EN    EN  
 EUROPEAN  
COMMISSION 
Brussels, 11.6.2015  
COM(2015) 288 final 
  
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 
Third Report on the implementation of the national strategy plans and the Community 
strategic guidelines for rural development (2007-2013) 
{SWD(2015) 114 final}  
 
2 FOREWORD  
 
The present report is the third report from the Commission to the European Parliament, the Council, the 
European Economic and Social Co mmittee and the Committee of the Regions on the implementation of the 
National Strategy Plans (NSP)1 and the Community 2007-2013 strategic guidelines for rural development2.  
This Commission report3 is based on the analysis and review of the summary reports submitted by the Member 
States (MS) in 20144 as well as on other available information, notably the financial and physical common 
monitoring indicators, and on the activities of the European Network for Rural Development. 
It provides a summary of the main developments, current trends and challe nges undertaken for the 
implementation of the NSP and the Community Strategic Guidelines.  
It is important to note that the data used in this report is aggregated from the beginning of the programming 
period in 2007 until the end of 2013. Although 2013 correspon ds to the end of the programming period, this is 
not the end of its implementation, which extends until the 31st of December 20155. Significant numbers of 
operations will still be undertaken until that point, and a final overview of the programmes' achievements will 
not be available before the end of 2016.  
                                                            
1 See Title II, Chapter II of Council Regulation (EC) No 1698/200 5 of 20 September 2005 on support for rural development by the 
European Agricultural Fund fo r Rural Development (EAFRD). 
2 Council decision of 20 February 2006 on  Community strategic guidelines for rural development (programming period 2007-
2013) (2006/144/EC). 
3 See Article 14 "Commission report" of Council Regulation (EC) No 1698/2005 of 20 September 2005. 
4 See Article 13 of Council Regulation (EC) No 1698/2005 of 20 September 2005. These summary reports set out the progress 
made in implementing the NSP and objectiv es, and the contribution to the achievemen t of the Community strategic guidelines. 
5  Under the so-called N+2 rule the Member States can incur expenditure for the 2007-2013 prog rammes until the end of 2015. 
 
3  
 
CONTENTS  
1. Context and overview .............................................................................................................................4  
1.1 The Community's priorities for rural development for the period 2007-2013 ........................................4  
1.2 Overview of the budget and operational targets ......................................................................................5  
2. Implementation of the Community's priorities ........................................................................................6  
2.1 Overview of main results ........................................................................................................................6  
2.2. Implementation by axis and measures .....................................................................................................8  
3. Outlook ............................................................................................................................... ...................12  
 
 
4 1. C ONTEXT AND OVERVIEW  
1.1 The Community's priorities for rura l development for the period 2007-2013 
On February 2006 the Council of the European Union adopted Strategic Guidelines for rural 
development for the period 2007-20132, providing three core thematic priorities: 
• Improving the competitiveness of the agricultural and forestry sector . The European 
Agricultural Fund for Rural Development (EAFRD6) should contribute to a strong and 
dynamic European agrifood sector by focusing on the priorities of knowledge transfer, modernisation, innovation and quality in the food chain, and on priority sectors for investment 
in physical and human capital. Th e measures grouped in 'Axis 1' shall contribute mostly to the 
competitiveness objective of the Rural Development Programmes (RDPs); 
• Improving the environment and the countryside . To protect and enhance the EU’s natural 
resources and landscapes in rura l areas, the resources devoted to this priority should contribute 
to three EU-level priority areas: biodiversity and the preservation and development of high 
nature value farming and forestry systems an d traditional agricultural landscapes; water and 
climate change. The measures grouped in 'Axis 2'  of the RDPs shall contribute mostly to the 
environment objective; 
• Improving the quality of life in rural areas and encouraging diversification of the rural 
economy . The resources devoted to these objectives should contribute to the overarching 
priority of the creation of employment opport unities and conditions for growth. Interventions 
should in particular be used to promote capacity building, skills acquisition and organisation 
for local strategy development and also help to  ensure that rural areas  remain attractive for 
future generations. In promoting training, information and entrepreneurship, the particular 
needs of women, young people and older workers should be considered. The measures grouped 
in Axis 3 of the RDPs shall contribute to the wider rural development objectives together with 
Axis 4. 
Beyond the thematic priorities, the adopted Strategic Guidelines for rural development also highlight 
the need for: 
• Building local capacity for employment and diversification  while contributing to the thematic 
priorities. This horizontal axis, also called "L eader Axis" (Axis 4) should play an important 
role in improving governance and mobilising the endogenous development potential of rural 
areas, through Local Development Strategies; 
• Ensuring consistency in programming.  Synergies between and within the axes should be 
maximised. Where appropriate,  other EU-level strategies should be taken into account.
 Means 
to improve governance and policy delivery should be mobilised. In particular, European and 
national networks for rural development should be  set up as a platform for exchange of best 
practice and expertise on all aspects of policy design, management and implementation 
between stakeholders; 
• Complementarity between Community instruments.  In order to foster synergy between 
structural, employment and rural development policies, MS should ensure complementarity 
and coherence between actions to be financed by different EU funds. 
The Strategic Guidelines provide th e framework on the basis of whic h MS prepared their NSP, which 
translate the EU priorities into na tional priorities, and serve as a re ference for the RDPs. These RDPs 
implement the priorities through sets of selected measures grouped by axis (see table 17 with the list of 
measures per axis). The programmes, either national or regional, were approved by the Commission in 
2007 and 2008. Their implementation is monitored and evaluated on the basis of the Common 
Monitoring and Evaluation Framework (CMEF). 
 
                                                            
6 Council Regulation (EC) No 1698/2005 of 20 September 2005 on  support for rural development by the European Agricultural 
Fund for Rural Development (EAFRD). 
7 All the tables are presented in the Commission Staff Working Paper. 
 
5 1.2 Overview of the budget  and operational targets 
The overall EAFRD budget for the whole programming period 2007-2013 amounts to EUR 96.2 
billion. To ensure a balanced strategy, the EAFRD has set minimum spending levels for each thematic 
axis to be applied in each RDP (10%, 25% and 10% respectively for axis 1, 2 and 3). For the Axis 4 
(Leader) a minimum of 5% (2.5% fo r the EU-12) of the EU funding for each programme is reserved. 
The total available budget is higher as EAFRD resources are complemented by national public 
funding 8. 
 
 
Figure 1. Relative importance of  axes within the total EAFRD contribution for the 2007-2013 
programming period – EU-27. 
 Once the programming was made at MS level, the financial breakdown between the different axes, as 
well as the definition of the main targets for 2013, resulted in the following, as per the above Figure 1: 
– Axis 1 'improvement of the competitiveness of the agricultural and forestry sector'  accounts for 
33% of the total EAFRD. This axis is expected, by the end of the programming period, to 
contribute to 575 000 investment projects for the modernisation of agricultural holdings and to support 34 000 enterprises for adding value to agricultural and forestry products; 
– Axis 2 'improving the environment and the countryside'  is predominant with 45% of the total 
EAFRD. The planned result is to have 47 million hectares (ha) of agricultural land under agri-environment management, 55 million ha of agricultural land in less favoured and mountainous 
areas compensated for their handicaps and 1.3 mi llion ha of agricultural land supported to meet 
NATURA 2000 requirements; 
– Axis 3 'quality of life in rural areas and diversification of the rural economy'  has a lesser share 
with 14% of the total EAFRD. By 2013, it is expected to contribute to develop or create 73 350 
businesses in rural areas and to support 29 000 village renewal projects; 
– Axis 4 ' LEADER ' is 6% of total EAFRD funding. The largest share of support for 
implementing local development strategies is planned to contribute to diversification and 
quality of life (Axis 3 type projects). 
The Health Check (HC) and the European Economic Recovery Plan (EERP) resulted in additional 
budget amounts of EUR 4.9 billion allocated to six "challenges". The majority of the funds are 
concentrated in the areas of bio-diversity (31% i.e. EUR 1.5 billion) and water management (27%, 
EUR 1.3 billion). Dairy restructuring represents 15% of the additional budget (EUR 0.7 billion), 
climate change measures account for 14% (EUR 0.7 billion) and renewable en ergy for 6% (EUR 0.3 
billion). Member States have also decided to invest 35% of the European Economic Recovery 
Package funds in broadband infrastructure, i.e. EUR 0.3 billion of the available EUR 1 billion.  
                                                            
8 All financial data in the report relate  to EAFRD unless explicitly expressed. 

 
6 2. I MPLEMENTATION OF THE COMMUNITY 'S PRIORITIES  
2.1 Overview of main results 
The total EAFRD expenditure realized by the EU27 MS by the end of 2013 amounted to EUR 71 
billion9, representing 74% of the overall 2007-2013 budget of EUR 96.2 billion (the period under 
consideration represents 7 ye ars out of the whole implementation period of 9 years10). The annual 
expenditure is globally on track after an initial sl ow start during the first years of the programming 
period 2007-2013.  
The picture is far from homogeneous among the MS (Figure 2) as two MS had spending levels over 
90%, while eight MS had spent less than 70%. 
  
0%20%40%60%80%100%
IE
ATLU
FI
LV
BE
SE
SK
EE
DE
SI
UK
CZ
FR
PT
LT
EU-27
NL
PL
CY
HUDK
ES
MT
IT
BG
ROGR
 
Figure 2. Overall EAFRD budget expenditure by the end of 2013 compared to the overall 2007-2013 
allocation. 
 Axis 1 implementation (68%) is broadly in line with the spending target for 2007-2013, by reason of a 
significant number of investment projects approved to be concluded.  
Axis 2 has the highest execution ratio (86%) with an even balance between Member States values. 
This high execution ratio can be explained by the differences in delivery mechanisms between the 
investment measures of Axis 1 and 3 and the most significant Axis 2 measures. 
Axis 3 shows a notable increase co mparing to the end of 2011 (60% to be compared to 31% reached 
by the end of 2011) when a significant delay in the implementation of the measures was reported
11. 
However there is variability among Me mber States and some of them are still delayed in meeting their 
targets. 
Axis 4 has an implementation rate of 46%, a value he avily influenced by delays in the implementation 
of local strategies and LAG in different Member St ates. There is a significan t non-uniformity between 
the Member States in the implementation of the Leader. 
                                                            
9 Payments to MS related to 2007, 2008, 2009, 2010, 2011, 2012 and 2013 calendar year. They cannot be compared to the 
Financial Reports of the Commission to the European Parliament and the Council on the implementation of EAFRD which are based o n 
financial year.  
10 2007-2013 EAFRD payments can be made 2 years after th e last commitments (2013), thus until the end of 2015. 
11 Second Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee 
and the Committee of the Regions on the impl ementation of the national strategy plans and the Community strategic guidelines fo r rural 
development (2007-2013). 
 
7 
01020304050
A x i s  1A x i s  2A x i s  3A x i s  4billion EUREAFRD expenditure 2007-2013
EAFRD  allocation 2007-2013
 
Figure 3. EAFRD budget expenditu re by the end of 2013 compared to the overall 2007-2013 
allocation by Axis. 
 
Focusing specifically on the implementation rate  of the Health Check (HC) and the European 
Economic Recovery Plan (EERP), EUR 3.3 billion were spent by the end of 2013 out of the overall 
EUR 4.95 billion programmed (74%), confirming a positive trend, report ed in 2012, after an expected 
modest start in 2010. As for the uptake by challenges, climate change, biodiversity and dairy sector 
challenges have the highest uptakes with respectively 100%, 94% and 85% whereas broadband, water 
management and renewable energy, with respectively 31%, 28% and 21%, are lagging behind. The higher uptake of the biodiversity and climate change challenges is ex plained by the fact that these 
challenges have been predominantly tackled through Axis 2 measures. 
 
 - 250 500 750 1,000 1,250 1,500
Climate
changeRenewable
energiesWater
managementBiodiversity Dairy sector Broadband
infrastructuremillion EUR
New challenges
HC & EERP expenditure 2010-2013
HC & EERP allocation 2010-2013
 
Figure 4. Overall HC and EERP budget expenditure (EAFRD) by the end of 2013 compared to the 
overall 2007-2013 allocation by "new challenges" (data from CMEF 2013). 
Synergies between and within the axes and overall consistency have been taken into consideration 
during the programming process (reliance of the RDP on strengths and weaknesses analysis of the 
situation, ex-ante evaluation of the RDP…). These have been pursued throughout the whole 
 
8 programming period via, notably, the Monitoring (Monitoring Committees…), the Evaluations and 
the activities of the National Rural Networks (NRNs) and the European Network for Rural 
Development (ENRD) (joint analyses or exchan ge of information and practices between RDP 
managers and stakeholders…). 
During the first years of the implementing period , mechanisms ensuring complementarity between 
EAFRD and EU Structural Funds were settled. They take the form of demarcation lines and/or co-
ordination mechanisms such as inter-ministerial body. 
 
2.2. Implementation by  axis and measures 
 
Axis 1 - Improving the competitiveness of  the agricultural and forestry sector 
The total EAFRD Axis 1 expenditure registered for the 2007-2013 period amounts to 68% of its 2007-
2013 overall allocation (EU27 average).  
The main results for this objective, at the end of 2013, are: 
• 2 430 000 participants who succes sfully completed a training re lated to agriculture and/or 
forestry (88% of the 2013 estimated target for the period); 
• 136 000 holdings introducing new products and/or new techniques (54% of the target); 
• 80 EUR billions of total volume of investments (80% of the target12) made for the main Axis 1 
investment measures for an EAFRD contribution of EUR 17 billion (EUR 28 billion of total 
public expenditure (EAFRD + MS counterpart)). 
 
051015
1 2 11 2 31 2 51 1 21 1 31 1 11 4 1 O t h e r s
Ax1billion EUR
Measures
EAFRD expenditure 2007-2013
EAFRD  allocation 2007-2013
 
Figure 5. EAFRD budget expenditu re by the end of 2013 compared to the overall 2007-2013 
allocation, within Axis 1 by measure.  
 
Measure 121 (Modernisation of agricultural holdings) is the biggest Axis 1 measure in terms of 
EAFRD budget allocation (EUR 11.6 billion). The payment uptake of this measure is 75% of its total budget with 379 000 modernisation projects already completed (66% of the target). The total volume 
of investment realized exceeds EUR 39 billion and is  expected to reach EUR 49 billion by the end of 
the programming period 2007-2013. Its positive uptake demonstrates the high interest of farmers for 
investments as confirmed by the increase of  the budget along the programming period.  
                                                            
12 Total investment includes private and public  expenditure for the following investment measures (112; 121; 122; 123; 125; 126).  
 
9 Measures 123 (Adding value to agricultural and forestry products) has an uptake of 58% with 22 885 
holdings supported, out of the 34 029 target. Tota l volume of investment amounts to EUR 17.4 billion 
(71% of the target).  
Measure 125 (Infrastructure related to the developm ent and adaptation of agriculture and forestry) has 
a financial execution rate of 55% by the end of 2013. The EUR 2.6 billion EAFRD expenditure made 
so far has led to a total investment of EUR 7.2 billion (public + private). The number of operation 
supported is more than 43 500 (99% of the target) with an average investment of some EUR 160 000, a value lower than expected and in line with the lower expenditure uptake (55%).  
Measure 112 (Setting up of young farmers) present an uptake level of 77%, the EAFRD expenditure is 
more than EUR 2.1 billion and the number of young farmers supported is nearly 145 000. 
 
Axis 2 - Improving the envi ronment and the countryside 
The total EAFRD Axis 2 expenditure for the period 2007-2013 represents 86% of its overall 
allocation.  
The main results achieved for this objective at the end of 2013 are notably: 
• 46.9 million hectares under land management contributing to enhancing the environment 
(biodiversity, water quality, soil and addressing climate change) which represent 27% of the 
total EU Utilized Agri cultural Areas (UAA)
13. It includes 7.6 milli on hectares to support 
organic farming; 
• 1.5 million hectares to support specific land management in NATURA 2000 areas or through 
the Water Framework Directive; 
• 340 000 hectares supported for afforestation in both agricultural and non agricultural areas. 
 
0510152025
214 212 211 221 226 215 227 Others
Ax2billion EUR
Measures
EAFRD expenditure 2007-2013
EAFRD  allocation 2007-2013
Figure 6. EAFRD budget expenditu re by the end of 2013 compared to the overall 2007-2013 
allocation, within Axis 2 by measure.  
 
The three biggest measures in terms of budget allo cation are also those with the highest uptake among 
Axis 2 measures: 211 (Natural handicap payments to farmers in mountain areas, with an uptake of 
100%), 212 (Payments to farmers in areas with handicaps other than mountain areas, with an uptake 
of 91%) and 214 (Agri-environment payments, with an uptake of 87%).  
For Measure 214, EAFRD expenditure is more th an EUR 20 billion. Agri-environmental payments 
involved over 1.5 million of holdings for a total area supported of 46.9 million hectares. There is no 
                                                            
13 UAA from 2010 FSS (Eurostat,  update from November 2014). 
 
10 uniformity in the implementation of the different operations among the European RDPs, however 
overall execution rates confirm the leadership of agri-environmental payments within the 
environmental measures. Measure 214 plays a leading role also in th e achievement of the CAP Health 
Check objectives on biodiver sity and climate change. 
Measures 211 and 212 together support over 55 million hectares in less favoured and mountainous 
areas to compensate for their natural handicaps. Their financial uptake level is close to 100%. 
Measure 221 (First afforestation of agricultural land) plays also a role in Axis 2 budget, notably in 
continuing the commitments from the previous programming periods. In a majority of RDPs, its 
overall budget was decreased since the beginning of the programming period. However the measure 
shows an uptake level of 77% and involves more than 271 000 hectares of afforested land. Measure 226 (Restoring forestry potential and introducing prevention actions) and Measure 227 (Non 
productive investments) are the other most relevant measures supporting the forest sector in terms of 
budget allocation. Both measures together support ed over EUR 3 billion of investment in European 
forests. 
 
Axis 3 - Improving the quality of life in rural areas and encouraging diversification of the rural economy 
The total EAFRD Axis 3 expenditure for the period 2007-2013 represents 60% of its overall 
allocation.  
The main results achieved for this objective at the end of 2013 are: 
• Axis 3 contributed to creating jobs (75,000) in a context of growing unemployment in rural 
areas
14; 
• 21 EUR billion of total volume of investments (private and public) made with an EAFRD 
contribution of EUR 7 billion (EUR 10 billi on of total public (EAFRD + MS public 
contribution))15. 
• 135 000 operations to support development of non agricultural activities in the rural areas, 
including business creation and new turism activities16. 
 
024
321 322 312 311 313 323 Others Ax3billion EUR
Measures
EAFRD expenditure 2007-2013
EAFRD  allocation 2007-2013
 
Figure 7. EAFRD budget expenditu re by the end of 2013 compared to the overall 2007-2013 
allocation, within Axis 3 by measure. 
                                                            
14 Unemployment globally increased from 7.1% in 2007 to 10.3% in 2013 in the thinly populated rural areas and from 7% in 2007 
to 10.2% in 2013 in intermediate areas (source: Eurostat). 
15 Considering following investment measures (311, 313, 321, 322, and 323). 
16 Considering measures 311, 312 and 313. 
 
 
11 The biggest measure of Axis 3 in terms of total allocations is 321 (Basic services for the economy and 
rural population) with a financial uptake of 60% and more than 50 000 projects completed. Its total 
volume of investment realized by the end of  2013 is around EUR 5.3 billion for an EAFRD 
contribution of EUR 2.3 billion.  
However, in terms of execution, the most advanced measure of Axis 3 is 322 (Village renewal and 
development), with an uptake level of 73% co rresponding to EUR 6.8 billion of total volume of 
investment to support renewal activities (for a EAFR D contribution of EUR 2.5 billion) across almost 
40 000 villages. 
On the contrary, measure 312 (Business creation and development) execution rate remains quite low 
(45%) even if the number of micro-enterprises suppo rted (over 61 000) is quite close to the target 
(84%). 
Finally, measure 311 (Diversification into non-agri cultural activities) implementation level is in line 
with Axis 3 (62%). The total volume of investment is more than EUR 4.2 billion for a number of 
beneficiaries of 35 000. 
 
Axis 4 - Building local capacity for employment and diversification 
The total EAFRD Axis 4 expenditure for the period 2007-2013 represents 46% of its overall 
allocation. 
The main result achieved for this objective at the end of 2013 is: 
• Nearly 139 000 projects financed by 2 402 LAGs. 
 
02.55
413 431 Others Ax4billion EUR
Measures
EAFRD expenditure 2007-2013
EAFRD  allocation 2007-2013
 
Figure 8. EAFRD budget expenditu re by the end of 2013 compared to the overall 2007-2013 
allocation, within Axis 4 by measure17. 
 
At the end of 2013, the total number of LAGs was 2 40218. This number has doubled in comparison 
with Leader+ and half of the territories are impl ementing the Leader approach for the first time.  
Due to the fact that the LAG selection process was completed relatively late, many of the selected 
LAGs have started with delays to implement projects linked to their local development strategy. This explains the relatively low EAFRD axis 4 financ ial uptake which represen ts 46% of the overall 
allocation for this axis but a substantial increase in the latest quarterly expenditure has been taking 
place. 
                                                            
17   413 corresponds to Axis 3 type LEADER operations and 431 to running and animat ion of Local Action Groups 
18 According ENRD survey (June 2014). 
 
12 Specific difficulties have been pointed out by some MS. The mainstreaming of Leader has notably 
modified the approach implying significant administrative adaptations (administrative reorganization, 
training of staff).  
  
3. O
UTLOOK  
The overall financial uptake is globally on track, despite some unfavourable conditions such as the 
economic situation. The execution rate reached by th e end of 2013 and the ov erall achievement of the 
output indicators confirm that the main difficulties of implementation reported in the previous reports 
have been largely overcome. 
However, lower uptake persists in some Member Stat es particularly in relation to Axis 3 and Axis 4 
implementation. For these two axes, available data  underline variability among MS particularly in 
LEADER execution. Its overall good implementation clearly demonstrates the workability of 
LEADER, but the low levels of execution reported in some RDPs point out a disparity among the 
rural areas of the Union. In this context a significant role can be provided by networking through the European Network for Rural Development. 
For the individual programmes, many corrective modifications have been made based on the 
difficulties encountered in the first years of implementation, taking into account the recommendations from the mid-term evaluations and incorporating additional funds addressing new challenges (Health 
Check) and the economic crisis (European Econom y Recovery Package). Most of the changes 
observed were budget shift between measures, adaptation of the targeted beneficiaries and/or the eligibility criteria. The main reasons for the budg et changes observed were modifications of the 
strategic priorities, low absorption rates as well as reactions to overcome unfo reseen problems due to 
wider policy, economic or legislative contexts.  
The monitoring system on rural development policy provides a picture of the main outputs and results 
for the CAP second pillar. More specifically, in Axis 1, around 2.4 million of farmers were 
successfully trained and more than EUR 80 billion of total investment were mobilized in 637 
thousands of projects. In axis 2, measures targeting environmental issues were implemented on 47 
million hectares. In axis 3 more than 50 000 projects of basic services for the economy and rural 
population are completed and 62 000 micro-enterprises were supported or created. Finally, 140 000 LEADER projects (Axis 4) have been supported so far.  
This picture will be completed by the ex post evaluation which will assess the overall impacts of the 
Rural Development Policy. Managing Authorities will submit to the Commission the RDP ex post 
evaluations for each individual RDP by the end of 2016 and this exercise will be followed by 
synthesis at EU level.