G/SCM/N/253/EU  
 
29 July 2013  
(13-4064)  Page: 1/45  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF 
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
The following notification, dated 12 July 2013, is be ing circulated at the request of the Delegation 
of the European Union. 
 
_______________ 
 
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  EUROPEAN UNION  
 
 
TABLE OF CONTENTS 
 
1   INTROD UCTION  .......................................................................................................... 3  
1.1   Structure of  Notification.............................................................................................. 3  
1.2   Period Covered .......................................................................................................... 3  
1.3   Presentation of Notifica tion ......................................................................................... 3  
1.4   Status of Subsidies .................................................................................................... 3 
2   EUROPEAN UN ION SUBSIDIES .................................................................................... 3  
3   TRANS EUROPEAN NETWORK - ENERGY (TEN-E) PROGRAMME ................................... 3  
4   COMMON AGRICULTUR AL POLICY (CAP) ..................................................................... 5  
4.1   General Ob servations ................................................................................................. 5  
4.1.1   The CAP reform process ........................................................................................... 5  
4.1.2   Financing the CAP ................................................................................................... 6  
4.1.3   Information on the Internet ...................................................................................... 6  
4.2   European Agricultural  Guarantee Fund  (EAGF) ............................................................... 6  
4.3   Measures Financed Through The EAGF ("First Pillar " Of The Cap) ...................................... 7  
4.3.1   Expo rt refunds ....................................................................................................... 7 
4.3.2   Interventions in agri cultural market s per se ctor........................................................... 8  
4.3.3   Dire ct aids ........................................................................................................... . 20 
4.4   European Agricultural Fund  For Rural Develo pment (E AFRD) ........................................... 25 
4.5   Measures Financed By The European Agricultural Fund For Rural Development 
("Second Pillar" Of The CAP) .............................................................................................. 26 
4.5.1   Policy  framework ................................................................................................... 26 
4.5.2   Rural development measures................................................................................... 27 
4.6   IPARD ..................................................................................................................... 31 
4.7   Measures Fi nanced By  IPARD ..................................................................................... 31 
5   EUROPEAN FISHER IES FUND (EFF) ........................................................................... 32  
5.1   Common Organisation of Markets in Fishery and Aqua culture Products ............................. 36 
6   FRAMEWORK PROGRAMMES IN THE FIELD OF RESEARCH ......................................... 37  
6.1   Research on Coal and Steel ........................................................................................ 40 
7   THE EUROPEAN UNION' S STRUCTURAL ACTIONS ...................................................... 41  
7.1   European Region al Developm ent Fund ......................................................................... 41 
 
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1  INTRODUCTION 
1.1  Structure of Notification Subsidies in the European Union are granted both at Union level i.e. out of the Union budget, and 
by Member States. 
 In view of this, the notification is divided into two parts. This first part of the notification deals with 
subsidies granted by the European Union and general information on aid granted within the 
Union's territory. The second part of this notifica tion, 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 2011 and 2012 
and to subsidy programmes which are currently in force, and provides statistical information at 
least up to the end of 2012 .  
 
1.3  Presentation of Notification 
The information provided in this notification includ es, 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 fe w cases, the presentation is different to that 
specified in the questionnaire, but all the required elements are still included. 
 1.4  Status of Subsidies 
In preparing this notification, the EU has attempted to achieve the maximum transparency with 
regard to aid and support measures granted within its territory. The fact that such aid has been notified does not, in accordance with Article 25. 7 of the Subsidies Agreement, prejudge its legal 
status under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement 
or the nature of the measure itself. In view of  the diverse nature of many of the programmes 
notified, it may be that only part of a programme's funding involves a subsidy element, which may or may not be specific. Consequently, the appearance of a programme in this notification does not 
in any way imply that the whole or part of its expenditure amounts 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 are described in more detail in this part of the 
notification. 
 
b. State aid in the Member States 
The European Commission is responsible for examining all state aid granted within the EU in order 
to determine its conformity with Article 107 of the EU Treaty, Member States are required to notify 
all aid schemes to the Commission, which may decide either not to raise any objection or open an investigation procedure. If the aid scheme is ultimately found not to conform to Article 107, the 
Commission issues a negative decision which prevents the aid being granted. If the Member State 
has already granted such aid, the Commission can order the aid to be repaid.  
Details of Member States' aid schemes can be  found in addenda to this notification. 
 3  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 completion of G/SCM/N/253/EU 
 
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  the EU internal energy market while encourag ing the rational production, transportation, 
distribution and use of energy resources, (2) re ducing the isolation of less-favoured and island 
regions, (3) securing and diversify the EU's energy supplies 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 transportation of ener gy). 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 adop ted 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. The budget for 
the period 2007-2013 is 155 million euro (about 22 mln € per year).  
 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
Commission decision C(2009) 868 of 16 February 2009 establishing the 2009 annual work 
programme for grants in the field of trans-European networks (TEN) - area of energy infrastructures (TEN-E) 
 
Commission decision C(2010) 48 of 18 February 2010 establishing the 2010 annual work programme for grants in the field of trans-European networks (TEN) - area of energy infrastructures (TEN-E) 
 
Commission decision C(2010) 9395 of 22 December 2010 establishing the 2011 annual work programme for grants in the field of trans-European networks (TEN) - area of energy 
infrastructures (TEN-E); 
Commission Implementing Decision C(2011) 8321 of 23 November 2011 establishing the 2012 annual work programme for grants in the field of trans-European networks (TEN) - area of energy 
infrastructures (TEN-E); 
Commission Implementing Decision C(2012) 7510 of 29 October 2012 establishing the 2013 annual work programme for grants in the field of trans-European networks (TEN) - area of energy infrastructures (TEN-E); 
 
2. Period covered by the notification.  
2009, 2010, 2011, 2012, 2013. 
 
3. Policy objective and/or purpose of the subsidy. 
The current TEN-E policy framework includes electric ity, 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 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 authority for the subsidy (including identification of the legislation under 
which it is granted).  
TEN Financial Regulation [OJ L162 of 22.6.2007, p.1] - REGULATION (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 20 06 laying down guidelines for trans-European 
energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). 
Grant. 
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  6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined). 
Others. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in 
the previous year). Where provision of per unit subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation.  
Annual amounts in Work programmes: 
  
 2009 – EUR 26,048,000 
 2010 – EUR 20,760,000  2011 – EUR 24.150.000 
 2012 – EUR 21.129.600 
 2013 – EUR 22.200.000  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement. 
Duration of eligible action. 
 
4  COMMON AGRICULTURAL POLICY (CAP) 
4.1  General Observations 4.1.1  The CAP reform process  
During the period under review of this notificati on the implementation of the 2008 Health Check 
reform was completed.   
The Health Check in general was a continuation of the reform process of the CAP, following the 
direction of previous reforms of the last 20 years. During that time a major policy shift has taken place from price support mechanisms to income support conditioned on the respect of certain criteria.  
 
The 2003 CAP Reform introduced a decoupled direct payments scheme, the Single Payment Scheme (SPS), as well as a simplified direct payments scheme for some new Member States called 
the Single Area Payment Scheme (SAPS). Under the SPS and SAPS aid is no longer linked to 
production and farmers can decide whether and what to produce knowing that they receive the same amount of aid, therefore production is adju sted to suit market demand. In addition farmers 
can receive (depending on the choice of a Member State) aid under some coupled support 
schemes linked to the area under crops or to production.  The decoupling process continued in the following years with reforms in the sugar, fruit and 
vegetable, cotton and wine sectors, and finally the Health Check reform in 2008. Following the 
Health Check, a large majority of direct support is now decoupled while cross-compliance – conformity with standards concerning environmen t, food safety, animal and plant health and 
animal welfare - remains a prerequisite to receive support. Under the current CAP, market 
intervention measures operate as a genuine safety net in case of crisis. As a result of these reforms the CAP is further modernised and simpli fied. Moreover, the Rural Development policy has 
been further strengthened in order to allow fa rmers to face new challenges, such as climate 
change, renewable energies, water management and biodiversity.   The current main CAP Regulations in force: Council Regulation (EC) 1234/2007 of 
22 October 2007 establishing a common organi sation of agricultural markets and on 
specific provisions for certain agricultural pr oducts, as amended in particular by Council 
Regulation (EC) 72/2009; Council Regulation (EC) 73/2009 (repealing and replacing the 
previous Direct Aids Regulation (EC) 1782/2003)  and Council Regulation (EC) No 1698/2005 of 20 G/SCM/N/253/EU 
 
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  September 2005 on support for rural development by the European Agricultural Fund for Rural 
Development (EAFRD) as amended in particular by Council Regulation (EC) 74/2009.  4.1.2  Financing the CAP 
The expenditure for Agriculture included in this notification relates to payments made by the 
European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD) during the years 2011 and 2012. For the EAGF (first pillar of the CAP) the 
SCM questionnaire is answered in Section B below together with detailed information on the 
individual support measures in section C (C.1 Export subsidies, C.2 Interventions in agricultural markets and C.3 Direct aids). Support covered by the EAFRD (second pillar of the CAP) is treated in the same manner in sections D and E of this notification. Sections F and G cover support for 
pre-accession measures in the field of Rural Development, in so far as the payments occurred in 
the Member States of EU27.  
General Summary of expendit ure for Agriculture and Rural Development, million EUR 
 2010 2011 2012 
European Agricultural 
Guarantee Fund (EAGF) 43,989.58  43,710.57  44,395.07  
Export subsidies 385.09 179.43 146.67  
Other intervention in markets 3,928.76 3,353.11 3,368.37  
Direct aids 39,675.73 40,178.03 40,880.03  
Of which non-trade distorting 
direct aids 33,828.71 36,830.99 37,666.10  
European Agricultural Fund for 
Rural Development (EAFRD) 11,476.66  12,218.37  13,250.00  
Rural development 2007-2013 11,116.20 11,794.00  13,116.60  
Rural development completion of 
previous periods 360.50 424.37  133.40  
Pre-accession (Ipard) 14.40  101.77  6.51  
 
4.1.3  Information on the Internet 
 General information on the Common Agricultural Policy can be found at: 
 http://ec.europa.eu/agriculture/index_en.htm (English)   http://ec.europa.eu/agriculture/index_fr.htm (French) 
 http://ec.europa.eu/agriculture/index_es.htm (Spanish) 
  The legislation referred to in this notification is publicly available at the following websites:  
http://eur-lex.europa.eu/en/index.htm (English) 
http://eur-lex.europa.eu/fr/index.htm (French) 
http://eur-lex.europa.eu/es/index.htm (Spanish)  
The EU budget can be consulted at: 
http://eur-lex.europa.eu/budge t/www/index-en.htm (English) 
http://eur-lex.europa.eu/budge t/www/index-fr.htm (French) 
http://eur-lex.europa.eu/budge t/www/index-es.htm (Spanish) 
 4.2  European Agricultural Guarantee Fund (EAGF) 
1. Title of the programme 
 
Common Agricultural Policy – Direct aids and interventions in markets ("First Pillar").  G/SCM/N/253/EU 
 
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  2. Period covered by the notification 
 
1 January 2011 - 31 December 2012.  
3. Policy objective and/or purpose of the programme 
 
The policy objective aims at: 
 
 providing the farming community with a fair standard of living, 
 supplying consumers with food at reasonable prices, and  
 promoting effective use of resources. 
 
4. Background and authority for the programme 
 
Treaty on the Functioning of the European Union, in particular Title III of Part III.  
 5. Form of assistance granted 
 The aid is normally in the form of grants or loans.    6. To whom and how the assistance is provided 
 Payments are made to economic actors in the sector, for the large part agricultural producers.  
7. Total expenditure under the programme 
 
European Agricultural Guarantee Fund - financial year (million EUR)   
 2010 2011 2012 
 Intervention in markets 3,928.8 3,353.1 3,368.4  
 Export subsidies 385.1 179.4 146.7  
 Direct aids 39,675.7 40,178.0 40,880.0  
Total EAGF 43,989.6  43,710.6  44,395.1  
Of which non-trade distorting 
direct aids 33,828.7 36,831.0 37,666.1  
 
8. Duration of the programme 
 The current financial perspective runs until 2013.  9. Trade effects 
 In 2012, 85% of the support provided had no or at most minimally trade distorting effects.  
4.3  Measures Financed Through The EAGF ("First Pillar" Of The Cap) 
4.3.1  Export refunds For certain of the sectors governed by a common market organisation, the Common Agricultural 
Policy provides for the possibility of granting expo rt refunds. The purpose of export refunds is to 
cover the difference between EU prices and internat ional trade prices in order to enable exports to 
be effected at international trade prices. The refund is the same for the whole of the EU; a differential may be applied according to destinatio n or time (months of delivery). The amount of 
the refund is fixed periodically by the Commission. The periodicity of the fixing is different for each 
sector because of the special characteristics of each sector. In order to facilitate export operations, in the case of the majority of products a system  has been introduced whereby refunds can be fixed 
in advance. The refund is paid to the exporter. The total amounts of export refunds financed by 
the EAGF in 2010, 2011, and 2012 are as follows:   G/SCM/N/253/EU 
 
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  Export subsidies (EAGF payments) EUR million 
Products 2010 2011 2012 
Cereals -0.4 0.1 0.2 
Sugar  9.8 1.5 0.0 
Rice 0.0 0.0 0.0 
Olive oil 0.0 0.0 0.0 
Fruit and vegetables 0.4 0.0 0.1 
Wine 0.7 0.3 0.1 
Dairy products 186.4 5.4 0.2 
Bovine meat 25.3 55.8 37.2 
Pigmeat 18.8 19.1 18.6 
Eggs and poultry 92.6 84.5 81.1 
Refunds on non-Annex I 51.3 12.7 9.1 
Total expenditure 385.1 179.4 146.7 
 
4.3.2  Interventions in agri cultural 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 single 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 C.2 deals with spending for the Interventions in 
agricultural markets per sector; section C.3 will address Direct Payments in a similar way. Most of 
the support schemes represented in the section C.2 of this notification have their legal basis in 
Council Regulation (EC) 1234/2007 of 22  October 2007 establishing a common 
organisation of agricultural markets and on specific provisions for certain agricultural 
products, as amended by the Health Check Re gulation (EC) 72/2009 of 19 January 2009. 
 Interventions in agricultural market s (EAGF budget – payments) EUR million 
Products 2010 2011 2012 
Cereals   135.4 -156.3 41.7  
Rice   0.0 0.0 0.0  
Food programs   465.5 515.0 515.1  
Sugar   0.2 0.7 -0.2  
Sugar restructuring (*)   330.3 187.9 109.7  
Olive oil   53.2 44.1 55.3  
Textile plants   28.8 30.3 25.2  
Fruits and vegetables   836.3 1,127.8 1,071.1  
Wine   1,308.6 1,104.0 1,072.0  
Promotion   47.4 47.7 48.0  
Other plant products   356.5 367.5 328.9  
Dairy products   342.6 -0.3 66.8  
Beef and veal   -0.8 -0.1 0.1  
Sheep and goat   0.0 0.0 0.0  
Pigmeat   0.5 56.3 5.8  
Eggs and poultry   0.0 0.0 0.0  
Other measures & animal products 24.3 28.4 28.9  
          
Total expenditure   3,928.8  3,353.1 3,368.4  
 
(*) Sugar restructuring aids and other aids are not funded by the EAGF budget, but by the 
temporary restructuring amounts in the sugar sector, as set out in article 11 of Council Regulation G/SCM/N/253/EU 
 
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  320/2006, which are paid by operators in each Member State who hold sugar, inulin syrup and 
isoglucose production quotas for the marketing years 2006/07 to 2008/09.   4.3.2.1  Cereals 
The legal basis for expenditure is Council Regulation (EC) 1234/2007 of 22 October 2007 
establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation), amended by the Health Check Regulation 72/2009 
of 19 January 2009. 
 Public intervention 
 
Public intervention is available for 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 tendering procedures above 3 mill ion tonnes). Buying into public intervention for 
durum wheat, barley, maize, sorghum shall be carried out within the limits set at 0 tonnes. The 
Commission may decide to modify the ceilings for these cereals 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.  
Cereals will only be accepted in public intervention if they comply with certain minimum quality 
specifications.  
4.3.2.2  Rice 
The legal basis for expenditure is Council Regulation 1234/2007 of 22 October 2007 establishing a 
common organisation of agricultural markets and on specific provisions for certain agricultural 
products (Single CMO Regulation), amended by  the Health Check Regulation 72/2009 of 19 
January 2009.   Public intervention 
 Public intervention is applicable in respect of paddy rice from 1 April to 31 July. Buying into public intervention can be carried out within a defined ceiling which is set at 0.  
 
However, the Commission may decide to continue intervention beyond that quantity, during the open period, if the market situation so requires. The reference price is set at EUR 150/t for the 
standard quality and the maximum buying-in price shall be determined by means of tendering 
procedures. If the rice offered to intervention differs from the standard quality, the price is 
adjusted accordingly. Rice will only be accepted in intervention if it complies with certain minimum quality specifications. 
 
4.3.2.3  Sugar 
The legal basis for expenditure is Council Regulation 1234/2007 establishing a common 
organisation of agricultural markets and on specific provisions for certain agricultural products 
(Single CMO Regulation), amended by the Heal th Check Regulation 72/2009 of 19 January 2009. 
 
Private storage 
 
There is a private storage system as a safety net in case the market price falls below the reference price during 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 allocated a sugar quota.  
Quota system 
 
The quotas for the production of sugar, isoglucose and inulin syrup at national or regional level are 
from the 2010/11 marketing year onwards fixed as follows:  
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  (tonnes, Commission Regulation (EC) 513/2010 ) 
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  2,898,255.7 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 432,220.05   
Italy  508,379.0 32,492.5  
Latvia  0   
Lithuania  90,252.0   
Hungary  105,420.0 220,265,8.0  
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  13,336,741.2 690,440.8  0 
 
Member States allocate a quota to each undertaki ng producing sugar, isoglucose or inulin syrup 
established in its territory and approved under certain conditions. For each undertaking, the 
allocated quota shall be equal to the quota under  Regulation (EC) 318/2006 which was allocated to 
the undertaking for the marketing year 2007/2008. 
 
The sugar, isoglucose or inulin syrup produced du ring 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 outermost regions; or 
 exported within the quantitative limit fixed by the Commission respecting the commitments 
resulting from international agreements. 
 
Other quantities are subject to a surplus levy: 
 
 surplus sugar, surplus isoglucose and surplus inulin syrup produced during any marketing 
year, except for quantities carried forward to the quota production of the following 
marketing year and stored; 
 industrial sugar, industrial isoglucose and industrial inulin syrup for which no proof has been 
supplied, by a date to be determined by the Commission, that it has been processed into 
one certain products referred; 
 sugar and isoglucose withdrawn from the market and for which specific obligations are not 
met. 
 
The surplus levy is fixed by the Commission at a sufficiently high level in order to avoid the accumulation of quantities. The surplus levy re ferred is charged by the Member State to the 
undertakings on its territory according to the quantities of production established for those 
undertakings for the marketing year concerned.  G/SCM/N/253/EU 
 
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4.3.2.4  Olive oil 
The legal basis for expenditure is Council Regulation 1234/2007 (Single CMO regulation), amended 
by the Health Check Regulation 72/2009 of 19 January 2009. 
 
The European Commission pursues the implementation of a strategy for the quality of olive oil  
adopted in 2001. The olive oil regulatory "reg ime" 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 may use up to 10% of their national envelope for quality measures under activity programmes carried out by operator organizations. 
 
Private storage 
 
The Commission may decide to authorise bodies, o ffering sufficient guarantees and approved by 
the Member States, to conclude contracts for the st orage of olive oil that they market in the event 
of a serious disturbance on the market in certain regions of the Community, inter alia, when the 
average price recorded on the market during a representative period is less than certain thresholds 
established in the Regulation.  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. Re gulation (EC) 637/2008 provides that each cotton 
producer Member State shall, either every four  years and for the first time by 1 January 2009, 
submit to the Commission a draft four-year restructuring programme or submit to the 
Commission, by 31 December 2009, a single draft modified restructuring programme for a duration of eight years. The annual budget for the restructuring programme per Member State from the financial year 2010 onwards shall be as follows EUR 4.0 million for Greece and EUR 6.134 
million for Spain. 
 The restructuring programmes contain one or more of the following measures: 
 
a. full and permanent dismantling of ginning facilities; 
b. investments in the ginning industry; 
c. participation of farmers in cotton quality schemes; 
d. information and promotion activities; 
e. aid to machinery contractors, not exceeding losses incurred.  
Aid is not granted for research projects and measures to support research projects or for measures 
which are eligible for EU support under Regulation (EC) 1698/2005 (Rural Development). 
 4.3.2.6  Fruit and vegetables 
A new regulation on the fruit and vegetables sector is in place as from 1 January 2008, Council 
Regulation 1182/2007 of 26 September 2007, which has been integrated into the Single CMO Regulation 1234/2007, amended by the Health Check Regulation 72/2009 of 19 January 2009. 
 
The aim of the reforms is to improve the competit iveness and market orientation of the fruit and 
vegetable sector, reduce income fluctuations resulting from crises, promote consumption – so contributing to improved public health – and enhance environmental safeguards. The new 
measures cover:  
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   Encouraging growers to join Producer Organisation (POs). POs have a set of tools for crisis 
management. 
 Requiring a minimum level of environmental spending for POs;  
 Increasing EU funding for promotion and organic production for POs; 
 Abolishing export subsidies for fruit and vegetables; 
 Integrating the fruit and vegetable sector into the Single Payment Scheme.  
 
Producer Organisations (POs)  
 
POs gained greater flexibility and their rules are simplified. There is additional support (60% EU 
co-financing instead of 50%) in some cases like mergers of POs and there is national financial 
assistance to POs in areas where marketed production covered by POs is less than 20%. 
 Crisis management 
 Crisis management is organised through Producer Organisations (50% financed by the EU budget). Tools include green harvesting/non-harvesting, promotion and communication tools in times of 
crisis, training, harvest insurance, help in securing bank loans and financing of the administrative 
costs of setting up mutual funds. Withdrawals for free distribution to charitable organisations, schools etc. will be 100% paid by the EU. EU aid to  POs will remain limited to 4.1% of the total 
value of marketed produce, but this may rise to 4.6% provided that the excess is used only for 
crisis prevention and management.  
 Inclusion of fruit and vegetables in the Single Payment Scheme  
 See Section 3.1 of this notification.  
Environmental measures 
 
The inclusion of fruit and vegetables in the Single Payment Scheme means that cross compliance (i.e. mandatory environmental standards, see also the section on direct payments in this 
notification) is compulsory for those farmers receiving direct payments. In addition, POs are 
required to devote at least 10% of expenditure in each Operational Programme to environmental actions or to include at least two environmental actions in the Operational Programme. Among 
environmental actions, there is a 60% EU co-financing rate for organic production. 
 Encouraging greater consumption 
 POs can include promotion of fruit and vegetable consumption in their operational programmes. Free distribution of fruit and vegetables to school s, hospitals and charitable bodies, can be 100% 
financed by the EU up to a limit of 5% of the quantity marketed by a PO.  
 
School Fruit Scheme 
 
An EU School Fruit Scheme (SFS) is operational as from school year 2009-2010. It aims to 
encourage healthy eating habits in young people, thus contributing to fight against obesity and overweight. The SFS makes available €90 million of EU funds per year to provide fruit and 
vegetables to school children and this money is matched by national and private funds (co-
financing). 8 million children from 24 Member Stat es out of 27 benefited from the Scheme in the 
last two school years (2010/11 and 2011/12).  
4.3.2.7  Wine 
Council Regulation (EU) 479/2008 ( OJ L 148 of 06/06/2008) thoroughly  reorganises the way the 
E U  w i n e  m a r k e t  i s  m a n a g e d  i n  o r d e r  t o  e n s u r e  that EU wine production matches demand, to 
eliminate wasteful public intervention in EU wine markets and to make European wine more 
competitive. Most of the new rules apply from 1 August 2008 (Regulation (EU) 555/2008). Some of the new rules (mainly wine-making practices and labelling) apply from 1 August 2009. The 
following elements constitute the support in the reformed wine sector. 
 G/SCM/N/253/EU 
 
- 13 - 
 
  National financial envelopes 
 
Redirecting the funds for distillation allows the attribution of EU funds to Member States and the use of those funds by Member States through national support programmes to finance specific 
support measures to assist the wine sector. Member States are responsible for the support 
programmes and ensure that they are internally consistent. For the first time by 30 June 2008, 
Member States submitted to the Commission draft five-year support programmes containing 
measures in accordance with a EU menu of measures. The support measures are drawn up at the 
geographical level which the Member States deem most appropriate. Support programmes shall contain one or more of the following measures:  
 Single Payment Scheme: 
See Section 3.1 of this notification. 
 
 Promotion on third-country markets: 
This support covers information or promotion measures concerning EU wines in third 
countries, thereby improving their competitiveness in those countries. The support relates 
to wines with a 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 of: 
 
o public relations, promotional or advertisement measures, in particular highlighting 
the advantages of the EU products, especially in terms of quality, food safety or environmental friendliness; 
o participation at events, fairs or exhibitions of international importance; 
o information campaigns, in particular on the EU systems covering designations of 
origin, geographical indications and organic production; 
o studies of new markets, necessary for the expansion of market outlets; 
o studies to evaluate the results of the promotional and information measures. 
 
 Restructuring and conversion of vineyards: 
The objective of measures relating to the restructuring and conversion of vineyards is to 
increase the competitiveness of wine producer s. 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 improvements to vineyard management techniques. 
 
The normal renewal of vineyards which have come to the end of their natural life is not supported. 
Support for restructuring and conversion of vineyards may only take the following forms:  
o Compensation of producers for the loss of revenue due to the implementation of the 
measure. Compensation of producers for the loss of revenue may cover up to 100% of the relevant loss. 
o Contribution to the costs of restructuring and conversion. The EU contribution to the 
actual costs of restructuring and conversion  of vineyards does not exceed 50%. In 
regions classified as convergence regions in accordance with Regulation (EC) 1083/2006, the EU contribution to the costs of restructuring and conversion does not 
exceed 75%. 
 
 Green harvesting: 
Green harvesting means the total destruction or removal of grape bunches while still in 
their immature stage, thereby reducing the yield of the relevant area to zero. Support for green harvesting contributes to restoring the balance of supply and demand in the market 
in wine in the EU 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. G/SCM/N/253/EU 
 
- 14 - 
 
   
 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 funds. 
 
 Harvest insurance: 
Support for harvest insurance contributes to safeguarding producers' incomes where these 
are affected by natural disasters, adverse climatic events, diseases or pest infestations. Support for harvest insurance may be granted in  the form of a financial EU contribution 
which must not exceed:  
 
f. 80% of the cost of the insurance premiums paid for by producers for insurance against 
losses as a result of adverse climatic events which can be assimilated to natural 
disasters; 
g. 50% of the cost of the insurance premiums paid for by producers for insurance against: 
i. losses referred to in (a) and against other losses caused by adverse climatic events; 
ii. losses caused by animals, plant diseases or pest infestations. 
Support for harvest insurance may only be granted if the insurance payments concerned do 
not compensate producers for more than 100% of the income loss suffered, taking into account any compensation the producers may have obtained from other support schemes 
related to the insured risk. Support for harvest insurance must not distort competition in the 
insurance market. 
 
 Investments: 
Support may be granted for tangible or intangible investments in processing facilities, 
winery infrastructure and marketing of wine which improve the overall performance of the 
enterprise and concern one or more of the following: 
 
o production or marketing; 
o development of new products, processes and technologies 
 
Support under paragraph at its maximum rate is limited to micro, small and medium-sized enterprises.  
 
 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 cont ained in the by-products to be distilled which 
exceeds 10% in relation to the volume of alcohol contained in the wine produced. The 
maximum applicable aid level is based on collection and processing costs. The alcohol 
resulting from the supported distillation is used exclusively for industrial or energy 
purposes so as to avoid distortion of competition. 
 
4.3.2.8  Promotion of agricultural products 
Legal basis is Council Regulation (EC) 3/2008 of 17 December 2007 on information provision and 
promotion measures for agricultural products on the internal market and in third countries (OJ L 
003, 05.01.2008). 
 The EU can assist in financing measures for the information on and promotion of agricultural products and food on the EU internal market and in third countries. These measures can consist of 
public relations, promotional or publicity actions, participation at events and fairs, in particular 
those that highlight the advantages of EU products, especially in terms of quality, hygiene, food safety, nutrition, labelling, animal welfare or environmental friendliness of their production. Also 
covered are information campaigns on the EU system  of protected designations of origin (P.D.O), 
protected geographical indications (P.G.I) and traditional speciality guaranteed (T.S.G.), information on EU quality and labelling systems and on "organic farming".  G/SCM/N/253/EU 
 
- 15 - 
 
   
The EU co-finances these measures with an annual budget of approximately € 50 million and by an 
amount normally not exceeding 50% (60% for measures on the internal market for the promotion of fruit and vegetables intended specifically for children in schools and for measures concerning 
information on responsible drinking patterns and harm linked to hazardous alcohol consumption) 
of the total cost of approved programme, the re mainder being paid by the professional/inter-
branch organisations that proposed them and by the Member States concerned. Interested 
professional organisations must send their propos als to the competent Authorities of the Member 
States following the publication of a call for prop osals. These then submit to the Commission the 
list of programmes they have selected for final decision.   
4.3.2.9  Other plant products 
Hops 
 
Legal basis: Art. 102a of Council Regulation (E C) 1234/2007 introduced by art. 4 27) of Council 
Regulation 72/2009 (Health Check).   
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.    
POSEI – excluding direct aids 
 
Legal basis: Regulation (EU) No 228/2013 of the European Parliament and of the Council 
of 13 March 2013 laying down sp ecific measures for agricult ure in the outermost regions 
of the Union (OJ L 78, 20/03/2013).  
 
Specific measures on agriculture to remedy  the difficulties caused by the remoteness, 
insularity, distant location, small surface ar ea, terrain, difficult climate and dependence 
on a limited number of products of the region s of the Union referred to in Article 349 of 
the Treaty, the "outermost regions".  
 
4.3.2.10  Milk and dairy product 
Legal basis: Council Regulation (EC) 123 4/2007 of 22 October 2007 establishing a 
common organisation of agricultural market s and on specific provisions for certain 
agricultural products (Single CMO Regulation) , amended by the Health Check Regulation 
72/2009 of 19 January 2009. 
 
Public intervention 
 Public intervention is available for butter produc ed directly and exclusively from pasteurised cream 
in an approved undertaking of the EU of a minimum butterfat content, by weight, of 82% and a 
maximum water content, by weight, of 16% and for skimmed milk powder of top quality made 
from milk in an approved undertaking in the EU by the spray process, with a minimum protein-
content of 34.0% by weight of the fat free dry matter. The reference prices are EUR 246.39 
per 100 kg for butter and EUR 169.80 per 100 kg for skimmed milk powder.   
For butter, public intervention is open during  the period 1 March to 31 August. Where the 
quantities offered for intervention during the period laid down in paragraph 1 exceed 30 000 
tonnes, the Commission may suspend buying-in by public intervention. In that case buying-in may be carried out on the basis of a tendering procedure according to specifications to be determined 
by the Commission. 
 For skimmed milk powder public intervention shall be open during the period 1 March to 
31 August. However, the Commission may suspend public intervention as soon as the quantities 
offered for intervention in that period exceed 109,000 tonnes. In that case buying-in may be carried out on the basis of a tendering procedure according to specifications to be determined by 
the Commission. 
 G/SCM/N/253/EU 
 
- 16 - 
 
  Without prejudice to the fixing of the intervention  price by means of tendering, the intervention 
price for butter is 90% of the reference price and for skimmed milk powder it is equal to the  
reference price.  
Private storage 
 
Aid for private storage is granted for the following products: 
 
o Unsalted butter produced from cream or milk in an approved undertaking of the EU 
of a minimum butterfat content, by weig ht, of 82%, a maximum milk solids-non-fat 
content, by weight, of 2% and a maximum water content, by weight, of 16%, 
o Salted butter produced from cream or milk in an approved undertaking of the EU of 
a minimum butterfat content, by weight, of 80%, a maximum mi lk solids-non-fat 
content, by weight, of 2%, a maximum water content, by weight, of 16% and a 
maximum salt content, by weight, of 2%. 
 The amount of aid for butter is fixed by the Commi ssion in the light of storage costs and the likely 
trends in prices for fresh butter and butter from stocks. Where, at the time of removal from 
storage, an adverse change unforeseeable at the time of entry into storage has occurred on the 
market, the aid may be increased.   
Exceptional support measures 
 
The Commission may adopt exceptional support me asures for milk and milk products for the 
affected market to take account of restrictions on intra-EU and third-country trade which may 
result from the application of measures for co mbating the spread of diseases in animals.  
 
Production limitation 
 
The national quotas for the production of milk and other milk products marketed during seven consecutive periods of twelve months commencing on 1 April 2008. Producers may have either 
one or two individual quotas, one for deliveries and the other for direct sales distinguishing 
between deliveries and direct sales. Any overrun of the national quotas is determined nationally in each Member State, making a distinction between deliveries and direct sales. 
 
The national quotas set out in the table below are fixed without prejudice to possible review in the light of the general market situation and particular conditions existing in certain Member States.  
 
Member State Quota size in tonnes (2012/2013) 
 Belgium 3,566,450.406  
Bulgaria 1,039,126.352  
Czech Republic 2,906,084.017  
Denmark 4,799,910.369  
Germany 30,018,741.337  
Estonia 686,065.395  
Ireland 5,727,150.729  
Greece 
 870,905.700  
Spain 
 6,492,629.153  
France 
 26,110,129.977  
Italy  
 11,288,542.866  
Cyprus 
 154,117.616  
Latvia  
 773,398.711  
Lithuania  
 1,809,543.546  
Luxembourg  
 289,855.752  
Hungary  
 2,112,281.704  
Malta  
 51,688.841  G/SCM/N/253/EU 
 
- 17 - 
 
  Member State Quota size in tonnes (2012/2013) 
 Netherlands  
 11,931,180.847  
Austria  
 2,963,097.513  
Poland  
 9,956,234.709  
Portugal  
 2,068,222.323  
Romania  
 3,244,748.988  
Slovenia  
 612,052.851  
Slovakia 1,104,709.130  
Finland 2,593,113.089  
Sweden 3,558,445.206  
United Kingdom 15,739,311.451  
 
 A surplus levy is payable on milk and other milk products marketed in excess of the national 
quota. The levy is set, per 100 kilograms of milk, at EUR 27.83. Member States shall be liable to 
the EU for the surplus levy resulting from overruns  of the national quota, determined nationally 
and separately for deliveries and direct sales, and between 16 October and 30 November following 
the twelve-month period concerned, shall pay 99% of the amount due to the EAGF. If the surplus 
levy has not been paid before the due date and after consultation of the Committee of the Agricultural Funds, the Commission shall deduct a sum equivalent to the unpaid surplus levy from 
the monthly payments. The surplus levy shall be en tirely allocated among the producers who have 
contributed to each of the overruns of the na tional quotas. Producers are liable vis-à-vis the 
Member State for payment of their contribution to the surplus levy due, for the mere fact of having overrun their available quotas. 
 
Aid for skimmed milk and skimmed milk powder for use as feeding stuffs 
 
When surpluses of milk products build up or are likely to create a serious imbalance in the market, 
the Commission may decide to grant aid for skimme d milk and skimmed-milk powder intended for 
use as feeding stuffs, according to conditions and product standards to be determined by the 
Commission. The aid may be fixed in advance or by means of tendering procedure. Buttermilk and 
buttermilk powder shall be regarded as skimmed milk and skimmed-milk powder. Aid amounts shall be fixed by the Commission taking  into account the following factors: 
 
o the reference price for skimmed-milk powder, 
o the development of the market situatio n as regards skimmed milk and skimmed-
milk powder. 
 
Aid for skimmed milk processed into casein and caseinates 
 
When surpluses of milk products build up or are li kely to occur, creating or likely to create a 
serious imbalance in the market, the Commission may decide that aid is granted for skimmed milk processed into casein and caseinates, according to conditions and product standards of such milk and the casein or caseinates produced from it to be determined by the Commission. The aid may 
be fixed in advance or by means of tendering procedure. Aid shall be fixed by the Commission 
taking into account the following elements:  
o the reference price for skimmed-milk powder, 
o the development of the market situation for skimmed milk powder. 
 
The aid may vary, according to whether the skimmed milk is processed into casein or caseinates 
and according to the quality of those products.  Aid for the supply of milk products to pupils 
 Under conditions to be determined by the Commission, EU aid shall be granted for supplying to pupils in educational establishments certain processed milk products to be determined by the 
Commission. Member States may, in addition to EU aid, grant national aid for supplying the 
products referred to in paragraph 1 to pupils in  educational establishments. Member States may G/SCM/N/253/EU 
 
- 18 - 
 
  finance their national aid by means of a levy on the dairy sector or by any other contribution from 
the dairy sector. The EU aid shall be EUR 18.15/100 kg for all milk. The amounts of aid for other eligible milk products shall be determined taking into account the milk components of the product concerned. The aid shall be granted on a maximum quantity of 0.25 litre of milk equivalent per 
pupil and per day. 
 4.3.2.11  Beef and veal 
Legal basis: Council Regulation (EC) 123 4/2007 of 22 October 2007 establishing a 
common organisation of agricultural market s and on specific provisions for certain 
agricultural products (Single CMO Regulation) , amended by the Health Check Regulation 
72/2009 of 19 January 2009. 
 
Public intervention 
 
As regards the beef and veal sector, the reference price 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 adult bovine animals. The Commission will open public intervention for beef and veal if, over a 
representative period, the average market price in a Member State or in a region of a Member 
State recorded on the basis of the Community scale for the classification of carcasses is below EUR 1,560/tonne. The Commission closes public interv ention if, over a representative period, this 
condition is no longer met. The intervention prices for beef and veal and the quantities accepted 
for intervention are determined by the Commissio n by means of tendering procedures. In special 
circumstances, tendering procedures may be restricted to, or the intervention prices and the quantities for intervention may be fixed per Member State or region of a Member State on the 
basis of recorded average market prices. The ma ximum buying-in price determined in accordance 
with tendering procedures shall not be higher than  the average market price recorded in a Member 
State or a region of a Member State increased by  an amount to be determined by the Commission 
on the basis of objective criteria. 
 Private storage 
 
When the average EU market price recorded on the basis of the EU scale for the classification of 
carcasses of adult bovine animals is, and is likely to remain, at less than 103% of the reference price, the Commission ma y decide to grant aid for private storage. 
 
Exceptional market support measures 
 
The Commission may adopt exceptional support measures for the affected market in order to take 
account of restrictions on intra-EU and third-country trade which may result from the application of measures for combating the spread of diseases in animals. The measures are taken at the request of the Member State(s) concerned. They may be taken only if the Member State(s) concerned has 
(have) taken health and veterinary measures quic kly to stamp out the disease, and only to the 
extent and for the duration strictly necessary to  support the market concerned. The EU provides 
part-financing equivalent to 50% of the expenditure borne by Member States. However the EU 
provides part-financing equivalent to 60% of such expenditure when combating foot-and-mouth 
disease. Member States shall ensure that, where producers contribute to the expenditure borne by 
Member States, this does not result in distortion of competition between them. 
 
4.3.2.12  Sheepmeat and goatmeat 
 Legal basis: Council Regulation (EC) 12 34/2007 of 22 October 2007 establishing a 
common organisation of agricultural market s and on specific provisions for certain 
agricultural products (Single CMO Regulation) , amended by the Health Check Regulation 
72/2009 of 19 January 2009.  
Private storage 
 
The Commission may decide to grant aid for private storage when there is a particularly difficult 
market situation for sheepmeat and goatmeat in one or more of the following quotation areas: 
 
h. Great Britain; G/SCM/N/253/EU 
 
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  i. Northern Ireland; 
j. any Member State other than the United Kingdom, taken separately. 
Exceptional market support measures 
 
The Commission may adopt exceptional support measures for the affected market in order to take 
account of restrictions on intra-EU and third-country trade which may result from the application of measures for combating the spread of diseases in animals. The measures are taken at the request 
of the Member State(s) concerned. They may be taken only if the Member State(s) concerned has 
(have) taken health and veterinary measures quic kly to stamp out the disease, and only to the 
extent and for the duration strictly necessary to  support the market concerned. The EU provides 
part-financing equivalent to 50% of the expenditure borne by Member States. However the EU 
provides part-financing equivalent to 60% of such expenditure when combating foot-and-mouth 
disease. Member States shall ensure that, where producers contribute to the expenditure borne by 
Member States, this does not result in distortion of competition between them. 
 
4.3.2.13  Pigmeat 
Legal basis: Council Regulation (EC) No  1234/2007 of 22 October 2007 establishing a 
common organisation of agricultural market s and on specific provisions for certain 
agricultural products (Single CMO Regulation) , amended by the Health Check Regulation 
72/2009 of 19 January 2009.  
Private storage 
 
When the average EU market price for pig carca sses as established by reference to the prices 
recorded in each Member State on the representative markets of the EU and weighted by means of 
coefficients reflecting the relative size of the pig herd in each Member State is, and is likely to remain, at less than 103% of the reference price, the Commission may decide to grant aid for 
private storage. 
 Exceptional market support measures 
 
The Commission may adopt exceptional support measures for the affected market in order to take 
account of restrictions on intra-EU and third-country trade which may result from the application of measures for combating the spread of diseases in animals. The measures are taken at the request 
of the Member State(s) concerned. They may be taken only if the Member State(s) concerned has 
(have) taken health and veterinary measures quic kly to stamp out the disease, and only to the 
extent and for the duration strictly necessary to  support the market concerned. The EU provides 
part-financing equivalent to 50% of the expenditure borne by Member States. However the EU 
provides part-financing equivalent to 60% of such expenditure when combating foot-and-mouth 
disease. Member States shall ensure that, where producers contribute to the expenditure borne by 
Member States, this does not result in distortion of competition between them. 
 
4.3.2.14  Eggs and poultrymeat 
Legal basis: Council Regulation (EC) 123 4/2007 of 22 October 2007 establishing a 
common organisation of agricultural market s and on specific provisions for certain 
agricultural products (Single CMO Regulation) , amended by the Health Check Regulation 
72/2009 of 19 January 2009. 
 
Exceptional market support measures 
 The Commission may adopt exceptional support measures for the affected market in order to take 
account of restrictions on intra-EU and third-country trade which may result from the application of 
measures for combating the spread of diseases in animals. The measures are taken at the request of the Member State(s) concerned. They may be taken only if the Member State(s) concerned has 
(have) taken health and veterinary measures quic kly to stamp out the disease, and only to the 
extent and for the duration strictly necessary to  support the market concerned. The EU provides 
part-financing equivalent to 50% of the expendit ure borne by Member States. Member States shall G/SCM/N/253/EU 
 
- 20 - 
 
  ensure that, where producers contribute to the ex penditure borne by Member States, this does not 
result in distortion of competition between them.  4.3.2.15  Bee-keeping 
Legal basis: Council Regulation (EC) 1234/2007 of  22 October 2007 establishing a 
common organisation of agricultural market s and on specific provisions for certain 
agricultural products (Single CMO Regulation ), amended by the Health Check Regulation 
72/2009 of 19 January 2009. 
 Special provisions for the apiculture sector 
 
With a view to improving general conditions for the production and marketing of apiculture 
products, Member States may draw up a national programme for a period of three years ('bee-keeping programme') aiming to improve general conditions for production and marketing of 
apicultural products. The measures which may be included in the 'bee-keeping programme' are the 
following:  
 technical assistance to beekeepers and groupings of beekeepers; 
 control of varroasis; 
 rationalisation of transhumance; 
 measures to support laboratories carrying out an alyses of the physico-chemical properties of 
honey; 
 measures to support the restocking of hives in the EU; 
 cooperation with specialised bodies for the implementation of applied research programmes 
in the field of beekeeping and apiculture products. 
 Measures financed from the EAFRD in accordance with Council Regulation (EC) 1698/2005 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 aids 
The support schemes represented in this section C.3 of this notification find their legal basis in 
Council Regulation (EC) 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support 
schemes for farmers (OJ L30, 31.1.2009), as well as Council Regulation 1782/2003 of 
29 September 2003 (OJ L270, 21.10.2003) and Council Regulation 1234/2007 of 22 October 2007 (OJ L299, 16.11.2007). 
 G/SCM/N/253/EU 
 
- 21 - 
 
  The level of direct aids for the period cove red by this notification is as follows: 
Direct Aids (EAGF financial year - payment appropriations), EUR million 
 
    2010 2011 2012 
 Coupled Decoupled Coupled Decoupled Coupled Decoupled 
SPS (Single Payment Scheme) (1) - 29,367.8 - 31,364.8 - 31,373.7 
SAPS (Single Area Payment Scheme) - 4,460.9 - 5,084.3 - 5,915.7 
Specific support  - - 748.0 381.9 785.5 376.8 
Arable crops   1,679.4 - 54.2 - 46.2 - 
Sugar   51.6 - 45.2 - 23.0 - 
Rice   168.9 - 154.3 - 152.8 - 
Olive oil   97.3 - 2.4 - 1.3 - 
Cotton   221.7 - 247.3 - 245.8 - 
Silkworms   0.4 - 0.4 - 0.4 - 
Fruit and vegetables   506.1 - 374.6 - 254.3 - 
Tobacco   295.8 - 0.3 - 0.1 - 
Seeds   25.1 - 23.2 - 22.4 - 
Hops   2.5 - 0.0 - 0.0 - 
Bovine meat   1,615.5 - 1,112.8 - 1,114.3 - 
Sheepmeat and goatmeat   321.7 - 30.1 - 29.2 - 
POSEI   425.7 - 433.4 - 429.0 - 
Specific types of farming & quality 
production 434.1 -  123.3 - 113.9   
Other products / measures (2) 1.0 - -2.4 - -4.2 - 
Total    5,847.0  33,828.7  3,347.0  36,831.0 3,213.9  37,666.1  
Total direct aids  39,675.7 40,178.0 40,880.0 
 
(1) Additional amounts of aid, Separate  Sugar Payment and Separate Fruit and 
Vegetables payment are included. 
 
 (2) Dried fodder, grain legumes, recoveries and other measures.  4.3.3.1  Single Payment Scheme (SPS) 
The introduction of the SPS decided in the CAP reform of 2003 removed links between production 
and support. The main aims of SPS are to allow fa rmers freedom to produce to market demand, to 
promote environmentally and economically sustainable farming and to simplify CAP application for 
farmers and administrators. All farmers who hold the payments entitlements may apply for direct 
payments under the SPS. The single payment is an annual income support payment to farmers that is independent of what and whether a farmer produces. However, farmers who do not comply with certain requirements in the areas of public, animal and plant health, environment and animal 
welfare are subject to reductions of or exclusion from direct support (cross-compliance). Moreover, 
in order to receive the payments, the farmer has to maintain the agricultural land in good agricultural and environmental conditions. 
 
The reform process continued in the following years. The latest sectorial reforms concern the fruit and vegetables and the wine sector, which were reformed respectively in 2007 and 2008: the land 
covered by fruit and vegetables and vineyards became eligible for activation of payment 
entitlements under the SPS.  The Health Check further extended the decoupling of direct support to farmers by including most 
of the remaining coupled payments into the SPS. According to Annex XI of Council Regulation (EC) 
73/2009, the payments included in the SPS from  2010 are the arable crops area payments, the G/SCM/N/253/EU 
 
- 22 - 
 
  specific quality premium for durum wheat, the ai d for olive groves and the hops area aid. The 
payments included from 2012 are the seed aid, the protein crop premium, the crop specific payment for rice, the area payment for nuts, the pr oduction aid for potato starch growers, the aid 
for processing flax and hemp and dried fodder, th e potato starch premium, the transitional fruit 
and vegetables payments, the beef and veal payments except the suckler cow premium.  
 National ceilings  (Annex VIII of Regulation (EC) 73/2009 as amended by Commission 
Implementing Regulation (EU) No 287/2013) 
 1000 EUR, the amounts include but are not limited to SPS envelopes  
Member State 2009 2010 2011 2012 2013 
Belgium  614,179 611,817 611,817 614,855 614,855  
Denmark  1,030,478 1,031,321 1,031,321 1,049,002 1,049,002  
Germany  5,770,254 5,771,981 5,771,994 5,852,938 5,852,938  
Greece  2,380,713 2,228,588 2,231,798 2,233,227 2,233,227  
Spain  4,858,043 5,119,045 5,125,032 5,304,642 5,304,642  
France  8,407,555 8,423,196 8,425,326 8,527,494 8,527,494  
Ireland  1,342,268 1,340,521 1,340,521 1,340,869 1,340,869  
Italy 4,143,175 4,210,875 4,234,364 4,379,985 4,379,985  
Luxembourg  37,518 37,569 37,679 37,671 37,671  
Netherlands  853,090 853,169 853,169 897,751 897,751  
Austria  745,561 747,344 747,425 751,788 751,788  
Portugal  608,751 589,811 589,991 606,551 606,551  
Finland  566,801 565,520 565,823 570,548 570,548  
Sweden  763,082 765,229 765,229 770,906 770,906  
United Kingdom  3,985,895 3,976,425 3,976,482 3,988,042 3,988,042  
 
 
4.3.3.2  Single Area Payment Scheme (SAPS) 
The new Member States may use, for a transition period, a simple regime for granting direct 
payments to farmers, the Single Area Payment Scheme (SAPS). This regime  facilitates and 
reduces the cost of the preparatory work to be made before and during the first years of accession with only payments per ha of agricultural land. The SAPS is a direct support scheme with no, or at 
most minimal, trade-distorting effects which replaces all direct payments – with some exceptions – 
with a single area payment.   SAPS is a direct support scheme not requiring prod uction based on two elements fixed at national 
level. Firstly a national financial envelope, to be established by the Commission which is the sum 
of all the direct payments the Member State conc erned would receive under former direct payment 
regimes taking into account the applicable phasing-in rate of the calendar year in question. 
Secondly a national agricultural area, to be established as that part of the agricultural area that 
was in 'good agricultural condition' in June 2003 for the NMS acceded the EU in 2004 and to be adjusted according to objective criteria to be approved by the Commission (e.g. reduction to take 
into account that the concerned Member State could decide not granting direct payments to farms 
smaller than one ha). The SAPS amount per ha results from dividing the national financial envelope by the national agricultural area of th e concerned Member State. All new Member States 
apart from Malta and Slovenia have decided to use SAPS.  
 
The Act of Accession of the Czech Republic, Estoni a, 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 Commiss ion, to pay farmers additional support in the 
form of Complementary National Direct Payments  (CNDPs, commonly known as 'top-ups'). 
 G/SCM/N/253/EU 
 
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  National ceilings for the new Member States  (Annex VIII of Regulation (EC) 73/2009 as 
amended by Commission Implementing Regulation (EU) No 287/2013)  (1000 EUR, the amounts include but are not limited to SAPS envelopes)  
 
Member State 2009 2010 2011 2012 2013 
Bulgaria 287,399 336,041 416,372 499,327 580,087 
Czech Republic 559,622 654,241 739,941 832,144 909,313 
Estonia 60,500 71,603 81,703 92,042 101,165 
Cyprus 31,670 38,928 43,749 49,146 53,499 
Latvia 90,016 105,368 119,268 133,978 146,479 
Lithuania 230,560 271,029 307,729 346,958 380,109 
Hungary 807,366 947,114 1,073,824 1,205,037 1,318,975 
Malta* 3,752 4,231 4,726 5,137 5,503 
Poland 1,877,107 2,192,294 2,477,294 2,788,247 3,044,518 
Romania 623,399 729,863 907,473 1,086,608 1,264,472 
Slovenia* 87,942 103,394 117,423 131,575 144,274 
Slovakia 240,014 280,364 316,964 355,242 388,176 
 * Slovenia and Malta apply SPS 
 4.3.3.3  Specific support 
Member States may grant specific support  to agricultural activities that encourage the protection 
or enhancement of the environment or entail additional agri-environment benefits, for improving the quality and marketing of agricultural products, for practising enhanced animal welfare 
standards, to address specific disadvantages affe cting farmers in the dairy, beef, goat and sheep 
meat and rice sectors in economically vulnerable or environmentally sensitive areas or for vulnerable types of farming, to support risk management measures such as insurance schemes for adverse climatic events and animal or plant diseases or pest infestation and mutual funds for 
animal or plant diseases or environmental incident. For these specific payments Member States 
may use up to 10% of the funds available (under national ceilings) in the SPS.   
4.3.3.4  Suckler cow premium 
Member States may opt for keeping up to 100% of the 'suckler cow premium' coupled. The 
payments are livestock payments made on a fixe d number of head. Farmers keeping suckler cows 
on their holdings may qualify, on application, for a premium for maintaining suckler cows. It is 
granted in the form of an annual premium per calendar year and per farmer within the limits of individual ceilings.  
The suckler cow premium shall be granted to any farmer: 
 
 not supplying milk or milk products from his farm for 12 months from the day on which the 
application is lodged. The supply of milk or milk products directly from the holding to the 
consumer shall not, however, prevent grant of the premium, 
 supplying milk or milk products the total individual quota of which, as referred to in Article 
67 of Regulation (EC) 1234/2007, does not exceed 120,000 kg. However, Member States 
may decide on the basis of objective criteria, which they determine, to change or waive this quantitative limit, provided that the farmer keeps, for at least six consecutive months from the day on which the application is lodged a number of suckler cows at least equal to 
60% and of heifers at most equal to 40%  of the number for which the premium was 
requested. 
 
 Per eligible animal, the amount of the premium is set at EUR 200.  
 G/SCM/N/253/EU 
 
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  4.3.3.5  Additional suckler cow premium 
Member States may grant an additional national suckler cow premium, up to a maximum of EUR 
50 per animal, provided that no discrimination is caused between stock farmers in the Member State concerned.  
 
4.3.3.6  Sheep and goat premium 
Member States may retain 50% of the sheep and goat premium (i.e. 50% of the sheep/goat 
component of the national ceiling) as coupled pa yments. The level of the sheep premium has been 
fixed for several years in advance at EUR 21 per ewe (EUR 16.8 for ewes kept for milk production, and for female goats), plus a EUR 7 supplementary premium payable in Less Favoured Areas (LFA) only. These payment rates should be multiplied with the same percentage rates that will remain as 
coupled payment. To qualify for the supplementary premium a farmer must have at least 50% of 
his agricultural area in the LFA. The supplementary premium may also apply to farmers practising transhumance. 
 
4.3.3.7  Aid for silkworms 
An aid is granted for silkworms and for silkworm eggs within the EU. It is granted to silkworm 
rearers for each box of silkworm eggs used, on condition that the boxes contain a minimum 
quantity of eggs and that the worms have been successfully reared. The aid per box of silkworm 
eggs used is EUR 133.26.  
4.3.3.8  Additional amount for sugar beet and cane producers 
This support concerns payments in accordance with  Section 7, Chapter I of Title IV of Regulation 
(EC) 73/2009 in Member States which have granted the restructuring aid provided for in Article 3 
of Regulation (EC) No 320/2006 for at least 50% of  the sugar quota. The aid shall is granted for a 
maximum of five consecutive years as from the marketing year in which the threshold of 50% has been reached but no later than for the marketing year 2013/2014. The aid is granted in respect of 
the quantity of quota sugar obtained from sugar beet or cane delivered under contracts concluded 
in accordance with Article 50 of Regulation (E C) 1234/2007. The aid is expressed per tonne of 
white sugar of standard quality. The amount of the aid shall be equal to half of the amount 
obtained by dividing the amount of the ceiling referred to in Annex XV of Regulation (EC) 73/2009 
for the Member State concerned for the correspondi ng year by the total of the sugar and inulin 
syrup quota fixed on 20 February 2006 in Annex III to Regulation (EC) 318/2006.  
 
4.3.3.9  Cotton  
The coupled aid is granted per hectare of eligible area of cotton. In order to be eligible, the area 
shall be located on agricultural land authorised by the Member State for cotton production, sown 
under authorised varieties and actually harvested under 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.  
 
Cotton coupled support - Base areas, fixed yields and reference amounts. 
 Base area Fixed yield Aid per ha (€/t)* 
Bulgaria 3,342 ha 1.2 tonne/ha EUR 671.33  
Greece 250,000 ha 3.2 tonne/ha EUR 251.75  
Spain 48,000 ha 3.5 tonne/ha EUR 400.00  
Portugal 360 ha 2.2 tonne/ha EUR 252.73  
*Farmers who are members of an approved inte r-branch organisation are granted an aid per 
eligible hectare increasing the amount of aid per hectare mentioned above by an amount of EUR 2. 
 
4.3.3.10  Separate sugar payment 
Certain New Member States applying the Single Area Payment Scheme may grant within the 
application of this scheme a decoupled Separate Sugar Payment. The payment is granted within 
the limits of the ceilings set out in Annex XV of Regulation (EC) 73/2009. 
 G/SCM/N/253/EU 
 
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  4.3.3.11  Separate fruit and vegetable payment 
Countries applying the Single Area Payment Scheme can introduce a decoupled payment to 
producers who historically produced fruit and vegetables. The Separate Fruit and Vegetables Payment is granted within limits of the component of the national ceiling referred to in Article 40 of 
Regulation (EC) 73/2009 corresponding to fruit and vegetables.  
 4.3.3.12  Separate soft fruit payment 
Article 129 of Regulation (EC) 73/2009 provides that new Member States applying SAPS may 
decide to grant from 2012 a separate soft fruit payment. It shall be granted on the basis of 
objective and non-discriminatory criteria such as the payment received under the transitional soft fruit payment and in respect of a representative period to be fixed by a Member State but not later 
than 2008. In 2012, in addition to separate soft fruit payment Member States may grant national 
aid, but the total amount of the EU aid and nati onal aid shall not exceed the ceilings set in 
Article 129 of regulation (EC) 73/2009. 
 
4.3.3.13  POSEI 
The legal basis for this expenditure is Regulation (EU) 228/2013. Objective factors arising as a 
result of insularity and remoteness of certain regions of the EU impose constraints on economic 
operators and producers in these outermost regions that severely handicap their activities. Therefore appropriate specific supply measures to guarantee supply and to compensate for the 
additional costs arising from their remoteness, insularity and distant location are applied. 
 
4.4  European Agricultural Fund For Rural Development (EAFRD) 
1. Title of the programme 
 
Common Agricultural Policy: Rural Development ("Second Pillar").  
2. Period covered by the notification 
 
1 January 2011 - 31 December 2012.  
3. Policy objective and/or purpose of the programme 
 
Contribute to the achievement of the Common Agricultural Policy's objectives as laid down in the 
Treaty on the Functioning of the European Unio n, 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 contribu te to their achievement, while integrating other 
major policy priorities as spelled out in the co nclusions of the Lisbon and Göteborg European 
Councils for competitiveness and sustainable development.  4. Background and authority for the programme 
 Council Regulation 74/2009 amending Regulation 1698/2005, as well as Regulations 1290/2005 and 378/2007. 
 
5. Form of assistance granted – Grants from EU budget 
 
Rural development programmes co-financed by  Member States and the EU budget.  
 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. The Member States are responsible for the implementation of the programme and the selection of individual projects.  
 G/SCM/N/253/EU 
 
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  7. Total expenditure under the programme 
 
The table below shows the amounts involved (payment appropriations in million € for each financial instrument).  
 
Expenditure (payments) for Ru ral Development (million EUR) 
Financial instrument 2010 2011 2012 
EAFRD 2007-2013 11,116.2 11,794.0 13,116.6  
EAGGF Guarantee Section 
completion of programs 2000-2006 -7.1  
-6.6  
-2.8 
EAGGF Guidance Section completion of earlier programs 168.3  
431.0  
136.2  
Transitional instrument for New Member States Completion of 2004-2006 programs 199.3  
0.0 
 
0.0 
Other 0.0 0.0 0.0  
Total 11,476.7  12,218.4  13,250.0  
 
8. Duration of the programme 
 
2007-2013.  
 9. Trade effects 
  No, or at most minimal, trade distorting effects. 
 
4.5  Measures Financed By The European Agricultural Fund For Rural Development 
("Second Pillar" Of The CAP) 
4.5.1  Policy framework The European Union has an active rural development policy because this helps achieve valuable 
goals for the countryside and for the people who live and work there. The EU's rural areas are a 
vital part of its physical make-up and its identity. More than 91% of the territory of the EU is "rural", and this area is home to more than 56% of the EU's population. Many of these rural areas 
face significant challenges. Average income per head is lower in rural regions than in towns and 
cities, while the skills base is narrower and the services sector is less developed. Also, caring for the rural environment often carries a financial cost. The Europe 2020 Strategy and the Göteborg 
Strategy for sustainable development 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 woul d work poorly in practice. Not all countries in 
the EU would be able to afford the policy whic h 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 common rural development policy, which nonetheless places considerable control in the hands of individual Member States and regions.  The policy is funded partly from the central EU 
budget and partly from individual Member States' national or regional budgets. 
 
The essential rules governing rural development policy for the period 2007 to 2013, as well as the policy measures available to Member States and regions, are set out in Council Regulation 
1698/2005 amended by Regulation 74/2009. Under this Regulation, rural development policy for 
2007 to 2013 is focused on three themes (known as "thematic axes"). These are:  
 improving the competitiveness of the agricultural and forestry sector; 
 improving the environment and the countryside; 
 improving the quality of life in rural areas and encouraging diversification of the rural 
economy.  G/SCM/N/253/EU 
 
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To help ensure a balanced approach to policy, Member States and regions are obliged to spread their rural development funding between all three of  these thematic axes. A further requirement is 
that some of the funding must support projects based on experience with the Leader Community 
Initiatives. The "Leader approach" to rural development involves highly individual projects 
designed and executed by local partnerships to address specific local problems. As before 2007, 
every Member State (or region, in cases where powers are delegated to regional level) must set 
out a rural development programme, which specifies what funding will be spent on which 
measures in the period 2007 to 2013. A new feature for 2007 to 2013 is a greater emphasis on coherent strategy for rural development across the EU as a whole. This is being achieved through 
the use of National Strategy Plans which must be based on EU Strategic Guidelines. This approach 
should help to: 
 
 identify the areas where the use of EU support for rural development adds the most value at 
EU level; 
 make the link with the main EU priorities (for  example, those set out under the Lisbon and 
Göteborg agendas); 
 ensure consistency with other EU policies, in particular those for economic cohesion and the 
environment; 
 assist the implementation of the new market-oriented CAP and the necessary restructuring it 
will entail in the old and new Member States.  
 
4.5.2  Rural development measures 
Council Regulations 1698/2005 of 20 September 2005 (OJ L277 of 21.10.2005) as amended by 
Regulation 74/2009 of 19 January 2009 (OJ L30 of  31.1.2009) constitutes the legal basis for the 
Rural Development measures summarised in section E.2 of this notification.  
4.5.2.1  Axis 1: Improving compet itiveness for farming and forestry 
 Vocational training and information actions, including diffusion of scientific knowledge and 
innovative practices, for persons engaged in the agricultural, food and forestry sectors. 
Support does not include courses of instruction or training which form part of normal 
programmes or systems of agricultural and forestry education at secondary or higher 
levels. 
 
 Setting up of 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 activi ties. The support shall be granted up to the 
maximum amount laid down in the Annex. 
 
 Early retirement of farmers and farm workers. Support is granted to farmers who decide to 
stop their agricultural activity for the purpose of transferring the holdings to other farmers 
and to farm workers who decide to stop all farm work definitively upon the transfer of the holding. The transferor shall not be less than 55 years old but not yet of normal retirement 
age at the time of transfer or not more than 10 years younger than the normal retirement 
age. He or she must stop all commercial farming activity definitively and have practiced farming for the 10 years preceding transfer. The total duration of early retirement support 
shall not exceed 15 years for the transferor and for the farm worker. It shall not go beyond 
the 70th birthday of the transferor and the no rmal retirement age of the farm worker. The 
support shall be granted up to the maximum amount. 
 
 Use of advisory services by farmers and forest  holders. Support is granted to help farmers 
and forest holders to meet costs arising from the use of advisory services for the 
improvement of the overall performance of their holding. As a minimum the advisory 
service to farmers shall cover the statutory management requirements and the good 
agricultural and environmental conditions provided for in Articles 5 and 6 of and in Annexes II and III to Regulation (EC) 73/200 9 and the occupational safety standards 
based on EU legislation. 
 G/SCM/N/253/EU 
 
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   Setting up of farm management, farm relief and farm advisory services, as well as of 
forestry advisory services. Support for the use of advisory services shall be limited to 80% 
of the cost or a maximum of 1500 €. Support for setting up of management, relief and advisory services is granted in order to cover costs arising from the setting up of farm 
management, farm relief and farm advisory serv ices as well as forestry advisory services 
and shall be digressive over a maximum period of five year s from setting up. 
 
 Modernisation of agricultural holdings. Support for modernisation of agricultural holdings is 
granted for tangible and/or intangible investments which improve the overall performance 
of the agricultural holding and respect the EU standards applicable to the investment concerned. Where investments are made in order to comply with EU standards, support 
may be granted only to those which are made in order to comply with newly introduced EU 
standards. In that case, a period of grace, not exceeding 36 months from the date on which the standard becomes mandatory for the agricultural holding, may be provided to 
meet that standard. In the case of young farmers receiving setting up support, the 
modernization support may be granted for investments to comply with existing EU standards, when identified in a business plan. The period of grace within which the 
standard needs to be met, may not exceed 36 months from the date of setting up. Support 
is limited to 40-75% depending on the area where the farm is located. 
 
 Adding value to agricultural and forestry products. Support is granted for tangible and/or 
intangible investments which improve the over all performance of the enterprise and which 
concern the processing and/or marketing of products covered by Annex I to the Treaty, except fishery products, and of forestry products and/or the development of new products, 
processes and technologies linked to products covered by Annex I to the Treaty, except 
fishery products, and to forestry products and which respect the EU standards applicable to the investment concerned. Support is limited to the maximum rate of 40-75% 
depending on the area where the farm is located. 
 
 Cooperation for development of new products, processes and technologies in the agriculture 
and food sector and in the forestry sector. Support is granted to promote the cooperation 
between primary producers in agriculture and forestry, the processing industry and/or 
third parties. It shall contribute to cover costs incurred for the cooperation. 
 
 Improving and developing infrastructure related to the development and adaptation of 
agriculture and forestry Support may cover notably operations related to access to farm 
and forest land, land consolidation and improvement, energy supply and water 
management. 
 
 Helping farmers to adapt to demanding standards based on EU legislation. Support 
contributes partly to costs incurred and income foregone caused to farmers who have to 
apply standards in the fields of the environm ental protection, public health, animal and 
plant health, animal welfare and occupational safety. These standards must be newly introduced in national legislation implementing EU law and impose new obligations or 
restrictions to farming practice which have a significant impact on typical farm operating 
costs and concern a significant number of farmer s. The support is granted as a flat-rate, 
temporary and digressive aid on an annual basis, for a maximum duration of five years 
from the date the standard becomes mandatory in accordance with EU legislation. Support 
shall be limited to a maximum of 10,000 € per holding. 
 
 Supporting farmers who participate in food quality schemes. Support covers agricultural 
products only intended for human consumption and is only for EU food quality schemes, or 
for those recognized by the Member States which comply with precise criteria. Schemes, whose sole purpose 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 participation in supported schemes, for a maximum duration of 
five years. The support is limited to a maximum amount 3,000 € per holding. 
 
 Supporting producer groups for information and promotion activities for products under food 
quality schemes. Support concerns products covered by the support of the quality schemes 
mentioned above. It shall be limited to a maximum of 70% of the cost. G/SCM/N/253/EU 
 
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 Transitional measures for Bulgaria, the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, 
Hungary, Malta, Poland, Romania, Slovenia and Slovakia concerning:  
 
o supporting semi-subsistence agricultural holdings undergoing restructuring. 
Support provided to agricultural holdings which produce primarily for their own 
consumption and also market a proportion of their output (semi-subsistence 
agricultural holdings) shall be granted to farmers who submit a business plan. 
The support is paid up to a maximum of 1,500 € per holding per year for a maximum of five years. 
o supporting setting up of producer groups. Support is granted in order to 
facilitate the setting up and administrative operation of producer groups for the 
purposes of firstly adapting the production and output of producers who are members of such groups to market requirements. Secondly it is granted for the 
purpose of jointly placing goods on the market, including preparation for sale, 
centralisation of sales and supply to bulk buyers and thirdly for establishing common rules on production information, with particular regard to harvesting 
and availability. The support can be granted as a flat-rate aid in annual 
instalments for the first five years following the date on which the producer group was recognised. It shall be calcul ated on the basis of the group's annual 
marketed production, up to the ceilings of 100,000 € in the first year. The 
support shall be granted to producer groups which are officially recognised by 
the Member State's competent authority by 31 December 2013. 
 
4.5.2.2  Axis 2: environment and countryside 
 Natural handicap payments to farmers in mountain areas and other than mountain areas. 
Payments compensate for farmers' additional costs and income forgone related to the 
handicap for agricultural production in the area concerned. Payments are granted to 
farmers who undertake to pursue their farming activity in areas designated for at least five years from the first payment. Payments are fixed between minimum 25 € and maximum 
250 € per hectare.  
 
 Natura 2000 payments and payments linked to Directive 2000/60/EC. Support is granted 
annually and per hectare of UAA to farmers in order to compensate for costs incurred and 
income foregone resulting from disadvantages in the areas concerned related to the 
implementation of Directives 79/409/EEC, 92/43/EEC and 2000/60/EC. Support is limited 
to the maximum amount of 500 € per hectare. 
 
 Agri-environment payments. Member States must make the support available throughout 
their territories, in accordance with their sp ecific needs. Agri-environment payments are 
granted to farmers who make on a voluntary basis agri-environmental commitments. 
Where duly justified to achieve environmental objectives, agri-environment payments may 
be granted to other land managers. Agri -environment payments cover only those 
commitments going beyond the relevant mandatory standards established pursuant to 
Articles 5 and 6 of and in Annexes II and III to Regulation (EC) 73/2009 as well as 
minimum requirements for fertiliser and plant protection product use and other relevant mandatory requirements established by national legislation and identified in the 
programme. The commitments are undertaken as a general rule for a period between five 
and seven years. The payments are granted annually and cover additional costs and income foregone resulting from the commitments made. Where necessary, they may cover also transaction cost. Where appropriate, the beneficiaries may be selected on the basis of 
calls for tender, applying criteria of economic and environmental efficiency. Support is 
limited to the maximum amounts between 200 € per Livestock Unit and 450-900 € per hectare. Support may be provided for the conservation of genetic resources in agriculture 
for operations not covered by the provisions under paragraphs 1 to 4. 
 
 First afforestation of agricultural land. Support covers only one or more of (a) establishment 
costs; (b) an annual premium per hectare afforested to contribute to covering 
maintenance costs for a maximum of five years and (c) an annual premium per hectare to contribute to covering loss of income resulting from afforestation for a maximum of 15 years for farmers or associations thereof who worked the land before its afforestation or G/SCM/N/253/EU 
 
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  for any other natural person or private law body. Support for the afforestation of 
agricultural land owned by public authorities covers only the cost of establishment. Support to farmers or other natural persons and private law bodies is limited to a maximum of 700 € per hectare. 
 
 Animal welfare payments granted to farmers who make on a voluntary basis animal welfare 
commitments. They cover only those commitments going beyond the relevant mandatory 
standards established pursuant to Article 5 of and Annex II to Regulation (EC) No 73/2009 
and other relevant mandatory requirements established by national legislation and identified in the programme. The commitmen ts are undertaken as a general rule for a 
period between five and seven years. Where ne cessary and justified, a longer period shall 
be determined according to the procedure refe rred to in Article 90(2) for particular types 
of commitments. The payments cover additional costs and income foregone resulting from the commitment made. Where necessary, they may cover also transaction cost. 
 
 Support for non-productive investments. Support provided is granted for (a) investments 
linked to the achievement of commitments undertaken pursuant to the measure provided 
for agri-environmental payments or objectives and (b) on-farm investments which 
enhance the public amenity value of a Natura 2000 area or other high nature value areas to be defined in the programme. 
 
4.5.2.3  Axis 3: Improving quality of life in  rural areas and diversification of the rural 
economy 
 Support for the creation and development of micro-enterprises with a view to promoting 
entrepreneurship and developing the economic fabric. 
 
 Basic services for the economy and rural population. The support covers the setting up of 
basic services, including cultural and leisure activities, concerning a village or group of 
villages, and related small-scale infrastructure. 
 
 Conservation and upgrading of the rural heritage. 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 associated with maintenance, restoration and upgrading of the natural heritage and with the development 
of high natural value sites. It also covers support for studies and investments associated 
with maintenance, restoration and upgrading of the cultural heritage such as the cultural features of villages and the rural landscape. 
 
 Training and information measure for economic actors operating in the fields covered by axis 
3. Support does not include courses of instruction or training which form part of normal 
education programmes or systems at secondary or higher levels. 
 
4.5.2.4  Leader axis 
The support granted under the Leader axis shall be for: 
 
 Implementing local development strategies with a view to achieving the objectives of one or 
more of the three other axes. 
 Implementing cooperation projects. 
 The support is granted to inter-territorial or transnational cooperation projects. "Inter-
territorial cooperation" means cooperation within a Member State. "Transnational cooperation" means cooperation between territories in several Member States and with 
territories in third countries. Only expenditure relating to the territories within the EU shall 
be eligible for support. 
 Running local action groups, acquiring skills and animating through studies, training and 
promotional events. 
 G/SCM/N/253/EU 
 
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  4.6  IPARD 
1. Title of the programme 
 
IPARD, the Rural Development component of the Instrument for Pre-accession Assistance. 
  
2. Period covered by the notification 
 
1 January 2011 - 31 December 2012. 
 3. Policy objective and/or purpose of the programme 
 
The objective of IPARD is to provide assistance for the implementation of the acquis concerning 
the Common Agricultural Policy and to contribute to the sustainable adaptation of the agricultural sector and rural areas in the candidate countries.  
 
4. Background and authority for the programme 
 
Legal basis: Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for 
Pre-Accession Assistance (IPA), (OJ L 210, 31.7.2006)  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 operatio nal programmes approved by the Commission. By 
means of decentralised management the implementation of the programmes in terms of selection, approval, controls and financial execution of the individual projects, is delegated to the IPARD beneficiary countries. Aid to final beneficiaries is normally paid in the form of grants. 
 
7. Total expenditure under the programme  
 
Expenditure for pre-accession (million EUR) 
Financial instrument 2010 2011 2012 
Ipard 14.4 101.8 6.5 
 
8. Duration of the programme 
 
2007-2013  
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 
candidate and potential candidate countries in progressive alignment with the standards and 
policies of the European Union, including where appropriate the acquis communautaire , with a 
view to membership.  
The rural development component IPARD shall su pport 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 
preparation of the candidate countries for the implementation of EU structures and post-accession 
EU-funded rural development programmes. During th e period concerned the countries eligible for 
IPARD were Turkey, Croatia and the Form er Yugoslav Republic of Macedonia. 
 G/SCM/N/253/EU 
 
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  5  EUROPEAN FISHERIES FUND (EFF) 
1. Title of the measure 
 
European Fisheries Fund 
 
2. Period covered by the notification 
 
2011-2012 
 3. Policy objectives and/or programme objectives 
 
The EFF, the successor of the Financial Instrument for Fisheries Guidance (FIFG), exists to grant 
financial support to the EU's fisheries sector during the period 2007-2013 to help it adapt to changes required in the sector. The objectives of the EFF are to:  
 
- support the Common Fisheries Policy with a view to guaranteeing the sustainable 
exploitation of aquatic resources and the economic, environmental and social 
sustainability of the fisheries sector; 
  - promote the sustainable development of inland fishing;  
- promote a sustainable balance between resour ces and the fishing capacity of the EU's 
fishing fleet; 
 
- strengthen the competitiveness of the operating structures and the development of 
economically viable enterprises in the fisheries sector; 
 
- foster the protection and enhancement of the environment and natural resources 
where related to the fisheries sector; 
 
- encourage sustainable development and impr ovement of the quality of life in areas 
with an active fishing industry; 
 
- promote equality between men and women in the development of the fisheries sector 
and fisheries areas. 
 To achieve these objectives the EFF targets the following priority areas (axis):  
 
- Axis 1 Adjustment of the fleet: aid for permanent and/or temporary ceasing of fishing 
activities, on-board safety and working improvements, more selective gear, small-
scale coastal fisheries, socio-economic measures including early retirement and 
retraining. 
 
- Axis 2 Aquaculture, processing and marketing, inland fishing: diversification into new 
aquaculture species, environmentally-friendly aquaculture, implementation of animal 
health measures, processing and marketing of fisheries and aquaculture products, support for inland fishing vessels of less than 12 metres not using towed gear.  
 
- Axis 3 Measures of common interest: protection and development of aquatic fauna 
and flora, improve services offered by fishing ports, shelters and landing sites, promotion of partnerships between scientists and professionals in the fishing sector, 
development of new marketing and prom otional campaigns, pilot projects, 
reassignment of fishing vessels for uses outside the fisheries sector. 
 
- Axis 4 Sustainable development of fisheries areas: restructuring and diversification of 
economic activities, promotion of sea food, provision of small infrastructure (e.g. for tourism), restoration of production damaged by disasters, promotion inter-regional 
and trans-national cooperation, capacity  building to prepare local development 
strategies, protection of natural and architectural heritage. 
 G/SCM/N/253/EU 
 
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  - Axis 5 Technical assistance: studies, reports, information activities and other actions 
relating to the implementation of the above measures.  
  
  G/SCM/N/253/EU  
 
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EFF PROGRAMMED AMOUNTS (TOTALS FOR THE PERIOD 2007-2013), BROK EN DOWN BY PRIORITY AXIS AND BY EU MEMBER STATE 
 
Member State 
 Priority axis 1 Priority axis 2 Priority ax is 3 Priority axis 4 Priority axis 5 Total 
Amount % Amount % Amount % Amount % Amount %   
BE Belgium  7.561.648   28,79   5.000.000   19,04   9.488.352   36,13   2.900.000   11,04   1.311.648   4,99   26.261.648  
BG Bulgaria  8.000.970   10,00   36.004.371   45,00   20.002.426   25,00   12.001.456   15,00   4.000.485   5,00   80.009.708  
CZ Czech Republic  -   -   11.926.937   44,00   13.824.404   51,00   -   -   1.355.334   5,00   27.106.675  
DK Denmark  40.365.342   30,20   37.649.524   28,16   36.515.266   27,32   12.461.279   9,32   6.683.758   5,00   133.675.169  
DE Germany  8.145.000   5,23   57.560.225   36,93   68.687.844   44,07   19.438.000   12,47   2.034.348   1,31   155.865.417  
EE Estonia  15.264.531   18,05   24.583.929   29,07   21.209.664   25,08   19.281.513   22,80   4.228.402   5,00   84.568.039  
IE Ireland  34.766.000   82,25   -   -   6.000.000   14,20   1.500.603   3,55   -   -   42.266.603  
EL Greece  77.272.459   37,18   59.689.538   28,72   32.320.240   15,55   33.300.000   16,02   5.250.000   2,53   207.832.237  
ES Spain  442.907.459   39,13   322.048.247   28,45   298.755.661   26,39   49.212.448   4,35   18.967.097   1,68   1.131.890.912  
FR France  59.621.494   27,60   63.029.212   29,17   85.049.416   39,37   5.699.644   2,64   2.653.318   1,23   216.053.084  
IT Italy  161.250.284   38,00   106.085.713   25,00   106.085.713   25,00   16.973.714   4,00   33.947.430   8,00   424.342.854  
CY Cyprus  2.200.000   11,15   3.250.000   16,48   12.924.418   65,52   1.000.000   5,07   350.000   1,77   19.724.418  
LV Latvia  20.860.942   16,69   46.128.750   36,90   24.153.000   19,32   28.911.476   23,13   4.961.395   3,97   125.015.563  
LT Lithuania  13.667.647   24,98   22.431.005   41,00   9.249.241   16,90   6.693.770   12,23   2.671.745   4,88   54.713.408  
HU Hungary  -   -   24.163.925   69,34   8.944.392   25,66   -   -   1.742.543   5,00   34.850.860  
MT Malta  2.175.000   25,98   1.760.250   21,02   4.095.079   48,91   -   -   342.000   4,08   8.372.329  
NL Netherlands  16.913.233   34,82   7.379.398   15,19   16.903.461   34,80   4.987.125   10,27   2.395.200   4,93   48.578.417  
AT Austria  -   -   5.164.318   98,19   50.000   0,95   -   -   45.000   0,86   5.259.318  
PL Poland  168.841.292   23,00   146.818.515   20,00   146.818.515   20,00   234.909.624   32,00   36.704.628   5,00   734.092.574  
PT Portugal  62.865.134   25,50   74.187.067   30,10   83.407.876   33,84   17.403.406   7,06   8.621.766   3,50   246.485.249   
  G/SCM/N/253/EU  
 
- 35 - Member State 
 Priority axis 1 Priority axis 2 Priority ax is 3 Priority axis 4 Priority axis 5 Total 
Amount % Amount % Amount % Amount % Amount %   
RO Romania  9.975.000   4,32   105.000.000   45,51   30.000.000   13,00   75.000.000   32,51   10.739.207   4,65   230.714.207  
SI Slovenia  2.164.029   10,00   7.141.293   33,00   7.574.097   35,00   2.164.029   10,00   2.596.835   12,00   21.640.283  
SK Slovak 
Republic  -   -   10.467.810   76,47   2.536.292   18,53   -   -   684.426   5,00   13.688.528  
FI Finland  3.445.000   8,73   16.990.000   43,07   14.783.827   37,48   3.606.000   9,14   624.000   1,58   39.448.827  
SE Sweden  13.666.201   25,00   10.932.961   20,00   19.132.681   35,00   8.199.720   15,00   2.733.240   5,00   54.664.803  
UK United 
Kingdom  39.634.805   28,76   33.589.711   24,37   49.620.896   36,00   11.598.450   8,42   3.384.027   2,46   137.827.889  
Total 1.211.563.470   28,14   1.238.982.699   28,78   1.128.132.761   26,21   567.242.257   13,18   159.027.832   3,69   4.304.949.019  
 
For ease of reference, please refer to the legend below: 
Priority axis 1: measures for the adaptation of the fishing fleet Priority axis 2: aquaculture, inland fishing, processing and marketing of fishery and aquaculture products 
Priority axis 3: measures of common interest 
Priority axis 4: sustainable development of fisheries areas Priority axis 5: technical assistance G/SCM/N/253/EU 
 
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4. Legal authority 
 Treaty establishing the European Community, in particular Articles 158, 159 and 161 thereof and 
Treaty on the Functioning of the European Union, in particular Articles 174, 175 and 177 thereof. 
Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund, 
Commission Regulation (EC) No 498/2007 of 26 March 2007 laying down detailed rules for the 
implementation of Council Regulation (EC) No 1198/2006 on the European Fisheries Fund; 
 5.  Type of aid 
 
Aid for the restructuring of fishing fleets, aquacu lture, processing and marketing circuits, port 
facilities, selective fishing methods, financing of local strategies in support of the sustainable development of fisheries areas, and socio-economic measures.  
 
6. To whom and how the subsidy is provided 
 
Co-financing principle and principle of regionally diversified action.  
 Ship-owners, enterprises, producer organizati ons, public and private bodies, professional 
organizations, cooperatives, fishermen.  
 
Aid is normally in the form of grants.  
7. Total budget of the programme 
 
Total budget for 2007 – 2013: 4.3 billion EUR 
 
2011: 651 MEUR,  2012: 672 MEUR.   8. Duration of the programme 
  2007 - 2013.   
9. Trade effects 
 
The EU has a shortfall in fishery and aquaculture products and is a major importer of these 
products from non-EU countries. The structural aid has only a very small influence on this 
situation.   5.1  Common Organisation of Markets in Fishery and Aquaculture Products 
1. Title of the measure 
 
Common Organisation of the Market in Fishery and Aquaculture Products.  
 
2. Period covered by the notification 
 
2011 - 2012.  
 3. Policy objectives and/or programme objectives 
 
The objectives of this instrument are the following:  
  - To promote sustainable fishing and optimum use of fish products.  
 - To stabilize the market.  
 - To ensure a regular supply of high-quality products.   - To guarantee reasonable consumer prices.  
 - To support fishermen's incomes.  
 G/SCM/N/253/EU 
 
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  4. Legal authority 
 
Treaty establishing the European Community, in particular Articles 32, 33 and 34 thereof and Treaty on the Functioning of the European Union, in particular Articles 38, 39, 40 and 43 thereof. 
Regulations (EC) No. 104/2000 and (EC) No. 791/2007 (outermost regions). 
 5. Intervention mechanisms 
 Financial compensation, carry-over aid, autonomous withdrawal and carry-over, private storage aid, compensatory payment for tuna supplied to industry. Compensation for the additional costs, resulting from the remoteness, insularity and other specific handicaps, incurred in the marketing of 
certain fishery products from certain outermost regions of the EU. 
 6. To whom and how the subsidy is provided 
 Mechanisms implemented by producers' organizations. In outermost regions measures are implemented by the EU and the Member States concerned. 
 
Beneficiaries: fishermen belonging to such organizations. In outermost regions beneficiaries can also include ship-owners and/or fish-processors.   
Aid is normally in the form of grants.  
 7. Total budget of the programme 
 2011: 30 MEUR 2012: 30 MEUR  
8. Duration of the programme 
 
Fishing years.   
9. Effects on trade 
 
N o n e  i n  s o  f a r  a s  t h e  C o m m o n  O r g a n i z a t i o n  o f  M a r k e t s  a i m s  a t  r e g u l a r i z i n g  p r i c e s  a n d  n o t  a t  
artificially raising their level. The amounts paid under the programme represent less than 0.002% 
of the value of landed fish in the EU.  
6  FRAMEWORK PROGRAMMES IN THE FIELD OF RESEARCH 
1. Title of the subsidy programme 
 
- the Seventh Framework Programme of the European Community for research, 
technological development and demonstration activities (2007-2013), and 
 
- the Seventh Framework Programme of the European Atomic Energy Community 
(EURATOM) for research and training activities (2007-2011) and the Framework 
Programme of the European Atomic Energy Community (EURATOM) for nuclear research and training activities (2012-2013). 
 
The arrangements for implementing these framework programmes are essentially the same and are therefore described together in the following paragraphs.  
2. Period covered 
 
Calendar years of 2011 and 2012. 
 
3. Policy objective 
 
Financial participation in EU research and technological development (RTD) activities during the 
period 2011 and 2012 is provided through the above-mentioned framework programmes.  G/SCM/N/253/EU 
 
- 38 - 
 
  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 implem entation of the other European Union policies 
under the Treaty. These objectives and the activities  to be undertaken are stated in the Treaty and 
further implemented through the Decision adop ting this framework programme (Decision No. 
1982/2006/EC of 18 December 2006
1). 
 
The framework 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 2002
2 and 2012/93/Euratom of 19 December 20113). 
 
The activities under these framework programmes relate to fundamental research, industrial 
research or pre-competitive development. Financing of product development is excluded. 
 
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 Eu ropean Atomic Energy Community. 
 The legal framework of the framework programmes consists of a number of main legal and 
implementing acts: 
 A decision by the Council on  the "Framework Programme": 
 
- EC: Decision No. 1982/2006/EC of the European Parliament 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. 
 
Each framework programme is further implemented by decisions by the Council adopting "Specific 
Programmes": 
 
- EC: Specific Programmes "Cooperation", "Ide as", "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. 
 
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 Eu ropean Parliament and of the Council of 
18 December 2006, OJ L 391, 30.12.2006, p. 1 
 
- Euratom: Council Regulation (Euratom) No. 1908/2006 of 19 December 2006, 
OJ L 400, 30.12.2006, p. 1 
 
Each year, annual work programmes are adopted specifying the research topics and other 
conditions for the award of grants.  
                                               
1 OJ L 412, 30.12.2006, p. 1. 
2 OJ L 400, 30.12.2006, p.1. 
3 OJ L 47, 18.2.2012, p. 25. G/SCM/N/253/EU 
 
- 39 - 
 
  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/page/home.  
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 participate 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 countries 
targeted by the international cooperation activi ties of the Framework Programme, currently 169 
countries, may participate and receive funding under in a large number of projects. Legal entities 
established in other third countries may participate in projects. Funding for legal entities the latter 
may be provided if it foreseen in a work programme or provision is made for it in an agreement or if it is essential for carrying out the project.  
Research projects must include the participation of at least three independent legal entities 
established in three different Member States or associated countries.  
The grant is awarded mainly on the basis of th e scientific excellence to projects submitted by 
consortia of universities, research organisations and undertakings following, as a general rule, an invitation for proposals and an evaluation pr ocedure with independent experts and selection 
procedure. The undertakings apply in function of their interest in carrying out a research project 
on a specific research topic in collaboration with other partners.  The amount of the grant is typically calculated as a percentage (typically 50% or 75%) of eligible 
costs of the project. Eligible costs are defined in the Rules for Participation. 
 7. Amount of subsidy 
 
2011-2012 Total amounts 
granted 
(in millions of EUR) 
Seventh framework programme of  the European Community for 
research, technological development and demonstration activities 14,016 
Seventh framework programme of the European Atomic Energy 
Community (EURATOM) (excluding Fusion grants) 90 
Total 14,106 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement. 
 A project typically lasts for 3-4 years and the EU funding is awarded for this period. Subject to delivery of required documents at pre-determined deadlines, payments are released in 
instalments. 
 9. Trade effects of the subsidy 
 The Framework Programmes have no direct impact on trade. As a general rule, further work and considerable additional financial efforts of the participants are always necessary for the results of an RTD project to lead to a commercially exploitable process or product. 
 
Furthermore, access to the results must be shared among partners and a more widely dissemination of results is encouraged and supporte d, 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.  G/SCM/N/253/EU 
 
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  The economic impact of industrially oriented programmes can be assessed only several years after 
the completion of the projects because further subs tantive investment is required after the end of 
the research projects to develop any commercial applications.  
6.1  Research on Coal and Steel 
The Treaty establishing the European Coal and Steel Community (ECSC) expired on 23 July 2002. 
The remaining assets at the expiry of the ECSC were transferred to the European Community and 
a common Research Fund for Coal and Steel (RFCS) was created, dedicated to research in the coal 
and steel sectors. The activities carried out under this Fund are exclusively financed by the yearly returns generated by these assets.  
The Research Programme of the Research Fund for Coal and Steel was established by the Council 
Decisions 2003/76/EC, 2003/77/EC , 2003/78/EC of 1 February 2003, and 2008/376/EC of 
29 April 2008 published in the Official Journal of 5 February 2003 (see OJ L 29/22, OJ L 29/25, OJ 
L 29/28). This last decision has been amended by the Council decision 2008/376/EC of 
29 April 2008, published in the OJ L130/7 dated 20.5.2008.  
The programme is closely co-ordinated with other activities, carried out either in the Member 
States or existing EU research programmes, su ch 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 be tween the different research programmes and 
support the exchange of information between projects financed under this programme and those financed under the Research Framework Programme. 
 
The programme related documents and the information package are available on CORDIS at: http://www.cordis.lu/coal-steel-rtd/home.html.  
 
For coal and steel, the Union contributes financially in the following ways: through research, pilot and demonstration (RTD) projects, accompanying measures and support and preparatory actions.  
(1) Research, Pilot and Demonstration: 
 Research projects are intended to cover invest igative or experimental work with the aim of 
acquiring further knowledge. The financial contribution of the Union is up to 60% of the allowable 
costs.  
Pilot projects address the construction, operation and development of an installation or a 
significant part of an installation on an appropriate scale. These installations should have a sufficient scale for use. They should allow the investigation of potential for putting theoretical or laboratory results either into practice or to in crease the reliability of the technical and economic 
data needed to progress to the demonstration stage, and in certain cases to the industrial and/or 
commercial stage. The financial contribution of the Union is up to 50% of the allowable costs.  
Demonstration project: aim at constructing and/or operating an industrial-scale installation or a 
significant part of an industrial-scale installation. Such projects aim to bring together all the technical and economic data in order to proceed with the industrial and/or commercial exploitation 
of the technology at minimum risk. The financial contribution of the Union is up to 50% of the 
allowable costs.  
(1) Accompanying measures are designed to complement and/or co-ordinate 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.  G/SCM/N/253/EU 
 
- 41 - 
 
   Total EC support allocated to coal and steel projects in the period 2011 and 2012 are: 
 
Year 2011 2012 
Support in Million of € 61 58 
 
7  THE EUROPEAN UNION'S STRUCTURAL ACTIONS 
The Union's structural actions (comprising the Structural Funds and the Cohesion Fund) are 
intended to strengthen the economic and social co hesion 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 legislative provisions have been adopted for the period 2007-13. The current 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 F und (ESF) and the Cohesion Fund (CF). Based 
on the principle of management shared betw een the Union, the Member States and the 
regions, this regulation offers a new prog ramming process as well as new norms for 
financially managing, controlling and evaluating the projects. The cohesion policy is 
reorganised around three new priority objectives: convergence, regional competitiveness 
and employment, and European territorial cooperation. 
- A regulation for each of the sources of financing (ERDF, ESF, CF and the Instrument for 
Pre-Accession Assistance (IPA)). 
- A new regulation creating the possibility to create a cross-border authority to carry out the 
cooperation programmes. 
 
 The budgetary commitments in 2011 and 2012 amounted to:  
 
 
 
Fund   
 
Budget available   
2011 
Execution 
  
 
Budget available 
  
2012 
Execution 
 
ERDF 28 646 377 370 28 644 607 507  
 29 433 561 603 
 29 433 561 603  
 
CF 11 022 336 363 11 020 238 878 8 671 820 905 
 8 671 805 422 
ESF 11 077 729 386 10 077 729 386  11 276 766 422 11 276 766 422  
 
The technical assistance for Commission activities (for all ERDF, CF & IPA) is excluded from the 
calculations. 
These structural actions are required to conform strictly to the Union's rules on the provision of state aid (Articles 107-108 of the TFEU). 
The structural actions are notified in the spirit of  transparency. The aid involved is largely devoted 
to the least-developed areas of the EU, and the great majority of it 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 Regional Development Fund (ERDF). 
2. Period covered by the notification 
2011, 2012. G/SCM/N/253/EU 
 
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  3. Programming period 
The period covered by the notification refers to programming periods: 2007-2013 (Please note 
that the previous programming period 2000-2006 is now in the process of closure of the interventions). 
In the programming period 2007-2013, the Union intervention in the field of the Cohesion Policy is 
being realised through the Structural Funds (SF), which are the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the Cohesion Fund (CF). 
4. Legal basis 
Articles 174 and 176 of the TFEU 
 For the programming period 2007-2013, the legal basis is: 
- Council Regulation 1083/2006 (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; 
- Council 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; 
- Commission Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for 
the implementation of Council Regulation (EC) No 1083/2006 laying down general 
provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulati on (EC) No 1080/2006 of the European 
Parliament and of the Council on the European Regional Development Fund. 
 5. Form of assistance granted – Grants from the Union budget for 
ERDF resources are mainly used to co-finance: 
 productive investment leading to the creation or maintenance of jobs; 
 investment in infrastructure; 
 development of endogenous potential by me asures which support regional and local 
development. 
 6. Objectives 
The previous Structural Funds for the period 2000-06 give way to a new architecture which 
simplifies the system in the period 2007-2013. The objectives of the new period 2007-2013 are the following: 
- The Convergence objective, which shall be aimed at speeding up the convergence of 
the least-developed Member States and regions by improving conditions for growth and employment through the increasing and improvement of the quality of investment 
in physical and human capital, the develo pment of innovation and of the knowledge 
society, adaptability to economic and soci al changes, the protection and improvement 
of the environment, and administrative effi ciency. This objective is financed by the 
ERDF, the ESF and the CF. 
 
- The Regional competitiveness and employment objective, which shall, 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 increasing and improvement of the quality of investment in human capital, innovation and the 
promotion of the knowledge society, entrepreneurship, the protection and 
improvement of the environment, and the impr ovement of accessibility, adaptability of 
workers and businesses as well as the development of inclusive job markets. This objective is financed by the ERDF and the ESF. 
 G/SCM/N/253/EU 
 
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  - The European territorial cooperation objective, which shall be aimed at strengthening 
cross-border cooperation through joint local and regional initiatives, 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. 
 
7. Eligibility 
The eligibility in the period 2007-2013 is as follows: 
 
- 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 criteria basis (GNI less than 90% of the Eu ropean 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 the 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 areas eligible are divided in three: 
 
- For cross-border cooperation: NUTS level 3 regions are eligible, along all the 
land-based internal borders and some ex ternal 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.  
8. Principles of intervention 
The principles of intervention for the period 2007-2013 are the same as for the period 2000-06: 
complementarity, coherence, coordination, conformity and additionality. Furthermore, the following principles are introduced: proportionality, equality between men and women and 
non-discrimination, sustainable development and us ing the Funds to focus on the Lisbon strategy 
priorities. 
The principle of complementarity : Union actions financed by Structural Funds shall 
complement or contribute to corresponding national operations. 
The principle of additionality : for those regions covered by the convergence objective the 
Commission and the Member States verify the level of public expenditure. The Structural Funds 
must not substitute a State's infrastructural spending. For the new programming period, there 
moreover exists a financial corrective mechanism in the event of this principle not being respected, which was not the case in 2000-06. 
The Funds must now target the European Unio n priorities in terms of the promotion of 
competitiveness and employment creation. The Commi ssion and the Member States see to it that 
at least 60% of the spending of all the Member States on the convergence objective and at least 
75% of the expenditure on the regional competit iveness and employment objective are assigned 
to these priorities. G/SCM/N/253/EU 
 
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  The principle of proportionality : newly introduced, this consists of modulating some obligations 
attributed to the Member States depending on th e total amount of expenditure on an operational 
programme. 
The principle of partnership  is widened, which is to say that any appropriate organisation 
representing civil society, environmental partners, non-governmental organisations and 
organisations responsible for promoting equality between men and women can participate in negotiations concerning the use of Structural Funds. It not only participates in management but is 
involved at every programming stage (s etting up, follow-up and evaluation). 
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% are planned to be spent 
in the "Convergence" regions. Based on simplified procedures, nearly all of the 436 programmes 
covering all EU regions and Member States were adopted before the end of 2007. 
In the period 2007-2013, cohesion policy will benefit from 35.7% of the total EU budget or Є 
347.41 billion (at current prices). 81.54% of this budget will be for the Convergence objective, 
15.95% for the Regional Competitiveness and Empl oyment and 2.52% for the European Territorial 
Cooperation. 
10. Financial allocations per year (euro, current prices) – please note that these data covers all 
3 Funds, not only ERDF 
Total 2007 – 44.924.212.787,00  
Total 2008 – 47.020.255.342,00 
Total 2009 – 48.168.079.007,00 
Total 2010 – 49.145.918.743,00 Total 2011 – 50.711.443.704,00 
Total 2012 – 52.478.932.653,00 
 
The allocation for Bulgaria (Member States which acceded on 1 January 2007) (included in the 
global data) is as follows: 
Total 2007 – 490.765.684,00 
Total 2008 – 713.179.062,00 Total 2009 – 966.963.353,00 
Total 2010 – 1.018.513.870,00 
Total 2011 - 1.089.783.826,00 Total 2012 - 1.161.455.080,00 
The allocation for Romania (Member States which acceded on 1 January 2007) (included in the 
global data) is as follows: 
Total 2007 – 1.275.078.763,00  
Total 2008 – 1.854.301.662,00  
Total 2009 – 2.513.352.998,00  Total 2010 – 3.027.219.265,00  Total 2011 – 3.263.730.029,00  
Total 2012 – 3.511.772.361,00  
11. Cohesion policy and state aid 
Cohesion Policy provides an integrated, strategi c, medium term planning and financial framework 
to address the reduction of regional disparities by promoting development. It does this through 
geographic and financial targeting (concentra tion), governance processes and evaluation 
mechanisms. Within the context of providing financ ial assistance to economic operators, cohesion 
policy financing must respect the state aid rules where relevant. G/SCM/N/253/EU 
 
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  In line with EU cohesion policy, the new State aid Guidelines re-focus regional aid on the most 
deprived regions of the enlarged Union, while al lowing for the need to improve competitiveness 
and to provide for a smooth transition. The use of the Structural Funds by national authorities is subject to EU state aid rules. 
12. Trade effects 
Because the Fund is designed to alleviate disparities between regions within the Union, and 
because the aid is paid out on a horizontal basis, within eligible regions, it is considered that the 
trade effects are minimal. 
  
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