2014 -2020 224.99  5,252.19  7,809.87  
Rural development 2007 -2013 10,947.35  6,464.30  4,495.77  
Rural development completion of previous periods  5.25 62.90  46.8 
Pre-accession (Ipard)  158.73  201.90  339.24  G/SCM/N/315/EU  
 
- 19 - 
 
  4.1.3   Information on the Internet  
General information on the Common Agricultural Policy can be found at:  
http://ec.europa.eu/agricul ture/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 interventi ons in markets ("First Pillar")  
2. Period covered by the notification  
1 January 2015 -31 December 2016  
3. Policy objective and/or purpose of the programme  
The policy objective aims at:  
 providing the farmin g community with a fair standard of living,  
 supplying consumers with food at reasonable prices, and  
 promoting effective use of resources.  
4. Background and authority for the programme  
Treaty on the Functioning of the European Union, in particular Title II I of Part III.  
5. Form of assistance granted  
The aid is normally in the form of grants or loans.   
6. To whom and how the assistance is provided  
Payments are made to economic actors in the sector, for the large part agricultural producers.  
7. Total expendi ture under the programme  
European Agricultural Guarantee Fund - financial year (million EUR)  
 2014  2015  2016  
 Intervention in markets  2,473.7  2,666.2  3,139.3  
 Export subsidies  4.5 0.3 0.6 
 Direct payments  41,659.7  42,168.0  40,984.1  
Total EAGF  44,137.9  44,834.5  44,124.1  
Of which non -trade distorting 
direct payments  38,952.1  39,085.0  36,431.0  
 G/SCM/N/315/EU  
 
- 20 - 
 
  8. Duration of the programme  
The current multiannual financial framework covers the period from 2014 to 2020.  
9. Trade effects  
In 2016, 87% of the support provid ed had no or at most minimally trade distorting effects 
unchanged compared to 2014.  
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 2014, 2015 and 2016 are as follows:  
Export subsidies (EAG F payments) EUR million  
Products  2014  2015  2016  
Cereals  2.5 0.0 0.0 
Sugar  0.3 0.0 0.0 
Rice 0.0 0.0 0.0 
Olive oil  0.0 0.0 0.0 
Fruit and vegetables  0.0 0.0 0.0 
Wine 0.0 0.0 0.0 
Dairy products  0.0 0.0 0.0 
Bovine meat  0.4 0.2 0.6 
Pigmeat  0.2 0.1 0.0 
Eggs and poultry  0.9 0.0 0.0 
Refunds on non -Annex I  0.1 0.1 0.0 
Total expenditure  4.5 0.3 0.6 
 
4.3.2   Interventions in agricultural markets per sector  
In order to stabilise markets and assure the agricultural population of an equitable standard of 
living, the  Common Agricultural Policy provides, in the Common Market Organisation Regulation, 
intervention and aid measures that vary according to the nature of the product and the special 
characteristics of the market. This section 4.3.2 deals with spending for the  Interventions in 
agricultural markets per sector; section 4.3.3 will address Direct Payments in a similar way. Most 
of the support schemes 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 Council of 
17 December 2013 establishing a common organisation of the markets in agricultural 
products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) 
No 1037/2001 and (EC) No 1234/2007 as well as Cou ncil Regulation (EU) 
No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and 
refunds related to the common organisation of the ma rkets in agricultural products.  
 G/SCM/N/315/EU  
 
- 21 - 
 
  Support to agricultural markets (EAGF budget - payments) EUR million  
Products  2014  2015  2016  
Cereals  0.0 0.0 0.0 
Rice 0.0 0.0 0.0 
Food programs  -7.2 -3.2 0.0 
Sugar  0.2 0.0 0.0 
Olive oil  43.0 44.1 46.0 
Textile plants  6.3 6.1 6.1 
Fruits and vegetables  1,010.5  1,118.6  1,172.7  
Wine 1,022.4  1,029.8  1,027.1  
Promotion  54.2 67.1 66.7 
Other plant products  240.8  240.0  242.0  
Dairy products  71.8 119.6  406.6  
Beef and veal  0.0 0.0 29.6 
Sheep and goat  0.0 0.0 1.8 
Pigmeat  0.0 11.5 105.7  
Eggs and poultry  0.0 0.0 0.4 
Other measures & animal products  31.8 32.6 34.5 
Total expen diture   2,473.7  2,666.2  3,139.3  
The increased amounts for the animal sectors in 2016 represent mainly emergency aid under 
Regulation (EU) 2015/1853 and storage costs. For dairy and pigmeat emergency aids amount to 
respectively EUR 324 million and EUR 74.9  million, in addition to respectively EUR 18.2 million and 
EUR 30.8 million of storage aids. The amounts for beef and veal and sheep and goat represent 
emergency aids only. The amount for poultry covers another emergency measure related to 
avian  flu. 
4.3.2.1   Cerea ls 
Public intervention  
Public intervention is available for certain cereals from 1 November to 31 May.  
During this period it is open for common wheat for a maximum quantity offered of 3 million tonnes 
per intervention period (and by automatic tendering pr ocedure 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 delivere d to the warehouse, before 
unloading).  
Cereals will only be accepted in public intervention if they comply with certain minimum quality 
specifications.  
In practice public intervention has not been used for cereals since 2010. Based on current market 
prices  (well above the reference price), no public intervention is expected for cereals in the near 
future.  
4.3.2.2   Rice  
Public intervention  
Public intervention is available for paddy rice from 1 April to 31 July. During this period, public 
intervention may be opened b y the Commission for paddy rice, by means of implementing acts, if 
the market situation so requires. Rice will only be accepted in intervention if it complies with 
certain eligibility criteria.  G/SCM/N/315/EU  
 
- 22 - 
 
  The reference threshold for paddy rice is EUR 150/tonne for th e defined standard quality (related 
to the wholesale stage for goods delivered to the warehouse, before unloading)  
If the rice offered to intervention differs from the standard quality, the price is adjusted 
accordingly.  
In practice public intervention has  not been used for rice since 2000. Based on current market 
prices (well above the reference price), no public intervention is expected for rice in the near 
future.  
4.3.2.3   Sugar   
Private storage  
There is a private storage system as a safety net in case the marke t price falls below the threshold 
price du ring a representative period and is likely to remain at that level. Taking into account the 
market situation, the Commission may decide to grant aid for private storage of white sugar to 
undertakings which are allo cated a sugar quota. After the sugar quota will expire all sugar 
undertakings can benefit from the measure.  
Quota system  
The current quota system will expire on 30/9 -2017.  
The quotas for the production of sugar, isoglucose and inulin syrup at national or regional level are 
fixed as follows:  
(tonnes, Regulation (EU) No 1308/2013)  
Member State region  Sugar  Isoglucose  Inulin syrup  
Belgium  
 676,235.0  114,580.2  0 
Bulgaria  
 0 89,198.0   
Czech Republic  
 372,459.3    
Denmark  
 372,383.0    
Germany  
 2,898,25 5.7 56,638.2   
Ireland  
 0   
Greece  
 158,702.0  0  
Spain  
 498,480.2  53,810.2   
France (metropolitan)  
 3,004,811.15   0 
French overseas departments  
 432,220.05    
Croatia  192,877.0    
Italy  
 508,379.0  32,492.5   
Latvia  
 0   
Lithuania  
 90,252.0    
Hungary  
 105,420.0  250,265,8.0   
Netherlands  
 804,888.0  0 0 
Austria  
 351,027.4    
Poland  
 1,405,608.1  42,861.4   
Portugal (mainland)  
 0 12,500.0   
Autonomous region of the 
Azores  9,953.0    
Romania  
 104,688.8  0  
Slovenia  
 0   
Slovakia  
 112,319. 5 68,094.5   
Finland  
 80,999,0  0  
Sweden  
 293,186.0    
United Kingdom  
 1,056,474.0  0  
TOTAL  
 13,529,618.2  720,440.8  0 
 G/SCM/N/315/EU  
 
- 23 - 
 
  Member States allocate a quota to each undertaking producing sugar, isoglucose or inulin syrup 
established in its territory and ap proved under certain conditions. For each undertaking, the 
allocated quota shall be equal to the quota under Regulation (EC) No 1234/2007 which was 
allocated to the undertaking for the marketing year 2010/2011.  
The sugar, isoglucose or inulin syrup produce d during a marketing year in excess of the quota may 
be: 
 used for the processing of certain products (bioethanol, chemical industry, etc.);  
 carried forward to the quota production of the next marketing year;  
 used for the specific supply regime for the oute rmost regions;  
 exported within the quantitative limit fixed by the Commission respecting the 
commitments resulting from international agreements; or  
 released onto the internal market in the frame of the temporary market management 
mechanism.  
Other quantit ies are subject to a surplus levy. The surplus levy is fixed by the Commission at a 
sufficiently high level in order to avoid the accumulation of quantities. The surplus levy referred is 
charged by the Member State to the undertakings on its territory acco rding to the quantities of 
production established for those undertakings for the marketing year concerned.  
Temporary market management mechanism  
In order to ensure a sufficient supply, the Commission can, for the quantity and time necessary, 
adjust the le vel of the duty payable on imported raw sugar and fix the quantities of out -of-quota 
sugar that can be released onto the market and the applicable surplus levy.  
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 required for marketing in the EU, 
thus providing safeguards for consumers and allowing  producers to maximise the benefits of 
selling a quality product. Certain Member States (IT, FR and EL) benefit from EU co -financing for a 
maximum amount of EUR 47.6 million to  support programmes carried out by producers 
organisations and interbranch organ isations 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 t imely respond to a particularly difficult market situation or 
economic development having a significant negative impact on the margins in the sector.  
4.3.2.5   Textile plants   
National restructuring programmes for the cotton sector  
EU funds are attributed to Member States to finance specific restructuring measures to assist the 
cotton sector. The restructuring programmes must be compatible with EU law and consistent with 
the activities, policies and priorities of the EU. Council Regulation (EC) No 637/2008 provides t hat 
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 31  December 2009, a single draft modified rest ructuring programme for a 
duration of eight years. The annual budget for the restructuring programme per Member State 
from the financial year 2010 onwards shall be as follows EUR 4.0 million for Greece and 
EUR 6.134  million for Spain.  G/SCM/N/315/EU  
 
- 24 - 
 
  The restructuring pro grammes 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 con tractors, 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.  
4.3.2.6   Fruit and vegetables   
The objectives of the fruit and vegetables scheme remain t o improve the competitiveness and 
market orientation of the fruit and vegetable 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 and consumption forecasting and follow -up; 
(b) improvement of product quality, whether in a fresh or processed form;  
(c) boosting products' commercial value;  
(d) promotion of the products, whether in a fresh or processed form;  
(e) environmental measures, particularly those relating to water, and methods of production 
respecting the environment, including organic farming;  
(f) crisis prevention and management.   
EU Funding is availabl e for producer organizations recognized by the Member States through 
approved 3 -5 year operational programmes in line with the scheme's objectives. Higher support 
(60% EU co -financing instead of 50%) is foreseen in some cases, such as for mergers of produc er 
organisations. Additional national financial assistance is allowed and partially reimbursed by 
EU funds in areas where marketed production by producer organisations is less than 15%. EU aid 
to producer organisations remains limited to 4.1% of the value of marketed produce, but this may 
rise to 4.6% (4,7% in case of associations of producer organisations) provided that the amount in 
excess of 4,1% is used only for crisis prevention and management.  
Crisis prevention and management  
Producer organisations' O perational Programmes may include crisis prevention and management 
measures. Those can consist of investments making the management of the volumes placed on 
the market more efficient, training and exchanges of best practices, promotion and 
communication, w hether for prevention or during a crisis period, support for the administrative 
costs of setting up mutual funds, replanting of orchards for health or phytosanitary reasons, 
market withdrawal, green harvesting/non -harvesting and harvest insurance.  G/SCM/N/315/EU  
 
- 25 - 
 
  Excepti onal measures   
The Commission adopted six subsequent Regulations to address the consequences of the Russian 
ban on imports from the EU, laying down temporary exceptional support measures open to all 
producers of certain fruit and vegetables through market withdrawals for free distribution and 
other destinations, as well as non -harvesting and green harvesting.  
Environmental measures  
Producer organisations are required to devote at least 10% of expenditure in each operational 
programme to environmental actio ns or to include at least two environmental actions in their 
operational programme.  
4.3.2.7   School schemes  
School Fruit and Vegetables Scheme  
The EU School Fruit and Vegetables Scheme (SFVS) has been operational as from school 
year 2009-2010. It aims to encourage  the consumption of fruit and vegetables which in turn 
contribute to shaping healthy eating habits in young people. This has positive implications for 
agriculture and can contribute to larger efforts to fight against obesity and overweight. Since 
2014, the  SFVS makes available €150 million of EU funds per school year to provide fruit and 
vegetables to school children and this money is matched by national and private funds in the scale 
of 25% or 10% for less developed regions (co -financing). Around 11,7 mill ion children from 
24 Member States out of 28 benefited from the Scheme in school year 2015/16.  
School Milk Scheme  
EU aid is granted for supplying to pupils in educational establishments milk and certain processed 
milk products. Member States may, in additi on to EU aid, grant national aid. The EU aid is 
EUR 18.15/100 kg milk. The amounts of aid for other eligible milk products are determined taking 
into account the milk components of the product concerned. The aid is granted on a maximum 
quantity of 0.25 lit re of milk equivalent per pupil and per day.  
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 assis t 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 c onsistent both within the programme 
and with other sources of financing (e.g. Rural Development). The first programming period 
(2008 -2013) was concluded with the phasing out of previous intervention measures which gave 
progressively way to structural measu res such as restructuring of vineyards, investments in 
transforming and marketing facilities and promotion of EU wine in third countries, which accounted 
for 2/3 of the global expenditure. For the current programming period (2014 -2018) innovation was 
introduced as a new measure. It is expected that most of the budget will continue to be executed 
under the 3 main measures mentioned above. Support programmes shall contain one or more of 
the following measures:  
 Single Payment Scheme : 
At the beginning of each p rogramming period, Member States have had the possibility to 
provide support to vine -growers by allocating to them payment entitlements under the 
SPS and transferring funds from their national support programme in the wine sector to 
the Single Payment Sche me.  
See Section 4.3.3.1 of this notification.  G/SCM/N/315/EU  
 
- 26 - 
 
   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 wines 
with an indication of the wine grape variety. The EU contribution to promotion activities 
shall not exceed 50% of the eligible expenditure. The measures may consist only o f: 
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 internat ional 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 res ults 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 covering 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.  
 Restructuring and conversion 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 t hat is necessary following mandatory grubbing -up for 
health or phytosanitary reasons on the instructions of the Member State (since 
the 2013 reform);  
o  improvements to vineyard management techniques, in particular the introduction of 
advanced systems of sus tainable production.  
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 reve nue 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 conversion of vineyards does not exceed 50%. 
In regions classified as convergence regions in accordance with Regulation 
(EC) 1083/2006, the EU contribution to the costs of restructuring and conversion 
does not exceed 75%.  G/SCM/N/315/EU  
 
- 27 - 
 
   Green harvesting : 
Green harves ting means the total destruction or removal of grape bunches while still in 
their immature stage, thereby reducing the yield of the relevant area to zero. Support 
for green harvesting contributes to restoring the balance of supply and demand in the 
market in wine in the EU by controlling excessive production in order to prevent market 
crises. It may be granted as compensation in the form of a flat rate payment per hectare 
to be determined by the Member State concerned. The payment does not exceed 50% of 
the sum of the direct costs of the destruction or removal of grape bunches and the loss 
of revenue related to the destruction or removal of grape bunches.  
 Mutual funds : 
Support for the setting -up of mutual funds provides assistance to producers seeking to 
insure themselves against market fluctuations. This support is granted in the form of 
temporary and digressive aid to cover the administrative costs of the setting up of the 
funds.  
 Harvest insurance : 
Support for harvest insurance contributes to safeguarding p roducers' incomes where 
these are affected by natural disasters, adverse climatic events, diseases or pest 
infestations. Support for harvest insurance may be granted in the form of a financial 
EU contribution which must not exceed:  
a. 80% of the cost of t he insurance premiums paid for by producers for insurance 
against losses as a result of adverse climatic events which can be assimilated to 
natural disasters;  
b. 50% of the cost  of the insurance premiums paid for by producers for insurance 
against:  
i. losses referred to in (a) and against other losses caused by adverse climatic 
events;  
ii. losses caused by animals, plant diseases or pest infestations.  
Support for harvest insurance may only be granted if the insurance payments concerned 
do not compensate pro ducers for more than 100% of the income loss suffered, taking 
into account any compensation the producers may have obtained from other support 
schemes related to the insured risk. Support for harvest insurance must not distort 
competition in the insurance market.  
 Investments : 
Support may be granted for tangible or intangible investments in processing facilities 
and winery infrastructure as well as marketing structures and tools intended to improve 
the overall performance of the enterprise and its adaptation  to market demands, as well 
as to increase its competitiveness and shall concern the production or marketing of wine.  
Support under paragraph at its maximum rate is limited to micro, small and medium -
sized enterprises.  
 Innovation (since the 2013 reform thi s is a self -standing measure) : 
Support may be granted for tangible of intangible investments aimed at the development 
of new products, processes and technologies concerning determined grapevine products.  
The support shall be intended to increase the market ability and competitiveness of these 
products and may include an element of knowledge transfer.  G/SCM/N/315/EU  
 
- 28 - 
 
  The maximum aid rate is the same as for the Investments measure.  
 By-product distillation:  
Support may be granted for the voluntary or obligatory distillation of  by-products of 
wine-making. The amount of aid is fixed per % volume and per hectolitre of alcohol 
produced. No aid is paid for the volume of alcohol contained in the by -products to be 
distilled which exceeds 10% in relation to the volume of alcohol contai ned in the wine 
produced. The maximum applicable aid level is based on collection and processing costs. 
The alcohol resulting from the supported distillation is used exclusively for industrial or 
energy purposes so as to avoid distortion of competition.  
4.3.2.9   Promotion of agricultural products   
The promotion policy has been reformed with the adoption of Regulation (EU) No 1144/2014 of the 
European Parliament and of the Council of 22 October 2014 on information provision and 
promotion measures concerning agricultu ral 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 promo tion of agricultural 
products and food on the EU internal market and in third countries. These measures can consist of 
public relations, promotional or publicity actions, participation at events and fairs, in particular 
those that highlight the advantages of EU products, especially in terms of quality, hygiene, food 
safety, nutrition, labelling, animal welfare or environmental friendliness of their production. Also 
covered are information campaigns on the EU system of protected designations of origin (P.D.O ), 
protected geographical indications (P.G.I) and traditional speciality guaranteed (T.S.G.), 
information on EU quality and labelling systems and on "organic farming".  
The financing of the new promotion policy is foreseen to increase progressively from 
EUR 61 million in 2014 to EUR 200 million in 2020 together with higher EU co -financing rates in 
comparison to the previous regime The EU co -finances promotion measures at a rate of 70% for 
simple programmes (programmes submitted by one or more organisations from the same Member 
State), 80% for multi programmes (programmes submitted by at least two organisations from at 
least two Member States or one or more European organisations) and programmes targeting third 
countries, 85% for crisis management programmes and a 5% top on for beneficiaries from 
Member States under financial assistance, whereas the national co -financing disappears. A key 
element of the new promotion policy is the establishment of an annual work programme, which 
sets out the strategic prioriti es for promotion measures in terms of products, schemes and 
markets to be targeted, and the corresponding allocated budgets. The objective is to have a 
dynamic and pro -active policy, adapted each year to emerging market opportunities and the needs 
of the s ector.  
4.3.2.10   Other plant products  
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 coupled.  
4.3.2.11   POSEI - excluding direct aids  
The legal basis for this expenditure is Regulation (EU) 228/2013  of the European Parliament 
and the Council of 13 March 2013 laying down specific measures for agriculture in the outermost 
regions of  the Union and repealing Council Regulation (EC) No 247/2006. Objective factors arising 
as a result of insularity and remoteness of certain regions of the EU impose constraints on 
economic operators and producers in these outermost regions that severely ha ndicap 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.  G/SCM/N/315/EU  
 
- 29 - 
 
  4.3.2.12   Milk and dairy product  
Public intervention  
Public intervention is available for butter produced directly and exclusively from pasteurised cream 
obtained directly and exclusively from cow's milk  in an approved undertaking in the Union of a 
minimum butterfat content, by weight, of 82% and a maximum wat er content, by weight, of 16% 
and for skimmed milk powder of top quality made from cow's milk in an approved undertaking in 
the Union by the spray process, with a minimum protein -content of 34% by weight of the fat free 
dry matter. The reference thresholds  are EUR 246.39 per  100 kg for butter and EUR 169.80 
per 100 kg for skimmed milk powder. When buying -in at fixed price, the public intervention price 
is 90% of the reference threshold for butter and 100% for skimmed milk powder.  
For butter and skimmed milk  powder, public intervention is open from 1 March to 30 September. 
Where quantities offered for public intervention during this period exceed 50 000 tonnes butter or 
109 000 tonnes skimmed milk powder, the Commission suspends buying -in at fixed price for t he 
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.  
An exceptional increase of the maximal quantities to be bought -in at fixed price was decided i n 
2016 in view of the prolonged period of severe market imbalance experienced in the milk sector. 
Global demand for milk and milk products had deteriorated in the course of 2015, notably due to 
the introduction and prolongation of the Russian import ban an d the weakening demand in China, 
the main world importer of dairy products. At the same time milk supply generally increased in the 
main exporting regions. In order to help the milk and milk products sector find a new balance in 
this exceptional market sit uation, the ceilings for the buying -in of butter and skimmed milk powder 
at a fixed price have been increased to 100 000 t butter and 350 000 t. skimmed milk powder for 
the year 2016.  
Private storage  
Aid for private storage may be granted to respond to a p articular 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 pro tected 
geographical indication and with a certain maturing period.  
Since the introduction of the Russian import ban, private storage aid has been made available for 
butter, skimmed milk powder and cheese. The butter and cheese schemes came to an end on 
30 September 2016. The skimmed milk powder scheme ended on 28 February 2017.  
Exceptional support measures  
The Commission may adopt exceptional measures against market disturbance caused by 
significant price rises or falls on internal or external markets or ot her events and market support 
measures related to animal diseases and loss of consumer confidence due to public, animal or 
plant health risks.  
In October 2015, temporary exceptional aid worth EUR 420 million was made available to Member 
States in the form of national envelopes for distribution to livestock farmers. Member States had 
the possibility to provide a nationally -funded "top -up" of up to 100% of these amounts.  
In the autumn of 2016, in order to help the milk and milk products sector find a new bala nce, 
EUR 150 million was  made available to milk producers in the Union who voluntarily engaged in 
reducing cow milk deliveries for a 3 month period, starting in October 2016 . G/SCM/N/315/EU  
 
- 30 - 
 
  In parallel, in order to improve farmers' resilience, a one -time financial grant was made available 
in September 2016 to each Member State within an overall budget of EUR 350 million for milk 
producers and farmers in other livestock sectors who engaged in one or more activities fostering 
economic sustainability and market stabilisation . As in 2015, Member States had the possibility to 
provide a nationally -funded "top -up" of up to 100% of the allocated amounts.  
Apart from the dairy sector, the other livestock sectors that benefited from these two targeted aid 
schemes were pigmeat, beef a nd veal, as well as sheep and goat.  
Production limitation  
The milk quota system ended with effect from 31 March 2015.  
4.3.2.13   Beef and veal   
Public intervention  
As regards the beef and veal sector, the reference threshold is fixed at EUR 2,224/tonne for 
carcasses of male bovine animals of grade R3 as laid down in the EU 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 mar ket 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 pe riod, 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 res tricted 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 
procedu res shall not exceed 85% of the reference threshold.  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
Exceptional market support measures  
The Commission may adopt exceptional measures against market disturbance caused by 
significant price rises or falls on internal or external markets or other events and market support 
measures related to animal diseases an d loss of consumer confidence due to public, animal or 
plant health risks.  
As mentioned in section 4.3.2.12, exceptional aid was granted in both 2015 and 2016 in view of 
the exceptional severe market situation. The aid was primarily used for the dairy sect or, but 
7% were used for the beef and veal sector and 8% of the 2016 exceptional adjustment aid is 
foreseen to be used for the beef meat sector.  
4.3.2.14   Sheepmeat and goatmeat   
Private storage  
Aid for private storage may be granted to respond to a particularly dif ficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
Exceptional market support measures  
The Commission may adopt exceptional measures against market disturbance caused by 
significant price rise s 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/315/EU  
 
- 31 - 
 
  As mentioned in section 4.3.2.12, exceptional aid was granted in b oth 2015 and 2016 in view of 
the exceptional severe market situation. The aid was primarily used for the dairy sector, but 0.4% 
were used for the sheep and goat sector under the 2015 targeted aid and 3% of the 2016 
exceptional adjustment aid is foreseen to  be used for the sheep and goat sector.  
4.3.2.15   Pigmeat  
Private storage  
Aid for private storage may be granted to respond to a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  
Aid for private storage has been granted for pigmeat in 20151 and 20162 given the persisting 
difficult market situation which compromised the financial stability of many farms. In 2015 and 
in 2016, respectively 63 969 and, 90 867 tonnes of pigmeat were put into  storage.  
Exceptional market support measures  
The Commission may adopt exceptional support measures against market disturbance caused by 
significant price rises or falls on internal or external markets or other events and market support 
measures related to  animal diseases and loss of consumer confidence due to public, animal or 
plant health risks.  
As mentioned in section 4.3.2.12, exceptional aid was granted in both 2015 and 2016 in view of 
the exceptional severe market situation. The aid was primarily used  for the dairy sector, but 18% 
were used for the beef and veal sector and 13% of the 2016 exceptional adjustment aid is 
foreseen to be used for the sheep and goat sector.  
4.3.2.16   Eggs and poultrymeat  
Exceptional market support measures  
The Commission may adopt ex ceptional 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 he alth 
risks.  
In 2016 the Commission granted to Italy exceptional support measures for the eggs and 
poultrymeat sectors, which had been heavily affected by the outbreaks of highly pathogenic avian 
influenza of subtype H5N8.3 
4.3.2.17   Bee-keeping   
Special provisions f or 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') aiming to improve general co nditions for production and marketing of 
apicultural products. The measures which may be included in the 'bee -keeping programme' are 
laid down in Regulation (EU) No 1308/2013:  
 technical assistance to beekeepers and groupings of beekeepers;  
 combating beehiv e invaders and diseases, particularly varroasis;  
 rationalisation of transhumance;  
                                                
1 Commission Implementing Regulation (EU) 2015/2334 of 14 December 2015 opening private storage 
for pigmeat and fixing in advance the amount of aid, OJ L 329, 15.12.2015, p. 10 –13. 
2 Commission Implementing Regulation (EU) 2015/360 of 5 March 2015 opening private storage for 
pigmeat and fixing in advance the amount of aid OJ L 62, 6.3.2015, p. 16 –19. 
3 Commission Implementing Regulation (EU) 2016/760 of 13 May 2016 on exceptional s upport 
measures for the eggs and poultrymeat sectors in Italy, OJ L 126, 14.5.2016, p.63.  G/SCM/N/315/EU  
 
- 32 - 
 
   measures to support laboratories carrying out analyses of the physico -chemical 
properties of honey;  
 measures to support the restocking of hives in the EU;  
 cooperation with sp ecialised bodies for the implementation of applied research 
programmes;  
 in the field of beekeeping and apiculture products;  
 Market monitoring;  
 Enhancement of product quality with a view of exploiting the potential of products on the 
market.  
Measures financ ed 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 schem es within the framework of the common 
agricultural policy and repealing Council Regulation (EC) 637/2008 and Council Regulation (EC) 
No 73/2009 . 
The basic payment ensures basic income support for farmers engaged in agricultural activities.  
The basic payme nt is applied either as the basic payment scheme (BPS) or as a transitional 
simplified scheme, the single area payment scheme (SAPS).  
 
The level of direct aids for the period covered by this notification is as follows:  
Direct Payments (EAGF financial year - execution of payment appropriations), 
EUR million  
 2015  2016  
Million EUR  Decoupled  Coupled  Decoupled  Coupled  
SPS (Single Payment Scheme) (1)  29,582. 6  43.1  
SAPS (Single Area Payment Scheme)  7,770.3   4,032.4   
Redistributive Payment  440.1   1,237.1   
BPS (Basic Payment Scheme)    17,857.6   
Payment for agricultural practices beneficial for the 
climate and the environment    11,716.4   
Payment for farmers in areas with natural constraints    2.8  
Payment for young farmers    317.0   
Specific support  500.6  1,398.0  -2.3 5.4 
Cotton   244.0   243.9  
Silkworms   0.4   
Suckler cow   929.1   0.6 
Sheepmeat and goatmeat   28.4  0.4 
POSEI   426.6   426.8  
Voluntary Coupled Support     3,800.6  
Small Farmers Scheme (3)    875.5  32.2 
Other products / measures (2)   -5.9  -0.7 
Reimbursement of financial discipline  791.5  62.4 351.4  43.9 
Total  39,085.0  3,083.0  36,431.0  4,553.1  
Total direct payments  42,168.0  40,984.1  
(1) Additional amounts of aid, Separate Sugar Payment, Separate Fruit and Vegetables payment and 
Separate Soft Fruit payment and other decoupled support are included.  
(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).  
(3) The small farmers scheme  is partly coupled/decoupled reflecting the implementation choices of the 
Member States. The amount of reimbursement is considered decoupled/coupled with the same 
proportion as the rest of the direct payments.  
 G/SCM/N/315/EU  
 
- 33 - 
 
  4.3.3.1   Structure of direct payments and general cond itions   
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 maintain 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 l and 
eligible for payment is too small. These so -called "minimum requirements" vary from country to 
country as it is set by national administrations, but it is generally between €100 and €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 ' (Basic payment scheme [BPS] 
or Single area payment scheme [SAPS], see further section 4.3.3.2) complemented by a series o f 
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 4.3.3.3.2).  
 a payment to young farmers (YFP)  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 payment  to provide improved support to small and 
middle -size farms: Member states may allocate up to 30% of their total direct payments 
national allocations to a redistributive pay ment for the first eligible hectares. The number of 
hectares for which this payment can be granted is limited to a threshold set by national 
authorities (up to 30  hectares or up to the average farm size in Member States in which the 
latter is more than 30  hectares). The amount per hectare is the same for all farmers in the 
country where it is applied, and cannot exceed 65% of the national/regional average direct 
payment per hectare.  
 (where applied) a payment for areas with natural constraints , where farming  conditions 
are particularly difficult, e.g. coastal or mountain areas,  
 (where applied), farmers may benefit from the small farmers scheme (SFS) . The SFS is a 
simplified direct payment scheme granting a one -off payment replacing all other direct 
payments t o farmers who choose to participate. The maximum level of the payment is 
decided at national level, but in any case may not exceed €1,250. The SFS includes 
simplified administrative procedures, and participating farmers are exempt from greening 
obligations and cross -compliance sanctions (see further in secti on 4.3.3.3 ). 
Besides , Member States may opt to apply  voluntary coupled  support (VCS) . The aim of this 
type of support is to create an incentive to maintain the current levels of production in regions or 
in sectors undergoing certain difficulties and that are particularly impo rtant for economic, social or 
environmental reasons. Unlike for decoupled payments, eligibility to the "basic payment" is not a 
pre-requisite to qualify for the VCS.  
 
Moreover, as a transitional provision, Member States applying the SAPS may grant a transi tional 
national aid (TNA) to farmers in sectors for which TNA (or, where relevant, complementary 
national direct payments) was granted in 2013.  
 
The overall amount of direct payments to farmers in any Member State is limited each year by the 
size of that c ountry 's annual allocation (or 'financial envelope ') from the EU budget. National 
authorities can decide which of the various direct payments schemes to finance 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.  
 G/SCM/N/315/EU  
 
- 34 - 
 
  The Act of Accession of Croatia provides for a transitional period for the progressive introduction of 
the CAP direct payments to farmers, from 25% in 2013 to 100% in 2022. It als o establishes the 
possibility for Croatia, during the transitional period and subject to the approval by the 
Commission, to fill the gap by paying farmers national support in the form of Complementary 
National Direct Payments  (CNDPs, commonly known as 'top -ups').  
 
National envelopes:  Direct payments are based on global national envelopes set in Annex II  of 
Regulation (EU) No 1307/2013 (DP regulation) and showed in the below table). These national 
envelopes do not include the financing of the crop specific p ayment for cotton and the support for 
"POSEI". The envelopes are after any transfer of amounts to and from Rural development 
envelopes (only applicable until 2019). The amounts of "reduction" as referred to in Article 11 of 
the DP regulation are not deduct ed and these envelopes are not net payments ceilings. Moreover, 
the envelopes are before application of financial discipline. The national envelopes are the basis for 
setting the ceilings for the various direct payments schemes. Payment related to claim ye ar N are 
paid in financial year N+1. Amounts are in 1000 EUR.  
 
 
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  1,211,89 9 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  
 
 
4.3.3.2   Basic payment   
According to Article 1(b)(i) of Regulation (EU) No 1307/2013, the basic payment is granted either 
in the form of a basic payment scheme (BPS)  or as a transitional simplified scheme, the single 
area payment scheme (SAPS).  Eligibility for the basic payment is a pre -condition to receive 
other decoupled direct payments.  
 
BPS is granted on the basis of annual activation of payment entitlements with eligible hectares. 
Payment entitlements were allocat ed to farmer 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 in formation on the basic payment scheme can be found in this site:  
 
https://ec.europa.eu/agriculture/sites/agriculture/fil es/direct -support/direct -payments/docs/basic -
payment -scheme_en.pdf  (English)  G/SCM/N/315/EU  
 
- 35 - 
 
  As an alternative to BPS, Member States applying SAPS in 2014 may continue to use such scheme 
until 31 December 2020. This regime  facilitates and reduces the administrative burde n with only 
flat-rate payments per eligible ha of agricultural land. The SAPS is a decoupled direct support 
scheme with no, or at most minimal, trade -distorting effects.  
 
The financial ceiling for BPS/SAPS is calculated for each Member State by deducting from the 
[total] national ceiling for direct payments any allocations for other direct payment schemes 
decided by each relevant Member State.  
 
The Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, 
Poland, Slovenia and Slovakia and that of Bulgaria and Romania provide for a transitional period 
for the progressive introduction of the CAP direct payments to farmers in the new Member States, 
from 25% in 2004 to 100% in 2013 (respectively from 25% in 2007 to 100% in 2016  in Bulgaria 
and Romania). It also establishes the possibility for the new Member States, during the transitional 
period and subject to the approval by the Commission, to pay farmers additional support in the 
form of Complementary National Direct Payments  (CNDPs, commonly known as 'top -ups').  
 
4.3.3.3   Greening and cross compliance  
4.3.3.3.1   Cross compliance  
The CAP reform of 2013 implemented by Regulation (EU) No 1306/2013 carries forward the 
principle that there is a link through the cross compliance (CC) system between rec eipt of CAP 
support by farmers and respect of a set of basic rules related to the main public expectations on 
environment, public, animal and plant health and animal welfare. With cross compliance, the CAP 
support is reduced for farmers not respecting thes e basic rules in proportion of the severity, extent 
and/or permanence of the infringement determined.  
 
The 2013 CAP reform provides for exemption from the cross compliance system for farmers 
participating in the Small Farmers Scheme. While these farmers ne ed 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.  
4.3.3.3.2   Green direct paymen t 
The objective of the green direct payment is to enhance the environmental performance of the 
CAP by complementing cross -compliance and second pillar agro -environment -climate schemes. 
The green direct payment of a farmer is, like the other decoupled direc t payments, paid per 
hectare for farmers respecting three annual practices that benefit the environment and the 
climate. These practices include diversifying crops, maintaining permanent grassland and 
dedicating 5% of arable land to ecologically beneficial  elements ('ecological focus areas'). 30% of 
the total direct payments national allocations are dedicated to this payment.  
 
As this is mandatory scheme, farmers who break greening rules will be paid less. Such reductions 
reflect the number of hectares iden tified as non -compliant, taking into account the specific nature 
of the requirement concerned. As of 2017, reductions can be accompanied by administrative 
penalties. In line with the proportionality principle, the size of such penalties depends on the 
severity and scope of non -compliance.  
 
4.3.3.4   Coupled Support   
4.3.3.4.1   Voluntary coupled support  
During the period 2015 -2020, Member States may grant coupled support to farmers operating in 
the following sectors and productions: cereals, oilseeds, protein crops, grain legume s, flax, hemp, 
rice, ,nuts, starch potato, milk and milk products , seeds, sheepmeat and goatmeat , beef and veal, 
olive oil, silk -worms, dried fodder, hops, sugar beet, cane and chicory, fruit and vegetables and 
short rotation coppice.  
 
Coupled support may  only be granted to sectors or regions of a Member State where specific types 
of farming or specific agricultural sectors that are particularly important for economic, social or G/SCM/N/315/EU  
 
- 36 - 
 
  environmental reasons undergo certain difficulties. Furthermore, it may only b e granted to the 
extent necessary to create an incentive to maintain current levels of production in the sectors or 
regions concerned. The support shall take the form of an annual payment and shall be granted 
within defined quantitative limits and be based  on fixed areas and yields or on a fixed number of 
animals. In order to finance the coupled support, Member States may decide to use up to 
8% (13% under specific conditions or more upon approval by the Commission) of their annual 
national ceiling for direc t payments. Those percentages may be increased by up to two percentage 
points for those Member States which decide to use at least 2% of their annual national ceiling for 
direct payments to support production of protein crops under this scheme. Member Stat es may, by 
1 August 2016, review their decision with effect from 2017. On the basis of the Member States' 
decisions, the Commission shall fix corresponding ceilings for coupled support on a yearly basis.  
 
Sectors  Applicable quantitative 
limit (ha/heads)*  Total amount allocated (in MEUR)*  
2015  2016  
Beef and veal  18,616,664  1,706.3  1,701.6  
Milk and milk products  12,321,533  829.21  836.85  
Sheep and goat  41,627,791  477.99  480.87  
Protein crops  4,318,571  427.64  433.01  
Fruit and vegetables  675,186  203.8 208.2  
Sugar beet  497,222  174.25  176.98  
Cereals  1,935,435  86,902  89,104  
Olive oil  886,704  70,393  69,469  
Rice  447,431  56.670  56.402  
Grain legumes  252,983  18,164  17,970  
Starch potato  58,145  17,649  17,684  
Nuts  418,000  14,000  14,000  
Seeds  28,23 8 5,472  5,444  
Hops  8,869  4,530  4,536  
Oilseeds  76,285  1,432  1,894  
Hemp  13,787  1,946  1,948  
Silkworms  11,000  827 818 
Flax 3,936  571 574 
* Total EU decided by Member States (i.e. actual payments to farmers may be lower due to reduction and 
sanctions ap plied)  
 
4.3.3.4.2   Cotton  
The coupled aid is granted per hectare of eligible area of cotton. In order to be eligible, the area 
shall be located on agricultural land authorised by the Member State for cotton production, sown 
under authorised varieties and actually ha rvested under normal growing conditions. The aid is paid 
for cotton of sound and fair merchantable quality. The obligation to maintain coupled support in 
the cotton sector results from Protocol 4 annexed to the Act of accession of Greece and the 
payment is  implemented in accordance with the objectives of that Protocol.  
 
The payments are limited by base areas and fixed yields and reference amounts by Member State 
are established to calculate the specific amounts to be paid per hectare of eligible area.  If the 
eligible cotton area exceeds the basic area, aid is reduced proportionally to the overshot.  
 
Cotton coupled support - Base areas, fixe d yields and reference amounts  
 Base area  Fixed yield  Aid per ha (€/t) * 
Bulgaria  3,342 ha  1.2 tonne/ha  EUR 584.88 (201 5) 
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.  G/SCM/N/315/EU  
 
- 37 - 
 
  4.3.4   POSEI  
The legal basis for this expenditure is Regulation (EU) No  228/201 3. Objective factors arising as a 
result of insularity and remoteness of certain regions of the EU impose constraints on economic 
operators and producers in these outermost regions that severely handicap their activities. 
Therefore specific measures on agr iculture are applied to remedy the difficulties caused by these 
handicaps referred t o in Article 349 of the Treaty.  
4.4  Measures Financed By The European Agricultural Fund For Rural Development 
("Second Pillar" Of The CAP)  
1. Title of the programme  
Common Agri cultural Policy: Rura l Development ("Second Pillar")  
2. Period covered by the notification  
1 January 2015 -31 December 2016  
3. Policy objective and/or purpose of the programme  
Contribute to the achievement of the Common Agricultural Policy's objectives as l aid 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 development.  
4. Background and authority for the programme  
As from 1.1 .2014 Regulation (EU) No 1305/2013 of the European Parliament and the Council 
of 17 December 2013on support for rural development by the European Agricultural Fun for Rural 
Development (EAFRD) and replacing Council Regulation (EC) No 1698/2005. Member Stat es 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 r ural 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 million € for ea ch 
financial  instrument).  
Expenditure (payments) for Rural Development (million EUR)  
Financial instrument  2014  2015  2016  
EAFRD 2014 -2020 225.0  5,252.2  7,809.9  
EAFRD 2007 -2013 10,947.4  6,464.3  4,495.8  
EAGGF Guarantee Section completion of programs 2000 -2006 -1.4 -1.3 -1.0 
EAGGF Guidance Section completion of earlier programs  6.6 64.2 47.8 
Transitional instrument for New Member States Completion of 
2004-2006 programs  0.0 0.0 0.0 
Other  0.0 0.0 0.0 
Total  11,177.6  11,779.4  12,345.0  
 G/SCM/N/315/EU  
 
- 38 - 
 
  8. Duration of the p rogramme  
 
2014-2020 
 
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 develo pment 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 2 2 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 overa ll 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 en vironment often carries a financial cost. The Europe 2020 
Strategy, the EU Environmental 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 
potential.  
Theoretically, individual EU Member States could decide and operate completely independent rural 
development policies. However, this approach would work poorly in practic e. Not all countries in 
the EU would be able to afford the policy which they needed. 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 sustainability 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 com mon 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 Me mber States' 
national or regional budgets.  
The essential rules governing rural development policy for the period 2014 to 2020 as well as the 
policy measures available to Member States and regions, are set out in Council Regulation (EU) 
No 1305/2013 of 17 D ecember 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 l east 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 sustainab le 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-carbon and climate -
resilient economy in the agriculture, food and forestry sectors;  
6. promoting social inclusion, poverty reduction and economic development in rural areas.  
4.5.2 Rural development measures  
 Knowledge transfer and information actions  aims at the  diffusion of scientific 
knowledge and innovative practices, for persons engaged in the agricultural, food and 
forestry sectors as well as SMEs operation in rural areas. Operations supported may 
include training courses, workshops and coaching, but s hall not include courses of G/SCM/N/315/EU  
 
- 39 - 
 
  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 a nd farm/forest exchanges 
and visits.  
 Advisory services, farm management and farm relief services : this measure 
support 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 fo r the improvement of the 
overall performance of their holdings. As a minimum the advisory service to farmers 
shall cover one of the elements mentioned in Article 15(4) of Regulation 
(EU) 1305/2013. Support for the use of advisory services shall be limited to a maximum 
of 1500 € per advice. Support under this measure can also be provided to cover cost 
arising for the setting up of farm and forest advisory services, farm management 
services and farm relief services. Support shall be digressive over a maximum period of 
five years from setting up. Furthermore the measure support 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 fo r EU quality schemes, or for those recognized by the Member 
States which comply with precise criteria or voluntary agricultural product certification 
schemes recognised by Member States as meeting the Union best practice guidelines. 
Schemes, whose sole pur pose is to provide a higher level of control of respect of 
obligatory standards under EU or national law, shall not be eligible for support. 
The support is granted as an annual incentive payment whose level shall be determined 
according to the level of the  fixed costs arising from the first participation in supported 
schemes, for a maximum duration of five years. The support is limited to a maximum 
amount 3,000 € per holding.  
 Supporting groups of producers for information and promotion activities  in the 
internal market for products under food quality schemes is also eligible . Support 
concerns products covere d by the support of the quality schemes mentioned above. 
It shall be limited to a maximum of 70% of the cost.  
 Investments in physical assets  is a support scheme to be carried out in order to 
improve the economic and environmental performance of agricultura l 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 -produ ctive 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 destr uction shall be at least 30% of the relevant agricultural 
production potential.  
 Business start up support for young farmers . Support is granted to persons who 
are less than 40 years of age and are setting up for the first time on an agricultural 
holding as  head of the holding. They must possess adequate occupational skills and 
competence and submit a business plan for the development of their farming activities. 
The support shall be granted up to the maximum amount laid down in the Annex II of 
Regulation (E U) 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 o f Regulation (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 provided to existing small farms G/SCM/N/315/EU  
 
- 40 - 
 
  (as defined by MS) for ensuring their s ustainable 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 populati on. The support covers the 
development of local basic services, including cultural and leisure activities, and 
investments in small -scale infrastructure. Specific derogations for the size exists for the 
investments in broadband and renewable energy. Conser vation and upgrading of the 
rural heritage is also eligible here . The support covers the drawing -up of protection and 
management plans relating to Natura 2000 sites and other places of high natural value, 
environmental awareness actions and investments ass ociated with maintenance, 
restoration and upgrading of the natural heritage and with the development of high 
natural value sites. It also covers support for studies and investments associated with 
maintenance, restoration and upgrading of the cultural heri tage 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 economic targets of the rural development policy. Forests 
has 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. Th erefore the support aims at establishing forests and agroforestry systems, 
prevention and restoration of damaged forests. Moreover the support covers 
investments improving the resilience and environmental value of forests and 
investments in forestry techno logies 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. Secon dly 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 harve sting 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 organisation was recognised. It shall 
be degressive and calculated on the basis of the gr oup's or organisation 's annual 
marketed production, up to the ceilings of 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/reg ions 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 farm ers, 
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 cove r 
only those commitments going beyond the relevant mandatory standards established 
pursuant to Chapter I of Title VI of Regulation (EU) No 1306/2013, the relevant criteria 
and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of 
Article 4(1) of Regulation (EU) No 1307/2013, and relevant minimum requirements for 
fertiliser and plant protection product use as well as other relevant mandatory 
requirements established by national law and identified in the programme. The 
commitments are u ndertaken as a general rule for 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. Th e payments are granted annually and cover all or part of the additional 
costs and income foregone resulting from the commitments made. Where necessary, G/SCM/N/315/EU  
 
- 41 - 
 
  they may cover also transaction cost. When calculating the payments, Member States 
must deduct the amoun t necessary in order to exclude double funding of the greening 
practices in Pillar I. Where appropriate, the beneficiaries may be selected on the basis of 
calls for tender, applying criteria of economic and environmental efficiency. Support is 
limited to t he maximum amounts 450 -900 € per hectare and 200 € per Livestock Unit 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 u nder this 
measure is dedicated for the conversion to or / and 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 p ractices.  
 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 baseli ne level in the areas concerned resulting from the implementation of Birds 
and Habitats Directives and Water Framework Directive (WFD) when compared to the 
situation of farmers and foresters in other areas not concerned by these disadvantages. 
The compensa tion under this measure is to help address the specific disadvantages and 
to contribute to the effective management of Natura 2000 sites and river basin areas 
and to ensure the protection of those sites and associated water bodies. Support is 
limited to th e maximum amount of 500€/ha in the initial period not exceeding five years 
after which the maximum amount is 200€/ha. For Water Framework Directive payment 
the minimum amount is 50€/ha.  
 Payments to areas facing natural or other specific constraints  compens ate 
farmers annually per hectare for all or part of the additional costs and income foregone 
related to the constraints for agricultural production in the area concerned. Payments 
encourage continued use of agricultural land, contribute to maintaining the countryside 
and to maintain and promote sustainable farming systems. In the 2014 -2020 
programming period, areas other than mountain areas facing significant natural 
constraints are to be delimited on the basis of bio -physical criteria. The minimum 
amount o f payment is 25 EUR/ha/year, the maximum amount varies: on mountain areas 
up to EUR 450 and on other constraint areas the maximum payment may be up to 
EUR 250/ha, with a possibility to give higher support in duly justified cases.  
 Animal welfare payments . Animal welfare commitments shall provide upgraded 
standards of production methods and support farmers to prepare for possible higher 
standards in the future. Support under the measure "Animal welfare" can be paid for 
specific commitments and practises which  go beyond the existing standards and which 
have a direct effect in improving animal welfare. Besides the "Animal welfare" measure 
as laid down in Article 33 of Regulation (EU) No 1305/2013, animal welfare may be 
supported under several other measures of R ural Development. The payments cover all 
or part of the additional costs and income foregone resulting from the commitment 
made. Where necessary, they may cover also transaction costs. Support is limited to the 
maximum amount of 500€/LU.  
 The Co-operation measure , as laid down in art 35 of Regulation (EU) No 1305/2013, 
can support the setting -up, running and direct costs of a wide range of cooperation 
projects. It can support Operational Groups under the European Innovation Partnership 
Agricultural Producti vity 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, 
co-operation amo ng 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, G/SCM/N/315/EU  
 
- 42 - 
 
  drawing -up of forest management plans, diversification of farming activities into 
activities concerning h ealth care, social integration, community -supported agriculture 
and education about the environment and food. The Co -operation measure should be 
used to make new things happen. It must not be used to support joint activities which 
are already taking place but it can support existing entities embarking on new projects. 
Annex II to Regulation (EU) 1305/2013 does not specify support rates for the 
"Co-operation" measure. Therefore, the maximum permitted support rate for a given 
operation depends on whether the operation falls within the scope of Art. 42 TFEU 
(i.e. whether it requires state aid clearance), and on whether the maximum support rate 
of a different rural development measure applies (pursuant to Art. 35(6) of Regulation 
(EU) 1305/2013).  
 The risk manage ment  measure has been newly introduced under the second pillar of 
the CAP (Rural Development) for the period 2014 -2020. This measure consists of  three 
sub-measures: contribution to farmers for (1) insurance premiums, support to 
(2) mutual funds and to (3) an income stabilisation tool (IST). The insurance and mutual 
funds sub -measures support affiliated farmers in managing their production risks as 
regards losses to their animal husbandry or crop caused by crisis events including 
adverse climatic events, ani mal 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 income losses. To trigger the compensation, the losses have to 
exceed 30% of the av erage 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 su pport rate is 65%. The insurance sub -measure provides financial 
contributions to the insurance premium paid by the farmer, while the mutual funds sub -
measure and the IST (both managed by mutual funds) support the administrative cost 
of setting up of mutual  funds, provide financial contributions to the compensatory 
amounts paid in case of crisis and contribute to the interest on commercial loans taken 
out by the mutual fund for the purpose of paying the compensatory amounts to farmers. 
No contribution is mad e to the initial capital stock of the mutual funds.  
 Finally, LEADER  is an integrated territorial development tool on sub -regional ("local") 
level. It  directly contributes to the balanced territorial development of rural areas, which 
is one of the overall o bjectives 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 actio n group's co -operation activities; running costs 
linked to the management of the implementation of the community -led local 
development strategy and animation of the community -led local development  
 
4.6  IPARD   
1. Title of the programme  
 
IPARD, the Rural Develop ment programme under the Instrume nt for Pre -accession Assistance  
  
2. Period covered by the notification  
 
1 January 201 5-31 December 201 6 
 
3. Policy objective and/or purpose of the programme  
 
The objective of IPARD is to provide assistance for the progress ive alignment of agricultural sector 
in pre -accession countries with Union standards, while pursuing balanced territorial development 
of rural areas and increasing food -safety of those countries as well as their ability to cope with 
competitive pressure; t he investment support is to be channelled through management and G/SCM/N/315/EU  
 
- 43 - 
 
  control systems which are compliant with good governance standards of a modern public 
administration.   
 
4. Background and authority for the programme  
 
Legal basis 2014 : Regulation (EU) No 231 /2014 of the European Parliament and of the Council of 
11 March 2014 establishing an Instrument for Pre -accession Assistance (IPA II).  
 
5. Form of assistance granted - Grants from EU budget  
 
IPARD operational programmes co -financed by the EU budget and the  IPARD beneficiary countries.  
 
6. To whom and how the assistance is provided  
 
The aid is co -financed by the European Commission together with the IPARD beneficiary countries 
and implemented through multi -annual operational programmes approved by the Commis sion. By 
means of indirect management, the budget implementation tasks for each measure of every 
programme,  covering selection, approval, controls and financial execution of the individual 
projects, are entrusted to the IPARD beneficiary countries. Aid to final recipients is paid in the form 
of grants.  
 
7. Total expenditure under the programme   
 
Expenditure for pre -accession (million EUR)  
Financial instrument  2014  2015  2016  
Ipard  158.7  201.9  339.2  
8. Duration of the programme  
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 operational programmes to the 
pre-accession countries in progressive alignment with the standards and poli cies of the European 
Union, including where appropriate the acquis communautaire , with a view to membership.  
As part of agriculture and rural development policy area, IPARD programmes shall support 
countries in their preparation for the implementation and management of the Common Agricultural 
Policy. In particular, it shall contribute to the sustainability of the agricultural sector and rural 
development and to the public administration reform in the pre -accession countries allowing 
setting up of the manage ment and control structures suitable for managing post -accession 
EU-funded rural development programmes. During 2013, the countries eligible for IPARD were 
Turkey, Croatia and the Former Yugoslav Republic of Macedonia.  
In 2014, with a change in policy app roach, all pre -accession countries became eligible, subject to 
the presence of appropriate management and control capacities. IPARD II programmes h ave been 
adopted for Albania, the Former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. 
No en trustment for budget implementation tasks has been granted in 2016 under IPARD  II; 
therefore, no expenditure was made in 2016.  G/SCM/N/315/EU  
 
- 44 - 
 
  5  EUROPEAN FISHERIES  FUND (EFF)  
EU Funds  
1. Title of the measure  
 
The European Fisheries Fund (EFF) and the European Maritime and F isheries Fund (EMFF)  
 
2. Period covered by the notification  
 
2016 is the most recently completed calendar year.  To be noted: 2015 was the final year of 
spending for the programmes funded by the EFF. The final reports and final payment applications 
reflecti ng implementation and spending for the entire programming period have been submitted by 
31 March 2017.  
 
Since 1 January 2014, the EU has a reformed Common Fisheries Policy (CFP)4 which aims to 
ensure that fishing and aquaculture are environmentally, econom ically and socially sustainable and 
that they provide a source of healthy food for EU citizens. Among its objectives, the CFP aims to 
foster a dynamic fishing industry and ensure a fair standard of living for fishing communities. The 
new CFP has four main policy areas: Fisheries management, International policy, Market and trade 
policy, and the EMFF 2014 -2020.  
 
Delays in adopting the EMFF regulation had a knock -on effect on adoption of the Operational 
Programmes.  However all 27 programmes were adopted by th e end of 2015 and are currently 
proceeding with implementation.  
 
3. Policy objectives and/or purpose  
 
The EMFF promotes sustainable fisheries and aquaculture and fosters the implementation of 
measures that are subject to new rules to ensure better complia nce of Member States and 
operators with the objectives, rules and targets of the reformed Common Fisheries Policy (CFP).  
 
The EMFF includes funding opportunities for the protection of the environment through measures 
in support of fisheries resources manag ement, including the transition to maximum sustainable 
yield (MSY), the introduction of the landing obligation and the adoption of long term management 
plans. The EMFF also encourages producer organisations to implement the new CFP through new 
management t ools (i.e. production and marketing plans).  Under the EMFF, the market intervention 
mechanism has significantly reduced in scope and will be phased -out after 2018.  
 
In addition, 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. Last but not least, 
the budget for fisheries control has also been considerably enlarged to ensure better compliance 
with CFP rules5. 
 
The EMFF also supports the I ntegrated 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 initiatives developed in various sectors across the  
board like maritime spatial planning, integrated maritime surveillance and marine knowledge.  
 
The EMFF's key objectives are thus:  
 To help fishermen to adapt to new sustainable fishing practices, to diversify their sources 
of income and to make the sector generally more competitive. The European Maritime 
and Fisheries Fund facilitates the Common Fisheries Policy and its objectives of a socially 
and economically sust ainable future for the sector.  
                                                
4 Regulation (EU) No 1380/2013 of 11 December 2013 (OJ L 354 of 28.12.2013)  
5 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/315/EU  
 
- 45 - 
 
   The EMFF also invests in the competitiveness of the fisheries,  aquaculture and 
processing sectors. It focusses mainly on supporting innovation in the development or 
introduction of new or substantially improved products, pieces of equipment, processes, 
techniques, management and organisation systems. Marketing and pr oduction plans and 
the development of new markets, together with diversification and complementary 
sources of income, are privileged as ways to increase income.  
 The EMFF also plays a significant role 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 
developm ent of fisheries areas under the EFF.  The EMFF sustains the implementation of 
local development strategies in fisheries and aquaculture areas intended to add value, 
create jobs  and attract young 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.  
4.  Background and authority  
As regards the EMFF, the Treaty of the Functioni ng 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 f or the management and control of programmes. Member States 
should have the primary responsibility, through their management and control systems, for the 
implementation and control of the operations in programmes.  
5. The form of public support  
Both the EFF (in the 2007 -2013 period) and the EMFF (in the 2014 -2020 period) were and are 
used to co -finance projects, along with national funding.  Each Member State is allocated a share of 
the total Fund budget based on the size of its fishing industry. Each Member S tate 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 Commissi on are jointly responsible for the implementation 
of the programme.  
Under the EFF, 98.5% of the support was provided in the form of grants; a 1.5% is delivered by 
financial instruments (FIs), normally using guarantees and loans which are repayable in natur e. 
Six Member States have used FIs in the period 2007 -2013 (Bulgaria, Romania, Greece, Latvia, 
Estonia and The Netherlands). For the EMFF, at least nine Member States are expected to use FIs. 
Spain is in the process of establishing a fund of funds which wi ll be managed by the EIB with €57m 
in total available.  
6. To whom and how the public support is provided  
Under the EMFF, beneficiaries are selected on the basis of selection criteria set by the Managing 
Authority.  Beneficiaries can include fishermen, fishe rmen 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 t he compliance by Member States and 
operators with the objectives, rules and targets of the CFP, in particular the control obligations, the 
rules against illegal, unregulated and unreported fishing and the data collection. This principle 
existed under the E FF but has been given more importance under the EMFF.  
Member States have to publish, on a single website or portal, a list of operations supported under 
the EMFF along with the totals of financial support. These lists must be updated at least every six 
months. This is particularly important in the prevention of funding of beneficiaries involved in 
illegal fishing activities.  G/SCM/N/315/EU  
 
- 46 - 
 
  7. Total budget of the programme  
The EMFF is the financial support tool of the CFP and the Integrated Maritime Policy (IMP). Its total  
financial envelop is €6.4 billion (€5.75 billion in shared management and €0.65 billion in direct 
management). As of May 2017, €330m has been paid (this includes pre -financing payments).  
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 fo r 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 ". 
The closure documents for the EFF  2007-2013 programming period have been submitted.  EUR 4.3 
bn was available for the period, of which €  3.65bn was used, i.e. 84.9% of the initial funding was 
used.  
8. Duration of the programme  
The EFF prog ramming period was from: 2007 -2013 (31 December 201 5 by virtue of the n+2  rule) 
The EMFF programming period is from 2014 to 2020 (31 December 2023 by virtue of the new 
n+3 rule).  
9. Trade effects  
Given that the EMFF's main objective is to support environmentally sustainable, resource efficient, 
competitive  fisheries which 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.  G/SCM/N/315/EU  
 
- 47 - 
 
  In addition, as indicated in the EU's 2013 notification, the EU has a shortfall in fisheries and 
aquaculture products and it is a major importer of these products from the rest of the world; 
hence, the structural support granted under EU funds has very limited influence on this situation.  
Finally, under EU State aid legislat ion, 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 im ported 
goods is incompatible with the internal market, and hence it is not permitted.  
Details on the amounts of State aid for the fishery and aquaculture sector granted by Member 
States beyond co -financing EFF measures should be requested from Member State s. 
6  PROGRAMMES IN THE FI ELD OF RESEARCH  
6.1  Framework programmes  
1. Title of the subsidy programme  
- the Seventh Framework Programme of the European Community for research, 
technological development and demonstration activities (2007 -2013),  
- the Framework Pro gramme of the European Atomic Energy Community (EURATOM) 
for nuclear research and training activities (2012 -2013),  
- the Horizon 2020 EU Framework Programme for Research and Innovation (2014 to 
2020), and  
- the Research and Training Programme of the Europ ean 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 follow ing paragraphs.  
2. Period covered  
Calendar years of 2015 and 2016  
3. Policy objective  
Financial participation in EU research and technological development (RTD) activities during the 
period 2015 and 2016 is provided through the above -mentioned framework pr ogrammes.  
The seventh framework programme of the European Union is aimed at strengthening the scientific 
and technological bases of Community industry, encouraging the development of its 
competitiveness and contributing to the implementation of the other E uropean Union policies 
under the Treaty. These objectives and the activities to be undertaken are stated in the Treaty and 
further implemented through the Decision adopting this framework programme 
(Decision  No. 1982/2006/EC of 18 December 20066). 
The fram ework programmes of the European Atomic Energy Community have two main parts: 
nuclear fission and controlled thermonuclear fusion (excluded). The objectives and activities to be 
undertaken are set out in the decisions adopting these framework programmes 
(2006/970/Euratom of 18  December  20027 of 2012/93/Euratom of 19 December 20118) and 
2013/1314 of 16 December 2013.9 
                                                
6 OJ L 412, 30.12.2006, p. 1.  
7 OJ L 400, 30.12.2006, p.  1. 
8 OJ L 47, 18.2.2012, p. 25.  
9 OJ L 347, 20.12.2013, p.  948. G/SCM/N/315/EU  
 
- 48 - 
 
  The activities under these framework programmes relate to fundamental research, industrial 
research or pre -competitive development. Financing of product development is excluded.  
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, sm all and medium -sized enterprises (SMEs) and innovation, and 
tackling societal challenges, in order to respond directly to the challenges identified in the 
Europe  2020 strategy by supporting activities covering the entire spectrum from research to 
market.  
These objectives and activities are implemented through the Decision establishing a specific 
programme implementing Horizon 2020 of 3 December 2013.10 
The implementation of Horizon 2020 and the Euratom Programme is aimed to respond to the 
evolving opportunit ies and needs of science and technology, industry, policies and 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 A tomic Energy Community.  
The legal framework of the framework programmes consists of a number of main legal and 
implementing acts:  
A Decision or Regulation by the Council on the "Framework Programme":  
- EC: Decision No. 1982/2006/EC of the European Parliame nt and of the Council of 
18 December 2006, OJ L 412, 30.12.2006, p. 1;  
- Euratom: Council Decision 2006/970/Euratom of 18 December 2006, OJ L 400, 
30.12.2006, p. 60 and Council Decision 2012/93/Euratom of 19 December 2011, 
OJ L 47, 18 February 2012, p. 25;  
-  EU: Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 
11 December 2013 establishing Horizon 2020 - the Framework Programme for 
Research and Innovation (2014 -2020), OJ L347, 20 December 2013, page 105;  
- Euratom: Council Regu lation (EURATOM) No 1314/2013 of 16 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":  
- EC: Specific Programmes "Cooperation", "Ideas", "People", "Capacities" and "Direct 
Actions by the Joint Research Centre" - Council Decisions 2006/971 -975/EC of 
19 December 2007, OJ L 400, 30.12.2006, p. 86, 243, 272, 299 and 368 respectively;  
- Euratom: Specific Programmes "Euratom" and "Direct Actions by the Joint Research 
Centre" - Council Decisions 2006/976 and 977/Euratom of 19 December 2006, OJ 
L 400, 30.12.2006, p. 404 and 434 and Council Decisions 2012/94 and 
2012/95/Euratom of 19 December 2011, p. 33 and 40;  
- EU: Council Decision of 3 December 2013 establishing the specific programme 
implementing Horizon 2020 - the Framework Programme for Researc h 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.  
                                                
10 OJ L 347, 20.12.2013, p. 965.  G/SCM/N/315/EU  
 
- 49 - 
 
  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):  
- EC: Regulation (EC) No. 1906/2006 of the European Parliament and of the Council of 
18 December 2006, OJ L 391, 30.12.2006, p. 1  
- Euratom: Council Regula tion (Euratom) No. 1908/2006 of 19 December 2006, 
OJ L 400, 30.12.2006, p. 1  
- EU: Regulation (EU) No 1290/2013 of the European Parliament and of the Council 
of 11 December 2013 laying down rules for participation and dissemination in "Horizon 
2020-the Fra mework Programme for research and Innovation (2014 -2020) and 
repealing Regulation (EC) No 1906/2006, OJ L 347, 20.12.2013, p. 81.  
Work programmes are adopted specifying the research topics and other conditions for the award of 
grants are adopted, in genera l, 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:  
http://ec.europa.eu/research/participants/portal/desktop/en/home.html  
5. Form of the subsidy  
Support to RTD activities is 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 participants established within the European Union. 
Legal entities established in a country that has signed an association agreement (associated 
country) may partici pate in a project and receive EU funding from the Framework Programme on 
the same terms as those established in Member States. Legal entities established in other 
countries may receive funding under certain conditions.  
In general, research projects must in clude the participation of at least three independent legal 
entities each established in a different Member State or associated country.  
The grant is awarded mainly on the basis of the scientific excellence to projects submitted by 
consortia of universitie s, research organisations and undertakings following, as a general rule, an 
invitation for proposals and an evaluation procedure with independent experts and selection 
procedure. The undertakings apply in function of their interest in carrying out a resear ch project 
on a specific research topic in collaboration with other partners.  
The amount of the grant is typically calculated as a percentage of eligible costs of the project, 
depending on the nature of the activity concerned. Eligible costs are defined in  the Rules for 
Participation.  
7. Amount of subsidy  
2015 -2016  Total amounts granted  
(in millions of EUR)  
Seventh framework programme of the European Community for research, 
technological development and demonstration activities  77 
Horizon 2020 EU Framewor k programme for Research and Innovation  18,083  
Seventh framework programme of the European Atomic Energy 
Community (EURATOM) (excluding Fusion grants)  0 
Programme of the European Atomic Energy Community (EURATOM) 
complementing Horizon 2020 (excluding Fus ion grants)  90 
Total  18,250  G/SCM/N/315/EU  
 
- 50 - 
 
  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 re quired 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 th e 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 encouraged and su pported, which serves the public interest. One of the 
main benefits lies in establishing links among research community partners, within Europe but also 
with non -EU countries.  
The economic impact of industrially oriented programmes can be assessed only sev eral 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 L1 30/7 dated 20.5.2008.  
The programme is closely co -ordinated with other activities, carried out either in the Member 
States or existing EU research programmes, such as the Framework Programme of the European 
Community for research, technological development  and demonstration activities. In order to 
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 informat ion between projects financed under this programme and those 
financed under the Research Framework Programme.  
The programme related documents and the information package are available on CORDIS at: 
http://ec.europa.eu/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 supp ort and preparatory actions.  
(1) Research, Pilot and Demonstration:  
Research projects are intended to cover investigative or experimental work with the aim of 
acquiring further knowledge. The financial contribution of the Union is up to 60% of the allowabl e 
costs.  
Pilot projects address the construction, operation and development of an installation or a 
significant part of an installation on an appropriate scale. These installations should have a 
sufficient scale for use. They should allow the investigation  of potential for putting theoretical or 
laboratory results either into practice or to increase the reliability of the technical and economic G/SCM/N/315/EU  
 
- 51 - 
 
  data needed to progress to the demonstration stage, and in certain cases to the industrial and/or 
commercial stage . The financial contribution of the Union is up to 50% of the allowable costs.  
Demonstration project: aim at constructing and/or operating an industrial -scale installation or a 
significant part of an industrial -scale installation. Such projects aim to brin g together all the 
technical and economic data in order to proceed with the industrial and/or commercial exploitation 
of the technology at minimum risk. The financial contribution of the Union is up to 50% of the 
allowable costs.  
(1) Accompanying measures are designed to complement and/or co -ordinate 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 funded research projects are made public and can be 
acquired against a small fee by any organisation or individual, as provided for under Article 4 of 
annex III of the model contract. This allows for a wide and non -discriminatory dissemination of the 
research results.  
Total EC support allocated to coal and steel projects in the period 2015 and 2016 are:  
Year 2015  2016  
Support in million of € 46 42 
7  THE EUROPEAN UNION'S  STRUCTURAL ACTIONS  
The Union's structural actions (comprising the Structural Fu nds and the Cohesion Fund) are 
intended to strengthen the economic and social cohesion of the Union, in particular by reducing 
disparities between the levels of development of the various regions and the backwardness of the 
least-favoured regions.  
The yea rs 2015 and 2016 concern two legislative packages: 2007 -2013 and 2014 -2020  
For both legislative periods the legislative package is composed of the following elements:  
- A general regulation which defines common rules, applicable to the European Regional 
Development Fund (ERDF), European Social Fund (ESF) and the Cohesion Fund (CF). Based 
on the principle of 'shared management' between the Union, the Member States and the 
regions, this regulation offers a new programming process as well as new norms for 
financially managing, controlling and evaluating the projects.  
- A regulation for each of the sources of financing (ERDF, ESF, CF and the Instrument for 
Pre-Accession Assistance (IPA)).  
- A new regulation creating the possibility to create a cross -border auth ority to carry out 
cooperation programmes.  
Outturn of payment appropriations in 2015 and 2016 per Fund (in EUR million):  
Fund  Total 
appropriations 
2015  Outturn in 2015  Total 
appropriations 
2016  Outturn in 2016  
ERDF  27,907  27,899  22,709  20,818  
CF 11,742  11,739  7,375  7,359  
ESF 9,253  9,242  9,290  7,792  
These structural actions are required to comply with the Union's rules on the provision of state aid 
(Articles 107 -108 of the TFEU).  G/SCM/N/315/EU  
 
- 52 - 
 
  The structural actions are notified in the spirit of transparency. The aid involved is largely devoted 
to the least -developed areas of the EU, and the majority of aid goes to finance infrastructure or to 
assist individuals directly, without necessarily benefiting commercial enterprises. Consequently, as 
stated at the beginning of  this document, the notification of a particular fund does not prejudge 
the status of the aid involved.  
7.1  European Regional Development Fund  
1. Title of the programme  
European R egional Development Fund (ERDF)  
2. Period covered by the notification  
2015, 2016  
3. Programming period  
The period covered by the notification refers to programming periods: 2007 -2013 and 2014 -2020. 
(Please note that programmes under the programming period 2007 -2013 are now being closed).  
4. Legal basis  
Articles 174 and 176 of the TFEU.  
For the programming period 2007 -2013, the legal basis is:  
- Regulation (EC) No 1083/2003 of 11 July 2006 laying down provisions on the European 
Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing 
Regulation (EC) No 1260 /1999;  
- Regulation (EC) No 1080/2006 Regulation (EC) of the European Parliament and of the 
Council of 5 July 2006 on the European Regional Development Fund and repealing 
Regulation (EC) No 1783/1999;  
- Regulation (EC) No 1828/2006 of 8 December 2006 setti ng out rules for the implementation 
of Council Regulation (EC) No 1083/2006 laying down general provisions on the European 
Regional Development Fund, the European Social Fund and the Cohesion Fund and of 
Regulation (EC) No 1080/2006 of the European  Parliam ent and of the Council on the 
European Regional Development Fund.  
For the programming period 2014 -2020, the legal basis is:  
- Regulation (EC) 1303/2013 of 17 December 2013 laying down common provisions on the 
European Regional Development Fund, the Europea n 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 D evelopment 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 the European Parliament and of the Council laying down 
common provisions on the Eur opean 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, th e European Social Fund, the Cohesion Fund and the European 
Maritime and Fisheries Fund.  G/SCM/N/315/EU  
 
- 53 - 
 
  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 t o the creation or maintenance of jobs;  
 investment in infrastructure;  
 development of endogenous potential by measures which support regional and local 
development.  
6. Objectives  
Regional policy targets all regions and cities in the European Union in order t o support job 
creation, business competitiveness, economic growth, sustainable development, and improve 
citizens' quality of life.  
In 2007 -2013 the objectives are the following:  
- The Convergence objective, which shall be aimed at speeding up the convergen ce of the 
least-developed Member States and regions by improving conditions for growth and 
employment through the increase and improvement of the quality of investment in physical 
and human capital, the development of innovation and of the knowledge societ y, 
adaptability to economic and social changes, the protection and improvement of the 
environment, and administrative efficiency. This objective is financed by the ERDF, the ESF 
and the CF.  
- The Regional competitiveness and employment objective, which sha ll, outside the least -
developed regions, be aimed at strengthening regions' competitiveness and attractiveness 
as well as employment by anticipating economic and social changes, including those linked 
to the opening of trade, through the increase and impro vement of the quality of investment 
in human capital, innovation and the promotion of the knowledge society, entrepreneurship, 
the protection and improvement of the environment, and the improvement of accessibility, 
adaptability of workers and businesses a s well as the development of inclusive job markets. 
This objective is financed by the ERDF and the ESF.  
- The European territorial cooperation objective, which shall be aimed at strengthening 
cross-border cooperation through joint local and regional initia tives, strengthening 
transnational cooperation by means of actions conducive to integrated territorial 
development linked to the Union priorities, and strengthening interregional cooperation and 
exchange of experience at the appropriate territorial level. This objective is financed by 
the ERDF.  
For the period 2014 -2020 the ERDF focuses its investments on several key priority areas. This is 
known as 'thematic concentration':  
- Innovation and research;  
- The digital agenda;  
- Support for small and medium -sized 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 transitio n 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 re gions: 15%; and  
Less developed regions: 12%.  G/SCM/N/315/EU  
 
- 54 - 
 
  7. Eligibility  
The rules on eligibility are determined at the national level, except when there are general rules 
laid down in the applicable EU legislation.  
The eligibility in the period 2007 -2013 is as follo ws: 
- The convergence objective : The areas eligible for the convergence objective combine the 
regions eligible on a regional criteria basis (GDP is less than 75% of the Union average) and 
Member States who are eligible for the Cohesion Fund on a national c riteria basis (GNI less 
than 90% of the European average). Transitional support is granted for regions 
corresponding to level 2 of the common classification of territorial units for statistics 
(hereinafter NUTS level 2) within the meaning of Regulation (EC ) No. 1059/2003, which 
were covered by Objective 1 in the previous period but whose GDP exceeds 75% of the 
EU-15 GDP average (called "phasing -in"). 
- Regional competitiveness and employment objective : The European Union regions which are 
not eligible for t he convergence objective or for the transitional support of the regional 
competitiveness and employment "phasing in" objective are all eligible for the regional 
competitiveness and employment objective.  
- European territorial cooperation objective : The are as eligible are divided in three:  
- For cross -border cooperation:  NUTS level 3 regions are eligible, along all the 
land-based internal borders and some external borders, along maritime borders 
separated by a maximum distance of 150 km.  
- For transnational cooperation: all the regions are eligible but, in consultation with the 
Member States, the Commission has identified 13 cooperation areas (Northern 
Periphery, Baltic Sea, North West Europe, North Sea, Atlantic Coast, South West 
Europe, Alpine  Space, East -Central Europe, Mediterranean, South -East Europe, 
Acores -Madeira -Canarias, Indian Ocean Area, Caribbean  Area).  
- For interregional  cooperation: all the European regions are eligible.  
In the period 2014 -2020, resources for the Investment for growth and jobs goal are allocated 
among the following three categories of regions:  
(a) less developed regions, whose GDP per capita is less than 75% of the average GDP of 
the EU-27; 
(b) transition regions, whose GDP per capita is between 75% and 90% of the average GDP of  
the EU -27; 
(c) more developed regions, whose GDP per capita is above 90% of the average GDP of the 
EU-27. 
8. Principles of intervention  
The principles of intervention are: complementarity, coherence, coordination, conformity and 
additionally, proportional ity, equality between men and women and non -discrimination, 
sustainable development and using the Funds to focus on the Lisbon strategy priorities.  
9. Budget  
For the period 2007 -2013, the European Council agreed in December 2005 on the budget for the 
period 2007 -2013 and allocated € 347  billion on Structural and Cohesion Funds of which 81.5% is 
planned to be spent in the "Convergence" regions. Based on simplified procedures, nearly all of the 
436 programmes covering all EU regions and Member States were ado pted before the end 
of 2007.  G/SCM/N/315/EU  
 
- 55 - 
 
  In the period 2007 -2013, cohesion policy benefited from 35.7% of the total EU  budget or 
€ 347.41  billion (at current prices). 81.54% of this budget was for the Convergence objective, 
15.95% for the Regional Competitiveness and Employment and 2.52% for the European Territorial 
Cooperation.  
For the period 2014 -2020, economic, social and territorial cohesion will benefit from 1/3 of the 
EU budget amounting to close to EUR 367 billion (at current prices)11.  
10. Financial allocations  in commitment appropriations per year in 2014 -2020 
Please note that this data covers Heading 1b of the EU budget (economic, social and territorial 
cohesion):  
2014 -2020 (EUR million, current prices)  
 TOTAL  
2014  36,263  
2015  60,378  
2016  50,798  
2017  52,447 
2018  54,031  
2019  55,669  
2020  57,274  
Sum:  366,860  
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 develo pment. It does this through 
geographic and financial targeting (concentration), governance processes and evaluation 
mechanisms. Within the context of providing financial assistance to economic operators, cohesion 
policy financing must respect the State aid  rules where relevant.  
In line with EU cohesion policy, the State aid Guidelines focus regional aid on the most deprived 
regions of the enlarged Union, while allowing for the need to improve competitiveness and to 
provide for a smooth transition. The use o f the Structural Funds by national authorities is subject 
to EU state aid rules.  
12. Trade effects  
Because the Funds are designed to alleviate disparities between regions within the Union, and 
because the aid is paid out on a horizontal basis, within eligi ble regions, it is considered that the 
trade effects are minimal.  
__________  
                                                
11 Source: "Analysis of the budgetary implementation of the European Structural and Investment Funds 
in 2016", May 2017. DG Budget, European Commission.