G/SCM/N/284/EU  
 
7 August 2015  
(15-4066)  Page: 1/47  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
The following communication, dated 28 July 2015, is being circulated at the request of the 
Delegation of the European Union. 
 
_______________ 
 
 G/SCM/N/284/EU 
 
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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   EU FINANCING PROGRAMMES IN THE FIELD OF  ENERGY ............................................ 4  
3.1   Trans European Network - Energy (TEN-E ) Progra mme ................................................... 4  
3.2   European Energy Programme for Reco very (energy infrastr ucture proj ects) ....................... 5  
3.3   Guidelines for trans-European energy infrastructure (Regulation EU 347/2013) and 
amending guidelines for trans-European energy infrastructure as regards the Union list of 
projects of common interest (Regulation EU  1391/2013)  ........................................................ 6  
3.3.1   Connecting Europe Facility EU Financing Programme (in the field of energy) 
(Regulation EU  1316/2013 ) ................................................................................................ 7  
4   COMMON AGRICULTUR AL POLICY (CAP) ..................................................................... 8  
4.1   General Ob servations ................................................................................................. 8  
4.1.1   The CAP reform process ........................................................................................... 8  
4.1.2   Financing the CAP ................................................................................................... 9  
4.1.3   Information on the Internet ..................................................................................... 10 
4.2   European Agricultural  Guarantee F und (EAG F) .............................................................. 10 
4.3   Measures Financed Through The EAGF ("First Pillar " of the CAP) ...................................... 11 
4.3.1   Expo rt refunds ...................................................................................................... 11 
4.3.2   Interventions in agri cultural market s per se ctor.......................................................... 12 
4.3.3   Dire ct aids ........................................................................................................... . 23 
4.4   European Agricultural Fund  For Rural Develo pment (E AFRD) ........................................... 28 
4.5   Measures Financed By The European Agricultural Fund For Rural Development 
("Second Pillar" Of The CAP) .............................................................................................. 29 
4.5.1   Policy  framework ................................................................................................... 29 
4.5.2   Rural development measures................................................................................... 30 
4.6   IPARD ..................................................................................................................... 34 
4.7   Measures Fi nanced By  IPARD ..................................................................................... 34 
5   EUROPEAN FISHER IES FUND (EFF) ........................................................................... 35  
6   FRAMEWORK PROGRAMMES IN THE FIELD OF RESEARCH ......................................... 39  
6.1   Research on Coal and Steel ........................................................................................ 42 
7   THE EUROPEAN UNION' S STRUCTURAL ACTIONS ...................................................... 43  
7.1   European Region al Developm ent Fund ......................................................................... 43 
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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 2013  and 2014  
and to subsidy programmes which are currently in force, and provides statistical information at 
least up to the end of 2014 .  
 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. 
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  3  EU FINANCING PROGRAMMES IN THE FIELD OF ENERGY 
3.1   Trans European Network - Energy (TEN-E) Programme  The TEN-E framework, developed and shaped in the 1990's through the successive TEN-E 
Guidelines and the corresponding financing Regulation, aims at (1) supporting the completion of 
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 Implementing Decision C(2013)7569 of 11 November 2013 establishing the list of 
projects selected in the field of trans-European en ergy networks to be granted financial aid for the 
financial year 2013 and setting the maximum amount of that aid. 
 
2. Period covered by the notification 
2014 (the individual Decisions were notified to the Beneficiaries in 2014 in accordance with the 
Award Decision C(2013)7569). 
 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 2006 laying down guidelines for trans-European energy networks and repealing Deci sion 96/391/EC and Decision No 1229/2003/EC. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
Grant. 
 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
Others. 
 G/SCM/N/284/EU 
 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in 
the previous year). Where provision of per unit subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
Annual amounts in Work programmes: 
 2013: EUR 22.200.000 out of which EUR 10.000.000 were taken by the EIB for project bonds. The 
total amount of all decisions notified (16 in total) is 11.669.475 EUR. 
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement: 
2013 - 2022. 
 3.2  European Energy Programme for Recovery (energy infrastructure projects) 
The European Energy Programme for Recovery ('EEPR Regulation') proposed an important Union 
contribution of almost 4 billion € to co-finance sp ecific energy projects in the fields of gas and 
electricity interconnections (2.365 billion €), offshore wind energy (0.565 million €) and carbon 
capture and storage (1.05 billion €). 
 The origin of the EEPR Regulation is the global 200 billion € European Economic Recovery Plan, presented by the Commission in November 2008, as a response to the economic and financial 
crisis in Europe.  
 Furthermore, the "2nd Strategic Energy Review" adopted by the Commission in November 2008 
and endorsed by the 2009 Spring European Council constituted a key political document setting 
the priorities for the EU in the field of energy for the next years, in particular with regards to the 
strengthening of the energy networks.  
 
The Plan was endorsed by the European Council in December 2008 where the Commission was invited to present a list of concrete energy pr ojects. The EEPR Regulation established the EEPR 
programme and its financing instrument. It was adopted on 13 July 2009 and entered into force on 
1st August 2010. 
 1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 European Energy Programme for Recovery  
 
Sub-Programme: Gas and electricity infrastructure projects allocating financial assistance to 44 projects granted on the basis of Commission decisions.  
2. Period covered by the notification 
 
2010 (call for proposals). 
 
3. Policy objective and/or purpose of the subsidy 
 
The EEPR's main objective was to help securing an d speeding up investments in the energy sector, 
with a direct impact on the EU economy and em ployment; helping improve the security of supply 
of the most vulnerable Member States and link ener gy islands to the rest of the EU energy market. 
Finally, EEPR was intended to speed up the implementation of the 20/20/20 objectives for 2020, 
by supporting the deployment of innovative technolo gies in the field of coal and renewable energy, 
two major indigenous resources.  
Gas and electricity infrastructure is the main priority of the EEPR Regulation. It includes gas and 
electricity interconnections, Liquefied Natural Gas (LNG) terminals, gas storage facilities and gas reverse flow projects with the specific objective of helping to prevent potential disruptions to the 
gas supply in the future.  G/SCM/N/284/EU 
 
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  Moreover, the majority of the interconnection pr ojects selected in the EEPR Regulation were 
already forming part of the Trans-European Energy (TEN-E) networks and some received TEN-E funds to mainly co-finance feasibility studies. Hence, the EEPR programme constitutes the right instrument to contribute to the related expenditure of the implementation of the most mature 
TEN-E projects. 
 The Community promoted gas and electricity infrastructure projects having the highest Community 
added value and contributing to the following objectives:  
 (a) security and diversification of sources of energy, routes and supplies;  (b) the optimisation of the capacity of the ener gy network and the integration of the internal 
energy market, in particular concerning cross-border sections;  
(c) the development of the network to strengthen economic and social cohesion by reducing the 
isolation of the least favoured regions or islands of the Community;  
(d) the connection and integration of renewable energy resources; and  
(e) the safety, reliability and interoperability of  interconnected energy networks, including the 
ability to use multidirectional gas flows where necessary. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
Regulation (EC) No 663/2009 of the European Parliament and of the Council establishing a 
programme to aid economic recovery by granting Co mmunity financial assistance to projects in the 
field of energy. 
 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
Grants  
 6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined) 
 Others. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 The call for proposals, covering all three sectors,  was published on 19 May 2009. The granting of 
the EEPR funds was materialised through Individual Commission Decisions that have been notified 
to the beneficiaries concerned during the period March-May 2010.   
In 2013, EUR 126,931,210 were paid for EEPR infrastructure projects. 
 In 2014 EUR 105,405,090 were paid for EEPR infrastructure projects. 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement 
 
Duration of eligible action(s) selected to be co-financed. 
 3.3  Guidelines for trans-European energy infrastructure (Regulation EU 347/2013) and 
amending guidelines for trans-European ener gy infrastructure as regards the Union list 
of projects of common intere st (Regulation EU 1391/2013) 
This Regulation lays down guidelines for the timely development and interoperability of priority 
corridors and areas of trans-European energy infr astructure. It addresses the identification of 
projects of common interest necessary to implement priority corridors and areas falling under the energy infrastructure categories in electricity, ga s, oil, and carbon dioxide. facilitates the timely 
implementation of projects of common interest by streamlining, coordinating more closely, and G/SCM/N/284/EU 
 
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  accelerating permit granting processes and by enhancing public participation This Regulation 
establishes twelve Regional Groups ('Groups'). Projects of common interest included on the Union list pursuant to paragraph 4 of this Article are becoming an integral part of the relevant regional investment plans under Article 12 of Regulation s (EC) No 714/2009 and (EC) No 715/2009 and of 
the relevant national 10-year network development plans under Article 22 of 
Directives 2009/72/EC and 2009/73/EC and other na tional infrastructure plans concerned, as 
appropriate. Those projects will be conferred th e highest possible priority within each of those 
plans. 
 3.3.1  Connecting Europe Facility EU Fina ncing Programme (in the field of energy) 
(Regulation EU 1316/2013) 
Connecting Europe Facility represents the new funding instrument for the trans-European 
networks.  
The draft regulation establishing the CEF determ ines the conditions, methods and procedures for 
the Union's financial contribution to TEN projects identified in the respective sectorial guidelines and listed in the Annex of the CEF in the case of transport and energy. It w ill replace the existing 
legal bases for TEN funding.  
 1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 Connecting Europe Facility EU Financing Programme (in the field of energy) (Regulation EU 1316/2013). 
 
2. Period covered by the notification 
 
2014. 
 3. Policy objective and/or purpose of the subsidy 
 
The overall objective of the CEF is to help crea te high-performing and environmentally-sustainable 
interconnected networks across Europe, thereby contributing to economic growth and social and territorial cohesion within the Union. Such investments in infrastructure are also instrumental in 
allowing the EU to meet its sustainable growth objectives outlined in the Europe 2020 Strategy 
and the EU's "20-20-20" objectives in the area of energy policy and climate action. 
 
Under the CEF, €5.85 billion is available for trans-Eu ropean energy infrastructure projects such as 
gas pipelines, transmission grids, LNG term inals, gas storage, and smart grids. The 
European Commission has drawn up a list of 248 EU projects of common interest (PCIs) which may apply for CEF funding. This list is updated every two years. 
 
The CEF will complement Cohesion Policy transport priorities by targeting in particular the delivery of cross-border and projects in the rail or inland  waterways sectors, the most complex projects on 
the TEN-T in terms of implementation. The CEF ha s been designed to bring maximum support to 
these projects. €10 billion are available in the CE F only for the Cohesion Fund eligible Member 
States, applying the higher co-financing rates of the Cohesion fund. During the first three years of 
the CEF, the selection of projects eligible for financing shall respect the Member States national 
allocations under the Cohesion Fund. In the ener gy sector, the CEF is only one element of the 
toolset developed under the new TEN-E guidelines to support projects of common interest. Perhaps even more importantly than CEF money, the gu idelines help project promoters with binding 
deadlines for permit granting decisions (3.5 ye ars) and with regulatory solutions to address 
specific problems of energy projects of cross bo rder nature. Grants for works under the CEF will 
not be available to all projects of common intere st but only to those that are commercially not 
viable (i.e. do not have a guarantee of cost recovery under the tariff scheme approved) but have 
particularly high positive externalities (e.g. increasing Security of Supply, testing new technologies).  
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
REGULATION (EU) No 347/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on 
guidelines for trans-European energy infrastruc ture and repealing Decision No 1364/2006/EC and 
amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009.  
COMMISSION DELEGATED REGULATION (EU) No 1391/2013 amending Regulation (EU) 
No 347/2013 of the European Parliament and of the Council on guidelines for trans-European 
energy infrastructure as regards the Union list of projects of common interest.  
REGULATION (EU) No 1316/2013 OF THE EU ROPEAN PARLIAMENT AND OF THE COUNCIL 
establishing the Connecting Europe Facility, amen ding Regulation (EU) No 913/2010 and repealing 
Regulations (EC) No 680/2007 and (EC) No 67/2010. 
 
5.  Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
Grants. 
 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 multiannual Work programmes (2014-2020): 
 
2014 – EUR 647,000,000  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement 
 2014 – 2020.   
 4  COMMON AGRICULTURAL POLICY (CAP) 
4.1  General Observations 
4.1.1  The CAP reform process  
During the period under review of this notificati on the implementation of the 2008 Health Check 
reform was completed. Further, in 2014 the implementation of the 2013 Reform started for market 
intervention measures and Rural Development, wh ereas the new Direct Payments system will be 
implemented starting with the 2015 budget year.    
The Health Check as well as the 2013 reform is a continuation of the reform process of the CAP, 
following the direction of previous reforms of th e last 20 years. With these reforms a fundamental 
policy shift has taken place from price support me chanisms to income support conditioned on the 
respect of certain criteria, with a  shift in policy away from trade distorting amber box support to 
non trade distorting green box support. Direct pa yments now cover nearly 90% of the EU budget 
outlay for "first pillar" support (i.e. market measures and Direct Payments together).   
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 G/SCM/N/284/EU 
 
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  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 has been further modernised and simplified. Moreover, Rural Development policy has been further strengthened to allow farmers to face new challenges, such as climate change, 
renewable energies, water management and biodiversity. 
 The main CAP Regulations in force at 1/1/2013: 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) No 73/2009  (repealing and replacing the 
previous Direct Aids Regulation (EC) No1782/2003) and Council Regulation (EC) 
No 1698/2005  of 20 September 2005 on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) as amended in particular by Council Regulation (EC) No 74/2009.  
 
The Regulations for the Common Market Organisation and Rural Development have as of 1/1/2014 been replaced by Regulation (EU) No 1308/2013  of the European Parliament and the Council 
of 17 December 2013 establishing a common organisation of the markets in agricultural products  
and Regulation (EU) 1305/2013  of the European parliament and the Council of 
17 December 2013 on support for rural development . Further, financing of CAP expenditure is 
governed by Regulation (EU) No 1306/2013 of the European Parliament and the Council of 
17 December 2013 on the financing, management and monitoring of the common agricultural policy.   
4.1.2  Financing the CAP 
The expenditure for agriculture included in this notification relates to payments made by the 
European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural 
Development (EAFRD) during the years 2013 and 2014. 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 4.3 (4.3 .1 Export subsidies, 4.3.2 Interventions in 
agricultural markets and 4.3.3 Direct aids). Suppo rt covered by the EAFRD (second pillar of the 
CAP) is treated in the same manner in sections 4.4 and 4.5of this notification. Sections 4.6 and 4.7 cover support for pre-accession measures in the field of Rural Development in so far as the payments occurred in the Member States of EU28. 
 
As from 2014 a crisis reserve was introduced to ensure additional support for the agricultural sector in the case of a major crisis. This will be financed annually within the financial discipline 
mechanism. To ensure that the annual ceilings fo r the financing of market related expenditures 
and direct payments are respected an adjustment rate for direct payments will be fixed annually. In the case that the total amount of the crisis re serve has not been spent by the end of the budget 
year in question, it shall be paid to the direct payments recipients in the following budget year.  
General Summary of expendit ure for Agriculture and Rural Development, million EUR 
 2012  2013  2014 
European Agricultural 
Guarantee Fund (EAGF) 44,395.07  44,851.46  44,137.85 
Export subsidies 146.67 62.38 4.48 
Other intervention in markets 3,368.37 3,130.80 2,473.69 
Direct aids 40,880.03 41,658.28 41,659.68 
Of which non-trade distorting 
direct aids 37,666.10 38,842.28 38,952.09 G/SCM/N/284/EU 
 
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   2012  2013  2014 
European Agricultural Fund 
for Rural Development 
(EAFRD) 13,251.33  13,145.26  11,177.59 
Rural Development 2014-
2020 0 0 224.99 
Rural development 2007-2013 13,116.59  12,949.99 10,947.35 
Rural development completion 
of previous periods 134.74  195.27 5.25 
Pre-accession (Ipard) 6.51  47.64  158.73 
 
4.1.3  Information on the Internet 
General information on the Common Agricultural Policy can be found at: 
 
http://ec.europa.eu/agriculture/index_en.htm (English) 
http://ec.europa.eu/agriculture/index_fr.htm (French) http://ec.europa.eu/agriculture/index_es.htm (Spanish) 
 
The legislation referred to in this notification is publicly available at the following websites:   
http://eur-lex.europa.eu/homepage.html?locale=en  (English) 
http://eur-lex.europa.eu/homepage.html?locale=fr  (French) 
http://eur-lex.europa.eu/homepage.html?locale=es  (Spanish) 
 
The EU budget can be consulted at: 
 http://eur-lex.europa.eu/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"). 
 
2. Period covered by the notification 
 
1 January 2013 - 31 December 2014. 
 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.   
 G/SCM/N/284/EU 
 
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  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 F und - financial year (million EUR)  
 2012  2013  2014 
Intervention in markets 3,368.4 3,130.8 2,473.7 
Export subsidies 146.7 62.4 4.5 
Direct aids 40,880.0 41,658.3 41,659.7 
Total EAGF 44,395.1  44,851.5  44,137.9 
Of which non-trade distorting 
direct aids 37,666.1 38,842.3 38,952.1 
 
8. Duration of the programme 
 
The old financial perspective ran from 2007 until 2013. The new financial perspectives cover the 
period from 2014 to 2020.  9. Trade effects 
 In 2014, 88% of the support provided had no or at most minimally trade distorting effects (an increase of 3 percentage points compared to 2012. 
 
4.3  Measures Financed Through The EAGF ("First Pillar" of the CAP) 
4.3.1  Export refunds 
For some of the sectors governed by the 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 destination or time (months of delivery). In the reformed 
Common Agricultural Policy, from 1 January 2014, export refunds may only apply as exceptional 
measures in the case of market disturbances or threats thereof.
1 Due to market developments, 
export refunds have no longer been granted in practice since July 2013. If the Commission decides 
on the application of an export refund, it fixes the amount of the refund periodically. The periodicity of the fixing is different for each sect or 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 would be paid to the exporter. The total amounts of export refunds financed by the EAGF in 2012, 2013 and 2014 are 
as follows: 
Export subsidies (EAGF payments) EUR million 
Products 2012  2013  2014 
Cereals 0.2 0.0 2.5 
Sugar  0.0 0.0 0.3 
Rice 0.0 0.0 0.0 
Olive oil 0.0 0.0 0.0 
Fruit and vegetables 0.1 1.2 0.0 
Wine 0.1 0.0 0.0 
Dairy products 0.2 0.1 0.0 
Bovine meat 37.2 6.5 0.4 
                                               
1 Article 196 of Regulation (EU) No 1308/2013, OJ L347, 20.12.2013, p. 671. G/SCM/N/284/EU 
 
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  Products 2012  2013  2014 
Pigmeat 18.6 3.5 0.2 
Eggs and poultry 81.1 46.2 0.9 
Refunds on non-Annex I 9.1 4.9 0.1 
Total expenditure 146.7  62.4*  4.5* 
 
*) The last export licence was granted in July 2013. All payments made after this date for export subsidies 
relates to licences issued before this date, but where the administrative procedures for making the payments had not been finalised.  
 
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 sectio n 4.3.2 deals with spending for the Interventions 
in agricultural markets per sector; section 4.3.3 will address Direct Payments in a similar way. Most of the support schemes represented in the sect ion 4.3.2 of this notification have their legal 
basis in Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 
17 December 2013 establishing a common organi sation of the markets in agricultural 
products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) 
No 1037/2001 and (EC) No 1234/2007 as well as Council Regulation (EU) 
No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products. 
Previously the legal base was Council Regulation (EC) No 1234/2007  of 22 October 2007 
establishing a common organisation of the markets in agricultural markets and on specific 
provisions for certain agricultural products (Single CMO Regulation), as amended in particular by the "Health Check" Council Regulation (EC) No 72/2009.  
Support to agricultural markets (EAGF budget – payments) EUR million 
Products 2012  2013  2014 
Cereals 41.7 0.1 0.0 
Rice 0.0 0.0 0.0 
Food programs 515.1 491.5 -7.2 
Sugar -0.2 0.2 0.2 
Sugar restructuring (*) 109.7 0.0 0.0 
Olive oil 55.3 60.9 43.0 
Textile plants 25.2 17.1 6.3 
Fruits and vegetables 1,071.1 1,136.9 1,010.5 
Wine 1,072.0 1,044.2 1,022.4 
Promotion 48.0 51.4 54.2 
Other plant products 328.9 227.6 240.8 
Dairy products 66.8 70.3 71.8 
Beef and veal 0.1 0.0 0.0 
Sheep and goat 0.0 0.0 0.0 
Pigmeat 5.8 0.0 0.0 
Eggs and poultry 0.0 1.1 0.0 
Other measures & animal products 28.9 29.8 31.8 
Total expenditure 3,368.4  3,130.8  2,473.7 
 
(*) Sugar restructuring aids and othe r aids are not funded by the EAGF budget, but by the temporary 
restructuring amounts in th e sugar sector, as set out in article 11 of Council Regulation 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.  
 G/SCM/N/284/EU 
 
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  4.3.2.1  Cereals 
Public intervention 
 
Public intervention is available for ce reals from 1 November to 31 May.  
 
During this period it is open for common wheat for a maximum quantity offered of 3 million tonnes per intervention period (and by automatic tendering procedure above 3 million tonnes).  
 
Buying into public intervention for durum wheat, barley and maize, shall be carried out by means 
of implementing acts, if the market situation so re quires. For these cereals buying-in prices will be 
determined by means of tendering procedures. The buying-in price shall not be higher than the 
reference price. 
 The intervention price for cereals is equal to the reference price - EUR 101.31/tonne for the 
defined standard quality (related to the wholesale stage for goods delivered to the warehouse, 
before unloading).  
Cereals will only be accepted in public intervention if they comply with certain minimum quality 
specifications.  4.3.2.2  Rice 
Public intervention 
 
Public intervention is available for paddy rice from 1 April to 31 July. During this period, public 
intervention may be opened by the Commission for paddy rice, by means of implementing acts, if 
the market situation so requires. Rice will only be accepted in intervention if it complies with certain eligibility criteria. 
 
The reference threshold for paddy rice is EUR 150/tonne for the defined standard quality (related to the wholesale stage for goods delivered to the warehouse, before unloading)  
If the rice offered to intervention differs from  the standard quality, the price is adjusted 
accordingly.  
4.3.2.3  Sugar 
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 
fixed as follows:  
(Tonnes, Regulation (EU) No 1308/2013) 
Member State region Sugar  Isoglucose  Inulin syrup  
Belgium  676,235.0 114,580.2 0  
Bulgaria  0 89,198.0  
Czech Republic  372,459.3   
Denmark  372,383.0   
Germany  2,898,255.7 56,638.2  
Ireland  0   
Greece  158,702.0 0  
Spain  498,480.2 53,810.2  G/SCM/N/284/EU 
 
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  Member State region Sugar  Isoglucose  Inulin syrup  
France (metropolitan)  3,004,811.15   0  
French overseas 432,220.05   
Croatia 192,877.0   
Italy  508,379.0 32,492.5  
Latvia  0   
Lithuania  90,252.0   
Hungary  105,420.0 250,265,8.0  
Netherlands  804,888.0 0 0  
Austria  351,027.4   
Poland  1,405,608.1 42,861.4  
Portugal (mainland)  0 12,500.0  
Autonomous region of 
the Azores  9,953.0   
Romania  104,688.8 0  
Slovenia  0   
Slovakia  112,319.5 68,094.5  
Finland  80,999,0 0  
Sweden  293,186.0   
United Kingdom  1,056,474.0 0  
TOTAL  13,529,618.2  720,440.8  0 
 
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) No 1234/2007 which was 
allocated to the undertaking for the marketing year 2010/2011.  
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;  
 exported within the quantitative limit fixed by the Commission respecting the commitments 
resulting from international agreements; or 
 released onto the internal market in the frame of the temporary market management 
mechanism. 
 
Other quantities are subject to a surplus levy. The surplus levy is fixed by the Commission at a sufficiently high level in order to avoid the accumulation of quantities. The surplus levy referred is 
charged by the Member State to the undertakings on  its territory according to the quantities of 
production established for those undertakings for the marketing year concerned.   Temporary market management mechanism 
 In order to ensure a sufficient supply, the Commission can, for the quantity and time necessary, adjust the level of the duty payable on imported raw sugar and fix the quantities of out-of-quota 
sugar that can be released onto the market and the applicable surplus levy. 
 4.3.2.4  Olive oil 
The European Commission pursues the implementation of 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.  G/SCM/N/284/EU 
 
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  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. Council Regulation (EC) No 637/2008 provides that 
each cotton producer Member State shall, either every four years and for the first time by 
1 January 2009, submit to the Commission a draft four-year restructuring programme or submit to the Commission, by 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 Council Regulation (EC) No 1698/2005 (Rural Development). 
 
As from 1 January 2014, the annual budget for the Greek restructuring programme has been transferred to Rural Development funds in appl ication of Article 66(1) of Regulation (EU) 
No 1307/2013. 
 4.3.2.6  Fruit and vegetables 
The objectives of the fruit and vegetables sch eme remain to improve the competitiveness and 
market orientation of the fruit and vegetable sector, reduce producers' income fluctuations resulting from crises, promote consumption – so contributing to improved public health – and enhance environmental safeguards. The support measures include:  
 
(a) planning of production, including production and consumption forecasting and follow-up; (b) improvement of product quality, whether in a fresh or processed form; 
(c) boosting products' commercial value; 
(d) promotion of the products, whether in a fresh or processed form; (e) environmental measures, particularly those relating to water, and methods of production 
respecting the environment, including organic farming; 
(f) crisis prevention and management.   EU Funding is available for producer organizations recognized by the Member States through 
approved 3-5 year operational programmes in line  with the scheme's objectives. Higher support 
(60% EU co-financing instead of 50%) is foreseen in some cases, such as for mergers of producer organisations. Additional national financial assi stance is allowed and partially reimbursed by G/SCM/N/284/EU 
 
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  EU funds in areas where marketed production by producer organisations is less than 15%. EU aid 
to producer organisations remains limited to 4.1% of the value of marketed produce, but this may 
rise to 4.6% (4,7% in case of associations of producer organisations) provided that the amount in excess of 4,1% is used only for crisis prevention and management. 
 
Crisis prevention and management 
 
Producer organisations' Operational Programmes may include crisis prevention and management 
measures. Those can consist of investments making the management of the volumes placed on the market more efficient, training and ex changes of best practices, promotion and 
communication, whether for prevention or during a crisis period, support for the administrative 
costs of setting up mutual funds, replanting of  orchards for health or phytosanitary reasons, 
market withdrawal, green harvesting/non-harvesting and harvest insurance.   
Exceptional measures  
 
The Commission adopted four subsequent Regulations to address the consequences of the Russian 
ban on imports from the EU, laying down temporary exceptional support measures open to all 
producers of certain fruit and vegetables throug h market withdrawals for free distribution and 
other destinations, as well as non-harvesting and green harvesting.   
Environmental measures 
 
Producer organisations are required to devote at  least 10% of expenditure in each operational 
programme to environmental actions or to include at least two environmental actions in their 
operational programme.   
Encouraging greater consumption 
 
Producer organisations can include promotion of fruit and vegetable consumption in their operational programmes. 
 
Moreover, an EU School Fruit and Vegetables Scheme (SFVS) has been operational as from school year 2009-2010. It aims to encourage the consumpt ion of fruit and vegetables products which in 
turn contribute to shaping healthy eating habits in young people. This has positive implications for 
agriculture and can contribute to larger efforts to fight against obesity and overweight. Since 2014, the SFVS makes available €150 million of EU funds per year to provide fruit and 
vegetables to school children and this money is ma tched by national and private funds in the scale 
of 25% or 10% for less developed regions (co-financing). Around 10 million children from 25 Member States out of 28 benefited from the Scheme in the last school year (2013/14).  
4.3.2.7  Wine 
National financial envelopes 
 
The 2008 wine reform introduced national financia l envelopes (proportional to the production level 
in each Member State) to set up national support programmes in order to assist the wine sector to achieve the two main reform objectives. Member States are responsible for the support 
programmes drawn up at the geographical level deemed the most appropriate by selecting among 
a predefined menu of measures and ensure that they are consistent both within the programme 
and with other sources of financing (e.g. Rural Development). The first programming period (2008-2013) was concluded with the phasin g out of previous intervention measures which 
gave progressively way to structural measures such as restructuring of vineyards, investments in 
transforming and marketing facilities and promotion of EU wine in third countries, which accounted for 2/3 of the global expenditure. For the current programming period (2014-2018) innovation was 
introduced as a new measure and it is to be foreseen that most of the budget will be executed 
under those 4 measures. Support programmes shall contain one or more of the following measures: 
 G/SCM/N/284/EU 
 
- 17 - 
 
   Single Payment Scheme: 
 
At the beginning of each programming period, Memb er States have had the possibility to provide 
support to vine-growers by allocating to them payment entitlements under the SPS and 
transferring funds from their national support programme in the wine sector to the Single Payment 
Scheme.   
See Section 4.3.3.1 of this notification. 
 
 Promotion on third-country markets: 
 
This support covers information or promotion measures concerning EU wines in third countries, 
thereby improving their competitiveness in those countries. The support relates to wines with a protected designation of origin or geographical indi cation 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. 
 
 Information in the Member States: 
 
Since the 2013 reform, Member States may choose to finance also projects with a view to informing consumers about the responsible consumption of wine and about the Union systems covering designations of origin and geographical indications. These information activities may be 
carried out through information campaigns and through participation in events, fairs and 
exhibitions of national or Union importance.  
 Restructuring and conversion of vineyards: 
 
The objective of measures relating to the restruct uring and conversion of vineyards is to increase 
the competitiveness of wine producers. Restructur ing and conversion of vineyards is supported if 
Member States submit the inventory of their production potential. Support for restructuring and conversion of vineyards may only cover one or more of the following activities:  
o varietal conversion, including by means of grafting-on; 
o relocation of vineyards; 
o replanting of vineyards where that is necessary following mandatory grubbing-up for 
health or phytosanitary reasons on the instructions of the Member State (since 
the 2013 reform); 
o improvements to vineyard management techniques, in particular the introduction of 
advanced systems of sustainable production. 
 The normal renewal of vineyards which have come to the end of their natural life is not supported. 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%. 
 G/SCM/N/284/EU 
 
- 18 - 
 
   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 by controlling excessive production in order to prevent market crises. It may be granted as 
compensation in the form of a flat rate paymen t per hectare to be determined by the Member 
State concerned. The payment does not exceed 50% of the sum of the direct costs of the 
destruction or removal of grape bunches and the loss of revenue related to the destruction or 
removal of grape bunches.  
 Mutual funds: 
 
Support for the setting-up of mutual funds provid es assistance to producers seeking to insure 
themselves against market fluctuations. This support is granted in the form of temporary and 
digressive aid to cover the administrative  costs of the setting up of the funds. 
 
 Harvest insurance: 
 
Support for harvest insurance contributes to safeguarding producers' incomes where these are affected by natural disasters, adverse climatic events, diseases or pest infestations. Support for 
harvest insurance may be granted in the form of a financial EU contribution which must not 
exceed:   
a. 80% of the cost of the insurance premiums paid for by producers for insurance 
against losses as a result of adverse climatic events which can be assimilated to natural disasters; 
b. 50% of the cost of the insurance premiums paid for by producers for insurance 
against: 
i. losses referred to in (a) and against other losses caused by adverse climatic events; 
ii. losses caused by animals, plant diseases or pest infestations. 
Support for harvest insurance may only be granted if the insurance payments concerned do not 
compensate producers for more than 100% of the income loss suffered, taking into account any compensation the producers may have obtained fr om other support schemes related to the insured 
risk. Support for harvest insurance must not distort competition in the insurance market. 
 
 Investments: 
 
Support may be granted for tangible or intangible investments in processing facilities and winery infrastructure as well as marketing structures and tools intended to improve the overall performance of the enterprise and its adaptation to market demands, as well as to increase its 
competitiveness and shall concern the production or marketing of wine. 
 Support under paragraph at its maximum rate is limited to micro, small and medium-sized 
enterprises. 
 
 Innovation (since the 2013 reform this is a self-standing measure): 
 
Support may be granted for tangible of intangible investments aimed at the development of new products, processes and technologies concerning determined grapevine products.  
The support shall be intended to increase the marketability and competitiveness of these products 
and may include an element of knowledge transfer.  
The maximum aid rate is the same as for the Investments measure. 
 G/SCM/N/284/EU 
 
- 19 - 
 
   By-product distillation: 
 
Support may be granted for the voluntary or obligatory distillation of by-products of wine-making. The amount of aid is fixed per % volume and per hectolitre of alcohol produced. No aid is paid for 
the volume of alcohol contained in the by-products to be distilled which exceeds 10% in relation to 
the volume of alcohol 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 
The legal basis is Council Regulation (EC) No 3/2008  of 17 December 2007 on information 
provision and promotion measures for agricultural products on the internal market and in 
third countries. From 1 December 2015, the legal base will be Regulation (EU) No 1144/2014  
of the European Parliament and of the Council of 22 October 2014 on information provision and 
promotion measures concerning agricultural products implemented in the internal market and in 
third countries and repealing Council Regulation (EC) No 3/2008.  
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".  
 The EU co-finances these measures with an annual budget of approximately € 60 million (with 
execution at around 50 mio €) 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 remainder being 
paid by the professional/inter-branch organisation s that proposed them and by the Member States 
concerned. Interested professional organisation s must send their proposals to the competent 
Authorities of the Member States following the publication of a call for proposals. These then 
submit to the Commission the list of programmes they have selected for final decision.  
 4.3.2.9  Other plant products 
Hops 
 
From 1 January 2011, the hops Producer Organisations in Germany receive annually a specific aid of EUR 2 277 000. This aid has replaced the former hops area aid that Member States could retain 
up to 25% of the component of national ceilings coupled.  
 POSEI – excluding direct aids 
 The legal basis for this expenditure is Regulation (EU) 228/2013  of the European Parliament 
and the Council of 13 March 2013 laying down specific measures for agriculture in the outermost 
regions of the Union and repealing Council Regulati on (EC) No 247/2006. Objective factors arising 
as a result of insularity and remoteness of certain regions of the EU impose constraints on economic operators and producers in these outermost regions that severely handicap their activities. Therefore appropriate specific supply me asures to guarantee supply and to compensate 
for the additional costs arising from their remoteness, insularity and distant location are applied. 
 4.3.2.10  Milk and dairy product 
Public intervention 
 
Public intervention is available for butter produced directly and exclusively from pasteurised 
cream obtained directly and exclusively from cow's milk  in an approved undertaking in the Union 
of a minimum butterfat content, by weight, of 82% and a maximum water content, by weight, of G/SCM/N/284/EU 
 
- 20 - 
 
  16% and for skimmed milk powder of top quality made from cow's milk in an approved 
undertaking in the Union by the spray process,  with a minimum protei n-content of 34.0% by 
weight of the fat free dry matter. The reference thresholds are EUR 246.39 per 100 kg for butter and EUR 169.80 per 100 kg for skimmed milk powder.  
 
For butter and skimmed milk powder, public inte rvention is open during the period 1 March 
to 30 September. Where the quantities offered for intervention during this period exceed 
50 000 tonnes of butter or 109 000 tonnes of and skimmed milk powder respectively, the 
Commission shall suspend buying-in by public in tervention at fixed prices for the product 
concerned. In that case buying-in shall be carried out on the basis of a tendering procedure according to specifications to be determined by the Commission. 
 
Without prejudice to the fixing of the interven tion price by means of tendering, the public 
intervention price for butter is 90% of the refere nce threshold and for skimmed milk powder it is 
equal to the  reference threshold. 
 Private storage 
 Aid for private storage may be granted to respond to  a particularly difficult market situation for the 
following products:  
o butter produced from cream obtained directly and exclusively from cow's milk;  
o skimmed milk powder made from cow's milk; 
o cheese benefiting from a protected designation of origin or from a protected geographical 
indication and with a certain maturing period. 
 
Exceptional support measures 
 The Commission may adopt exceptional measures against market disturbance caused by significant price rises or falls on internal or ex ternal markets or other events and market support 
measures related to animal diseases and loss of consumer confidence due to public, animal or 
plant health risks. 
 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 
(2013/2014) 
Belgium 3 602 114,910 
Bulgaria 1 049 517,616 
Czech Republic 2 935 144,857 
Denmark 4 847 909,473 
Germany 30 318 928,750 
Estonia 692 926,049 
Ireland 5 784 422,236 
Greece 879 614,757 
Spain 6 557 555,445 
France 26 371 231,277 
Croatia 765 000 G/SCM/N/284/EU 
 
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  Member State Quota size in tonnes 
(2013/2014) 
Italy 11 288 542,866 
Cyprus 155 658,792 
Latvia 781 132,698 
Lithuania 1 827 638,981 
Luxembourg 292 754,310 
Hungary 2 133 404,521 
Malta 52 205,729 
Netherlands 12 050 492,655 
Austria 2 992 728,488 
Poland 10 055 797,056 
Portugal 2 088 904,546 
Romania 3 277 196,478 
Slovenia 618 173,380 
Slovakia 1 115 756,221 
Finland 2 619 044,220 
Sweden 3 594 029,658 
United Kingdom 15 896 704,566 
 
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.  
The quota system ended with effect from 1 April 2015. 
 
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 milk and 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. 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 componen ts 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 
Public intervention 
 
As regards the beef and veal sector, the reference threshold is fixed at EUR 2,224/tonne for carcasses of male bovine animals of grade R3 as laid down in the EU scale for the classification of 
carcasses of bovine animals aged eight months or more. The Commission may open public 
intervention for beef and veal if, over a representative period, the average market price in a Member State or in a region of a Member State recorded on the basis of the Community scale for 
the classification of carcasses is below 85% of the reference threshold. The Commission may close 
public intervention if, over a representative period, this condition is no longer fulfilled. The intervention prices for beef and veal and the quan tities accepted for intervention are determined 
by the Commission by means of tendering procedures. In special circumstances, tendering G/SCM/N/284/EU 
 
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  procedures may be restricted to, or the intervention prices and the quantities for intervention may 
be fixed per Member State or region of a Member  State on the basis of recorded average market 
prices. The maximum buying-in price determined in accordance with tendering procedures shall not exceed 85% of the reference threshold. 
 
Private storage 
 
Aid for private storage may be granted to respond to  a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs.  Exceptional market support measures 
 The Commission may adopt exceptional measures against market disturbance caused by significant price rises or falls on internal or ex ternal markets or other events and market support 
measures related to animal diseases and loss of consumer confidence due to public, animal or 
plant health risks.  
4.3.2.12  Sheepmeat and goatmeat 
Private storage 
 
Aid for private storage may be granted to respond to  a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs. 
 Exceptional market support measures 
 The Commission may adopt exceptional measures against market disturbance caused by significant price rises or falls on internal or ex ternal markets or other events and market support 
measures related to animal diseases and loss of consumer confidence due to public, animal or 
plant health risks  4.3.2.13  Pigmeat 
Private storage 
 
Aid for private storage may be granted to respond to  a particularly difficult market situation and/or 
taking into account the average recorded EU market prices and the production costs. 
 Exceptional market support measures 
 The Commission may adopt exceptional support measures against market disturbance caused by significant price rises or falls on internal or ex ternal markets or other events and market support 
measures related to animal diseases and loss of consumer confidence due to public, animal or 
plant health risks. 
 4.3.2.14  Eggs and poultrymeat 
Exceptional market support measures 
 
The Commission may adopt exceptional support against market disturbance caused by significant 
price rises or falls on internal or external markets or other events and market support measures 
related to animal diseases and loss of consumer confidence due to public, animal or plant health risks.  
4.3.2.15  Bee-keeping 
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 G/SCM/N/284/EU 
 
- 23 - 
 
  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) No 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. 
 The rules of Council Regulation (EC) No 1234/2007 continue to apply to the on-going apiculture 
programmes for the period 2014-2016. 
 New rules in Regulation (EU) No 1308/2013 will apply for the next apiculture programmes for the period 2017-2019. 
 
4.3.3  Direct aids 
The support schemes represented in this section 4.3. 3 of this notification find their legal basis in 
Council Regulation (EC) No 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, as well as Council Regulation No 1782/2003 of 29 September 2003 
and Council Regulation (EC) No 1234/2007 of 22 October 2007. For the year 2014 
Regulation (EU) 1310/2013  of the European Parliament and the Council of 17 December 2013 
laying down certain transitional provisions on support will also apply for direct payments.  
 
The level of direct aids for the period cove red by this notification is as follows: 
 
Direct Aids (EAGF financial year – executio n of payment appropriations), EUR million 
 2012 2013 2014  
Coupled Decoupled Coupled De coupled Coupled Decoupled 
SPS (Single Payment Scheme) 
(1) - 31,373.7 - 31,697.8 - 31128.2  
SAPS (Single Area Payment 
Scheme) - 5,915.7 - 6,681.2 - 7,366.4  
Specific support 785.5- 376.8 - 1.046,5 463.2 1,062.4 457.4  
Arable crops 46.2 - 4.9 -  - 
Sugar 23.0 - 20.9 - 18.5 - 
Rice 152.8 - 0.3 -  - 
Olive oil 1.3 - 0.3 -  - 
Cotton 245.8 - 242.3 - 231.8 - 
Silkworms 0.4 - 0.4 - 0.4 - 
Fruit and vegetables 254.3 - 36. -  - 
Tobacco 0.1 - 0.0 -  - 
Seeds 22.4 - 0.2 -  - 
Hops 0 - 0.0 -  - G/SCM/N/284/EU 
 
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   2012 2013 2014  
Coupled Decoupled Coupled De coupled Coupled Decoupled 
Bovine meat 1,114.3 - 970.6 - 946.4 - 
Sheepmeat and goatmeat 29.2 - 28 - 28.7 - 
POSEI 429.0 - 474.1 - 426.0 - 
Specific types of farming & 
quality production 113.9 -  1.3 - 0.1   
Other products / measures (2) -4.2 - -9.7 - -6.7 - 
Total  3,213.9  37,666.1  2,816.0  38,842.3  2,707.6 38,952.1  
Total direct aids 40,880.0 41,658.3 41,659.7 
 
(1) Additional amounts of aid, Separate Sugar Pa yment, Separate Fruit and Vegetables payment and 
Separate Soft Fruit payment (2013 and 2014) 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) 
No 73/2009, the payments included in the SPS fr om 2010 are the arable crops area payments, the 
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 Council Regulation (EC) No 73/2009 as amended by Commission 
Delegated Regulation (EU) No 994/2014). 
 
1000 EUR, the amounts include but are not limited to SPS envelopes 
Member State 2009 2010 2011 2012 2013 2014* 
Belgium  614,179 611,817 611,817 614,855 614,855 544,047  
Denmark  1,030,478 1,031,321 1,031,321 1,049,002 1,049,002 926,075  
Germany  5,770,254 5,771,981 5,771,994 5,852,938 5,852,938 5,178,178  
Greece  2,380,713 2,228,588 2,231,798 2,233,227 2,233,227 2,047,187  
Spain  4,858,043 5,119,045 5,125,032 5,304,642 5,304,642 4,833,647  
France  8,407,555 8,423,196 8,425,326 8,527,494 8,527,494 7,358,751  
Ireland  1,342,268 1,340,521 1,340,521 1,340,869 1,340,869 1,216,547  G/SCM/N/284/EU 
 
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  Member State 2009 2010 2011 2012 2013 2014* 
Italy 4,143,175 4,210,875 4,234,364 4,379,985 4,379,985 3,953,394  
Luxembourg  37,518 37,569 37,679 37,671 37,672 33,662  
Netherlands  853,090 853,169 853,169 897,751 897,751 793,319  
Austria  745,561 747,344 747,425 751,788 751,788 693,716  
Portugal  608,751 589,811 589,991 606,551 606,551 557,667  
Finland  566,801 565,520 565,823 570,548 570,548 523,247  
Sweden  763,082 765,229 765,229 770,906 770,906 696,487  
United Kingdom  3,985,895 3,976,425 3,976,482 3,988,042 3,988,042 3,166,774  
 
* Ceilings for 2014 are after transfers between EAFG and EAFRD. The reserve for crisis in the agricultural 
sector has to be established by applying a reductio n to direct payments with the financial discipline 
(see 4.1.2.). 
 
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'). 
 
National ceilings for the new Member States  (Annex VIII of Council Regulation (EC) 
No 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 2014** 
Bulgaria 287,399 336,041 416,372 499,327 580,087 642,103 
Czech Republic 559,622 654,241 739,941 832,144 909,313 875,305 
Estonia 60,500 71,603 81,703 92,042 101,165 110,018 
Croatia*     94,923 164,005 
Cyprus 31,670 38,928 43,749 49,146 53,499 51,344 
Latvia 90,016 105,368 119,268 133,978 146,479 156,279 
Lithuania 230,560 271,029 307,729 346,958 380,109 393,226 
Hungary 807,366 947,114 1,073,824 1,205,037 1,318,975 1,272,786 
Malta* 3,752 4,231 4,726 5,137 5,504 5,240 
Poland 1,877,107 2,192,294 2,477,294 2,788,247 3,044,518 3,361,883 G/SCM/N/284/EU 
 
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  Member State 2009 2010 2011 2012 2013 2014** 
Romania 623,399 729,863 907,473 1,086,608 1,264,472 1,428,531 
Slovenia* 87,942 103,394 117,423 131,575 144,274 138,980 
Slovakia 240,014 280,364 316,964 355,242 388,176 435,115 
 
* Croatia, Malta and Slovenia apply SPS. 
** Ceilings for 2014 are after transfers between EAFG and EAFRD. The reserve for crisis in the agricultural 
sector has to be established by applying a reductio n to direct payments with the financial discipline 
(see 4.1.2.). 
 
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 Council Regulation (EC) No 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 he ifers 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.  
 4.3.3.5  Additional suckler cow premium 
Member States may grant an additional nation al 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. G/SCM/N/284/EU 
 
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  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 Member States which have granted the restructuring aid 
provided for in Article 3 of Council 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 re ached but no later than for the marketing year 
2013/2014. The aid is granted in respect of the qu antity of quota sugar obtained from sugar beet 
or cane delivered under contracts concluded in accordance with Article 50 of Council Regulation (EC) No 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 Council Regulation (EC) No 73/2009 for the Member State concerned for the corresponding year by the total of the sugar and inulin syrup quota fixed on 
20 February 2006 in Annex III to Council Regulation (EC) No 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, fi xed yields and reference amounts.  
 Base area Fixed yield Aid per ha (€/t) 
until CY2013* Aid per ha (€/t) 
CY2014* 
Bulgaria 3,342 ha 1.2 tonne/ha EUR 671.33 EUR 520.2 
Greece 250,000 ha 3.2 tonne/ha EUR 251.75 EUR 234.18 
Spain 48,000 ha 3.5 tonne/ha EUR 400.00 EUR 362.15 
Portugal 360 ha 2.2 tonne/ha EUR 252.73 EUR 228.00 
 
* Farmers who are members of an approved inter-bran ch organisation are granted an aid per eligible 
hectare increasing the amount of aid per hect are 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 Council Regulation (EC) No 73/2009.  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) No 73/2009 corresponding to fruit and vegetables.  
 4.3.3.12  Separate soft fruit payment 
Article 129 of Council Regulation (EC) No 73/2009 provides that new Member States applying 
SAPS may decide to grant from 2012 a separate so ft 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 G/SCM/N/284/EU 
 
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  may grant national aid, but the total amount of the EU aid and national aid shall not exceed the 
ceilings set in Article 129 of Council Regulation (EC) No 73/2009.  4.3.3.13  Redistributive payment 
Articles 72a and 125a of Council Regulation (EC)  No 73/2009 provide that Member States may 
decide to grant from 2014 a redistributive paymen t. The payment shall be granted within a ceiling 
set based on up to maximum 30% of the annual national ceiling and calculated by multiplying a 
limited number of hectares per holding with an amount which is not higher than 65% of the 
national average payment per hectare. The number of eligible hectares per holding may not exceed 30 or the average holding size in the Member States concerned if it is higher.   
4.3.3.14  POSEI 
The legal basis for this expenditure is Regulation (EU) No 228/2013. Objective factors arising as a 
result of insularity and remoteness of certain regions of the EU impose constraints on economic 
operators and producers in these outermost regions that severely handicap their 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 2013 - 31 December 2014.  
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 conclusions of the Lisbon and Göteborg 
European Councils for competitiveness and sustainable development. 
 4. Background and authority for the programme 
 Council Regulation No 74/2009 amending Council Regulation (EC) No 1698/2005, as well as Council Regulations (EC) No 1290/2005 and (EC) No 378/2007 for 2013. As from 1.1.2014 Regulation (EU) 1305/2013 of the European Parliament and the Counci of 17 December 2013 
on support for rural development by the European Agriculltural Fun for Rural Development 
(EAFRD) and replacing Council Regulation (EC) No 1698/2005.  
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.   
7. Total expenditure under the programme 
 
The table below shows the amounts involved (payment appropriations in million € for each 
financial instrument).  
 G/SCM/N/284/EU 
 
- 29 - 
 
  Expenditure (payments) for Ru ral Development (million EUR) 
Financial instrument 2012  2013  2014 
EAFRD 2014-2020 0.0  0.0 225.0 
EAFRD 2007-2013 13,116.6 12,950 11,172.4 
EAGGF Guarantee Section 
completion of programs 2000-2006  
-2.8 -1.0 -1.4 
EAGGF Guidance Section 
completion of earlier programs  
137.5 196.3 6.6 
Transitional in strument for 
New Member States Completion of 2004-2006 programs  
0.0 0.0 0.0 
Other 0.0 0.0 0.0 
Total 13,251.3  13,145.3  11,177.6 
 
8. Duration of the programme 
 
2007 - 2013 and 2014 - 2020 for the new programming period.  
 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 pe ople who live and work there. The EU's rural 
areas are a vital part of its physical make-up and its identity. Farming involves 25 million people in the EU and manages 50% of the EU  territory. The whole EU agri-food sector 
generates 7% of employment and 3.5 % of EU's  total value added. Agri-food sector is the 
4
th export sector in EU: increased the value of its exports by 70% in the last 5 years (faster 
than overall EU exports).Many of the EU's rural areas face significant challenges. Average income per head is lower in rural regions than in towns and cities, while the skills base is 
narrower and the services sector is less developed. Also, caring for the rural environment often 
carries a financial cost. The Europe 2020 Strategy, the EU Environmental Action Programme 2020 and the 2020 Climate and Energy Package are just as relevant to the countryside as to 
the towns and cities. The EU's rural development policy is all about meeting the challenges 
faced by rural areas, and unlocking their potential. 
Theoretically, individual EU Member States could decide and operate completely independent rural 
development policies. However, this approach 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 regi ons due to the principle of shared management. 
The policy is funded partly from the central EU budget and partly from individual Member States' national or regional budgets. 
 
The essential rules governing rural development policy for the period 2014 to 2020 as well as the policy measures available to Member States and regions, are set out in Council Regulation (EU) No 1305/2013 of 17 December 2013 on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) and repealing Council 
Regulation (EC) No 1698/2005. On this basis Member States build their 2014-2020 Rural Development Programmes based upon at least four of the six common EU priorities. G/SCM/N/284/EU 
 
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  1. fostering knowledge transfer and innovation in agriculture, forestry and rural areas; 
2. enhancing the viability / competitiveness of all types of agriculture, and promoting 
innovative farm technologies and sustainable forest management; 
3. promoting food chain organisation, animal welfare and risk management in agriculture; 
4. restoring, preserving and enhancing ecosystems related to agriculture and forestry; 
5. promoting resource efficiency and supporting the shift toward a low-carbon and climate-
resilient economy in the agriculture, food and forestry sectors; 
6. promoting social inclusion, poverty reduction and economic development in rural areas. 
4.5.2  Rural development measures 
 Knowledge transfer and information actions  a i m s  a t  t h e  d i f f u s i o n  o f  s c i e n t i f i c  
knowledge and innovative practices, for pers ons engaged in the agricultural, food and 
forestry sectors as well as SMEs operation in rural areas. Operations supported may include training courses, workshops and coaching, but shall not include courses of 
instruction or training which form part of normal programmes or systems of agricultural 
and forestry education at secondary or higher levels. Other activities which can be supported under the measure are demonstration projects and farm/forest exchanges and 
visits. 
 
 Advisory services, farm management and farm relief services : this measure support 
the use of advice by farmers, forest holders an d SMEs in rural areas. Support is granted to 
help them to make use of advisory services for the improvement of the overall 
performance of their holdings. As a minimum the advisory service to farmers shall cover one of the elements mentioned in Article 15( 4) of Regulation (EU) 1305/2013 Support for 
the use of advisory services shall be limited to a maximum of 1500 € per advice. Support 
under this measure can also be provided to cover cost arising for the setting up of farm and forest advisory services, farm management  services and farm relief services. Support 
shall be digressive over a maximum period of five years from setting up. Furthermore the 
measure support the training of advisors in order to ensure the quality of the service provided. 
 
 Supporting farmers who participate in food quality schemes  covers agricultural 
products and foodstuffs for EU quality schemes, or for those recognized by the Member 
States which comply with precise criteria or voluntary agricultural product certification 
schemes recognised by Member States as meeting the Union best practice guidelines. 
Schemes, whose sole purpose is to provide a higher level of control of respect of obligatory standards under EU or national law, shall not be eligible for support. The support is 
granted as an annual incentive payment whose level shall be determined according to the 
level of the fixed costs arising from the first participation in supported schemes, for a maximum duration of five year s. The support is limited to a maximum amount 3,000 € per 
holding. Supporting groups of producers for information and promotion activities  
in the internal market for products under food quality schemes is also eligible. Support 
concerns products covered by the support of the quality schemes mentioned above. It 
shall be limited to a maximum of 70% of the cost. 
 
 Investments in physical assets  is a support scheme to be carried out in order to improve 
the economic and environmental performanc e of agricultural holdings and rural 
enterprises, improve the efficiency of the ag ricultural products marketing and processing 
sector. The support contributes to the development of infrastructure needed for the development of agriculture and forestry and support non-remunerative investments 
necessary to achieve environmental aims. Investment support is one of main instruments 
of the EU's rural development policy and has been used by all Member States in the 
programming period 2007-2013. Investment measures have been highly relevant in meeting the needs of agriculture via improvin g competitiveness and contributing to the 
maintenance of sustainable agricultural structures, and have served multiple economic, 
social and environmental priorities at once. 
 
 Restoring of agricultural  production potential: in order to prevent the negative 
consequences of natural disasters, adverse climatic events and catastrophic events, 
investments in prevention and restoration may be supported. In case of investments for G/SCM/N/284/EU 
 
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  restoration the level of destruction shall be at least 30% of the relevant agricultural 
production potential 
 
 Business start up support for young farmers . Support is granted to persons who are 
less than 40 years of age and are setting up for the first time on an agricultural holding as 
head of the holding. They must possess adequate occupational skills and competence and submit a business plan for the development of their farming activities. The support shall be 
granted up to the maximum amount laid down in the Annex II of Regulation 
(EU) No 1305/2013. Business start-up support for non-agricultural activities in 
rural areas . Support is provided for the start of a new non-agricultural activity in rural 
area. The support shall be granted up to the maximum amount laid down in the Annex II 
of Regulation (EU) no 1305/2013 per pers on who submits a business plan for the 
development of their farming activities.  
 
 Business start-up for the development of small farms . Support is provided to existing 
small farms (as defined by MS) for ensuring their sustainable development and growth and 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. 
 
 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. Specific derogations for the size exists for 
the investments in broadband and renewable energy. Conservation and upgrading of the 
rural heritage is also eligible here. The support covers the drawing-up of protection and 
management plans relating to Natura 2000 sites and other places of high natural value, 
environmental awareness actions and investments associated with maintenance, restoration and upgrading of the natural herita ge and with the development of high natural 
value sites. It also covers support for studies and investments associated with 
maintenance, restoration and upgrading of th e cultural heritage such as the cultural 
features of villages and the rural landscape. 
 
 Forestry  support contributes to the achievement of some of the most crucial environmental, 
societal and economic targets of the rural development policy. Forests has important role in management of natural resources, forests provide key ecosystem services, such as 
sequestering carbon, protecting soil and wate r, preserving biodiversity, supplying energy 
and raw material for a low carbon economy, while allowing recreational activities. Therefore the support aims at establishing fo rests and agroforestry systems, prevention 
and restoration of damaged forests. Moreover the support covers investments improving 
the resilience and environmental value of forests and investments in forestry technologies and in processing, mobilising and marketing of forest products. A separate support scheme is dedicated to operations of forest-environmental and climate services and forest 
conservation. 
 
 Supporting setting up of produc er groups and organisations . Support is granted in 
order to facilitate the setting up and administrative operation of producer groups and 
organisation for the purposes of firstly adapting the production and output of producers who are members of such groups to market re quirements. Secondly it is granted for the 
purpose of jointly placing goods on the market, including preparation for sale, 
centralisation of sales and supply to bulk buyers and thirdly for establishing common rules on production information, with particular regard to harvesting and availability. The 
support can be granted as a flat-rate aid in annual instalments for the first five years 
following the date on which the producer group or organisation was recognised. It shall be 
degressive and calculated on the basis of the group's or organisation's annual marketed production, up to the ceilings of 100,000 € per year.  
 
 Agri-environment-climate payments . Member States / regions must make the support 
under this measure available throughout their te rritories, in accordance with their specific 
national, regional or local specific needs an d priorities. The exact types of operation / 
intervention to be available in in a given part of that territory will depend on the particular 
environmental / climate needs identified in the SWOT analysis. Agri-environment-climate payments aim to preserve and promote the necessary changes to agricultural practices 
that make a positive contribution to the environment and climate. The support under this G/SCM/N/284/EU 
 
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  measure can be granted to farmers, groups of farmers or groups of farmers and other land 
managers and in justified cases also to other land managers or their groups who undertake 
voluntary agri-environment-climate commitments  on agricultural land. Agri-environment-
climate payments cover only those commitments going beyond the relevant mandatory 
standards established pursuant to Chapter I of  Title VI of Regulation (EU) No 1306/2013, 
the relevant criteria and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013, and relevant minimum 
requirements for fertiliser and plant protection product use as well as other relevant 
mandatory requirements established by national law and identified in the programme. The commitments are undertaken as a general rule for a period of five to seven years. If justified by achieving or maintaining environmental benefits, a longer period can be 
determined. After termination of the initial period commitments, their annual extension is 
possible. The payments are granted annually and cover all or part of the additional costs 
and income foregone resulting from the commitments made. Where necessary, they may 
cover also transaction cost. When calculating the payments, Member States must deduct 
the amount necessary in order to exclude do uble funding of the greening practices in 
Pillar I. Where appropriate, the beneficiaries may be selected on the basis of calls for 
tender, applying criteria of economic and en vironmental efficiency. Support is limited to 
the maximum amounts 450-900 € per hectare and 200 € per Livestock Unit in the case of support for local breeds in danger of being lost to farming. Support may also be provided for the conservation and the sustainable use and development of genetic resources in 
agriculture. 
 
 Organic farming measure in the current programming period 2014-2020 is established as 
a separate support scheme (it was part of the agri-environment measure earlier). This was 
decided to provide more visibility to the scheme. The support under this measure is 
dedicated for the conversion to or / and maintenance of organic farming practices with a 
view to encourage farmers to participate in such schemes, thus answering society's 
demand for the use of environmenta lly friendly farm practices.  
 
 Natura 2000 payments and payments linked to Directive 2000/60/EC . The support 
under this measure is to be granted to beneficiaries of this measure who suffer from 
particular disadvantages due to specific mandatory requirements in the areas concerned resulting from the implementation of Birds and Habitats Directives and Water Framework 
Directive (WFD) when compared to the situation of farmers and foresters in other areas 
not concerned by these disadvantages. The compensation under this measure is to help address the specific disadvantages and to contribute to the effective management of 
Natura 2000 sites and river basin areas and to ensure the protection of those sites and 
associated water bodies. Support is limited to the maximum amount of 500€/ha in the initial period not exceeding five years after which the maximum amount is 200€/ha. For Water Framework Directive payment the minimum amount is 50€/ha. 
 
 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. 
 
 Payments in mountain areas, on other than mountain areas facing significant 
natural constraints and on other area s affected by specific constraints  compensate 
farmers annually per hectar for all or part of the additional costs and income foregone 
related to the constraints for agricultural production in the area concerned. Payments encourage continued use of agricultural land, contribute to maintaining the countryside 
and to maintain and promote sustaina ble farming systems. In the 2014-2020 
programming period, areas other than mountain areas facing significant natural constraints are to be delimited on the basis of bio-physical criteria. The minimum amount 
of payment is 25 EUR/ha/year, the maximum amount varies: on mountain areas up to EUR 
450 and on other constraint areas is up to EUR 250/ha, with a possibility to give higher support in duly justified cases. 
 G/SCM/N/284/EU 
 
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   Animal welfare payments . Animal welfare commitments shall provide upgraded standards 
of production methods and support farmers to prepare for possible higher standards in the 
future. Support under the measure "Animal welfare" can be paid for specific commitments and practises which go beyond the existing standards and which have a direct effect in 
improving animal welfare. Besides the "Animal welfare" measure as laid down in Article 33 
of Regulation (EU) No 1305/2013, animal welfare may be supported under several other measures of Rural Development. The payments co ver all or part of the additional costs and 
income foregone resulting from the commitment made. Where necessary, they may cover 
also transaction cost. Support is limited to the maximum amount of 500€/LU.  
  The Co-operation measure , as laid down in art 35 of Regulation (EU) No 1305/2013, can 
support the setting-up, running and direct cost s of a wide range of cooperation projects, 
which involve at least two entities. It can support Operational Groups under the European Innovation Partnership Agricultural Productivity and Sustainability, experimental work to 
develop new products, processes and technologies in the agri-food and forest sectors, co-
operation among small operators in organising joint work processes and sharing facilities and resources, co-operation among supply chain actors for the establishment and 
development of short supply chains and local markets, joint action undertaken with a view 
to mitigating or adapting to climate change as well as environmental projects and practices, horizontal and vertical co-operation among supply chain actors in the sustainable provision of biomass, Public-private partnerships / non-LEADER local 
development strategies, drawing-up of forest management plans, diversification of farming 
activities into activities concerning health care, social integration, community-supported agriculture and education about the enviro nment and food. The Co-operation measure 
should be used to make new things happen. It must not be used to support joint activities 
which are already taking place but it can support existing entities embarking on new projects. Annex II to Regulation (EU) 1305/2013 does not specify support rates for the 
"Co-operation" measure. Therefore, the maximum permitted support rate for a given 
operation depends on whether the operation falls within the scope of Art. 42 TFEU 
(i.e. whether it requires state aid clearance), and on whether the maximum support rate of a different rural development measure applies (pursuant to Art. 35(6) of 
Regulation (EU) 1305/2013). 
 
 The risk management  toolkit has been newly introduced under the second pillar of the CAP 
for the period 2014-2020. The toolkit consists of three measures, notably subsidies for 
insurance premiums, mutual funds and an income stabilisation tool, and accompanies the possibility for restoring investments to recover agricultural production potential. The 
measures support farmers adhering to insurance policies, and mutual funds which pay 
financial compensation to affiliated farmers for losses to their animals, crops, and plants caused by crisis events including adverse climatic events, animal and plant diseases, pest infestations, and environmental incidents. The maximum support rate is 65% and the 
crisis event should destroy more than 30 % of the average annual production of the 
farmer. Moreover, the income stabilisation tool foresees support to mutual funds which provide compensation to affiliated farmers wh ere the drop of income exceeds 30% of the 
average annual production of the individual farmer.  
 The support granted under the LEADER  shall cover: 
 
 The costs of preparatory support consisting of  capacity-building, training and networking 
with a view to preparing and implementing a community-led local development strategy. 
 Implementation of operations under the community-led local development strategy. 
 Preparation and implementation of the local action group's co-operation activities. 
 Running costs linked to the management of the implementation of the community-led local 
development strategy consisting of operating co sts, personnel costs, training costs, costs 
linked to public relations, financial costs as well as the costs linked to monitoring and 
evaluation of that strategy. 
 animation of the community-led local developmen t strategy in order to facilitate exchange 
between stakeholders to provide information and to promote the strategy and to support 
potential beneficiaries with a view to developing operations and preparing applications. 
 G/SCM/N/284/EU 
 
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  4.6  IPARD 
1. Title of the programme 
 
IPARD, the Rural Development programme under the Instrument for Pre-accession Assistance. 
 
2. Period covered by the notification 
 
1 January 2013 - 31 December 2014. 
 3. Policy objective and/or purpose of the programme 
 
The objective of IPARD is to provide assistance for the progressive alignment of agricultural sector 
in pre-accession countries with Union standards, while pursuing balanced territorial development of rural areas and increasing food-safety of those countries as well as their ability to cope with 
competitive pressure; the investment support is to be channelled through management and 
control systems which are compliant with good governance standards of a modern public administration.   
 
4. Background and authority for the programme 
 Legal basis 2013 : Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an 
Instrument for Pre-Accession Assistance (IPA). 
 Legal basis 2014 : Regulation (EU) No 231/2014 of the Euro pean Parliament and of the Council of 
11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II). 
 5. Form of assistance granted – Grants from EU budget 
 IPARD operational programmes co-financed by the EU budget and the IPARD beneficiary countries. 
 6. To whom and how the assistance is provided 
 The aid is co-financed by the European Commission  together with the IPARD beneficiary countries 
and implemented through multi-annual operatio nal programmes approved by the Commission. By 
means of indirect management, the budget implementation tasks for each measure of every 
programme, covering selection, approval, controls and financial execution of the individual projects, are entrusted to the IPARD beneficiary count ries. Aid to final beneficiaries is paid in the 
form of grants. 
 7. Total expenditure under the programme  
 
Expenditure for pre-accession (million EUR) 
Financial 
instrument 2012 2013 2014 
Ipard 6.5 47.6 158.7 
 
8. Duration of the programme 
 
2007 - 2013 for IPARD I and 2014-2020 for IPARD II. 
 
9. Trade effects 
 No, or at most minimal, trade distorting effects. 
 
4.7  Measures Financed By IPARD 
IPARD is intended to cover the EU assistance by means of operational programmes to the pre-
accession countries in progressive alignment with the standards and policies of the 
European Union, including where appropriate the acquis communautaire , with a view to 
membership. G/SCM/N/284/EU 
 
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  As part of agriculture and rural development policy area, IPARD programmes shall support 
countries in their preparation for the implementa tion and management of the Common Agricultural 
Policy. In particular, it shall contribute to the sustainability of the agricultural sector and rural development and to the public administration reform in the pre-accession countries allowing 
setting up of the management and control structures suitable for managing post-accession EU-
funded rural development programmes. During 2013,  the countries eligible for IPARD were Turkey, 
Croatia and the Former Yugoslav Republic of Macedonia.  
 
In 2014, with a change in policy approach, all pre-accession countries became eligible, subject to the presence of appropriate management and control capacities. So far IPARD II programmes have been adopted for Turkey, the Former Yugoslav  Republic of Macedonia, and Serbia; adoption 
is pending for Albania and Montenegro. No entrus tment for budget implementation tasks has been 
granted so far under IPARD II; therefore, no expenditure was made in 2014.  
5  EUROPEAN FISHERIES FUND (EFF) 
EU Funds 
 
1. Title of the measure 
 
The European Fisheries Fund (EFF) and the European Maritime and Fisheries Fund (EMFF).  
2. Period covered by the notification 
 
2013 (under the EFF) and 2014 (under the EMFF). 
 
In its 12 July 2013 communication (G/SCM/N/253), th e EU informed about the public measures of 
support for the fisheries and aquaculture sectors under the EFF in the 2007-2013 period. Under 
EFF rules, funds should be spent up to two ye ars after they have been committed; hence, EFF 
funds can still be spent until the end of 2015.  Since 1 January 2014, the EU has a reformed Common Fisheries Policy (CFP)
2 which aims to 
ensure that fishing and aquaculture are environmen tally, economically and socially sustainable and 
that they provide a source of healthy food for EU citizens. Among its objectives, the CFP aims to foster a dynamic fishing industry and ensure a fair standard of living for fishing communities. The 
new CFP has four main policy areas: Fisheries management, International policy, Market and trade 
policy, and the EMFF 2014-2020.  
Since the entry into force of the EMFF, EU Member States have started developing their 
operational programmes to implement the priorities of the EMFF. Given the delays in its adoption (15 May 2014, with retroactive effect to 1 January 2014) however, by April 2015, only 5 EMFF Operational Programmes had been adopted by the Commission. The remainder are expected to be 
adopted by the end of 2015. Therefore no EMFF support has been committed during 2014. 
 3. Policy objectives and/or programme objectives 
 The EMFF promotes sustainable fisheries and aq uaculture and fosters the implementation of 
measures that are subject to new rules as to ensure better compliance of Member States and 
operators with the objectives, rules and targets of the reformed Common Fisheries Policy (CFP). 
 The EMFF includes funding opportunities for the protection of the environment through measures in support of fisheries resources management, including the transition to maximum sustainable 
yield (MSY), the introduction of the landing oblig ation and the adoption of long term management 
plans. The EMFF also encourages producer organisations to implement the new CFP through new management tools (i.e. production and marketing plans). Under the EMFF, the market intervention 
mechanism has significantly reduced in scope and will be phased-out after 2018. 
 In addition, in order to increase the number of stocks for which scientific advice is available, the 
budget for data collection and scientific advice has been substantially increased. Last but not least, 
                                               
2 Regulation (EU) No 1380/2013 of 11 December 2013 (OJ L 354 of 28.12.2013). G/SCM/N/284/EU 
 
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  the budget for fisheries control has also been considerably enlarged to ensure better compliance 
with CFP rules.3 
 The EMFF also supports the Integrated Maritime Policy (IMP), facilitating coordination across 
borders and sectors to bring cost-effective synergies and money savings in managing maritime-
related activities. Funding focuses mainly on initiatives developed in various sectors across the board like maritime spatial planning, integrated  maritime surveillance and marine knowledge. 
 
The EMFF's key objectives are thus:  • To help fishermen to adapt to new sustainable fishing practices, to diversify their sources of 
income and to make the sector generally more competitive. On its own the CFP cannot help reach 
the objectives of a socially and economically sustainable future for the sector. This is why the European Maritime and Fisheries Fund is so important as we enter a new era for the Common 
Fisheries Policy. 
 • The EMFF also invests in the competitiveness of the fisheries, aquaculture and processing 
sectors. It focusses mainly on supporting innovation in the development or introduction of new or 
substantially improved products, pieces of equipment, processes, techniques, management and organisation systems. Marketing and production  plans and the development of new markets, 
together with diversification and complementary sources of income, are privileged as ways to 
increase income. 
 • The EMFF has an important job dimension too. It supports the creation of jobs in fishing, 
inland fishing and aquaculture and to maintain  jobs by supporting blue and green growth, 
complementary activities to fishing, inland fishing and aquaculture.  
• Finally, building on the positive results fr om supporting the sustainable development of 
fisheries areas under the EFF, the EMFF sustai ns the implementation of local development 
strategies in fisheries and aquaculture areas intended to add value, create jobs, attracting young people and promote innovation at all stages of the fisheries and aquaculture supply chain and/or 
to support diversification inside commercial fishing. Such strategies are important not only for 
social but also for territorial cohesion.  
4. Legal basis 
 
As regards the EMFF, the Treaty of the Function ing of the European Union, and in particular 
Articles 42, 43(2), 91(1), 100(2), 173(3), 175, 188, 192(1), 194(2), 195(2) and 349 thereof. 
 5. Type of public support 
 
Both the EFF (in the 2007-2013 period) and the EMFF (in the 2014-2020 period) are used to co-
finance projects, along with national funding.  Each Member State is allocated a share of the total Fund budget based on the size of its fishing industry. Each Member State then draws up an 
operational programme, saying how it intends to spend the money. Once the Commission 
approves this programme, it is up to the nation al authorities to decide which projects will be 
funded. The national authorities and the Commission  are jointly responsible for the implementation 
of the programme.   
 Under the EFF, 98.5% of the support was provided in the form of grants; a 1.5% is delivered by 
financial engineering instruments (normally guarantees and loans) which are repayable in nature. 
Six Member States have used financial engineering instruments in the period 2007-2013 (Bulgaria, 
Romania, Greece, Latvia, Estonia and The Netherlands). As for the EMFF, at least 9 Member States are expected to use financial instruments, including the 3 with the larger EMFF allocations (Spain, 
France and Italy). 
 
                                               
3 Out of a total amount of € 5.75 billion for the period 2014 – 2020 of the EMFF, € 1.1 billion are 
dedicated to control and data-collection measures. G/SCM/N/284/EU 
 
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  6. To whom and how the public support is provided 
 
Under the EFF and EMFF, beneficiaries are selected on the basis of selection criteria set by the Managing Authority. Beneficiaries can include fishermen, fishermen organisations, firms in the 
fisheries, aquaculture, and fish processing sect ors, SMEs, producer organizations, professional 
organizations, fisheries local actions groups (FLAGs) and cooperatives.  
Under EMFF rules, access to funds is conditio nal upon the compliance by Member States and 
operators with the objectives, rules and targets of the CFP, in particular the control obligations, the rules against illegal, unregulated and unreported fishing and the data collection. This principle existed also under the EFF but has been given more importance under the EMFF. 
 
Under EMFF rules, Member States have to publish in a single website or portal a list of operations supported under the EMFF along with the corresponding amounts for each operation. These lists 
will be updated at least every six months. This is particularly important to prevent that 
beneficiaries involved in illegal fishing activities receive funding.  
7. Total budget of the programme 
 
The EMFF is the financial support tool of the CFP and the Integrated Maritime Policy (IMP). Its total financial envelop is €6.4 billion (€5.75 billion in shared management and €0.65 billion in direct 
management). As of April 2015, only 5 EMFF Operational Programmes had been adopted, 
therefore no expenditure has thus far been incurred.  
EMFF allocation by Member State 2014-2020 (Euros) 
BE 41,746,051.00 
BG 88,066,622.00 
CZ 31,108,015.00 
DK 208,355,420.00 
DE 219,596,276.00 
EE 100,970,418.00 
IE 147,601,979.00 
EL 388,777,914.00 
ES 1,161,620,889.00 
FR 587,980,173.00 
HR 252,643,138.00 
IT 537,262,559.00 
CY 39,715,209.00 
LV 139,833,742.00 
LT 63,432,222.00 
HU 39,096,293.00 
MT 22,627,422.00 
NL 101,523,244.00 
AT 6,965,000.00 
PL 531,219,456.00 
PT 392,485,464.00 
RO 168,421,371.00 
SI 24,809,114.00 
SK 15,785,000.00 
FI 74,393,168.00 
SE 120,156,004.00 
UK 243,139,437.00 
EU27 (*) 5,749,331,600.00 
 
 * Luxembourg is not a recipient of EMFF funds. 
 G/SCM/N/284/EU 
 
- 38 - 
 
  As regards the EFF (and the EMFF), a distinction has to be made between funds which are 
committed to be spent in selected projects and fund s that are actually spent in these projects and 
claimed by the relevant Member State to the Co mmission to be paid. As stated above, Member 
States have to spend the amounts committed within two years (3 years under the EMFF). 
Otherwise the funding is lost by the Member St ate and by the Commission under the EFF. Funding 
lost that way is said to be "de-committed".  
Regarding commitments, from 1 January 2007 to 31 May 2014, EFF commitments amounted to 
EUR 3.413 billion (out of a tota l allocation of EUR 4.3 billion).
4 This represents an increase of 18  % 
over 31 May 2013 (EUR 515 million in one year). Nevertheless, the amount committed represented just 79% of the total EFF allocation. 
 
To that amount, in the same period, Member States had committed a further EUR 2.09 billion, as co-financing of EFF measures under public national support. 
 
Regarding EFF funding spent. Payment claims from Member States to the Commission in 2013 totalled EUR 544 million, compared to EUR 589 million in 2012. In total, by the same date slightly 
over 50% of the total EFF allocation has been claimed by Member States. 
 Finally, yearly de-commitments were €73 million correponding to 2011 commitments (amount de-committed at the end of 2013) and €170 million correponding to 2012 commitments. The overall 
amount de-committed in the period 2008-2012 amounts to €238.6 million, which represents 6.6% 
of the total EFF budget.   
All in all, the Commission considers very likely that by the final date of 31 December 2015, a 
significant part of the EFF allocation would not be used.  
8. Duration of the programme 
 
As regards the EFF: 2007 – 2013 (31 December 2015 by virtue of the n+2 rule). As regards the EMFF: 2014 - 2020 (31 December 2023 by virtue of the new n+3 rule applicable in 
the new programming period). 
 9. Trade effects 
 Given that the EMFF's main objective is to support environmentally sustainable, resource efficient, competitive fisheries which are more selective,  produce less discards, and do less damage to 
marine ecosystems, the structural support granted under EU funds has no distortionary effects on 
trade.  In addition, as indicated in the EU's 2013 notifi cation, the EU has a shortfall in fisheries and 
aquaculture products and it is a major importer of these products from the rest of the world; 
hence, the structural support granted under EU funds has very limited influence on this situation.  
Finally, under EU State aid legislation, aid for export-related activities, namely aid directly linked to 
the quantities exported, to the establishment and op eration of a distribution network, or to other 
costs linked to the export activity and aid contingent upon the use of domestic over imported 
goods is incompatible with the internal market, and hence it is not permitted.  
 EU's Member States aid (i.e. State Aid) 
 
The total amount of State aid for the fishery an d aquaculture sector granted by Member States 
beyond co-financing EFF measures in 2013 amount ed to EUR 80.3 million. That amount is the 
lowest since 1996. The amount of state aid has continuously decreased since 2007 
(EUR 418 million). The 2013 figure represents an 80% decrease in the yearly amount over 2007. 
Further details should be requested from Member States.  
 
                                               
4 The explanation of the EFF objectives and the alloca tion of EFF funds to Member States can be found 
in the 2013 European Union Notification to the WTO (G/SCM/N/253/EU, Chapter 5). G/SCM/N/284/EU 
 
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  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),  
 
- the Framework Programme of the European Atomic Energy Community (EURATOM) 
for nuclear research and training activities (2012-2013),  
 
‐ the Horizon 2020 EU Framework Programme for Research and Innovation (2014 to 
2020), and 
 
-  the Research and Training Programme of the European Atomic Energy Community 
(2014-2018) complementing the Horizon 2020 Framework Programme for Research 
and Innovation. 
 The arrangements for implementing these framework programmes are essentially the same and 
are therefore described together in the following paragraphs. 
 2. Period covered 
 
Calendar years of 2013 and 2014. 
 3. Policy objective 
 Financial participation in EU research and technological development (RTD) activities during the period 2013 and 2014 is provided through the above-mentioned framework programmes. 
 
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 ad opting this framework programme (Decision 
No. 1982/2006/EC of 18 December 2006
5). 
 
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
6 of 2012/93/Euratom of 19 December 20117) and 
2013/1314 of 16 December 2013.8 
 
The activities under these framework programmes relate to fundamental research, industrial 
research or pre-competitive development. Financing of product development is excluded.  
Horizon 2020 focuses on three priorities, namely generating excellent science in order to 
strengthen the Union's world-class excellence in scie nce, fostering industrial leadership to support 
business, including micro, small and medium-s ized enterprises (SMEs) and innovation, and 
tackling societal challenges, in order to respond directly to the challenges identified in the 
Europe 2020 strategy by supporting activities covering the entire spectrum from research to market.  
These objectives and activities are implemented through the Decision establishing a specific 
programme implementing Horizon 2020 of 3 December 2013.
9 
 
The implementation of Horizon 2020 and the Euratom Programme is aimed to respond to the 
evolving opportunities and needs of science an d technology, industry, policies and society. 
                                               
5 OJ L 412, 30.12.2006, p. 1. 
6 OJ L 400, 30.12.2006, p.1. 
7 OJ L 47, 18.2.2012, p. 25. 
8 OJ L 347, 20.12.2013, p. 948. 
9 OJ L 347, 20.12.2013, p. 965. G/SCM/N/284/EU 
 
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  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 or Regulation 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; 
 
-  EU: Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 
11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020), OJ L347, 20 December 2013, page 105; 
 
- Euratom: Council Regulation (EURATOM) No 1314/2013 of 16 December 2013 on the 
Research and Training Programme of the European Atomic Energy Community (2014-
2018) complementing the Horizon 2020 Framework Programme for Research and 
Innovation, OJ L 347, 20.12.2013, p. 948. 
 Each framework programme is further implemented by Decisions by the Council adopting "Specific 
Programmes": 
 
- EC: Specific Programmes "Cooperation", "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; 
 
‐ EU: Council Decision of 3 December 2013 establishing the specific programme 
implementing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decisions 2006/971/EC, 2006/972/EC, 2006/973/EC, 
2006/974/EC and 2006/975/EC, OJ L 347, 20.12.2013, p. 965. 
 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 
 
‐ EU: Regulation (EU) No 1290/2013 of the Eu ropean Parliament and of the Council of 
11 December 2013 laying down rules for participation and dissemination in "Horizon 
2020-the Framework Programme for research and Innovation (2014-2020) and repealing Regulation (EC) No 1906/2006, OJ L 347, 20.12.2013, p. 81. 
 
Work programmes are adopted specifying the research topics and other conditions for the award of grants are adopted, in general, every two years.  G/SCM/N/284/EU 
 
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  Grant agreements are concluded with the participants in the projects. The various model grant 
agreements, as well as the other documents are available at:  http://ec.europa.eu/research/participants/portal/desktop/en/home.html  
 
5. Form of the subsidy 
 
Support to RTD activities is provided in the form of grants within the meaning of Article 25.3 of the 
WTO Agreement on Subsidies and Countervailing Measures. 
 6. To whom and how the subsidy is provided 
 
Research projects are carried out primarily by participants established within the European Union. 
Legal entities established in a country that has signed an association agreement (associated country) may 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 other 
countries may receive funding under certain conditions.  
In general, research projects must include the participation of at least three independent legal 
entities each established in a different Member State or associated country.  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 procedure with independent experts and selection procedure. The undertakings apply in function of their interest in carrying out a research project 
on a specific research topic in collaboration with other partners. 
 The amount of the grant is typically calculated as  a percentage of eligible costs of the project, 
depending on the nature of the activity concerned. Eligible costs are defined in the Rules for 
Participation.  7. Amount of subsidy 
 
2013-2014 Total amounts granted 
(in millions of EUR) 
Seventh framework programme of the European Community for research, 
technological development and demonstration activities 11,875 
Horizon 2020 EU Framework programme for Research and Innovation 2,630 
Seventh framework programme of the European Atomic Energy 
Community (EURATOM) (excluding Fusion grants) 64 
Programme of the European Atom ic Energy Community (EURATOM) 
complementing Horizon 2020 (excluding Fusion grants) 425 
Total 14,994 
 
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/284/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://ec.europa.eu/research/industrial_technologies/rfcs_en.html . 
 
For coal and steel, the Union contributes financially in the following ways: through research, pilot and demonstration (RTD) projects, accompanying measures and support and 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/284/EU 
 
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  Total EC support allocated to coal and steel projects in the period 2013 and 2014 are: 
 
Year 2013 2014 
Support in Million of € 52 48 
 
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 years 2013 and 2014 concern two legislativ e packages. For the year 2013, the legislative 
provisions adopted for the period 2007-13 are relevant. For 2014 the legislative provisions of 2014-2020 apply.  
 
For both legislative periods the legislative pa ckage 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. 
- A regulation for each of the sources of financing (ERDF, ESF, CF and the Instrument for 
Pre-Accession Assistance (IPA)). 
- A new regulation creating the possibility to create a cross-border authority to carry out 
cooperation programmes. 
 The budgetary commitments in 2013 and 2014 amounted to: 
 
Fund  Budget available  2013 
Execution Budget available 2014 
Execution 
ERDF 31.215.990.782,9 31.086.933.085,11 29.515.381.772 29.515.381.772  
CF 11.973.409.708,08 11.906.385.666,45 12.852.961.748 12.852.961.748  
ESF 13.855.312.813,17 13.763.798.109,17 10.522.815.774,77 10.522.815.774,77  
 
The technical assistance for Commission activities (for all ERDF, CF & IPA) is excluded from the 
calculations.  
These structural actions are required to comply st rictly with the Union's rules on the provision of 
state aid (Articles 107-108 of the TFEU).  The structural actions are notified in the spirit of  transparency. The aid involved is largely devoted 
to the least-developed areas of the EU, and the majority of aid goes to finance infrastructure or to 
assist individuals directly, without necessarily benefiting commercial enterprises. Consequently, as stated at the beginning of this document, the notification of a particular fund does not prejudge 
the status of the aid involved. 
 7.1  European Regional Development Fund 
1. Title of the programme 
 
European Regional Development Fund (ERDF).  
2. Period covered by the notification 
 
2013, 2014. 
 G/SCM/N/284/EU 
 
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  3. Programming period 
The period covered by the notification refers to programming periods: 2007-2013 and 2014-2020. 
(Please note that programmes under the programming period 2007-2013 are now being closed).  
4. Legal basis 
 
Articles 174 and 176 of the TFEU. 
 
For the programming period 2007-2013, the legal basis is:  
- Regulation (EC) No 1083/2003 of 11 Ju ly 2006 laying down provisions on the 
European Regional Development Fund, the European Social Fund and the Cohesion 
Fund and repealing Regulation (EC) No 1260/1999; 
- Regulation (EC) No 1080/2006 Regulation (E C) of the European Parliament and of the 
Council of 5 July 2006 on the European Regional Development Fund and repealing 
Regulation (EC) No 1783/1999; 
- Regulation (EC) No 1828/2006 of 8 December 2006 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 Re gulation (EC) No 1080/2006 of the 
European Parliament and of the Council on the European Regional Development Fund. 
 
For the programming period 2014-2020, the legal basis is:  
- Regulation (EC) 1303/2013 of 17 December 2013 laying down common provisions on 
the European Regional Development Fund, the European Social Fund and the Cohesion Fund. the European Agricultural Fund for Rural Development and 
the European Maritime and Fisheries Fund and repealing Council Regulation (EC) 
No 1083/2006; 
- Regulation (EC) No 1301/2013 of 5 July 2006 on the European Regional Development 
Fund and repealing Regulation (EC) No 1080/2006; 
- Commission Delegated Regulation (EU) No 480/2014 of 3 March 2014 supplementing 
Regulation (EU) No 1303/2013 of the Europe an Parliament and of the Council laying 
down common provisions on the European Regional Development Fund, the European 
Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural 
Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, 
the Cohesion Fund and the European Maritime and Fisheries Fund. 
 5. Form of assistance granted – Grants or ot her forms of support from the Union budget for 
ERDF resources are mainly used to co-finance: 
 
 productive investment leading to the creation or maintenance of jobs; 
 investment in infrastructure; 
 development of endogenous potential by me asures which support regional and local 
development. 
 
6. Objectives 
 
Regional policy targets all regions and cities in  the European Union in order to support job 
creation, business competitiveness, economic growth, sustainable development, and improve 
citizens' quality of life. 
 In 2007-2013 the objectives are the following: 
 
- The Convergence objective, which shall be aimed at speeding up the convergence of 
the least-developed Member States and regions by improving conditions for growth 
and employment through the 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 G/SCM/N/284/EU 
 
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  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. 
 
- 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. 
 For the period 2014-2020 the ERDF focuses its investments on several key priority areas. This is 
known as 'thematic concentration':  
 
- Innovation and research;  
- The digital agenda;  
- Support for small and medium-sized enterprises (SMEs);  - The low-carbon economy.  
 
The ERDF resources allocated to these priorities will depend on the category of region.  In more developed regions, at least 80 % of funds must focus on at least two of these priorities.  
In transition regions, this focus is for 60 % of the funds.  
It is 50 % in less developed regions.  
 Furthermore, some ERDF resources must be cha nnelled specifically towards low-carbon economy 
projects:  
 More developed regions: 20%;  
Transition regions: 15%; and  
Less developed regions: 12%.  7. Eligibility 
 The rules on eligibility are determined at the nati onal level, except when there are general rules 
laid down in the applicable EU legislation.  
 
The eligibility in the period 2007-2013 is as follows:  
- The convergence objective: The areas 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. 
 G/SCM/N/284/EU 
 
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  - 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. 
 
In the period 2014-2020, resources for the Investment for growth and jobs goal are allocated among the following three categories of regions: 
 
(a) less developed regions, whose GDP per capita is less than 75% of the average GDP of the EU-27; 
 
(b) transition regions, whose GDP per capi ta is between 75% and 90% of the average 
GDP of the EU-27; 
 
(c) more developed regions, whose GDP per capita is above 90% of the average GDP of 
the EU-27. 
 
8. Principles of intervention 
 
The principles of intervention are: complement arity, coherence, coordination, conformity and 
additionally, proportionality, equality between men and women and non-discrimination, 
sustainable development and using the Funds to focus on the Lisbon strategy priorities.  9. Budget 
 For the period 2007-2013, the European Council agreed in December 2005 on the budget for the period 2007-2013 and allocated € 347 billion on Structural and Cohesion Funds of which 81.5% is 
planned to be spent in the "Convergence" regions. Based on simplified procedures, nearly all of the 
436 programmes covering all EU regions and Member States were adopted before the end of 2007. 
 
In the period 2007-2013, cohesion policy benefited from 35.7% of the total EU budget or Є 347.41 billion (at current prices). 81.54% of this budget was for the Convergence objective, 
15.95% for the Regional Competitiveness and Empl oyment and 2.52% for the European Territorial 
Cooperation. 
 For the period 2014-2020, cohesion policy will benefit from 1/3 of the EU budget amounting to 
EUR 352 billion (at current prices). 96.3% of the budget will be for the Investment for growth and 
jobs goal. Resources for the European territorial cooperation goal amount to 2.75% of the total.  
10. Financial allocations per year (euro, current prices) 
 
Please note that these data cover all 3 Funds, not only ERDF 2007-2013 programming period.  Please find below the allocations for the 2007- 2013 programming period  as in Infoview:  
 
2007-2013 
 TOTAL 
2015 0,00 
2014 0,00 
2013 54.904.845.277,00  
2012 52.567.907.198,00  G/SCM/N/284/EU 
 
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  2007-2013 
 TOTAL 
2011 50.509.321.188,00  
2010 48.936.335.913,00  
2009 48.070.851.121,00  
2008 47.079.857.342,00  
2007 44.986.931.665,00  
Sum: 347.056.049.704,00  
 
For 2014: for ERDF/CF/ESF allocations for the 2014-2020 period: EUR 46.307.296.530.    
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. 
 
In line with EU cohesion policy, the State aid Gu idelines focus regional aid on the most deprived 
regions of the enlarged Union, while allowing for the need to improve competitiveness and to 
provide for a smooth transition. The use of the Stru ctural 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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