1999R1260 — EN — 01.01.2000 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC)No 1260/1999
of 21 June 1999
laying down general provisions on the Structural Funds
(OJ L 161, 26.6.1999, p. 1)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 1447/2001 of 28 June 2001 L 198 1 21.7.2001
▼B
COUNCIL REGULATION (EC)No 1260/1999
of 21 June 1999
laying down general provisions on the Structural Funds
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and
in particular Article 161 thereof,
Having regard to the proposal from the Commission(1),
Having regard to the assent of the European Parliament(2),
Having regard to the opinion of the Economic and Social Committee(3),
Having regard to the opinion of the Committee of the Regions(4),
(1)Whereas Article 158 of the Treaty states that, in order to
strenghten its economic and social cohesion, the Community shall
aim at reducing disparities between the levels of development of
the various regions and the backwardness of the least-favouredregions or islands, including rural areas; whereas Article 159provides for that action to be supported through the StructuralFunds, the European Investment Bank (EIB) and the otherexisting financial instruments;
(2)Whereas Article 19 of Council Regulation (EEC) No 2052/88 of24 June 1988 on the tasks of the Structural Funds and theireffectiveness and on coordination of their activities betweenthemselves and with the operations of the European Investment
Bank and the other existing financial instruments(
5), requires the
Council to re-examine that Regulation on the basis of aCommission proposal before 31 December 1999; whereas, inorder to improve the transparency of Community legislation, it isdesirable to bring together all the provisions concerning the
Structural Funds into a single Regulation and to repeal Regulation
(EEC) No 2052/88 and Council Regulation (EEC) No 4253/88 of19 December 1988 laying down provisions for implementingRegulation (EEC) No 2052/88 as regards the coordination of theactivities of the different Structural Funds, on the one hand,between themselves and with the operations of the European
Investment Bank and the other existing financial instruments, on
the other hand(
6);
(3)Whereas, by virtue of Article 5 of Protocol 6 on specialprovisions for Objective 6 in the framework of the Structural
Funds in Finland and Sweden, attached to the Act of Accession of
Austria, Finland and Sweden, the provisions of that Protocolshould be re-examined before the end of 1999, simultaneouslywith Regulation (EEC) No 2052/88;
(4)Whereas in order to increase the concentration and simplify theoperation of the Structural Funds the number of priorityobjectives should be reduced as compared with Regulation(EEC) No 2052/88; whereas those objectives should be redefinedas promoting the development and structural adjustment ofregions whose development is lagging behind, economic and
social conversion of areas facing structural difficulties and
adapting and modernising policies and systems of education,training and employment;1999R1260 — EN — 01.01.2000 — 001.001 — 2
(1) OJ C 176, 9.6.1998, p. 1.
(2) Assent delivered on 6 May 1999 (not yet published in the Official Journal).
(3) OJ C 407, 28.12.1998, p. 74.
(4) OJ C 373, 2.12.1998, p. 1.
(5) OJ L 185, 15.7.1988, p. 9. Regulation as last amended by Regulation (EC)
No 3193/94 (OJ L 337, 24.12.1994, p. 11).
(6) OJ L 374, 31.12.1988, p. 1. Regulation as last amended by Regulation (EC)
No 3193/94.
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(5)Whereas in its efforts to strengthen economic and social cohesion
the Community also seeks to promote the harmonious, balanced
and sustainable development of economic activities, a high levelof employment, equality between men and women and a highlevel of protection and improvement of the environment; whereasthose efforts should in particular integrate the requirements ofenvironmental protection into the design and implementation of
the operations of the Structural Funds and help to eliminate
inequalities and promote equality between men and women;whereas the Funds' operations may also make it possible tocombat any discrimination on the grounds of race, ethnic origin,disability or age by means in particular of an evaluation of needs,
financial incentives and an enlarged partnership;
(6)Whereas cultural development, the quality of the natural and the
man-made environment, the qualitative and cultural dimension of
life and the development of tourism contribute to making regions
economically and socially more attractive in so far as theyencourage the creation of sustainable employment;
(7)Whereas the European Regional Development Fund (ERDF) isthe primary contributor to attaining the objective of promoting thedevelopment and structural adjustment of the regions whosedevelopment is lagging behind and economic and socialconversion of areas facing structural difficulties;
(8)Whereas the tasks of the European Social Fund (ESF) should beadjusted in order to take account of and to implement theEuropean employment strategy;
(9)Whereas the structural aspects of the common fisheries policyhave been integrated as a full structural policy under the rulesgoverning the Structural Funds since 1993; whereas implementa-tion should continue under the Structural Funds through the
Financial Instrument for Fisheries Guidance (FIFG); whereas
assistance from FIFG in Objective 1 shall form part of theprogramming of this Objective and the assistance outsideObjective 1 shall be subject to a single programme in eachMember State concerned;
(10)Whereas the Community has undertaken a reform of the commonagricultural policy which includes structural and accompanyingmeasures for promoting rural development; whereas in this
context the Guidance Section of the European Agricultural
Guidance and Guarantee Fund (EAGGF) should continue tocontribute to attaining the priority objective of the developmentand structural adjustment of the regions whose development islagging behind, by improving the efficiency of the structures ofproduction, processing and marketing of agricultural and forest
products and developing local potential in rural areas; whereas the
EAGGF Guarantee Section contributes to attaining the priorityobjective of economic and social conversion of areas facingstructural difficulties, in accordance with Council Regulation(EC) No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Guidance and
Guarantee Fund (EAGGF) and amending and repealing certainRegulations(
1);
(11)Whereas the specific rules applicable to each Fund are to be setoutintheimplementing DecisionsadoptedpursuanttoArticles37,148 and 162 of the Treaty;
(12)Whereas the criteria for designating eligible regions and areasshould be specified; whereas, to this end, it is appropriate that theidentification of the priority regions and areas at Community levelshould be based on the common system of classification of theregions, referred to as the ‘Nomenclature of Territorial StatisticalUnits (NUTS)’ established by the Statistical Office of the1999R1260 — EN — 01.01.2000 — 001.001 — 3
(1) OJ L 160, 26.6.1999, p. 80.
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European Communities in cooperation with the national institutes
for statistics;
(13)Whereas regions whose development is lagging behind should bedefined as those whose per capita GDP is less than 75 % of the
Community average; whereas, in order to ensure an effective
concentration of assistance, the Commission should apply thiscriterion strictly, using objective statistical data; whereas theoutermost regions and areas with a very low population densitycovered by Objective 6 as set out in Protocol 6 attached to the Act
of Accession of Austria, Finland and Sweden for the period 1995
to 1999 should also be covered by Objective 1 under thisRegulation;
(14)Whereas the areas undergoing economic and social conversionshould be defined as those which include areas undergoing socio-economic change in the industrial and service sectors, decliningrural areas, urban areas in difficulty and depressed areas
dependent on fisheries; whereas this assistance should be properly
concentrated on the most seriously affected parts of theCommunity; whereas these areas should be designated by theCommission acting on a proposal from the Member States and inclose concertation with them;
(15)Whereas, to ensure the Community nature of the operations of theFunds, the areas undergoing socio-economic change in the
industrial sector and the declining rural areas should, as far as
possible, be designated on the basis of objective indicatorsdefined at Community level; whereas, furthermore, the populationcovered by this priority objective taken over the Community as awhole, for guidance, should constitute about 10 % of the
population of the Community in the case of the industrial areas,
5 % in the case of the rural areas, 2 % in the case of the urbanareas and 1 % in the case of the fisheries areas; whereas, in orderto ensure that each Member State makes a fair contribution to theoverall effort towards concentration, the maximum possiblereduction in population covered by Obejctive 2 in 2006, set out
in this Regulation, must not exceed one third compared to the
coverage under Objectives 2 and 5b in 1999, set out in Regulation(EEC) No 2052/88;
(16)Whereas, in the interests of efficient programming, the regionswhose development is lagging behind where per capita GDP isless than 75 % of the Community average should be the same as
the areas assisted by the Member States pursuant to
Article 87(3)(a) of the Treaty and, taking account of any specificmeasures adopted pursuant to Article 299(2) of that Treaty infavour of the outermost regions (the French overseas departments,the Azores, Madeira and the Canary Islands); whereas, similarly,the areas undergoing economic and social change should
correspond to a large extent to the areas assisted by the Member
States pursuant to Article 87(3)(c) of the Treaty; whereas theobjective of the Community should be to increase consistency atthe end of the period 2000 to 2006 by an appropriate effort byMember States with regard to their current situation;
(17)Whereas the objective of adapting and modernising policies andsystems of education, training and employment is to provide
financial assistance in the regions and areas not covered by
Objective 1; whereas Objective 3 should also provide a frame ofreference to ensure consistency with all operations for humanresources in a given Member State;
(18)Whereas the ESF assistance within Objective 2 should be theregional and local actions which respond to the specific situation
in an Objective 2 area and which are coordinated with the
interventions of the other Structural Funds; whereas any ESFcontribution to an Objective 2 single programming documentmust be of sufficient size to justify its separate management, andshould therefore not amount to less than 5 % of the totalStructural Funds contribution;1999R1260 — EN — 01.01.2000 — 001.001 — 4
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(19)Whereas the regions covered by a priority objective in 1999
which no longer satisfy the eligibility criteria should receive a
gradually declining level of transitional support; whereas thissupport should be lower in 2000 than in 1999;
(20)Whereas there should be provision for allocating shares of theavailable resources; whereas these resources should be allocatedannually, being significantly concentrated on regions whosedevelopment is lagging behind, including those receivingtransitional support;
(21)Whereas total annual receipts in any Member State fromStructural Funds under this Regulation — in combination with
assistance provided under the Cohesion Fund— should be limited
under this general capping dependent on the national absorptioncapacity;
(22)Whereas the Commission should work out indicative allocationsof the available commitment appropriations under each of thepriority objectives, basing itself on appropriate objective criteria;whereas 4 % of appropriations allocated in this way to the
Member States should be allocated by the Commission at the
mid-term point; whereas, in recognition of the special efforts forthe peace process in Northern Ireland, the PEACE programmeshould continue up to 2004; whereas a special programme ofassistance for the period 2000 to 2006 shall be established for theSwedish NUTS-II regions which are not covered by the list
referred to in Article 3(2)and which meet the criteria laid downin
Article 2 of Protocol 6 to the Act of Accession for Austria,Sweden and Finland;
(23)Whereas 5,35 % of the total commitment appropriations availableshould be devoted to the Community initatives and 0,65 % toinnovative schemes and to technical assistance;
(24)Whereas the appropriations available to the Structural Fundsshould be indexed on a flat-rate basis for programming purposesand, if necessary, a technical adjustment to that indexation shouldbe made before 31 December 2003;
(25)Whereas the main principles of the 1988 reform of the StructuralFunds should continue to govern the Funds until 2006; whereas,
however, experience to date has demonstrated the need for
improvements to make these principles simpler and moretransparent; whereas effectiveness should in particular beregarded as a fundamental principle;
(26)Whereas, if the operations of the Structural Funds are to beeffective and transparent, the responsibilities of the MemberStates and of the Community should be precisely defined;
whereas those responsibilities should be specified for each stage
of programming, monitoring, evaluation and supervision;whereas, in accordance with the principle of subsidiarity, andwithout prejudice to the powers vested in the Commission,implementing and monitoring assistance should be primarily theresponsibility of the Member States;
(27)Whereas the action of the Community should be complementaryto, or intended to contribute to, the action of Member States;
whereas, in order to ensure significant added value, partnership
should be strengthened; whereas this concerns the regional andlocal authorities, the other competent authorities, including thoseresponsible for the environment and for the promotion of equalitybetween men and women, the economic and social partners and
other competent bodies; whereas the relevant partners shall be
associated in the preparation, monitoring and evaluation ofassistance;
(28)Whereas the programming process should be laid down fromoriginal conception to final beneficiary, and should be facilitatedin the Member States by broad indicative guidelines drawn up bythe Commission on relevant and agreed Community policies inrelation to the Structural Funds;1999R1260 — EN — 01.01.2000 — 001.001 — 5
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(29)Whereas programming should ensure the coordination of the
Structural Funds with one another and with the other existing
financial instruments and the EIB; whereas that coordinationextends to combining grants and loans;
(30)Whereas the activities of the Funds and the operations which theyhelp to finance must be compatible with other Communitypolicies and comply with Community legislation, and specificprovisions should be laid down; whereas in this field operations todisseminate and exploit the results of research and technological
development conducted in the context of the Structural Funds
must ensure the protection of rights relating to the obtaining andexploitation of knowledge and be carried out in accordance withCommunity rules on competition;
(31)Whereas simpler criteria and detailed rules for the verificationand implementation of the principle of additionality should belaid down;
(32)Whereas the system of programming should be simplified byfixing a uniform lifetime for programming of seven years;
whereas to that end the forms and number of assistance schemes
should be limited and should normally consist of a singleintegrated assistance for each region, by making single program-ming documents the norm for the priority objectives and byincluding major projects and global grants in the other forms ofassistance;
(33)Whereas, in order to reinforce the integrated approach todevelopment, steps should be taken — with due regard to the
specific features of the regions concerned — to ensure
consistency between the operations of the various Funds andthe Community policies, the strategy for employment, theeconomic and social policies of the Member States and theregional policies of the Member States;
(34)Whereas, in order to speed up and simplify programmingprocedures, the responsibilities of the Commission should bedistinguished from those of the Member States; whereas,
therefore, provisions should be made for the Commission, acting
on a proposal from the Member States, to adopt the strategies anddevelopment priorities that are to govern the programming as wellas the size of the financial contribution from the Community, andthe implementing arrangements linked to them, while the Member
States are to decide on their application; whereas the content of
the various forms of assistance should also be specified;
(35)Whereas such decentralised implementation of the operations ofthe Structural Funds by the Member States should providesufficient guarantees as to the details and quality of implementa-tion, the results of operations and their evaluation and soundfinancial management and its supervision;
(36)Whereas the Commission, in association with the EIB whereappropriate, should approve major investment projects whosefinancial volume exceeds a specified sum with a view to
evaluating their impact and the proposed use of Community
resources;
(37)Whereas there should be provision for operations of Communityinterest carried out at the initiative of the Commission tosupplement those implemented under the priority objectives;
(38)Whereas these Community initiatives should concentrate onpromoting cross-border, transnational and inter-regional coopera-tion (Interreg), economic and social regeneration of cities andurban neighbourhoods in crisis (URBAN), both to be financed by
the ERDF, rural development (Leader), to be financed by the
EAGGF Guidance Section, and the development of humanresources in the context of equal opportunities (EQUAL), to befinanced by the ESF; whereas the promotion of cross-bordercooperation — in particular in the perspective of enlargement,transnational and inter-regional cooperation — takes on particular1999R1260 — EN — 01.01.2000 — 001.001 — 6
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significance in this context; whereas due attention should be
given to cooperation with the outermost regions; whereas it isnecessary to reinforce the coordination of cross-border, transna-
tional and inter-regional cooperation with the measures enacted in
the context of Council Regulation (EEC) No 3906/89(
1), Council
Regulation (Euratom, EC) No 1279/96(2) and Council Regulation
(EC) No 1488/96(3), especially in view of the enlargement of the
European Union and taking account of the Europe-Mediterranean
partnership; whereas due account should be taken of the social
and vocational integration of asylum seekers in the framework ofEQUAL;
(39)Whereas the Structural Funds should provide support for studies,pilot projects and exchanges of experience in order to promoteinnovative approaches and practices through simple and trans-parent implementation;
(40)Whereas, in order to strengthen the leverage effect of Communityresources by favouring as far as possible recourse to privatesources of financing and to take better account of the profitabilityof the projects, the forms of assistance available from the
Structural Funds should be diversified and the rates of assistance
differentiated with a view to promoting the Community interest,encouraging the use of a wide range of financial resources andlimiting the contribution of the Funds by encouraging the use ofappropriate forms of assistance; whereas, to that end, reduced
rates of intervention should be established in the case of
investments in forms and infrastructure projects which generatesubstantial revenue; whereas for the purpose of this Regulation,substantial net revenue should be tentatively defined as revenuehigher than at least 25 % of the total cost of the investmentconcerned;
(41)Whereas, in accordance with the principle of subsidiarity, therules on eligible expenditure should be the relevant national rules
where there are no Community rules, although they may be laid
down by the Commission where they are clearly needed for theuniform and equitable implementation of the Structural Fundsacross the Community; whereas, however, the starting and closingdates for the eligibility of expenditure should be defined and itshould be stipulated that investment projects may not undergo
major modification; whereas consequently, in order to ensure the
efficiency and durable impact of the Funds' assistance, all or partof the assistance from a Fund should remain attached to anoperation only where its nature or its implementation conditionsdo not undergo a substantial modification which would result indiverting the assisted operation from its original objectives;
(42)Whereas the rules and procedures for making commitments andpayments should be simplified; whereas to that end budget
commitments should be made once a year in accordance with the
multiannual financial perspective and with the financing plan forassistance, whilst payments should be made in the form of anadvance followed by the reimbursement of actual expenditureincurred; whereas, in accordance with established case law, anyinterest earned on the advance payment should be regarded as
resources for the Member State concerned, and in order to
strengthen the impact of the Funds, it should be allocated to thesame purpose as the advance payment itself;
(43)Whereas sound financial management should be assured byproviding that expenditure is to be duly justified and certified, andby linking payments to compliance with essential responsibilitiesas to the monitoring of programming, financial controls and theapplication of Community law;1999R1260 — EN — 01.01.2000 — 001.001 — 7
(1) OJ L 375, 23.12.1989, p. 11 (PHARE). Regulation as last amended by
Council Regulation (EC) No 753/96 (OJ L 103, 26.4.1996, p. 5).
(2) OJ L 165, 4.7.1996, p. 1 (TACIS).
(3) OJ L 189, 30.7.1996, p. 1 (MEDA). Regulation as last amended by Council
Regulation (EC) No 780/98 (OJ L 113, 15.4.1998, p. 2).
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(44)Whereas, to ensure sound management of Community resources,
improvements should be made to the forecasting and imple-
menting of expenditure; whereas to that end the Member Statesshould regularly send the Commission their forecasts of the use ofCommunity resources, and any delays in financial implementationshould give rise to repayment of advances and to automaticdecommitments;
(45)Whereas, throughout the transitional period from 1 January 1999to 31 December 2001, all references to the euro should normally
be read as references to the euro as a monetary unit as referred to
in the second sentence of Article 2 of Council Regulation (EC)No 974/98 of 3 May 1998 on the introduction of the euro(
1);
(46)Whereas one way of ensuring that the operations of the StructuralFunds are effective is efficient monitoring; whereas monitoringshould be improved and responsibilities in this field betterdefined; whereas, in particular, management functions should bedistinguished from monitoring functions;
(47)Whereas there should be a single managing authority for eachassistance, with defined responsibilities; whereas these responsi-
bilities should primarily include collecting data on outcomes and
reporting this data to the Commission, ensuring sound financialimplementation, organising evaluations and complying withobligations relating to publicity and Community law; whereasaccordingly there should be provision for regular meetings
between the Commission and the managing authority to monitor
the assistance;
(48)Whereas it should be stipulated that the Monitoring Committeesare bodies appointed by the Member State supervising assistance,checking on how it is being managed by the managing authority,ensuring compliance with its own guidelines and implementingrules and reviewing evaluations;
(49)Whereas indicators and annual reports on implementation areessential for monitoring and should be better defined so as toreflect reliably the progress of assistance schemes and the quality
of programming;
(50)Whereas, in order to guarantee efficient and correct implementa-tion, the obligations of the Member States should be laid down
with regard to management and supervision systems, thecertification of expenditure and the prevention, detection andcorrection of irregularities and of infringements of Communitylaw;
(51)Whereas, without prejudice to the Commission's responsibilitiesfor financial control, cooperation between the Member States and
the Commission in this regard should be improved, in particular
through provision for regular consultations between the MemberStates and the Commission to consider the measures taken by theMember States and to permit the Commission to requestcorrective measures where necessary;
(52)Whereas the responsibility of the Member States for the pursuitand correction of irregularities and infringements, and that of theCommission where the Member States do not comply with their
obligations, should be specified;
(53)Whereas the effectiveness and impact of the operations of theStructural Funds also depend on improved and more thorough
evaluation; whereas the responsibilities of the Member States andthe Commission in this regard and arrangements to ensure thereliability of evaluation should be laid down;
(54)Whereas assistance schemes should be evaluated with a view totheir preparation, mid-term review and assessment of theirimpact, and the evaluation process should be incorporated intothe monitoring of assistance; whereas to that end the aims and1999R1260 — EN — 01.01.2000 — 001.001 — 8
(1) OJ L 139, 11.5.1998, p. 1.
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content of each stage of evaluation should be defined, and the
evaluation of the situation as regards the social and economicsituation, the environment and equality between men and women
should be improved;
(55)Whereas the mid-term evaluation and the withholding of part of
the original appropriations as a reserve enable supplementaryfunding to be allocated within each Member State on a
performance-related basis; whereas such allocations should be
based on objective, simple and transparent criteria which reflectefficiency and the quality of management and financial execution;
(56)Whereas a report is to be presented every three years on theprogress made towards economic and social cohesion, which
should include an analysis of the situation of the regions of the
Community and their economic and social development;
(57)Whereas, in the interests of a good working partnership and theproper promotion of Community assistance, the broadest possibleinformation and publicity about it should be provided; whereas
the authorities responsible for managing assistance should be
responsible for this aspect and for keeping the Commissioninformed of measures taken;
(58)Whereas rules should be laid down for the operation of thecommittees called upon to assist the Commission in implementing
this Regulation;
(59)Whereas detailed transitional provisions should be laid down to
allow preparation of new programming immediately on entry intoforce of this Regulation and to ensure that assistance to Member
States is not interrupted pending the production of regional
development plans and assistance schemes in accordance with thenew system,
HAS ADOPTED THIS REGULATION:
TITLE I
GENERAL PRINCIPLES
CHAPTER I
OBJECTIVES AND TASKS
Article 1
Objectives
Community action through the Structural Funds, the Cohesion Fund, the
European Agricultural Guidance and Guarantee Fund (EAGGF),
Guarantee Section, the European Investment Bank (EIB) and the otherexisting financial instruments shall support the achievement of thegeneral objectives set out in Articles 158 and 160 of the Treaty. TheStructural Funds, the EIB and the other existing financial instrumentsshall each contribute in appropriate fashion to the attainment of the
following three priority objectives:
1. promoting the development and structural adjustment of regions
whose development is lagging behind, hereinafter referred to as
‘Objective 1’;
2. supporting the economic and social conversion of areas facing
structural difficulties, hereinafter referred to as ‘Objective 2’;
3. supporting the adaptation and modernisation of policies and systems
of education, training and employment, hereinafter referred to as
‘Objective 3’. This objective shall provide financial assistanceoutside the regions covered by Objective 1 and provide a policyframe of reference for all measures to promote human resources in anational territory without prejudice to the specific features of eachregion.1999R1260 — EN — 01.01.2000 — 001.001 — 9
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In pursuing these objectives, the Community shall contribute to the
harmonious, balanced and sustainable development of economicactivities, the development of employment and human resources, the
protection and improvement of the environment, and the elimination of
inequalities, and the promotion of equality between men and women.
Article 2
Means and tasks
1. For the purposes of this Regulation, ‘Structural Funds’ shall mean
the European Regional Development Fund (ERDF), the European Social
Fund (ESF), the European Agricultural Guidance and Guarantee Fund(EAGGF), Guidance Section, and the Financial Instrument for FisheriesGuidance (FIFG), hereinafter referred to as ‘the Funds’.
2. In accordance with Articles 33, 146 and 160 of the Treaty, the
Funds shall contribute, each according to the specific provisions
governing its operations, to the attainment of Objectives 1, 2 and 3, asfollows:
(a) Objective 1: ERDF, ESF, EAGGF Guidance Section and FIFG;
(b) Objective 2: ERDF and ESF;(c) Objective 3: ESF.
3. The FIFG shall contribute to structural actions in the fisheries
sector outside Objective 1 regions in accordance with CouncilRegulation (EC) No 1263/1999 of 21 June 1999 on the financialinstrument for fisheries guidance(
1).
The EAGGF Guarantee Section shall contribute to the attainment of
Objective 2 in accordance with Regulation (EC) No 1257/1999.
4. The Funds shall contribute to financing Community initiatives and
to supporting innovative measures and technical assistance.
Technical assistance measures shall be carried out within the framework
of the programming defined in Articles 13 to 27 or at the initiative of the
Commission under Article 23.
5. The other resources of the Community budget which may be used
to attain the Objectives referred to in Article 1 are in particular thoseallocated to other structural measures and to the Cohesion Fund.
The Commission and the Member States shall ensure that the operations
of the Funds are consistent with other Community policies andoperations, in particular in the areas of employment, equality betweenmen and women, social policy and vocational training, the commonagricultural policy, the common fisheries policy, transport, energy and
the trans-European networks and the incorporation of the requirements
of environmental protection into the definition and implementation ofthe operations of the Funds.
6. The EIB shall cooperate in attaining the objectives set out in
Article 1, in accordance with the procedures laid down in its Statute.
The other existing financial instruments which may contribute, each
according to the specific provisions governing its operations, to attainingthe Objectives referred to in Article 1 include the European InvestmentFund and the European Atomic Energy Community (Euratom) (loans,guarantees), hereinafter ‘the other financial instruments’.1999R1260 — EN — 01.01.2000 — 001.001 — 10
(1) See page 54 of this Official Journal.
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CHAPTER II
GEOGRAPHICAL ELIGIBILITY FOR THE PRIORITY OBJEC-
TIVES
Article 3
Objective 1
1. The regions covered by Objective 1 shall be regions corresponding
to level II of the Nomenclature of Territorial Statistical Units (NUTSlevel II) whose per capita GDP, measured in purchasing power paritiesand calculated on the basis of Community figures for the last three yearsavailable on 26 March 1999, is less than 75 % of the Community
average.
The outermost regions (the French overseas departments, the Azores, the
Canary Islands and Madeira), which are all below the 75 % threshold,and the areas eligible under Objective 6 for the period 1995 to 1999
pursuant to Protocol 6 to the Act of Accession of Austria, Finland and
Sweden shall also be covered by this Objective.
2. The Commission shall draw up the list of regions covered by
Objective 1 strictly in accordance with the first subparagraph of
paragraph 1, without prejudice to Article 6(1) and Article 7(4), secondsubparagraph.
This list shall be valid for seven years from 1 January 2000.
Article 4
Objective 2
1. The regions covered by Objective 2 shall be those with structural
problems whose socio-economic conversion is to be supported in
accordance with Article 1(2) and whose population or area is sufficiently
substantial. They shall include in particular areas undergoing socio-economic change in the industrial and service sectors, declining ruralareas, urban areas in difficulty and depressed areas dependent onfisheries.
2. The Commission and the Member States shall seek to ensure that
assistance is genuinely concentrated on the areas most seriously affectedand at the most appropriate geographical level. The population of the
areas referred to in paragraph 1 shall not exceed 18 % of the total
population of the Community. Accordingly, the Commission shall laydown a population ceiling for each Member State on the basis of thefollowing factors:
(a) the total population in the NUTS III areas of each Member State
which meet the criteria referred to in paragraphs 5 and 6;
(b) the severity of the structural problems at national level in each
Member State as compared with the other Member States concerned.Such severity shall be assessed on the basis of total unemploymentand long-term unemployment outside the regions eligible under
Objective 1;
(c) the need to ensure that each Member State makes a fair contribution
to the overall concentration effort as defined in this subparagraph;the maximum reduction in the population covered by Objective 2shall not exceed one third compared to the population covered byObjectives 2 and 5b as set out in Regulation (EEC) No 2052/88, in1999.
The Commission shall provide the Member States with all the
information it has available about the criteria set out in paragraphs 5and 6.1999R1260 — EN — 01.01.2000 — 001.001 — 11
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3. Subject to the ceilings referred to in paragraph 2, the Member
States shall propose to the Commission a list of significant areasrepresenting:
(a) the NUTS level III regions, or the most seriously affected areas
within those regions, which satisfy either the criteria set out inparagraph 5 or those set out in paragraph 6;
(b) the areas satisfying the criteria referred to in paragraph 7 or
paragraph 8 or Member States' specific criteria referred to inparagraph 9.
The Member States shall provide the statistics and other information, at
the most appropriate geographical level, which the Commission requires
to evaluate these proposals.
4. On the basis of the information referred to in paragraph 3, the
Commission, in close concertation with the Member State concerned,shall draw up the list of areas eligible under Objective 2 with due regardto national priorities, without prejudice to Article 6(2).
The areas meeting the criteria in paragraphs 5 and 6 must contain at least
50 % of the population covered by Objective 2 in each Member State,except where duly justified by objective circumstances.
5. The areas undergoing socio-economic change referred to in
paragraph 1 shall represent or belong to a NUTS level III territorial
unit which satisfies the following criteria:
(a) an average rate of unemployment over the last three years above the
Community average;
(b) a percentage share of industrial employment in total employment
equal to or greater than the Community average in any referenceyear from 1985 onwards;
(c) an observable fall in industrial employment compared with the
reference year chosen in accordance with (b).
6. The rural areas referred to in paragraph 1 must represent or belong
to a NUTS level III territorial unit which satisfies the following criteria:
(a) either a population density of less than 100 people per km
2,o ra
percentage share of agricultural employment in total employment
which is equal to, or higher than, twice the Community average inany reference year from 1985;
(b) either an average unemployment rate over the last three years above
the Community average, or a decline in population since 1985.
7. The urban areas referred to in paragraph 1 shall mean densely
populated areas which also meet at least one of the following criteria:
(a) a rate of long-term unemployment higher than the Community
average;
(b) a high level of poverty, including precarious housing conditions;
(c) a particularly damaged environment;
(d) a high crime and delinquency rate;
(e) a low level of education among the population.
8. The areas dependent on fisheries referred to in paragraph 1 shall
mean coastal areas in which the number of jobs in the fisheries industry
as a percentage of total employment is significant and which are facing
structural socio-economic problems relating to the restructuring of thefisheries sector which result in a significant reduction in the number ofjobs in that sector.
9. Community assistance may extend to areas whose population or
area is significant which fall into one of the following categories:
(a) areas meeting the criteria set out in paragraph 5 which are adjacent
to an industrial area, areas meeting the criteria set out in paragraph 6which are adjacent to a rural area, areas which meet either thecriteria set out in paragraph 5 or those set out in paragraph 6 whichare adjacent to a region covered by Objective 1;1999R1260 — EN — 01.01.2000 — 001.001 — 12
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(b) rural areas with socio-economic problems arising either from the
ageing or decline of the agricultural working population;
(c) areas facing or threatened by serious structural problems on account
of relevant, verifiable characteristics, or a high level of unemploy-ment arising from an ongoing or planned restructuring of one or
more activities in the agricultural, industrial or service sector.
10. Any one area may be eligible for assistance under only one of
Objectives 1 or 2.
11. The list of areas shall be valid for seven years from 1 January
2000.
Where there is a serious crisis in a region, the Commission, acting on a
proposal from a Member State, may amend the list of areas during 2003in accordance with paragraphs 1 to 10 without increasing the proportion
of the population within each region referred to in Article 13(2).
Article 5
Objective 3
The areas eligible for financing under Objective 3 shall be those not
covered by Objective 1.
Article 6
Transitional support
1. Notwithstanding Article 3, the regions covered by Objective 1 in
1999 pursuant to Regulation (EEC) No 2052/88 which are not referred
to in the second subparagraph of Article 3(1) and (2) of this Regulationshall continue to receive support from the Funds under Objective 1 on atransitional basis from 1 January 2000 to 31 December 2005.
At the time of adoption of the list referred to in Article 3(2), the
Commission shall draw up in accordance with Article 4(5) and (6) the
list of the NUTS level III areas belonging to those regions which are toreceive support from the Funds under Objective 1 on a transitional basisin 2006.
However, within the limit of the population of the areas referred to in the
second subparagraph and in conformity with the provisions ofArticle 4(4), second subparagraph, the Commission may on a proposalfrom a Member State, substitute these areas by areas at or smaller thanNUTS level III belonging to those regions which satisfy the criteria ofArticle 4(5) to (9).
The areas of the regions not on the list referred to in the second and third
subparagraphs shall continue to receive support in 2006 from the ESF,FIFG and the EAGGF Guidance Section only, within the same form ofassistance.
2. Notwithstanding Article 4, the regions covered by Objectives 2 and
5(b) in 1999 pursuant to Regulation (EEC) No 2052/88 which are not onthe list referred to in Article 4(4) of this Regulation shall receive supportfrom the ERDF, from 1 January 2000 to 31 December 2005, underObjective 2 pursuant to this Regulation, on a transitional basis.
Such areas shall receive support from 1 January 2000 to 31 December
2006 from the ESF under Objective 3 on the same basis as Objective 3areas, the EAGGF Guarantee Section under its support to ruraldevelopment and from the FIFG under its structural measures in thefisheries sector outside of Objective 1.1999R1260 — EN — 01.01.2000 — 001.001 — 13
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CHAPTER III
FINANCIAL PROVISIONS
Article 7
Resources and concentration
1. The resources available for commitment from the Funds for the
period 2000 to 2006 shall be EUR 195 billion at 1999 prices.
The annual breakdown of those resources is shown in the Annex.2. The breakdown of budgetary resources between objectives shall be
such as to achieve a significant concentration on Objective 1 regions.
69,7 % of the Structural Funds will be allocated to Objective 1,
including 4,3 % for transitional support (i.e. a total of EUR 135,9billion).
11,5 % of the Structural Funds will be allocated to Objective 2,
including 1,4 % for transitional support (i.e. a total of EUR 22,5 billion).
12,3 % of the Structural Funds will be allocated to Objective 3 (i.e. a
total of EUR 24,05 billion).
The figures stated for Objectives 1, 2 and 3 do not include the financial
resources referred to in paragraph 6 nor the financing for FIFG outsideObjective 1.
3. Using transparent procedures, the Commission shall make
indicative breakdowns by Member State of the commitment appropria-tions available for the programming referred to in Articles 13 to 19,taking full account, for Objectives 1 and 2, of one or more objective
criteria similar to those covered by Regulation (EEC) No 2052/88,
namely: eligible population, regional prosperity, national prosperity andthe relative severity of the structural problems, especially the level ofunemployment.
For Objective 3, the breakdown by Member State shall be based
principally on the eligible population, the employment situation and the
severity of the problems, such as social exclusion, education and training
levels, and participation of women in the labour market.
For Objectives 1 and 2, these breakdowns shall distinguish allocations of
appropriations to regions and areas benefiting from transitional support.These allocations shall be determined in accordance with the criteriareferred to in the first subparagraph. The annual breakdown of these
appropriations shall be degressive from 1 January 2000 and shall be
lower in 2000 than in 1999. The profile of transitional support may betailored to the specific needs ofindividual regions, in agreement with theCommission, provided the financial allocation for each region isrespected.
Using transparent procedures, the Commission shall also make
indicative breakdowns by Member State of the commitment appropria-
tions available for the structural actions in the fisheries sector outside
Objective 1 regions, as referred to in Article 2(3), first subparagraph.
4. Under Objective 1, a PEACE programme in support of the peace
process in Northern Ireland shall be established for the years 2000 to2004 for the benefit of Northern Ireland and the border areas of Ireland.
Under Objective 1, a special programme of assistance for the period
2000 to 2006 shall be established for the Swedish NUTS-II regions
which are not covered by the list referred to in Article 3(2) and which
meet the criteria laid down in Article 2 of Protocol 6 to the Act ofAccession for Austria, Sweden and Finland.
5. 4 % of commitment appropriations under each national indicative
breakdown referred to in paragraph 3 shall be allocated in accordancewith Article 44.1999R1260 — EN — 01.01.2000 — 001.001 — 14
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6. For the period referred to in paragraph 1, 5,35 % of the
commitment appropriations for the Structural Funds referred to inparagraph 1 shall be devoted to funding the Community initiatives.
0,65 % of the appropriations referred to in paragraph 1 shall be devoted
to funding innovative measures and technical assistance as defined inArticles 22 and 23.
7. For the purpose of their programming and subsequent inclusion in
the general budget of the European Communities, the sums referred to inparagraph 1 shall be indexed as from 1 January 2000 at 2 % per year.
Indexation of the allocations for 2004 to 2006 shall be reviewed, if
necessary, by31 December 2003 at the latest for technical adjustment bythe Commission on the basis of the latest economic informationavailable. The difference relative to the initial programming shall bereallocated for inclusion in the sum referred to in paragraph 5.
8. Total annual receipts in any Member State from the Structural
Funds pursuant to this Regulation — in combination with assistanceprovided under the Cohesion Fund — should not exceed 4 % of nationalGDP.
CHAPTER IV
ORGANISATION
Article 8
Complementarity and partnership
1. Community actions shall complement or contribute to corre-
sponding national operations. They shall be drawn up in close
consultation, hereinafter referred to as the ‘partnership’, between the
Commission and the Member State, together with the authorities andbodies designated by the Member State within the framework of itsnational rules and current practices, namely:
— the regional and local authorities and other competent public
authorities,
— the economic and social partners,
— any other relevant competent bodies within this framework.
The partnership shall be conducted in full compliance with the
respective institutional, legal and financial powers of each of thepartners as defined in the first subparagraph.
In designating the most representative partnership at national, regional,
local or other level, the Member State shall create a wide and effectiveassociation of all the relevant bodies, according to national rules andpractice, taking account of the need to promote equality between menand women and sustainable development through the integration of
environmental protection and improvement requirements.
All the designated parties, hereinafter referred to as the ‘partners’, shall
be partners pursuing a common goal.
2. Partnership shall cover the preparation, financing, monitoring and
evaluation of assistance. Member States shall ensure the association ofthe relevant partners at the different stages of programming, takingaccount of the time limit for each stage.
3. In application of the principle of subsidiarity, the implementation
of assistance shall be the responsibility of the Member States, at theappropriate territorial level according to the arrangements specific toeach Member State, and without prejudice to the powers vested in theCommission, notably for implementing the general budget of the
European Communities.
4. Member States shall cooperate with the Commission to ensure that
Community Funds are used in accordance with the principles of soundfinancial management.1999R1260 — EN — 01.01.2000 — 001.001 — 15
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5. Each year, the Commission shall consult the European-level
organisations representing the social partners about the structural policyof the Community.
Article 9
Definitions
For the purposes of this Regulation:
(a)programming: means the organising, decision-making and finan-
cing process carried out in a number of stages to implement on amultiannual basis the joint action of the Community and theMember States to attain the Objectives referred to in Article 1;
(b)development plan (hereinafter referred to as ‘the plan’: means the
analysis of the situation prepared by a Member State in the light of
the objectives referred to in Article 1 and the priority needs forattaining those objectives, together with the strategy, the plannedaction priorities, their specific goals and the related indicativefinancial resources;
(c)Objective 3 policyframe of reference: means a document which
sets the context for assistance concerning employment and human-
resource development throughout the territory of each MemberState, and which identifies the relationship with the priorities set outin the National Action Plan for Employment;
(d)Communitysupport framework: means the document approved by
the Commission, in agreement with the Member State concerned,following appraisal of the plan submitted by a Member State and
containing the strategy and priorities for action of the Funds and the
Member State, their specific objectives, the contribution of theFunds and the other financial resources. This document shall bedivided into priorities and implemented by means of one or moreoperational programmes;
(e)assistance: means the forms of assistance provided by the Funds,
i.e.:
(i) operational programmes or single programming documents;
(ii) Community initiative programmes;
(iii) support for technical assistance and innovative measures;
(f)operational programme: means the document approved by the
Commission to implement a Community support framework and
comprising a consistent set of priorities comprising multiannualmeasures and which may be implemented through recourse to oneor more Funds, to one or more of the other existing financialinstruments and to the EIB. An integrated operational programmemeans an operational programme financed by more than one Fund;
(g)single programming document: means a single document approved
by the Commission and containing the same information to be
found in a Community support framework and operationalprogramme;
(h)priority: means one of the priorities of the strategy adopted in a
Community support framework or assistance; to it is assigned acontribution from the Funds and other financial instruments and the
relevant financial resources of the Member State and a set of
specified targets;
(i)global grant: means that part of assistance the implementation and
management of which may be entrusted to one or more approvedintermediaries in accordance with Article 27(1), including localauthorities, regional development bodies or non-governmental
organisations, used preferably to assist local development initia-
tives. The decision to employ a global grant shall be taken inagreement with the Commission by the Member State or, inagreement with the Member State, by the managing authority.
In the case of Community initiative programmes and innovative
measures, the Commission may decide to employ a global grant forall or part of the assistance. In the case of Community initiatives,1999R1260 — EN — 01.01.2000 — 001.001 — 16
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this decision may only be taken with the prior agreement of the
Member States concerned.
(j)measure: means the means by which a priority is implemented over
several years which enable operations to be financed. Any aidscheme pursuant to Article 87 of the Treaty or any aid granted bybodies designated by the Member States, or any group of aidschemes or aid grants of this type or any combination thereof whichhave the same purpose and are defined as a measure;
(k)operation: means any project or action carried out by the final
beneficiaries of assistance;
(l)final beneficiaries: means the bodies and public or private firms
responsible for commissioning operations. In the case of aid
schemes pursuant to Article 87 of the Treaty and in the case of aid
granted by bodies designated by the Member States, the finalbeneficiaries are the bodies which grant the aid;
(m)programme complement: means the document implementing the
assistance strategy and priorities and containing detailed elements at
measure level, as set out in Article 18(3), drawn up by the Member
State or managing authority and revised as necessary in accordancewith Article 34(3). It is sent to the Commission for information;
(n)managing authority: means any public or private authority or body
at national, regional or local level designated by the Member State,
or the Member State when it is itself carrying out this function, to
manage assistance for the purposes of this Regulation. If theMember State designates a managing authority other than itself, itshall determine all the modalities of its relationship with themanaging authority and of the latter's relationship with theCommission. If the Member State so decides, the managing
authority may be the same body as the paying authority for the
assistance concerned;
o)paying authority: means one or more national, regional or local
authorities or bodies designated by the Member States for thepurposes of drawing up and submitting payment applications and
receiving payments from the Commission. The Member State shall
determine all the modalities of its relationship with the payingauthority and of the latter's relationship with the Commission.
Article 10
Coordination
1. Coordination between the various Funds shall be carried out in
particular through:
(a) the plans, the Community support frameworks, the operational
programmes and the single programming documents (as defined inArticle 9) including the frame of reference where relevant inaccordance with Article 9(1)(c);
(b) the monitoring and evaluation of assistance under an Objective;
(c) the guidelines referred to in paragraph 3.
2. The Commission and Member State shall, in a manner consistent
with the principle of partnership, ensure coordination of assistance fromthe different Funds between the Funds and with assistance from the EIBand other existing financial instruments.
In order to maximise the stimulus provided by the budget resources
deployed, making use of appropriate financial instruments, theCommunity assistance provided in the form of grants may be combined
in an appropriate way with loans and guarantees. This combination may
be determined in conjunction with the EIB when the Community supportframework or single programming document is being drawn up. It maytake account of the balance in the proposed financing plan, thecontribution from the Funds and the development goals pursued.
3. No later than one month from the entry into force of this
Regulation and subsequently before the mid-term review referred to inArticle 42, and on each occasion after consulting all Member States, the1999R1260 — EN — 01.01.2000 — 001.001 — 17
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Commission shall publish broad, indicative guidelines on relevant and
agreed Community policies in relation to the objectives referred to inArticle 1, to help the competent national and regional authorities to draw
up development plans and to carry out any revision of the assistance.
This guidance shall be published in the Official Journal of the European
Communities .
Article 11
Additionality
1. In order to achieve a genuine economic impact, the appropriations
of the Funds may not replace public or other equivalent structural
expenditure by the Member State.
2. For this purpose, the Commission and the Member State concerned
shall determine the level of public or equivalent structural expenditure
that the Member State is to maintain in the sum of its regions covered by
Objective 1 during the programming period.
For Objectives 2 and 3 taken together, the Commission and the Member
State concerned shall determine the level of expenditure on the activelabour-market policy and, where justified, other actions designed tomake it possible to achieve the goals of those two Objectives which theMember State is to maintain at national level during the programming
period.
Such expenditure shall be determined by the Member State and the
Commission, taking account of the provisions of the fourth subpara-
graph, in advance of the Commission decision approving any
Community support framework or single programming documentsrelating to the Member State concerned and shall be integrated intothose documents.
As a general rule, the level of expenditure referred to in the first and
second subparagraphs shall be at least equal to the amount of averageannual expenditure in real terms achieved in the previous programming
period and shall be determined in the light of the general macro-
economic circumstances in which the funding takes place, althoughaccount should be taken of certain specific economic situations, namelyprivatisations, an exceptional level of public structural effort orequivalent effort on the part of the Member State during the previousprogramming period and national economic trends.
Account shall also be taken of any reduction in Structural Fund
expenditure when compared to the period 1994 to 1999.
3. Additionality shall be verified at the territorial level set out in
paragraph 2 at three points during the programming period:
(a) anex-anteverification as described in the third subparagraph of
paragraph 2, to provide a frame of reference for the wholeprogramming period;
(b) a mid-term verification no later than three years after approval of the
Community support framework or the single programming docu-ments and as a general rule no later than 31 December 2003,following which the Commission and the Member State may agreeto revise the level of structural expenditure to be attained if theeconomic situation has resulted in developments in public revenue
or employment in the Member State concerned significantly
different from those expected at the time of the ex-anteverification;
(c) a verification by 31 December 2005.
To that end, the Member State shall provide the Commission with
appropriate information at the time when the plans are submitted andwhen the mid-term verification and the verification before 31 December2005 are made. Where necessary, methods of statistical estimation shall
be used.
Independently of these verifications, the Member State shall inform the
Commission at any point during the programming period of develop-1999R1260 — EN — 01.01.2000 — 001.001 — 18
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ments likely to call into question its ability to maintain the level of
expenditure referred to in paragraph 2.
Article 12
Compatibility
Operations financed by the Funds or receiving assistance from the EIB
or from another financial instrument shall be in conformity with the
provisions of the Treaty, with instruments adopted under it and with
Community policies and actions, including the rules on competition, onthe award of public contracts, on environmental protection andimprovement and on the elimination of inequalities and the promotionof equality between men and women.
TITLE II
PROGRAMMING
CHAPTER I
GENERAL PROVISIONS CONCERNING OBJECTIVES 1, 2 AND
3
Article 13
Geographical coverage
1. Plans submitted under Objective 1 shall be drawn up at the
geographical level deemed by the Member State concerned to be mostappropriate but shall, as a general rule, cover a single region at NUTSlevel II. However, Member States may submit a general development
plan covering some or all of their regions included in the list referred to
in Article 3(2), Article 6(1) and Article 7(4), provided that such plancontains the features listed in Article 16.
2. Plans submitted under Objective 2 shall be drawn up at the
geographical level deemed by the Member State concerned to be mostappropriate, but shall as a general rule comprise all the areas covered bya single NUTS level II region, included in the list referred to inArticle 4(4) and Article 6(2). However, the Member States may submit a
plan covering certain or all of their regions included in the list referred
to in Article 4(4) and in Article 6(2), provided that such plan containsthe features listed in Article 16. Where plans cover regions other thanthose eligible under Objective 2, they shall distinguish betweenoperations in regions or areas covered by Objective 2 and operationselsewhere.
3. Plans submitted under Objective 3 shall cover the territory of a
Member State in respect of assistance outside the regions covered byObjective 1 and, taking into account the general needs of areas facing
structural problems of socio-economic conversion, shall provide, for the
whole of the national territory, a framework of reference for developinghuman resources.
Article 14
Duration and revision
1. Each plan, Community supportframework, operational programme
and single programming document shall cover a period of seven years,without prejudice to Article 6 and Article 7(4), first subparagraph.
The programming period shall begin on 1 January 2000.2. Community support frameworks, operational programmes and
single programming documents shall be re-examined and, if necessary,adapted at the initiative of the Member State or the Commission inagreement with the Member State, in accordance with this Titlefollowing the mid-term evaluation referred to in Article 42 and theallocation of the performance reserve referred to in Article 44.1999R1260 — EN — 01.01.2000 — 001.001 — 19
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They may also be revised in the event of significant changes in the
socio-economic situation and the labour market.
Article 15
Preparation and approval
1. In respect of Objectives 1, 2 and 3, Member States shall submit a
plan to the Commission. That plan shall be drawn up by the competentauthorities designated by the Member State at national, regional andother level. In cases where assistance is to take the form of a singleprogramming document, the plan shall be dealt with as a draft single
programming document.
In respect of Objective 1, Community support frameworks shall be
employed for all regions covered by Objective 1; however, where theCommunity allocation is less than or does not substantially exceed EUR1 000 million, the Member States shall, as a general rule, submit a draftsingle programming document.
In respect of Objectives 2 and 3, single programming documents shall as
a general rule be employed; however, Member States may elect to havea Community support framework drawn up.
2. The plans shall be submitted by the Member State to the
Commission after consultation with the partners, who shall express
their views within a period of time consistent with the deadline set in the
second subparagraph.
Unless otherwise agreed with the Member State concerned, plans shall
be submitted not later than four months after the list of eligible regionsreferred to in Article 3(2) and Article 4(4) have been drawn up.
3. The Commission shall appraise these plans to determine whether
they are consistent with the aims of this Regulation, taking account of
the framework of reference referred to in Article 9(1)(c), otherCommunity policies and Article 41(2).
The Commission shall also appraise each Objective 3 plan proposed in
the light of the consistency of the measures envisaged with the nationalplan for implementing the European employment strategy in accordance
with Article 16(1)(b) and having regard to the manner in which and the
degree to which the general needs of areas facing structural problems ofsocio-economic conversion are taken into account.
4. Where applicable as provided in paragraph 1, the Commission
shall draw up the Community support frameworks in agreement with the
Member State concerned and following the procedures laid down in
Articles 48 to 51. The EIB may be involved in the preparation of theCommunity support frameworks. The Commission shall take a decisionon the contribution from the Funds not later than five months afterreceiving the relevant plan or plans provided they contain all the featureslisted in Article 16.
The Commission shall appraise the proposed operational programmes
submitted by the Member State to determine whether they are consistentwith the aims of the corresponding Community support framework andcompatible with other Community policies. It shall adopt a decision onthe contribution of the Funds in accordance with Article 28(1) and in
agreement with the Member State concerned, provided that the
proposals contain all the features listed in Article 18(2).
In order to expedite the examination of applications and the
implementation of programmes, the Member States may submit, at thesame time as their plans, draft operational programmes. When adoptingits decision on a Community support framework, the Commission shall
also approve, in accordance with Article 28(1), the operational
programmes submitted at the same time as the plans provided theyinclude all the features listed in Article 18(2).
5. Where applicable as provided in paragraph 1 on the basis of the
plans, the Commission shall take a decision on the single programmingdocuments in agreement with the Member State concerned, following1999R1260 — EN — 01.01.2000 — 001.001 — 20
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the procedures laid down in Articles 48 to 51. The EIB may be involved
in the preparation of the single programming documents. TheCommission shall take a single decision on the single programming
document and the contribution of the Fundspursuant to Article 28(1) not
later than five months after having received the relevant plan, providedthat it contains all the features listed in Article 19(3).
6. The Member State or the managing authority shall adopt the
programme complement defined in Article 9(m) after the agreement ofthe Monitoring Committee if the programme complement is drawn upafter the Commission decision on the contribution of the Funds, or afterconsulting the relevant partners if it is drawn up before the decision on
the contribution of the Funds. In the latter case, the Monitoring
Committee shall either confirm the programme complement or requestan adjustment in accordance with Article 34(3).
Within three months of the Commission decision approving an
operational programme or single programming document, the MemberState shall send the programme complement to the Commission in asingle document for information.
7. The Commission decisions on a Community support framework or
single programming document shall be published in the Official Journal
of the European Communities . At the request of the European
Parliament, the Commission shall transmit to it, for information, these
decisions and the Community support framework and single program-ming documents it has approved.
CHAPTER II
CONTENT OF THE PROGRAMMING FOR OBJECTIVES 1, 2
AND 3
Article 16
Plans
1. The plans submitted under Objectives 1, 2 and 3 shall be based on
appropriate national and regional priorities and shall take account of theindicative guidance referred to in Article 10(3) and shall include:
(a) a description, quantified where it lends itself to quantification, of the
current situation either with regard to disparities, gaps and potentialfor development in the regions covered by Objective 1, or in termsof conversion in the areas covered by Objective 2, or in terms ofdeveloping human resources and employment policy in the Member
State and the areas covered by Objective 3; also, a description of the
financial resources deployed and the main results of operationsundertaken in the previous programming period with regard to theevaluation results available;
(b) a description of an appropriate strategy to attain the objectives
referred to in Article 1 and the priorities selected for the sustainable
development and conversion of regions and areas, including rural
areas, and the related development of human resources and theadaptation and modernisation of policies and systems for education,training and employment.
In addition to the other items listed in this point, Member States
shall demonstrate in each Objective 3 plan that the priorities planned
are consistent with the prevailing national employment plan, by
reference to a description of the main aims of the strategy and themain means of attaining them.
Similarly, Member States shall demonstrate that the activities
provided for in each Objective 2 plan on human resources andemployment to be assisted by the ESF are integrated into the
conversion strategy, coordinated with the other Funds and consistent
with the ex-anteevaluation relating to human resources and
employment as referred to in Article 41(2). If these needs do notamount to a significant sum, they shall be covered by Objective 3;
(c) an indication of the planned use and form of the financial
contribution from the Funds and, where appropriate, the EIB and1999R1260 — EN — 01.01.2000 — 001.001 — 21
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the other financial instruments including, for information, the total
amount from the EAGGF Guarantee Section for the measuresreferred to in Article 33 of Regulation (EC) No 1257/1999; the
expected requirement for technical assistance; an indication as
regards additionality in accordance with Article 11(2), whereby forObjective 1 this should take the form of an indicative overallfinancing table summarising the public or equivalent and, whereappropriate, estimated private resources and the Community
structural resources allocated corresponding to each priority
proposed in the plan.
In any case, the plans shall distinguish between the financial
envelopes allocated to areas receiving transitional support and thoseallocated to other areas covered by Objective 1 or 2.
In the case of ESF assistance under Objective 2 or 3, the percentage
contribution may be higher in Objective 2 areas than in others.
In the case of Objective 3, this financing plan shows the
concentration of appropriations planned for the areas facingstructural problems of economic and social conversion;
(d) an account of arrangements made to consult partners.
2. For regions covered by Objective 1, the plans shall include all
relevant measures for economic and social conversion, the development
of human resources, having regard to the frame of reference referred to
in Article 9(1)(c), and rural development and fisheries structures.
Where a Member State is covered in its entirety by Objective 1, the plan
shall cover the points in the second subparagraph of paragraph (1)(b).
3. Member States shall indicate the particulars relating to each Fund,
including the amount of the financial contribution requested and an
outline of the operational programmes planned with particular regard totheir specific aims and the main types of actions planned.
Article 17
Community support frameworks
1. The Community support framework shall provide coordination of
all Community structural assistance in the regions concerned, including,
in accordance with Article 1(3), assistance for the development of
human resources.
2. Each Community support framework shall include:
(a) a statement of the strategy and priorities for joint Community and
national action; their specific objectives, quantified where they lend
themselves to quantification; evaluation of the expected impact inaccordance with Article 41(2); an indication of how this strategy andthese priorities have taken account of the indicative guidancereferred to in Article 10(3), the economic policies, the strategy fordeveloping employment through improving the adaptability and
skills of people and, where appropriate, the regional policies of the
Member State concerned;
(b) an indication of the nature and the duration of the operational
programmes not decided at the same time as the Community supportframework, including their specific aims and the priorities selected;
(c) an indicative financing plan specifying, in accordance with
Articles 28 and 29, for each priority and each year, the financial
allocation envisaged for the contribution of each Fund, whereappropriate the EIB, the other financial instruments — including, forinformation, the total amount from the EAGGF Guarantee Sectionfor the measures referred to in Article 33 of Regulation (EC)
No 1257/1999 — where they contribute directly to the financing
plan concerned and the total amount of eligible public and estimatedprivate funding relating to the contribution of each Fund.
In the case of Objective 3, that financing plan shall show the
concentration of appropriations planned for the areas facingstructural problems of economic and social conversion.1999R1260 — EN — 01.01.2000 — 001.001 — 22
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This financing plan shall distinguish the funding planned for the
regions receiving transitional support.
The total contribution of the Funds planned for each year for each
Community support framework shall be compatible with the
relevant financial perspective, taking account of the degressivity
referred to in the third subparagraph of Article 7(3);
(d) the provisions for implementing a Community support framework
including:
— designation by the Member State of a managing authority within
the meaning of Article 9(n) responsible for managing theCommunity support framework in accordance with Article 34,
— arrangements for involving the partners in the Monitoring
Committees described in Article 35;
(e) where appropriate, information on the appropriations required for
preparing, monitoring and evaluating assistance.
In accordance with Article 11, the Community support frameworks shall
include the ex-anteverification of additionality and the appropriate
information concerning the transparency of financial flows, in particularfrom the Member State concerned to the beneficiary regions.
Article 18
Operational programmes
1. Assistance covered by a Community support framework shall as a
general rule be provided in the form of an integrated operationalprogramme by region, as defined in Article 9.
2. Each operational programme shall contain:
(a) the priorities of the programme, their consistency with the relevant
Community support framework, their specific targets, quantifiedwhere they lend themselves to quantification, and an evaluation of
the impact expected, in accordance with Article 41(2);
(b) a summary description of the measures planned to implement the
priorities, including the information needed to check compliancewith aid schemes pursuant to Article 87 of the Treaty; whereappropriate, the nature of the measures required to prepare, monitorand evaluate the operational programme;
(c) an indicative financing plan specifying for each priority and each
year, in accordance with Articles 28 and 29, the financial allocation
envisaged for the contribution of each Fund, the EIB where
appropriate, and the other financial instruments — including, forinformation, the total amount from the EAGGF Guarantee Sectionfor the measures referred to in Article 33 of Regulation (EC)No 1257/1999 — in so far as they contribute directly to the
financing plan, as well as the total amount of eligible public and
estimated private funding relating to the contribution of each Fund.
This financing plan shall distinguish in the total contribution of the
various Funds the funding planned for the regions receivingtransitional support.
The total contribution of the Funds planned for each year shall be
compatible with the relevant financial perspective, taking account ofthe degressivity referred to in the third subparagraph of Article 7(3);
(d) the provisions for implementing an operational programme shall
include:
(i) designation by the Member State of a managing authority
within the meaning of Article 9(n) responsible for managing the
operational programme in accordance with Article 34;
(ii) a description of the arrangements for managing the operational
programme;
(iii) a description of the systems for monitoring and evaluation,
including the role of the Monitoring Committee;
(iv) a definition of the procedures concerning the mobilisation and
circulation of financial flows to ensure their transparency;1999R1260 — EN — 01.01.2000 — 001.001 — 23
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(v) a description of the specific arrangements and procedures for
checking on the operational programme.
3. The programme complement shall contain:
(a) the measures implementing the corresponding priorities in the
operational programme; ex-anteevaluation, in accordance with
Article 41(3), of quantified measures, where they lend themselves to
quantification; the relevant monitoring indicators in accordance withArticle 36;
(b) the definition of the types of final beneficiary of measures;
(c) the financing plan specifying for each measure, in accordance with
Articles 28 and 29, the financial allocation envisaged for thecontribution of the Fund concerned, the EIB where appropriate, andthe other existing financial instruments and the amount of eligiblepublic or equivalent funding and estimated private funding relating
to the contribution of the Funds; the percentage contribution of a
Fund to a measure shall be determined in accordance with Article 29and the total amount of Community funds allocated to the priorityconcerned.
This financing plan shall distinguish the funding planned for the
regions receiving transitional support.
The financing plan shall be accompanied by a description of the
arrangements for providing the co-financing for measures, takingaccount of the institutional, legal and financial systems of the
Member State concerned;
(d) measures intended to publicise the operational programme in
accordance with Article 46;
(e) a description of arrangements agreed between the Commission and
the Member State concerned for the computerised exchange, where
possible, of the data required to fulfil the management, monitoringand evaluation requirements of this Regulation.
Article 19
Single programming documents
1. Assistance under Objectives 2 and 3, and under Objective 1 as
specified in Article 15(1), shall, as a general rule, take the form of single
programming documents. In the case of Objectives 2 and 3,
Article 15(1)(c) shall apply.
2. An Objective 1 single programming document shall include all
relevant measures for economic and social conversion, the development
of employment through improving adaptability and skills of people,
having regard to the frame of reference referred to in Article 9(1)(c) andrural development and fisheries structures.
An Objective 2 single programming document shall provide coordina-
tion of all Community structural assistance including, in accordance
with Article 41(2) of Regulation (EC) No1257/1999, the coordination ofrural development measures pursuant to Article 33 of that Regulation,but excluding assistance for developing human resources granted underObjective 3, in all the areas covered by Objective 2.
An Objective 3 single programming document shall provide coordina-
tion of all Community structural assistance for the development ofhuman resources in the areas referred to in Article 5, excluding aid inthis area granted under Objective 2.
3. Each single programming document shall contain the following
elements:
(a) a statement of the strategy and priorities for joint Community and
national action; their specific objectives, quantified where they lend
themselves to quantification; an evaluation of the expected impact,including on the environmental situation, in accordance withArticle 41(2); an indication of how this strategy and these prioritieshave taken account of the indicative guidelines referred to inArticle 10(3), the economic policies, the strategy for developing1999R1260 — EN — 01.01.2000 — 001.001 — 24
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employment through improving the adaptability and skills of people
and, where appropriate, the regional policies of the Member Stateconcerned;
(b) a summary description of the measures planned to implement the
priorities, including the information needed to check the compliancewith aid schemes pursuant to Article 87 of the Treaty; whereappropriate, the nature of the measures required to prepare, monitorand evaluate the single programming document;
(c) an indicative financing plan specifying for each priority and each
year, in accordance with Articles 28 and 29, the financial allocationenvisaged for the contribution of each Fund, the EIB whereappropriate, and the other financial instruments — including, forinformation, the total amount from the EAGGF Guarantee Sectionfor the measures referred to in Article 33 of Regulation (EC)
No 1257/1999 — in so far as they contribute directly to the
financing plan, as well as the total amount of eligible public orequivalent and estimated private funding relating to the contributionof each Fund.
This financing plan shall distinguish the funding planned for the
regions receiving transitional support.
The total contribution of the Funds planned for each year shall be
compatible with the relevant financial perspective, taking account ofthe degressivity referred to in the third subparagraph of Article 7(3).
In the case of Objective 3, the financing plan shall indicate the
concentration of appropriations planned for the areas facing
structural, economic and social reconversion problems;
(d) the provisions for implementing a single programming document
shall include:
(i) the designation by the Member State of a managing authority
within the meaning of Article 9 responsible for managing the
single programming document in accordance with Article 34;
(ii) a description of the arrangements for managing the single
programming document;
(iii) a description of the systems for monitoring and evaluation,
including the role of the Monitoring Committee;
(iv) a definition of the procedures concerning the mobilisation and
circulation of funding to ensure that flows are transparent;
(v) a description of the specific arrangements and procedures for
checking on the single programming document;
(e) where appropriate, information on the resources required for
preparing, monitoring and evaluating assistance.
In accordance with Article 11, the single programming document shall
include the ex-anteverification of additionality for the relevant objective
or objectives agreed between the Member State and the Commission andappropriate information concerning the transparency of financial flows,in particular from the Member State concerned to the beneficiary
regions.
4. Each single programming document shall be supplemented by a
programme complement as defined in Article 9(m) and described in
Article 18(3).
CHAPTER III
COMMUNITY INITIATIVES
Article 20
Content
1. The Community initiatives shall cover the following fields:
(a) cross-border, transnational and interregional cooperation intended to
encourage the harmonious, balanced and sustainable development ofthe whole of the Community area (‘Interreg’);1999R1260 — EN — 01.01.2000 — 001.001 — 25
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(b) economic and social regeneration of cities and of urban neighbour-
hoods in crisis with a view to promoting a sustainable urbandevelopment (‘URBAN’);
(c) rural development (‘Leader’);
(d) transnational cooperation to promote new means of combating all
forms of discrimination and inequalities in connection with the
labour market (‘EQUAL’).
2. At least 2,5 % of the Structural Funds commitment appropriations
referred to in Article 7(1) shall be allocated to Interreg, under which due
attention should be given to cross-border activities, in particular in theperspective of enlargement, and for Member States which haveextensive frontiers with the applicant countries, as well as to improvedcoordination with the PHARE, TACIS and MEDA programmes. Dueattention shall also be given to cooperation with the outermost regions.
Due account shall be taken of the social and vocational integration of
asylum seekers in the framework of EQUAL.
3. Programmes approved within the framework of the Community
initiatives may cover areas other than those referred to in Articles 3 and4.
Article 21
Preparation, approval and implementation
1. In accordance with the procedures referred to in Articles 48 to 51
and after notifying them for information to the European Parliament, theCommission shall lay down guidelines describing, for each initiative, theaims, scope and the appropriate method of implementation. Thoseguidelines shall be published in the Official Journal of the European
Communities .
2. Each area referred to in Article 20(1) shall be financed by a single
Fund: the area referred to in paragraph 1(a) and (b) from the ERDF, thearea referred to in paragraph 1(c) from the EAGGF Guidance Section
and the area referred to in paragraph 1(d) from the ESF. The decision on
the contribution of a Fund may amplify the scope of each Fund asdefined in the Regulations specific to each Fund, but without broadeningit, to include all measures required to implement the Communityinitiative programme concerned.
3. On the basis of proposals drawn up in accordance with the
guidelines referred to in paragraph 1 and with Article 41(2) andsubmitted by the Member State(s), the Commission shall decide onCommunity initiative programmes in accordance with Article 28.
4. The Community initiative programmes shall be re-examined
following the mid-term evaluation referred to in Article 42 and amendedwhere required on application by the Member State(s) concerned or by
the Commission by agreement with the Member State(s).
5. The Community initiative programmes shall cover a period of
seven years, beginning on 1 January 2000.
CHAPTER IV
INNOVATIVE ACTIONS AND TECHNICAL ASSISTANCE
Article 22
Innovative actions
1. At the initiative of the Commission and following consultation of
the committees referred to in Articles 48 to 51 on the guidelines for thevarious types of innovative actions, subject to a ceiling of 0,40 % oftheir respective annual funding, the Funds may finance innovative
actions at Community level. These shall include studies, pilot projects
and exchanges of experience.
Such innovative actions shall contribute to the preparation of innovative
methods and practices designed to improve the quality of assistance1999R1260 — EN — 01.01.2000 — 001.001 — 26
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under Objectives 1, 2 and 3. They shall be implemented in a simple,
transparent fashion and in accordance with the principles of soundfinancial management.
2. Each field of action for pilot projects shall be financed by one fund
only. The decision on the contribution of a fund may amplify the scope
of each fund as defined in the Regulations specific to each fund, butwithout broadening it, to include all measures required to implement thepilot project concerned.
Article 23
Technical assistance
At the initiative or on behalf of the Commission and following
consultation of the committees referred to in Articles 48 to 51 on thedifferent types of measures, subject to a ceiling of 0,25 % of theirrespective annual allocation, the Funds may finance the preparatory,
monitoring, evaluation and checking measures necessary for imple-
menting this Regulation. These shall include:
(a) studies, including studies of a general nature, concerning the
operations of the Funds;
(b) measures of technical assistance, the exchange of experience and
information aimed at the partners, the final beneficiaries of
assistance from the Funds and the general public;
(c) the installation, operation and interconnection of computerised
systems for management, monitoring and evaluation;
(d) improvements in evaluation methods and exchange of information
on practices in this field.
Article 24
Approval of innovative actions and technical assistance
1. Making use of information on innovative actions from the Member
States concerned, the Commission shall appraise applications for acontribution from the Funds pursuant to Articles 22 and 23 on the basisof the following details:
(a) a description of the proposed assistance, its scope, including
geographical coverage, and specific aims;
(b) the bodies to be responsible for implementing the assistance and the
beneficiaries;
(c) the timetable and financing plan, including contributions from any
other source of Community finance;
(d) provisions to ensure efficient and correct implementation;
(e) any other information necessary to verify compatibility with
Community policies and with the guidelines referred to inArticle 10(3).
The Commission shall approve the contribution of the Funds when this
information enables it to appraise the application.
2. The Member States concerned shall be immediately notified by the
Commission following approval of an application.
3. The financial liability of the Member States within the meaning of
this Regulation shall not be engaged for the innovative actions referredto in Article 22 or the technical assistance measures referred to inArticle 23, without prejudice to their obligations arising out of theinstitutional arrangements specific to each Member State.1999R1260 — EN — 01.01.2000 — 001.001 — 27
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CHAPTER V
MAJOR PROJECTS
Article 25
Definition
As part of any assistance, the Funds may finance expenditure in respect
of major projects, i.e. those:
(a) which comprise an economically indivisible series of works
fulfilling a precise technical function and which have clearlyidentified aims; and
(b) whose total cost taken into account in determining the contribution
of the Funds exceeds EUR 50 million.
Article 26
Approval and implementation
1. During the implementation of assistance, where a Member State or
managing authority envisages the Funds contributing to a major project,
it shall inform the Commission in advance and provide the followinginformation:
(a) the body to be responsible for implementation;
(b) the nature of the investment and a description of it, its financial
volume and location;
(c) the timetable for implementing the project;
(d) a cost-benefit analysis, including financial costs and benefits, a risk
assessment and information on the economic viability of the project;
(e) plus:
— in the case of investment in infrastructure: the analysis of the
costs and the socio-economic benefits of the project, includingan indication of the anticipated rate of use, the foreseeable
impact on the development or conversion of the region
concerned, and the application of Community rules on publiccontracting,
— in the case of investment in production facilities: the analysis of
the market prospects in the sector concerned and the anticipatedreturn on the project,
(f) the direct and indirect effects on the employment situation, as far as
possible in the Community;
(g) information allowing an evaluation to be made of the environmental
impact and the implementation of the precautionary principle andthe principles that preventive action should be taken, thatenvironmental damage should as a priority be rectified at source
and that the polluter should pay and compliance with the
Community rules on the environment;
(h) information needed to assess compliance with competition rules,
inter alia rules on State aids;
(i) an indication of the influence of the contribution of the Funds on
whether the project will be implemented;
(j) the financing plan and the total financial resources expected from
the contribution of the Funds and any other source of Communityfinance.
2. The Commission shall appraise the project, consulting the EIB if
necessary, in the light of the following factors:
(a) the type of investment planned and, where applicable, the revenue
expected;
(b) the results of the cost-benefit analysis;
(c) the result of the evaluation of the impact on the environment;
(d) consistency with the priorities in the corresponding assistance;1999R1260 — EN — 01.01.2000 — 001.001 — 28
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(e) compliance with other Community policies;
(f) the expected economic and social benefits, particularly in terms of
employment, having regard to the financial resources deployed;
(g) the coordination of the financial instruments and the combination of
assistance and loans referred to in Article 10(2).
3. Within two months of receipt of the information referred to in
paragraph 1 or three months where consultation of the EIB provesnecessary, the Commission shall decide to confirm or amend the level ofCommunity assistance. If it considers that the project appears not tojustify either part or all of the contribution from the Funds,it may decideto withhold part or all of that contribution, stating the reasons for so
doing.
CHAPTER VI
GLOBAL GRANTS
Article 27
Global grants
1. Where implementation or management of part of assistance has
been entrusted to intermediaries in accordance with Article 9(i), such
intermediaries must provide guarantees of their solvency and proven
competence and experience in administrative and financial management.They must normally be established or represented in the region orregions concerned but may, in limited and justified circumstances, beestablished outside. They must have several years' experience in the
relevant field, operate in the public interest and adequately involve the
socio-economic interests directly affected by the implementation of theplanned measures.
2. The choice of a global grant shall appear in the corresponding
decision on the contribution of the Funds as a special implementing
provision as defined in Article 18(2)(d) and Article 19(3)(d). Theprocedures for the use of global grants shall be the subject of anagreement between the Member State or managing authority and theintermediary body concerned.
In the case of Community initiative programmes and innovative
measures, the procedures for the use of global grants shall be thesubject of an agreement between the Commission and the intermediarybody concerned. In the case of Community initiative programmes, theseprocedures must also be agreed with the Member States concerned. The
programme complement referred to in Article 18 shall not relate to that
part of the assistance bearing on the global grant.
3. The procedures for the use of the global grant shall detail in
particular:
(a) the measures to be implemented;
(b) the criteria for choosing beneficiaries;
(c) the conditions and rates of assistance from the Funds, including the
use of any interest accruing;
(d) the arrangements for monitoring, evaluating and ensuring the
financial control of the global grant;
(e) where applicable, any use of a bank guarantee, in which case the
Commission must be informed.1999R1260 — EN — 01.01.2000 — 001.001 — 29
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TITLE III
CONTRIBUTIONS AND FINANCIAL MANAGEMENT BY THE
FUNDS
CHAPTER I
FINANCIAL CONTRIBUTIONS BY THE FUNDS
Article 28
Decision on the contributions from the Funds
1. Provided that all the requirements of this Regulation are fulfilled,
the Commission shall adopt in a single decision the contributions of allthe Funds within five months of receipt of the application for assistance.The decision shall distinguish clearly the regions and areas receiving
transitional support, where applicable.
A maximum contribution from the Funds shall be set for each priority in
the assistance.
For a given period, a measure may not receive a financial contribution
from more than one fund at a time.
A measure or operation may benefit from a contribution from a
Structural Fund under only one of the objectives referred to in Article 1
at a time.
No operation may benefit simultaneously from a contribution from a
Fund under Objective 1, 2 or 3 and under a Community initiative.
No operation may benefit simultaneously from a contribution from a
Fund under Objective 1, 2 or 3 and under the EAGGF GuaranteeSection.
No operation may benefit simultaneously from a contribution from a
Fund under a Community initiative and under the EAGGF GuaranteeSection.
2. The contribution of the Funds to operational programmes under-
taken in implementing a Community support framework shall beconsistent with the financing plan laid down in the correspondingCommunity support framework, as set out in Article 17(2)(c).
3. In implementing measures, the contribution of the Funds shall
principally take the form of non-repayable direct assistance (hereinafter
referred to as ‘direct assistance’), as well as other forms, such as
repayable assistance, an interest-rate subsidy, a guarantee, an equityholding, a venture-capital holding or another form of finance.
Assistance repaid to the managing authority or to another public
authority shall be reallocated to the same purpose.
Article 29
Differentiation of the rates of contribution
1. The contribution of the Funds shall be differentiated in the light of
the following:
(a) the gravity of the specific problems, in particular of a regional or
social nature, to be tackled by the assistance;
(b) the financial capacity of the Member State concerned, taking into
account in particular its relative prosperity and the need to avoidexcessive increases in budget expenditure;
(c) within the framework of the objectives of the Funds set out in
Article 1, the importance attaching to the assistance and the
priorities from the Community viewpoint, where appropriate, for the
elimination of inequalities and the promotion of equality betweenmen and women and for the protection and improvement of theenvironment, principally through the application of the precau-tionary principle, of the principle of preventive action, and thepolluter-pays principle;1999R1260 — EN — 01.01.2000 — 001.001 — 30
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(d) the importance attaching to the assistance and priorities from the
regional and national viewpoint;
(e) the particular characteristics of the type of assistance and priority
concerned, to take account of the needs identified by the ex-ante
evaluation, in particular with regard to human resources andemployment;
(f) the optimum utilisation of financial resources in the financing plans,
including the combination of public and private resources, the usemade of appropriate financial instruments in accordance with
Article 10(2), and the choice of forms of financing as set out in
Article 28(3).
Where the contribution of the ESF is differentiated in accordance with
Article 16(1), this shall be done taking account of the needs identified by
theex-anteevaluation, notably in the field of human resources and
employment.
2. The contribution from the Funds shall be calculated in relation to
either the total eligible cost, or the total public or similar eligibleexpenditure (national, regional or local, and Community) under eachassistance.
3. The contribution of the Funds shall be subject to the following
ceilings:
(a) a maximum of 75 % of the total eligible cost and, as a general rule,
at least 50 % of eligible public expenditure in the case of measurescarried out in the regions covered by Objective 1. Where the regionsare located in a Member State covered by the Cohesion Fund, theCommunity contribution may rise, in exceptional and duly justifiedcases, to a maximum of 80 % of the total eligible cost and to a
maximum of 85 % of the total eligible cost for the outlying Greek
islands which are under a handicap due to their distant location. TheCommunity contribution for all the outermost regions may rise, inexceptional and duly justified cases, to a maximum of 85 % of thetotal eligible cost;
(b) a maximum of 50 % of the total eligible cost and, as a general rule,
at least 25 % of eligible public expenditure in the case of measures
carried out in areas covered by Objective 2 or 3.
In the case of investment in firms, the contribution of the Funds shall
comply with the ceilings on the rate of aid and on combinations of aid
set in the field of State aids.
4. Where the assistance concerned entails the financing of revenue-
generating investments, the contribution from the Funds to these
investments shall be determined in the light of their intrinsiccharacteristics, including the size of the gross self-financing marginwhich would normally be expected for the class of investmentsconcerned in the light of the macro-economic circumstances in whichthe investments are to be implemented, and without there being any
increase in the national budget effort as a result of the contribution by
the Funds.
In any event, the contribution of the Funds shall be subject to the
following ceilings:
(a) in the case of investment in infrastructure generating substantial net
revenue, the contribution may not exceed:
(i) 40 % of the total eligible cost in the regions covered by
Objective 1, which may be increased by not more than an extra10 % in the Member States covered by the Cohesion Fund;
(ii) 25 % of the total eligible cost in the areas covered by
Objective 2;
(iii) these rates may be increased by an amount for forms of finance
other than direct assistance, provided that this increase does notexceed 10 % of the total eligible cost;1999R1260 — EN — 01.01.2000 — 001.001 — 31
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(b) in the case of investments in firms, the contribution may not exceed:
(i) 35 % of the total eligible cost in the regions covered by
Objective 1;
(ii) 50 % of the total eligible cost in the outermost regions and,
exceptionally, also in the smaller Aegean islands in the case ofinvestments in accordance with Regulation (EC) No 1257/1999,in the case of investments in small and medium-sized firms;
►
M1(iii)◄15 % of the total eligible cost in the areas covered
by Objective 2;
►M1(iv)◄in the case of investments in small and medium-
sized undertakings, these rates may be increased by an amount
for forms of finance other than direct assistance, provided thatthis increase does not exceed 10 % of the total eligible cost.
5. References in paragraphs 3 and 4 to the regions and areas covered
by Objectives 1 and 2 shall also be construed as references to regions or
areas receiving on the one hand transitional support pursuant to
Article 6(1) and support pursuant to Article 7(4) and on the otherhand pursuant to Article 6(2) respectively.
6. The measures carried out on the Commission's initiative referred to
in Articles 22 and 23 may be financed at a rate of 100 % of the total
cost. The measures carried out on behalf of the Commission referred toin Article 23 shall be financed at a rate of 100 % of the total cost.
7. The rates in this Article shall apply to technical assistance
measures within the framework of programming and to the Community
initiatives.
Article 30
Eligibility
1. Expenditure in respect of operations shall be eligible for a
contribution from the Funds only if these operations form part of theassistance concerned.
2. Expenditure may not be considered eligible for a contribution from
the Funds if it has actually been paid by the final beneficiary before the
date on which the application for assistance reaches the Commission.That date shall constitute the starting point for the eligibility ofexpenditure.
The final date for the eligibility of expenditure shall be laid down in the
decision to grant a contribution from the Funds. It shall relate to
payments made by the final beneficiaries. It may be extended by theCommission at the duly justified request of the Member State inaccordance with Articles 14 and 15.
3. The relevant national rules shall apply to eligible expenditure
except where, as necessary, the Commission lays down common ruleson the eligibility of expenditure in accordance with the procedurereferred to in Article 53(2).
4. The Member States shall ensure that an operation retains the
contribution from the Funds only if that operation does not, within five
years of the date of the decision of the competent national authorities orthe managing authority on the contribution of the Funds, undergo asubstantial modification:
(a) affecting its nature or its implementation conditions or giving to a
firm or a 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 of location in a productiveactivity.
The Member States shall inform the Commission of any such
modification. Where such a modification occurs, Article 39 shall apply.1999R1260 — EN — 01.01.2000 — 001.001 — 32
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CHAPTER II
FINANCIAL MANAGEMENT
Article 31
Budget commitments
1. Community budget commitments shall be made on the basis of the
decision to grant a contribution from the Funds.
2. Commitments in respect of assistance to be carried out over a
period of two or more years shall be as a general rule effected annually.
The first commitment shall be made when the Commission lays down itsdecision approving the assistance. Subsequent commitments shall beeffected as a general rule by 30 April each year.
The Commission shall automatically decommit any part of a commit-
ment which has not been settled by the payment on account or for whichit has not received an acceptable payment application, as defined in
Article 32(3), by the end of the second year following the year of
commitment or, where appropriate and for the amounts concerned,following the date of a subsequent Commission decision necessary inorder to authorise a measure or an operation or by the end of thedeadline for the transmission of the final report referred to inArticle 37(1); the contribution from the Funds to that assistance shall
be reduced by that amount.
The period for automatic decommitment referred to in the second
subparagraph shall cease to run for the part of the commitment
corresponding to operations which, at the specified date of decommit-ment, are the subject of a judicial procedure, or an administrative appealhaving suspensory effects, subject to the Commission receiving priorinformation giving reasons from the Member State concerned and to
information being issued by the Commission.
In any case, the Commission shall in good time inform the Member
State and the paying authority whenever there is a risk of application of
the automatic decommitment provided for in the second subparagraph.
If this Regulation enters into force after 1 January 2000, the period for
automatic decommitment referred to in the second subparagraph shall beextended for the first commitment by the number of months between1 January 2000 and the date of the decision onthe contributions from theFunds referred to in Article 28.
3. For assistance to be carried out over a period of less than two years
the total amount of the contribution from the Funds shall be committed
when the Commission adopts its decsion granting a contribution from
the Funds.
Article 32
Payments
1. Payment by the Commission of the contribution from the Funds
shall be made, in accordance with the corresponding budget commit-ments, to the paying authority as defined in Article 9(o).
Payments shall be posted to the earliest open commitment made
pursuant to Article 31.
Payments may take the form of payments on account, interim payments
or payments of the final balance. Interim payments and payments of the
balance shall relate to expenditure actually paid out, which must
correspond to payments effected by the final beneficiaries, supported byreceipted invoices or accounting documents of equivalent probativevalue.
Subject to available funding, the Commission shall make interim
payments within no more than two months of receipt of an acceptablepayment application, as described in paragraph 3.1999R1260 — EN — 01.01.2000 — 001.001 — 33
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The paying authority shall ensure that final beneficiaries receive
payment of their contribution from the Funds as quickly as possibleand in full. No deduction, retention or further specific charge which
would reduce these amounts shall be made.
2. When the first commitment is made, the Commission shall make a
payment on account to the paying authority. This payment on account
shall be 7 % of the contribution from the Funds to the assistance in
question. In principle, it may be subdivided over two budget years atmost depending on the availability of budget funds.
Throughout the lifetime of assistance, the paying authority shall use the
payment on account to pay the Community contribution to expenditurerelating to this assistance.
All or part of a payment on account, depending on progress towards
implementation of the assistance, shall be repaid to the Commission bythe paying authority if no payment application is sent to the Commissionwithin 18 months of its decision to grant a contribution from the Funds.If any interest is earned on the payment on account it shall be allocated
by the paying authority to the form of assistance concerned.
3. Interim payments shall be made by the Commission to reimburse
expenditure actually paid under the Funds as certified by the paying
authority. Such payments shall be made at the level of each assistance
and calculated at the level of measures contained in the financing plan ofthe programme complement. They shall be subject to the followingconditions:
(a) the programme complement containing the information specified in
Article 18(3) has been presented to the Commission;
(b) the latest annual implementation report due, containing the
information specified in Article 37 has been forwarded to theCommission;
(c) the mid-term evaluation of the assistance referred to in Article 42,
when due, has been forwarded to the Commission;
(d) decisions taken by the managing authority and the Monitoring
Committee are consistent with the total amount of the contributionfrom the Funds granted to the priorities concerned;
(e) any recommendations as referred to in Article 34(2) have been acted
upon within the specified period, or reasons have been commu-nicated by the Member State to explain why no measure has beentaken, where those recommendations are intended to remedy serious
shortcomings in the monitoring or management system which
undermine proper financial management of the assistance; anyrequests for corrective measures as referred to in Article 38(4) havebeen acted upon, if the application relates to the measure ormeasures concerned;
(f) no suspension of payments under the first subparagraph of
Article 39(2) has been decided, and no decision has been taken by
the Commission to embark on an infringement procedure within themeaning of Article 226 of the Treaty concerning the measure(s) thatis or are the subject of the application in question.
The Member State and the paying authority shall be informed
immediately by the Commission if one of these conditions is notfulfilled and the payment application is therefore not acceptable andthey shall take the necessary steps to remedy the situation.
Member States shall ensure that, as far as possible, applications for
interim payments are presented to the Commission in batches threetimes a year, the last application being presented no later than31 October.
Applications for interim payments shall distinguish, for each priority,
the expenditure incurred in regions and areas receiving transitionalsupport.1999R1260 — EN — 01.01.2000 — 001.001 — 34
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The combined total of the payments referred to in paragraph 2 and in
this paragraph which are made in respect of an assistance shall notexceed 95 % of the contribution from the Funds to that assistance.
4. The final balance of the assistance shall be paid if:
(a) the paying authority submits to the Commission within six months
of the deadline for payment laid down in the decision granting acontribution from the Funds, a certified statement of expenditureactually paid;
(b) the final report on implementation has been submitted to and
approved by the Commission;
(c) the Member State has sent the Commission the statement referred to
in Article 38(1)(f).
5. The final payment of the balance may no longer be corrected at the
request of the Member State if the paying authority has not sent an
application to the Commission within nine months from the date of
transfer of the final balance.
6. The Member States shall designate the authorities empowered to
issue the certificates and declarations referred to in paragraphs 3 and 4.
7. No later than 30 April of each year, the Member States shall send
the Commission their updated forecasts of applications for payment forthe current year and the forecast for the following year.
8. The Commission shall lay down appropriate payment procedures,
consistent with the objectives of these provisions, for the innovative
measures referred to in Article 22 and the measures referred to inArticle 23 and inform the committees referred to in Articles 48 to 51.
Article 33
Use of the euro
Commission decisions, commitments and payments shall be denomi-
nated and carried out in euro in accordance with the arrangements to bedrawn up by the Commission under the procedure referred to inArticle 53(2).
TITLE IV
EFFECTIVENESS OF ASSISTANCE FROM THE FUNDS
CHAPTER I
MONITORING
Article 34
Management by the managing authority
1. Without prejudice to Article 8(3), the managing authority as
defined in Article 9(n) shall be responsible for the efficiency and
correctness of management and implementation, and in particular for:
(a) setting up a system to gather reliable financial and statistical
information on implementation, for the monitoring indicatorsreferred to in Article 36, and for evaluation in compliance withArticles 42 and 43; and for forwarding this data in accordance witharrangements agreed between the Member State and the Commis-
sion, using where possible computer systems permitting the
exchange of data with the Commission, as defined inArticle 18(3)(e);
(b) adjustment in accordance with paragraph 3 and the implementation
of the programme complement within the meaning of Article 18(3),
without prejudice to Article 35;
(c) drawing up and, after obtaining the approval of the Monitoring
Committee, submitting to the Commission the annual implementa-tion report;1999R1260 — EN — 01.01.2000 — 001.001 — 35
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(d) organising, in cooperation with the Commission and the Member
State, the mid-term evaluation referred to in Article 42;
(e) ensuring that those bodies taking part in the management and
implementation of the assistance maintain either a separate
accounting system or an adequate accounting code for all
transactions relating to the assistance;
(f) ensuring the correctness of operations financed under the assistance,
particularly by implementing internal controls in keeping with theprinciples of sound financial management and acting in response toany observations or requests for corrective measures adoptedpursuant to Article 38(4), first subparagraph, or recommendations
for adjustment made under paragraph 2 of this Article in accordance
with the provisions of those Articles;
(g) ensuring compliance with Community policies as stipulated in
Article 12; in the context of the application of Community rules onthe award of public contracts, notices sent for publication in theOfficial Journal of the European Communities shall specify those
projects in respect of which a contribution from the Funds has been
applied for or granted;
(h) compliance with the obligations concerning information and
publicity referred to in Article 46.
Without prejudice to the provisions of this Regulation, in carrying out its
tasks the managing authority shall act in full compliance with the
institutional, legal and financial systems of the Member State concerned.
2. Every year, when the annual implementation report referred to in
Article 37 is submitted, the Commission and the managing authority
shall review the main outcomes of the previous year, in accordance with
arrangements to be defined by agreement with the Member State and themanaging authority concerned.
After this review, the Commission may make comments to the Member
State and the managing authority. The Member State shall inform the
Commission of the action taken on these comments. Where in dulysubstantiated cases the Commission considers that the measures takenare inadequate, it may make recommendations to the Member State andthe managing authority for adjustments aimed at improving the
effectiveness of the monitoring or management arrangements for the
assistance, together with the reasons for any such recommendations. If itreceives any such recommendations, the managing authority shallsubsequently demonstrate the steps taken to improve the monitoring ormanagement arrangements or it shall explain why it has not taken any.
3. The managing authority shall, at the request of the Monitoring
Committee or on its own initiative, adjust the programme complement,without changing the total amount of the contribution from the Fundsgranted to the priority concerned nor its specific targets. After approval
by the Monitoring Committee, it shall inform the Commission of the
adjustment within one month.
Any amendments to the elements contained in the decision on the
contribution of the Funds shall be decided by the Commission, in
agreement with the Member State concerned, within four months of
delivery of the Monitoring Committee's approval.
Article 35
Monitoring Committees
1. Each Community support framework or single programming
document and each operational programme shall be supervised by a
Monitoring Committee.
Monitoring Committees shall be set up by the Member State, in
agreement with the managing authority after consultation with the
partners. The partners shall promote the balanced participation of
women and men.
The Monitoring Committees shall be set up no more than three months
after the decision on the contribution of the Funds. The Monitoring1999R1260 — EN — 01.01.2000 — 001.001 — 36
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Committees shall act under the authority and within the legal
jurisdiction of the Member State.
2. A representative of the Commission and, where appropriate, of the
EIB, shall participate in the work of the Monitoring Committee in anadvisory capacity.
The Monitoring Committee shall draw up its own rules of procedure
within the institutional, legal and financial framework of the Member
State concerned and agree them with the managing authority.
In principle, the Monitoring Committee shall be chaired by a
representative of the Member State or the managing authority.
3. The Monitoring Committee shall satisfy itself as to the effective-
ness and quality of the implementation of assistance. To that end:
(a) pursuant to Article 15, it shall confirm or adjust the programme
complement, including the physical and financial indicators to beused to monitor the assistance. Its approval must be obtained beforeany further adjustment is made;
(b) it shall consider and approve the criteria for selecting the operations
financed under each measure within six months of approval of theassistance;
(c) it shall periodically review progress made towards achieving the
specific objectives of the assistance;
(d) it shall examine the results of implementation, particularly
achievement of the targets set for the different measures and themid-term evaluation referred to in Article 42;
(e) it shall consider and approve the annual and final implementation
reports before they are sent to the Commission;
(f) it shall consider and approve any proposal to amend the contents of
the Commission decision on the contribution of the Funds;
(g) it may in any event propose to the managing authority any
adjustment or review of the assistance likely to make possible theattainment of the objectives referred to in Article 1 or to improve themanagement of assistance, including in respect of financial
management. Any adjustment to the assistance shall be made in
accordance with Article 34(3).
Article 36
Monitoring indicators
1. The managing authority and the Monitoring Committee shall carry
out the monitoring by reference to physical and financial indicators
specified in the operational programme, single programming document,or programme complement. In drawing up their indicators, they shouldtake into account the indicative methodology and list of examples ofindicators published by the Commission, as well as a categorisation offields of intervention to be proposed by the Commission upon entry into
force of this Regulation. The indicators shall relate to the specific
character of the assistance concerned, its objectives and the socio-economic, structural and environmental situation of the Member Stateconcerned and its regions, as appropriate, and shall take account, whereappropriate, of the existence of regions or areas receiving transitional
support. These indicators shall include, in particular, those used for
allocating the reserve referred to in Article 44.
2. These indicators shall show, for the assistance in question:
(a) the specific targets, quantified where they lend themselves to
quantification, for the measures and priorities, and their mutual
consistency;
(b) the stage reached in the assistance in terms of physical implementa-
tion, results and, as soon as practicable, its impact at the appropriate
level (priority or measure);
(c) the progress of the financing plan.1999R1260 — EN — 01.01.2000 — 001.001 — 37
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Where the nature of the assistance permits, the statistics shall be broken
down by sex and by the size of the recipient undertakings.
3. The financial and progress indicators shall be such that the
information set out in paragraph 2(a), (b) and (c) can be identifiedseparately for major projects.
Article 37
Annual and final implementation reports
1. For multiannual assistance, the managing authority shall, within
six months of the end of each full calendar year of implementation,submit to the Commission an annual implementation report as providedfor in Article 34(1)(c). A final report shall be submitted to theCommission at the latest six months after the final date of eligibility of
the expenditure.
For all assistance to be implemented over a period of less than two
years, the managing authority shall submit only a final report to theCommission. This shall be submitted within six months of the lastpayment made by the paying authority.
The report shall be examined and approved by the Monitoring
Committee before it is sent to the Commission.
Once the Commission has received an annual implementation report, it
shall indicate within a period of two months if the report is considered
unsatisfactory, giving its reasons; otherwise, the report shall be deemed
to be accepted. In the case of a final report the Commission shallrespond within a period of five months from its receipt of the report.
2. All annual and final implementation reports shall include the
following information:
(a) any change in general conditions which is of relevance to the
implementation of the assistance, in particular the main socio-economic trends, changes in national, regional or sectoral policies orin the frame of reference referred to in Article 9(c) and, whereapplicable, their implications for the mutual consistency of
assistance from the different Funds and consistency between Fund
assistance and that from other financial instruments;
(b) the progress in the implementation of priorities and measures for
each of the Funds in relation to their specific targets, with a
quantification, wherever and whenever they lend themselves toquantification, of the physical indicators and indicators of resultsand of impact referred to in Article 36 at the appropriate level(priority or measure);
(c) the financial implementation of the assistance, summarising for each
measure the total expenditure actually paid out by the payingauthority and a record of the total payments received from the
Commission and quantifying the financial indicators referred to in
Article 36(2)(c); financial implementation in the areas receivingtransitional support shall be presented separately in respect of eachpriority; financial implementation of the EAGGF Guarantee Sectionfor the measures referred to in Article 33 of Regulation (EC)No 1257/1999 shall be presented at the level of the total amount of
the financial implementation;
(d) the steps taken by the managing authority and the Monitoring
Committee to ensure the quality and effectiveness of implementa-
tion, in particular:
(i) monitoring, financial control and evaluation measures,
including data collection arrangements;
(ii) a summary of any significant problems encountered in
managing the assistance and any measures taken, includingaction on recommendations for adjustments made pursuant toArticle 34(2) or requests for corrective measures pursuant toArticle 38(4);
(iii) the use made of technical assistance;1999R1260 — EN — 01.01.2000 — 001.001 — 38
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(iv) the measures taken to ensure publicity for the assistance in
accordance with Article 46;
(e) the steps taken to ensure compatibility with Community policies as
stipulated in Article 12 and to ensure coordination of all the
Community structural assistance referred to in Article 17(1) and the
second subparagraph of Article 19(2);
(f) a separate section, where appropriate, on the progress and financing
of major projects and global grants.
CHAPTER II
FINANCIAL CONTROL
Article 38
General provisions
1. Without prejudice to the Commission's responsibility for imple-
menting the general budget of the European Communities, MemberStates shall take responsibility in the first instance for the financial
control of assistance. To that end, the measures they take shall include:
(a) verifying that management and control arrangements have been set
up and are being implemented in such a way as to ensure that
Community funds are being used efficiently and correctly;
(b) providing the Commission with a description of these arrangements;
(c) ensuring that assistance is managed in accordance with all the
applicable Community rules and that the funds placed at their
disposal are used in accordance with the principles of sound
financial management;
(d) certifying that the declarations of expenditure presented to the
Commission are accurate and ensuring that they result fromaccounting systems based on verifiable supporting documents;
(e) preventing, detecting and correcting irregularities, notifying these to
the Commission, in accordance with the rules, and keeping theCommission informed of the progress of administrative and legal
proceedings;
(f) presenting to the Commission, when each assistance is wound up, a
declaration drawn up by a person or department having a function
independent of the designated managing authority. This declarationshall summarise the conclusions of the checks carried out duringprevious years and shall assess the validity of the application forpayment of the final balance and the legality and regularity of the
transactions covered by the final certificate of expenditure. The
Member States may attach their own opinion to this certificate ifthey consider it necessary;
(g) cooperating with the Commission to ensure that Community funds
are used in accordance with the principles of sound financialmanagement;
(h) recovering any amounts lost as a result of an irregularity detected
and, where appropriate, charging interest on late payments.
2. The Commission in its responsibility for the implementation of the
general budget of the European Communities shall ensure that MemberStates have smoothly functioning management and control systems sothat Community funds are efficiently and correctly used.
To that end, without prejudice to checks carried out by the Member
States in accordance with national laws, regulations and administrativeprovisions, Commission officials or servants may, in accordance witharrangements agreed with the Member State in the framework of
cooperation described in paragraph 3, carry out on-the-spot checks,
including sample checks, on the operations financed by the Funds andon management and control systems with a minimum of one workingday's notice. The Commission shall give notice to the Member Stateconcerned with a view to obtaining all the assistance necessary. Officialsor servants of the Member State concerned may take part in such checks.1999R1260 — EN — 01.01.2000 — 001.001 — 39
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The Commission may require the Member State concerned to carry out
an on-the-spot check to verify the correctness of one or moretransactions. Commission officials or servants may take part in such
checks.
3. The Commission and the Member States shall on the basis of
bilateral administrative arrangements cooperate to coordinate plans,
methods and implementation of checks so as to maximise the usefulness
of those carried out. They shall immediately exchange the results of thechecks carried out.
At least once a year and, in any event, before the annual review provided
for in Article 34(2) the following shall be examined and evaluated:
(a) the results of the checks carried out by the Member State and the
Commission;
(b) any comments made by other national or Community control bodies
or institutions;
(c) the financial impact of the irregularities noted, the steps already
taken or still required to correct them and, where necessary,adjustments to the management and control systems.
4. Following this examination and evaluation and without prejudice
to the measures to be taken immediately by the Member State under thisArticle and Article 39, the Commission may make observations,particularly regarding the financial impact of any irregularities detected.
These observations shall be addressed to the Member State and the
managing authority of the assistance concerned. The observations shallbe accompanied, where necessary, byrequests for corrective measures toremedy the management shortcomings found and correct thoseirregularities detected which have not already been corrected. The
Member State shall have the opportunity to comment on these
observations.
Where, following or in the absence of comments from the Member
State, the Commission adopts conclusions, the Member State shall take
the necessary steps within the deadline set to comply with theCommission's requests and inform the Commission of its actions.
5. Without prejudice to this Article, the Commission, after due
verification, may suspendall or part ofan interim payment if it finds that
the expenditure concerned is linked to a serious irregularity which hasnot been corrected and that immediate action is needed. TheCommission shall inform the Member State concerned of the actiontaken and the reasons for it. If, after five months, the reasons for the
suspension remain or the Member State concerned has not notified the
Commission of the measures taken to correct the serious irregularity, theprovisions laid down under Article 39 shall apply.
6. For a period of three years, unless otherwise decided in the
bilateral administrative arrangements, following the payment by theCommission of the final balance in respect of any assistance, theresponsible authorities shall keep available for the Commission all thesupporting documents (either the originals or versions certified to be inconformity with the originals on commonly accepted data carriers)
regarding expenditure and checks on the assistance concerned. This
period shall be interrupted either in the case of legal proceedings or atthe duly motivated request of the Commission.
Article 39
Financial corrections
1. The Member States shall, in the first instance, bear the
responsibility for investigating irregularities, acting upon evidence ofany major change affecting the nature or conditions for theimplementation or supervision of assistance and making the financialcorrections required.
The Member State shall make the financial corrections required in
connection with the individual or systemic irregularity. The correctionsmade by the Member State shall consist in cancelling all or part of the1999R1260 — EN — 01.01.2000 — 001.001 — 40
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Community contribution. The Community funds released in this way
may be re-used by the Member State for the assistance concerned, incompliance with the arrangements to be defined pursuant to
Article 53(2).
2. If, after completing the necessary verifications, the Commission
concludes that:
(a) a Member State has not complied with its obligations under
paragraph 1; or
(b) all or part of an operation justifies neither part nor the whole of the
contribution from the Funds; or
(c) there are serious failings in the management or control systems
which could lead to systemic irregularities;
the Commission shall suspend the interim payments in question and,
stating its reasons, request that the Member State submit its commentsand, where appropriate, carry out any corrections, within a specifiedperiod of time.
If the Member State objects to the observations made by the
Commission, the Member State shall be invited to a hearing by the
Commission, in which both sides in cooperation based on the
partnership make efforts to reach an agreement about the observationsand the conclusions to be drawn from them.
3. At the end of the period set by the Commission, the Commission
may, if no agreement has been reached and the Member State has notmade the corrections and taking account of any comments made by theMember State, decide within three months to:
(a) reduce the payment on account referred to in Article 32(2); or
(b) make the financial corrections required by cancelling all or part of
the contribution of the Funds to the assistance concerned.
The Commission shall when deciding the amount of a correction take
account, in compliance with the principle of proportionality, of the typeof irregularity or change and the extent and financial implications of theshortcomings found in the management or control systems of theMember States.
In the absence of a decision to do either (a) or (b) the interim payments
shall immediately cease to be suspended.
4. Anysum received unduly and to be recovered shall be repaid to the
Commission, together with interest on account of late payment.
5. This Article shall apply without prejudice to Article 32.
CHAPTER III
EVALUATION
Article 40
General provisions
1. In order to gauge its effectiveness, Community structural
assistance shall be the subject of ex-ante, mid-term and ex-post
evaluation designed to appraise its impact with respect to the objectivesset out in Article 1 and to analyse its effects on specific structuralproblems.
2. The effectiveness of the operations of the Funds shall be measured
by the following criteria:
(a) their overall impact on the goals set out in Article 158 of the Treaty,
and in particular the strengthening of the economic and social
cohesion of the Community;
(b) the impact of the priorities proposed in the development plans and of
the priorities incorporated in each Community support frameworkand in each case of assistance.1999R1260 — EN — 01.01.2000 — 001.001 — 41
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3. The competent authorities of the Member States and the
Commission shall assemble the appropriate resources and collect thedata required to ensure that this evaluation can be carried out in the most
effective manner. In this connection, evaluation shall make use of the
various particulars that the monitoring arrangements may yield,supplemented where necessary by the gathering of information toimprove its relevance.
On the initiative of the Member States or the Commission, after
informing the Member State concerned, supplementary evaluations, ifappropriate on a specific topic, may be launched with a view toidentifying transferable experience.
4. The results of the evaluation shall be made available to the public,
on request. As regards the results of the evaluation provided for inArticle 42, the Monitoring Committee's agreement shall be requiredaccording to the institutional arrangements of each Member State.
5. The evaluation procedures shall be laid down in the Community
support frameworks and forms of assistance.
Article 41
Ex-ante evaluation
1. The purpose of ex-anteevaluation shall be to provide a basis for
preparing the development plans, assistance and programme comple-
ment of which it shall form part.
Ex-ante evaluation shall be the responsibility of the authorities
responsible for preparing the plans, assistance and programme comple-
ment.
2. For the preparation of plans and assistance ex-anteevaluation shall
involve an analysis of the strengths, weaknesses and potential of theMember State, region or sector concerned. In the light of the criteria
listed in Article 40(2)(a) it shall assess the consistency of the strategy
and targets selected with the specific features of the regions or areasconcerned, including demographic trends, and the expected impact ofthe planned priorities for action, quantifying their specific targets inrelation to the starting situation, where they lend themselves thereto.
Theex-anteevaluation shall take into account, amongst other things, the
situation in terms of competitiveness and innovation, small and medium-sized enterprises, employment and the labour market having regard tothe European employment strategy, the environment and equality
between men and women, and it shall include in particular:
(a) anex-anteevaluation of the social and economic situation, mainly
trends in the national labour market, including regions encounteringparticular employment problems and of the overall strategy in the
field of human resource development and the way in which this
strategy is linked to the national employment strategy as set out inthe national action plans;
(b) anex-anteevaluation of the environmental situation of the region
concerned, in particular of those environmental sectors which willpresumably be considerably affected by the assistance; thearrangements to integrate the environmental dimension into the
assistance and how far they fit in with existing short- and long-term
national, regional and local objectives (e.g. environmental manage-ment plans); the arrangements for ensuring compliance with theCommunity rules on the environment. The ex-anteevaluation shall
give a description, quantified as far as possible, of the existingenvironmental situation and an estimate of the expected impact of
the strategy and assistance on the environmental situation;
(c) anex-anteevaluation of the situation in terms of equality between
men and women with regard to labour market opportunities andtreatment at work, including the specific constraints on each group;an estimate of the expected impact of the strategy and assistance,particularly on the integration of women and men into the labourmarket, on education and vocational training, on the establishment1999R1260 — EN — 01.01.2000 — 001.001 — 42
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of women in business and on the reconciliation of family and
working life.
Theex-anteevaluation shall verify the relevance of the proposed
implementing and monitoring arrangements, consistency with Commu-
nity policies and how far the indicative guidance referred to inArticle 10(3) has been taken into account.
It shall take account of results from evaluations of earlier programming
periods.
3. evaluation of the measures in the programme complement shall
demonstrate consistency with the aims of the corresponding priorities,
quantify their specific targets where the priorities lend themselves
thereto, and subsequently verify the relevance of the selection criteria, asprovided for pursuant to Article 35(3)(b).
Article 42
Mid-term evaluation
1. Mid-term evaluation shall examine, in the light of the ex-ante
evaluation, the initial results of the asssistance, their relevance and theextent to which the targets have been attained. It shall also assess the usemade of financial resources and the operation of monitoring and
implementation.
2. Mid-term evaluation shall be carried out under the responsibility of
the managing authority, in cooperation with the Commission and theMember State. It shall cover each Community support framework andeach assistance. It shall be carried out by an independent assessor, besubmitted to the Monitoring Committee for the Community support
framework or assistance concerned in accordance with Article 35(3),
and then sent to the Commission, as a general rule three years afteradoption of the Community support framework or assistance, and nolater than 31 December 2003, with a view to the revision referred to inArticle 14(2).
3. The Commission shall examine the relevance and quality of the
evaluation on the basis of criteria defined beforehand by the
Commission and the Member State in partnership, with a view toreviewing the assistance and allocating the reserve referred to inArticle 44.
4. As a continuation of mid-term evaluation, it shall be updated for
each Community support framework and assistance and completed no
later than 31 December 2005 in order to prepare for subsequent
assistance operations.
Article 43
Ex-post evaluation
1. On the basis of the evaluation results already available, ex-post
evaluation shall cover the utilisation of resources and the effectivenessand efficiency of the assistance and its impact and shall drawconclusions regarding policy on economic and social cohesion. It shallcover the factors contributing to the success or failure of implementation
and the achievements and results, including their sustainability.
2.Ex-postevaluation shall be the responsibility of the Commission,
in collaboration with the Member State and the managing authority. Itshall cover the assistance and be carried out by independent assessors. Itshall be completed not later than three years after the end of theprogramming period.1999R1260 — EN — 01.01.2000 — 001.001 — 43
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CHAPTER IV
PERFORMANCE RESERVE
Article 44
Allocation of the performance reserve
1. Each Member State, in close consultation with the Commission,
shall assess under each objective and not later than 31 December 2003
the performance of each of their operational programmes or single
programming documents on the basis of a limited number of monitoringindicators reflecting effectiveness, management and financial imple-mentation and measuring the mid-term results in relation to theirspecific initial targets.
These indicators shall be decided by the Member State in close
consultation with the Commission taking account of all or part of an
indicative list of indicators proposed by the Commission and shall bequantified in the existing different annual implementation reports as wellas the mid-term evaluation report. The Member States shall beresponsible for their application.
2. At mid-term and not later than 31 March 2004, the Commission
shall allocate, in close consultation with the Member States concerned,
under each objective, on the basis of proposals from each Member State,taking account of its specific institutional features and their corre-sponding programming, the commitment appropriations referred to inArticle 7(5) to the operational programmes or single programmingdocuments or their priorities which are considered to be successful. The
operational programmes or single programming documents shall be
adapted in accordance with Articles 14 and 15.
TITLE V
REPORTS AND PUBLICITY
Article 45
Reports
1. Pursuant to Article 159 of the Treaty, the Commission shall submit
a report at three-yearly intervals to the European Parliament, theCouncil, the Economic and Social Committee and the Committee of the
Regions on the progress made towards economic and social cohesion
and the contribution made to this by the Funds, the Cohesion Fund, theEIB and other financial instruments. This report shall review inparticular:
(a) progress in achieving economic and social cohesion, including the
socio-economic situation of the regions and any changes observed,
and an analysis of direct investment flows and their impact on the
Community employment situation;
(b) the role of the Funds, the Cohesion Fund, the EIB and other
financial instruments as well as the impact of other Community and
national policies in accomplishing this process;
(c) any proposals concerning Community measures and policies which
may need to be adopted in order to strengthen economic and socialcohesion.
2. Before 1 November of each year, the Commission shall forward to
the European Parliament, the Council, the Economic and Social
Committee and the Committee of the Regions a report on theimplementation of this Regulation during the preceding year. Thisreport shall review in particular:
(a) the activities of each fund, the utilisation of their budget resources
and the concentration of assistance, the deployment of the other1999R1260 — EN — 01.01.2000 — 001.001 — 44
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financial instruments for which the Commission has responsibility
and the concentration of their resources; this review shall include:
— an annual breakdown by Member State of appropriations
committed and paid in respect of each fund, includingCommunity initiatives;
— an annual evaluation of innovative actions and technical
assistance;
(b) the coordination of assistance from the Fundsamong themselves and
with the assistance granted by the EIB and the other existing
financial instruments;
(c) as soon as they are available, the results of the evaluations referred
to in Article 42 — indicating any adjustments to the assistance —
and in Article 43, and an evaluation of the consistency of measures
taken by the Funds with the Community policies referred to inArticle 12;
(d) a list of the major projects to which the Funds have contributed;
(e) the results of checks carried out by the Commission in accordance
with Article 38(2) and the lessons to be drawn from them, including
an indication of the number of recorded irregularities, the amounts
in question and the financial corrections made in respect ofArticle 39(2);
(f) information on the opinions of committees delivered in accordance
with Articles 48 to 51.
Article 46
Information and publicity
1. For the purposes of consultation as referred to in Article 15(1),
Member States shall ensure that publicity is given to development plans.
2. Without prejudice to Article 23(1), the managing authority shall be
responsible for ensuring that publicity is given to the package andparticularly for informing:
(a) potential final beneficiaries, trade and professional bodies, the
economic and social partners, bodies promoting equality between
men and women and the relevant non-governmental organisationsabout the opportunities afforded by the assistance;
(b) the general public about the role played by the Community in the
assistance concerned and its results.
3. The Member States shall consult the Commission and in
accordance with Article 37(2) inform it each year of the initiativestaken for the purposes set out in paragraphs 1 and 2 of this Article.
TITLE VI
COMMITTEES
Article 47
General provisions
1. In implementing this Regulation, the Commission shall be assisted
by four committees:
(a) the Committee on the Development and Conversion of Regions;
(b) the Committee pursuant to Article 147 of the Treaty;
(c) the Committee on Agricultural Structures and Rural Development;
(d) the Committee on Structures for Fisheries and Aquaculture.
2. Where the Committees mentioned in paragraph 1(a), (c) and (d)
are acting as Consultative Committees pursuant to Articles 48, 50 and 51
respectively, the following procedure applies:
— the Commission representative shall submit to the committee a draft
of the measure to be taken,1999R1260 — EN — 01.01.2000 — 001.001 — 45
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— the committee shall deliver its opinion on this draft within a time
limit which the chairman may lay down according to the urgency ofthe matter; the matter may be put to a vote where appropriate,
— its opinions shall be entered in the minutes; each Member State shall
in addition have the right to ask for its position to be included in theminutes,
— the Commission shall take the utmost account of the opinions
delivered by the committee. It shall inform the committee of themanner in which it takes account of its opinions.
3. Where the committees mentioned in paragraph 1(a), (c) and (d) are
acting as Management Committees pursuant to Articles 48, 50 and 51respectively, the following procedure applies:
— the Commission representative shall submit to the committee a draft
of the measure to be taken,
— the committee shall deliver its opinion on this draft within a time
limit which the chairman may lay down according to the urgency of
the matter under consideration. The opinion shall be delivered by themajority stipulated in Article 205(2) of the Treaty in the case ofdecisions which the Council is requested to adopt on a proposal fromthe Commission. When a matter is put to the vote within thecommittee, the votes of the Member States' representatives shall be
weighted as provided for in the said Article. The chairman shall not
vote,
— the Commission shall adopt measures which shall apply immedi-
ately. However, if they are not in accordance with the opinion
delivered by the committee, they shall be communicated forthwithby the Commission to the Council. In that event:
— the Commission may defer application of the measure which it
has decided for a period of not more than one month from thedate of such communication,
— the Council, acting by a qualified majority, may take a different
decision within the time limit provided for in the above sub-indent.
4. The Commission shall refer the reports referred to in Article 45 to
the committees. It may seek the opinion of a Committee on any matterconcerning assistance under the Funds, other than assistance provided
for in this Title. This includes matters primarily dealt with by other
committees.
5. Each committee's opinions shall be brought to the attention of the
other committees referred to in this Title.
6. Each committee shall draw up its rules of procedure.
7. The European Parliament shall be regularly informed of the work
of the committees.
Article 48
Committee on the Development and Conversion of Regions
1. A Committee on the Development and Conversion of Regions,
made up of Member States' representatives and chaired by aCommission representative, is hereby set up under the auspices of theCommission. The EIB shall appoint a non-voting representative.
2. The committee shall act as a Management Committee according to
the procedure laid down in Article 47(3) when it deals with:
(a) the implementing rules referred to in Article 53(2).
Other committees shall be consulted under their consultative
competence on the abovementioned implementing rules, in so faras they are concerned;1999R1260 — EN — 01.01.2000 — 001.001 — 46
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(b) the implementing rules referred to in Article 5 of Regulation (EC)
No 1261/1999 of the European Parliament and of the Council of21 June 1999 on the European Regional Development Fund
(ERDF)(
1);
(c) the guidelines relating to the Community initiatives referred to in
Article 20(1)(a) (‘Interreg’) and 20(1)(b) (‘Urban’);
(d) the guidelines for the different types of innovative measures
provided for in application of Article 22, in the case of support
from the ERDF.
3. The committee acts as a consultative committee according to the
procedure laid down in Article 47(2) when it discusses the followingmatters:
(a) establishment and revision of the list of areas eligible under
Objective 2;
(b) the Community support frameworks and the corresponding informa-
tion contained in the single programming documents, under
Objectives 1 and 2;
(c) the types of technical-assistance measure in accordance with
Article 23 in the case of support from the ERDF;
(d) any other questions concerning Articles 20 to 22.
Article 49
Committee pursuant to Article 147 of the Treaty
1. The committee set up pursuant to Article 147 of the Treaty shall be
composed of two government representatives, two representatives of theworkers' organisations and two representatives of the employers'organisations from each Member State. The Member of the Commissionresponsible for chairing the committee may delegate that responsibilityto a senior Commission official.
Foreach Member State, an alternate shall be appointed for each category
of representative mentioned in the first paragraph. In the absence of one
or both members, the alternate shall be automatically entitled to take
part in the proceedings.
The members and alternates shall be appointed by the Council, acting on
a proposal from the Commission, for a period of three years. They maybe reappointed. The Council shall, as regards the composition of thecommittee, endeavour to ensure fair representation of the differentgroups concerned. For the items on the agenda affecting it, the EIB shall
appoint a non-voting representative.
2. The committee shall:
(a) deliver opinions on the draft Commission decisions relating to single
programming documents and to Community support frameworks
under Objective 3 as well as on the Community support frameworks
and corresponding information contained in the single programmingdocuments, under Objectives 1 and 2, in the case of support from theESF;
(b) deliver its opinion on the implementing rules provided for in
Article 53(2);
(c) be consulted on the implementing rules referred to in Article 8 of
Regulation (EC) No 1262/1999 of the European Parliament and ofthe Council of 21 June 1999 on the European Social Fund (ESF)(
2);
(d) deliver opinions on draft Commission guidelines relating to the
Community initiative referred to in Article 20(1)(d) (‘EQUAL’) and
for the various types of innovative measure in the context ofArticle 22 in the case of support from the ESF. The Commission1999R1260 — EN — 01.01.2000 — 001.001 — 47
(1) See page 43 of this Official Journal.
(2) See page 48 of this Official Journal.
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may also refer further questions to it within the meaning of
Articles 20 to 22;
(e) be consulted on the types of technical-assistance measure in
accordance with Article 23 in the case of support from the ESF.
3. For their adoption, the opinions of the committee shall require an
absolut majority of the votes validly cast. The Commission shall inform
the committee of the manner in which it has taken account of its
opinions.
Article 50
Committee on Agricultural Structures and Rural Development
1. A Committee on Agricultural Structures and Rural Development,
made up of Member States' representatives and chaired by aCommission representative, is hereby set up under the auspices of theCommission. The EIB shall appoint a non-voting representative.
2. The Committee acts as a Management Committee according to the
procedure laid down in Article 47(3) when it deals with:
(a) the implementing rules and transitional rules referred to in
Articles 34, 50 and 53 of Regulation (EC) No 1257/1999;
(b) the guidelines relating to the Community initiative referred to in
Article 20(1)(c) (‘Leader’).
3. The committee acts as a Consultative Committee according to the
procedure laid down in Article 47(2) when it discusses the followingmatters:
(a) the establishment and revision of the list of areas eligible under
Objective 2;
(b) the parts of the intervention concerning agricultural structures and
rural development included in the draft Commission decisions
relating to the Community support frameworks and correspondinginformation contained in the single programming documents, for theregions under Objectives 1 and 2;
(c) the implementing rules referred to in Article 53(2);
(d) the types of technical-assistance measure in accordance with
Article 23 in the case of support from the EAGGF;
(e) any other questions concerning Articles 20 to 22.
Article 51
Committee on Structures for Fisheries and Aquaculture
1. A Committee on Structures for Fisheries and Aquaculture, made
up of Member States' representatives and chaired by a Commission
representative, is hereby set up under the auspices of the Commission.The EIB shall appoint a non-voting representative.
2. The committee shall act as a Management Committee according to
the procedure laid down in Article 47(3) when it deals with:
(a) the implementing rules referred to in Article 4 of Regulation (EC)
No 1263/1999;
(b) the guidelines for the different types of innovative measures
provided for in application of Article 22, in the case of supportfrom the FIFG.
3. The committee shall act as a Consultative Committee according to
the procedure laid down in Article 47(2) when it discusses the followingmatters:
(a) the establishment and revision of the list of areas eligible under
Objective 2;
(b) the parts of the intervention concerning fisheries structures included
in the draft Commission Decision relating to the Community support1999R1260 — EN — 01.01.2000 — 001.001 — 48
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frameworks and corresponding information contained in the single
programming documents under Objective 1;
(c) the implementing rules provided for in Article 53(2);
(d) the types of technical-assistance measure in accordance with
Article 23 in the case of support from the FIFG;
(e) any other questions concerning Article 22.
TITLE VII
FINAL PROVISIONS
Article 52
Transitional provisions
1. This Regulation shall not affect the continuation or modification,
including the total or partial cancellation, of assistance approved by the
Council or by the Commission on the basis of Council Regulations
(EEC) No2052/88 and (EEC) No4253/88 orany other legislation whichapplied to that assistance on 31 December 1999.
2. Applications for a contribution from the Funds towards operations
which are submitted pursuant to Regulations (EEC) No 2052/88 and(EEC) No 4253/88 shall be considered and approved by the Commissionon the basis of those Regulations no later than 31 December 1999.
3. In drawing up Community support frameworks and assistance, the
Commission shall take account of any measure already approved by theCouncil or by the Commission before the entry into force of thisRegulation and having financial repercussions during the period coveredby those support frameworks and assistance. These measures shall not
be subject to compliance with Article 30(2).
4. Notwithstanding the date specified in Article 30(2), expenditure
actually paid, in respect of which the Commission has received an
application for assistance between 1 January and 30 April 2000 and
which fulfils all the conditions laid down in this Regulation, may beregarded as eligible for a contribution from the Funds from 1 January2000.
5. Partial sums committed for operations or programmes approved by
the Commission before 1 January 1994, but in respect of which noapplication for final payment has been received by 31 March 2001, shallbe automatically decommitted no later than 30 September 2001, givingrise to the repayment of amounts unduly paid, without prejudice to
operations or programmes which have been suspended on account of
legal proceedings.
Partial sums committed for operations or programmes approved by the
Commission between 1 January 1994 and 31 December 1999, but in
respect of which no application for final payment has been received by31 March 2003, shall be automatically decommitted no later than30 September 2003, giving rise to the repayment of amounts undulypaid, without prejudice to operations or programmes which have beensuspended on account of legal proceedings.
Article 53
Implementation
1. The Commission shall be in charge of the implementation of this
Regulation.
2. The Commission shall adopt detailed rules to implement
Articles 30, 33, 38, 39 and 46, in accordance with Article 48(2)(a). Itshall also, in accordance with the same procedure and where it appearsnecessary in unforeseen circumstances, adopt other rules for theimplementation of this Regulation.1999R1260 — EN — 01.01.2000 — 001.001 — 49
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Article 54
Repeal
Regulations (EEC) No 2052/88 and (EEC) No 4253/88 are hereby
repealed with effect from 1 January 2000, without prejudice to
Article 52(1).
References to the repealed Regulations shall be construed as references
to this Regulation.
Article 55
Review clause
The Council shall review this Regulation on the basis of a proposal from
the Commission by 31 December 2006 at the latest.
It shall act on the proposal in accordance with the procedure laid down
in Article 161 of the Treaty.
Article 56
Entry into force
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
Articles 28, 31 and 32 shall apply from 1 January 2000.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1999R1260 — EN — 01.01.2000 — 001.001 — 50
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ANNEX
STRUCTURAL FUNDS
Annual breakdown of commitment appropriations for 2000 to 2006
(referred to in Article 7(1))
(EUR million — 1999 prices)
2000 2001 2002 2003 2004 2005 2006
29430 28840 28250 27670 27080 27080 266601999R1260 — EN — 01.01.2000 — 001.001 — 51