Council Regulation (EC) No 1268/1999 of 21 June 1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre- accession period
Date: 1999-06-21
Institutions: Council of the European Union
Subjects: Central and Eastern Europe, EU aid, accession to the European Union, aid to agriculture, enlargement of the Union, rural development

26.6.1999

EN

Official Journal of the European Communities

L 161/87

COUNCIL REGULATION (EC) No 1268/1999

of 21 June 1999

on Community support for pre-accession measures for agriculture and rural development
in the applicant countries of central and eastern Europe in the pre-accession period

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having
regard
Commission (1),

to

the

proposal

from the

Having regard to the opinion of
Parliament (2),

the European

Having regard to the opinion of the Economic and
Social Committee (3),

Having regard to the opinion of the Committee of the
Regions (4),

(1) Whereas

the

the European
conclusions of
Council of 12 and 13 December 1997 provide
for an enhanced pre-accession strategy for the
applicant countries of central and eastern Europe
and a specific pre-accession strategy for Cyprus;

(2) Whereas

the

the European
conclusions of
Council provide that the aid provided for in this
Regulation be granted for the time being to the
10 applicant countries of central and eastern
Europe;

(3) Whereas the Community has decided to provide
special assistance in the form of pre-accession
aid for the countries applying for accession in
order to carry out action to support the current
economic and social reform process in those
countries and to prepare and facilitate the
the
integration
Community economy;

economies

their

into

of

(1) OJ C 175, 9.6.1998, p. 7 and
OJ C 27, 2.2.1999, p. 18.

(2) Opinion delivered on 6 May 1999 (not yet published in

the Official Journal).
(3) OJ C 101, 12.4.1999.
(4) OJ C 93, 6.4.1999.

assistance

together with

(4) Whereas assistance from the Community support
for pre-accession measures for agriculture and
rural development in the applicant countries of
central and eastern Europe in the pre-accession
from the
period
Community under Council Regulation 1267/
1999 of 21 June 1999 establishing an Instrument
for Structural Policies for Pre-accession (5) should
be coordinated within the framework of Council
Regulation 1266/1999 of 21 June 1999 on
coordinating aid to the applicant countries in the
framework of
the pre-accession strategy and
amending Regulation (EEC) No 3906/89 (6) and
to the conditional provisions of
be subject
Council Regulation (EC) No 622/98 of 16 March
1998 on assistance to the applicant countries in
the framework of the pre-accession strategy, and
in particular on the establishment of Accession
Partnerships (7);

to the

(5) Whereas paragraph 17 of the conclusions of the
Luxembourg European Council of 12 and
financial
13 December 1997 provides
involved in the
support
in the
enlargement process will be based,
allocation of aid, on the principle of equal
treatment,
of
accession, with particular attention being paid to
countries with the greatest need;

independently

countries

time

that

the

of

(6) Whereas the Community pre-accession aid has to
to resolve priority
be decided in particular
problems
the
applicant countries in a sustainable manner and
facilitating the implementation by them of the
acquis communautaire, focusing in particular on
the common agricultural policy (CAP);

in adapting the economies of

(7) Whereas pre-accession aid for agriculture should
follow the priorities of
the reformed CAP;
whereas such aid should be applied to priority
areas to be defined for each country, such as the

(5) See page 73 of this Official Journal.
(6) See page 68 of this Official Journal.
(7) OJ L 85, 20.3.1998, p. 3.

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of

for

improvement
processing
structures
agricultural and fishery products, distribution,
quality control of food as well as veterinary and
setting-up of
plant-health controls and the
should also be
producer groups; whereas
possible to finance integrated rural development
initiatives and agri-
projects to support
local
environmental measures,
the
improve
efficiency of farms, to adapt infrastructure as
well as measures which will accelerate structural
reconversion;

to

it

(8) Whereas,

in

the

sector,

agricultural

the
Community support will be implemented in the
form of multiannual programmes established in
accordance with the guidelines and the principles
of the operational programmes applied in the
to
framework of
facilitate
the
implementation of the principles and procedures
in force;

structural policy in order
the

applicant

countries

in

(9) Whereas, in accordance with Council Regulation
(EC) No 1260/1999 of 21 June 1999 laying
down general provisions on the Structural
Funds (1), assistance can only be granted for any
measure
financial
from one Community
instrument within a given period, subject in the
case of the European Investment Bank (EIB) to
its own rules on the provision of assistance;

(10) Whereas Community funds should not replace
funding available in each applicant country and
constitutes a
whereas Community assistance
financial
completion of
projects;

contribution to the

(11) Whereas pre-accession aid in the agricultural
sector has to be granted in the form of a
financial contribution and subject to the specific
financial rules established by Council Regulation
(EC) No 1258/1999 of 17 May 1999 on the
financing of the common agricultural policy (2);

(12) Whereas the allocation to applicant countries of
resources fixed by the budget authority in the
preamble of
this instrument should take full
account of national prosperity on the basis of
the agricultural
gross domestic product, of
workforce, of utilised agricultural area and,
if
necessary, of specific territorial particularities;

(13) Whereas applicant countries should submit their
plans as quickly as possible in order to avoid
delaying the implementation of the pre-accession
measures from 1 January 2000;

implementation

(14) Whereas the drawing-up of those programmes,
follow-up
their
should comply with the specific
mechanisms
Structural Fund rules and thus facilitate the
transfer of the acquis communautaire;

and

the

(15) Whereas a detailed ex-ante assessment should be
carried out before Community resources are
commited in order to ensure that the programme
complies with real needs, to permit flexibility in
the implementation of Community intervention
to take account of the relevant information and
the
the measures, and to
strengthen the monitoring and ex-post evaluation
to ensure the effectiveness of
the anticipated
impact;

results of

first

(16) Whereas provision should be made

for a
monitoring committee to assist the Commission
with the follow-up to each programme;

(17) Whereas

the necessary decisions

should be
adopted in accordance with the procedure laid
down in Article 50(2) of Regulation (EC)
No 1260/1999 and for specific financial items in
accordance with the procedure laid down in
Article 13 of Regulation (EC) No 1258/1999;

(18) Whereas reports should be submitted to the
the Economic and
Parliament,
the
Social Committee and the Committee of
Regions
the
progress
implementation of agricultural pre-accession aid;

the Council,

achieved

on

in

(19) Whereas,

during

transitional

period
the
(1 January 1999 to 31 December 2001) all
reference to the euro should as a general rule be
considered as a reference to the euro as a
in accordance with the second
monetary unit,
sentence of Article 2, of Council Regulation (EC)
No 974/98 of 3 May 1998 on the introduction
of the euro (3);

(20) Whereas the implementation of these measures
will help to achieve the Community’s aims;
whereas the Treaty does not provide for the
adoption of this Regulation powers other than
those laid down in Article 308,

(1) See page 1 of this Official Journal.
(2) OJ L 160, 26.6.1999, p. 103.

(3) OJ L 139, 11.5.1998, p. 1.

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HAS ADOPTED THIS REGULATION:

TITLE 1

OBJECTIVES AND TYPES OF MEASURES

Article 1

Objectives

— development and diversification of

economic
activities, providing for multiple activities and
alternative income,

— setting up farm relief and farm management

services,

— setting up producer groups,

— renovation and development of villages and the
protection and conservation of the rural heritage,

1.
This Regulation establishes the framework for
Community support for sustainable agriculture and
sustainable rural development for the pre-accession
period for the following applicant countries: Bulgaria,
the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, Slovakia and Slovenia.

— land improvement and reparcelling,

— establishment and updating of land registers,

— improvement of vocational training,

Community support

comply with the
2.
conditions laid down in the framework of accession
partnerships and shall relate in particular to:

shall

(a) contributing to the implementation of the acquis
common

communautaire
agricultural policy and related policies;

concerning

the

(b)

solving priority and specific problems for the
sustainable adaptation of the agricultural sector
and rural areas in the applicant countries.

Article 2

Measures

In accordance with the priorities defined by the
applicant countries and as defined in Article 4(3),
support for agriculture and rural development shall
the following measures,
relate to one or more of
which shall be consistent with the relevant acquis
communautaire:

— investments in agricultural holdings,

— development

and

improvement

of

rural

infrastructure,

— agricultural water resources management,

including afforestation of agricultural
— forestry,
investments in forest holdings owned by
areas,
private
and
and
marketing of forestry products,

processing

owners

forest

— technical assistance for the measures covered by
including studies to assist with
this Regulation,
the
the
programme, information and publicity campaigns.

and monitoring

preparation

of

TITLE II

ASSISTANCE

Article 3

— improving the processing and marketing of

agricultural and fishery products,

Complementarity and technical assistance

— improving the structures for quality, veterinary
the quality of

and plant-health controls,
foodstuffs and for consumer protection,

for

— agricultural production methods designed to
and maintain the

environment

protect
the
countryside,

shall

action

The Community

1.
complement
corresponding national actions or contribute to these.
It shall be established in close collaboration between
the Commission, the applicant country, the competent
authorities and bodies and the economic and social
partners at the appropriate level. Such cooperation
shall
implementation including
financing and appraisal, monitoring and evaluation of
the measures.

cover preparation,

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In the framework of the technical assistance, the
2.
take initiatives and measures to
Commission shall
ensure that
the Community measures supports the
priority objectives referred to in Article 1 and bring
added value to national initiatives.

Article 4

Programming

1. Measures for agriculture and sustainable rural
development under this Regulation shall be the subject
of a plan to be drawn up at the most appropriate
geographical level. The plan shall be prepared by the
competent authorities designated by the applicant
country and shall be submitted by those countries to
the Commission after the competent authorities and
organisations at
the appropriate level have been
consulted.

The plan shall cover a period of up to seven
to the

2.
years
application of Article 1(2), shall include:

from the year 2000 and subject

— a quantified description of the current situation
showing disparities, shortcomings and potential
the main results of previous
for development,
operations
Community
assistance, the financial resources deployed and
the evaluation results available,

undertaken

with

— where appropriate, information on the need for
technical assistance
preparation,
the measures

any studies,
operations
the
relating
implementation or adaptation of
concerned,

training or
to

— the names of the competent authorities and bodies
the programme,

responsible for carrying out
including the paying agency,

— a definition of (cid:28)final beneficiaries’, which may be
organisations, or public or private undertakings
responsible for conducting the operations. In cases
where public aid is granted by other authorities
entrusted there with by the applicant countries,
the final beneficiaries shall be the institutions
deciding the granting of the public aid,

— a description of the measures contemplated for
implementing the plans, and in particular aid
schemes,
including the points necessary for
assessing the rules of competition,

— provisions ensuring correct implementation of the
programme, including monitoring and evaluation
and the definition of quantified indicators for
evaluation and the arrangements for controls and
penalties,

— the

results of

and provisions
consultations
adopted for associating competent authorities and
bodies as well as appropriate economic, social
and environmental partners.

— a description of

its
quantified objectives, the priorities selected and
the geographical scope,

strategy proposed,

the

— a

prior

appraisal
environmental

showing

economic,
including effects on employment,

the
and social

anticipated
impact,

the

national,

the Community

— an indicative overall financial table summarising
and, where
the
appropriate,
resources
provided for and corresponding to each rural
development priority adopted in the context of
if necessary, measures
the plan,
including,
financed by the EIB and other
international
financial instruments,

financial

private

— an indicative financial profile for each year
covered by the programming period for each
source contributing to the programme,

In their plans, applicant countries shall ensure
3.
that priority is given to measures to improve market
efficiency, quality and health standards and measures
to create new employment
in
compliance with the provisions on the protection of
the environment.

in rural

areas,

4.
Unless otherwise agreed with the applicant
country, the plan shall be submitted not later than six
months after the entry into force of this Regulation.

5. On the basis of each applicant country’s plan, a
Programme for Agriculture and Rural Development
shall be approved by the Commission in accordance
with the procedure laid down in Article 50(2) of
Regulation (EC) No 1260/1999 within six months of
the
submission of
relevant
In particular the
Commission shall appraise the proposed plan to
determine whether
this
is
Regulation.

the plan, on condition that all

information is available.

consistent with

it

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The programme may, if necessary, be revised and

6.
amended as a result:

— of

socioeconomic development,

relevant new
information and the results observed from the
concerned,
implementation
the
and
including
the
evaluation, as well as the need to adjust
the
amounts of aid available,

of monitoring

of
results

actions

— in view of actions taken in the framework of the
national
the acquis

the adoption of

partnership
accession
for
programme
communautaire,

and

the

Measures financed under this Regulation shall comply
the Europe Agreements,
with the provisions of
including
those
the
agreements with regard to State aids.

implementing

provisions

Measures financed under this Regulation shall comply
with the objectives of the CAP,
in particular those
relating to common market organisations, and of
Community structural measures. They shall not cause
commercial disruption.

TITLE III

— of a reallocation of resources as laid down in

FINANCIAL PROVISIONS

Article 15.

Article 5

Ex-ante appraisal, monitoring and evaluation

1.
In order to assess their effectiveness, support for
measures included in the programme shall be subject
to prior and mid-term appraisal, on-going monitoring
and ex-post evaluation designed to appraise the
success and impact with respect
to the defined
objectives.

2.
The Commission and the applicant country shall
monitor the implementation of the programme. Such
monitoring shall be carried out by way of jointly
agreed procedures.

Monitoring shall be carried out by reference to
specific
financial
indicators agreed and established beforehand.

environmental

physical

and

shall

Applicant countries
submit annual progress
reports to the Commission not later than the end of
the first six months of the following year, which shall
information referred to in
contain at
Article 37 of Regulation (EC) No 1260/1999.

least

the

3.
A monitoring committee shall be established for
each rural development programme in compliance
with Article 35 of Regulation (EC) No 1260/1999.

Article 7

Resources

Community assistance under

1.
this Regulation
shall be granted during the period from 2000 to 2006.
The annual appropriations shall be authorised by the
budgetary authority within the limits of the financial
perspective.

financial

The Community

for
2.
carrying out the rural development programme shall
be granted in the form of advances, part-financing and
financing in accordance with the principles laid down
in Article 30 of Regulation (EC) No 1260/1999.

contribution

Payments of financial assistance may take the form of
advances
implementation and of
for programme
payments against expenditure incurred.

The

financial

3.
allocation to each applicant
country for pre-accession aid under this instrument
shall be based on the following objective criteria:

— farming population,

— agricultural area,

Article 6

Compatibility

— gross domestic product

(GDP) per capita in

purchasing power,

— specific territorial situation.

Measures granted Community support shall comply
with the commitments adopted in the Accession
Partnership and shall be consistent with the principles
of the national programme for the adoption of the
acquis communautaire.

For the period referred to in Article 4(2), up to
4.
2 % of the annual allocation of funds may be devoted
to financing the measures taken on the initiative of the
Commission for preliminary studies, exchange visits,
evaluations and controls.

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Article 8

Article 10

Rate of Community contribution

Reduction, suspension and cancellation of aid

The Community contribution may amount to up

1.
to 75 % of the total eligible public expenditure.

For measures referred to in the last indent of Article 2
and Article 7(4),
the Community contribution to
financing may amount to up to 100 % of the total
eligible cost.

2.
For revenue generating investments, public aid
may amount to up to 50 % of the total eligible cost of
which the Community contribution may amount to up
to 75 %. In any case the Community contribution
shall comply with the ceilings on rates of aid and
cumulation laid down for State aid.

The financial support and the payments shall be

3.
expressed in euro.

Article 9

Financial control

1.
The financial support shall comply with the
principles laid down in Regulation (EC) No 1258/
1999.

The Commission shall
implement expenditure under
this Regulation in accordance with the Financial
Regulation applicable to the general budget of the
European Communities on the basis of the financing
memorandum to
the
up
Commission and the applicant country.

between

drawn

be

The Commission,

in Article 12, shall adopt

in accordance with the
2.
procedure set out
the
methods for managing the programme, the provisions
for monitoring and checking its execution, the systems
for preventing and checking irregularities and the
procedures for recovering amounts unduly paid. These
measures shall be adopted as a prerequisite to the
referred to in
approval of
Article 4(5).

the programme as

3. Without prejudice to checks carried out by
beneficiary countries, the Commission and the Court
of Auditors may, through their own agents or duly
authorised representatives,
carry out on-the-spot
technical or financial audits, including sample checks
and final audits.

1.
If the implementation of a measure does not
appear to justify any part of the finance allocated to
it, the Commission shall carry out an appropriate
examination of the case, in particular by requesting
the applicant country or the authorities designated by
it to implement the measure to make their comments
within a specified period.

Following that examination,

the Commission
2.
may reduce or
suspend the aid for the measure
concerned if the examination confirms the existence of
an irregularity or of an important modification which
affects the nature or the conditions of implementation
of the measure and for which Commission approval
was not obtained.

3.
Any amount recovered by way of overpayment
shall be transferred to the Commission. The amounts
not transferred shall be subject to interest on arrears
in accordance with the provisions of the Financial
Regulation.

Article 11

The Commission shall allocate the available resources
to the applicant countries for the implementation of
Article 7(2). Within three months of the adoption of
this Regulation, the Commission shall communicate its
decisions to each applicant country on the indicative
financial allocation for seven years.

TITLE IV

IMPLEMENTING RULES

Article 12

1.
The Commission shall adopt detailed rules for
the implementation of this Regulation in accordance
with the procedure laid down in Article 50(2) of
Regulation (EC) No 1260/1999.

adopt

The Commission shall

2.
the detailed
financial rules in accordance with the procedure laid
down in Article 13 of Regulation (EC) No 1260/1999.
They
to appropriate
provisions
compliance with budgetary
discipline.

relate,
to ensure

in particular,

shall

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TITLE V

— informing the general public of the Community’s

role in relation to the aid.

OTHER PROVISIONS

Article 13

Reports

The Commission shall present an annual report on the
Community support granted under this Regulation to
the
the European Parliament,
Economic
the
and
Committee of the Regions.

to the Council,
to

Social Committee

and

In such reports
the Commission shall outline in
particular the progress made towards achieving the
objectives set out in Article 1.

TITLE VI

FINAL PROVISIONS

Article 14

Information and publicity

1.
The programmes set out in Article 4(5) shall be
the subject of appropriate publicity in the applicant
countries.

2.

The publicity shall entail in particular:

The proposals contemplated and the measures adopted
to that end shall be communicated to the Commission.

Article 15

On accession to the European Union, a country shall
lose its entitlement to support under this Regulation.
Resources made available as a result of an applicant
country acceding to the European Union shall be
listed in
reallocated to other applicant countries
Article 1(1). Reallocation shall be based on applicant
countries’ need and capacity for absorbing assistance
and on the criteria laid down in Article 7(3).

The Council, acting by qualified majority on a
proposal from the Commission, shall take a decision
outlining the general approach for reallocation.

In the light of the decision referred to in the second
paragraph by the Council,
the Commission shall
decide on the reallocation of available resources
among the other beneficiaries in accordance with the
procedure laid down in Article 12(1).

Article 16

Entry into force

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

— informing potential beneficiaries and professional

organisations of the assistance available,

It shall apply from 1 January 2000.

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

Done at Luxembourg, 21 June 1999.

For the Council

The President

G. VERHEUGEN