(1)

Article 27 is replaced by the following: ‘Article 27 Scheme for the distribution of food to the most deprived persons in the Union 1. A scheme is established for 2012 and 2013 whereby food products may be distributed to the most deprived persons in the Union through organisations, which shall not be commercial undertakings, designated by Member States. For the purpose of this food distribution scheme, products in intervention stocks shall be made available or, where there are no intervention stocks suitable for the food distribution scheme, food products shall be purchased on the market. For the purposes of the food distribution scheme provided for in the first subparagraph ‘most deprived persons’ means physical persons, including families or groups composed of such persons, who are recorded or recognised on the basis of eligibility criteria adopted by the national competent authorities to be socially and financially dependent, or who are judged to be so on the basis of the criteria used by the designated organisations and approved by those national competent authorities. 2. Member States wishing to participate in the food distribution scheme provided for in paragraph 1 shall submit, to the Commission, food distribution programmes containing the following: (a) details of the main characteristics and objectives of such programmes, (b) the organisations designated, (c) the requests for quantities of food products to be distributed each year and other relevant information. Member States shall choose the food products on the basis of objective criteria including nutritional values and suitability for distribution. For that purpose, Member States may give preference to food products of Union origin. 3. The Commission shall adopt annual plans based on the requests and other relevant information referred to in point (c) of the first subparagraph of paragraph 2 and submitted by Member States as part of their food distribution programmes,. Each annual plan shall set out annual financial allocations by the Union per Member State. When food products included in the annual plan are not available in intervention stocks in the Member State where such products are required, the Commission shall make provision in the annual plan for the transfer of those products to that Member State from Member States where they are available in intervention stocks. The Commission may revise an annual plan in the light of any relevant developments affecting its execution. 4. The food products shall be released to designated organisations free of charge. The distribution of the food products to the most deprived persons shall be: (a) free of charge, or (b) at a price which is in no case greater than that justified by the costs incurred by the designated organisations in their distribution and that are not eligiblecosts under points (a) and (b) of the second subparagraph of paragraph 7. 5. Member States participating in the food distribution scheme provided for in paragraph 1 shall: (a) submit to the Commission an annual report on implementation of the food distribution programmes; (b) keep the Commission informed in a timely manner on developments affecting the implementation of the food distribution programmes. 6. The Union shall finance the eligible costs under the scheme. This financing shall not exceed EUR 500 million per budget year. 7. The eligible costs under the scheme shall be: (a) the cost of food products released from intervention stocks, (b) the cost of food products purchased on the market, and (c) the costs of transporting food products in intervention stocks between Member States. Within the financial resources available to implement the annual plans in each Member State, the national competent authorities may consider to be eligible the following costs: (a) costs of transport of food products to the storage depots of the designated organisations; (b) the following costs incurred by the designated organisations, to the extent that they are directly linked with the implementation of the annual plans: (i) administrative costs; (ii) transport costs between the storage depots of the designated organisations and the points of final distribution, and (iii) storage costs. 8. Member States shall carry out administrative and physical controls to ensure that the annual plans are implemented in compliance with the applicable rules and shall establish the penalties applicable in cases of irregularities. 9. The words ‘European Union’ aid accompanied by the emblem of the European Union shall be clearly marked in the packing of food distributed through the annual plans as well as in the distribution points. 10. The food distribution scheme provided for in paragraph 1 shall be without prejudice to any national schemes, whereby food products are distributed to most deprived persons, that are in conformity with Union law.’.