1999R1260 — EN — 27.06.2003 — 002.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EC)No1260/1999
of21June1999
layingdowngeneral provisionsontheStructuralFunds
(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
►M2Council Regulation (EC) No 1105/2003 of 26 May 2003 L 158 3 27.6.2003
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COUNCILREGULATION(EC)No1260/1999
of21June1999
layingdowngeneral provisionsontheStructuralFunds
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)WhereasArticle 158 of the Treaty s tatesthat, in order to
strenghten its economic and social cohesion, the Community
shall aim at reducing disparities between the levels of develop-
ment of the various regions and the backwardness of the least-favoured regions or islands, including rural areas; whereasArticle 159 providesfor that action to be s upported through theStructural Funds, the European Investment Bank (EIB) and the
other existing financial instruments;
(2)WhereasArticle 19 of Council Regulation (EEC) No 2052/88 of
24 June 1988 on the tasks of the Structural Funds and their
effectiveness and on coordination of their activities between
themselves and with the operations of the European InvestmentBank 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, in
order to improve the transparency of Community legislation, it
is desirable to bring together all the provisions concerning theStructural Fundsinto a s ingle Regulation and to repeal Regula-tion (EEC) No 2052/88 and Council Regulation (EEC) No 4253/88 of 19 December 1988 laying down provisions for imple-menting Regulation (EEC) No 2052/88 asregardsthe
coordination of the activitiesof the different Structural Funds ,
on the one hand, between themselves and with the operations ofthe European Investment Bank and the other existing financialinstruments, on the other hand (
6);
(3)Whereas, by virtue of Article 5 of Protocol 6 on special provi-sions for Objective 6 in the framework of the Structural Fundsin Finland and Sweden, attached to the Act of Accession ofAustria, Finland and Sweden, the provisions of that Protocol
should be re-examined before the end of 1999, simultaneously
with Regulation (EEC) No 2052/88;
(4)Whereas in order to increase the concentration and simplify theoperation of the Structural Fundsthe number of priority objec-tivess hould be reduced ascompared with Regulation (EEC)No 2052/88; whereas those objectives should be redefined aspromoting the development and structural adjustment of regionswhose development is lagging behind, economic and social
conversion of areas facing structural difficulties and adapting
and modernising policies and systems of education, training andemployment;1999R1260 — EN — 27.06.2003 — 002.001 — 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 aslas t 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 aslas t amended by Regulation (EC)
No 3193/94.
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(5)Whereas in its efforts to strengthen economic and social cohe-
sion the Community also seeks to promote the harmonious,
balanced and sustainable development of economic activities, ahigh level of employment, equality between men and womenand a high level of protection and improvement of the environ-ment; whereas those efforts should in particular integrate therequirementsof environmental protection into the des ign and
implementation of the operationsof the Structural Fundsand
help to eliminate inequalitiesand promote equality betweenmen and women; whereas the Funds' operations may also makeit possible to combat 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 partner-
ship;
(6)Whereascultural development, the quality of the natural and theman-made environment, the qualitative and cultural dimensionof life and the development of tourism contribute to makingregions economically and socially more attractive in so far asthey encourage the creation of sustainable employment;
(7)Whereasthe European Regional Development Fund (ERDF) isthe primary contributor to attaining the objective of promotingthe development and structural adjustment of the regions whosedevelopment islagging behind and economic and s ocial conver-sion 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 the
European employment strategy;
(9)Whereas the structural aspects of the common fisheries policy
have been integrated asa full s tructural policy under the rulesgoverning the Structural Fundss ince 1993; whereasimplementa-tion should continue under the Structural Funds through theFinancial Instrument for Fisheries Guidance (FIFG); whereas
assistance from FIFG in Objective 1 shall form part of the
programming of this Objective and the assistance outsideObjective 1 shall be subject to a single programme in eachMember State concerned;
(10)Whereasthe Community hasundertaken a reform of thecommon agricultural policy which includess tructural and
accompanying measures for promoting rural development;
whereasin thiscontext the Guidance Section of the EuropeanAgricultural Guidance and Guarantee Fund (EAGGF) shouldcontinue to contribute to attaining the priority objective of thedevelopment and structural adjustment of the regions whosedevelopment islagging behind, by improving the efficiency of
the structures of production, processing and marketing of agri-
cultural and forest products and developing local potential inrural areas; whereas the EAGGF Guarantee Section contributesto attaining the priority objective of economic and social conver-sion of areas facing structural difficulties, in accordance with
Council Regulation (EC) No 1257/1999 of 17 May 1999 on
support for rural development from the European AgriculturalGuidance and Guarantee Fund (EAGGF) and amending andrepealing certain Regulations(
1);
(11)Whereas the specific rules applicable to each Fund are to be setout in the implementing Decisions adopted pursuant to
Articles37, 148 and 162 of the Treaty;
(12)Whereasthe criteria for des ignating eligible regionsand areas
should be specified; whereas, to this end, it is appropriate thatthe identification of the priority regionsand areasat Communitylevel should be based on the common system of classification ofthe regions, referred to as the ‘Nomenclature of TerritorialStatistical Units (NUTS)’ established by the Statistical Office of1999R1260 — EN — 27.06.2003 — 002.001 — 3
(1) OJ L 160, 26.6.1999, p. 80.
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the European Communitiesin 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 ass et 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 undergoingsocio-economic change in the industrial and service sectors,declining rural areas, urban areas in difficulty and depressed
areas dependent on fisheries; whereas this assistance should be
properly concentrated on the most seriously affected parts ofthe Community; whereas these areas should be designated bythe Commission acting on a proposal from the Member Statesand in close concertation with them;
(15)Whereas, to ensure the Community nature of the operations ofthe Funds, 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 popula-tion covered by thispriority objective taken over theCommunity as a whole, for guidance, should constitute about10 % 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 urban areas and 1 % in the case of the fisheries areas;whereas, in order to ensure that each Member State makes a faircontribution to the overall effort towardsconcentration, themaximum possible reduction in population covered by
Obejctive 2 in 2006, set out in this Regulation, must not exceed
one third compared to the coverage under Objectives2 and 5b in1999, 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 sameas the areas assisted by the Member States pursuant to
Article 87(3)(a) of the Treaty and, taking account of any specific
measures adopted pursuant to Article 299(2) of that Treaty infavour of the outermost regions (the French overseas depart-ments, the Azores, Madeira and the Canary Islands); whereas,similarly, the areas undergoing economic and social changeshould correspond to a large extent to the areas assisted by the
Member Statespurs uant to Article 87(3)(c) of the Treaty;
whereas the objective of the Community should be to increaseconsistency at the end of the period 2000 to 2006 by an appro-priate effort by Member Stateswith regard to their currentsituation;
(17)Whereasthe objective of adapting and modernis ing policiesand
systems of education, training and employment is to provide
financial assistance in the regions and areas not covered byObjective 1; whereas Objective 3 should also provide a frameof reference 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 inter-
ventionsof the other Structural Funds ; whereasany ESFcontribution to an Objective 2 single programming documentmust be of sufficient size to justify its separate management,and should therefore not amount to less than 5 % of the totalStructural Fundscontribution;1999R1260 — EN — 27.06.2003 — 002.001 — 4
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(19)Whereasthe regionscovered 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 receiving transi-tional support;
(21)Whereastotal annual receiptsin any Member State from Struc-tural Fundsunder thisRegulation — in combination with
assistance provided under the Cohesion Fund — should be
limited under thisgeneral capping dependent on the nationalabsorption capacity;
(22)Whereas the Commission should work out indicative allocationsof the available commitment appropriationsunder each of thepriority objectives, basing itself on appropriate objective criteria;whereas4 % of appropriationsallocated in thisway to the
Member States should be allocated by the Commission at the
mid-term point; whereas, in recognition of the special effortsfor the peace process in Northern Ireland, the PEACEprogramme should continue up to 2004; whereas a specialprogramme of assistance for the period 2000 to 2006 shall beestablished 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;
(23)Whereas5,35 % of the total commitment appropriationsavail-able should be devoted to the Community initatives and 0,65 %to innovative schemes and to technical assistance;
(24)Whereasthe appropriationsavailable to the Structural Fundsshould be indexed on a flat-rate basis for programming purposesand, if necessary, a technical adjustment to that indexationshould be made before 31 December 2003;
(25)Whereasthe main principlesof the 1988 reform of the StructuralFundss hould continue to govern the Fundsuntil 2006; whereas ,
however, experience to date hasdemons trated the need for
improvements to make these principles simpler and more trans-parent; whereas effectiveness should in particular be regarded asa 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)Whereasthe action of the Community s hould 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 ofequality between men and women, the economic and social part-
nersand other competent bodies ; whereasthe relevant partners
shall be associated in the preparation, monitoring and evaluationof assistance;
(28)Whereas the programming process should be laid down fromoriginal conception to final beneficiary, and should be facilitatedin the Member Statesby broad indicative guidelinesdrawn upby the Commission on relevant and agreed Community policiesin relation to the Structural Funds;1999R1260 — EN — 27.06.2003 — 002.001 — 5
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(29)Whereas programming should ensure the coordination of the
Structural Fundswith one another and with the other exis ting
financial instruments and the EIB; whereas that coordinationextendsto combining grantsand loans ;
(30)Whereasthe activitiesof the Fundsand the operationswhichthey help to finance must be compatible with other Communitypolicies and comply with Community legislation, and specificprovisions should be laid down; whereas in this field operationsto disseminate and exploit the results of research and technolo-
gical development conducted in the context of the Structural
Funds must ensure the protection of rights relating to theobtaining and exploitation of knowledge and be carried out inaccordance with Community ruleson competition;
(31)Whereass impler criteria and detailed rulesfor 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 single inte-grated assistance for each region, by making singleprogramming documentsthe norm for the priority objectivesand by including major projectsand global grantsin the otherforms of assistance;
(33)Whereas, in order to reinforce the integrated approach to devel-opment, steps should be taken — with due regard to the specific
features of the regions concerned — to ensure consistency
between the operationsof the variousFundsand the Communitypolicies, the strategy for employment, the economic and socialpoliciesof the Member Statesand the regional policiesof theMember States;
(34)Whereas, in order to speed up and simplify programming proce-dures, the responsibilities of the Commission should bedistinguished from those of the Member States; whereas, there-
fore, provisions should be made for the Commission, acting on
a proposal from the Member States, to adopt the strategies anddevelopment prioritiesthat are to govern the programming aswell asthe s ize of the financial contribution from the Commu-nity, and the implementing arrangementslinked to them, while
the Member Statesare to decide on their application; whereas
the content of the various forms of assistance should also bespecified;
(35)Whereass uch decentralis ed implementation of the operationsofthe Structural Funds by the Member States should provide suffi-cient guaranteesasto the detailsand quality of implementation,the results of operations and their evaluation and sound financialmanagement and its supervision;
(36)Whereas the Commission, in association with the EIB whereappropriate, should approve major investment projects whose
financial volume exceeds a specified sum with a view to evalu-
ating 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 to supple-ment 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 neighbourhoodsin cris is(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 parti-1999R1260 — EN — 27.06.2003 — 002.001 — 6
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cular significance in this context; whereas due attention should
be given to cooperation with the outermost regions; whereas itis necessary to reinforce the coordination of cross-border, trans-
national 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 ofasylum seekers in the framework of EQUAL;
(39)Whereas the Structural Funds should provide support for studies,pilot projectsand exchangesof experience in order to promoteinnovative approaches and practices through simple and trans-parent implementation;
(40)Whereas, in order to strengthen the leverage effect of Commu-
nity resources by favouring as far as possible recourse to
private sources of financing and to take better account of theprofitability of the projects, the forms of assistance availablefrom the Structural Funds should be diversified and the rates ofassistance differentiated with a view to promoting the Commu-nity interest, encouraging the use of a wide range of financial
resources and limiting the contribution of the Funds by encoura-
ging the use of appropriate forms of assistance; whereas, to thatend, reduced rates of intervention should be established in thecase of investments in forms and infrastructure projects whichgenerate substantial revenue; whereas for the purpose of this
Regulation, substantial net revenue should be tentatively defined
as revenue higher than at least 25 % of the total cost of theinvestment concerned;
(41)Whereas, in accordance with the principle of subsidiarity, theruleson eligible expenditure s hould be the relevant nationalruleswhere there are no Community rules , although they maybe laid down by the Commission where they are clearly needed
for the uniform and equitable implementation of the Structural
Funds across the Community; whereas, however, the startingand closing dates for the eligibility of expenditure should bedefined and it should be stipulated that investment projects maynot undergo major modification; whereascons equently, in orderto ensure the efficiency and durable impact of the Funds' assis-
tance, all or part of the assistance from a Fund should remain
attached to an operation only where itsnature or itsimplementa-tion conditions do not undergo a substantial modification whichwould result in diverting the assisted operation from its originalobjectives;
(42)Whereasthe rulesand proceduresfor making commitmentsand
payments should be simplified; whereas to that end budget
commitmentss hould be made once a year in accordance withthe multiannual financial perspective and with the financingplan for assistance, whilst payments should be made in theform of an advance followed by the reimbursement of actualexpenditure incurred; whereas, in accordance with established
case law, any interest earned on the advance payment should be
regarded asres ourcesfor the Member State concerned, and inorder to strengthen the impact of the Funds, it should be allo-cated to the same purpose as the advance payment itself;
(43)Whereas sound financial management should be assured byproviding that expenditure isto be duly jus tified and certified,and by linking payments to compliance with essential responsi-1999R1260 — EN — 27.06.2003 — 002.001 — 7
(1) OJ L 375, 23.12.1989, p. 11 (PHARE). Regulation aslas t 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 aslas t amended by Council
Regulation (EC) No 780/98 (OJ L 113, 15.4.1998, p. 2).
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bilitiesasto the monitoring of programming, financial controls
and the application of Community law;
(44)Whereas, to ensure sound management of Community resources,
improvements should be made to the forecasting and imple-
menting of expenditure; whereasto that end the Member Statesshould regularly send the Commission their forecasts of the useof Community resources, and any delays in financial implemen-tation should give rise to repayment of advances and to
automatic decommitments;
(45)Whereas, throughout the transitional period from 1 January 1999
to 31 December 2001, all referencesto the euro s hould normallybe read asreferencesto the euro asa monetary unit asreferredto 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)Whereasone way of ens uring that the operationsof the Struc-
tural Fundsare effective isefficient monitoring; whereasmonitoring should be improved and responsibilities in this fieldbetter defined; whereas, in particular, management functionsshould be distinguished from monitoring functions;
(47)Whereas there should be a single managing authority for eachassistance, with defined responsibilities; whereas these responsi-bilitiess hould primarily include collecting data on outcomesandreporting this data to the Commission, ensuring sound financialimplementation, organising evaluations and complying with obli-
gationsrelating to publicity and Community law; whereas
accordingly there should be provision for regular meetingsbetween the Commission and the managing authority to monitorthe assistance;
(48)Whereas it should be stipulated that the Monitoring Committeesare bodies appointed by the Member State supervising assis-
tance, checking on how it isbeing managed by the managing
authority, ensuring compliance with its own guidelines andimplementing rulesand reviewing evaluations ;
(49)Whereasindicatorsand annual reportson 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 obligationsof the Member Statess hould be laid downwith regard to management and supervision systems, the certifi-cation of expenditure and the prevention, detection andcorrection of irregularitiesand of infringementsof Community
law;
(51)Whereas, without prejudice to the Commission's responsibilities
for financial control, cooperation between the Member Statesand the Commission in this regard should be improved, in parti-cular through provision for regular consultations between the
Member States and the Commission to consider the measures
taken by the Member States and to permit the Commission torequest corrective measures where necessary;
(52)Whereas the responsibility of the Member States for the pursuitand correction of irregularitiesand infringements , and that of theCommission where the Member States do not comply with their
obligations, should be specified;
(53)Whereasthe effectivenes sand impact of the operationsof the
Structural Fundsals o depend on improved and more thoroughevaluation; whereas the responsibilities of the Member Statesand the Commission in this regard and arrangements to ensurethe reliability of evaluation should be laid down;1999R1260 — EN — 27.06.2003 — 002.001 — 8
(1) OJ L 139, 11.5.1998, p. 1.
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(54)Whereas assistance schemes should be evaluated with a view to
their preparation, mid-term review and assessment of their
impact, and the evaluation process should be incorporated intothe monitoring of assistance; whereas to that end the aims andcontent of each stage of evaluation should be defined, and theevaluation of the situation as regards the social and economicsituation, the environment and equality between men and women
should be improved;
(55)Whereasthe 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 perfor-
mance-related basis; whereas such allocations should be based
on objective, simple and transparent criteria which reflect effi-ciency and the quality of management and financial execution;
(56)Whereasa report isto be pres ented every three yearson the
progress made towards economic and social cohesion, which
should include an analysis of the situation of the regions of theCommunity and their economic and social development;
(57)Whereas, in the interests of a good working partnership and the
proper promotion of Community assistance, the broadest
possible information and publicity about it should be provided;whereas the authorities responsible for managing assistanceshould be responsible for this aspect and for keeping theCommission informed of measures taken;
(58)Whereasruless hould be laid down for the operation of thecommittees called upon to assist the Commission in imple-menting thisRegulation;
(59)Whereas detailed transitional provisions should be laid down toallow preparation of new programming immediately on entryinto force of this Regulation and to ensure that assistance toMember Statesisnot interrupted pending the production ofregional development plans and assistance schemes in accor-
dance with the new system,
HAS ADOPTED THIS REGULATION:
TITLE I
GENERALPRINCIPLES
CHAPTER I
OBJECTIVESANDTASKS
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 objectivess et out in Articles158 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 struc-
tural 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 policy1999R1260 — EN — 27.06.2003 — 002.001 — 9
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frame of reference for all measures to promote human resources in a
national territory without prejudice to the specific features of eachregion.
In pursuing these objectives, the Community shall contribute to the
harmonious, balanced and sustainable development of economic activ-ities, the development of employment and human resources, theprotection and improvement of the environment, and the eliminationof inequalities, and the promotion of equality between men and
women.
Article 2
Meansandtasks
1. For the purposes of this Regulation, ‘Structural Funds’ shall mean
the European Regional Development Fund (ERDF), the EuropeanSocial Fund (ESF), the European Agricultural Guidance and GuaranteeFund (EAGGF), Guidance Section, and the Financial Instrument forFisheries Guidance (FIFG), hereinafter referred to as ‘the Funds’.
2. In accordance with Articles33, 146 and 160 of the Treaty, the
Funds shall contribute, each according to the specific provisionsgoverning itsoperations , to the attainment of Objectives1, 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 Council Regula-
tion (EC) No 1263/1999 of 21 June 1999 on the financial instrumentfor 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 Fundss hall contribute to financing Community initiatives
and to supporting innovative measures and technical assistance.
Technical assistance measures shall be carried out within the frame-
work of the programming defined in Articles13 to 27 or at theinitiative of the Commission under Article 23.
5. The other resources of the Community budget which may be used
to attain the Objectivesreferred to in Article 1 are in particular thos e
allocated to other structural measures and to the Cohesion Fund.
The Commission and the Member States shall ensure that the opera-
tions 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 common
agricultural policy, the common fisheries policy, transport, energy and
the trans-European networks and the incorporation of the requirementsof environmental protection into the definition and implementation ofthe operationsof the Funds .
6. The EIB shall cooperate in attaining the objectives set out in
Article 1, in accordance with the procedureslaid down in itsStatute.
The other existing financial instruments which may contribute, each
according to the specific provisions governing its operations, to
attaining the Objectivesreferred to in Article 1 include the EuropeanInvestment Fund and the European Atomic Energy Community(Euratom) (loans, guarantees), hereinafter ‘the other financial instru-ments’.1999R1260 — EN — 27.06.2003 — 002.001 — 10
(1) See page 54 of thisOfficial Journal.
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CHAPTER II
GEOGRAPHICALELIGIBILITYFORTHEPRIORITYOBJEC-
TIVES
Article 3
Objective 1
1. The regionscovered by Objective 1 s hall be regionscorre-
sponding to level II of the Nomenclature of Territorial StatisticalUnits (NUTS level II) whose per capita GDP, measured in purchasing
power paritiesand calculated on the bas isof Community figuresfor the
last three years available on 26 March 1999, is less than 75 % of theCommunity 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 1995to 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 ofparagraph 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 inaccordance with Article 1(2) and whose population or area is suffi-ciently substantial. They shall include in particular areas undergoing
socio-economic change in the industrial and service sectors, declining
rural areas, 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 seriouslyaffected and at the most appropriate geographical level. The population
of the areasreferred to in paragraph 1 s hall not exceed 18 % of the
total population of the Community. Accordingly, the Commission shalllay down a population ceiling for each Member State on the basis ofthe following factors:
(a) the total population in the NUTS III areasof each Member State
which meet the criteria referred to in paragraphs5 and 6;
(b) the severity of the structural problems at national level in each
Member State ascompared with the other Member Statesconcerned. Such severity shall be assessed on the basis of totalunemployment and long-term unemployment outside the regionseligible under Objective 1;
(c) the need to ensure that each Member State makes a fair contribu-
tion to the overall concentration effort asdefined in thissubparagraph; the maximum reduction in the population coveredby Objective 2 shall not exceed one third compared to the popula-tion covered by Objectives2 and 5b ass et out in Regulation (EEC)
No 2052/88, in 1999.
The Commission shall provide the Member States with all the informa-
tion it hasavailable about the criteria s et out in paragraphs5 and 6.
3. Subject to the ceilingsreferred to in paragraph 2, the Member
States shall propose to the Commission a list of significant areas repre-senting:
(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;1999R1260 — EN — 27.06.2003 — 002.001 — 11
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(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 Commissionrequires 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 dueregard to national priorities, without prejudice to Article 6(2).
The areasmeeting the criteria in paragraphs5 and 6 mus t contain at
least 50 % of the population covered by Objective 2 in each Member
State, except where duly justified by objective circumstances.
5. The areasundergoing s ocio-economic change referred to in
paragraph 1 shall represent or belong to a NUTS level III territorialunit 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 followingcriteria:
(a) either a population density of less than 100 people per km
2,o ra
percentage share of agricultural employment in total employmentwhich isequal to, or higher than, twice the Community average in
any reference year from 1985;
(b) either an average unemployment rate over the last three years
above the Community average, or a decline in population since1985.
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 whichare facing structural socio-economic problems relating to the restruc-turing of the fisheries sector which result in a significant reduction inthe number of jobsin that s ector.
9. Community assistance may extend to areas whose population or
area is significant which fall into one of the following categories:
(a) areasmeeting the criteria s et out in paragraph 5 which are adjacent
to an industrial area, areas meeting the criteria set out inparagraph 6 which are adjacent to a rural area, areaswhich meeteither the criteria set out in paragraph 5 or those set out inparagraph 6 which are adjacent to a region covered by Objective 1;
(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 of1999R1260 — EN — 27.06.2003 — 002.001 — 12
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unemployment arising from an ongoing or planned restructuring of
one or more activities in the agricultural, industrial or servicesector.
10. Any one area may be eligible for assistance under only one of
Objectives1 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 during2003 in accordance with paragraphs1 to 10 without increas ing 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
Transitionalsupport
1. Notwithstanding Article 3, the regions covered by Objective 1 in
1999 pursuant to Regulation (EEC) No 2052/88 which are not referredto in the second subparagraph of Article 3(1) and (2) of this Regulationshall continue to receive support from the Funds under Objective 1 on
a transitional 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) thelist of the NUTS level III areas belonging to those regions which are toreceive support from the Funds under Objective 1 on a transitionalbasis in 2006.
However, within the limit of the population of the areasreferred to in
the second subparagraph and in conformity with the provisions of
Article 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 of assistance.
2. Notwithstanding Article 4, the regions covered by Objectives 2
and 5(b) in 1999 pursuant to Regulation (EEC) No 2052/88 which arenot on the list referred to in Article 4(4) of this Regulation shall receivesupport from the ERDF, from 1 January 2000 to 31 December 2005,
under Objective 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 rural devel-opment and from the FIFG under its structural measures in the fisheriessector outside of Objective 1.
CHAPTER III
FINANCIALPROVISIONS
Article 7
Resourcesandconcentration
1. The resources available for commitment from the Funds for the
period 2000 to 2006 shall be EUR 195 billion at 1999 prices.1999R1260 — EN — 27.06.2003 — 002.001 — 13
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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 1regions.
69,7 % of the Structural Fundswill be allocated to Objective 1,
including 4,3 % for transitional support (i.e. a total of EUR 135,9billion).
11,5 % of the Structural Fundswill be allocated to Objective 2,
including 1,4 % for transitional support (i.e. a total of EUR 22,5billion).
12,3 % of the Structural Fundswill be allocated to Objective 3 (i.e. a
total of EUR 24,05 billion).
The figuress tated for Objectives1, 2 and 3 do not include the financial
resources referred to in paragraph 6 nor the financing for FIFG outside
Objective 1.
3. Using transparent procedures, the Commission shall make indica-
tive breakdownsby Member State of the commitment appropriations
available for the programming referred to in Articles13 to 19, taking
full account, for Objectives1 and 2, of one or more objective criteriasimilar to those covered by Regulation (EEC) No 2052/88, namely:eligible population, regional prosperity, national prosperity and therelative severity of the structural problems, especially the level of
unemployment.
For Objective 3, the breakdown by Member State shall be based prin-
cipally on the eligible population, the employment situation and the
severity of the problems, such as social exclusion, education andtraining levels, and participation of women in the labour market.
For Objectives 1 and 2, these breakdowns shall distinguish allocations
of appropriationsto regionsand areasbenefiting from trans itionalsupport. These allocations shall be determined in accordance with thecriteria referred to in the first subparagraph. The annual breakdown ofthese appropriations shall be degressive from 1 January 2000 and shall
be lower in 2000 than in 1999. The profile of transitional support may
be tailored to the specific needs of individual regions, in agreementwith the Commission, provided the financial allocation for each regionisres pected.
Using transparent procedures, the Commission shall also make indica-
tive breakdownsby Member State of the commitment appropriationsavailable for the structural actions in the fisheries sector outsideObjective 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 areasof
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 whichmeet the criteria laid down in Article 2 of Protocol 6 to the Act ofAccession for Austria, Sweden and Finland.
5. 4 % of commitment appropriationsunder each national indicative
breakdown referred to in paragraph 3 shall be allocated in accordancewith Article 44.
6. For the period referred to in paragraph 1, 5,35 % of the commit-
ment appropriationsfor the Structural Fundsreferred to in paragraph 1shall be devoted to funding the Community initiatives.
0,65 % of the appropriationsreferred to in paragraph 1 s hall be devoted
to funding innovative measures and technical assistance as defined in
Articles22 and 23.
7. For the purpose of their programming and subsequent inclusion in
the general budget of the European Communities, the sums referred to1999R1260 — EN — 27.06.2003 — 002.001 — 14
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in paragraph 1 shall be indexed as from 1 January 2000 at 2 % per
year.
Indexation of the allocationsfor 2004 to 2006 s hall be reviewed, if
necessary, by 31 December 2003 at the latest for technical adjustmentby the 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 receiptsin any Member State from the Structural
Funds pursuant to this Regulation — in combination with assistanceprovided under the Cohesion Fund — should not exceed 4 % ofnational GDP.
CHAPTER IV
ORGANISATION
Article 8
Complementarityandpartnership
1. Community actionss hall complement or contribute to corre-
sponding national operations. They shall be drawn up in closeconsultation, hereinafter referred to as the ‘partnership’, between theCommission and the Member State, together with the authorities andbodiesdes ignated by the Member State within the framework of itsnational rulesand current practices , namely:
— the regional and local authoritiesand other competent public autho-
rities,
— the economic and social partners,
— any other relevant competent bodieswithin thisframework.
The partnership shall be conducted in full compliance with the respec-
tive institutional, legal and financial powers of each of the partners asdefined 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 ofenvironmental protection and improvement requirements.
All the designated parties, hereinafter referred to as the ‘partners’, shall
be partnerspurs uing a common goal.
2. Partnership shall cover the preparation, financing, monitoring and
evaluation of assistance. Member States shall ensure the association of
the relevant partnersat the different s tagesof 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 the
appropriate territorial level according to the arrangementss pecific to
each Member State, and without prejudice to the powersves ted in theCommission, notably for implementing the general budget of theEuropean Communities.
4. Member States shall cooperate with the Commission to ensure
that Community Fundsare us ed in accordance with the principlesof
sound financial management.
5. Each year, the Commission shall consult the European-level orga-
nisations representing the social partners about the structural policy ofthe Community.1999R1260 — EN — 27.06.2003 — 002.001 — 15
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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 a
multiannual basis the joint action of the Community and theMember Statesto attain the Objectivesreferred to in Article 1;
(b)development plan (hereinafter referred to as ‘the plan’: meansthe
analysis of the situation prepared by a Member State in the light ofthe objectivesreferred to in Article 1 and the priority needsforattaining those objectives, together with the strategy, the plannedaction priorities, their specific goals and the related indicative
financial resources;
(c)Objective 3 policy frame of reference: meansa document which
sets the context for assistance concerning employment and
human-resource development throughout the territory of eachMember State, and which identifiesthe relations hip with the prio-ritiess et out in the National Action Plan for Employment;
(d)Community support framework: meansthe document approved by
the Commission, in agreement with the Member State concerned,following appraisal of the plan submitted by a Member State andcontaining the strategy and priorities for action of the Funds and
the Member State, their specific objectives, the contribution of
the Funds and the other financial resources. This document shallbe divided into prioritiesand implemented by meansof one ormore operational 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: meansthe document approved by the
Commission to implement a Community support framework andcomprising a consistent set of priorities comprising multiannual
measures and which may be implemented through recourse to
one or more Funds, to one or more of the other existing financialinstruments and to the EIB. An integrated operational programmemeansan operational programme financed by more than one Fund;
(g)single programming document: meansa s ingle document approved
by the Commission and containing the same information to befound in a Community support framework and operationalprogramme;
(h)priority: meansone of the prioritiesof the s trategy adopted in a
Community support framework or assistance; to it is assigned a
contribution from the Fundsand other financial ins trumentsand
the relevant financial resources of the Member State and a set ofspecified targets;
(i)global grant: means that part of assistance the implementation and
management of which may be entrusted to one or more approvedintermediariesin accordance with Article 27(1), including localauthorities, regional development bodies or non-governmentalorganisations, used preferably to assist local development initia-
tives. The decision to employ a global grant shall be taken in
agreement with the Commission by the Member State or, in agree-ment 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 grantfor all or part of the assistance. In the case of Community initia-tives, this decision may only be taken with the prior agreement of
the Member Statesconcerned.
(j)measure: meansthe meansby which a priority isimplemented
over several years which enable operations to be financed. Any1999R1260 — EN — 27.06.2003 — 002.001 — 16
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aid scheme pursuant to Article 87 of the Treaty or any aid granted
by bodies designated by the Member States, or any group of aidschemes or aid grants of this type or any combination thereof
which have the same purpose and are defined as a measure;
(k)operation: meansany project or action carried out by the final
beneficiaries of assistance;
(l)final beneficiaries: meansthe bodiesand public or private firms
responsible for commissioning operations. In the case of aidschemes pursuant to Article 87 of the Treaty and in the case ofaid granted by bodies designated by the Member States, the final
beneficiariesare the bodieswhich grant the aid;
(m)programme complement: meansthe document implementing the
assistance strategy and priorities and containing detailed elementsat measure level, as set out in Article 18(3), drawn up by theMember State or managing authority and revised as necessary inaccordance with Article 34(3). It is sent to the Commission forinformation;
(n)managing authority: meansany public or private authority or body
at national, regional or local level designated by the Member State,
or the Member State when it isits elf carrying out thisfunction, tomanage 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 the mana-
ging authority and of the latter's relationship with the Commission.
If the Member State so decides, the managing authority may bethe same body as the paying authority for the assistanceconcerned;
o)paying authority: meansone or more national, regional or local
authoritiesor bodiesdes ignated by the Member Statesfor thepurposes of drawing up and submitting payment applications and
receiving payments from the Commission. The Member State shall
determine all the modalitiesof itsrelations hip with the payingauthority and of the latter's relationship with the Commission.
Article 10
Coordination
1. Coordination between the variousFundss hall be carried out in
particular through:
(a) the plans, the Community support frameworks, the operational
programmesand the s ingle programming documents(asdefined in
Article 9) including the frame of reference where relevant in accor-dance with Article 9(1)(c);
(b) the monitoring and evaluation of assistance under an Objective;
(c) the guidelinesreferred to in paragraph 3.
2. The Commission and Member State shall, in a manner consistent
with the principle of partnership, ensure coordination of assistancefrom the different Funds between the Funds and with assistance fromthe EIB and other existing financial instruments.
In order to maximise the stimulus provided by the budget resources
deployed, making use of appropriate financial instruments, the Commu-nity assistance provided in the form of grants may be combined in anappropriate way with loansand guarantees . Thiscombination may bedetermined in conjunction with the EIB when the Community support
framework or single programming document is being drawn up. It may
take account of the balance in the proposed financing plan, the contri-bution from the Fundsand the development goalspurs ued.
3. No later than one month from the entry into force of thisRegula-
tion and subsequently before the mid-term review referred to inArticle 42, and on each occasion after consulting all Member States,the Commission shall publish broad, indicative guidelines on relevantand agreed Community policiesin relation to the objectivesreferredto in Article 1, to help the competent national and regional authorities1999R1260 — EN — 27.06.2003 — 002.001 — 17
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to draw up development plansand to carry out any revis ion 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 Fundsmay not replace public or other equivalent s tructuralexpenditure by the Member State.
2. For this purpose, the Commission and the Member State
concerned shall determine the level of public or equivalent structuralexpenditure that the Member State isto maintain in the s um of itsregionscovered 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 onthe active labour-market policy and, where justified, other actions
designed to make it possible to achieve the goals of those two Objec-
tiveswhich the Member State isto maintain at national level during theprogramming 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 anyCommunity support framework or single programming documentsrelating to the Member State concerned and shall be integrated into
those documents.
Asa general rule, the level of expenditure referred to in the firs t and
second subparagraphs shall be at least equal to the amount of average
annual expenditure in real termsachieved in the previousprogrammingperiod and shall be determined in the light of the general macroeco-nomic circumstances in which the funding takes place, althoughaccount should be taken of certain specific economic situations, namely
privatisations, an exceptional level of public structural effort or equiva-
lent 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 expen-
diture when compared to the period 1994 to 1999.
3. Additionality shall be verified at the territorial level set out in
paragraph 2 at three pointsduring the programming period:
(a) an ex-ante verification 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 yearsafter approval of
the Community support framework or the single programmingdocumentsand asa general rule no later than 31 December 2003,
following which the Commission and the Member State may agree
to revise the level of structural expenditure to be attained if theeconomic situation has resulted in developments in public revenueor employment in the Member State concerned significantlydifferent from those expected at the time of the ex-ante verifica-
tion;
(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 plansare s ubmitted and
when the mid-term verification and the verification before 31 December2005 are made. Where necessary, methods of statistical estimation shallbe used.
Independently of these verifications, the Member State shall inform the
Commission at any point during the programming period of develop-mentslikely to call into ques tion itsability to maintain the level ofexpenditure referred to in paragraph 2.1999R1260 — EN — 27.06.2003 — 002.001 — 18
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Article 12
Compatibility
Operations financed by the Funds or receiving assistance from the EIB
or from another financial instrument shall be in conformity with theprovisions of the Treaty, with instruments adopted under it and withCommunity policiesand actions , including the ruleson competition,
on the award of public contracts, on environmental protection and
improvement and on the elimination of inequalitiesand the promotionof equality between men and women.
TITLE II
PROGRAMMING
CHAPTER I
GENERAL PROVISIONS CONCERNING OBJECTIVES 1, 2
AND3
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 most
appropriate but shall, as a general rule, cover a single region at NUTSlevel II. However, Member Statesmay s ubmit a general developmentplan covering some or all of their regions included in the list referredto in Article 3(2), Article 6(1) and Article 7(4), provided that such plancontainsthe featureslis ted 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 coveredby a single NUTS level II region, included in the list referred to in
Article 4(4) and Article 6(2). However, the Member Statesmay s ubmit
a plan covering certain or all of their regionsincluded in the lis treferred to in Article 4(4) and in Article 6(2), provided that such plancontainsthe featureslis ted in Article 16. Where planscover regionsother than those eligible under Objective 2, they shall distinguishbetween operationsin regionsor areascovered by Objective 2 and
operationsels ewhere.
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 needsof areasfacingstructural problems of socio-economic conversion, shall provide, for
the whole of the national territory, a framework of reference for devel-
oping human resources.
Article 14
Durationandrevision
1. Each plan, Community support framework, operational
programme and single programming document shall cover a period ofseven years, without prejudice to Article 6 and Article 7(4), firstsubparagraph.
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 in
agreement with the Member State, in accordance with thisTitle
following the mid-term evaluation referred to in Article 42 and theallocation of the performance reserve referred to in Article 44.
They may also be revised in the event of significant changes in the
socio-economic situation and the labour market.1999R1260 — EN — 27.06.2003 — 002.001 — 19
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Article 15
Preparation andapproval
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 competent
authoritiesdes ignated 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 singleprogramming document.
In respect of Objective 1, Community support frameworks shall be
employed for all regionscovered by Objective 1; however, where the
Community allocation is less than or does not substantiallyexceed EUR 1 000 million, the Member Statess hall, asa general rule,submit a draft single programming document.
In respect of Objectives 2 and 3, single programming documents shall
asa general rule be employed; however, Member Statesmay elect to
have a 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 expresstheir views within a period of time consistent with the deadline set inthe second subparagraph.
Unless otherwise agreed with the Member State concerned, plans shall
be submitted not later than four months after the list of eligible regions
referred 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 ofthe framework of reference referred to in Article 9(1)(c), otherCommunity policiesand 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 accor-dance with Article 16(1)(b) and having regard to the manner in whichand the degree to which the general needsof areasfacing s tructuralproblems of socio-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 withthe Member State concerned and following the procedureslaid downin Articles48 to 51. The EIB may be involved in the preparation ofthe Community support frameworks. The Commission shall take adecision on the contribution from the Funds not later than five months
after receiving the relevant plan or plansprovided they contain all the
featureslis ted in Article 16.
The Commission shall appraise the proposed operational programmes
submitted by the Member State to determine whether they are consis-tent with the aims of the corresponding Community support framework
and compatible with other Community policies. It shall adopt a deci-
sion on the contribution of the Funds in accordance with Article 28(1)and in agreement with the Member State concerned, provided that theproposals contain all the features listed in Article 18(2).
In order to expedite the examination of applicationsand the implemen-
tation of programmes, the Member States may submit, at the same time
as their plans, draft operational programmes. When adopting its deci-
sion on a Community support framework, the Commission shall alsoapprove, in accordance with Article 28(1), the operational programmessubmitted at the same time as the plans provided they include all thefeatureslis ted in Article 18(2).
5. Where applicable asprovided in paragraph 1 on the bas isof the
plans, the Commission shall take a decision on the single programming
documentsin agreement with the Member State concerned, followingthe procedureslaid down in Articles48 to 51. The EIB may beinvolved in the preparation of the single programming documents. TheCommission shall take a single decision on the single programmingdocument and the contribution of the Fundspurs uant to Article 28(1)1999R1260 — EN — 27.06.2003 — 002.001 — 20
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not later than five monthsafter having received the relevant plan,
provided that it containsall the featureslis ted in Article 19(3).
6. The Member State or the managing authority shall adopt the
programme complement defined in Article 9(m) after the agreementof the Monitoring Committee if the programme complement isdrawn
up after the Commission decision on the contribution of the Funds, or
after consulting the relevant partners if it is drawn up before the deci-sion on the contribution of the Funds. In the latter case, the MonitoringCommittee shall either confirm the programme complement or requestan adjustment in accordance with Article 34(3).
Within three months of the Commission decision approving an opera-
tional programme or single programming document, the Member Stateshall send the programme complement to the Commission in a single
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, thesedecisions and the Community support framework and single program-ming documentsit hasapproved.
CHAPTER II
CONTENT OF THE PROGRAMMING FOR OBJECTIVES 1, 2
AND3
Article 16
Plans
1. The plans submitted under Objectives 1, 2 and 3 shall be based
on appropriate national and regional prioritiesand s hall take accountof the indicative 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 andpotential for development in the regionscovered by Objective 1,or in termsof convers ion in the areascovered by Objective 2, or
in termsof developing human res ourcesand employment policy
in the Member State and the areascovered by Objective 3; als o, adescription of the financial resources deployed and the main resultsof operationsundertaken in the previousprogramming period withregard to the evaluation results available;
(b) a description of an appropriate strategy to attain the objectives
referred to in Article 1 and the priorities selected for the sustain-
able development and conversion of regions and areas, includingrural areas, and the related development of human resources andthe adaptation and modernisation of policies and systems foreducation, training and employment.
In addition to the other itemslis ted in thispoint, Member States
shall demonstrate in each Objective 3 plan that the priorities
planned are consistent with the prevailing national employmentplan, by reference to a description of the main aims of the strategyand the main meansof attaining them.
Similarly, Member States shall demonstrate that the activities
provided for in each Objective 2 plan on human resources and
employment to be assisted by the ESF are integrated into theconversion strategy, coordinated with the other Funds and consis-tent with the ex-ante evaluation relating to human resources and
employment asreferred to in Article 41(2). If thes e needsdo notamount to a significant sum, they shall be covered by Objective 3;
(c) an indication of the planned use and form of the financial contribu-
tion from the Fundsand, where appropriate, the EIB and the otherfinancial instruments including, for information, the total amountfrom the EAGGF Guarantee Section for the measures referred toin Article 33 of Regulation (EC) No 1257/1999; the expectedrequirement for technical assistance; an indication as regards addi-1999R1260 — EN — 27.06.2003 — 002.001 — 21
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tionality in accordance with Article 11(2), whereby for Objective 1
thiss hould take the form of an indicative overall financing tablesummarising the public or equivalent and, where appropriate, esti-
mated 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 envel-
opes allocated to areas receiving transitional support and thoseallocated to other areascovered by Objective 1 or 2.
In the case of ESF assistance under Objective 2 or 3, the percen-
tage contribution may be higher in Objective 2 areasthan in others .
In the case of Objective 3, this financing plan shows the concentra-
tion of appropriationsplanned for the areasfacing s tructuralproblems of economic and social conversion;
(d) an account of arrangements made to consult partners.
2. For regionscovered by Objective 1, the planss hall 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 iscovered in itsentirety by Objective 1, the
plan shall cover the points in the second subparagraph ofparagraph (1)(b).
3. Member Statess hall indicate the particularsrelating to each Fund,
including the amount of the financial contribution requested and anoutline of the operational programmesplanned with particular regardto their specific aims and the main types of actions planned.
Article 17
Communitysupportframeworks
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 develop-ment 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 lendthemselves to quantification; evaluation of the expected impact inaccordance with Article 41(2); an indication of how thiss trategyand these priorities have taken account of the indicative guidance
referred to in Article 10(3), the economic policies, the strategy for
developing employment through improving the adaptability andskills of people and, where appropriate, the regional policies ofthe Member State concerned;
(b) an indication of the nature and the duration of the operational
programmesnot decided at the s ame time asthe Community
support framework, including their specific aims and the prioritiesselected;
(c) an indicative financing plan specifying, in accordance with
Articles28 and 29, for each priority and each year, the financialallocation envisaged for the contribution of each Fund, where
appropriate the EIB, the other financial instruments — including,
for information, the total amount from the EAGGF GuaranteeSection for the measures referred to in Article 33 of Regulation(EC) No 1257/1999 — where they contribute directly to the finan-cing plan concerned and the total amount of eligible public and
estimated private funding relating to the contribution of each Fund.
In the case of Objective 3, that financing plan shall show the
concentration of appropriationsplanned for the areasfacing s truc-tural problems of economic and social conversion.
This financing plan shall distinguish the funding planned for the
regions receiving transitional support.1999R1260 — EN — 27.06.2003 — 002.001 — 22
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The total contribution of the Fundsplanned for each year for each
Community support framework shall be compatible with the rele-vant 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 managingthe Community support framework in accordance with
Article 34,
— arrangementsfor involving the partnersin the Monitoring
Committeesdes cribed in Article 35;
(e) where appropriate, information on the appropriationsrequired for
preparing, monitoring and evaluating assistance.
In accordance with Article 11, the Community support frameworks
shall include the ex-ante verification of additionality and the appro-
priate information concerning the transparency of financial flows, in
particular from the Member State concerned to the beneficiary regions.
Article 18
Operationalprogrammes
1. Assistance covered by a Community support framework shall as a
general rule be provided in the form of an integrated operationalprogramme by region, asdefined 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 ofthe 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 compliance
with aid schemes pursuant to Article 87 of the Treaty; where
appropriate, 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 Articles28 and 29, the financial allocationenvisaged for the contribution of each Fund, the EIB where appro-
priate, and the other financial instruments — including, for
information, 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 finan-cing plan, aswell asthe 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
variousFundsthe funding planned for the regionsreceiving trans i-tional support.
The total contribution of the Fundsplanned for each year s hall be
compatible with the relevant financial perspective, taking accountof the 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 managingthe 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 proceduresconcerning the mobilis ation and
circulation of financial flows to ensure their transparency;1999R1260 — EN — 27.06.2003 — 002.001 — 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-ante evaluation, in accordance with
Article 41(3), of quantified measures, where they lend themselves
to quantification; the relevant monitoring indicatorsin accordancewith Article 36;
(b) the definition of the types of final beneficiary of measures;
(c) the financing plan specifying for each measure, in accordance with
Articles28 and 29, the financial allocation envis aged for the contri-bution of the Fund concerned, the EIB where appropriate, and theother 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 withArticle 29 and the total amount of Community fundsallocated tothe priority concerned.
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 accor-
dance 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 requirementsof thisRegulation.
Article 19
Singleprogrammingdocuments
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)and rural 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) No 1257/1999, the coordinationof rural development measures pursuant to Article 33 of that Regula-tion, but excluding assistance for developing human resources grantedunder Objective 3, in all the areascovered 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 inthisarea 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 guidelinesreferred to inArticle 10(3), the economic policies, the strategy for developing1999R1260 — EN — 27.06.2003 — 002.001 — 24
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employment through improving the adaptability and skills of
people and, where appropriate, the regional policiesof the MemberState concerned;
(b) a summary description of the measures planned to implement the
priorities, including the information needed to check the compli-
ance with 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 Articles28 and 29, the financial allocationenvisaged for the contribution of each Fund, the EIB where appro-priate, and the other financial instruments — including, for
information, the total amount from the EAGGF Guarantee Section
for the measures referred to in Article 33 of Regulation (EC)No 1257/1999 — in so far as they contribute directly to the finan-cing plan, aswell asthe total amount of eligible public orequivalent and estimated private funding relating to the contribu-
tion of each Fund.
This financing plan shall distinguish the funding planned for the
regions receiving transitional support.
The total contribution of the Fundsplanned for each year s hall be
compatible with the relevant financial perspective, taking account
of the degressivity referred to in the third subparagraph ofArticle 7(3).
In the case of Objective 3, the financing plan shall indicate the
concentration of appropriationsplanned for the areasfacing s truc-tural, 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 proceduresconcerning the mobilis ation 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-ante verification of additionality for the relevant objec-
tive or objectivesagreed between the Member State and theCommission and appropriate 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 asdefined in Article 9(m) and des cribed in
Article 18(3).
CHAPTER III
COMMUNITYINITIATIVES
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 develop-ment of the whole of the Community area (‘Interreg’);1999R1260 — EN — 27.06.2003 — 002.001 — 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
formsof dis crimination and inequalitiesin connection with thelabour 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 particularin the perspective 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. Programmesapproved within the framework of the Community
initiativesmay cover areasother than thos e referred to in Articles3and 4.
Article 21
Preparation, approvalandimplementation
1. In accordance with the proceduresreferred to in Articles48 to 51
and after notifying them for information to the European Parliament,the Commission shall lay down guidelines describing, for each initia-
tive, the aims, scope and the appropriate method of implementation.
Those guidelines 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, the area referred to in paragraph 1(c) from the EAGGF
Guidance Section and the area referred to in paragraph 1(d) from theESF. The decision on the contribution of a Fund may amplify the scopeof each Fund asdefined in the Regulationss pecific to each Fund, butwithout broadening it, to include all measures required to implementthe Community initiative programme concerned.
3. On the basis of proposals drawn up in accordance with the guide-
linesreferred to in paragraph 1 and with Article 41(2) and s ubmittedby the Member State(s), the Commission shall decide on Communityinitiative programmesin accordance with Article 28.
4. The Community initiative programmess hall be re-examined
following the mid-term evaluation referred to in Article 42 and
amended where required on application by the Member State(s)concerned or by the Commission by agreement with the MemberState(s).
5. The Community initiative programmess hall cover a period of
seven years, beginning on 1 January 2000.
CHAPTER IV
INNOVATIVEACTIONSANDTECHNICALASSISTANCE
Article 22
Innovativeactions
1. At the initiative of the Commission and following consultation of
the committeesreferred to in Articles48 to 51 on the guidelinesfor thevarious types of innovative actions, subject to a ceiling of 0,40 % oftheir respective annual funding, the Funds may finance innovativeactions at Community level. These shall include studies, pilot projectsand exchangesof experience.1999R1260 — EN — 27.06.2003 — 002.001 — 26
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Such innovative actionss hall contribute to the preparation of innova-
tive methodsand practicesdes igned to improve the quality ofassistance under Objectives 1, 2 and 3. They shall be implemented in
a simple, transparent fashion and in accordance with the principles of
sound financial management.
2. Each field of action for pilot projectss hall 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,
but without broadening it, to include all measures required to imple-ment the pilot project concerned.
Article 23
Technical assistance
At the initiative or on behalf of the Commission and following consul-
tation of the committeesreferred to in Articles48 to 51 on the differenttypes of measures, subject to a ceiling of 0,25 % of their respectiveannual allocation, the Fundsmay finance the preparatory, monitoring,
evaluation and checking measures necessary for implementing this
Regulation. These shall include:
(a) studies, including studies of a general nature, concerning the opera-
tionsof the Funds ;
(b) measures of technical assistance, the exchange of experience and
information aimed at the partners, the final beneficiaries of assis-tance from the Fundsand the general public;
(c) the installation, operation and interconnection of computerised
systems for management, monitoring and evaluation;
(d) improvementsin evaluation methodsand exchange of information
on practicesin thisfield.
Article 24
Approvalofinnovativeactionsandtechnical assistance
1. Making use of information on innovative actions from the
Member States concerned, the Commission shall appraise applications
for a contribution from the Fundspurs uant to Articles22 and 23 on thebasis of 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 contributionsfrom any
other source of Community finance;
(d) provisions to ensure efficient and correct implementation;
(e) any other information necessary to verify compatibility with
Community policiesand with the guidelinesreferred to inArticle 10(3).
The Commission shall approve the contribution of the Funds when this
information enablesit to apprais e the application.
2. The Member Statesconcerned s hall be immediately notified by
the Commission following approval of an application.
3. The financial liability of the Member Stateswithin the meaning
of thisRegulation s hall not be engaged for the innovative actionsreferred to in Article 22 or the technical assistance measures referredto in Article 23, without prejudice to their obligationsaris ing out ofthe institutional arrangements specific to each Member State.1999R1260 — EN — 27.06.2003 — 002.001 — 27
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CHAPTER V
MAJORPROJECTS
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 clearly iden-tified aims; and
(b) whose total cost taken into account in determining the contribution
of the FundsexceedsEUR 50 million.
Article 26
Approvalandimplementation
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 thefollowing information:
(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, including
an indication of the anticipated rate of use, the foreseeableimpact on the development or conversion of the regionconcerned, and the application of Community ruleson 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 effectson the employment s ituation, asfar
as possible in the Community;
(g) information allowing an evaluation to be made of the environ-
mental impact and the implementation of the precautionaryprinciple and the principlesthat preventive action s hould be taken,that environmental damage should as a priority be rectified at
source and that the polluter should pay and compliance with the
Community ruleson the environment;
(h) information needed to assess compliance with competition rules,
inter alia ruleson State aids ;
(i) an indication of the influence of the contribution of the Fundson
whether the project will be implemented;
(j) the financing plan and the total financial resources expected from
the contribution of the Fundsand any other s ource 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;1999R1260 — EN — 27.06.2003 — 002.001 — 28
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(d) consistency with the priorities in the corresponding assistance;
(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 monthsof receipt of the information referred to in
paragraph 1 or three monthswhere cons ultation of the EIB proves
necessary, the Commission shall decide to confirm or amend the level
of Community assistance. If it considers that the project appears not tojustify either part or all of the contribution from the Funds, it maydecide to withhold part or all of that contribution, stating the reasonsfor so doing.
CHAPTER VI
GLOBALGRANTS
Article 27
Globalgrants
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 manage-ment. They must normally be established or represented in the regionor regions concerned but may, in limited and justified circumstances,be established 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 ofthe planned measures.
2. The choice of a global grant shall appear in the corresponding
decision on the contribution of the Funds as a special implementingprovision as defined in Article 18(2)(d) and Article 19(3)(d). Theprocedures for the use of global grants shall be the subject of an agree-ment 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 the
subject of an agreement between the Commission and the intermediary
body concerned. In the case of Community initiative programmes,these procedures must also be agreed with the Member Statesconcerned. The programme complement referred to in Article 18 shallnot 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 parti-
cular:
(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 arrangementsfor monitoring, evaluating and ens uring the finan-
cial control of the global grant;
(e) where applicable, any use of a bank guarantee, in which case the
Commission must be informed.1999R1260 — EN — 27.06.2003 — 002.001 — 29
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TITLE III
CONTRIBUTIONS AND FINANCIAL MANAGEMENT BY THE
FUNDS
CHAPTER I
FINANCIALCONTRIBUTIONSBYTHEFUNDS
Article 28
DecisiononthecontributionsfromtheFunds
1. Provided that all the requirementsof thisRegulation are fulfilled,
the Commission shall adopt in a single decision the contributions of allthe Funds within five months of receipt of the application for assis-tance. 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 Struc-
tural Fund under only one of the objectivesreferred 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 Fundsto operational programmesunder-
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 repay-
able assistance, an interest-rate subsidy, a guarantee, an equity holding,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 oftheratesofcontribution
1. The contribution of the Fundss hall 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 itsrelative pros perity and the need to avoidexcessive increases in budget expenditure;
(c) within the framework of the objectivesof the Fundss et out in
Article 1, the importance attaching to the assistance and the priori-
tiesfrom the Community viewpoint, where appropriate, for the
elimination of inequalitiesand 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-paysprinciple;1999R1260 — EN — 27.06.2003 — 002.001 — 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 needsidentified 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 use made of appropriate financial instruments in accordance
with Article 10(2), and the choice of formsof financing ass et out
in Article 28(3).
Where the contribution of the ESF isdifferentiated in accordance with
Article 16(1), thiss hall be done taking account of the needsidentified
by the ex-ante evaluation, notably in the field of human resources and
employment.
2. The contribution from the Fundss hall 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 regionscovered by Objective 1. Where theregionsare located in a Member State covered by the Cohes ionFund, the Community contribution may rise, in exceptional andduly justified cases, 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 theirdistant location. The Community contribution for all the outermostregions may rise, in exceptional and duly justified cases, to amaximum of 85 % of the total 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 areascovered by Objective 2 or 3.
In the case of investment in firms, the contribution of the Funds shall
comply with the ceilingson the rate of aid and on combinationsof 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 invest-
ments shall be determined in the light of their intrinsic characteristics,including the size of the gross self-financing margin which wouldnormally be expected for the class of investments concerned in thelight of the macro-economic circumstances in which the investmentsare 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
extra 10 % in the Member Statescovered by the Cohes ionFund;
(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 increasedoesnot exceed 10 % of the total eligible cos t;1999R1260 — EN — 27.06.2003 — 002.001 — 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
of investments in accordance with Regulation (EC) No 1257/
1999, in the case of investments in small and medium-sizedfirms;
►
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 amountfor forms of finance other than direct assistance, provided that
this increase does not exceed 10 % of the total eligible cost.
5. Referencesin paragraphs3 and 4 to the regionsand areascovered
by Objectives 1 and 2 shall also be construed as references to regions
or areas receiving on the one hand transitional support pursuant toArticle 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 Articles22 and 23 may be financed at a rate of 100 % of the totalcost. 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 contri-
bution from the Fundsonly if thes e operationsform part of theassistance concerned.
2. Expenditure may not be considered eligible for a contribution
from the Fundsif it hasactually been paid by the final beneficiarybefore the date on which the application for assistance reaches theCommission. That date shall constitute the starting point for the elig-
ibility of expenditure.
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
paymentsmade by the final beneficiaries . It may be extended by theCommission at the duly justified request of the Member State in accor-dance with Articles14 and 15.
3. The relevant national ruless hall 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 Fundsonly if that operation doesnot, within
five yearsof the date of the decis ion of the competent national autho-
ritiesor the managing authority on the contribution of the Funds ,undergo a substantial modification:
(a) affecting itsnature or itsimplementation conditionsor 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 produc-tive activity.
The Member States shall inform the Commission of any such modifica-
tion. Where such a modification occurs, Article 39 shall apply.1999R1260 — EN — 27.06.2003 — 002.001 — 32
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CHAPTER II
FINANCIALMANAGEMENT
Article 31
Budgetcommitments
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 yearss hall be asa general rule effected
annually. The first commitment shall be made when the Commission
lays down its decision approving the assistance. Subsequent commit-mentss hall be effected asa general rule by 30 April each year.
The Commission shall automatically decommit any part of a commit-
ment which hasnot been s ettled by the payment on account or for
which it hasnot received an acceptable payment application, asdefined
in Article 32(3), by the end of the second year following the year ofcommitment or, where appropriate and for the amountsconcerned,following the date of a subsequent Commission decision necessary inorder to authorise a measure or an operation or by the end of the dead-line for the transmission of the final report referred to in Article 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 corre-sponding to operations which, at the specified date of decommitment,
are the subject of a judicial procedure, or an administrative appeal
having suspensory effects, subject to the Commission receiving priorinformation giving reasons from the Member State concerned and toinformation being issued by the Commission.
In any case, the Commission shall in good time inform the Member
State and the paying authority whenever there isa ris k of application
of the automatic decommitment provided for in the second subpara-
graph.
If thisRegulation entersinto force after 1 January 2000, the period for
automatic decommitment referred to in the second subparagraph shallbe extended for the first commitment by the number of months
between 1 January 2000 and the date of the decision on the contribu-
tionsfrom the Fundsreferred to in Article 28.
3. For assistance to be carried out over a period of less than two
yearsthe total amount of the contribution from the Fundss hall becommitted when the Commission adopts its decsion granting a contri-
bution 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.
Paymentsmay take the form of paymentson account, interim payments
or paymentsof the final balance. Interim paymentsand paymentsofthe balance shall relate to expenditure actually paid out, which must
correspond to payments effected by the final beneficiaries, supported
by receipted invoicesor accounting documentsof equivalent probativevalue.
Subject to available funding, the Commission shall make interim
paymentswithin no more than two monthsof receipt of an acceptablepayment application, asdes cribed in paragraph 3.1999R1260 — EN — 27.06.2003 — 002.001 — 33
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The paying authority shall ensure that final beneficiaries receive
payment of their contribution from the Fundsasquickly aspos s ibleand 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. Thispayment on accountshall be 7 % of the contribution from the Funds to the assistance in
question. In principle, it may be subdivided over two budget years at
most 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 Commissionby the paying authority if no payment application iss ent to theCommission within 18 months of its decision to grant a contributionfrom 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 Fundsascertified by the payingauthority. Such payments shall be made at the level of each assistance
and calculated at the level of measures contained in the financing plan
of the 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 infor-
mation specified in Article 37 has been forwarded to the
Commission;
(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 contribution
from the Fundsgranted to the prioritiesconcerned;
(e) any recommendationsasreferred to in Article 34(2) have been
acted upon within the specified period, or reasons have been
communicated by the Member State to explain why no measure
hasbeen taken, where thos e recommendationsare intended toremedy serious shortcomings in the monitoring or managementsystem which undermine proper financial management of the assis-tance; any requests for corrective measures as referred to inArticle 38(4) have been acted upon, if the application relatesto
the measure or measures concerned;
(f) no suspension of payments under the first subparagraph of
Article 39(2) hasbeen decided, and no decis ion hasbeen taken by
the Commission to embark on an infringement procedure withinthe meaning of Article 226 of the Treaty concerning the measure(s)that is or are the subject of the application in question.
The Member State and the paying authority shall be informed immedi-
ately by the Commission if one of these conditions is not fulfilled and
the payment application istherefore not acceptable and they s hall takethe 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 three
times a year, the last application being presented no later than
31 October.
Applications for interim payments shall distinguish, for each priority,
the expenditure incurred in regionsand areasreceiving trans itionalsupport.1999R1260 — EN — 27.06.2003 — 002.001 — 34
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The combined total of the paymentsreferred 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 a
contribution from the Funds, a certified statement of expenditure
actually paid;
(b) the final report on implementation hasbeen s ubmitted 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 anapplication to the Commission within nine months from the date oftransfer 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 in
Article 23 and inform the committeesreferred to in Articles48 to 51.
Article 33
Useoftheeuro
Commission decisions, commitments and payments shall be denomi-
nated and carried out in euro in accordance with the arrangementsto
be drawn up by the Commission under the procedure referred to in
Article 53(2).
TITLE IV
EFFECTIVENESSOFASSISTANCEFROMTHEFUNDS
CHAPTER I
MONITORING
Article 34
Managementbythemanagingauthority
1. Without prejudice to Article 8(3), the managing authority as
defined in Article 9(n) shall be responsible for the efficiency andcorrectness of management and implementation, and in particular for:
(a) setting up a system to gather reliable financial and statistical infor-
mation on implementation, for the monitoring indicatorsreferred toin Article 36, and for evaluation in compliance with Articles42
and 43; and for forwarding thisdata in accordance with arrange-
ments agreed between the Member State and the Commission,using where possible computer systems permitting the exchange ofdata with the Commission, as defined in Article 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 — 27.06.2003 — 002.001 — 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 separateaccounting system or an adequate accounting code for all transac-
tions relating to the assistance;
(f) ensuring the correctness of operations financed under the assis-
tance, particularly by implementing internal controlsin keeping
with the principlesof s ound financial management and acting inresponse to any observations or requests for corrective measuresadopted pursuant to Article 38(4), first subparagraph, or recommen-dationsfor adjus tment made under paragraph 2 of thisArticle 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
on the award of public contracts, notices sent for publication intheOfficial Journal of the European Communities shall specify
those projects in respect of which a contribution from the Fundshasbeen applied for or granted;
(h) compliance with the obligationsconcerning information and publi-
city 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 theinstitutional, legal and financial systems of the Member Stateconcerned.
2. Every year, when the annual implementation report referred to in
Article 37 is submitted, the Commission and the managing authorityshall review the main outcomes of the previous year, in accordancewith arrangementsto be defined by agreement with the Member Stateand the managing authority concerned.
After this review, the Commission may make comments to the Member
State and the managing authority. The Member State shall inform theCommission of the action taken on these comments. Where in dulysubstantiated cases the Commission considers that the measures takenare inadequate, it may make recommendationsto the Member State
and the managing authority for adjustments aimed at improving the
effectiveness of the monitoring or management arrangements for theassistance, together with the reasons for any such recommendations. Ifit receives any such recommendations, the managing authority shallsubsequently demonstrate the steps taken to improve the monitoring
or management arrangementsor it s hall explain why it hasnot taken
any.
3. The managing authority shall, at the request of the Monitoring
Committee or on itsown initiative, adjus t the programme complement,
without changing the total amount of the contribution from the Funds
granted to the priority concerned nor its specific targets. After approvalby the Monitoring Committee, it shall inform the Commission of theadjustment within one month.
Any amendmentsto the elementscontained in the decis ion on the
contribution of the Funds shall be decided by the Commission, in
agreement with the Member State concerned, within four monthsofdelivery of the Monitoring Committee'sapproval.
Article 35
MonitoringCommittees
1. Each Community support framework or single programming
document and each operational programme shall be supervised by aMonitoring Committee.
Monitoring Committees shall be set up by the Member State, in agree-
ment with the managing authority after consultation with the partners.The partnerss hall promote the balanced participation of women andmen.1999R1260 — EN — 27.06.2003 — 002.001 — 36
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The Monitoring Committees shall be set up no more than three months
after the decision on the contribution of the Funds. The MonitoringCommittees shall act under the authority and within the legal jurisdic-
tion 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
an advisory 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 represen-
tative 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 be
used 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 opera-
tions financed under each measure within six months of approvalof the assistance;
(c) it shall periodically review progress made towards achieving the
specific objectives of the assistance;
(d) it shall examine the results of implementation, particularly achieve-
ment of the targets set for the different measures and the mid-termevaluation 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 adjust-
ment or review of the assistance likely to make possible theattainment of the objectivesreferred to in Article 1 or to improvethe management of assistance, including in respect of financial
management. Any adjustment to the assistance shall be made in
accordance with Article 34(3).
Article 36
Monitoringindicators
1. The managing authority and the Monitoring Committee shall
carry out the monitoring by reference to physical and financial indica-tors specified in the operational programme, single programmingdocument, or programme complement. In drawing up their indicators,
they should take into account the indicative methodology and list of
examples of indicators published by the Commission, as well as a cate-gorisation of fields of intervention to be proposed by the Commissionupon entry into force of thisRegulation. The indicatorss hall relate tothe specific character of the assistance concerned, its objectives and thesocio-economic, structural and environmental situation of the Member
State concerned and its regions, as appropriate, and shall take account,
where appropriate, of the existence of regions or areas receiving transi-tional support. These indicators shall include, in particular, those usedfor 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 quan-
tification, for the measures and priorities, and their mutualconsistency;
(b) the stage reached in the assistance in terms of physical implemen-
tation, results and, as soon as practicable, its impact at theappropriate level (priority or measure);1999R1260 — EN — 27.06.2003 — 002.001 — 37
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(c) the progress of the financing plan.
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 infor-
mation set out in paragraph 2(a), (b) and (c) can be identifiedseparately for major projects.
Article 37
Annualandfinalimplementationreports
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 the
Commission 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 last
payment 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 deemedto 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 reportss hall include the
following information:
(a) any change in general conditionswhich isof relevance to the
implementation of the assistance, in particular the main socio-economic trends, changes in national, regional or sectoral policiesor in the frame of reference referred to in Article 9(c) and, where
applicable, their implications for the mutual consistency of assis-
tance from the different Funds and consistency between Fundassistance 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 quan-tification, 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 paying
authority and a record of the total paymentsreceived from the
Commission and quantifying the financial indicators referred to inArticle 36(2)(c); financial implementation in the areasreceivingtransitional support shall be presented separately in respect ofeach priority; financial implementation of the EAGGF GuaranteeSection for 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 mana-
ging the assistance and any measures taken, including actionon recommendations for adjustments made pursuant toArticle 34(2) or requests for corrective measures pursuant toArticle 38(4);1999R1260 — EN — 27.06.2003 — 002.001 — 38
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(iii) the use made of technical assistance;
(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) andthe second subparagraph of Article 19(2);
(f) a separate section, where appropriate, on the progress and financing
of major projectsand global grants .
CHAPTER II
FINANCIALCONTROL
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 financialcontrol of assistance. To that end, the measures they take shall include:
(a) verifying that management and control arrangementshave been s et
up and are being implemented in such a way as to ensure that
Community fundsare being us ed efficiently and correctly;
(b) providing the Commission with a description of these arrange-
ments;
(c) ensuring that assistance is managed in accordance with all the
applicable Community rulesand that the fundsplaced at theirdisposal are used in accordance with the principles of sound finan-cial management;
(d) certifying that the declarationsof expenditure pres ented to the
Commission are accurate and ensuring that they result from
accounting systems based on verifiable supporting documents;
(e) preventing, detecting and correcting irregularities, notifying these
to the Commission, in accordance with the rules, and keeping the
Commission 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 functionindependent of the designated managing authority. This declaration
shall summarise the conclusions of the checks carried out during
previous years and shall assess the validity of the application forpayment of the final balance and the legality and regularity of thetransactions covered by the final certificate of expenditure. TheMember Statesmay attach their own opinion to thiscertificate 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 thatMember Stateshave s moothly functioning management and controlsystems so that Community funds are efficiently and correctly used.
To that end, without prejudice to checkscarried out by the Member
States in accordance with national laws, regulations and administrativeprovisions, Commission officials or servants may, in accordance with
arrangementsagreed with the Member State in the framework of coop-
eration 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 State1999R1260 — EN — 27.06.2003 — 002.001 — 39
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concerned with a view to obtaining all the assistance necessary. Offi-
cialsor s ervantsof the Member State concerned may take part insuch checks.
The Commission may require the Member State concerned to carry out
an on-the-spot check to verify the correctness of one or more transac-
tions. 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 useful-ness of those carried out. They shall immediately exchange the resultsof the checkscarried 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 eval-
uated:
(a) the results of the checks carried out by the Member State and the
Commission;
(b) any commentsmade by other national or Community control
bodies or institutions;
(c) the financial impact of the irregularitiesnoted, the s tepsalready
taken or still required to correct them and, where necessary, adjust-ments to the management and control systems.
4. Following thisexamination and evaluation and without prejudice
to the measures to be taken immediately by the Member State underthis Article 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 Stateand the managing authority of the assistance concerned. The observa-tions shall be accompanied, where necessary, by requests forcorrective measures to remedy the management shortcomings found
and correct those irregularities detected which have not already been
corrected. The Member State shall have the opportunity to commenton these observations.
Where, following or in the absence of comments from the Member
State, the Commission adopts conclusions, the Member State shalltake 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 veri-
fication, may suspend all or part of an interim payment if it finds that
the expenditure concerned islinked to a s eriousirregularity which hasnot been corrected and that immediate action isneeded. The Commis -sion shall inform the Member State concerned of the action taken andthe reasons for it. If, after five months, the reasons for the suspensionremain or the Member State concerned hasnot notified the Commis -
sion of the measures taken to correct the serious irregularity, the
provisions laid down under Article 39 shall apply.
6. For a period of three years, unless otherwise decided in the bilat-
eral 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 in
conformity with the originalson commonly accepted data carriers )
regarding expenditure and checks on the assistance concerned. Thisperiod shall be interrupted either in the case of legal proceedings or atthe duly motivated request of the Commission.
Article 39
Financialcorrections
1. The Member States shall, in the first instance, bear the responsi-
bility for investigating irregularities, acting upon evidence of any majorchange affecting the nature or conditionsfor the implementation orsupervision of assistance and making the financial corrections required.1999R1260 — EN — 27.06.2003 — 002.001 — 40
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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 the
Community contribution. The Community fundsreleas ed in thisway
may be re-used by the Member State for the assistance concerned, incompliance with the arrangementsto be defined purs uant toArticle 53(2).
2. If, after completing the necessary verifications, the Commission
concludesthat:
(a) a Member State hasnot complied with itsobligationsunder
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 Commis-
sion, the Member State shall be invited to a hearing by theCommission, in which both sides in cooperation based on the partner-ship make efforts to reach an agreement about the observations and theconclusions to be drawn from them.
3. At the end of the period set by the Commission, the Commission
may, if no agreement hasbeen reached and the Member State hasnotmade the correctionsand taking account of any commentsmade by the
Member State, decide within three monthsto:
(a) reduce the payment on account referred to in Article 32(2); or
(b) make the financial correctionsrequired 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 implicationsofthe shortcomings found in the management or control systems of the
Member States.
In the absence of a decision to do either (a) or (b) the interim payments
shall immediately cease to be suspended.
4. Any sum received unduly and to be recovered shall be repaid to
the Commission, together with interest on account of late payment.
5. ThisArticle s hall apply without prejudice to Article 32.
CHAPTER III
EVALUATION
Article 40
General provisions
1. In order to gauge its effectiveness, Community structural assis-
tance shall be the subject of ex-ante , mid-term and ex-post evaluation
designed to appraise its impact with respect to the objectives set out in
Article 1 and to analyse its effects on specific structural problems.
2. The effectiveness of the operations of the Funds shall be
measured by the following criteria:
(a) their overall impact on the goalss et out in Article 158 of the
Treaty, and in particular the strengthening of the economic andsocial cohesion of the Community;1999R1260 — EN — 27.06.2003 — 002.001 — 41
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(b) the impact of the prioritiespropos ed in the development plansand
of the prioritiesincorporated in each Community s upport frame-work and in each case of assistance.
3. The competent authoritiesof the Member Statesand the Commis -
sion shall assemble the appropriate resources and collect the datarequired to ensure that this evaluation can be carried out in the most
effective manner. In this connection, evaluation shall make use of the
variousparticularsthat the monitoring arrangementsmay yield, s upple-mented where necessary by the gathering of information to improve itsrelevance.
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 to identi-fying transferable experience.
4. The results of the evaluation shall be made available to the
public, on request. As regards the results of the evaluation providedfor in Article 42, the Monitoring Committee'sagreement s hall be
required according to the institutional arrangements of each Member
State.
5. The evaluation proceduress hall be laid down in the Community
support frameworks and forms of assistance.
Article 41
Ex-anteevaluation
1. The purpose of ex-ante evaluation 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 respon-
sible for preparing the plans, assistance and programme complement.
2. For the preparation of plans and assistance ex-ante evaluation
shall involve an analysis of the strengths, weaknesses and potential ofthe Member 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 regionsor areasconcerned, including demographic trends , and the expectedimpact of the planned prioritiesfor action, quantifying their s pecifictargets in relation to the starting situation, where they lend themselves
thereto.
Theex-ante evaluation 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 to the European employment strategy, the environment andequality between men and women, and it shall include in particular:
(a) an ex-ante evaluation of the social and economic situation, mainly
trendsin the national labour market, including regionsencounteringparticular employment problemsand of the overall s trategy in thefield of human resource development and the way in which thisstrategy is linked to the national employment strategy as set out inthe national action plans;
(b) an ex-ante evaluation of the environmental situation of the region
concerned, in particular of those environmental sectors which will
presumably be considerably affected by the assistance; the arrange-ments to integrate the environmental dimension into the assistanceand how far they fit in with existing short- and long-term national,regional and local objectives(e.g. environmental management
plans); the arrangements for ensuring compliance with the Commu-
nity ruleson the environment. The ex-ante evaluation shall give a
description, quantified as far as possible, of the existing environ-mental situation and an estimate of the expected impact of thestrategy and assistance on the environmental situation;
(c) an ex-ante evaluation of the situation in terms of equality between
men and women with regard to labour market opportunitiesand1999R1260 — EN — 27.06.2003 — 002.001 — 42
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treatment 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 labour
market, on education and vocational training, on the establishment
of women in business and on the reconciliation of family andworking life.
Theex-ante evaluation shall verify the relevance of the proposed
implementing and monitoring arrangements, consistency with Commu-nity policiesand how far the indicative guidance referred to in
Article 10(3) hasbeen 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 purs uant 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 theuse made 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 toin Article 14(2).
3. The Commission shall examine the relevance and quality of the
evaluation on the basis of criteria defined beforehand by the Commis-
sion and the Member State in partnership, with a view to reviewing theassistance and allocating the reserve referred to in Article 44.
4. Asa continuation of mid-term evaluation, it s hall be updated for
each Community support framework and assistance and completed nolater than 31 December 2005 in order to prepare for subsequent assis-
tance operations.
Article 43
Ex-postevaluation
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 draw conclu-sions regarding policy on economic and social cohesion. It shall coverthe factors contributing to the success or failure of implementation and
the achievements and results, including their sustainability.
2.Ex-post evaluation 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.It shall be completed not later than three years after the end of theprogramming period.1999R1260 — EN — 27.06.2003 — 002.001 — 43
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CHAPTER IV
PERFORMANCERESERVE
Article 44
Allocationoftheperformance 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 programmesor
single programming documents on the basis of a limited number ofmonitoring indicators reflecting effectiveness, management and finan-cial implementation and measuring the mid-term results in relation totheir specific initial targets.
These indicators shall be decided by the Member State in close consul-
tation 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 aswell asthe mid-term evaluation report. The Member Statess hall 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 MemberState, taking account of its specific institutional features and theircorresponding programming, the commitment appropriations referredto in Article 7(5) to the operational programmesor s ingle programmingdocuments or their priorities which are considered to be successful. The
operational programmes or single programming documents shall be
adapted in accordance with Articles14 and 15.
TITLE V
REPORTSANDPUBLICITY
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,the Council, 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 CohesionFund, the EIB and other financial instruments. This report shall reviewin particular:
(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 finan-
cial 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 Regionsa report on the imple-mentation of thisRegulation during the preceding year. Thisreportshall 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 — 27.06.2003 — 002.001 — 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, including Commu-nity initiatives;
— an annual evaluation of innovative actions and technical assis-
tance;
(b) the coordination of assistance from the Funds among themselves
and with the assistance granted by the EIB and the other existing
financial instruments;
(c) ass oon asthey are available, the res ultsof the evaluationsreferred
to in Article 42 — indicating any adjustments to the assistance —
and in Article 43, and an evaluation of the consistency of measurestaken by the Fundswith the Community policiesreferred 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 amountsin ques tion and the financial correctionsmade inrespect of Article 39(2);
(f) information on the opinionsof committeesdelivered in accordance
with Articles48 to 51.
Article 46
Informationandpublicity
1. For the purposes of consultation as referred to in Article 15(1),
Member States shall ensure that publicity is given to developmentplans.
2. Without prejudice to Article 23(1), the managing authority shall
be responsible for ensuring that publicity is given to the package and
particularly for informing:
(a) potential final beneficiaries, trade and professional bodies, the
economic and social partners, bodies promoting equality betweenmen and women and the relevant non-governmental organisations
about 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 accor-
dance with Article 37(2) inform it each year of the initiativestakenfor 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 Structuresand Rural Development;
(d) the Committee on Structuresfor Fis heriesand Aquaculture.
2. Where reference ismade to thisparagraph, Articles3 and 7 of
Decision 1999/468/EC shall apply.
3. Where reference ismade to thisparagraph, Articles4 and 7 of
Decision 1999/468/EC shall apply.1999R1260 — EN — 27.06.2003 — 002.001 — 45
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The period laid down in Article 4(3) of Decision 1999/468/EC shall be
set at one month.
3a. The committeess hall adopt their rulesof procedure.
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 providedfor in thisTitle. Thisincludesmattersprimarily dealt with by other
committees.
5. Each committee'sopinionss hall be brought to the attention of the
other committeesreferred to in thisTitle.
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
CommitteeontheDevelopmentandConversionofRegions
1. A Committee on the Development and Conversion of Regions,
made up of Member States' representatives and chaired by a Commis-sion 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 dealswith:
(a) the implementing rulesreferred to in Article 53(2).
Other committees shall be consulted under their consultative
competence on the abovementioned implementing rules, in so farasthey are concerned;
(b) the implementing rulesreferred to in Article 5 of Regulation (EC)
No 1261/1999 of the European Parliament and of the Council of
21 June 1999 on the European Regional Development Fund
(ERDF) (
1);
(c) the guidelinesrelating to the Community initiativesreferred to in
Article 20(1)(a) (‘Interreg’) and 20(1)(b) (‘Urban’);
(d) the guidelinesfor the different typesof innovative meas ures
provided for in application of Article 22, in the case of supportfrom the ERDF.
3. The committee actsasa cons ultative 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 infor-
mation contained in the single programming documents, under
Objectives1 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
CommitteepursuanttoArticle 147oftheTreaty
1. The committee set up pursuant to Article 147 of the Treaty shall
be composed of two government representatives, two representatives ofthe workers' organisations and two representatives of the employers'organisations from each Member State. The Member of the Commis-1999R1260 — EN — 27.06.2003 — 002.001 — 46
(1) See page 43 of thisOfficial Journal.▼B
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sion responsible for chairing the committee may delegate that responsi-
bility to a senior Commission official.
For each Member State, an alternate shall be appointed for each cate-
gory 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 membersand alternatess hall be appointed by the Council, acting
on a proposal from the Commission, for a period of three years. Theymay be reappointed. The Council shall, as regards the composition ofthe committee, endeavour to ensure fair representation of the differentgroupsconcerned. For the itemson 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 frame-worksunder Objective 3 aswell ason the Community s upportframeworks and corresponding information contained in the singleprogramming documents, under Objectives 1 and 2, in the case ofsupport from the ESF;
(b) deliver itsopinion on the implementing rulesprovided 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 of
the Council of 21 June 1999 on the European Social Fund
(ESF) (
1);
(d) deliver opinions on draft Commission guidelines relating to the
Community initiative referred to in Article 20(1)(d) (‘EQUAL’)and for the varioustypesof innovative meas ure in the context of
Article 22 in the case of support from the ESF. The Commission
may also refer further questions to it within the meaning ofArticles20 to 22;
(e) be consulted on the types of technical-assistance measure in accor-
dance with Article 23 in the case of support from the ESF.
3. For their adoption, the opinionsof the committee s hall require an
absolut majority of the votes validly cast. The Commission shall
inform the committee of the manner in which it hastaken account ofitsopinions .
Article 50
Committee onAgricultural StructuresandRuralDevelopment
1. A Committee on Agricultural Structuresand Rural Development,
made up of Member States' representatives and chaired by a Commis-sion representative, is hereby set up under the auspices of theCommission. The EIB shall appoint a non-voting representative.
2. The Committee actsasa Management Committee according to
the procedure laid down in Article 47(3) when it dealswith:
(a) the implementing rulesand trans itional rulesreferred to in
Articles34, 50 and 53 of Regulation (EC) No 1257/1999;
(b) the guidelinesrelating to the Community initiative referred to in
Article 20(1)(c) (‘Leader’).
3. The committee actsasa Cons ultative 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;1999R1260 — EN — 27.06.2003 — 002.001 — 47
(1) See page 48 of thisOfficial Journal.
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(b) the partsof the intervention concerning agricultural s tructuresand
rural development included in the draft Commission decisionsrelating to the Community support frameworks and corresponding
information contained in the single programming documents, for
the regionsunder Objectives1 and 2;
(c) the implementing rulesreferred 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 onStructuresforFisheries andAquaculture
1. A Committee on Structuresfor Fis heriesand 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 dealswith:
(a) the implementing rulesreferred to in Article 4 of Regulation (EC)
No 1263/1999;
(b) the guidelinesfor the different typesof innovative meas ures
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
following matters:
(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 Communitysupport frameworks and corresponding information contained inthe single programming documents under Objective 1;
(c) the implementing rulesprovided 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
FINALPROVISIONS
Article 52
Transitionalprovisions
1. ThisRegulation s hall not affect the continuation or modification,
including the total or partial cancellation, of assistance approved by theCouncil or by the Commission on the basis of Council Regulations(EEC) No 2052/88 and (EEC) No 4253/88 or any other legislationwhich applied to that assistance on 31 December 1999.
2. Applicationsfor a contribution from the Fundstowardsoperations
which are submitted pursuant to Regulations (EEC) No 2052/88 and(EEC) No 4253/88 shall be considered and approved by the Commis-sion on 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 this Regu-lation and having financial repercussions during the period covered bythose support frameworks and assistance. These measures shall not besubject to compliance with Article 30(2).1999R1260 — EN — 27.06.2003 — 002.001 — 48
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4. Notwithstanding the date specified in Article 30(2), expenditure
actually paid, in respect of which the Commission has received anapplication for assistance between 1 January and 30 April 2000 and
which fulfilsall the conditionslaid down in thisRegulation, may be
regarded aseligible for a contribution from the Fundsfrom 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 hasbeen received by 31 March 2001,
shall be automatically decommitted no later than 30 September 2001,
giving rise to the repayment of amounts unduly paid, without prejudiceto operations or programmes which have been suspended on account oflegal 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
by 31 March 2003, shall be automatically decommitted no later than30 September 2003, giving rise to the repayment of amounts undulypaid, without prejudice to operationsor programmeswhich 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
Articles30, 33, 38, 39 and 46, in accordance with Article 48(2)(a). It
shall also, in accordance with the same procedure and where it appears
necessary in unforeseen circumstances, adopt other rules for the imple-mentation of thisRegulation.
Article 54
Repeal
Regulations(EEC) No 2052/88 and (EEC) No 4253/88 are hereby
repealed with effect from 1 January 2000, without prejudice toArticle 52(1).
References to the repealed Regulations shall be construed as references
to thisRegulation.
Article 55
Reviewclause
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
Entryintoforce
ThisRegulation s hall enter into force on the third day following its
publication in the Official Journal of the European Communities .
Articles28, 31 and 32 s hall apply from 1 January 2000.
ThisRegulation s hall be binding in itsentirety and directly applicable
in all Member States.1999R1260 — EN — 27.06.2003 — 002.001 — 49
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ANNEX
STRUCTURALFUNDS
Annualbreakdownofcommitmentappropriationsfor2000to2006
(referred toinArticle7(1))
(EUR million — 1999 prices)
2000 2001 2002 2003 2004 2005 2006
29 430 28 840 28 250 27 670 27 080 27 080 26 6601999R1260 — EN — 27.06.2003 — 002.001 — 50