# EUR-Lex - 52014PC0031 - EN

*|*

# 52014PC0031

**Proposal for a COUNCIL REGULATION amending Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products /* COM/2014/031 final - 2014/0013 (NLE) */**

			*

			*

EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

General context

Regulation (EU) No 1308/2013 of the
European Parliament and of the Council provides for a legal and financial
framework governing the distribution of selected agricultural products to children
in schools through the School Milk Scheme (SMS) and the School Fruit Scheme
(SFS).

Council Regulation (EU) No 1370/2013,
adopted on the basis of Article 43(3) of the TFEU, fixes the amount of Union
aid under the SFS and the SMS as provided for by the Regulation (EU) No
1308/2013, and provides for the measures on the aid to be allocated to Member
States in the case of the SFS and for the maximum quantity of products eligible
for aid in the case of the SMS.

This proposal is presented in conjunction
with the proposal of the Commission to amend the Regulation (EU) No 1308/2013
in respect of the provisions pertaining to the school schemes. The proposal provides
for a new framework for the support of distribution of fruit and vegetables,
bananas and milk to children in educational establishments, including the
provisions on the amount of the Union aid, and how aid should be allocated
within Member States.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

n.a.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

In the interest of legal certainty, it is
proposed to delete Articles 5 and 6 of Council Regulation (EU) No 1370/2013, as
they would become obsolete with the proposed amendment of the Regulation (EU)
No 1308/2013.

4.           BUDGETARY IMPLICATION

Budgetary implications are presented in the
financial statement accompanying this proposal and a proposal [COM(2014) 32
final ] to amend Regulation (EU) No 1308/2013.

2014/0013 (NLE)

Proposal for a

COUNCIL REGULATION

amending Regulation (EU) No 1370/2013 determining
measures on fixing certain aids and refunds related to the common organisation
of the markets in agricultural products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 43(3) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Articles 5 and 6 of
Council Regulation (EU) No 1370/2013[1]
fix the amount of Union aid under the school fruit and vegetables scheme (SFS)
and the school milk scheme (SMS) as provided for by Regulation (EU) No 1308/2013
of the European Parliament and of the Council[2],
and provide for the measures on the aid to be allocated to Member States in the
case of the SFS and for the maximum quantity of products eligible for aid in
the case of the SMS.

(2)       Section 1 of Chapter II of
Title I of Part II of Regulation (EU) No 1308/13as amended by Regulation (EU)
No xxx/xx of the European Parliament and of the Council [new school scheme]
provides for a new framework for the support of distribution of fruit and
vegetables including bananas and milk to children in educational
establishments, including the provisions on the amount of the Union aid, and
how aid should be allocated within Member States. Articles 5 and 6 of
Regulation (EU) No 1370/2013 have therefore become obsolete as from the date of
application of Regulation (EU) No xxx/xx[new school scheme]. In the
interest of legal certainty such articles should be deleted.

(3)       Regulation(EU) No 1370/13
should be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Amendment
to Regulation (EU) 1370/2013

Articles 5 and 6 of Regulation (EU) No
1370/2013 are deleted.

Article 2

Entry
into force and application

This Regulation shall enter into force on
the seventh day following that of its publication in the Official Journal of
the European Union.

It shall apply from 1 August xx [same as
for the Council/EP Regulation amending Regulation (EU) No 1308/2013].

This Regulation shall be binding in its
entirety and directly applicable in all Member States.

Done at Brussels,

For
the Council

The
President

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
mode(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
contributions

3.3.    Estimated impact on revenue

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Regulation of the European Parliament and of the Council amending
Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the
aid scheme for the supply of fruit and vegetables, bananas and milk in the
educational establishments

Council Regulation amending Regulation (EU) No 1370/2013 determining
measures on fixing certain aids and refunds related to the common organisation
of the markets in agricultural products

1.2.        Policy area(s) concerned
in the ABM/ABB structure[3]

1.3.        Nature of the
proposal/initiative

 ̈ The proposal/initiative relates to a new action

 ̈ The proposal/initiative relates to a new action
following a pilot project/preparatory action[4]

 ̈ The proposal/initiative relates to the extension of
an existing action

X The proposal/initiative relates to an action
redirected towards a new action

1.4.        Objective(s)

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

The proposal aims to sustainably increase the share of fruit &
vegetables (F&V) and milk products in the diets of children, thus
contributing to the objectives of the common agricultural policy (CAP) of
stabilising the markets and ensuring the demand in the long run. It also aims
to contribute to the wider public health objectives of reducing overweight and
obesity, and diet-related diseases by shaping the sustainable healthy eating
habits.

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Specific objective: To improve access to food for sensitive social
groups

ABM/ABB activity(ies) concerned: 05 02 "Interventions in
agricultural markets"

1.4.3.     Expected result(s) and
impact

The proposal is expected to change the knowledge,
attitudes and preferences of young citizens towards food and its source, and
their perceptions of agriculture and its products.

It is also expected to increase the cost-effectiveness of
the distribution of products by better targeting the EU aid.

Moreover it would increase the part of the budget spent
on accompanying measures thus improving their impact on the target group
consumption and bridging the gap between the educational dimensions of the
School Fruit Scheme (SFS) and School Milk Scheme (SMS).

Finally it would also lead to a common framework per Member State and to increase the visibility of the EU intervention.

1.4.4.     Indicators of results and
impact

Three levels of indicators have been set regarding the
objectives:

Impact indicators:

-     Change in direct and indirect consumption
of fresh F&V by children after 5 years of intervention

-     Change direct and indirect consumption of
drinking milk by children after 5 years of intervention

-     Improvement in overall dietary quality

Main results indicators:

-     % of the budget available spent on
accompanying measures

-     % of supporting measures implemented
related to agriculture and agricultural products

-     Efficiency level of spending for the
promotion of consumption of agricultural products in schools

Main output indicators:

-     Number of accompanying measures implemented
in Member States (MS)

-     Number of children involved in accompanying
measures and share of total participating

-     MS Number of agri-related accompanying measures

-     Cost per portion

-     Number of participating MS, schools and
children

-     Volumes of products distributed at school
(number of portions of F&V and milk)

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

The needs underpinning the proposal are the need to sustainably
increase the consumption of fruit and vegetables and milk in children and the
need to shape their healthy eating habits.

CAP school schemes as currently implemented have certain weaknesses in
their design and deficiencies in their functioning that need to be addressed,
which limit their potential in achieving the objectives of promoting the
consumption of agricultural products (market objective) and healthy diets with
school children (health objective).

The problems identified concern the gap between the design of the
schemes and their objectives (different educational tools under the two
schemes), the lack of coordination and consistency between the two schemes and
the deficiencies limiting the immediate impact of spending (high administrative
and organizational burden on both schemes, budgetary under-execution of 30% in
SFS, potential deadweight effect and low cost-benefit ratio in SMS).

The drivers are mainly linked to the regulatory failures, different
financial framework, different implementation in Member States and to some
external factors.

1.5.2.     Added value of EU
involvement

The action at EU level provides the funding necessary for
initiatives across EU and additional sources of financing which permit Member
States to expand the scope of their actions and increase their effectiveness.
If Member States would have to rely exclusively on their own financial
resources, most of them would not be in a position to implement ambitious
initiatives. It also contributes to greater credibility of the schemes in
Member States and improvement of the EU image and awareness. An EU framework
has an added value in facilitating continuous knowledge, transparency,
experience transfer and exchange.

1.5.3.     Lessons learned from
similar experiences in the past

There are currently two EU-funded school distribution programmes
under the remit of the EU's Common Agricultural Policy (CAP) that specifically
target children in school settings, namely the School Milk Scheme (SMS) and the
School Fruit Scheme (SFS). Both schemes share a mutual aim to increase, on a
lasting basis, the share of these products in children's diets at an early
stage when their eating habits are being formed, thus contributing to the CAP
objectives, in particular stabilising markets and ensuring the demand in the
long run. Additionally, the schemes are in line with the wider public health
objectives as they contribute in shaping the sustainable healthy eating habits.

However, despite this positive embedding in schools and recognition
of their potential, conclusions drawn from different reports - in particular
the external evaluations of the SFS and the SMS, initiated by the Commission,
and the special report No 10/2011 of the European Court of Auditors - and
experience after years of implementation, have identified the need to make
further improvements to both schemes to increase their management efficiency
and effectiveness. The recent agreement on the reform of the CAP already
addressed also some of the problems identified.

1.5.4.     Compatibility and possible
synergy with other appropriate instruments

Taking into due account sectorial specificities the proposal is
compatible with the promotion of agricultural products. It is also in line with
public health objectives (weight management, health inequalities), simplification
and with principles and targets as formulated in the Europe 2020 Strategy.

1.6.        Duration and financial
impact

 ̈ Proposal/initiative of limited
duration

– 
 ̈  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

– 
 ̈  Financial impact from YYYY to YYYY

X Proposal/initiative
of unlimited duration

– 
Implementation with a start-up period from YYYY
to YYYY,

– 
followed by full-scale operation.

1.7.        Management mode(s) planned[5]

 ̈ Direct management by the Commission

– 
 ̈ by its departments, including by its staff in the Union
delegations;

– 
 ̈  by the executive agencies;

X Shared
management with the Member States

 ̈ Indirect management by delegating implementation tasks to:

– 
 ̈ third countries or the bodies they have designated;

– 
 ̈ international organisations and their agencies (to be specified);

– 
 ̈the EIB and the European Investment Fund;

– 
 ̈ bodies referred to in Articles 208 and 209 of the Financial
Regulation;

– 
 ̈ public law bodies;

– 
 ̈ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;

– 
 ̈ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide
adequate financial guarantees;

– 
 ̈ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

In the new scheme monitoring and evaluation are included in the
costs eligible for the EU aid due to their importance for sound management and
assessment of its effectiveness/efficiency towards the objectives identified.
The link with a multiannual (6 years) national/regional strategy is also
established.

The monitoring will be carried out on the basis of the annual MS
reports containing information on the budget used, the number of
school/children participating and the share of the total number of
school/children of the target group, the distribution frequency, duration, time
and system, the average weight and price per portion, the average consumption
per child and the total quantities distributed. Furthermore, the accompanying
measures will be also monitored as concerns the methods used and their cost,
frequency, participating school/children, involvement of stakeholders, products
distributed.

The evaluation process will consist of MS evaluation reports after 5
years of implementation of the scheme to measure medium-term impacts, followed
by an external EU wide evaluation one year after the MS evaluations, to assess
the implementation of the scheme at MS and EU level and assess overall
effectiveness, efficiency, coherence and relevance in accordance with Commission
evaluation standards and guidelines. Moreover, an external study on long-term
impact indicators could be envisaged.

The external evaluations of the SFS and SMS and the Court of
Auditors Special report No 10/2011 on these schemes have been clearly taken into
due consideration for the design of the monitoring and evaluation processes
relating to the new scheme.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

The general risk that can be identified relates to the effectiveness
of the scheme, i.e. that the EU aid reaches the final beneficiaries of the
scheme and effectively contribute towards reaching the scheme's objectives.

Based on the current experience from the SFS, particular attention
should be given to the selection of aid applicants and to procurement
procedures used for awarding contracts for distribution, publicity, monitoring
and evaluation. Control provisions shall also cover the implementation of the
said contracts. Public procurement is a potential issue for the School Scheme.

For other risks, as the possible deadweight effect and excessive
cost of products distributed or margin for suppliers, provisions can be
foreseen (e.g. on the level of EU-aid per portion).

As concerns the accompanying measures, there could be a risk of
overlapping with educational measures provided in schools and with promotion of
agricultural products. To avoid this, the definition of these measures will
involve an EU scientific expert group and their link with the objectives of the
new scheme will be clearly stated. Control provisions related to accompanying
measures shall address the genuineness of expenditure in general, providing
assurance also where those measures are outsourced.

2.2.2.     Information concerning the
internal control system set up

Paying agencies and delegated control bodies at Member State level form the control system.

MS annual reports on controls and checks, based on those already in
use for the current SFS and SMS, will be necessary, to provide details on the
administrative management and on-the-spot checks implemented.

Moreover, the internal management and control system will make use
of the monitoring and evaluation reports from Member States and of the EU-wide
evaluation. Finally, an EU scientific expert group will provide MS and the Commission
with advice on implementation, monitoring and evaluation.

2.2.3.     Estimate of the costs and
benefits of the controls and assessment of the expected level of risk of error

The school scheme will be covered by the existing system of
management and control for EAGF expenditure.

It is considered that the proposal will not lead to an increase in
the error rate for the EAGF.

2.3.        Measures to prevent fraud
and irregularities

The Horizontal Regulation on the financing, management, and
monitoring of the CAP will apply.

In general, control systems provide for exhaustive administrative
controls of 100% of aid requests, cross-checks with other databases where this
is considered appropriate, as well as on-the-spot checks before payment for a
minimum number of transactions, depending on the risk associated to the regime
in question. If these checks reveal a high number of irregularities, additional
checks must be carried out.

The legislative package to reform the CAP further provides that
Member States shall prevent, detect and correct irregularities and fraud,
impose effective, proportionate and dissuasive penalties, in accordance with
Union legislation or national law and recover any irregular payments plus
interests. It includes an automatic clearance mechanism for irregularity cases,
which provides that where the recovery has not taken place within four years
from the date of the recovery request, or within eight years if legal
proceedings are initiated, the amounts not recovered shall be borne by the Member State concerned. This mechanism strongly encourages Member States to recover
irregular payments as quickly as possible.

At the initial stage of the new scheme and although a formal EU
approval is not foreseen for the MS strategies, provisions on their content
(and possibly a template) will allow for possible early fraud risk
identification and prevention.

During the implementation, requests for legal interpretation or
advice from the Commission and/or the EU scientific expert group will also help
MS to avoid fraud.

In addition, ex post checks and a robust follow-up of any
allegations of fraudulent abuse of the scheme will be performed.

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

|| Diff./non-diff. ([6]) || from EFTA countries[7] || from candidate countries[8] || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation

2 || 05 02 08 12 – School Fruit Scheme || non-diff. || NO || NO || NO || NO

2 || 05 02 12 08 – School Milk || non-diff. || NO || NO || NO || NO

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

|| Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation

|| NA || || NO || NO || NO || NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

Heading of multiannual financial framework || 2 || Sustainable growth: natural resources

|| DG: AGRI || || || || 2014[9] || || 2016[10] || 2017 || 2018 || 2019 || 2020 || TOTAL ||

|| Ÿ Operational appropriations || || || || || || || || || ||

|| 05 02 08 12- School Fruit Scheme || Commitments || (1) || || 122 || || 0 || 0 || 0 || 0 || 0 || 0 ||

|| Payments || (2) || || 122 || || 0 || 0 || 0 || 0 || 0 || 0 ||

|| 05 02 12 08 – School Milk[11] || Commitments || (1a) || || 75 || || 0 || 0 || 0 || 0 || 0 || 0 ||

|| Payments || (2a) || || 75 || || 0 || 0 || 0 || 0 || 0 || 0 ||

|| TOTAL appropriations || Commitments || =1+1a || || 197 || || 0 || 0 || 0 || 0 || 0 || 0 ||

|| Payments || =2+2a || || 197 || || 0 || 0 || 0 || 0 || 0 || 0 ||

|| Ÿ TOTAL operational appropriations || Commitments || (4) || || 197 || || 0 || 0 || 0 || 0 || 0 || 0

|| Payments || (5) || || 197 || || 0 || 0 || 0 || 0 || 0 || 0

|| Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || 0 || || 0 || 0 || 0 || 0 || 0 || 0

|| TOTAL appropriations for HEADING 2 of the multiannual financial framework || Commitments || =4+ 6 || || 197 || || 0 || 0 || 0 || 0 || 0 || 0

|| Payments || =5+ 6 || || 197 || || 0 || 0 || 0 || 0 || 0 || 0

Heading of multiannual financial framework || 5 || " Administrative expenditure " ||

EUR million

|| || || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

DG: AGRI || || ||

Ÿ Human resources || 0 || 0 || 0 || 0 || 0 || 0

Ÿ Other administrative expenditure || 0 || 0 || 0 || 0 || 0 || 0

TOTAL DG AGRI || Appropriations || 0 || 0 || 0 || 0 || 0 || 0

TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0 || 0 || 0 || 0 || 0 || 0

EUR million

|| || || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0 || 0 || 0 || 0 || 0 || 0

Payments || 0 || 0 || 0 || 0 || 0 || 0

3.2.2.     Estimated impact on
operational appropriations

– 
X       The proposal/initiative does not require
the use of operational appropriations

– 
 ̈      The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million

Indicate objectives and outputs || || || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

REALISATIONS (outputs) ||

Type[12] || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost

SPECIFIC OBJECTIVE || To improve access to food for sensitive social groups ||

Output || N° of accompanying measures || || || || || || || || || || || || ||

Output || N° of children in accompanying measures || || || || || || || || || || || || ||

Output || N° of agri-related accompanying measures || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || ||

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

– 
 ̈      The proposal/initiative does not require the use of
appropriations of an administrative nature

– 
X       The
proposal/initiative requires the use of appropriations of an administrative
nature, as explained below:

EUR million

|| 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || ||

Human resources || 0 || 0 || 0 || 0 || 0 || 0

Other administrative expenditure || 0 || 0 || 0 || 0 || 0 || 0

Subtotal HEADING 5 of the multiannual financial framework || 0 || 0 || 0 || 0 || 0 || 0

TOTAL || 0 || 0 || 0 || 0 || 0 || 0

The human resources
appropriations required will be met by appropriations from the DG that are
already assigned to management of the action and/or have been redeployed within
the DG, together if necessary with any additional allocation which may be
granted to the managing DG under the annual allocation procedure and in the
light of budgetary constraints.

3.2.3.2.  Estimated requirements of
human resources

– 
 ̈      The proposal/initiative does not require the use of human
resources.

– 
X       The
proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time
equivalent units

|| 2016 || 2017 || 2018 || 2019 || 2020

XX 01 01 01 (headquarters and Commission's representatives) || 4 || 4 || 4 || 4 || 4

XX 01 01 02 (Delegations) || || || || ||

XX 01 05 01 (Indirect research) || || || || ||

10 01 05 01 (Direct reserach) || || || || ||

XX 01 02 01 (CA, SNE, INT from the "global envelope") || || || || ||

XX 01 02 02 (CA, LA,SNE, INT and JED in the delegations) || || || || ||

XX 01 04 yy || - at headquarters || || || || ||

- delegations || || || || ||

XX 01 05 02 (CA,SNE, INT – indirect research) || || || || ||

10 01 05 02 (CA,SNE, INT – direct research) || || || || ||

Other budget lignes ( specify) || || || || ||

TOTAL (*) || 4 || 4 || 4 || 4 || 4

XX is the policy area
or budget title concerned.

The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.

Description of
tasks to be carried out:

Officials and temporary staff || Managing legislation, policy making, economic analysis and advice, inter-service coordination and consultation, internal communication and public information, institution representation and negotiation, statistical data handling,

External staff ||

3.2.4.     Compatibility with the
current multiannual financial framework

– 
X       Proposal/initiative
is compatible with the current multiannual financial framework.

– 
 ̈      Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

– 
 ̈      Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.

3.2.5.     Third-party contributions

– 
The proposal/initiative does not provide for
co-financing by third parties.

– 
X The
proposal/initiative provides for the co-financing estimated below:

The Union financial contribution for this scheme is indicated in
point 3 of Article 1 of the draft regulation. In addition, the level of Union
aid (flat rate) towards the cost of the portion for fruit and vegetable and
milk will be decided by delegated acts.

The level of the EU contribution towards the cost of products will
be limited through a maximum EU aid per portion for products of both fruit
& vegetables and milk. Member States will have the option to provide
national top-ups or to attract private funding in order to enlarge the scope
and/or intensity of their intervention of the school schemes. At this stage it
is not possible to quantify the total amount of third parties' contribution, in
view of the diversity of third parties (public and/or private) and in the
absence of the relevant information at present.

3.3.        Estimated impact on
revenue

– 
X       Proposal/initiative
has no financial impact on revenue.

– 
 ̈      Proposal/initiative has the following financial impact:

 ̈         on own resources

 ̈         on miscellaneous revenue

[1]               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 (OJ L 346,
20.12.2013, p.12).

[2]               Regulation (EU) No 1308/2013 of the European Parliament
and of the Council of 17 December 2013 establishing a common market
organisation of the markets in agricultural products and repealing Council
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No
1234/2007 (OJ L 347, 20.12.2013, p. 671).

[3]               ABM: activity-based management – ABB: activity-based
budgeting.

[4]               As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.

[5]               Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[6]               Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.

[7]               EFTA: European Free Trade Association.

[8]               Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[9]               The Budget 2014 amounts are given for information
only.

[10]             For comparison reasons, the implementation is assumed
to start in 2016. Moreover, the increase in the envelope for school fruit
agreed in the CAP reform (Council Regulation (EU) No 1370/2013 determining
measures on fixing certain aids and refunds related to the common organisation
of the markets in agricultural products) will be implemented as from school
year 2014/2015 and the amount is assumed to be used in full.

[11]             For the milk scheme, the proposal foresees to fix an
envelope of EUR 80 million per school year. This corresponds to the expected
level of budget execution and is in line with the overall amounts for
market-related expenditure and direct aids taken into account in the
Multiannual Financial Framework 2014-2020.

[12]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).