1999R2759 — EN — 21.12.2002 — 003.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No2759/1999
of22December 1999
laying down rules for the application of Council Regulation (EC) No 1268/1999 on Community
supportfor pre-accession measures for agriculture and rural development in the applicant coun-
triesofcentral andeasternEuropeinthepre-accessionperiod
(TextwithEEArelevance)
(OJ L 331, 23.12.1999, p. 51)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 2356/2000 of 24 October 2000 L 272 13 25.10.2000
►M2Commission Regulation (EC) No 2251/2001 of 20 November 2001 L 304 6 21.11.2001
►M3Commission Regulation (EC) No 2251/2002 of 17 December 2002 L 343 8 18.12.2002
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COMMISSIONREGULATION(EC)No2759/1999
of22December 1999
laying down rules for the application of Council Regulation (EC)
No 1268/1999 on Community support for pre-accession measuresfor agriculture and rural development in the applicant countries
ofcentralandeasternEuropeinthepre-accessionperiod
(TextwithEEArelevance)
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 1268/1999 of 21 June
1999 on Community support for pre-accession measures for agricultureand rural development in the applicant countries of central and easternEurope in the pre-accession period(
1), and in particular Articles 9(2)
and 12(1) (1) thereof,
Whereas:
(1)the Community pre-accession measures for agriculture and rural
development in the applicant countries of central and easternEurope (hereinafter referred to as ‘SAPARD’) as provided for
in Regulation (EC) No 1268/1999 shall relate in particular to
contributing to the implementation by the applicant countries oftheacquis communautaire concerning the common agricultural
policy and related policies, as well as solving priority andspecific problems for the adaptation of the agricultural sector
and rural areas in the applicant countries;
(2)the support granted pursuant to SAPARD should take into
account in particular its effect on the protection of the environ-ment and on the sustainable development of the economies ofthe applicant country concerned and the principles of socialcohesion policies; Community support should not replacefunding available in eachapplicant country and sh all comple-
ment corresponding national actions or contribute to these;
(3)in this framework, as a general principle, support shall be
granted according to the rules in force for Community ruraldevelopment support, and, in particular, according to the mainobjectives and instruments laid down in Council Regulation(EC) No 1257/1999 of 17 May 1999 on support for rural devel-
opment from the European Agricutural Guidance and Guarantee
Fund (EAGGF) and amending and repealing certain Regula-tions(
2) and Commission Regulation (EC) No 1750/1999(3)
laying down detailed rules for the application of the aforemen-tioned Regulation;
(4)particular measures referred to in Article 2 of Regulation (EC)No 1268/1999 are similar to measures referred to in Regulation
(EC) No 1257/1999 and should therefore be implemented by the
applicant countries as far as possible in accordance withth eprinciples for implementing those measures in the Community;reference should be made to the conditions to be applied inrespect of those measures;
(5)in order to remedy the structural deficiencies affecting the
supply and marketing of agricultural products resulting from
insufficient producer organisation in the applicant countries,support is necessary to encourage the setting up of producergroups; for this purpose, support should be granted for the tran-sitional pre-accession period according to the Communityrelevant principles, deviating from and complementing them1999R2759 — EN — 21.12.2002 — 003.001 — 2
(1) OJ L 161, 26.6.1999, p. 87.
(2) OJ L 160, 26.6.1999, p. 80.
(3) OJ L 214, 13.8.1999, p. 31.
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where this is necessary to address the particular situations in the
applicant countries;
(6)other measures mentioned in Article 2 of Regulation (EC) No1268/1999 may be eligible for Community support providedthat they form part of the programme approved by the Commis-
sion;
(7)the rules for eligibility of expenditure under SAPARD should
take into account the period in which Regulation (EC) No
1268/1999 applies, as well as the requirement of a minimum
period in which the undertakings have to remain substantiallyunmodified in order to attain their purpose; specific conditionsof eligibility of expenditure should be agreed upon in the frame-work of bilateral agreements between the Community and the
different applicant countries;
(8)the implementation of SAPARD should be carried out according
to the management guidelines laid down in Council Regulation
(EC) No 1260/1999 of 21 June 1999 laying down general provi-
sions on the Structural Funds(1); according to Article 5(2) of
Regulation (EC) No 1268/1999, the Commission and the appli-cant country shall jointly agree on the procedures concerningthe monitoring of the implementation of the programme, it isnevertheless necessary to define the indicators used in this proce-
dure; for this exercise the indicators set forth in Regulation (EC)
No 1260/1999 should be taken into account;
(9)whereas assistance from the Community support for pre-acces-sion measures for agriculture and rural development in theapplicant countries of central and eastern Europe in the pre-accession period together with assistance from the Communityunder Council Regulation (EC) No 1267/1999 of 21 June 1999establishing an Instrument for Structural Policies for Pre-acces-
sion(
2) should be coordinated within the framework of Council
Regulation (EC) No 1266/1999 of 21 June 1999 on coordinatingaid to the applicant countries in the framework of the pre-acces-sion strategy and amending Regulation (EEC) No 3906/89(
3);
(10)the measures provided for in this Regulation are in accordancewith the opinion of the Agricultural Structures and Rural Devel-opment Committee,
HAS ADOPTED THIS REGULATION:
Article 1
Objective
This Regulation lays down rules for the application of Regulation (EC)
No 1268/1999 on Community support for pre-accession measures foragriculture and rural development in the applicant countries of centraland eastern Europe in the pre-accession period.
Article 2
Investmentsinagricultural holdings
1. Support may be granted for agricultural investments according to
the conditions foreseen in Title II, Chapter I of Regulation (EC) No1257/1999 with the exception of Article 7 of that chapter.
2. Support for investment shall be granted to agricultural holdings:
— which comply with the national minimum standards regarding the
environment, hygiene and animal welfare at the time when the deci-sion to grant support is taken, and1999R2759 — EN — 21.12.2002 — 003.001 — 3
(1) OJ L 161, 26.6.1999, p. 1.
(2) OJ L 161, 26.6.1999, p. 73.
(3) OJ L 161, 26.6.1999, p. 68.
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— for which economic viability at the end of the realisation of the
investment shall be demonstrated.
However, where acquis-related minimum standards regarding the envir-
onment, hygiene and animal welfare have been newly introduced at thetime the application is received, the decision to grant support will beconditional on the holding meeting these new standards by the end of
the realisation of the investment.
3. Eachapplicant country sh all set limits for total investment
eligible for support as well as acceptable standards regarding farmers'occupational skill and competence in order to be eligible for support.
Article 3
Improving the processing and marketing of agricultural and
fisheryproducts
1. Support may be granted for investments provided for in Articles
25 and 26 of Regulation (EC) No 1257/1999 relating to improving the
processing and marketing of the agricultural including fishery productsincluded in Annex I to the Treaty. Agricultural products, excludingfishery products, must originate in applicant countries or the Commu-nity. Investments at the retail level shall be excluded from support.
2. Eligible expenditure may include:
(a) the construction and acquisition of immovable property, with the
exception of land purchase;
(b) new machinery and equipment including computer software;
however on a case-by-case basis the Commission may agree oneligibility of second-hand equipment subject to specific safeguards
in particular concerning provenance and technical specification;
(c) general costs, suchas arch itects', engineers' and Consultants' fees,
feasibility studies, acquisition of patents and licences, in addition
to expenditure as referred to in (a) and (b) and up to a ceiling of
12 % of that expenditure.
Article 4
Agri-environment
Support may be granted for actions foreseen in Title II, Chapter VI of
Regulation (EC) No 1257/1999, and taking account of the conditionsincluded therein, provided that they concern actions at the pilot level.
Such actions shall have the objective of developing practical experi-
ence of agri-environment implementation at bothth e administrativeand farm levels.
Article 5
1. Support for vocational training may be granted to contribute to
the improvement of the occupational skill and competence of farmers
and other persons involved in agricultural activities and forestry activ-ities and their conversion. In addition, support may be granted for thevocational training of other persons potentially engaged in activitieseligible to any other measure in the Programme, except those referred
to in the last indent of Article 2 of Regulation (EC) No 1268/1999.
2. Support for vocational training shall not include courses of
instruction or training which form part of normal programmes orsystems of education at secondary or higher levels.1999R2759 — EN — 21.12.2002 — 003.001 — 4
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Article 6
Producer groups
1. Support may be granted to encourage the setting-up, and to facil-
itate the administrative operation, of producer groups, during the first
five years following the date of their recognition.
2. This Article shall apply to producer groups set up for the purpose
of jointly adapting the production and output of the producers who aremembers of suchgroups to market requirements, and, of jointly placinggoods on the market, including centralisation of sale, preparation forsale, and supply to bulk buyers, and, of establishing common rules on
production information, withparticular regard to h arvesting and avail-
ability, and which have been formally recognised by an applicantcountry.
3. Support granted to producer groups recognised after 1 January
2000 for the first five years following the date on which they arerecognised, shall be granted towards the costs of setting up and runningthe producer organisation, at a flat rate.
4. The aid referred to in paragraph 3 shall be determined for each
producer organisation on the basis of its annual marketed productionand shall not exceed:
(a) amount for the first, second, third, fourth and fifth years to 5 %,
5 %, 4 %, 3 % and 2 % respectively of the value marketed produc-
tion up to EUR 1 000 000, and
(b) amount for the first, second, third, fourth and fifth years, to 2,5 %,
2,5 %, 2,0 %, 1,5 % and 1,5 % respectively of the values of
marketed production exceeding EUR 1 000000,
(c) be subject to a ceiling for eachproducer organisation of:
— EUR 100000 for the first year,
— EUR 100000 for the second year,— EUR 80 000 for the third year,— EUR 60 000 for the fourth year,— EUR 50 000 for the fifth year,
and shall be paid in annual instalments.
Article 7
Forestry
1. Support may be granted for the actions provided for in Articles
29 and 30 of Regulation (EC) No 1257/1999 and subject to the condi-tions set out in those articles.
However, support to restore forestry production potential may only be
granted where the Commission determines that an exceptional natural
disaster, irrespective of cause, has occurred.
2. Support shall be granted for the afforestation of agricultural land
provided that such planting is adapted to local conditons and is compa-tible withth e environment.
Support may in addition to planting costs include an annual premium
per hectare afforested to cover maintenance costs for a period of up to
five years.
3. Support for the afforestation of agricultural land undertaken by
public authorities shall cover only the costs of establishment.
4. Support for the afforestation of agricultural land shall not be
granted in respect of the planting of Christmas trees.
5. In the case of fast-growing species cultivated in the short term,
support for afforestation shall be granted for planting costs only.1999R2759 — EN — 21.12.2002 — 003.001 — 5
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Article 8
Eligibility andaidintensity
1. Expenditure in respect of actions under measures described in
Articles 2 to 7 of this Regulation and of any other measure mentionedin Article 2 of Regulation (EC) No 1268/1999 shall be eligible forCommunity support only if those actions form part of the programmefor agriculture and rural development approved in accordance withArticle 4(5) of Regulation (EC) No 1268/1999.
2. Only expenditure paid by the Agency from the date of the
Commission decision conferring financial management on that Agency,or the date(s) specified therein, shall be eligible for Communitysupport. For a project to be eligible for Community support, allservices, works, machinery and supplies shall originate in the Commu-nity or in the applicant countries; if so requested, the final beneficiary
shall be able to establish the origin of the inputs into works or service
contracts, using any admissible means of evidence.
The final date for the eligibility of commitment shall be the end of the
financial year 2006 or the date of accession of the relevant applicantcountry, whichever is the earlier.
3. Any operation shall remain eligible only if it does not within five
years from the date of the authorisation of the payment by the applicantcountry's paying agency undergo a substantial modification:
(a) affecting its nature or its implementation conditions or giving to a
firm or public body an undue advantage; and
(b) resulting either from a change in the nature of ownership in an item
of infrastructure or a cessation or change in location in a productiveactivity.
4. For the application of Article 8(2) of Regulation (EC) No 1268/
1999:
(a) ‘revenue generating investments’ include all investments, except
those in infrastructure which do not generate substantial netrevenue;
(b) ‘public aid’ means all such aid whether or not granted under the
programme.
Article 9
Managingauthority
The Commission shall ensure that each applicant country sets up and
operates, to the best standards, a managing authority which is respon-sible for the efficient and correct management of the programme.
Article 10
Monitoringindicators
The specific physical, environmental and financial indicators applied in
the monitoring of the implementation of the programme shall take into
account the elements mentioned in Article 36 of Regulation (EC) No
1260/1999.
Article 11
Annualandfinalreports
The annual reports mentioned in Article 5(2) of Regulation (EC) No
1268/1999 shall, in addition to the elements mentioned in Article 371999R2759 — EN — 21.12.2002 — 003.001 — 6
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of Regulation (EC) No 1260/1999 applicable as appropriate, contain
the physical indicators per measure.
Article 12
Evaluations
The appraisals and evaluation referred to in Article 5 of Regulation
(EC) No 1268/1999 shall be carried out taking account of the proce-
dures for evaluation provided in Title IV, Chapter III of Regulation
(EC) No 1260/1999 and Chapter III, Section 5 of Regulation (EC) No1750/1999.
Article 13
Finalprovisions
The detailed conditions for support and eligibility of expenditure on the
basis of this Regulation, taking into account the Commission guidelinesset for the Member States, will be laid down in bilateral agreementsconcluded between the Commission, on behalf of the European
Community, and eachapplicant country.
This Regulation shall enter into force on the seventh day following that
of its publication in the Official Journal of the European Communities .
It shall apply in relation to Community support as from 1 January
2000.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.1999R2759 — EN — 21.12.2002 — 003.001 — 7