Proposal for a Council Regulation (EC) on the implementation of Member States' action programmes on control of EAGGF Guarantee Section expenditure (95/C 336/03) COM(95) 467 final - 95/0244(CNS)

(Submitted by the Commission on 13 October 1995)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas Article 8 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (1), as last amended by Regulation (EC) No 1287/95 (2), lays down that Member States are to take the measures necessary to satisfy themselves that transactions financed by the European Agricultural Guidance and Guarantee Fund (EAGGF) are actually carried out and are executed correctly, prevent and deal with irregularities and recover sums lost as a result of irregularities or negligence;

Whereas the part-financing introduced by Council Regulation (EEC) No 307/91 of 4 February 1991 on reinforcing the monitoring of certain expenditure chargeable to the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (3), as last amended by Regulation (EC) No 3235/94 (4), will lapse at the end of the 1995 financial year for the first 12 Member States and at the end of the 1997 financial year for the three new Member States;

Whereas the Commission has sent a report to the Council on the implementation of Regulation (EEC) No 307/91 during the period 1991 to 1993, expressing the view that the Member States should continue to receive financial assistance for the monitoring of expenditure chargeable to the EAGGF Guarantee Section, in view of the Community financial interest at stake;

Whereas provision should be made, for a certain period and within the limit of the appropriations available, for Community financing for Member States' action programmes in the field of control of expenditure to amend or improve their monitoring structures or make them more effective;

Whereas the programmes must have a number of features enabling the Commission, with full knowledge of the facts, to evaluate the measures proposed by the Member States;

Whereas the programmes may be of a multiannual nature; whereas it is appropriate that henceforth information relating to the annual instalments to be presented by Member States each year should be specified;

Whereas provision should be made for consultation of the Fund Committee on the annual instalments which may qualify for Community financing;

Whereas it should be specified that the Commission is to set the rate of the Community financial contribution and the maximum amount of that contribution for each annual instalment;

Whereas systems of control and direct electronic information exchange between the Member States and the Commission covering the control of certain expenditure should be maintained and developed;

Whereas it should be laid down that the financing provided for in this Regulation cannot be combined with other Community financing;

Whereas detailed rules for the conversion of amounts expressed in ecus and in national currency should be laid down,

HAS ADOPTED THIS REGULATION:

Article 1

1. The Community shall contribute towards the costs incurred by Member States on implementing action programmes to improve the structures of inspection services or their effectiveness.

2. The action programmes referred to in paragraph 1 may relate to the creation or reorganization of inspection services dealing totally or partially with control of EAGGF Guarantee Section expenditure.

3. The measures provided for in such programmes may include the redeployment or recruitment of inspectors and their assignments, the purchase or hire of equipment and facilities required for the performance of controls, the organization of training and briefing or any other appropriate means of reinforcing the effectiveness of controls.

Article 2

1. Member States shall submit the action programmes they wish to receive Community financing to the Commission not later than 1 July of the calendar year preceding the start of their implementation. Programmes presented after 1 July cannot be considered.

However, for programmes relating to the first year of application of this Regulation, the time limit for submission of action programmes shall be the end of the second month following the date of entry into force of the implementing Regulation.

2. Programmes may be multiannual and must include the following information:

- description and analysis of the situation at the outset as regards inspectors and equipment,

- objectives of the planned action,

- schedule for implementation of measures,

- detailed description of the work for which financing is requested,

- estimate of costs of each type of action and in the case of multiannual programmes, annual financial estimates,

- cost/benefit analysis of the measure.

3. The Commission shall examine the programmes presented by the Member States. It may request additional information it deems necessary for assessing the programmes.

Article 3

1. Member States having presented action programmes in accordance with Article 2 shall communicate to the Commission at a date to be specified by the Commission the information about the annual instalment which is to be implemented for the following year, and in particular:

(a) a description of the work planned and a detailed estimate of costs,

(b) an annual application for financing and, where appropriate, an application for an advance on the Community financial contribution,

(c) from the second year of execution of the action programme, a preliminary assessment of the schemes implemented during the preceding year and, where appropriate, a proposal to amend the initial programme.

2. The annual instalment of the action programme shall be implemented between 1 January and 31 December of each year.

Article 4

1. The Community financial contribution shall be granted per calendar year, for a period of five consecutive years, starting with 1996.

It shall be granted within the limit of the annual appropriations authorized by the budget authority in the light of the financial perspective.

2. After consulting the Fund Committee referred to in Article 11 of Regulation (EEC) No 729/70, the Commission shall, for each annual instalment, set the rate of the Community financial contribution and the maximum amount of such contribution having regard to the appropriations available and on the basis of the information supplied by the Member State.

Having regard to the interest represented by the measures provided for in the annual instalment and any difficulties faced by the Member State in financing it, the Commission may decide that the instalment in question or part thereof shall be charged entirely to the Community budget.

Acceptance of financing of an annual instalment by the Commission shall not prejudge the decision on a financial contribution to subsequent annual instalments, Community financing to be reassessed each year as regards both the rate and the amount, in the light of the results achieved by previous annual instalments.

3. The Commission may have work undertaken for the maintenance and development of systems of control and direct electronic information exchange between the Member States and itself.

Article 5

Expenditure incurred which is eligible for Community financing pursuant to other Regulations and in particular:

- Council Regulation (EC) No 165/94 of 24 January 1994 concerning the co-financing by the Community of remote sensing checks and amending Regulation (EEC) No 3508/92 establishing an integrated administration and control system for certain Community aid schemes (5),

and, as regards the three new Member States:

- Council Regulation (EEC) No 4045/89 of 21 December 1989 on scrutiny by Member States of transactions forming part of the system of financing by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund and repealing Directve 77/435/EEC (6), as last amended by Regulation (EC) No 3235/94,

- Council Regulation (EEC) No 307/91 of 4 February 1991 on reinforcing the monitoring of certain expenditure chargeable to the Guarantee Section of the European Agricultural Guidance and Guarantee Fund,

- Council Regulation (EEC) No 3508/92 of 27 November 1992 establishing an integrated administration and control system for certain Community aid schemes (7), shall not be eligible pursuant to this Regulation.

Article 6

Detailed rules for the application of this Regulation shall be adopted in accordance with the procedure laid down in Article 13 of Regulation (EEC) No 729/70.

Article 7

After the fifth year, the Commission shall report to the Council on the results of the implementation of this Regulation.

Article 8

Amounts expressed in ecus and in national currency shall be converted using the exchange rate in force on the first working day of the calendar year during which the annual programme concerned begins, as published in the 'C` series of the Official Journal of the European Communities.

Article 9

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No L 94, 28. 4. 1970, p. 13.

(2) OJ No L 125, 8. 6. 1995, p. 1.

(3) OJ No L 37, 9. 2. 1991, p. 5.

(4) OJ No L 338, 28. 12. 1994, p. 16.

(5) OJ No L 24, 29. 1. 1994, p. 6.

(6) OJ No L 388, 30. 12. 1989, p. 18.

(7) OJ No L 355, 5. 12. 1992, p. 1.