EN    EN EN 
 
EN    EN  EUROPEAN COMMISSION 
Brussels, 23.9.2010 
SEC(2010) 1091 final 
  
COMMISSION STAFF WORKING DOCUMENT 
accompanying the 
 
REPORT FROM THE COMMISSION TO  THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 
3rd FINANCIAL REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIA MENT AND THE COUNCIL 
 on the 
 EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD)  
 
2009 FINANCIAL YEAR 
COM(2010) 497 final 
 
EN 2   EN TABLE OF CONTENTS 
1. Budget procedure ......................................................................................................... 4 
1.1. Financial framework .................................................................................................... 4 1.2. Preliminary Draft Budget (PDB) 2009 ........................................................................ 5 1.3. Draft Budget (DB) 2009............................................................................................... 5 1.4. Amending Letter (AL) 2009 ........................................................................................ 5 1.5. Council second reading................................................................................................ 5 1.6. The adoption of the 2009 Budget................................................................................. 5 2. Management of appropriations .................................................................................... 6 2.1. Management of Commitment appropriations .............................................................. 6 2.1.1. EAFRD operational programmes................................................................................. 6 2.1.2. Technical assistance.................................................................................................... .6  
2.2. Management of payment appropriations...................................................................... 6 2.2.1. EAFRD operational programmes................................................................................. 6 2.2.2. Technical assistance.................................................................................................... .7  
3. The implementation of the 2009 EAFRD budget ........................................................ 7 3.1. Introduction.............................................................................................................. .... 7 
3.2. Modification of EAFRD programmes ......................................................................... 7 3.3. Implementation of commitment appropriations........................................................... 8 3.3.1. EAFRD operational programmes................................................................................. 8 3.3.2. Technical assistance.................................................................................................... .9  
3.4. Implementation of payment appropriations ................................................................. 9 3.4.1. EAFRD operational programmes................................................................................. 9 3.4.2. Technical assistance................................................................................................... 1 3 
3.5. Analysis of expenditure decl ared by axis and by measure ........................................ 13 
3.6. Implementation rate of EAFRD programmes............................................................ 15 4. Control measures........................................................................................................ 17 4.1. Introduction.............................................................................................................. .. 17 
4.2. Integrated Administration and Control System (IACS)............................................. 18 5. Clearance of accounts ................................................................................................ 19 
 
EN 3   EN 5.1. Conformity clearance - Introduction.......................................................................... 19 
5.2. Conformity clearance – audits and decisions adopted in 2009.................................. 20 
 Audits .......................................................................................................................... 20 
 Conformity decisions .................................................................................................. 20 
5.3. Financial clearance..................................................................................................... 20  
5.3.1. Introduction............................................................................................................ .... 20 
5.3.2. Decisions............................................................................................................... ..... 21 
5.3.2.1. Financial clearance for fi nancial years 2006 and 2007.............................................. 21 
5.3.2.2. Financial clearance decision for the financial year 2008........................................... 21 5.4. Appeals brought before the Court of Justice against clearance decisions ................. 21 
 Judgments handed down ............................................................................................ 21 
 Appeals pending ......................................................................................................... 21 
6. Relations with Parliament and th e European Court of Auditors................................ 22 
7. Basic rules governing the EAFRD and amendments made in 2009 .......................... 22 
7.1. General ................................................................................................................... .... 22 
 Basic legislation ......................................................................................................... 22 
 Recent modifications .................................................................................................. 22 
7.2. Declarations.............................................................................................................. .. 23 
7.3. Checks.................................................................................................................... .... 23 
7.4. Clearance of accounts ................................................................................................ 24 
 
EN 4   EN 1. B UDGET PROCEDURE  
1.1. Financial framework  
CAP expenditure is funded within the curre nt financial framework as agreed in 
Inter-institutional Agreement between th e European Parliament and the Council 
in May 2006, amended to take into account the Galileo-programme in 2007, the reprogramming of rural development in 2008 and the European Economic 
Recovery Package (EERP) in 2009. CAP ex penditure is part of Heading 2: 
Preservation and management of natura l resources. A specific sub-ceiling has 
been decided for market related expenditure  and direct aids within this heading. 
To take account of the transfer of  amounts to rural development due to 
compulsory modulation (including the in crease from the CAP Health Check) 
increase, to the reform of the cotton, tobacco and wine sectors as well as to the voluntary modulation decided for the UK,  the expenditure ceiling for market 
measures and direct aids had to be reduced accordingly. 
The CAP amounts included in heading 2 of the financial framework (2007-2013) 
are: 
   (In EUR million current prices) 
HEADING 2.  Preservation and 
Management of Natural 
resources 2007 2008 2009 2010 2011 2012 2013 
                      
 TOTAL a), b)     55 143 59 193 57 639 60 113 60 338 60 810 61 289 
                      
  of which :               
  - Rural development a), c), d) 10 902 13 303 14 002 14 364 14 436 14 617 14 817 
  - Market related expenditure 
and direct aids, c)  44 753 44 592 44 887 44 276 44 467 44 710 44 939 
                      
 
a) After reprogramming of rural development (1 469 Mio €). 
b) After transfer of EUR 1 600 million to Galileo in 2007 and of EUR 2 000  million to the European Economic 
Recovery Package in 2009. 
c) After transfer into Rural Development of the lower expected expenditure resulting from the reforms of the 
tobacco, cotton and wine CMOs and from the compulsory and voluntary modulation (UK), art 136 of regulation 
73/2009 and reduction due to financin g of the EERP (D 273/2010 EU).  
d) Including the reinforcement of Rural Development by EUR 1 020 million included in the European Economic 
Recovery Package, of which EUR 600 million is fi nanced in 2009 within he ading 2 while, for 2010, 
EUR 420 million has been allocated to Rural Developm ent on the basis of Commission Decision N° 636/2006. 
 
EN 5   EN 1.2. Preliminary Draft Budget (PDB) 2009 
The 2009 Preliminary Draft Budget (PDB ) was adopted by the Commission and 
proposed to the Budgetary Authorit y on 6 May 2008. The proposal for the 
European Agricultural Fund for Rural Development (EAFRD) under  heading 2 of the Financial Framework 2007-2013 totalled EUR 13 395 millions in commitment appropriations a nd 9 842 in payment appropriations. 
Budget Item Commitment 
appropriations 
(in €) Payment 
appropriations 
(in €) 
05.040501 (Rural dev. programmes)  13 373 504 584 9 832 000 000
05.040502 (Technical assistance) 21 913 625 9 900 000
1.3. Draft Budget (DB) 2009 
The Council adopted the 2009 Draft Budget in July 2008. The payments 
appropriations for EAFRD programmes were reduced by EUR 115.0 million as 
compared to the PDB. 
1.4. Amending Letter (AL) 2009 
In October 2008 the Commission adopted Amending Letter No 2 to the 2009 
PDB. Even though the Amending Letter ex ercise mainly concerns the EAGF, 
the  appropriations  fo r EAFRD programmes were increased to reflect an 
additional transfer from the first pillar  of EUR 0.16 million relating to the wine 
reform. The increase concerned both commitment and payment appropriations. 
1.5. Council second reading 
The Council second reading, adopted on 12.11.2008, did not involve any 
modification of the EAFRD appropriati ons proposed in the Amending Letter. 
1.6. The adoption of the 2009 Budget 
The European Parliament adopted th e 2009 budget in its plenary session of 
December 2008, by increasing the amount s for EAFRD programmes proposed 
in the second reading of the Council by EUR 249.8 million for commitment 
appropriation and decreasing the amounts by EUR 696.8 million for payment 
appropriation. 
Budget Item Commitment 
appropriations 
(in €) Payment 
appropriations 
(in €) 
05.040501 (Rural dev. programmes)  13 623 504 584 9 135 331 205
05.040502 (Technical assistance) 21 913 625 9 900 000
 
 
EN 6   EN 2. M ANAGEMENT OF APPROPRIATIONS  
2.1. Management of Commitment appropriations 
2.1.1. EAFRD operational programmes 
In 2009 the commitment appropriations of the initial budget amounted to EUR 
13.62 billion. This amount was increased  (Amending Budget No 4) by EUR 0.6 
billion corresponding to the first part of  the Recovery Package whilst it was 
reduced (Amending Budget No 10) by EU R 0.25 billion in appropriations 
entered through and amendment by the Budge t Authority and that could not be 
implemented due to insufficient legal basis. Hence, the total amount finally available for the budget year 2009 was EUR 13.97 billion. 
The total amount committed for EAFRD programmes in 2009 was EUR 13.72 
billion. An amount of EUR 252 million was carried over to 2010. 
Management of commitment appropriations in  2009 
- EAFRD Budget Item 
05.040501         
(amounts in €)  
Appropriations at the beginning of 2009 13 623 504 584
Amending Budget No 4 – A dditional allocation under 
the European Economic Recovery Program 600 000 000
Amending Budget No 10 – Cancellation of non-
executable appropriations  -249 840 000
Appropriations available in 2009 13 973 664 584
Appropriations used in 2009 13 721 634 827
Unused amounts at the end of 2009 – Carry over to 2010 252 029 757
2.1.2. Technical assistance 
Article 69, 2nd paragraph of the Council regul ation 1698/2005 stipulates that 
0.25% of the resources for Community s upport to rural development shall be 
devoted to technical assistance for the Commission. In the 2009 budget, the 
amount available for this purpose was EUR 21.9 million. At the end of 2009, the total amount committed was EUR 5.1 million.  
2.2. Management of payment appropriations 
2.2.1. EAFRD operational programmes 
In 2009 the initial payment appropriati ons amounted to EUR 9.91 billion, of 
which EUR 9.1 billion corresponded to  the voted budget and EUR 775 million 
to appropriations carri ed forward from 2008.  In December the Amending 
Budget No 10 reduced the amount by EUR 1.6 5 billion to take  account of the 
revised payment forecast submitted by the Member States in September. 
Consequently, the payment appropria tions available for the budget year 2009 
amounted to EUR 8.26 billion.  
 
EN 7   EN The total amount paid to Member States for EAFRD programmes in 2009 
reached EUR 8.21 billion. 
Management of payment appropriations in  2009 – 
EAFRD Budget Item 
05.040501            
(amounts in €)  
Appropriations at the beginning of 2009 9 135 331 205
Appropriations carried over from 2008 774 864 326
Amending Budget No 10 – Reduction of payment 
appropriations following revised forecasts from MS -1 650 000 000
Appropriations available in 2009 8 260 195 531
Appropriations used in 2009 8 209 373 256
Unused amounts at the end of 2009  50 822 275
2.2.2. Technical assistance 
In the 2009 budget, the amount for payment appropriations was EUR 9.9 
million. At the end of the year, the to tal amount of payments was EUR 3.7 
million. 
3. T HE IMPLEMENTATION OF THE 2009  EAFRD  BUDGET  
3.1. Introduction 
Financial year 2009 mostly represented a transition between the initial phase of 
approval and initiation of rural development programmes (including payment of advances) and a phase where most programmes attain their cruising speed. However, this transition slowed down to  some extent because of the economic 
crisis which had an effect on the Member States ability to provide the national co-financing but also might have caused beneficiaries to hesitate to enter into 
any commitments, the late approval of certain programmes as well as a lack of sufficient previous experience of some Member States in the implementation of 
Rural Development programmes. 
Another important element that characte rizes the financial year 2009 is the 
reprogramming process subsequent to the approval of the Health Check and the 
European Economic Recovery Package. 
3.2. Modification of EAFRD programmes 
In 2009, a total of 132 modifications of rural development programmes (RDPs) 
for the 2007-2013 programming period were  made: 76 by notification procedure 
and 56 by Commission Decision after a positive opinion of the Rural Development Committee (RDC). Of thes e 56 modifications, 49 were approved 
in the context of the Health Check and the European Economic Recovery 
Package. The number of programmes to modi fy (88 in total) and the complexity 
of the preparatory work and negotiations  did not permit the approval of all HC 
and EERP modifications in 2009. The Comm ission Decisions regarding the 39 
 
EN 8   EN programmes outstanding were adopted  early in 2010, which explains the 
carry-over of EUR 252 million in comm itment appropriations from 2009 to 
2010. 
3.3. Implementation of co mmitment appropriations 
3.3.1. EAFRD operational programmes 
The table below shows the amounts committed per Member State in 2009 and 
the allocation establis hed by Commission decision 636/2006 (modification of 
October 2009 still in force at the end of the year). 
In 2009, the commitment appropriations  available for EAFRD programmes 
amounted to EUR 13.97 billion and the amount committed to EUR 13.72 billion. The remaining EUR 252 million correspond to programmes for which 
the modifications in relation to the H ealth Check and the Recovery Package 
were not approved before the year end. These appropriations were carried-over 
to 2010 and committed entirely within the deadline of 31 March 2010. Hence, no amount was lost for rural development programmes. 
MSCommission Decision 636 / 
2006  –  EU funds in 2009Amounts committed in the 
budget year 2009Amounts carried over for 
commitment in 2010
(a) (b) (c = a -b)
AT 580,732,057 580,732,057 0
BE 62,458,083 61,348,083 1,110,000
BG 456,843,751 437,343,751 19,500,000
CY 23,949,762 23,949,762 0
CZ 409,036,387 388,036,387 21,000,000
DE 1,202,865,574 1,188,636,470 14,229,104
DK 67,411,254 67,411,254 0
EE 101,036,594 101,036,594 0ES 1,320,830,901 1,270,959,694 49,871,207
FI 308,265,407 308,138,561 126,846
FR 947,341,939 947,176,739 165,200
GR 482,113,090 453,393,090 28,720,000
HU 527,075,432 498,635,432 28,440,000
IE 346,851,422 329,171,422 17,680,000
IT 1,183,870,921 1,145,274,921 38,596,000
LT 249,948,998 249,948,998 0
LU 13,255,487 13,255,487 0
LV 150,342,483 150,342,483 0
MT 11,256,597 11,256,597 0
NL 73,671,337 73,671,337 0
PL 1,971,439,817 1,971,439,817 0
PT 584,180,154 584,180,154 0
RO 1,502,691,530 1,502,691,530 0
SE 270,816,031 256,996,031 13,820,000
SI 136,508,049 136,508,049 0
SK 282,749,256 268,049,256 14,700,000
UK 706,122,271 702,050,871 4,071,400
Total 13,973,664,584 13,721,634,827 252,029,757Commission Decision 636 / 2006 (last version in force end of 2009) vs. the amounts committed 
end of 2009 (in €):
 
 
EN 9   EN 3.3.2. Technical assistance 
The table below shows the commitment a ppropriations for technical assistance 
consumed in 2009. The most important part  is related to European Network for 
Rural Development. 
Budget line Comment / description
05.040502 200 000Seminar on the implementation of 
DR programs organized in Brussels
05.040502 4 208 909Contact point of the European 
network for RD (2nd year); semi-subsistence seminar organized in 
Sibiu (RO)
Subtotal management by DG 
AGRI4 408 909
05.040502 428 290European Network for RD (Leader+ 
subcommittee, coordination committee, thematic working groups) etc. 
05.040502 200 000Expert committee on the evaluation 
of RD programmes 
05.040502 101 250Magazine for European Network for 
RD 
Subtotal management by PMO 
and OPOCE729 540
Total 5 138 449Amounts committed in 
budget year 2009 (in €)
 
3.4. Implementation of payment appropriations 
3.4.1. EAFRD operational programmes 
In the 2009 budget the amount for paymen t appropriations, including the carry-
over from 2008, was EUR 9.91 billion. Amending Budget No 10 reduced this 
amount in December by EUR 1.65 billion so that the appropriations of the year 
finally amounted to EUR 8.26 billion. 
At the end of 2009, the total amount paid for EAFRD programmes was EUR 
8.21 billion. The difference between the a ppropriations of th e year (EUR 8.26 
billion) and the total am ount paid is EUR 51.2 million, which represents an 
under-execution of 0.6%. 
The table below shows the breakdown of  this amount by declaration period: 
 
EN 10   EN (in million €)
Reimbursement of payment claims Q2 2008 12.3
Reimbursement of payment claims Q3 2008 126.6Reimbursement of payment claims Q4 2008 2 546.8Reimbursement of payment claims Q1 2009 1 490.4Reimbursement of payment claims Q2 2009 1 612.0Reimbursement of payment claims Q3 2009 2 421.2
Total 2009 8 209.4
 
The reimbursement of 3rd quarter 2009 for 6 EAFRD programmes was totally or 
partiality on hold at the end of the year because the commitment appropriations 
for these programmes were fully exhauste d by the payment of previous claims. 
The table below shows the 6 EAFRD programmes and the corresponding amounts. The payment had to wait until the new commitment appropriations for 2010 were made available.  
Programme FEADER - N° CCI Q3 2009 (in €)
Vlaanderen (2007BE06RPO001) 6,425,513.33
Nordrhein-Westfalen (2007DE06RPO015) 2,100,736.79
Aragon (2007ES06RPO002) 2,506,309.72
Ireland National (2007IE06RPO001) 107,643,642.54
Bayern (2007DE06RPO004) 8,534,106.68Åland (Finland) 2007FI06RPO002 98,742.99
Total 127,309,052.05
 
The monthly consumption of payment ap propriations during the year (January 
to December 2009) is represented in the graph below. The rhythm of 
consumption is linked to the calendar for sending the four payment declarations (31 January, 30 April, 31 July and 10 November for the payment claims corresponding respectively to Q4  2008, Q1 2009, Q2 2009 and Q3 2009). 
EAFRD - Montly consumption of payment appropriations during 2009 (in million €)
1391870
676
1661096
229994
47510061415
6182
0500100015002000
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09Amounts paid (in million euro) 
 
The breakdown per Member State and per declaration pe riod of the amounts 
paid by the Commission in the budget year 2009 is shown in the following table. 
The declaration periods concerned are from16 October to 31 December 2008 
(Q4 2008), from 1 January 2009 to 31 March 2009 (Q1 2009), from 1 April 
 
EN 11   EN 2009 to 30 June 2009 (Q2 2009) and from 1 July 2009 to 15 October 2009 (Q3 
2009).  
In the table below, the amounts from columns Q2 2008 and Q3 2008 relate to 
the EAFRD programmes that exhausted their commitme nt appropriations for 
2007 and 2008 and had to wait until 2009 to  have their amounts reimbursed with 
new 2009 appropriations. 
Payments effectively made in the budget year 2009 (in €)
MS Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Total
AT 427,949,468.51 37,906,840.60 43,897,590.17 40,598,431.18 550,352,330.46
BE 2,634,830.50 10,376,897.04 7,212,858.83 20,897,215.45 16,787,346.17 57,909,147.99
BG 24,190,671.12 39,168,066.16 37,693,842.23 26,000,411.44 127,052,990.95
CY 5,307,184.60 3,793,620.57 3,497,159.91 3,563,803.38 16,161,768.46
CZ 110,128,510.90 110,974,831.07 82,178,640.52 36,893,946.50 340,175,928.99
DE 10,345,809.87 374,933,155.25 103,131,605.84 85,070,469.75 356,705,369.28 930,186,409.99
DK 12,150,036.33 20,697,171.26 9,535,500.93 11,478,786.58 53,861,495.10
EE 23,940,802.93 41,941,283.76 13,754,824.08 15,484,239.63 95,121,150.40
ES 12,299,213.27 18,438,179.63 156,895,320.71 99,545,639.20 156,002,080.45 175,412,539.46 618,592,972.72
FI 13,131,174.24 6,206,336.97 8,153,331.43 163,635,234.21 191,126,076.85
FR 258,731,262.94 107,383,212.58 90,156,048.85 323,536,247.95 779,806,772.32
GR 20,238,236.94 29,988,515.32 71,138,490.87 52,767,205.17 174,132,448.30
HU 156,246,669.69 96,671,967.12 155,032,080.49 89,233,671.16 497,184,388.46
IE 95,219,252.45 75,404,378.64 55,761,624.35 50,432,026.42 52,354,140.14 329,171,422.00
IT 79,913,810.69 35,813,253.22 73,086,720.11 167,878,512.18 356,692,296.20
LT 34,134,107.24 48,651,779.76 87,349,750.54 77,358,004.23 247,493,641.77
LU 2,861,814.18 4,649,597.17 2,085,587.64 3,313,511.57 12,910,510.56
LV 20,445,383.75 28,086,479.38 42,060,538.99 13,870,990.90 104,463,393.02
MT 3,357,533.82 3,357,533.82
NL 5,533,019.26 15,647,058.76 5,793,324.73 9,098,570.81 36,071,973.56
PL 215,398,260.57 351,623,965.99 255,735,375.64 221,068,079.69 1,043,825,681.89
PT 96,528,233.12 12,286,838.03 858,574.75 125,890,304.17 235,563,950.07
RO 109,676,461.84 61,535,621.24 144,008,337.72 250,707,458.23 565,927,879.03
SE 55,808,494.29 21,367,421.73 12,240,963.73 16,451,526.90 105,868,406.65
SI 27,883,610.46 19,190,587.19 38,596,260.58 15,062,003.97 100,732,462.20
SK 116,095,838.58 32,555,030.65 66,181,492.98 74,453,967.21 289,286,329.42
UK 112,884,460.14 98,592,173.12 56,593,186.87 78,274,074.46 346,343,894.59
Total 12,299,213.27 126,638,072.45 2,546,787,263.96 1,490,383,379.87 1,612,029,415.83 2,421,235,910.39 8,209,373,255.77
The amount paid in 2009, EUR 8.21 billion, relate to reimbursements only as all 
prefinancing foreseen was paid in 2007 and 2008. 
The table in the next page compares , for each Member State, the EAFRD 
payments made in 2009 to the payments in 2008. While interim payments in 2009 increased by 35.4% compared to 2008  (EUR 8.21 billion vs. 6.06 billion), 
the total amount decreased by -3.9% (EUR  8.21 billion vs. 8.54 billion) as the 
last part of pre-financin g was already paid in 2008. 
 
EN 12   EN Payments made to Member States - Comparison 2008-2009  (in €)
MS Interim payments Prefinancing Total Interim payments Prefinancing Total ( in €) ( in %)
AT 462,608,745.20 462,608,745.20 550,352,330.46 550,352,330.46 87,743,585.26 19.0%
BE 48,530,648.29 12,866,719.12 61,397,367.41 57,909,147.99 57,909,147.99 -3,488,219.42 -5.7%
BG 58,185,829.70 182,636,901.72 240,822,731.42 127,052,990.95 127,052,990.95 -113,769,740.47 -47.2%
CY 10,456,613.17 10,456,613.17 16,161,768.46 16,161,768.46 5,705,155.29 54.6%
CZ 212,624,547.33 212,624,547.33 340,175,928.99 340,175,928.99 127,551,381.66 60.0%
DE 669,504,888.17 131,421,515.15 800,926,403.32 930,186,409.99 930,186,409.99 129,260,006.67 16.1%
DK 77,174,319.94 31,126,255.72 108,300,575.66 53,861,495.10 53,861,495.10 -54,439,080.56 -50.3%
EE 23,926,805.54 25,013,059.92 48,939,865.46 95,121,150.40 95,121,150.40 46,181,284.94 94.4%
ES 476,135,002.53 501,043,604.54 977,178,607.07 618,592,972.72 618,592,972.72 -358,585,634.35 -36.7%
FI 219,979,453.44 29,631,449.29 249,610,902.73 191,126,076.85 191,126,076.85 -58,484,825.88 -23.4%
FR 780,526,000.66 91,330,692.29 871,856,692.95 779,806,772.32 779,806,772.32 -92,049,920.63 -10.6%
GR 223,673,306.91 129,755,654.84 353,428,961.75 174,132,448.30 174,132,448.30 -179,296,513.45 -50.7%
HU 148,885,197.46 148,885,197.46 497,184,388.46 497,184,388.46 348,299,191.00 233.9%
IE 273,117,209.35 81,897,010.65 355,014,220.00 329,171,422.00 329,171,422.00 -25,842,798.00 -7.3%
IT 375,009,858.38 304,567,250.20 679,577,108.58 356,692,296.20 356,692,296.20 -322,884,812.38 -47.5%
LT 60,813,560.24 60,813,560.24 247,493,641.77 247,493,641.77 186,680,081.53 307.0%
LU 8,934,674.20 2,961,487.62 11,896,161.82 12,910,510.56 12,910,510.56 1,014,348.74 8.5%
LV 50,651,800.03 72,877,945.28 123,529,745.31 104,463,393.02 104,463,393.02 -19,066,352.29 -15.4%
MT 5,364,334.84 5,364,334.84 3,357,533.82 3,357,533.82 -2,006,801.02 -37.4%
NL 23,141,066.23 23,141,066.23 36,071,973.56 36,071,973.56 12,930,907.33 55.9%
PL 846,530,426.94 846,530,426.94 1,043,825,681.89 1,043,825,681.89 197,295,254.95 23.3%
PT 254,613,654.63 144,063,955.11 398,677,609.74 235,563,950.07 235,563,950.07 -163,113,659.67 -40.9%
RO 561,575,332.14 561,575,332.14 565,927,879.03 565,927,879.03 4,352,546.89 0.8%
SE 174,434,794.46 15,181,392.86 189,616,187.32 105,868,406.65 105,868,406.65 -83,747,780.67 -44.2%
SI 85,257,958.43 85,257,958.43 100,732,462.20 100,732,462.20 15,474,503.77 18.2%
SK 97,790,092.73 68,929,632.73 166,719,725.46 289,286,329.42 289,286,329.42 122,566,603.96 73.5%
UK 400,627,305.52 83,462,720.48 484,090,026.00 346,343,894.59 346,343,894.59 -137,746,131.41 -28.5%
Total 6,063,133,759.48 2,475,706,914.50 8,538,840,673.98 8,209,373,255.77 0.00 8,209,373,255.77 -329,467,418.21 -3.9%2008 2009 Difference 2009 vs. 2008
 
 
EN 13   EN 3.4.2. Technical assistance 
In the 2009 budget the amount for payment appropriations is € 9.9 million. The 
table hereafter presents the payments fo r technical assistance with a total amount 
of € 3.7 million. The most important part is related to European Network for 
Rural Development. 
Budget lines Comment / description
05.040502-C1-AGRI AGRI-G3 3 441 139European Network for Rural 
Development contact point, Leader+ seminar in Portugal, Leader+ 
magazines and best practices, etc. 
Subtotal management by DG AGRI3 441 138
05.040502-C1-AGRI/EMPL 176 392IT maintenance and development 
(SFC 2007)
05.040502-C1-AGRI/PMO 116 278European Network for Rural 
Development – reimbursement of 
charges for participating experts
Subtotal management by DG 
EMPL et PMO292 670
Total3 733 809Amounts paid in budget year 
2009 (in €)
 
3.5. Analysis of expenditure declared by axis and by measure 
The table below shows the payment claims declared by Member state and by 
axis/measure for rural development in  2009 (Q4 2008 to Q3 2009), from 2007 to 
2009 (Q4 2006 to Q3 2009) and also the financial plans of EAFRD programmes 
(2007-2013; EU27). 
In year 2009, the expenditure continues to  be concentrated in axis 2 (57.8%), 
followed by axis 1 with 32%, axis 3 w ith 4.4% and axis 4 with 1.1%. This 
repartition of expenditure still significantl y diverges with the repartition in the 
financial plans for the 2007-2013 pr ogramming period (33.6%, 44.4%, 13.3% 
and 5.9% for respectively axis 1 to 4). 
Axis 2 measures mainly involve annua l payments (e.g. agro-environmental 
measures) whilst Axis 1 and 3 mainly relate to multiannual measures that 
require longer proceedings for thei r approval and implementation (e.g. 
investment projects). 
Compared with the average for the first 3 years (2007-2009), in the year 2009 
the expenditure is more balanced between the axis and the level of each axis tends to be closer compared to the levels  of the axis in the financial plans. For 
instance, Axis 2 decreases from 75.0%  in 2008 to 57.8% in 2009 while Axis 1 
increases form 21.3% in 2008 to 32.0% in 2009. 
 
EN 14   EN EAFRD payment claims, b y axis and b y measure – year 2009 (Q4 2008 to Q3 2009 ),
EAFRD Pa yment claims, b y axis and b y measure - 2007 to 2009 (Q4 2006 to Q3 2009 ) and,
EAFRD financial plans in force (at 17 March 2010; includin g HC & RP; year 2007 to year 2013 )
Axis / Measure EAFRD2009 (Q4 2008 to Q3 
2009, in €)2009 (Q4 2008 to Q3 
2009, in %)2007 to 2009 (Q4 2006 
to Q3 2009, in €)2007 to 2009 (Q4 
2006 to Q3 2009, in 
%)Financial plans 2007-
2013 (in €) *Financial plans 2007-
2013 (in %) *
111 Vocational training and info rmation actions 39,485,635.1                  0.5% 77,586,899.1                 0.5% 1,085,976,060.0             1.1%
112 Setting up of young farmers 264,366,482.5                3.2% 492,257,964.4               2.9% 2,893,743,758.0             3.0%
113 Early retirement 317,043,487.5                3.9% 688,392,789.8               4.1% 2,854,573,418.0             3.0%
114 Use of advisory services 5,155,491.4                    0.1% 8,713,361.3                   0.1% 534,516,203.0                0.6%
115 Setting up of management, relief and advisory .. 702,632.61                     0.0% 1,509,979.37                 0.0% 102,271,298.0                0.1%
121 Modernisation of agricultural holdings 1,262,721,280.2             15.4% 1,809,687,532.5            10.8% 10,619,144,021.0           11.0%
122 Improvement of  the economic value of forests 20,423,294.6                  0.2% 47,624,163.6                 0.3% 648,923,205.0                0.7%
123 Adding value to agricultural and forestry .. 289,834,725.9                3.5% 430,726,372.1               2.6% 5,656,327,873.0             5.9%
124 Cooperation for development of new products 4,832,912.0                    0.1% 5,557,508.8                   0.0% 349,603,378.0                0.4%
125 Infrastructure related to the development … 220,118,596.1                2.7% 347,562,878.3               2.1% 5,105,283,661.0             5.3%
126 Restoring agricultural production potential 31,995,899.1                  0.4% 55,868,555.7                 0.3% 402,531,731.0                0.4%
131 Meeting standards based on Community .. 9,995,318.6                    0.1% 42,043,963.8                 0.3% 101,759,328.0                0.1%
132 Participation of  farmers in food quality … 5,223,301.9                    0.1% 7,046,405.5                   0.0% 298,624,104.0                0.3%
133 Information and promot ion activities 3,922,769.5                    0.0% 4,956,742.8                   0.0% 207,671,669.0                0.2%
141 Semi-subsistence farming 123,576,845.2                1.5% 260,100,123.3               1.5% 994,955,894.0                1.0%
142 Producer groups 25,766,437.9                  0.3% 33,096,650.9                 0.2% 327,899,573.0                0.3%
143 Direct Payment (BG + RO) 624,803.6                       0.0% 624,803.6                      0.0% 131,773,438.0                0.1%
144 Holdings undergoing restructuring due to a reform of a CMO -                                  0.0% -                                 0.0% 15,903,594.0                  0.0%
Axe 1 2,625,789,913.6             32.0% 4,313,356,694.7            25.7% 32,331,482,206.0           33.6%
211 Natural handicap payments to farmers in mountain… 899,008,563.2                11.0% 2,160,134,402.6            12.9% 6,218,167,879.0             6.5%
212 Payments to farmers in areas with handicaps, other . 907,935,875.8                11.1% 2,242,591,187.5            13.4% 7,236,375,252.0             7.5%
213 Natura 2000 payments and payments linked .. 20,494,456.5                  0.2% 32,684,124.2                 0.2% 487,654,824.0                0.5%
214 Agri-environment payments 2,547,549,479.5             31.1% 6,062,907,817.8            36.1% 22,224,144,629.0           23.1%
215 Animal welfare payments 30,159,911.1                  0.4% 80,721,824.0                 0.5% 540,790,341.0                0.6%
216 Non-productive investments 15,236,510.8                  0.2% 20,144,766.8                 0.1% 588,202,389.0                0.6%
221 First afforestation of agricultural land 182,078,744.1                2.2% 456,665,272.4               2.7% 2,300,268,371.0             2.4%
222 First establishment of agroforestry systems on ... -                                  0.0% -                                 0.0% 16,117,104.0                  0.0%
223 First afforestation of non-agricultural land 11,547,811.2                  0.1% 18,337,533.5                 0.1% 354,672,609.0                0.4%
224 Natura 2000 payments 3,037,675.5                    0.0% 3,214,475.7                   0.0% 101,989,396.0                0.1%
225 Forest-environment payments 2,883,836.4                    0.0% 8,129,772.8                   0.0% 267,929,870.0                0.3%
226 Restoring forestry potential and … 90,310,052.8                  1.1% 191,198,573.0               1.1% 1,606,222,818.0             1.7%
227 Non-productive investments 30,460,131.7                  0.4% 64,089,359.8                 0.4% 811,188,979.0                0.8%
Axe 2 4,740,703,048.5             57.8% 11,340,819,110.3          67.6% 42,753,724,461.0           44.4%
311 Diversification into non-agricultural activities 44,332,453.8                  0.5% 65,142,225.9                 0.4% 1,495,305,179.0             1.6%
312 Business creation and development 36,443,851.7                  0.4% 42,624,639.5                 0.3% 2,215,288,801.0             2.3%
313 Encouragement of tourism activities 29,523,291.0                  0.4% 48,967,924.7                 0.3% 1,296,872,839.0             1.3%
321 Basic services for the economy and rural … 68,080,913.0                  0.8% 100,520,579.4               0.6% 3,181,670,749.0             3.3%
322 Village renewal and development 110,164,321.2                1.3% 157,302,587.0               0.9% 3,009,100,433.0             3.1%
323 Conservation and upgrading of the rural heritage 59,328,212.0                  0.7% 90,150,345.6                 0.5% 1,347,143,457.0             1.4%
331 Training and information 5,239,242.9                    0.1% 7,286,202.7                   0.0% 146,171,526.0                0.2%
341 Skills acquisition, animation and implementation of ... 11,281,176.6                  0.1% 17,796,792.2                 0.1% 149,985,663.0                0.2%
Axe 3 364,393,462.3                4.4% 529,791,296.9               3.2% 12,841,538,647.0           13.3%
411 Implementing local development strategies. Compet.. 8,813,604.9                    0.1% 9,539,364.5                   0.1% 449,103,916.0                0.5%
412 Implementing local development strategies. Envir.. 749,828.7                       0.0% 778,622.3                      0.0% 166,935,719.0                0.2%
413 Implementing local development strategies. Quality .. 51,756,757.3                  0.6% 57,003,658.0                 0.3% 3,883,169,004.0             4.0%
421 Implementing cooperat ion projects 420,154.4                       0.0% 643,455.4                      0.0% 278,656,455.0                0.3%
431 Running the local action group,  acquiring skills and ... 25,760,154.2                  0.3% 28,208,895.3                 0.2% 941,057,710.0                1.0%
Axe 4 87,500,499.6                  1.1% 96,173,995.4                 0.6% 5,718,922,804.0             5.9%
511 Technical Assistance 91,352,175.9                  1.1% 163,339,575.5               1.0% 1,952,924,872.0             2.0%
611 BG RO Direct Pyaments 294,536,277.5                3.6% 339,455,102.4               2.0% 645,581,697.0                0.7%
Grand total 8,204,275,377.3               100.0% 16,782,935,775.0            100.0% 96,244,174,687.0             100.0%
 * Financial plans including Health Check (HC) and Recovery Package (RP) amounts (at 17 March 2010)  
 
EN 15   EN 3.6. Implementation rate  of EAFRD programmes 
The graph on the next page presents the financial implementation rate of rural 
development programmes (from the be ginning to 2009, including Q4 2009) 
compared with the 2007-2009 appropria tions. The average EAFRD financial 
implementation rate for all EAFRD programmes is 68.4%. 
The graph shows that most Member States have absorbed more than 50% of the 
2007-2009 appropriations. 
Furthermore, 3 Member states have a le vel of declared expenditure which is 
higher than the 2007-2009 commitments and the difference had to be paid with 
fresh commitments from 2010. 
 
EN 16   EN F inancial implementation rate of RD programmes (%  of the EAFRD 2007 – 2009 appropriations paid or to be paid, including payment  claims Q4 2009 to be paid 
in 2010) by Member state *
48%53% 53%58% 58%60%62%69% 70%76%79%84% 85%89%94%97% 98%101%108%118%
22%45%
37%64% 65% 65%66%
0%50%100%
MT
BGRO
IT
PT
PLLV
CY
NL
EE
ES
LT
GR
HU
UK
CZ
SI
SK
DE
SE
FI
DK
FR
BE
AT
LU
IE% of EAFRD contribution 2007 - 200 9
 
 
EN 17   EN 4. C ONTROL MEASURES  
4.1. Introduction 
The EU legislation provides for a comp rehensive system of management and 
controls which relies on four levels: 
(a) compulsory administrative structure at  the level of Member States, centred 
around the establishment of paying agencies and an accreditation authority at high level which is competent for is suing and withdrawing the agency’s 
accreditation. The decision for issuing the accreditation is based on a detailed 
review by an external audit body; 
(b) detailed systems for controls and dissu asive sanctions to be applied by those 
paying agencies, with common basic features and specia l rules tailored to the 
specificities of each aid regime; 
(c) ex-post controls by independent audit bodies on the paying agencies' annual 
accounts and the functioning of their in ternal control procedures (under 
Regulation (EC) No 885/2006
1) and by special departments on aid measures 
other than direct payments covered by the IACS (checks based on Regulation 
(EC) No 485/20082); 
(d) clearance of accounts through the Commi ssion (both annual financial clearance 
and multi-annual conformity clearance). 
These four levels establish a comprehensiv e system for the management and control 
of agricultural expenditure. It includes, on the one hand, all the necessary building 
blocks to guarantee a sound administration of the expenditure at Member States’ 
level and, on the other hand, allows the Co mmission to counter the risk of financial 
losses as a result of any deficiencies in  the set-up and operati on of those building 
blocks through the clearance of accounts procedure.  
Article 9(1) of Regul ation (EC) No 1290/20053 provides for the ge neral obligation of 
Member States to ensure that transacti ons financed by the EAGF and the EAFRD are 
carried out and executed correctly, to prev ent and deal with irregularities and to 
recover amounts unduly paid. 
In complement to this general obligation, th ere is a system of c ontrols and dissuasive 
sanctions of final beneficiaries which reflect s the specific features of the regime and 
the risk involved in its administration.  
The controls are carried out  by the paying agencies or by delegated bodies operating 
under their supervision and effective, di ssuasive and proportionate sanctions are 
imposed if the controls reveal non-complian ce with EU rules. The system generally 
provides for exhaustive admini strative controls of 100% of the aid applications, 
                                                 
1  OJ L 171, 23.6.2006, p. 90–110.  
2  OJ L 143, 3.6.2008, p. 1–9.  
3  OJ L 209, 11.08.2005, p. 1.  
 
EN 18   EN cross-checks with other databases where this is considered appropriate as well as pre-
payment on-the-spot controls  of a sample of transact ions ranging between 1% and 
100%, depending on the risk associated with the regime in question. For example, the control rate in the fr amework of the Integrated Administration and Control 
System (IACS) is normally 5%. If the on-the- spot controls reveal a high number of 
irregularities, additiona l controls must be ca rried out. The sample of transactions is 
determined on a risk and/or random basis. 
4.2. Integrated Administration  and Control System (IACS) 
EAFRD : Axis II - Council Regulations (EC) No. 1782/2003
4 and (EC) No. 73/20095 
and Commission Regula tions (EC) No. 796/20046 and (EC) No. 1122/20097 which 
contain the rules on the IACS are also a pplicable to Rural development support under 
Axis 2 as far as area and animal-related measures are concerned. 
A fully operational IACS consists of: a co mputerised database, an identification 
system for agricultural parcels and farmer s claiming aid, a system for identification 
and registration payment entitlements, aid applications and integrated controls 
system (claim processing, on-the-spot checks and sanctioning mechanisms) and a system for identifying and registering anim als where applicable. The IACS is fully 
automated and provides highly efficien t controls by maximising the use of 
computerised and remote controls. 
This system foresees a 100% administrative  control covering the eligibility of the 
claim, complemented by administrative cr oss-controls with standing databases 
ensuring that only areas or animals that fulfil all eligible requirements are paid 
premium and by a minimum 5% of on-the-s pot checks to check the existence and 
eligibility of the area or the animals claimed.   
The use of standing databases, which are appropriately updated, is well adapted to 
the schemes whereby aids are directly paid  to the farmers and based on the surfaces 
or on the number of animals, in that the risk can be reduced to the lowest levels. Moreover, the result of the European C ourt of Auditors' work shows that, when 
accurate and reliable data is introduced and the system is properly implemented, the 
IACS is an effective control system to  limit the risk of i rregular expenditure. 
For the financial year 2009, IACS covers  some 59.7% of payments made under the 
EAFRD (89% for EAGF-expenditure). The relevant components of the IACS are 
applicable to the rural development measur es, which are based on area or number of 
animals. Such measures include, inter alia, agri-environment and animal welfare measures, less-favoured areas and areas with environmental restrictions and 
afforestation of agricultural land.  
The Commission services verify the eff ectiveness of Member States' IACS and 
homogenous implementation by means of both on-the-spot auditing and general 
supervision based on annually supplied financ ial and statistical data. It has been 
                                                
 
4 OJ L 270, 21.10.2003, p. 1.  
5 OJ L30, 31.1.2009, p. 16  
6 OJ L 141, 30.4.2004, p. 18.  
7 OJ L 316, 2.12.2009, p.65 
 
EN 19   EN established already for some years now that  the IACS provides an excellent and cost 
effective means of ensuring the proper use of EU funds. 
Council Regulation (EC) No 1698/20058, as amended, contains the rules on support 
for rural development by EAFRD; Co mmission Regulations (EC) No 1974/20069 
and 1975/200610, as amended, lay down the rules fo r the application and control of 
rural development support measures. 
The control rules provided by Regul ation 1975/2006 take into account the 
characteristics of the measures under Axis  2 i.e. timing for the submission of the 
payment claims aligned with the deadline set for the first pillar, payments made after the finalization of the cont rols, cross-compliance respect , and a detailed sanction 
system.  
5. C
LEARANCE OF ACCOUNTS  
5.1. Conformity clearance - Introduction 
It is primarily the Member States' res ponsibility to satisfy themselves that 
transactions are carried out and executed correctly via a system of control and 
dissuasive sanctions. Where Member States fail to meet this requirement, the Commission applies financial corrections to protect the financial interests of the EU. 
The conformity clearance relates to the legali ty and regularity of transactions. It is 
designed to exclude expenditure from EU fi nancing which has not been effected in 
compliance with EU rules, thus shield ing the EU budget from expenditure that 
should not be charged to it (f inancial corrections). In c ontrast, it is not a mechanism 
by which irregular payments to beneficiar ies are recovered, which according to the 
principle of shared management is the sole responsibility of Member States although 
such responsibility should be executed in accordance with the principles of 
effectiveness and equivalence. 
Financial corrections are determined on the basis of the nature and gravity of the 
infringement and the financial damage cau sed to the EU. Where possible, the amount 
is calculated on the basis of the loss actually caused or on the basis of an 
extrapolation. Where this is not possible, fl at-rates are used which take account of the 
severity of the deficiencies in the national control systems in order to reflect the financial risk for the EU.  
Where undue payments are or can be identified as a result of the conformity 
clearance procedures, Member States ar e required to follow them up by recovery 
actions against the final beneficiaries. However, even where this is not possible because the financial correcti ons only relate to deficiencies in the Member States' 
management and control systems, financia l corrections are an important means to 
improve these systems and thus to prevent or detect and recove r irregular payments 
to final beneficiaries. The conformity clear ance thereby contributes to the legality 
                                                
 
8 OJ L277, 21.102005, p 1 
9 OJ L368, 23.12.2006, p.15 
10 OJ L 368, 23.12.2006 p.74 
 
EN 20   EN and regularity of the expenditu re both at the level of the fi nancial beneficiaries and of 
the national paying agencies. 
5.2. Conformity clearance – audits and decisions adopted in 2009 
Audits In 2009, 29 conformity missions were carried out in respect of the EAFRD of which 
all enquiries for Axis 2 include d the agri-environment measures. 
Conformity decisions 
During the financial year 2009, two conform ity decisions were adopted which had a 
financial impact in the year. Neither deci sion resulted in the exclusion from EU 
financing of EAFRD expenditure:  
• Decision 2008/960/EC of 8 D ecember 2008 – 29th Decision.  
• Decision No 2009/253/EC of 19 March 2009 – 30th Decision. 
Regulation (EC) No 1290/2005 introduced an  automatic clearing mechanism for 
non recovered irregular payments after 4 year s or, in case the recovery is challenged 
in national courts, 8 years after the estab lishment of the irregularity. The financial 
consequences of non recovery are shared by the Member State concerned and the EU 
on a 50 %-50 % basis. Under EAFRD, these provisions are applicable only after the 
closure of the rural development programme.  The validity of this 50%-50% rule has 
been confirmed by the General Court (judg ement of 22 April 2010, joined cases  
T-274/08 and T-275/08. 
Regarding financial year 2009, Member St ates reported the information about 
recovery cases by 1 February 2010. The Me mber States recovered EUR 27 million 
during financial year 2009 in relation to  rural development programmes, and the 
outstanding amount still to be recovered fr om beneficiaries at the end of that 
financial year was EUR 12 million. The amounts recovered can be reused by the Member States under the same rural deve lopment programme. As none of the rural 
development programmes has been closed yet the automatic clearance mechanism set out above did not apply on the cases reported by the Member States for financial year 2009.  
5.3. Financial clearance 
5.3.1. Introduction 
The financial  clearance  covers the accounts and contro l systems set up by the paying 
agencies. Within this framework, DG AGRI pa ys particular attention to the certifying 
bodies’ conclusions and recommendations (where weaknesses are found), following 
their reviews of the paying agencies’ manage ment and control systems. As part of 
this review, the DG AGRI departments also cover aspects relating to the 
accreditation criteria for the paying agencies and protecting the financial interests of 
the EU as regards the advances paid, secu rities obtained and intervention stocks. 
 
EN 21   EN The Commission adopts an annual clearance of accounts decision clearing the paying 
agencies' annual accounts on the basis of the certificates and reports from the certifying bodies, but without  prejudice to any subseque nt decisions to recover 
expenditure which proves not to have b een in accordance with the EU rules. The 
Commission must clear the accounts and a dopt its clearance d ecision by 30 April of 
the year following the fina ncial year in question. 
5.3.2. Decisions 
5.3.2.1. Financial clearance for financial year 2007 
In respect of financial year 2007, three clea rance decisions were adopted in January 
2009, clearing the EAGF-accounts of Dienst  Regelingen (Netherlands), PRIA 
(Estonia) and INGA (Portugal); the EAFR D-accounts of AMA (Austria), ALV and 
Région Wallonne (Belgium), Baden-Württemberg and Bayern (Germany) and also the TRDI-expenditure of PRIA (Estonia). At  the end of 2009, three further decisions 
were launched clearing the annual accounts of an additional 5 paying agencies in respect of their expenditure funded by th e EAGF, the EAFRD and the TRDI. Only 
the accounts of ARBEA (Italy) remain disjoined.  The total amount still to be cleared 
is EUR 101 million, representing 0.2 % of tota l expenditure in financial year 2007.  
5.3.2.2. Financial clearance decision for the financial year 2008 
On 29 April 2009 the Commission adopted three decisions clearing the annual 
accounts of 68 paying agencies in respect of their expenditur e funded by the EAGF, 
the EAFRD and the TRDI. By means of thes e decisions it cleared an amount of EUR 
34 297 million for the EAGF, an amount of  EUR 5 119 million for the EAFRD and 
an amount of EUR 452 million for the TRDI. 
At the end of 2009 DG AGRI launched the pr ocedures for adopting three further 
decisions clearing the annual accounts of 10 paying agencies in respect of their expenditure funded by the EAGF, the EAFR D and the TRDI.  By means of these 
decisions an additional amount of EUR 1 879 million for the EAGF, an amount of 
EUR 566 million for the EAFRD and an amount of EUR 2 m illion for the TRDI 
were cleared in January 2010.  
The accounts of ARBEA, Bayern StMLF, ODARC and OPEKEPE are still to be 
cleared.  In total, EUR 2 563 million is still to be cl eared for the EAGF, and EUR 
376 million for the EAFRD i.e. around 5 % of  expenditure.  All TRDI expenditure 
has been cleared. 
5.4. Appeals brought before the European  Courts against clearance decisions 
Judgments handed down In the financial year 2009 no judgements  have been handed down by the Court in 
appeals brought by the Member St ates against clearance decisions. 
Appeals pending 
In the 2009 financial year no appeals were brought by th e Member States against 
clearance decisions 
 
EN 22   EN 6. R ELATIONS WITH PARLIAMENT AND THE EUROPEAN COURT OF AUDITORS  
The relevant information about the relations  with the Parliament and the European 
Court of Auditors is available in s ection 11 of the Commission staff working 
document accompanying the 2009 financial report on the EAGF. 
7. B ASIC RULES GOVERNING THE EAFRD  AND AMENDMENTS MADE IN 2009   
7.1. General 
Basic legislation 
– Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for 
rural development by the European Ag ricultural Fund for Rural Development 
(EAFRD) (OJ L 277, 21.10.2005, p.1.); as last amended by Regulation (EC) No 
473/2009 of 25 May 2009 (OJ L 144, 9.6.2009, p.3.).  
– Commission Regulation (E C) No 1974/2006 of 15 December 2006 laying down 
detailed rules for the application of  Council Regulation (EC) No 1698/2005 on 
support for rural development by the Eu ropean Agricultural Fund for Rural 
Development (EAFRD) (OJ L 368, 23.12.2009, p.15); as last amended by 
Regulation 482/2009 of 8 J une 2009 (OJ L 145, 10.6.2009, p.17.).  
– Commission Regulation (EC) No 1 975/2006 of 7 December 2006 laying down 
detailed rules for the implementation of Council Regulation (EC) No 1698/2005, 
as regards the implementation of control procedures as well as cross-compliance 
in respect of rural development support measures (OJ L 368, 23.12.2006, p.74 ); as 
last amended by Regulation (EC) No 484/2009 of 9 June 2009 (OJ L 145, 
10.6.2009, p.25.).  
 Recent modifications 
In order to establish the legal framewor k for the Health Check and the European 
Economic Recovery Plan (EERP), legi slation was updated during 2009. Council 
Regulation (EC) No 1698/2005 was first am ended by Regulation (EC) No 74/2009 to 
introduce the Health Check amendments, including possibility to apply higher 
amounts and rates of support a nd co-financing rates for the operations addressing the 
four new challenges (climate change, wa ter management, biodiversity, renewable 
energy) and the priority "dairy restructuring".  
Additionally, the Council re gulation on direct support schemes for farmers was 
amended by Regulation (EC) No 73/2009 wh ich made available the additional EUR 
3.4 billion of funds "modulated" from pillar 1 to pillar 2. 
As a consequence of the EERP Council Regulation 1698/2005 was amended another 
time with Council Regulation 473/2009. This m odification allows Member States to 
make use of additional funds of 1.02 bill ion in their rural development programmes 
in the years 2009 and 2010. Furthermore, this amendment specified "support for broadband infrastructure as a sixth priority  on which the additional funds from EERP 
could be spend. 
 
EN 23   EN As a consequence of the amendments to  the Council regulation the implementing 
regulation, Regulation (EC) No 1974/2006 ha d to be amended twice as well. 
Regulation (EC) No 363/2009 defined the re quirement that the National Strategy 
Plans have to be revised as a conseque nce of the additional funds being made 
available, defined that demarcation crit eria between rural development and common 
market organisations should fall under notifi cation procedure, rais ed temporarily the 
maximum amount of advances payable for investment operations , and defined output 
indicators and related ta rgets by type of operation. Regulation (EC) No 482/2009 
defined procedures under which Member Stat es could use higher co-financing rate in 
2009, provided the possibility to grant advances for the running costs of Local Action Groups, and made standard costs appr oach available for operations in natural 
heritage or high nature value sites. 
The control regulation for rural devel opment, Regulation (EC) No 1975/2006 was 
amended by Regulation (EC) No 484/2009 which streamlined control rules of certain 
area- and animal-related measures with Pillar  1 and clarified certa in other provisions. 
7.2. Declarations 
– Commission Regulation (EC)  No 883/2006 of 21 June 2006 laying down detailed 
rules for the application of Council Re gulation (EC) No 1290/2005 as regards the 
keeping of accounts by the paying agenci es, declarations of expenditure and 
revenue and the conditions for reimburs ing expenditure under EAGF and EAFRD 
(OJ L 171, 23.6.2006, p. 1); as last amended by Commi ssion Regulation (EC) No 
482/2009 of 8 June (OJ L145, 10.6.2009, p. 17) . 
7.3. Checks 
– Council Regulation (EC) No 1782/ 2003 of 29 September 2003 (OJ L 270, 
21.10.2003, p. 1) establishing common rules for direct support schemes under the 
common agricultural policy and establishi ng certain support schemes for farmers, 
and repealing Council Regulation (EEC ) No 3508/92 of 27 November 2002 (OJ 
L 94, 31.3.2004, p. 70); as last amended by Regula tion (EC) No 1009/2008 of 9 
October 2008 (OJ L 276, 17.10.2008, p. 1 ).  
– Council Regulation (EC) No 73/2009 of 19 January 2009 (OJ L30, 31.1.2009, p. 
16) establishing common rules for direct  support schemes for farmers under the 
common agricultural policy and establishi ng certain support schemes for farmers, 
amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 
and repealing Regulation (EC) No 1782/ 2003 with effect from 1 January 2009 
(with some exceptions mentioned in Article 149). 
– Commission Regulation (EC) No 796/ 2004 of 21 April 2004 (OJ L 141, p. 18) 
laying down detailed rules for the im plementation of cross-compliance, 
modulation and the integrated  administration and contro l system provided for in 
of Council Regulation (EC) No 1782/2003 es tablishing common rules for direct 
support schemes under the common agricu ltural policy and es tablishing certain 
support schemes for farmers and rep ealing Commission Regulation (EC) No 
2419/2001 of 11 December 2001 (OJ L 141, 30.4.2004, p. 8.); as last amended by 
Regulation (EC) No 1266/2008  of 17 December 2008 (OJ L 338, 17.12.2008, p. 
34.)
. 
 
EN 24   EN – Commission Regulation (EC) No 1 122/2009 of 30 November 2009 (OJ L 316, 
2.12.2009, p. 65) laying down detailed rules for the implementation of Council Regulation (EC) No 73/2009 as regards cross-compliance, modulation and the 
integrated administration and control syst em, under the direct support schemes for 
farmers provided for that Regulation, as well as for the implementation of Council 
Regulation (EC) No 1234/2007 as regard s cross-compliance under the support 
scheme provided for the wine sector a nd repealing Commission Regulation (EC) 
No 796/2004 of 21 April 2004 (OJ L 141, p. 18). 
– Council Regulation (EC) No 1698/2005 of 20 September 2005 (OJ L 277, 
21.10.2005, p. 1) on support for rural development by the European Agricultural Fund for Rural Development (EAFRD); as last amended by Regulation (EC) No 
473/2009 of 25 May 2009 (OJ  L 144, 9.6.2009, p. 3).  
– Commission Regulation (EC) No 1974/2006 of 15 December 2006 (OJ L 368, 
23.12.2006, p. 15) laying down detailed rules for the application of Council 
Regulation (EC) No 1698/ 2005 on support for rural development by the European 
Agricultural Fund for Rural Development (EAFRD); as last amended by 
Regulation (EC) No 482/2009 of 8 June 2009 (OJ L 145, 10.6.2009, p.17).  
– Commission Regulation (EC) No 1975/2006 of 7 December 2006 (OJ L 368, 
23.12.2006, p. 74) laying down detailed rules for the implementation of Council Regulation (EC) No 1698/2005, as rega rds the implementation of control 
procedures as well as cross-compliance in respect of rural development support 
measures; as last amended by Regulation (E C) No484/2009 of 9 June 2009 (OJ L 
145,  10.6.2009, p. 25)  
7.4. Clearance of accounts 
– Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the 
common agricultural policy (OJ L 209, 11.8.2005, p. 1); as last amended by 
Regulation (EC) No 473/2009 of 25 May 2009 (OJ L 144, 9.6.2009, p. 3).  
– Commission Regulation (EC)  No 885/2006 of 21 June 2006 laying down detailed 
rules for the application of Council Re gulation (EC) No 1290/2005 as regards the 
accreditation of paying agencies and ot her bodies and the clearance of the 
accounts of the EAGF and of the EAFRD (OJ L 171, 23.6.2006, p. 90); as last 
amended by Regulation (EC) No 1034/2008 of 21 October 2008 (OJ L 279, 
22.10.2008, p. 13).