L 144/56 Official Journal of the European Union 30.4.2004 EN 
COMMISS ION DEC ISION 
of 27 April 2004 
conferring managem ent of aid on implem enting agencies for preaccession me asures in 
agriculture and rural devel opment in Hungary in the preaccession period 
(2004/385/EC) 
THE COMM ISSIO N OF THE EU ROPEAN  COMMU NITIES, 
Having regard to the Treaty establi shing the European Communi ty, 
Having regard to Council Regulation (EC) No 1266/1999 of 21 June 1999 on coordinating aid 
to the applicant countries in the framework of the preaccession strategy and amending 
Regulation (EEC ) No 3906/891, and in particul ar Article 12(2) thereof, 
Having regard to Council Regulation (EC) No 1268/1999 of 21 June 1999 on Communit y 
support for preaccession measures for agriculture and rural development in the applicant 
countries of central and eastern Europe in the preaccession period2, and in particular Article 
4(5) and  (6) ther eof, 
Whereas : 
(1) The Special Progr amme for Agricu lture and Rural Development for Hung ary 
(hereinafter  Sapard) was approved by Commission decision of 18 October 20003, as 
last amended by Commission decision of 25 February 2004, in accordance with 
Article 4(5) and (6) of Regulation (EC ) No 1268/1999. 
(2) The Government of Hungary and the Commission, acting on behalf of the European 
Communit y, signed on 1 March 2001 the Multiannual  Financin g Agreemen t laying  
down the technic al, legal and adminis trative frame work for the execution of Sapar d, as 
last amende d by the Annual Financin g Agreemen t for 2003 , signed on 28 July 2003 , 
which  finally en tered into f orce on 22 Decembe r 2003. 
(3) The Agricultu re and Rural Deve lopment Agency (hereinafter ARDA), public 
institut ion with legal status, under the subordination of the Ministry of Agriculture and 
Rural Development has been appointed by the competent authority of Hungary for the 
implement ation of some of the measure s define d in Sapard. The Nation al Fund withi n 
the Minist ry of Finance has been appoin ted for the financ ial functi ons it is due to 
perform in the framework of the im plementat ion of Sapard. 
1OJ L 16 1, 26 .6.19 99, p . 68.  
2OJ L 161,  26.6.1999, p. 87; Regulat ion as last amended by Regulat ion (EC)  No 696/2003 (OJ L 99, 
17.4.2003, p. 2 4). 
3C(2000)  273 8 final. 
30.4.20 04 Official Journal of the European Union L 144/57 EN 
(4) On the basis of a case-by-case analysis of the national and sectorial programme/project 
management capacity, financial control procedures and structures regarding public 
finance, as provided for in Article 12(2) of Regulation (EC) No 1266/1999, the 
Commission adopted Decision 2002/927/EC of 26 November 2002 conferring 
management of aid on implem enting agencies for preaccession measures in agriculture 
and rural development in Hungary in the preaccession period4 with regard to certain  
measu res provided f or in Sapard. 
(5) The Commi ssion has undertak en a further analysis under Articl e 12(2) of Regulat ion 
(EC) No 1266/199 9 in respect of measure 1305 ‘Renovat ion and develop ment of 
villages and the protect ion and conservat ion of rural herita ge’ and measure 1306 
‘Devel opme nt and diversification of econo mic activities providing for multiple 
activities and alternative income’ (herein after ‘measur es 1305 and 1306’ ) as provide d 
for in Sapard . The Commission  considers that, also with regard to those measures, 
Hungary complies with the provisions of Articles 4 to 6 and of the Annex to 
Commission Regulation (EC) No 2222/2000 of 7 June 2000 laying down financial 
rules for the applicati on of Council Regulation (EC) No 1268/1999 on Communit y 
support for preaccession measures for agriculture and rural development in the 
appli cant countri es of centra l and eastern  Europe in the preaccession period5, and with 
the mini mum condit ions set out in t he Annex to Regulation (EC) No 1266/1999.  
(6) It is therefore appropriate to waive the ex ante approval requirement referred to in 
Article 12(1) of Regulation (EC) No 1266/1999 and to confer with regard to measures 
1305 and 1306 on the ARDA and on the Ministry of Finance, National Fund, in 
Hungary the management of aid on a decent ralised basis. 
(7) Since the verificati ons carried out by the Commission for measures 1305 and 1306 are 
based on a system that is not yet fully operat ing with regard to all relevant elements, it 
is therefo re approp riate to confer  the management of Sapard on the ARDA and on the 
National Fund according to Article 3(2) of Regulation No 2222/2000, on a provisional 
basis. 
(8) Full conferral of management of Sapard is only envisaged after further verificati on to 
ensure that the system operates satisfactorily has been carried out and after any 
recomm endati ons the Comm ission may issue , with regard to the conferral of 
managem ent of a id on t he ARDA and on t he Nati onal F und have b een im plem ented . 
(9) On 2 April 2004, the Hungarian authoriti es proposed the rules for eligibil ity of 
expenditure in accordance with Article 4(1) of section B of the Multiannual  Financin g 
Agreement. The Co mmission is called upon to take a decision in this res pect, 
HAS DECID ED A S FO LLOW S:  
4OJ L 3 22, 2 7.11 .200 2, p.  51. 
5OJ L 253,  7.10.2000, p. 5; Regulati on as last amended by Regulati on (EC) No 188/2003 (OJ L 27, 
1.2.2003, p. 14 ). 
L 144/58 Official Journal of the European Union 30.4.2004 EN 
Artic le 1 
The require ment  of ex ante approval  by the Commission of project selection and contracting 
for measures 1305 and 1306 by Hung ary provided for in Article 12(1) of Regulation (EC) No 
1266/1999 is  hereby  waived. 
Article 2 
Management o f Sapard  is confer red on a provisional ba sis to: 
1. the ARDA  under the subordination of the Ministry of Agriculture and Rural Development 
of Hungary, Alkotmány út 29, District V, Budapest, for the implem entation of measures 1305 
and 1306 as defined in the Programme for Agriculture and Rural Development that was 
approved in accordance with Commission Decision C(2000) 2738 final of 18 October 2000, 
as last amended by the Com mission decision, a dopted on 25 February 2004; 
2. the National Fund within the Ministry of Finance in Hungary, József Nádor tér 2-4., 
District V, Budapest, for the financial functions it is due to perform in the framework of the 
implem entation of Sapard for mea sures 1305 and 1306 for Hung ary. 
Artic le 3 
Expenditure pursuant to this decision shall be eligible for Communit y co-financing only if 
incurre d by benefi ciaries from the date of this decisi on, or if later, the date of the instrum ent 
making them a beneficiary for the project in question, except for feasibilit y and related 
studies, where this date shall be 18 October 2000, provided in all cases it has not been paid by 
the ARDA prior to the date of thi s decision. 
Artic le 4 
Without prejudice to any decisions granting aid under Sapard to individual  beneficiaries, the 
rules for eligibility of expenditure proposed by Hungary  by letter of 2 April 2004 and 
registered  in th e Comm ission un der No AGR A 11682 of 6 April 2 004, shal l appl y. 
Done at Brussel s, 27 April  2004. 
For the Commission 
 F ranz FISCHLE R 
Member of t he Commission