1997R0723 — EN — 08.11.2001 — 001.001 — 1
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►B COUNCILREGULATION(EC)No723/97
of22April1997
on the implementation of Member States' action programmes on control of EAGGF Guarantee
Sectionexpenditure
(OJ L 108, 25.4.1997, p. 6)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 2136/2001 of 23 October 2001 L 288 1 1.11.2001
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COUNCILREGULATION(EC)No723/97
of22April1997
on the implementation of Member States' action programmes on
controlofEAGGFGuaranteeSectionexpenditure
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular Article 43 thereof,
Having regard to the proposal from the Commission(
1),
Having regard to the opinion of the European Parliament(2),
WhereasArticle 8 of Council Regulation (EEC) No 729/70 of 21 April
1970 on the financing of the common agricultural policy(3) laysdown
that Member States are to take the measures necessary to satisfy them-selves that transactions financed by the European Agricultural
Guidance and Guarantee Fund, (EAGGF) are actually carried out and
are executed correctly, prevent and deal with irregularitiesand recoversums lost as a result of irregularities or negligence;
Whereasthe part-financing introduced by Council Regulation (EEC)
No 307/91 of 4 February 1991 of reinforcing the monitoring of certain
expenditure chargeable to the Guarantee Section of the European Agri-
cultural Guidancee and Guarantee Fund(
4) lapsed at the end of the
1995 financial year for the first twelve Member States and will do soat the end of the 1997 financial year for the three new Member States;
Whereas the Commission has sent a report to the Council on the imple-
mentation of Regulation (EEC) No 307/91 during the period 1991 to
1993, expressing the view that the Member States should continue to
receive financial assistance for the monitoring of expenditure charge-able to the EAGGF Guarantee Section, in view of the Communityfinancial interest at stake;
Whereas provision should be made, for a certain period and within the
limit of the appropriationsavailable, for Community financing for
Member States' action programmes in the field of control of expendi-
ture involving measures to amend or improve their monitoringstructures or make them more effective;
Whereasthe programmesmus t have a number of featuresenabling the
Commission, with full knowledge of the facts, to evaluate the measures
proposed by the Member States;
Whereasthe programmesmay be of a multiannual nature; whereas , it
isappropriate therefore that information relating to the annual ins tal-ments to be presented by Member States each year should be specified;
Whereas provision should be made for consultation of the Fund
committee on the annual instalments which may qualify for Commu-
nity financing;
Whereas it should be specified that the Commission is to set the
maximum amount of the Community contribution for each annualinstalment;
Whereas systems of control and direct elctronic information exchange
between the Member States and the Commission covering the control
of certain expenditure should be maintained and developed;
Whereasiss hould be laid down that the financing provided for in this
Regulation cannot be combined with other Community financing;1997R0723 — EN — 08.11.2001 — 001.001 — 2
(1) OJ No C 336, 14. 12. 1995, p. 3.
(2) OJ No C 117, 22. 4. 1996, p. 51.
(3) OJ No L 94, 28. 4. 1970, p. 13. Regulation aslas t amended by Regulation
(EC) No 1287/95 (OJ No L 125, 8. 6. 1995, p. 1).
(4) OJ No L 37, 9. 2. 1991, p. 5. Regulation asamended by Regulation (EC) No
3235/94 (OJ No L 338, 28. 12. 1994, p. 16).
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Whereas, since the provisions laid down in this Regulation concern the
EAGGF, Guarantee Section, the expenditure covered by Communityco-financing should be regarded as intervention within the meaning of
Article 3 of Regulation (EEC) No 729/70,
HAS ADOPTED THIS REGULATION:
Article 1
1. The Community shall contribute towards the costs incurred by
Member States in implementing new action programmes, arising outof new Community obligations, approved by the Commission andaimed at improving the structures or effectiveness of EAGGF Guar-antee Section expenditure controls.
2. The measures provided for in the programmes referred to in para-
graph 1 may cover initial expenditure on the creation or reorganization
of inspection sevices, including the redeployment or recruitment of
inspectors and their assignments, the purchase or hire of equipmentand facilitiesrequired for the performance of controls , the organizationof training and briefing and any other appropriate meansof reinforcingthe effectiveness of controls.
Article 2
1. Member States shall submit the action programmes for which
they wish to receive Community financing to the Commission not laterthan 1 June of the calendar year preceding that of the start of theirimplementation. Programmes presented after 1 June cannot be consid-ered.
However, for programmesrelating to the year 2002, the time limit for
submission of action programmes to the Commission shall be 31January 2002.
2. Programmesmay be multiannual and mus t include the following
information:
— description and analysis of the situation at the outset as regards
inspectors and equipment,
— objectivesof the planned action,
— schedule for implementation of measures,
— detailed description of the work for which financing is requested,
— estimate of costs of each type of action and, additionally, in the
case of multiannual programmes, annual financial estimates,
— cost/benefit analysis of the measure.
3. The Commission shall examine the programmes presented by the
Member States. It may request any additional information it deemsnecessary for assessing the programmes.
Article 3
1. From the second year onwards, Member States having presented
action programmesin accordance with Article 2 s hall communicate to
the Commission before 1 June information regarding the annual instal-ment which isto be implemented for the following year, and inparticular:
(a) a detailed description of the work planned for the year concerned
and a detailed estimate of costs;
(b) a preliminary assessment of the measures implemented during the
previousyear and, where appropriate, a propos al to amend the
initial programme.
2. The annual instalment of the action programme shall be imple-
mented between 1 January and 31 December of each year.1997R0723 — EN — 08.11.2001 — 001.001 — 3
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Article 4
1. The Community financial contribution shall be granted per
calender year, for a period of ►M1seven consecutive years ◄,
starting from 1997.
It shall be granted within the limit of the annual appropriations author-
ized by the budget authority in the light of the financial perspective.
2. After consulting the Fund Committee referred to in Article 11 of
Regulation (EEC) No 729/70, the Commission shall, for each annualinstalment, set the maximum amount of the Community financialcontribution having regard to the appropriationsand on the bas isofthe information supplied by the Member State.
When the annual amounts as referred to in the first subparagraph are
set, preference shall be given to multiannual programmes which have
already received Community part-financing pursuant to this Regulation,with particular account being taken of the extent to which previousannual instalments have been utilized.
Subject to the fourth subparagraph, the Community's financial partici-
pation rate shall be 50 % of payments made by the Member States inthe financial year towardseligible expenditure within the meaning of
Article 1.
If the total eligible expenditure exceedsthe financial res ourcesavail-
able, the Community'sfinancial participation rate referred to in thethird subparagraph shall be reduced accordingly.
3. The Commission may undertake work for the maintenance and
development of systems of control and direct electronic informationexchange between the Member Statesand its elf.
Article 5
Expenditure which iseligible for Community financing under other
Regulationsand in particular:
— Council Regulation (EC) No 165/94 of 24 January 1994 concerning
the co-financing by the Community of remote sensing checks andamending Regulation (EEC) No 3508/92 establishing an integratedadministration and control system for certain Community aidschemes(
1),
and, asregardsthe three new Member States :
— Council Regulation (EEC) No 4045/89 of 21 December 1989 on
scrutiny by Member States of transactions forming part of thesystem of financing by the Guarantee Section of the European Agri-cultural Guidance and Guarantee Fund and repealing Directive 77/435/EEC(
2),
— Regulation (EEC) No 307/91,
shall not be eligible under this Regulation.
Article 6
Detailed rulesfor the application of thisRegulation s hall be adopted in
accordance with the procedure laid down in Article 13 of Regulation(EEC) No 729/70.1997R0723 — EN — 08.11.2001 — 001.001 — 4
(1) OJ No L 24, 29. 1. 1994, p. 6. Regulation asamended by Regulation (EC)
No 3235/94 (OJ No L 338, 28. 12. 1994, p. 16).
(2) OJ No L 388, 30. 12. 1989, p. 18. Regulation asamended by Regulation
(EC) No 3235/94 (OJ No L 338, 28. 12. 1994, p. 16).▼M1
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Article 7
Asfrom the s econd year of application of thisRegulation, an annual
assessment shall be included in the annual financial report referred to
in Article 10 of Regulation (EEC) No 729/70.
After the fifth year, the Commission shall report to the Council on the
results of the application of this Regulation, on the basis of assessmentreportsprepared by the Member Statesand containing information onthe effectiveness of the programmes implemented.
Article 8
Expenditure subject to Community financing shall be deemed to be
intervention within the meaning of Article 3 (1) of Regulation (EEC)No 729/70.
Article 9
This Regulation shall enter into force on the seventh day following that
of itspublication in the Official Journal of the European Communities .
ThisRegulation s hall be binding in itsentirety and directly applicable
in all Member States.1997R0723 — EN — 08.11.2001 — 001.001 — 5