1999R1268 — EN — 30.12.2001 — 001.001 — 1
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►B COUNCIL REGULATION (EC)No 1268/1999
of 21 June 1999
on Community support for pre-accession measures for agriculture and rural development in the
applicant countries of central and eastern Europe in the pre-accession period
(OJ L 161, 26.6.1999, p. 87)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 2500/2001 of 17 December 2001 L 342 1 27.12.2001
Corrected by:
►C1Corrigendum, OJ L 244, 16.9.1999, p. 64 (1268/1999)
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COUNCIL REGULATION (EC)No 1268/1999
of 21 June 1999
on Community support for pre-accession measures for agriculture
and rural development in the applicant countries of central and
eastern Europe in the pre-accession period
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular Article 308 thereof,
Having regard to the proposal from the Commission(
1),
Having regard to the opinion of the European Parliament(2),
Having regard to the opinion of the Economic and Social Committee(3),
Having regard to the opinion of the Committee of the Regions(4),
(1)Whereas the conclusions of the European Council of 12 and
13 December 1997 provide for an enhanced pre-accession
strategy for the applicant countries of central and eastern Europeand a specific pre-accession strategy for Cyprus;
(2)Whereas the conclusions of the European Council provide that theaid provided for in this Regulation be granted for the time beingto the 10 applicant countries of central and eastern Europe;
(3)Whereas the Community has decided to provide special assistance
in the form of pre-accession aid for the countries applying for
accession in order to carry out action to support the currenteconomic and social reform process in those countries and toprepare and facilitate the integration of their economies into theCommunity economy;
(4)Whereas assistance from the Community support for pre-
accession measures for agriculture and rural development in the
applicant countries of central and eastern Europe in the pre-accession period together with assistance from the Communityunder Council Regulation 1267/1999 of 21 June 1999 establishingan Instrument for Structural Policies for Pre-accession(
5) should
be coordinated within the framework of Council Regulation 1266/
1999 of 21 June 1999 on coordinating aid to the applicant
countries in the framework of the pre-accession strategy andamending Regulation (EEC) No 3906/89(
6) and be subject to the
conditional provisions of Council Regulation (EC) No 622/98 of16 March 1998 on assistance to the applicant countries in the
framework of the pre-accession strategy, and in particular on the
establishment of Accession Partnerships(
7);
(5)Whereas paragraph 17 of the conclusions of the LuxembourgEuropean Council of 12 and 13 December 1997 provides thatfinancial support to the countries involved in the enlargementprocess will be based, in the allocation of aid, on the principle of
equal treatment, independently of the time of accession, with
particular attention being paid to countries with the greatest need;
(6)Whereas the Community pre-accession aid has to be decided inparticular to resolve priority problems in adapting the economiesof the applicant countries in a sustainable manner and facilitatingthe implementation by them of the acquis communautaire ,
focusing in particular on the common agricultural policy (CAP);1999R1268 — EN — 30.12.2001 — 001.001 — 2
(1) OJ C 175, 9.6.1998, p. 7 and OJ C 27, 2.2.1999, p. 18.
(2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal).
(3) OJ C 101, 12.4.1999.
(4) OJ C 93, 6.4.1999.
(5) See page 73 of this Official Journal.
(6) See page 68 of this Official Journal.
(7) OJ L 85, 20.3.1998, p. 3.
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(7)Whereas pre-accession aid for agriculture should follow the
priorities of the reformed CAP; whereas such aid should be
applied to priority areas to be defined for each country, such asthe improvement of structures for processing agricultural andfishery products, distribution, quality control of food as well asveterinary and plant-health controls and the setting-up of producergroups; whereas it should also be possible to finance integrated
rural development projects to support local initiatives and agri-
environmental measures, to improve the efficiency of farms, toadapt infrastructure as well as measures which will acceleratestructural reconversion;
(8)Whereas, in the agricultural sector, the Community support willbe implemented in the form of multiannual programmes
established in accordance with the guidelines and the principles
of the operational programmes applied in the framework ofstructural policy in order to facilitate in the applicant countries theimplementation of the principles and procedures in force;
(9)Whereas, in accordance with Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the
Structural Funds(
1), assistance can only be granted for any
measure from one Community financial instrument within a givenperiod, subject in the case of the European Investment Bank (EIB)to its own rules on the provision of assistance;
(10)Whereas Community funds should not replace funding availablein each applicant country and whereas Community assistance
constitutes a financial contribution to the completion of projects;
(11)Whereas pre-accession aid in the agricultural sector has to be
granted in the form of a financial contribution and subject to thespecific financial rules established by Council Regulation (EC)No 1258/1999 of 17 May 1999 on the financing of the commonagricultural policy(
2);
(12)Whereas the allocation to applicant countries of resources fixedby the budget authority in the preamble of this instrument shouldtake full account of national prosperity on the basis of grossdomestic product, of the agricultural workforce, of utilisedagricultural area and, if necessary, of specific territorial
particularities;
(13)Whereas applicant countries should submit their plans as quickly
as possible in order to avoid delaying the implementation of thepre-accession measures from 1 January 2000;
(14)Whereas the drawing-up of those programmes, their implementa-tion and the follow-up mechanisms should comply with thespecific Structural Fund rules and thus facilitate the transfer of the
acquis communautaire ;
(15)Whereas a detailed ex-ante assessment should be carried out
before Community resources are commited in order to ensure thatthe programme complies with real needs, to permit flexibility inthe implementation of Community intervention to take account ofthe relevant information and the first results of the measures, and
to strengthen the monitoring and ex-postevaluation to ensure the
effectiveness of the anticipated impact;
(16)Whereas provision should be made for a monitoring committee toassist the Commission with the follow-up to each programme;
(17)Whereas the necessary decisions should be adopted in accordancewith the procedure laid down in Article 50(2) of Regulation (EC)
No 1260/1999 and for specific financial items in accordance with
the procedure laid down in Article 13 of Regulation (EC)No 1258/1999;1999R1268 — EN — 30.12.2001 — 001.001 — 3
(1) See page 1 of this Official Journal.
(2) OJ L 160, 26.6.1999, p. 103.
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(18)Whereas reports should be submitted to the Parliament, the
Council, the Economic and Social Committee and the Committee
of the Regions on progress achieved in the implementation ofagricultural pre-accession aid;
(19)Whereas, during the transitional period (1 January 1999 to31 December 2001) all reference to the euro should as a generalrule be considered as a reference to the euro as a monetary unit, in
accordance with the second sentence of Article 2, of Council
Regulation (EC) No 974/98 of 3 May 1998 on the introduction ofthe euro(
1);
(20)Whereas the implementation of these measures will help toachieve the Community's aims; whereas the Treaty does notprovide for the adoption of this Regulation powers other than
those laid down in Article 308,
HAS ADOPTED THIS REGULATION:
TITLE 1
OBJECTIVES AND TYPES OF MEASURES
Article 1
Objectives
1. This Regulation establishes the framework for Community support
for sustainable agriculture and sustainable rural development for the pre-accession period for the following applicant countries: Bulgaria, theCzech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania,Slovakia and Slovenia.
2. Community support shall comply with the conditions laid down in
the framework of accession partnerships and shall relate in particular to:
(a) contributing to the implementation of the acquis communautaire
concerning the common agricultural policy and related policies;
(b) solving priority and specific problems for the sustainable adaptation
of the agricultural sector and rural areas in the applicant countries.
Article 2
Measures
In accordance with the priorities defined by the applicant countries and
as defined in Article 4(3), support for agriculture and rural development
shall relate to one or more of the following measures, which shall be
consistent with the relevant acquis communautaire :
— investments in agricultural holdings,
— improving the processing and marketing of agricultural and fishery
products,
— improving the structures for quality, veterinary and plant-health
controls, for the quality of foodstuffs and for consumer protection,
— agricultural production methods designed to protect the environment
and maintain the countryside,
— development and diversification of economic activities, providing for
multiple activities and alternative income,
— setting up farm relief and farm management services,
— setting up producer groups,
— renovation and development of villages and the protection and
conservation of the rural heritage,
— land improvement and reparcelling,
— establishment and updating of land registers,
— improvement of vocational training,1999R1268 — EN — 30.12.2001 — 001.001 — 4
(1) OJ L 139, 11.5.1998, p. 1.
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— development and improvement of rural infrastructure,
— agricultural water resources management,— forestry, including afforestation of agricultural areas, investments in
forest holdings owned by private forest owners and processing andmarketing of forestry products,
— technical assistance for the measures covered by this Regulation,
including studies to assist with the preparation and monitoring of the
programme, information and publicity campaigns.
TITLE II
ASSISTANCE
Article 3
Complementarity and technical assistance
1. The Community action shall complement corresponding national
actions or contribute to these. It shall be established in close
collaboration between the Commission, the applicant country, thecompetent authorities and bodies and the economic and social partners atthe appropriate level. Such cooperation shall cover preparation,implementation including financing and appraisal, monitoring andevaluation of the measures.
2. In the framework of the technical assistance, the Commission shall
take initiatives and measures to ensure that the Community measuressupports the priority objectives referred to in Article 1 and bring addedvalue to national initiatives.
3. Natural and legal persons from Cyprus, Malta and Turkey may
participate in invitations to tender and contracts on the same terms thatapply to all natural and legal persons from the Member States and thebeneficiary countries.
Article 4
Programming
1. Measures for agriculture and sustainable rural development under
this Regulation shall be the subject of a plan to be drawn up at the mostappropriate geographical level. The plan shall be prepared by thecompetent authorities designated by the applicant country and shall besubmitted by those countries to the Commission after the competent
authorities and organisations at the appropriate level have been
consulted.
2. The plan shall cover a period of up to seven years from the year
2000 and subject to the application of Article 1(2), shall include:
— a quantified description of the current situation showing disparities,
shortcomings and potential for development, the main results ofprevious operations undertaken with Community assistance, thefinancial resources deployed and the evaluation results available,
— a description of the strategy proposed, its quantified objectives, the
priorities selected and the geographical scope,
— a prior appraisal showing the anticipated economic, environmental
and social impact, including effects on employment,
— an indicative overall financial table summarising the national, the
Community and, where appropriate, the private financial resources
provided for and corresponding to each rural development priorityadopted in the context of the plan, including, if necessary, measuresfinanced by the EIB and other international financial instruments,
— an indicative financial profile for each year covered by the
programming period for each source contributing to the programme,
— where appropriate, information on the need for any studies, training
or technical assistance operations relating to the preparation,implementation or adaptation of the measures concerned,1999R1268 — EN — 30.12.2001 — 001.001 — 5
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— the names of the competent authorities and bodies responsible for
carrying out the programme, including the paying agency,
— a definition of ‘final beneficiaries’, which may be organisations, or
public or private undertakings responsible for conducting the
operations. In cases where public aid is granted by other authorities
entrusted there with by the applicant countries, the final beneficiariesshall be the institutions deciding the granting of the public aid,
— a description of the measures contemplated for implementing the
plans, and in particular aid schemes, including the points necessaryfor assessing the rules of competition,
— provisions ensuring correct implementation of the programme,
including monitoring and evaluation and the definition of quantifiedindicators for evaluation and the arrangements for controls andpenalties,
— the results of consultations and provisions adopted for associating
competent authorities and bodies as well as appropriate economic,
social and environmental partners.
3. In their plans, applicant countries shall ensure that priority is given
to measures to improve market efficiency, quality and health standardsand measures to create new employment in rural areas, in compliancewith the provisions on the protection of the environment.
4. Unless otherwise agreed with the applicant country, the plan shall
be submitted not later than six months after the entry into force of this
Regulation.
5. On the basis of each applicant country's plan, a Programme for
Agriculture and Rural Development shall be approved by theCommission in accordance with the procedure laid down inArticle 50(2) of Regulation (EC) No 1260/1999 within six months ofsubmission of the plan, on condition that all the relevant information is
available. In particular the Commission shall appraise the proposed plan
to determine whether it is consistent with this Regulation.
6. The programme may, if necessary, be revised and amended as a
result:
— of socioeconomic development, relevant new information and the
results observed from the implementation of the actions concerned,
including the results of monitoring and evaluation, as well as theneed to adjust the amounts of aid available,
— in view of actions taken in the framework of the accession
partnership and the national programme for the adoption of theacquis communautaire ,
— of a reallocation of resources as laid down in Article 15.
Article 5
Ex-ante appraisal, monitoring and evaluation
1. In order to assess their effectiveness, support for measures
included in the programme shall be subject to prior and mid-termappraisal, on-going monitoring and ex-post evaluation designed to
appraise the success and impact with respect to the defined objectives.
2. The Commission and the applicant country shall monitor the
implementation of the programme. Such monitoring shall be carried outby way of jointly agreed procedures.
Monitoring shall be carried out by reference to specific physical
environmental and financial indicators agreed and established before-hand.
Applicant countries shall submit annual progress reports to the
Commission not later than the end of the first six months of thefollowing year, which shall contain at least the information referred to inArticle 37 of Regulation (EC) No 1260/1999.
3. A monitoring committee shall be established for each rural
development programme in compliance with Article 35 of Regulation(EC) No 1260/1999.1999R1268 — EN — 30.12.2001 — 001.001 — 6
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Article 6
Compatibility
Measures granted Community support shall comply with the commit-
ments adopted in the Accession Partnership and shall be consistent withthe principles of the national programme for the adoption of the acquis
communautaire .
Measures financed under this Regulation shall comply with the
provisions of the Europe Agreements, including the provisions
implementing those agreements with regard to State aids.
Measures financed under this Regulation shall comply with the
objectives of the CAP, in particular those relating to common marketorganisations, and of Community structural measures. They shall not
cause commercial disruption.
TITLE III
FINANCIAL PROVISIONS
Article 7
Resources
1. Community assistance under this Regulation shall be granted
during the period from 2000 to 2006. The annual appropriations shall beauthorised by the budgetary authority within the limits of the financialperspective.
2. The Community financial contribution for carrying out the rural
development programme shall be granted in the form of advances, part-financing and financing in accordance with the principles laid down inArticle 30 of Regulation (EC) No 1260/1999.
Payments of financial assistance may take the form of advances for
programme implementation and of payments against expenditure
incurred.
3. The financial allocation to each applicant country for pre-accession
aid under this instrument shall be based on the following objectivecriteria:
— farming population,
— agricultural area,— gross domestic product (GDP) per capita in purchasing power,— specific territorial situation.
4. For the period referred to in Article 4(2), up to 2 % of the annual
allocation of funds may be devoted to financing the measures taken on
the initiative of the Commission for preliminary studies, exchange visits,evaluations and controls.
Article 8
Rate of Community contribution
1. The Community contribution may amount to up to 75 % of the
total eligible public expenditure.
For measures referred to in the last indent of Article 2 and Article 7(4),
the Community contribution to financing may amount to up to 100 % ofthe total eligible cost.
2. For revenue generating investments, public aid may amount to up
to 50 % of the total eligible cost of which the Community contribution
may amount to up to 75 %. In any case the Community contributionshall comply with the ceilings on rates of aid and cumulation laid downfor State aid.
3. The financial support and the payments shall be expressed in euro.1999R1268 — EN — 30.12.2001 — 001.001 — 7
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Article 9
Financial control
1. The financial support shall comply with the principles laid down in
Regulation (EC) No 1258/1999.
The Commission shall implement expenditure under this Regulation in
accordance with the Financial Regulation applicable to the generalbudget of the European Communities on the basis of the financing
memorandum to be drawn up between the Commission and the applicant
country.
2. The Commission, in accordance with the procedure set out in
Article 12, shall adopt the methods for managing the programme, theprovisions for monitoring and checking its execution, the systems for
preventing and checking irregularities and the procedures for recovering
amounts unduly paid. These measures shall be adopted as a prerequisiteto the approval of the programme as referred to in Article 4(5).
3. Without prejudice to checks carried out by beneficiary countries,
the Commission and the Court of Auditors may, through their own
agents or duly authorised representatives, carry out on-the-spot technical
or financial audits, including sample checks and final audits.
Article 10
Reduction, suspension and cancellation of aid
1. If the implementation of a measure does not appear to justify any
part of the finance allocated to it, the Commission shall carry out an
appropriate examination of the case, in particular by requesting the
applicant country or the authorities designated by it to implement themeasure to make their comments within a specified period.
2. Following that examination, the Commission may reduce or
suspend the aid for the measure concerned if the examination confirms
the existence of an irregularity or of an important modification which
affects the nature or the conditions of implementation of the measureand for which Commission approval was not obtained.
3. Any amount recovered by way of overpayment shall be transferred
to the Commission. The amounts not transferred shall be subject to
interest on arrears in accordance with the provisions of the Financial
Regulation.
Article 11
The Commission shall allocate the available resources to the applicant
countries for the implementation of Article 7(2). Within three months ofthe adoption of this Regulation, the Commission shall communicate its
decisions to each applicant country on the indicative financial allocation
for seven years.
TITLE IV
IMPLEMENTING RULES
Article 12
1. The Commission shall adopt detailed rules for the implementation
of this Regulation in accordance with the procedure laid down inArticle 50(2) of Regulation (EC) No 1260/1999.
2. The Commission shall adopt the detailed financial rules in
accordance with the procedure laid down in Article 13 of Regulation(EC) No 1258/1999. They shall relate, in particular, to appropriateprovisions to ensure compliance with budgetary discipline.1999R1268 — EN — 30.12.2001 — 001.001 — 8
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TITLE V
OTHER PROVISIONS
Article 13
Reports
The Commission shall present an annual report on the Community
support granted under this Regulation to the European Parliament, to theCouncil, the Economic and Social Committee and to the Committee ofthe Regions.
In such reports the Commission shall outline in particular the progress
made towards achieving the objectives set out in Article 1.
TITLE VI
FINAL PROVISIONS
Article 14
Information and publicity
1. The programmes set out in Article 4(5) shall be the subject of
appropriate publicity in the applicant countries.
2. The publicity shall entail in particular:
— informing potential beneficiaries and professional organisations of
the assistance available,
— informing the general public of the Community's role in relation to
the aid.
The proposals contemplated and the measures adopted to that end shall
be communicated to the Commission.
Article 15
On accession to the European Union, a country shall lose its entitlement
to support under this Regulation. Resources made available as a result of
an applicant country acceding to the European Union shall bereallocated to other applicant countries listed in Article 1(1). Realloca-tion shall be based on applicant countries' need and capacity forabsorbing assistance and on the criteria laid down in Article 7(3).
The Council, acting by qualified majority on a proposal from the
Commission, shall take a decision outlining the general approach for
reallocation.
In the light of the decision referred to in the second paragraph by the
Council, the Commission shall decide on the reallocation of availableresources among the other beneficiaries in accordance with theprocedure laid down in Article 12(1).
Article 16
Entry into force
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
It shall apply from 1 January 2000.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1999R1268 — EN — 30.12.2001 — 001.001 — 9