Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds
Date: 1999-06-21
Institutions: Council of the European Union
Subjects: Structural Funds, development aid, economic conversion, employment policy, regional aid, social situation

26.6.1999

EN

Official Journal of the European Communities

L 161/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1260/1999

of 21 June 1999

laying down general provisions on the Structural Funds

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 161 thereof,

regard
Having
Commission (1),

to

the

proposal

from the

Having regard to the assent 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 Article 158 of the Treaty states that, in
order
to strenghten its economic and social
cohesion, the Community shall aim at reducing
disparities between the levels of development of
the various regions and the backwardness of the
least-favoured regions or islands, including rural
areas; whereas Article 159 provides for that
action to be supported through the Structural
Funds, the European Investment Bank (EIB) and
the other existing financial instruments;

(2) Whereas Article 19 of Council Regulation (EEC)
No 2052/88 of 24 June 1988 on the tasks of the
Structural Funds and their effectiveness and on
between
their
coordination
themselves and with the operations of
the
European Investment Bank and the other
the
existing financial
Council to re-examine that Regulation on the

instruments (5),

activities

requires

of

of

proposal

a Commission

basis
before
31 December 1999; whereas, in order to improve
the transparency of Community legislation, it is
desirable to bring together all
the provisions
concerning the Structural Funds into a single
Regulation and to repeal Regulation (EEC)
No 2052/88 and Council Regulation (EEC)
No 4253/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC)
No 2052/88 as regards the coordination of the
activities of the different Structural Funds, on the
one hand, between themselves and with the
operations of the European Investment Bank and
the other existing financial instruments, on the
other hand (6);

(3) Whereas, by virtue of Article 5 of Protocol 6 on
special provisions
for Objective 6 in the
framework of the Structural Funds in Finland
and Sweden, attached to the Act of Accession of
Austria, Finland and Sweden, the provisions of
that Protocol should be re-examined before the
end of 1999, simultaneously with Regulation
(EEC) No 2052/88;

(4) Whereas in order to increase the concentration
and simplify the operation of
the Structural
Funds the number of priority objectives should
be reduced as compared with Regulation (EEC)
No 2052/88; whereas those objectives should be
redefined as promoting the development and
structural
regions whose
is lagging behind, economic and
development
facing structural
social
difficulties
and modernising
adapting
policies and systems of education, training and
employment;

conversion of areas

adjustment

and

of

(1) OJ C 176, 9.6.1998, p. 1.
(2) Assent delivered on 6 May 1999 (not yet published in the

Official Journal).

(3) OJ C 407, 28.12.1998, p. 74.
(4) OJ C 373, 2.12.1998, p. 1.
(5) OJ L 185, 15.7.1988, p. 9. Regulation as last amended
by Regulation (EC) No 3193/94 (OJ L 337, 24.12.1994,
p. 11).

(5) Whereas in its efforts to strengthen economic
and social cohesion the Community also seeks to
promote
and
harmonious,
sustainable development of economic activities, a
high level of employment, equality between men

balanced

the

(6) OJ L 374, 31.12.1988, p. 1. Regulation as last amended

by Regulation (EC) No 3193/94.

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26.6.1999

in

should

integrate

particular

and women and a high level of protection and
improvement of the environment; whereas those
efforts
the
requirements of environmental protection into
the design and implementation of the operations
of the Structural Funds and help to eliminate
inequalities and promote equality between men
and women; whereas the Funds’ operations may
also make
any
possible
discrimination on the grounds of race, ethnic
origin, disability or age by means in particular of
an evaluation of needs, financial incentives and
an enlarged partnership;

combat

to

it

(6) Whereas cultural development, the quality of the
natural and the man-made environment,
the
qualitative and cultural dimension of life and the
development of tourism contribute to making
regions economically and socially more attractive
in so far as they encourage the creation of
sustainable employment;

is
objective

the primary contributor

(7) Whereas the European Regional Development
to
Fund (ERDF)
attaining
the
the
development and structural adjustment of the
regions whose development
is lagging behind
and economic and social conversion of areas
facing structural difficulties;

promoting

of

(8) Whereas the tasks of the European Social Fund
to take
should be adjusted in order
the European

(ESF)
account of and to implement
employment strategy;

1993;

Funds

(9) Whereas the structural aspects of the common
fisheries policy have been integrated as a full
structural policy under the rules governing the
whereas
Structural
since
the
implementation should continue under
Financial
Structural
Instrument
(FIFG);
whereas assistance from FIFG in Objective 1
shall
this
Objective and the assistance outside Objective 1
shall be subject to a single programme in each
Member State concerned;

the programming of

Fisheries Guidance

form part of

Funds
for

through

the

(10) Whereas

the Community has undertaken a
reform of the common agricultural policy which
includes structural and accompanying measures
for promoting rural development; whereas in this
context the Guidance Section of the European
Agricultural Guidance and Guarantee Fund
to
(EAGGF)
attaining
the
development and structural adjustment of the
regions whose development is lagging behind, by

should continue
the

to contribute

objective

priority

of

Section

processing

and marketing

in rural areas; whereas
contributes

the structures of
improving the efficiency of
production,
of
agricultural and forest products and developing
the
local potential
to
EAGGF Guarantee
attaining the priority objective of economic and
facing structural
social
difficulties,
Council
Regulation (EC) No 1257/1999 of 17 May 1999
from the
on support
European Agricultural Guidance and Guarantee
Fund (EAGGF) and amending and repealing
certain Regulations (1);

conversion of areas

rural development

accordance with

for

in

(11) Whereas the specific rules applicable to each
Fund are to be set out
in the implementing
Decisions adopted pursuant to Articles 37, 148
and 162 of the Treaty;

(12) Whereas

it

is

this

that

end,

appropriate

the criteria for designating eligible
regions and areas should be specified; whereas,
to
the
identification of the priority regions and areas at
Community level
should be based on the
common system of classification of the regions,
referred to as the (cid:28)Nomenclature of Territorial
Statistical Units
(NUTS)’ established by the
Statistical Office of the European Communities
in cooperation with the national
institutes for
statistics;

apply

(13) Whereas regions whose development is lagging
behind should be defined as those whose per
capita GDP is less than 75 % of the Community
average; whereas, in order to ensure an effective
the Commission
concentration of assistance,
should
using
objective statistical data; whereas the outermost
regions and areas with a very low population
density covered by Objective 6 as set out in
Protocol 6 attached to the Act of Accession of
Austria, Finland and Sweden for the period 1995
to 1999 should also be covered by Objective 1
under this Regulation;

criterion

strictly,

this

(14) Whereas the areas undergoing economic and
social conversion should be defined as those
which include areas undergoing socio-economic
change in the industrial and service sectors,
declining rural areas, urban areas in difficulty
and depressed areas dependent on fisheries;
whereas
should be properly
concentrated on the most seriously affected parts
of the Community; whereas these areas should
be designated by the Commission acting on a
proposal from the Member States and in close
concertation with them;

this assistance

(1) OJ L 160, 26.6.1999, p. 80.

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(15) Whereas, to ensure the Community nature of the
operations of the Funds, the areas undergoing
socio-economic change in the industrial sector
and the declining rural areas should, as far as
possible, be designated on the basis of objective
indicators defined at Community level; whereas,
furthermore,
the population covered by this
priority objective taken over the Community as a
whole,
for guidance, should constitute about
10 % of the population of the Community in the
case of the industrial areas, 5 % in the case of
the rural areas, 2 % in the case of the urban
areas and 1 % in the case of the fisheries areas;
whereas, in order to ensure that each Member
State makes a fair contribution to the overall
effort
the maximum
concentration,
possible reduction in population covered by
Obejctive 2 in 2006, set out in this Regulation,
must not exceed one third compared to the
coverage under Objectives 2 and 5b in 1999, set
out in Regulation (EEC) No 2052/88;

towards

(16) Whereas,

in

of

the

interests

to Article 299(2) of

efficient
programming, the regions whose development is
lagging behind where per capita GDP is less than
75 % of the Community average should be the
same as the areas assisted by the Member States
pursuant to Article 87(3)(a) of the Treaty and,
taking account of any specific measures adopted
pursuant
that Treaty in
the outermost regions (the French
favour of
overseas departments, the Azores, Madeira and
the Canary Islands); whereas, similarly, the areas
undergoing economic and social change should
correspond to a large extent to the areas assisted
by the Member States pursuant to Article 87(3)(c)
of
the
the Treaty; whereas the objective of
Community should be to increase consistency at
the end of
the period 2000 to 2006 by an
appropriate effort by Member States with regard
to their current situation;

(17) Whereas

of

the

adapting

objective

and
modernising policies and systems of education,
training and employment is to provide financial
assistance in the regions and areas not covered
by Objective 1; whereas Objective 3 should also
ensure
to
reference
frame
provide
consistency with all operations
for human
resources in a given Member State;

of

a

(18) Whereas the ESF assistance within Objective 2
should be the regional and local actions which
respond to the specific situation in an Objective 2
coordinated with the
area and which are
interventions of
the other Structural Funds;
whereas any ESF contribution to an Objective 2
single programming document must be of
sufficient size to justify its separate management,

and should therefore not amount to less than
5 % of the total Structural Funds contribution;

(19) Whereas

the regions covered by a priority
objective in 1999 which no longer satisfy the
eligibility criteria should receive a gradually
declining level of transitional support; whereas
this support should be lower in 2000 than in
1999;

(20) Whereas there should be provision for allocating
shares of the available resources; whereas these
resources should be allocated annually, being
significantly concentrated on regions whose
development is lagging behind, including those
receiving transitional support;

from Structural

(21) Whereas total annual receipts in any Member
State
this
Regulation — in combination with assistance
provided under the Cohesion Fund — should be
limited under this general capping dependent on
the national absorption capacity;

Funds

under

the

allocations

the Commission should work out
(22) Whereas
indicative
available
of
commitment appropriations under each of the
priority objectives, basing itself on appropriate
objective criteria; whereas 4 % of appropriations
allocated in this way to the Member States
should be allocated by the Commission at the
mid-term point; whereas, in recognition of the
special efforts for the peace process in Northern
Ireland, the PEACE programme should continue
up to 2004; whereas a special programme of
assistance for the period 2000 to 2006 shall be
established for
regions
which are not covered by the list referred to in
Article 3(2) and which meet the criteria laid
down in Article 2 of Protocol 6 to the Act of
Accession for Austria, Sweden and Finland;

the Swedish NUTS-II

(23) Whereas 5,35 % of

commitment
appropriations available should be devoted to
the Community
0,65 % to
initatives
innovative schemes and to technical assistance;

total

and

the

(24) Whereas

the appropriations available to the
Structural Funds should be indexed on a flat-rate
if
for
basis
necessary,
that
indexation should be made before 31 December
2003;

programming
technical
a

purposes
adjustment

and,
to

(25) Whereas the main principles of the 1988 reform
of
should continue to
govern the Funds until 2006; whereas, however,
experience to date has demonstrated the need for

the Structural Funds

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improvements to make these principles simpler
effectiveness
and more
transparent; whereas
should
a
as
in
fundamental principle;

particular

regarded

be

(26) Whereas,

if

the Structural
the operations of
Funds are to be effective and transparent, the
responsibilities of the Member States and of the
Community should be precisely defined; whereas
those responsibilities should be specified for each
stage of programming, monitoring, evaluation
and supervision; whereas, in accordance with the
principle of subsidiarity, and without prejudice
to the powers vested in the Commission,
implementing and monitoring assistance should
be primarily the responsibility of the Member
States;

(27) Whereas the action of the Community should be
complementary to, or intended to contribute to,
the action of Member States; whereas, in order
to ensure significant added value, partnership
should be strengthened; whereas this concerns
the other
the regional and local authorities,
competent
those
responsible for the environment and for the
promotion of equality between men and women,
the economic and social partners and other
competent bodies; whereas the relevant partners
shall
preparation,
monitoring and evaluation of assistance;

authorities,

associated

including

the

be

in

from original

(28) Whereas the programming process should be laid
final
down
beneficiary, and should be facilitated in the
Member States by broad indicative guidelines
drawn up by the Commission on relevant and
agreed Community policies in relation to the
Structural Funds;

conception

to

(29) Whereas

ensure

should

programming

the
coordination of the Structural Funds with one
another and with the other existing financial
instruments
that
coordination extends to combining grants and
loans;

EIB; whereas

and

the

(30) Whereas the activities of

the Funds and the
operations which they help to finance must be
compatible with other Community policies and
comply with Community legislation, and specific
provisions should be laid down; whereas in this
field operations to disseminate and exploit the
technological
results
the
development conducted in the context of
Structural Funds must ensure the protection of
rights relating to the obtaining and exploitation
of knowledge and be carried out in accordance
with Community rules on competition;

research

and

of

(31) Whereas simpler criteria and detailed rules for
the verification and implementation of
the
principle of additionality should be laid down;

(32) Whereas the system of programming should be
simplified by fixing a uniform lifetime for
programming of seven years; whereas to that end
the forms and number of assistance schemes
should be limited and should normally consist of
a single integrated assistance for each region, by
making single programming documents the norm
for the priority objectives and by including major
projects and global grants in the other forms of
assistance;

(33) Whereas,

concerned — to ensure

in order to reinforce the integrated
approach to development, steps should be taken
— with due regard to the specific features of the
regions
consistency
between the operations of the various Funds and
the Community
for
policies,
employment, the economic and social policies of
the Member States and the regional policies of
the Member States;

strategy

the

(34) Whereas,

in order to speed up and simplify
programming procedures, the responsibilities of
the Commission should be distinguished from
those of the Member States; whereas, therefore,
provisions should be made for the Commission,
acting on a proposal from the Member States, to
adopt the strategies and development priorities
that are to govern the programming as well as
the size of the financial contribution from the
Community, and the implementing arrangements
linked to them, while the Member States are to
decide on their application; whereas the content
of the various forms of assistance should also be
specified;

(35) Whereas such decentralised implementation of
the operations of the Structural Funds by the
sufficient
Member
provide
to the details and quality of
guarantees as
implementation,
the results of operations and
their evaluation and sound financial management
and its supervision;

should

States

(36) Whereas the Commission, in association with the
EIB where appropriate, should approve major
financial volume
investment projects whose
exceeds a specified sum with a view to
evaluating their impact and the proposed use of
Community resources;

(37) Whereas there should be provision for operations
of Community interest
the
initiative of the Commission to supplement those
implemented under the priority objectives;

carried out at

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(38) Whereas

and

Section,

promoting

EAGGF Guidance

and urban neighbourhoods

these Community initiatives

should
cross-border,
on
concentrate
transnational
cooperation
and inter-regional
(Interreg), economic and social regeneration of
in crisis
cities
(URBAN), both to be financed by the ERDF,
rural development (Leader), to be financed by
the
the
development of human resources in the context
of equal opportunities (EQUAL), to be financed
by the ESF; whereas the promotion of cross-
border cooperation — in particular
in the
perspective of enlargement,
transnational and
inter-regional cooperation — takes on particular
significance
due
attention should be given to cooperation with
the outermost regions; whereas it is necessary to
reinforce
cross-border,
transnational and inter-regional cooperation with
the measures enacted in the context of Council
Regulation (EEC) No 3906/89 (1), Council
Regulation (Euratom, EC) No 1279/96 (2) and
1488/96 (3),
Council Regulation
(EC) No
the
the enlargement of
especially in view of
European Union and taking account of
the
Europe-Mediterranean partnership; whereas due
account
the social and
vocational integration of asylum seekers in the
framework of EQUAL;

should be taken of

context; whereas

coordination

this

the

of

in

(39) Whereas the Structural Funds should provide
support for studies, pilot projects and exchanges
of experience in order to promote innovative
approaches and practices through simple and
transparent implementation;

(40) Whereas,

the

in order to strengthen the leverage
effect of Community resources by favouring as
far as possible recourse to private sources of
financing and to take better account of
the
forms of
the projects,
profitability of
assistance available from the Structural Funds
should be diversified and the rates of assistance
differentiated with a view to promoting the
Community interest, encouraging the use of a
wide range of financial resources and limiting
the contribution of the Funds by encouraging the
use of appropriate forms of assistance; whereas,
to that end, reduced rates of intervention should
be established in the case of investments in forms
generate
and
substantial revenue; whereas for the purpose of
this Regulation, substantial net revenue should
be tentatively defined as revenue higher than at
least 25 % of the total cost of the investment
concerned;

projects which

infrastructure

(1) OJ L 375, 23.12.1989, p. 11 (PHARE). Regulation as
last amended by Council Regulation (EC) No 753/96 (OJ
L 103, 26.4.1996, p. 5).

(2) OJ L 165, 4.7.1996, p. 1 (TACIS).
(3) OJ L 189, 30.7.1996, p. 1 (MEDA). Regulation as last
amended by Council Regulation (EC) No 780/98 (OJ L
113, 15.4.1998, p. 2).

(41) Whereas,

dates

closing

in accordance with the principle of
subsidiarity,
the rules on eligible expenditure
should be the relevant national rules where there
are no Community rules, although they may be
laid down by the Commission where they are
clearly needed for the uniform and equitable
implementation of the Structural Funds across
the Community; whereas, however, the starting
and
of
for
expenditure should be defined and it should be
investment projects may not
stipulated that
undergo
whereas
consequently,
in order to ensure the efficiency
and durable impact of the Funds’ assistance, all
or part of the assistance from a Fund should
remain attached to an operation only where its
nature or its implementation conditions do not
undergo a substantial modification which would
result in diverting the assisted operation from its
original objectives;

modification;

eligibility

major

the

(42) Whereas the rules and procedures for making
commitments and payments should be simplified;
whereas to that end budget commitments should
be made once a year in accordance with the
multiannual financial perspective and with the
financing plan for assistance, whilst payments
should be made in the form of an advance
followed by
actual
expenditure incurred; whereas,
in accordance
with established case law, any interest earned on
the advance payment should be regarded as
resources for the Member State concerned, and
in order to strengthen the impact of the Funds, it
should be allocated to the same purpose as the
advance payment itself;

reimbursement of

the

(43) Whereas sound financial management should be
assured by providing that expenditure is to be
duly justified and certified, and by linking
essential
payments
to
of
responsibilities
programming,
the
application of Community law;

compliance with
as
to
financial

the monitoring
and

controls

(44) Whereas,

to ensure

sound management of
Community resources, improvements should be
made to the forecasting and implementing of
expenditure; whereas to that end the Member
States should regularly send the Commission
the use of Community
their
resources,
financial
in
implementation should give rise to repayment of
advances and to automatic decommitments;

forecasts of

delays

and

any

(45) Whereas,

throughout

transitional period
from 1 January 1999 to 31 December 2001, all
references to the euro should normally be read as

the

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references to the euro as a monetary unit as
referred to in the second sentence of Article 2 of
Council Regulation (EC) No 974/98 of 3 May
1998 on the introduction of the euro (1);

between the Member States and the Commission
to consider the measures taken by the Member
States and to permit the Commission to request
corrective measures where necessary;

(46) Whereas one way of ensuring that the operations
of the Structural Funds are effective is efficient
should be
monitoring; whereas monitoring
improved and responsibilities in this field better
in particular, management
defined; whereas,
functions
from
distinguished
should
monitoring functions;

be

(47) Whereas

these

there should be a single managing
each assistance, with defined
authority for
responsibilities
responsibilities; whereas
collecting data on
should primarily include
to the
this data
and reporting
outcomes
financial
sound
Commission,
ensuring
implementation,
and
organising
complying with obligations relating to publicity
and Community law; whereas accordingly there
should be provision for regular meetings between
the Commission and the managing authority to
monitor the assistance;

evaluations

(48) Whereas

it

should be

stipulated that

the
Monitoring Committees are bodies appointed by
the Member
assistance,
checking on how it is being managed by the
managing authority, ensuring compliance with its
own guidelines and implementing rules and
reviewing evaluations;

supervising

State

(49) Whereas

indicators and annual

reports on
implementation are essential for monitoring and
should be better defined so as to reflect reliably
the progress of assistance schemes and the
quality of programming;

(50) Whereas,

in order to guarantee efficient and
correct implementation, the obligations of the
Member States should be laid down with regard
the
to management and supervision systems,
certification of expenditure and the prevention,
detection and correction of irregularities and of
infringements of Community law;

(51) Whereas, without prejudice to the Commission’s
responsibilities for financial control, cooperation
between the Member States and the Commission
in this regard should be improved, in particular
consultations
through provision for

regular

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

(52) Whereas the responsibility of the Member States
for the pursuit and correction of irregularities
and infringements, and that of the Commission
where the Member States do not comply with
their obligations, should be specified;

(53) Whereas the effectiveness and impact of

the
operations of the Structural Funds also depend
on improved and more thorough evaluation;
whereas the responsibilities of the Member States
regard and
and the Commission in this
arrangements
of
the
to
evaluation should be laid down;

reliability

ensure

(54) Whereas assistance schemes should be evaluated
with a view to their preparation, mid-term
review and assessment of their impact, and the
evaluation process should be incorporated into
the monitoring of assistance; whereas to that end
the aims and content of each stage of evaluation
should be defined, and the evaluation of the
situation as regards the social and economic
situation, the environment and equality between
men and women should be improved;

(55) Whereas

of

the

part

the mid-term evaluation and the
withholding
original
of
appropriations as a reserve enable supplementary
funding to be allocated within each Member
State on a performance-related basis; whereas
such allocations should be based on objective,
simple and transparent criteria which reflect
efficiency and the quality of management and
financial execution;

(56) Whereas a report is to be presented every three
years on the progress made towards economic
and social cohesion, which should include an
analysis of the situation of the regions of the
Community and their
economic and social
development;

(57) Whereas,

in the interests of a good working
partnership and the proper promotion of
the broadest possible
Community assistance,
information and publicity about
it should be
provided; whereas the authorities responsible for
managing assistance should be responsible for
this aspect and for keeping the Commission
informed of measures taken;

(58) Whereas rules should be laid down for the
operation of the committees called upon to assist
the
this
in
Regulation;

implementing

Commission

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(59) Whereas detailed transitional provisions should
be laid down to allow preparation of new
programming immediately on entry into force of
this Regulation and to ensure that assistance to
Member States is not interrupted pending the
production of regional development plans and

assistance schemes in accordance with the new
system,

HAS ADOPTED THIS REGULATION:

TITLE I

GENERAL PRINCIPLES

Article 2

Means and tasks

CHAPTER I

OBJECTIVES AND TASKS

Article 1

Objectives

financial

Community action through the Structural Funds, the
Cohesion Fund, the European Agricultural Guidance
and Guarantee Fund (EAGGF), Guarantee Section, the
European Investment Bank (EIB) and the other
the
existing
instruments
achievement of
in
Articles 158 and 160 of the Treaty. The Structural
the EIB and the other existing financial
Funds,
instruments
in appropriate
shall
fashion to the attainment of
the following three
priority objectives:

the general objectives

each contribute

set out

support

shall

1. promoting

the

development

and

regions whose development

hereinafter

referred

structural
is
as

to

adjustment of
lagging
(cid:28)Objective 1’;

behind,

2. supporting the economic and social conversion of
facing structural difficulties, hereinafter

areas
referred to as (cid:28)Objective 2’;

hereinafter

3. supporting the adaptation and modernisation of
training and
policies and systems of education,
employment,
as
to
(cid:28)Objective 3’. This objective shall provide financial
assistance
by
Objective 1 and provide a policy frame of
reference for all measures
to promote human
resources in a national territory without prejudice
to the specific features of each region.

referred

covered

outside

regions

the

to

the

harmonious,

the Community shall
In pursuing these objectives,
and
balanced
contribute
the
sustainable development of economic activities,
development of employment and human resources, the
protection and improvement of the environment, and
the elimination of inequalities, and the promotion of
equality between men and women.

shall mean

For the purposes of this Regulation, (cid:28)Structural
1.
Funds’
Regional
the
Development Fund (ERDF), the European Social Fund
(ESF),
the European Agricultural Guidance and
Guarantee Fund (EAGGF), Guidance Section, and the
Financial Instrument for Fisheries Guidance (FIFG),
hereinafter referred to as (cid:28)the Funds’.

European

In accordance with Articles 33, 146 and 160 of
2.
the Treaty, the Funds shall contribute, each according
to the specific provisions governing its operations, to
the attainment of Objectives 1, 2 and 3, as follows:

(a) Objective 1: ERDF,

ESF,

EAGGF Guidance

Section and FIFG;

(b) Objective 2: ERDF and ESF;

(c) Objective 3: ESF.

3.
The FIFG shall contribute to structural actions in
the fisheries sector outside Objective 1 regions in
accordance with Council Regulation (EC) No 1263/
1999 of 21 June 1999 on the financial instrument for
fisheries guidance (1).

The EAGGF Guarantee Section shall contribute to the
attainment of Objective 2 in accordance with
Regulation (EC) No 1257/1999.

The

Funds

4.
financing
Community initiatives and to supporting innovative
measures and technical assistance.

contribute

shall

to

Technical assistance measures shall be carried out
within the framework of the programming defined in
the
Articles 13 to 27 or at
Commission under Article 23.

initiative of

the

(1) See page 54 of this Official Journal.

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5.
The other resources of the Community budget
which may be used to attain the Objectives referred to
in Article 1 are in particular those allocated to other
structural measures and to the Cohesion Fund.

This list shall be valid for seven years from 1 January
2000.

operations,

and
employment,

policies
in the areas of

The Commission and the Member States shall ensure
that the operations of the Funds are consistent with
in
other Community
equality
particular
between men and women, social policy and vocational
training, the common agricultural policy, the common
transport, energy and the trans-
fisheries policy,
European networks and the incorporation of
the
requirements of environmental protection into the
definition and implementation of the operations of the
Funds.

The EIB shall

the
6.
objectives set out in Article 1, in accordance with the
procedures laid down in its Statute.

in attaining

cooperate

instruments which may
The other existing financial
contribute, each according to the specific provisions
governing its operations, to attaining the Objectives
referred to in Article 1 include
the European
Investment Fund and the European Atomic Energy
Community (Euratom) (loans, guarantees), hereinafter
(cid:28)the other financial instruments’.

Article 4

Objective 2

1.
The regions covered by Objective 2 shall be
those with structural problems whose socio-economic
conversion is to be supported in accordance with
Article 1(2) and whose population or area is
sufficiently substantial. They shall include in particular
areas undergoing
in the
socio-economic
industrial and service sectors, declining rural areas,
and depressed areas
urban areas
dependent on fisheries.

in difficulty

change

is

to

that

ensure

assistance

the most appropriate geographical

The Commission and the Member States shall
2.
seek
genuinely
concentrated on the areas most seriously affected and
at
level. The
population of the areas referred to in paragraph 1
shall not exceed 18 % of the total population of the
Community. Accordingly, the Commission shall
lay
down a population ceiling for each Member State on
the basis of the following factors:

CHAPTER II

GEOGRAPHICAL ELIGIBILITY FOR THE PRIORITY
OBJECTIVES

(a) the total population in the NUTS III areas of each
Member State which meet the criteria referred to
in paragraphs 5 and 6;

Article 3

Objective 1

1.
The regions covered by Objective 1 shall be
regions corresponding to level II of the Nomenclature
of Territorial Statistical Units (NUTS level II) whose
per
capita GDP, measured in purchasing power
parities and calculated on the basis of Community
figures for the last three years available on 26 March
1999, is less than 75 % of the Community average.

(the

French

outermost

regions
the Azores,

overseas
The
departments,
the Canary Islands and
Madeira), which are all below the 75 % threshold, and
the areas eligible under Objective 6 for the period
1995 to 1999 pursuant to Protocol 6 to the Act of
Accession of Austria, Finland and Sweden shall also be
covered by this Objective.

(b) the severity of the structural problems at national
level in each Member State as compared with the
other Member States concerned. Such severity shall
be assessed on the basis of total unemployment
and long-term unemployment outside the regions
eligible under Objective 1;

as defined in this

(c) the need to ensure that each Member State makes
a fair contribution to the overall concentration
effort
the
maximum reduction in the population covered by
Objective 2 shall not exceed one third compared to
the population covered by Objectives 2 and 5b as
set out in Regulation (EEC) No 2052/88, in 1999.

subparagraph;

The Commission shall provide the Member States
with all the information it has available about the
criteria set out in paragraphs 5 and 6.

2.
The Commission shall draw up the list of regions
covered by Objective 1 strictly in accordance with the
first subparagraph of paragraph 1, without prejudice
to Article 6(1) and Article 7(4), second subparagraph.

3.
Subject to the ceilings referred to in paragraph 2,
the Member States shall propose to the Commission a
list of significant areas representing:

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(a) the NUTS level III regions, or the most seriously
affected areas within those regions, which satisfy
either the criteria set out in paragraph 5 or those
set out in paragraph 6;

(b) either an average unemployment rate over the last
three years above the Community average, or a
decline in population since 1985.

(b) the areas satisfying the criteria referred to in
paragraph 7 or paragraph 8 or Member States’
specific criteria referred to in paragraph 9.

The Member States shall provide the statistics and
other
appropriate
geographical level, which the Commission requires to
evaluate these proposals.

information,

the most

at

7.
The urban areas referred to in paragraph 1 shall
mean densely populated areas which also meet at least
one of the following criteria:

(a) a rate of long-term unemployment higher than the

Community average;

(b) a high level of poverty,

including precarious

housing conditions;

4. On the basis of the information referred to in
paragraph 3, the Commission,
in close concertation
with the Member State concerned, shall draw up the
list of areas eligible under Objective 2 with due regard
to national priorities, without prejudice to Article 6(2).

(c) a particularly damaged environment;

(d) a high crime and delinquency rate;

(e) a low level of education among the population.

The areas meeting the criteria in paragraphs 5 and 6
must contain at least 50 % of the population covered
by Objective 2 in each Member State, except where
duly justified by objective circumstances.

The areas undergoing socio-economic change
5.
referred to in paragraph 1 shall represent or belong to
a NUTS level III territorial unit which satisfies the
following criteria:

(a) an average rate of unemployment over the last

three years above the Community average;

(b) a percentage share of industrial employment in
total employment equal
to or greater than the
Community average in any reference year from
1985 onwards;

(c) an observable

fall
compared with the
accordance with (b).

in industrial
reference year

employment
chosen in

6.
The rural areas referred to in paragraph 1 must
represent or belong to a NUTS level III territorial unit
which satisfies the following criteria:

(a) either a population density of less than 100 people
per km2, or a percentage share of agricultural
employment in total employment which is equal
to, or higher than, twice the Community average
in any reference year from 1985;

jobs

in the

8.
The areas dependent on fisheries referred to in
paragraph 1 shall mean coastal areas in which the
industry as a
number of
percentage of
is significant and
which are facing structural socio-economic problems
relating to the restructuring of
the fisheries sector
which result in a significant reduction in the number
of jobs in that sector.

total employment

fisheries

Community assistance may extend to areas
9.
whose population or area is significant which fall into
one of the following categories:

(a) areas meeting the criteria set out in paragraph 5
which are adjacent to an industrial area, areas
meeting the criteria set out in paragraph 6 which
are adjacent to a rural area, areas which meet
either the criteria set out in paragraph 5 or those
set out in paragraph 6 which are adjacent to a
region covered by Objective 1;

(b) rural areas with socio-economic problems arising
either from the ageing or decline of the agricultural
working population;

(c) areas facing or threatened by serious structural
problems on account of
verifiable
characteristics, or a high level of unemployment
arising from an ongoing or planned restructuring
of one or more activities
in the agricultural,
industrial or service sector.

relevant,

Any one area may be eligible for assistance

10.
under only one of Objectives 1 or 2.

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The list of areas shall be valid for seven years

11.
from 1 January 2000.

receive support from the ERDF, from 1 January 2000
to 31 December 2005, under Objective 2 pursuant to
this Regulation, on a transitional basis.

in a region,

the
Where there is a serious crisis
Commission, acting on a proposal from a Member
State, may amend the list of areas during 2003 in
accordance with paragraphs 1 to 10 without
increasing the proportion of the population within
each region referred to in Article 13(2).

Article 5

Objective 3

The areas eligible for financing under Objective 3 shall
be those not covered by Objective 1.

Article 6

Transitional support

1. Notwithstanding Article 3, the regions covered
by Objective 1 in 1999 pursuant to Regulation (EEC)
No 2052/88 which are not referred to in the second
subparagraph of Article 3(1)
this
Regulation shall continue to receive support from the
Funds under Objective 1 on a transitional basis from
1 January 2000 to 31 December 2005.

and (2) of

At the time of adoption of the list referred to in
Article 3(2),
the Commission shall draw up in
accordance with Article 4(5) and (6) the list of the
NUTS level III areas belonging to those regions which
from the Funds under
support
are
Objective 1 on a transitional basis in 2006.

to receive

However, within the limit of the population of the
areas referred to in the second subparagraph and in
conformity with the provisions of Article 4(4), second
subparagraph, the Commission may on a proposal
from a Member State, substitute these areas by areas
at or smaller than NUTS level III belonging to those
regions which satisfy the criteria of Article 4(5) to (9).

The areas of the regions not on the list referred to in
the second and third subparagraphs shall continue to
receive support in 2006 from the ESF, FIFG and the
EAGGF Guidance Section only, within the same form
of assistance.

2. Notwithstanding Article 4, the regions covered
by Objectives 2 and 5(b)
to
Regulation (EEC) No 2052/88 which are not on the
list referred to in Article 4(4) of this Regulation shall

in 1999 pursuant

Such areas shall receive support from 1 January 2000
to 31 December 2006 from the ESF under Objective 3
on the same basis as Objective 3 areas, the EAGGF
Guarantee
to rural
development and from the FIFG under its structural
measures in the fisheries sector outside of Objective 1.

Section under

support

its

CHAPTER III

FINANCIAL PROVISIONS

Article 7

Resources and concentration

1.
The resources available for commitment from the
Funds for the period 2000 to 2006 shall be EUR 195
billion at 1999 prices.

The annual breakdown of those resources is shown in
the Annex.

2.
The breakdown of budgetary resources between
objectives shall be such as to achieve a significant
concentration on Objective 1 regions.

69,7 % of the Structural Funds will be allocated to
Objective 1, including 4,3 % for transitional support
(i.e. a total of EUR 135,9 billion).

11,5 % of the Structural Funds will be allocated to
Objective 2, including 1,4 % for transitional support
(i.e. a total of EUR 22,5 billion).

12,3 % of the Structural Funds will be allocated to
Objective 3 (i.e. a total of EUR 24,05 billion).

The figures stated for Objectives 1, 2 and 3 do not
include
in
paragraph 6 nor
the financing for FIFG outside
Objective 1.

resources

financial

referred

the

to

3.
Using transparent procedures, the Commission
shall make indicative breakdowns by Member State of
the
the commitment appropriations available for
programming referred to in Articles 13 to 19, taking
full account, for Objectives 1 and 2, of one or more
covered by
objective
eligible
Regulation (EEC) No 2052/88, namely:

to those

criteria

similar

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population, regional prosperity, national prosperity
and the relative severity of the structural problems,
especially the level of unemployment.

For Objective 3, the breakdown by Member State
shall be based principally on the eligible population,
the employment situation and the severity of
the
problems, such as social exclusion, education and
training levels, and participation of women in the
labour market.

these breakdowns

shall
For Objectives 1 and 2,
distinguish allocations of appropriations to regions
and areas benefiting from transitional support. These
allocations shall be determined in accordance with the
criteria referred to in the first subparagraph. The
annual breakdown of these appropriations shall be
degressive from 1 January 2000 and shall be lower in
2000 than in 1999. The profile of transitional support
may be tailored to the specific needs of individual
regions, in agreement with the Commission, provided
the financial allocation for each region is respected.

Using transparent procedures, the Commission shall
also make indicative breakdowns by Member State of
the commitment appropriations available for
the
structural actions
sector outside
in the
Objective 1 regions, as referred to in Article 2(3), first
subparagraph.

fisheries

4.
Under Objective 1, a PEACE programme in
support of the peace process in Northern Ireland shall
be established for the years 2000 to 2004 for the
benefit of Northern Ireland and the border areas of
Ireland.

Under Objective 1, a special programme of assistance
for the period 2000 to 2006 shall be established for
the Swedish NUTS-II regions which are not covered by
the list referred to in Article 3(2) and which meet the
criteria laid down in Article 2 of Protocol 6 to the Act
of Accession for Austria, Sweden and Finland.

4 % of commitment appropriations under each
5.
in
breakdown
national
paragraph 3 shall be allocated in accordance with
Article 44.

indicative

referred

to

For

the purpose of

their programming and
7.
the
subsequent
European Communities,
referred to in
paragraph 1 shall be indexed as from 1 January 2000
at 2 % per year.

inclusion in the general budget of
the sums

Indexation of the allocations for 2004 to 2006 shall be
reviewed, if necessary, by 31 December 2003 at the
latest for technical adjustment by the Commission on
the basis of the latest economic information available.
The difference relative to the initial programming shall
be reallocated for inclusion in the sum referred to in
paragraph 5.

8.
Total annual receipts in any Member State from
the Structural Funds pursuant to this Regulation — in
the
combination with assistance provided under
Cohesion Fund — should not exceed 4 % of national
GDP.

CHAPTER IV

ORGANISATION

Article 8

Complementarity and partnership

shall

actions

Community

complement

1.
or
contribute to corresponding national operations. They
shall be drawn up in close consultation, hereinafter
referred
the
Commission and the Member State, together with the
authorities and bodies designated by the Member State
within the framework of its national rules and current
practices, namely:

(cid:28)partnership’,

between

the

to

as

— the

regional and local authorities and other

competent public authorities,

— the economic and social partners,

— any other relevant competent bodies within this

framework.

6.
For the period referred to in paragraph 1, 5,35 %
of the commitment appropriations for the Structural
Funds referred to in paragraph 1 shall be devoted to
funding the Community initiatives.

The partnership shall be conducted in full compliance
with the respective institutional,
legal and financial
powers of each of the partners as defined in the first
subparagraph.

0,65 % of the appropriations referred to in paragraph 1
shall be devoted to funding innovative measures and
technical assistance as defined in Articles 22 and 23.

In designating the most representative partnership at
national, regional, local or other level, the Member
State shall create a wide and effective association of
all the relevant bodies, according to national rules and

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taking account of

practice,
the need to promote
equality between men and women and sustainable
development through the integration of environmental
protection and improvement requirements.

All the designated parties, hereinafter referred to as
the (cid:28)partners’, shall be partners pursuing a common
goal.

the

shall

cover

Partnership

2.
preparation,
financing, monitoring and evaluation of assistance.
Member States shall ensure the association of
the
of
stages
the
relevant
programming, taking account of the time limit for
each stage.

different

partners

at

In application of the principle of subsidiarity, the
3.
implementation of assistance shall be the responsibility
of the Member States, at the appropriate territorial
level according to the arrangements specific to each
Member State, and without prejudice to the powers
vested in the Commission, notably for implementing
the general budget of the European Communities.

States

the
shall
4. Member
Commission to ensure that Community Funds are
used in accordance with the principles of
sound
financial management.

cooperate with

Each year,

5.
the
European-level organisations representing the social
partners about the structural policy of the Community.

the Commission shall consult

Article 9

Definitions

For the purposes of this Regulation:

(a) programming: means

the organising, decision-
making and financing process carried out
in a
number of stages to implement on a multiannual
basis the joint action of the Community and the
Member States to attain the Objectives referred to
in Article 1;

(b) development plan (hereinafter referred to as (cid:28)the
plan’: means the analysis of the situation prepared
by a Member State in the light of the objectives
referred to in Article 1 and the priority needs for
attaining
together with the
strategy, the planned action priorities, their specific
goals and the related indicative financial resources;

those objectives,

(c) Objective 3 policy frame of reference: means a
document which sets the context for assistance

and

employment
throughout

concerning
development
Member
and which
relationship with the priorities
National Action Plan for Employment;

human-resource
the territory of each
the
in the

identifies
set out

State,

the Commission,

framework: means

support
approved by

the
(d) Community
document
in
agreement with the Member State concerned,
following appraisal of the plan submitted by a
Member State and containing the strategy and
priorities for action of the Funds and the Member
State, their specific objectives, the contribution of
the Funds and the other financial resources. This
document
shall be divided into priorities and
implemented by means of one or more operational
programmes;

(e) assistance: means the forms of assistance provided

by the Funds, i.e.:

(i) operational

programmes

or

single

programming documents;

(ii) Community initiative programmes;

(iii) support for technical assistance and innovative

measures;

(f) operational programme: means

the document
approved by the Commission to implement a
Community support framework and comprising a
consistent set of priorities comprising multiannual
measures and which may be implemented through
recourse to one or more Funds, to one or more of
the other existing financial instruments and to the
EIB. An integrated operational programme means
an operational programme financed by more than
one Fund;

(g) single programming document: means a single
document approved by the Commission and
containing the same information to be found in a
Community support framework and operational
programme;

(h) priority: means one of the priorities of the strategy
adopted in a Community support framework or
assistance; to it is assigned a contribution from the
Funds and other financial
instruments and the
relevant financial resources of the Member State
and a set of specified targets;

(i) global grant: means that part of assistance the
implementation and management of which may be
entrusted to one or more approved intermediaries
in accordance with Article 27(1), including local

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authorities, regional development bodies or non-
governmental organisations, used preferably to
assist local development initiatives. The decision to
employ a global grant shall be taken in agreement
with the Commission by the Member State or, in
agreement with the Member
the
managing authority.

State, by

In the case of Community initiative programmes
and innovative measures,
the Commission may
decide to employ a global grant for all or part of
the
case of Community
initiatives, this decision may only be taken with
the prior
States
concerned.

agreement of

the Member

assistance.

In the

(j) measure: means the means by which a priority is
several years which enable
implemented over
operations
financed. Any aid scheme
to be
pursuant to Article 87 of the Treaty or any aid
granted by bodies designated by the Member
States, or any group of aid schemes or aid grants
of this type or any combination thereof which have
the same purpose and are defined as a measure;

(k) operation: means any project or action carried out

by the final beneficiaries of assistance;

firms

(l) final beneficiaries: means the bodies and public or
private
commissioning
responsible
operations. In the case of aid schemes pursuant to
Article 87 of the Treaty and in the case of aid
granted by bodies designated by the Member
States, the final beneficiaries are the bodies which
grant the aid;

for

(m)programme

complement: means

the document
implementing the assistance strategy and priorities
and containing detailed elements at measure level,
as set out
in Article 18(3), drawn up by the
Member State or managing authority and revised
as necessary in accordance with Article 34(3). It is
sent to the Commission for information;

(n) managing authority: means any public or private
authority or body at national, regional or local
level designated by the Member State, or the
Member State when it is itself carrying out this
function, to manage assistance for the purposes of
this Regulation. If the Member State designates a
shall
managing authority other
determine all the modalities of its relationship with
the managing
latter’s
relationship with the Commission. If the Member
State so decides, the managing authority may be

than itself,

authority

and of

the

it

the same body as the paying authority for the
assistance concerned;

o) paying authority: means one or more national,
regional or local authorities or bodies designated
by the Member States for the purposes of drawing
up and submitting payment applications and
receiving payments from the Commission. The
Member State shall determine all the modalities of
its relationship with the paying authority and of
the latter’s relationship with the Commission.

Article 10

Coordination

Coordination between the various Funds shall be

1.
carried out in particular through:

(a) the plans, the Community support frameworks, the
single
operational
programming documents (as defined in Article 9)
including the frame of reference where relevant in
accordance with Article 9(1)(c);

programmes

and

the

(b) the monitoring and evaluation of assistance under

an Objective;

(c) the guidelines referred to in paragraph 3.

2.
The Commission and Member State shall, in a
manner consistent with the principle of partnership,
ensure coordination of assistance from the different
Funds between the Funds and with assistance from the
EIB and other existing financial instruments.

instruments,

the Community

In order to maximise the stimulus provided by the
budget resources deployed, making use of appropriate
financial
assistance
provided in the form of grants may be combined in an
appropriate way with loans and guarantees. This
combination may be determined in conjunction with
the EIB when the Community support framework or
single programming document is being drawn up. It
may take account of the balance in the proposed
financing plan, the contribution from the Funds and
the development goals pursued.

3. No later than one month from the entry into
force of this Regulation and subsequently before the
mid-term review referred to in Article 42, and on each
the
occasion after consulting all Member States,

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Commission shall publish broad, indicative guidelines
on relevant and agreed Community policies in relation
to the objectives referred to in Article 1, to help the
competent national and regional authorities to draw
up development plans and to carry out any revision of
the assistance. This guidance shall be published in the
Official Journal of the European Communities.

Account shall also be taken of any reduction in
Structural Fund expenditure when compared to the
period 1994 to 1999.

3.
Additionality shall be verified at the territorial
level set out in paragraph 2 at three points during the
programming period:

Article 11

Additionality

(a) an ex-ante verification as described in the third
subparagraph of paragraph 2, to provide a frame
of reference for the whole programming period;

In order to achieve a genuine economic impact,
1.
the appropriations of
the Funds may not replace
public or other equivalent structural expenditure by
the Member State.

For

this purpose,

2.
the Commission and the
Member State concerned shall determine the level of
public or equivalent structural expenditure that the
Member State is to maintain in the sum of its regions
covered by Objective 1 during the programming
period.

3

2

and

taken

together,

For Objectives
the
Commission and the Member State concerned shall
determine the level of expenditure on the active
labour-market policy and, where
justified, other
actions designed to make it possible to achieve the
goals of those two Objectives which the Member State
is
the
at
to maintain
programming period.

national

during

level

Such expenditure shall be determined by the Member
State and the Commission,
the
provisions of the fourth subparagraph, in advance of
the Commission decision approving any Community
support framework or single programming documents
relating to the Member State concerned and shall be
integrated into those documents.

taking account of

As a general rule, the level of expenditure referred to
in the first and second subparagraphs shall be at least
equal to the amount of average annual expenditure in
real
terms achieved in the previous programming
period and shall be determined in the light of the
general macroeconomic circumstances in which the
funding takes place, although account should be taken
situations, namely
economic
of
privatisations, an exceptional level of public structural
effort or equivalent effort on the part of the Member
State during the previous programming period and
national economic trends.

certain specific

of

approval

the Community

(b) a mid-term verification no later than three years
after
support
framework or the single programming documents
and as a general rule no later than 31 December
2003, following which the Commission and the
Member State may agree to revise the level of
structural
the
economic situation has resulted in developments in
public revenue or employment
in the Member
State concerned significantly different from those
expected at the time of the ex-ante verification;

to be attained if

expenditure

(c) a verification by 31 December 2005.

the Member State shall provide the
To that end,
Commission with appropriate information at the time
when the plans are submitted and when the mid-term
verification and the verification before 31 December
2005 are made. Where necessary, methods of
statistical estimation shall be used.

Independently of these verifications, the Member State
shall inform the Commission at any point during the
programming period of developments likely to call
into question its ability to maintain the level of
expenditure referred to in paragraph 2.

Article 12

Compatibility

receiving
financed by the Funds or
Operations
assistance from the EIB or from another financial
instrument shall be in conformity with the provisions
of the Treaty, with instruments adopted under it and
with Community policies and actions,
including the
rules on competition, on the award of public
contracts,
and
environmental
improvement and on the elimination of inequalities
and the promotion of equality between men and
women.

protection

on

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TITLE II

PROGRAMMING

CHAPTER I

document shall cover a period of seven years, without
prejudice
first
subparagraph.

to Article 6 and Article 7(4),

GENERAL PROVISIONS CONCERNING
OBJECTIVES 1, 2 AND 3

The programming period shall begin on 1 January
2000.

Article 13

Geographical coverage

Plans

submitted under Objective 1 shall be
1.
drawn up at the geographical
level deemed by the
Member State concerned to be most appropriate but
shall, as a general rule, cover a single region at NUTS
II. However, Member States may submit a
level
general development plan covering some or all of their
regions included in the list referred to in Article 3(2),
Article 6(1) and Article 7(4), provided that such plan
contains the features listed in Article 16.

Plans

submitted under Objective 2 shall be
2.
drawn up at the geographical
level deemed by the
Member State concerned to be most appropriate, but
shall as a general rule comprise all the areas covered
by a single NUTS level II region, included in the list
referred to in Article 4(4) and Article 6(2). However,
the Member States may submit a plan covering certain
or all of their regions included in the list referred to in
Article 4(4) and in Article 6(2), provided that such
plan contains the features listed in Article 16. Where
plans cover regions other than those eligible under
Objective 2, they shall distinguish between operations
in regions or areas covered by Objective 2 and
operations elsewhere.

Community support

2.
frameworks, operational
programmes and single programming documents shall
be re-examined and,
the
initiative of the Member State or the Commission in
agreement with the Member State, in accordance with
this Title following the mid-term evaluation referred to
in Article 42 and the allocation of the performance
reserve referred to in Article 44.

if necessary, adapted at

They may also be revised in the event of significant
changes in the socio-economic situation and the labour
market.

Article 15

Preparation and approval

1.
In respect of Objectives 1, 2 and 3, Member
States shall submit a plan to the Commission. That
plan shall be drawn up by the competent authorities
designated by the Member State at national, regional
and other level. In cases where assistance is to take the
form of a single programming document, the plan
shall be dealt with as a draft single programming
document.

Plans submitted under Objective 3 shall cover the
3.
territory of a Member State in respect of assistance
outside the regions covered by Objective 1 and, taking
into account
facing
structural problems of
socio-economic conversion,
shall provide, for the whole of the national territory, a
framework
human
resources.

the general needs of areas

developing

reference

for

of

Article 14

Duration and revision

Each plan, Community support

1.
operational programme

framework,
and single programming

In respect of Objective 1, Community support
frameworks shall be employed for all regions covered
by Objective 1; however, where the Community
allocation is less than or does not substantially exceed
EUR 1 000 million, the Member States shall, as a
single programming
general
document.

submit a draft

rule,

In respect of Objectives 2 and 3, single programming
rule be employed;
documents
however, Member States may elect
to have a
Community support framework drawn up.

shall as a general

The plans shall be submitted by the Member
2.
State to the Commission after consultation with the
partners, who shall express their views within a period
of time consistent with the deadline set in the second
subparagraph.

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Unless otherwise agreed with the Member State
concerned, plans shall be submitted not later than four
months after the list of eligible regions referred to in
Article 3(2) and Article 4(4) have been drawn up.

3.
The Commission shall appraise these plans to
determine whether they are consistent with the aims of
this Regulation, taking account of the framework of
reference
other
in Article
Community policies and Article 41(2).

referred

9(1)(c),

to

The Commission shall also appraise each Objective 3
plan proposed in the light of the consistency of the
measures
envisaged with the national plan for
implementing the European employment strategy in
accordance with Article 16(1)(b) and having regard to
the manner in which and the degree to which the
general needs of areas facing structural problems of
socio-economic conversion are taken into account.

4. Where applicable as provided in paragraph 1, the
Commission shall draw up the Community support
frameworks in agreement with the Member State
concerned and following the procedures laid down in
Articles 48 to 51. The EIB may be involved in the
preparation of the Community support frameworks.
take a decision on the
The Commission shall
contribution from the Funds not
than five
later
months after receiving the relevant plan or plans
listed in
provided they contain all
Article 16.

features

the

the

shall

appraise

proposed
The Commission
operational programmes submitted by the Member
State to determine whether they are consistent with
the aims of the corresponding Community support
framework and compatible with other Community
policies. It shall adopt a decision on the contribution
of the Funds in accordance with Article 28(1) and in
agreement with the Member State concerned, provided
that the proposals contain all the features listed in
Article 18(2).

In order to expedite the examination of applications
and the implementation of programmes, the Member
States may submit, at the same time as their plans,
draft operational programmes. When adopting its
framework,
decision on a Community support
the
Commission shall also approve,
in accordance with
Article 28(1), the operational programmes submitted
at the same time as the plans provided they include all
the features listed in Article 18(2).

51. The EIB may be involved in the preparation of the
single programming documents. The Commission shall
take a single decision on the single programming
document and the contribution of the Funds pursuant
to Article 28(1) not later than five months after having
received the relevant plan, provided that it contains all
the features listed in Article 19(3).

The Member State or the managing authority
6.
shall adopt the programme complement defined in
Article 9(m) after the agreement of the Monitoring
Committee if the programme complement is drawn up
after the Commission decision on the contribution of
the Funds, or after consulting the relevant partners if
it is drawn up before the decision on the contribution
of
the Monitoring
In the latter case,
Committee
confirm the programme
complement or request an adjustment in accordance
with Article 34(3).

the Funds.

either

shall

an operational programme or

Within three months of
the Commission decision
single
approving
programming document, the Member State shall send
the programme complement to the Commission in a
single document for information.

7.
The Commission decisions on a Community
support framework or single programming document
the
shall be published in the Official Journal of
the
request of
European Communities. At
European Parliament, the Commission shall transmit
these decisions and the
to it,
for
Community
single
framework
programming documents it has approved.

information,
support

and

the

CHAPTER II

CONTENT OF THE PROGRAMMING FOR
OBJECTIVES 1, 2 AND 3

Article 16

Plans

1.
The plans submitted under Objectives 1, 2 and 3
shall be based on appropriate national and regional
the indicative
priorities and shall
guidance referred to in Article 10(3) and shall include:

take account of

5. Where applicable as provided in paragraph 1 on
the basis of the plans, the Commission shall take a
decision on the single programming documents in
agreement with
concerned,
the Member
following the procedures laid down in Articles 48 to

State

(a) a description, quantified where it lends itself to
quantification, of the current situation either with
regard to disparities, gaps and potential
for
development in the regions covered by Objective 1,
or in terms of conversion in the areas covered by
Objective 2, or in terms of developing human

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resources and employment policy in the Member
State and the areas covered by Objective 3; also, a
description of the financial resources deployed and
the main results of operations undertaken in the
previous programming period with regard to the
evaluation results available;

(b) a description of an appropriate strategy to attain
the objectives referred to in Article 1 and the
priorities selected for the sustainable development
and conversion of regions and areas,
including
rural areas, and the related development of human
resources and the adaptation and modernisation of
policies and systems for education, training and
employment.

shall

States

demonstrate

In addition to the other items listed in this point,
Member
each
Objective 3 plan that the priorities planned are
consistent with the prevailing national employment
plan, by reference to a description of the main
aims of
the strategy and the main means of
attaining them.

in

Similarly, Member States shall demonstrate that
the activities provided for in each Objective 2 plan
on human resources and employment to be assisted
by the ESF are integrated into the conversion
strategy, coordinated with the other Funds and
consistent with the ex-ante evaluation relating to
human resources and employment as referred to in
Article 41(2). If these needs do not amount to a
significant
by
Objective 3;

covered

sum,

shall

they

be

the EIB and the other

(c) an indication of the planned use and form of the
financial contribution from the Funds and, where
appropriate,
financial
instruments including, for information, the total
amount from the EAGGF Guarantee Section for
referred to in Article 33 of
the measures
Regulation (EC) No 1257/1999;
the expected
requirement for technical assistance; an indication
as
in accordance with
Article 11(2), whereby for Objective 1 this should
take the form of an indicative overall financing
table summarising the public or equivalent and,
where appropriate, estimated private resources and
resources allocated
the Community structural
corresponding to each priority proposed in the
plan.

additionality

regards

In any case, the plans shall distinguish between the
financial envelopes allocated to areas receiving
transitional support and those allocated to other
areas covered by Objective 1 or 2.

In the case of ESF assistance under Objective 2 or
3, the percentage contribution may be higher in
Objective 2 areas than in others.

In the case of Objective 3, this financing plan
shows the concentration of appropriations planned
for
facing structural problems of
economic and social conversion;

areas

the

(d) an account of arrangements made to consult

partners.

2.
For regions covered by Objective 1, the plans
shall include all relevant measures for economic and
social
human
resources, having regard to the frame of reference
referred to in Article 9(1)(c), and rural development
and fisheries structures.

development

conversion,

the

of

Where a Member State is covered in its entirety by
Objective 1, the plan shall cover the points in the
second subparagraph of paragraph (1)(b).

shall

indicate the particulars
3. Member States
relating to each Fund,
including the amount of the
financial contribution requested and an outline of the
operational programmes planned with particular
regard to their specific aims and the main types of
actions planned.

Article 17

Community support frameworks

support

The Community

1.
shall
provide coordination of all Community structural
in
assistance in the regions concerned,
accordance with Article 1(3), assistance
the
development of human resources.

framework

including,

for

Each Community

2.
include:

support

framework shall

their

evaluation of

(a) a statement of the strategy and priorities for joint
Community and national action;
specific
objectives, quantified where they lend themselves
to quantification;
expected
impact
in accordance with Article 41(2); an
indication of how this strategy and these priorities
have taken account of
the indicative guidance
referred to in Article 10(3), the economic policies,
the strategy for developing employment through
improving the adaptability and skills of people
and, where appropriate, the regional policies of the
Member State concerned;

the

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(b) an indication of the nature and the duration of the
operational programmes not decided at the same
time as
framework,
including their specific aims and the priorities
selected;

the Community support

Article 18

Operational programmes

(c) an

the

the

EIB,

plan

financing

indicative

specifying,

in
accordance with Articles 28 and 29,
for each
the financial allocation
priority and each year,
envisaged for the contribution of each Fund, where
appropriate
financial
instruments — including, for information, the total
amount from the EAGGF Guarantee Section for
the measures
referred to in Article 33 of
Regulation (EC) No 1257/1999 — where they
contribute directly to the financing plan concerned
and the total amount of eligible public and
the
funding
estimated
contribution of each Fund.

relating

private

other

to

In the case of Objective 3, that financing plan shall
show the concentration of appropriations planned
for
facing structural problems of
economic and social conversion.

the areas

This financing plan shall distinguish the funding
planned for
receiving transitional
support.

regions

the

The total contribution of the Funds planned for
each year for each Community support framework
shall be compatible with the relevant
financial
the degressivity
perspective,
of
to
referred
Article 7(3);

taking account of

subparagraph

third

the

in

(d) the provisions

for implementing a Community

support framework including:

— designation by

the Member

a
managing authority within the meaning of
responsible for managing the
Article 9(n)
Community support framework in accordance
with Article 34,

State of

— arrangements for involving the partners in the
Monitoring Committees described in Article 35;

(e) where

appropriate,

the
appropriations required for preparing, monitoring
and evaluating assistance.

information

on

In accordance with Article 11, the Community support
include the ex-ante verification of
frameworks shall
information
additionality
and
concerning the transparency of
in
flows,
particular from the Member State concerned to the
beneficiary regions.

appropriate

financial

the

1.
Assistance covered by a Community support
framework shall as a general rule be provided in the
form of an integrated operational programme by
region, as defined in Article 9.

2.

Each operational programme shall contain:

(a) the priorities of the programme, their consistency
with the relevant Community support framework,
their specific targets, quantified where they lend
themselves to quantification, and an evaluation of
accordance with
impact
the
Article 41(2);

expected,

in

(b) a summary description of the measures planned to
implement the priorities, including the information
needed to check compliance with aid schemes
pursuant
the Treaty; where
appropriate, the nature of the measures required to
prepare, monitor and evaluate the operational
programme;

to Article 87 of

the

and each year,

(c) an indicative financing plan specifying for each
in accordance with
priority
Articles 28 and 29,
financial allocation
envisaged for the contribution of each Fund, the
EIB where appropriate, and the other financial
instruments — including, for information, the total
amount from the EAGGF Guarantee Section for
the measures
referred to in Article 33 of
Regulation (EC) No 1257/1999 — in so far as they
contribute directly to the financing plan, as well as
the total amount of eligible public and estimated
private funding relating to the contribution of each
Fund.

This financing plan shall distinguish in the total
the various Funds the funding
contribution of
planned for
receiving transitional
support.

regions

the

The total contribution of the Funds planned for
each year shall be compatible with the relevant
financial perspective,
the
degressivity referred to in the third subparagraph
of Article 7(3);

account of

taking

(d) the provisions for implementing an operational

programme shall include:

(i) designation by

a
managing authority within the meaning of
responsible for managing the
Article 9(n)

the Member

State of

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operational programme in accordance with
Article 34;

(ii) a

description

of
managing the operational programme;

arrangements

the

for

(iii) a description of the systems for monitoring
the

including the role of

and evaluation,
Monitoring Committee;

(iv) a definition of the procedures concerning the
mobilisation and circulation of financial flows
to ensure their transparency;

(v) a description of the specific arrangements and
procedures for checking on the operational
programme.

3.

The programme complement shall contain:

(a) the measures

corresponding
implementing the
priorities in the operational programme; ex-ante
evaluation,
in accordance with Article 41(3), of
quantified measures, where they lend themselves to
quantification; the relevant monitoring indicators
in accordance with Article 36;

(b) the definition of the types of final beneficiary of

measures;

(c) the financing plan specifying for each measure, in
accordance with Articles 28 and 29, the financial
allocation envisaged for the contribution of the
Fund concerned, the EIB where appropriate, and
the other existing financial
instruments and the
amount of eligible public or equivalent funding
and estimated private funding relating to the
contribution
percentage
contribution of a Fund to a measure shall be
determined in accordance with Article 29 and the
total amount of Community funds allocated to the
priority concerned.

Funds;

the

the

of

This financing plan shall distinguish the funding
planned for
receiving transitional
support.

regions

the

The financing plan shall be accompanied by a
description of the arrangements for providing the
co-financing for measures, taking account of the
institutional,
the
Member State concerned;

legal and financial systems of

(d) measures

intended to publicise the operational

programme in accordance with Article 46;

(e) a description of arrangements agreed between the
Commission and the Member State concerned for
the computerised exchange, where possible, of
the management,
the data required to fulfil
this
monitoring and evaluation requirements of
Regulation.

Article 19

Single programming documents

1.
Assistance under Objectives 2 and 3, and under
Objective 1 as specified in Article 15(1), shall, as a
general rule, take the form of single programming
documents.
In the case of Objectives 2 and 3,
Article 15(1)(c) shall apply.

An Objective 1 single programming document
2.
shall include all relevant measures for economic and
social conversion,
the development of employment
through improving adaptability and skills of people,
having regard to the frame of reference referred to in
Article 9(1)(c) and rural development and fisheries
structures.

An Objective 2 single programming document shall
provide coordination of all Community structural
assistance including, in accordance with Article 41(2)
of Regulation (EC) No 1257/1999, the coordination of
rural development measures pursuant to Article 33 of
for
that Regulation,
developing human resources granted under Objective 3,
in all the areas covered by Objective 2.

assistance

excluding

but

An Objective 3 single programming document shall
provide coordination of all Community structural
assistance for the development of human resources in
the areas referred to in Article 5, excluding aid in this
area granted under Objective 2.

Each single programming document shall contain

3.
the following elements:

their

(a) a statement of the strategy and priorities for joint
specific
Community and national action;
objectives, quantified where they lend themselves
to quantification; an evaluation of the expected
impact, including on the environmental situation,
in accordance with Article 41(2); an indication of
how this strategy and these priorities have taken
account of the indicative guidelines referred to in
Article 10(3), the economic policies, the strategy
for developing employment through improving the
adaptability and skills of people and, where

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appropriate, the regional policies of the Member
State concerned;

(iv) a definition of the procedures concerning the
funding to

mobilisation and circulation of
ensure that flows are transparent;

(b) a summary description of the measures planned to
implement the priorities, including the information
needed to check the compliance with aid schemes
pursuant
the Treaty; where
appropriate, the nature of the measures required to
prepare, monitor
single
and
programming document;

to Article 87 of

evaluate

the

the

and each year,

(c) an indicative financing plan specifying for each
in accordance with
priority
Articles 28 and 29,
financial allocation
envisaged for the contribution of each Fund, the
EIB where appropriate, and the other financial
instruments — including, for information, the total
amount from the EAGGF Guarantee Section for
the measures
referred to in Article 33 of
Regulation (EC) No 1257/1999 — in so far as they
contribute directly to the financing plan, as well as
the total amount of eligible public or equivalent
and estimated private funding relating to the
contribution of each Fund.

This financing plan shall distinguish the funding
planned for
receiving transitional
support.

regions

the

The total contribution of the Funds planned for
each year shall be compatible with the relevant
financial perspective,
the
degressivity referred to in the third subparagraph
of Article 7(3).

account of

taking

In the case of Objective 3, the financing plan shall
indicate
appropriations
planned for the areas facing structural, economic
and social reconversion problems;

concentration

the

of

(d) the

provisions

implementing
programming document shall include:

for

a

single

(i)

the designation by the Member State of a
managing authority within the meaning of
Article 9 responsible for managing the single
programming document
in accordance with
Article 34;

(ii) a

description

of

the

arrangements

for

managing the single programming document;

(iii) a description of the systems for monitoring
the

including the role of

and evaluation,
Monitoring Committee;

(v) a description of the specific arrangements and
single

checking

the

on

procedures
programming document;

for

(e) where appropriate,

information on the resources
required for preparing, monitoring and evaluating
assistance.

In accordance with Article 11, the single programming
document shall
include the ex-ante verification of
additionality for the relevant objective or objectives
agreed
the
the Member
Commission and appropriate information concerning
the transparency of financial flows, in particular from
the Member State
concerned to the beneficiary
regions.

between

State

and

Each single programming document

shall be
4.
supplemented by a programme complement as defined
in Article 9(m) and described in Article 18(3).

CHAPTER III

COMMUNITY INITIATIVES

Article 20

Content

The Community

1.
following fields:

initiatives

shall

cover

the

interregional
(a) cross-border,
cooperation
the
harmonious, balanced and sustainable development
of the whole of the Community area ((cid:28)Interreg’);

transnational
intended

encourage

and

to

(b) economic and social regeneration of cities and of
urban neighbourhoods in crisis with a view to
development
promoting
((cid:28)URBAN’);

sustainable

urban

a

(c) rural development ((cid:28)Leader’);

(d) transnational cooperation to promote new means
of combating all
forms of discrimination and
inequalities in connection with the labour market
((cid:28)EQUAL’).

At

least

2.
Funds
commitment appropriations referred to in Article 7(1)
shall be allocated to Interreg, under which due

2,5 % of

Structural

the

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attention should be given to cross-border activities, in
particular in the perspective of enlargement, and for
Member States which have extensive frontiers with the
applicant
improved
coordination with the PHARE, TACIS and MEDA
programmes. Due attention shall also be given to
cooperation with the outermost regions.

countries,

as well

to

as

Due account
vocational
framework of EQUAL.

shall be

integration of asylum seekers

taken of

the

social and
in the

5.
shall
The Community initiative programmes
cover a period of seven years, beginning on 1 January
2000.

CHAPTER IV

INNOVATIVE ACTIONS AND TECHNICAL ASSISTANCE

3.
Programmes approved within the framework of
the Community initiatives may cover areas other than
those referred to in Articles 3 and 4.

Article 22

Innovative actions

Article 21

Preparation, approval and implementation

to

the

In accordance with the procedures referred to in
1.
Articles 48 to 51 and after notifying them for
information
the
Commission shall lay down guidelines describing, for
each initiative, the aims, scope and the appropriate
method of implementation. Those guidelines shall be
published in the Official Journal of
the European
Communities.

Parliament,

European

At

the

initiative of

1.
the Commission and
following consultation of the committees referred to in
Articles 48 to 51 on the guidelines for the various
types of innovative actions, subject to a ceiling of
0,40 % of their respective annual funding, the Funds
may finance innovative actions at Community level.
These
and
exchanges of experience.

studies, pilot projects

include

shall

shall

contribute

to the
Such innovative actions
preparation of
innovative methods and practices
designed to improve the quality of assistance under
Objectives 1, 2 and 3. They shall be implemented in a
simple, transparent fashion and in accordance with the
principles of sound financial management.

from the ERDF,

2.
Each area referred to in Article 20(1) shall be
financed by a single Fund: the area referred to in
paragraph 1(a) and (b)
the area
referred to in paragraph 1(c)
from the EAGGF
Guidance Section and the area referred to in
paragraph 1(d) from the ESF. The decision on the
contribution of a Fund may amplify the scope of each
Fund as defined in the Regulations specific to each
to include all
Fund, but without broadening it,
the Community
measures
initiative programme concerned.

required to implement

3. On the basis of proposals drawn up in
accordance with the
referred to in
paragraph 1 and with Article 41(2) and submitted by
the Member State(s), the Commission shall decide on
Community initiative programmes in accordance with
Article 28.

guidelines

following

The Community initiative programmes shall be
4.
the mid-term evaluation
re-examined
referred to in Article 42 and amended where required
on application by the Member State(s) concerned or
by the Commission by agreement with the Member
State(s).

2.
Each field of action for pilot projects shall be
financed by one fund only. The decision on the
contribution of a fund may amplify the scope of each
fund as defined in the Regulations specific to each
to include all
fund, but without broadening it,
measures
the pilot project
concerned.

required to implement

Article 23

Technical assistance

At the initiative or on behalf of the Commission and
following consultation of the committees referred to in
Articles 48 to 51 on the different types of measures,
their respective
subject
annual
the
finance
preparatory, monitoring,
evaluation and checking
measures necessary for implementing this Regulation.
These shall include:

to a ceiling of 0,25 % of
allocation,

the Funds may

(a) studies,

including studies of a general nature,

concerning the operations of the Funds;

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(b) measures of technical assistance, the exchange of
experience and information aimed at the partners,
the final beneficiaries of assistance from the Funds
and the general public;

(c) the installation, operation and interconnection of
computerised systems for management, monitoring
and evaluation;

(d) improvements in evaluation methods and exchange

of information on practices in this field.

Article 24

Approval of innovative actions and technical
assistance

1. Making use of information on innovative actions
from the Member States concerned, the Commission
shall appraise applications for a contribution from the
Funds pursuant to Articles 22 and 23 on the basis of
the following details:

(a) a description of the proposed assistance, its scope,
including geographical coverage, and specific aims;

(b) the bodies to be responsible for implementing the

assistance and the beneficiaries;

(c) the

timetable

including
contributions from any other source of Community
finance;

and financing plan,

arising out of the institutional arrangements specific to
each Member State.

CHAPTER V

MAJOR PROJECTS

Article 25

Definition

As part of any assistance,
expenditure in respect of major projects, i.e. those:

the Funds may finance

(a) which comprise an economically indivisible series
of works fulfilling a precise technical function and
which have clearly identified aims; and

(b) whose total cost taken into account in determining
the contribution of the Funds exceeds EUR 50
million.

Article 26

Approval and implementation

1. During the implementation of assistance, where a
Member State or managing authority envisages the
Funds contributing to a major project, it shall inform
the Commission in advance and provide the following
information:

(d) provisions

to
implementation;

ensure

efficient

and

correct

(a) the body to be responsible for implementation;

(e) any

other

information

verify
compatibility with Community policies and with
the guidelines referred to in Article 10(3).

necessary

to

(b) the nature of the investment and a description of

it, its financial volume and location;

(c) the timetable for implementing the project;

The Commission shall approve the contribution of the
Funds when this information enables it to appraise the
application.

(d) a cost-benefit analysis,

including financial costs
and benefits, a risk assessment and information on
the economic viability of the project;

The Member

be
2.
immediately notified by the Commission following
approval of an application.

concerned

States

shall

The financial

the Member States
liability of
3.
within the meaning of this Regulation shall not be
engaged for the innovative actions referred to in
Article 22 or the technical assistance measures referred
to in Article 23, without prejudice to their obligations

(e) plus:

— in the case of investment in infrastructure: the
analysis of the costs and the socio-economic
benefits of the project, including an indication
of the anticipated rate of use, the foreseeable
impact on the development or conversion of
the region concerned, and the application of
Community rules on public contracting,

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— in the

case of

investment

in production
facilities: the analysis of the market prospects
in the sector concerned and the anticipated
return on the project,

(f) the direct and indirect effects on the employment
situation, as far as possible in the Community;

(g) information allowing an evaluation to be made of
the environmental impact and the implementation
of the precautionary principle and the principles
that preventive action should be taken,
that
environmental damage should as a priority be
rectified at source and that the polluter should pay
and compliance with the Community rules on the
environment;

(h) information needed to assess compliance with
competition rules, inter alia rules on State aids;

(i) an indication of the influence of the contribution
the Funds on whether the project will be

of
implemented;

(j) the financing plan and the total financial resources
expected from the contribution of the Funds and
any other source of Community finance.

The Commission shall appraise the project,
in the light of the

2.
consulting the EIB if necessary,
following factors:

(a) the

type of

investment planned and, where

applicable, the revenue expected;

(b) the results of the cost-benefit analysis;

(c) the result of the evaluation of the impact on the

environment;

(d) consistency with the priorities in the corresponding

assistance;

(e) compliance with other Community policies;

(f) the

expected

benefits,
particularly in terms of employment, having regard
to the financial resources deployed;

economic

social

and

(g) the coordination of the financial instruments and
the combination of assistance and loans referred to
in Article 10(2).

3. Within two months of receipt of the information
referred to in paragraph 1 or three months where
consultation of
the
Commission shall decide to confirm or amend the
level of Community assistance. If it considers that the

the EIB proves necessary,

project appears not to justify either part or all of the
contribution from the Funds,
to
withhold part or all of that contribution, stating the
reasons for so doing.

it may decide

CHAPTER VI

GLOBAL GRANTS

Article 27

Global grants

1. Where implementation or management of part of
assistance has been entrusted to intermediaries in
accordance with Article 9(i), such intermediaries must
provide guarantees of
solvency and proven
their
competence and experience in administrative and
financial management. They must normally be
established or represented in the region or regions
concerned
justified
in
circumstances, be established outside. They must have
several years’ experience in the relevant field, operate
in the public interest and adequately involve the socio-
economic
the
directly
implementation of the planned measures.

but may,

interests

affected

limited

and

by

The choice of a global grant shall appear in the
2.
corresponding decision on the contribution of
the
Funds as a special implementing provision as defined
in Article
19(3)(d). The
procedures for the use of global grants shall be the
subject of an agreement between the Member State or
managing
intermediary body
and the
concerned.

and Article

authority

18(2)(d)

In the case of Community initiative programmes and
innovative measures, the procedures for the use of
global grants shall be the subject of an agreement
between the Commission and the intermediary body
concerned.
case of Community initiative
programmes, these procedures must also be agreed
with the Member States concerned. The programme
complement referred to in Article 18 shall not relate to
that part of the assistance bearing on the global grant.

In the

The procedures for the use of the global grant

3.
shall detail in particular:

(a) the measures to be implemented;

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(b) the criteria for choosing beneficiaries;

(d) the arrangements for monitoring, evaluating and
ensuring the financial control of the global grant;

(c) the conditions and rates of assistance from the
Funds, including the use of any interest accruing;

(e) where applicable, any use of a bank guarantee, in
which case the Commission must be informed.

CONTRIBUTIONS AND FINANCIAL MANAGEMENT BY THE FUNDS

TITLE III

CHAPTER I

corresponding Community support framework, as set
out in Article 17(2)(c).

FINANCIAL CONTRIBUTIONS BY THE FUNDS

Article 28

Decision on the contributions from the Funds

requirements of

Provided that all

1.
this
the
Regulation are fulfilled, the Commission shall adopt in
a single decision the contributions of all the Funds
within five months of receipt of the application for
assistance. The decision shall distinguish clearly the
regions and areas receiving transitional support, where
applicable.

3.
In implementing measures, the contribution of
the Funds shall principally take the form of non-
repayable direct assistance (hereinafter referred to as
(cid:28)direct assistance’), as well as other forms, such as
repayable
a
guarantee, an equity holding, a venture-capital holding
or another form of finance.

an interest-rate

assistance,

subsidy,

Assistance repaid to the managing authority or to
another public authority shall be reallocated to the
same purpose.

A maximum contribution from the Funds shall be set
for each priority in the assistance.

Article 29

Differentiation of the rates of contribution

For a given period, a measure may not receive a
financial contribution from more than one fund at a
time.

from a
A measure or operation may benefit
contribution from a Structural Fund under only one of
the objectives referred to in Article 1 at a time.

No operation may benefit
simultaneously from a
contribution from a Fund under Objective 1, 2 or 3
and under a Community initiative.

No operation may benefit
simultaneously from a
contribution from a Fund under Objective 1, 2 or 3
and under the EAGGF Guarantee Section.

No operation may benefit
simultaneously from a
contribution from a Fund under a Community
initiative and under the EAGGF Guarantee Section.

2.
programmes
Community support
with

The contribution of the Funds to operational
a
framework shall be consistent
the

implementing

undertaken

financing

down

plan

laid

the

in

in

The

1.
Funds
differentiated in the light of the following:

contribution

the

of

shall

be

(a) the gravity of the specific problems, in particular
of a regional or social nature, to be tackled by the
assistance;

(b) the

financial

capacity of

the Member State
concerned, taking into account in particular its
relative prosperity and the need to avoid excessive
increases in budget expenditure;

the

the objectives of

(c) within the framework of
set out

the
Funds
importance
in Article 1,
attaching to the assistance and the priorities from
the Community viewpoint, where appropriate, for
the elimination of inequalities and the promotion
of equality between men and women and for the
protection and improvement of the environment,
the
principally
the
precautionary
of
preventive action, and the polluter-pays principle;

the principle

application

principle,

through

of

of

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(d) the importance attaching to the assistance and
national

from the

regional

and

priorities
viewpoint;

(e) the particular

type of
characteristics of
assistance and priority concerned, to take account
of the needs identified by the ex-ante evaluation, in
particular with regard to human resources and
employment;

the

(f) the optimum utilisation of financial resources in
the financing plans, including the combination of
the use made of
public and private resources,
appropriate financial
instruments in accordance
with Article 10(2), and the choice of forms of
financing as set out in Article 28(3).

Where the contribution of the ESF is differentiated in
accordance with Article 16(1),
this shall be done
taking account of the needs identified by the ex-ante
evaluation, notably in the field of human resources
and employment.

The

2.
shall be
contribution from the Funds
calculated in relation to either the total eligible cost,
or the total public or similar eligible expenditure
(national, regional or local, and Community) under
each assistance.

their

light of

intrinsic
be determined in the
characteristics,
including the size of the gross self-
financing margin which would normally be expected
for the class of investments concerned in the light of
in which the
the macro-economic
investments are to be implemented, and without there
being any increase in the national budget effort as a
result of the contribution by the Funds.

circumstances

In any event, the contribution of the Funds shall be
subject to the following ceilings:

(a) in the

case of

in infrastructure
investment
generating substantial net revenue, the contribution
may not exceed:

(i) 40 % of the total eligible cost in the regions
covered by Objective 1, which may be
increased by not more than an extra 10 % in
the Member States covered by the Cohesion
Fund;

(ii) 25 % of the total eligible cost in the areas

covered by Objective 2;

(iii) these rates may be increased by an amount for
forms of finance other than direct assistance,
provided that this increase does not exceed
10 % of the total eligible cost;

The contribution of the Funds shall be subject to

3.
the following ceilings:

(b) in

the

case

of

investments

in

firms,

the

contribution may not exceed:

(a) a maximum of 75 % of the total eligible cost and,
as a general rule, at least 50 % of eligible public
expenditure in the case of measures carried out in
the regions covered by Objective 1. Where the
regions are located in a Member State covered by
the Cohesion Fund, the Community contribution
may rise, in exceptional and duly justified cases, to
a maximum of 80 % of the total eligible cost and
to a maximum of 85 % of the total eligible cost for
the outermost regions and for the outlying Greek
islands which are under a handicap due to their
distant location;

(b) a maximum of 50 % of the total eligible cost and,
as a general rule, at least 25 % of eligible public
expenditure in the case of measures carried out in
areas covered by Objective 2 or 3.

In the case of investment in firms, the contribution of
the Funds shall comply with the ceilings on the rate of
aid and on combinations of aid set in the field of State
aids.

the assistance

the
4. Where
financing of
the
contribution from the Funds to these investments shall

concerned entails
investments,

revenue-generating

(i) 35 % of the total eligible cost in the regions

covered by Objective 1;

(ii) 15 % of the total eligible cost in the areas

covered by Objective 2;

(iii) in the case of

in small and
investments
medium-sized undertakings, these rates may be
increased by an amount for forms of finance
other than direct assistance, provided that this
increase does not exceed 10 % of the total
eligible cost.

References in paragraphs 3 and 4 to the regions
5.
and areas covered by Objectives 1 and 2 shall also be
construed as references to regions or areas receiving
on the one hand transitional support pursuant
to
Article 6(1) and support pursuant to Article 7(4) and
6(2)
the
on
respectively.

to Article

pursuant

other

hand

6.
The measures carried out on the Commission’s
initiative referred to in Articles 22 and 23 may be
financed at a rate of 100 % of the total cost. The
measures carried out on behalf of the Commission
referred to in Article 23 shall be financed at a rate of
100 % of the total cost.

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The rates in this Article shall apply to technical
of

7.
assistance measures within
programming and to the Community initiatives.

framework

the

Article 30

Eligibility

1.
Expenditure in respect of operations shall be
eligible for a contribution from the Funds only if these
operations form part of the assistance concerned.

Expenditure may not be considered eligible for a
2.
contribution from the Funds if it has actually been
paid by the final beneficiary before the date on which
the application for assistance reaches the Commission.
That date shall constitute the starting point for the
eligibility of expenditure.

The final date for the eligibility of expenditure shall be
laid down in the decision to grant a contribution from
the Funds. It shall relate to payments made by the
extended by the
final beneficiaries.
It may be
Commission at
the
Member State in accordance with Articles 14 and 15.

the duly justified request of

except where,

The relevant national rules shall apply to eligible
3.
expenditure
the
Commission lays down common rules on the
eligibility of expenditure in accordance with the
procedure referred to in Article 53(2).

necessary,

as

shall

States

ensure

The Member

4.
an
operation retains the contribution from the Funds only
if that operation does not, within five years of the date
of the decision of the competent national authorities
or the managing authority on the contribution of the
Funds, undergo a substantial modification:

that

(a) affecting

its

implementation
or
conditions or giving to a firm or a public body an
undue advantage; and

nature

its

CHAPTER II

FINANCIAL MANAGEMENT

Article 31

Budget commitments

1.
Community budget commitments shall be made
on the basis of the decision to grant a contribution
from the Funds.

Commitments

2.
in respect of assistance to be
carried out over a period of two or more years shall
be as a general
rule effected annually. The first
commitment shall be made when the Commission lays
down its decision approving the assistance. Subsequent
commitments shall be effected as a general rule by
30 April each year.

the

The Commission shall automatically decommit any
part of a commitment which has not been settled by
the payment on account or for which it has not
received an acceptable payment application, as defined
in Article 32(3), by the end of
the second year
or, where
following
appropriate and for the amounts concerned, following
the date of a subsequent Commission decision
necessary in order to authorise a measure or an
the deadline for the
operation or by the end of
transmission of
referred to in
Article 37(1); the contribution from the Funds to that
assistance shall be reduced by that amount.

commitment

report

final

year

the

of

The period for automatic decommitment referred to in
the second subparagraph shall cease to run for the
part of the commitment corresponding to operations
which, at the specified date of decommitment, are the
subject of a judicial procedure, or an administrative
appeal having suspensory effects,
to the
Commission receiving prior information giving reasons
from the Member State concerned and to information
being issued by the Commission.

subject

In any case, the Commission shall in good time inform
the Member State and the paying authority whenever
the automatic
there is a risk of application of
second
in
decommitment
subparagraph.

provided

the

for

(b) resulting either from a change in the nature of
ownership in an item of
infrastructure or a
cessation or change of location in a productive
activity.

If this Regulation enters into force after 1 January
2000, the period for automatic decommitment referred
to in the second subparagraph shall be extended for
the first commitment by the number of months
between 1 January 2000 and the date of the decision
on the contributions from the Funds referred to in
Article 28.

The Member States shall inform the Commission of
any such modification. Where such a modification
occurs, Article 39 shall apply.

For assistance to be carried out over a period of
3.
less
the
than two years
the
contribution from the Funds shall be committed when

total amount of

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the Commission adopts
contribution from the Funds.

its decsion granting

a

Article 32

Payments

1.
Payment by the Commission of the contribution
from the Funds shall be made, in accordance with the
corresponding budget commitments,
to the paying
authority as defined in Article 9(o).

Payments
commitment made pursuant to Article 31.

shall be posted to the

earliest open

Payments may take the form of payments on account,
interim payments or payments of the final balance.
Interim payments and payments of the balance shall
relate to expenditure actually paid out, which must
correspond to payments
final
beneficiaries,
supported by receipted invoices or
accounting documents of equivalent probative value.

effected by

the

Subject to available funding, the Commission shall
make interim payments within no more than two
months
payment
application, as described in paragraph 3.

acceptable

receipt

an

of

of

shall

paying

authority

final
that
The
beneficiaries receive payment of
their contribution
from the Funds as quickly as possible and in full. No
deduction, retention or further specific charge which
would reduce these amounts shall be made.

ensure

first

is made,

commitment

the
2. When the
Commission shall make a payment on account to the
paying authority. This payment on account shall be
to the
7 % of
the contribution from the Funds
assistance
it may be
subdivided over two budget years at most depending
on the availability of budget funds.

In principle,

in question.

by

shall

be made

Interim payments

3.
the
Commission to reimburse expenditure actually paid
under the Funds as certified by the paying authority.
Such payments shall be made at the level of each
the level of measures
assistance and calculated at
contained in the financing plan of the programme
complement. They shall be subject to the following
conditions:

(a) the

programme

the
complement
information specified in Article 18(3) has been
presented to the Commission;

containing

(b) the

latest annual

implementation report due,
containing the information specified in Article 37
has been forwarded to the Commission;

(c) the mid-term evaluation of the assistance referred
to in Article 42, when due, has been forwarded to
the Commission;

(d) decisions taken by the managing authority and the
Monitoring Committee are consistent with the
total amount of the contribution from the Funds
granted to the priorities concerned;

(e) any recommendations as referred to in Article 34(2)
have been acted upon within the specified period,
or
reasons have been communicated by the
Member State to explain why no measure has been
taken, where those recommendations are intended
to remedy serious shortcomings in the monitoring
or management system which undermine proper
financial management of
the assistance; any
requests for corrective measures as referred to in
Article 38(4) have been acted upon,
the
application relates to the measure or measures
concerned;

if

the

(f) no suspension of payments under

first
subparagraph of Article 39(2) has been decided,
and no decision has been taken by the Commission
to embark on an infringement procedure within
the Treaty
the meaning of Article 226 of
concerning the measure(s) that is or are the subject
of the application in question.

Throughout
the paying
the lifetime of assistance,
authority shall use the payment on account to pay the
Community contribution to expenditure relating to
this assistance.

The Member State and the paying authority shall be
informed immediately by the Commission if one of
these conditions is not
fulfilled and the payment
application is therefore not acceptable and they shall
take the necessary steps to remedy the situation.

All or part of a payment on account, depending on
progress towards implementation of
the assistance,
shall be repaid to the Commission by the paying
authority if no payment application is sent to the
Commission within 18 months of its decision to grant
a contribution from the Funds.
is
earned on the payment on account it shall be allocated
by the paying authority to the form of assistance
concerned.

If any interest

Member States shall ensure that, as far as possible,
applications for interim payments are presented to the
Commission in batches three times a year, the last
application being presented no later than 31 October.

Applications for interim payments shall distinguish,
for each priority, the expenditure incurred in regions
and areas receiving transitional support.

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The combined total of the payments referred to in
paragraph 2 and in this paragraph which are made in
respect of an assistance shall not exceed 95 % of the
contribution from the Funds to that assistance.

The final balance of the assistance shall be paid

4.
if:

(a) the paying authority submits to the Commission
within six months of the deadline for payment laid
down in the decision granting a contribution from
the Funds, a certified statement of expenditure
actually paid;

(b) the final

report on implementation has been

submitted to and approved by the Commission;

(c) the Member State has sent the Commission the

statement referred to in Article 38(1)(f).

The Member

6.
the
States
authorities empowered to issue the certificates and
declarations referred to in paragraphs 3 and 4.

designate

shall

7. No later than 30 April of each year, the Member
States
send the Commission their updated
forecasts of applications for payment for the current
year and the forecast for the following year.

shall

The Commission shall

8.
lay down appropriate
payment procedures, consistent with the objectives of
these provisions, for the innovative measures referred
to in Article 22 and the measures referred to in
Article 23 and inform the committees referred to in
Articles 48 to 51.

Article 33

Use of the euro

The final payment of the balance may no longer
5.
be corrected at the request of the Member State if the
paying authority has not sent an application to the
Commission within nine months from the date of
transfer of the final balance.

Commission decisions, commitments and payments
shall be denominated and carried out
in euro in
accordance with the arrangements to be drawn up by
the Commission under the procedure referred to in
Article 53(2).

TITLE IV

EFFECTIVENESS OF ASSISTANCE FROM THE FUNDS

CHAPTER I

MONITORING

Article 34

Management by the managing authority

computer systems permitting the exchange of data
with the Commission, as defined in Article 18(3)(e);

(b) adjustment in accordance with paragraph 3 and
the implementation of the programme complement
within the meaning of Article 18(3), without
prejudice to Article 35;

(c) drawing up and, after obtaining the approval of
submitting to the

the Monitoring Committee,
Commission the annual implementation report;

1. Without prejudice to Article 8(3), the managing
authority as defined in Article 9(n) shall be responsible
for the efficiency and correctness of management and
implementation, and in particular for:

(d) organising,

in cooperation with the Commission
and the Member State, the mid-term evaluation
referred to in Article 42;

(a) setting up a system to gather reliable financial and
statistical information on implementation, for the
monitoring indicators referred to in Article 36, and
for evaluation in compliance with Articles 42 and
43; and for forwarding this data in accordance
with arrangements agreed between the Member
State and the Commission, using where possible

(e) ensuring that

those bodies

in the
management and implementation of the assistance
maintain either a separate accounting system or an
adequate accounting code for all
transactions
relating to the assistance;

taking part

(f) ensuring the correctness of operations financed
under the assistance, particularly by implementing

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and

financial management

internal controls in keeping with the principles of
in
sound
for
response to any observations or
to
corrective measures
or
38(4),
Article
recommendations
for adjustment made under
paragraph 2 of this Article in accordance with the
provisions of those Articles;

acting
requests
pursuant

subparagraph,

adopted

first

in the context of

(g) ensuring compliance with Community policies as
stipulated in Article 12;
the
application of Community rules on the award of
public contracts, notices sent for publication in the
the European Communities
Official Journal of
shall specify those projects in respect of which a
contribution from the Funds has been applied for
or granted;

(h) compliance with

concerning
information and publicity referred to in Article 46.

obligations

the

Without prejudice to the provisions of this Regulation,
in carrying out its tasks the managing authority shall
act in full compliance with the institutional, legal and
financial systems of the Member State concerned.

Every year, when the annual

implementation
2.
report referred to in Article 37 is submitted,
the
Commission and the managing authority shall review
the main outcomes of the previous year, in accordance
with arrangements to be defined by agreement with
the Member State and the managing authority
concerned.

this

shall

State

review,

After
the Commission may make
comments to the Member State and the managing
authority. The Member
inform the
Commission of the action taken on these comments.
Where in duly substantiated cases the Commission
considers that the measures taken are inadequate, it
may make recommendations to the Member State and
the managing authority for adjustments aimed at
improving the effectiveness of
the monitoring or
management arrangements for the assistance, together
with the reasons for any such recommendations. If it
receives any such recommendations,
the managing
authority shall subsequently demonstrate the steps
taken to improve the monitoring or management
arrangements or it shall explain why it has not taken
any.

3.
The managing authority shall, at the request of
the Monitoring Committee or on its own initiative,
adjust the programme complement, without changing
the total amount of the contribution from the Funds
granted to the priority concerned nor its specific
targets. After approval by the Monitoring Committee,
the adjustment
it shall
within one month.

inform the Commission of

decided by the Commission,
in agreement with the
Member State concerned, within four months of
delivery of the Monitoring Committee’s approval.

Article 35

Monitoring Committees

Each Community support framework or single
1.
programming
operational
and
programme shall be supervised by a Monitoring
Committee.

document

each

shall be set up by the
Monitoring Committees
in agreement with the managing
Member State,
authority after consultation with the partners. The
partners shall promote the balanced participation of
women and men.

The Monitoring Committees shall be set up no more
the decision on the
than three months
contribution
The Monitoring
Committees shall act under the authority and within
the legal jurisdiction of the Member State.

Funds.

after

the

of

2.
A representative of the Commission and, where
appropriate, of the EIB, shall participate in the work
of the Monitoring Committee in an advisory capacity.

The Monitoring Committee shall draw up its own
rules of procedure within the institutional, legal and
financial framework of the Member State concerned
and agree them with the managing authority.

the Monitoring Committee shall be
In principle,
chaired by a representative of the Member State or the
managing authority.

The Monitoring Committee shall satisfy itself as
3.
to the effectiveness and quality of the implementation
of assistance. To that end:

(a) pursuant to Article 15, it shall confirm or adjust
the programme complement, including the physical
and financial indicators to be used to monitor the
assistance. Its approval must be obtained before
any further adjustment is made;

(b) it

shall consider and approve the criteria for
each
the

selecting the operations
measure within six months of approval of
assistance;

financed under

Any amendments to the elements contained in the
decision on the contribution of the Funds shall be

(c) it shall periodically review progress made towards
achieving the specific objectives of the assistance;

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(d) it shall examine the results of

implementation,
particularly achievement of the targets set for the
different measures and the mid-term evaluation
referred to in Article 42;

(e) it shall consider and approve the annual and final
implementation reports before they are sent to the
Commission;

(f) it shall consider and approve any proposal

to
amend the contents of the Commission decision on
the contribution of the Funds;

(c) the progress of the financing plan.

Where the nature of
the
statistics shall be broken down by sex and by the size
of the recipient undertakings.

the assistance permits,

The financial and progress indicators shall be
3.
such that the information set out in paragraph 2(a),
(b) and (c) can be identified separately for major
projects.

any

(g) it may in any event propose to the managing
authority
the
adjustment or
assistance likely to make possible the attainment of
the objectives referred to in Article 1 or to improve
the management of assistance, including in respect
of financial management. Any adjustment to the
assistance shall be made in accordance with
Article 34(3).

review of

Article 36

Monitoring indicators

single

programme,

The managing authority and the Monitoring
1.
Committee shall carry out the monitoring by reference
indicators specified in the
to physical and financial
operational
programming
document, or programme complement. In drawing up
their indicators, they should take into account the
indicative methodology and list of
examples of
indicators published by the Commission, as well as a
categorisation of fields of intervention to be proposed
by the Commission upon entry into force of
this
Regulation. The indicators shall relate to the specific
character of the assistance concerned,
its objectives
and the socio-economic, structural and environmental
situation of
the Member State concerned and its
regions, as appropriate, and shall take account, where
the existence of regions or areas
appropriate, of
receiving transitional support. These indicators shall
include,
in particular, those used for allocating the
reserve referred to in Article 44.

Article 37

Annual and final implementation reports

assistance,

For multiannual

1.
the managing
authority shall, within six months of the end of each
full calendar year of implementation, submit to the
Commission an annual
implementation report as
provided for in Article 34(1)(c). A final report shall be
submitted to the Commission at the latest six months
after the final date of eligibility of the expenditure.

For all assistance to be implemented over a period of
less than two years,
the managing authority shall
submit only a final report to the Commission. This
shall be submitted within six months of
the last
payment made by the paying authority.

The report shall be examined and approved by the
Monitoring Committee before
to the
Commission.

sent

is

it

the Commission has

it
two months if

received an annual
Once
indicate within a
implementation report,
period of
is considered
unsatisfactory, giving its reasons; otherwise, the report
shall be deemed to be accepted. In the case of a final
report the Commission shall respond within a period
of five months from its receipt of the report.

shall
the report

These indicators shall show, for the assistance in

2.
question:

All annual and final implementation reports shall

2.
include the following information:

(a) the specific targets, quantified where they lend
themselves to quantification, for the measures and
priorities, and their mutual consistency;

(b) the stage reached in the assistance in terms of
implementation, results and, as soon as
the appropriate level

its impact at

physical
practicable,
(priority or measure);

(a) any change in general conditions which is of
relevance to the implementation of the assistance,
in particular
the main socio-economic trends,
changes in national, regional or sectoral policies or
in the frame of reference referred to in Article 9(c)
and, where applicable, their implications for the
mutual consistency of assistance from the different
Funds and consistency between Fund assistance
and that from other financial instruments;

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specific

(b) the progress in the implementation of priorities
and measures for each of the Funds in relation to
their
targets, with a quantification,
wherever and whenever they lend themselves to
indicators and
quantification, of
indicators of results and of impact referred to in
Article 36 at
(priority or
the appropriate level
measure);

the physical

the

each measure

implementation of
for

the assistance,
(c) the financial
summarising
total
expenditure actually paid out by the paying
authority and a record of
the total payments
received from the Commission and quantifying the
financial indicators referred to in Article 36(2)(c);
financial
implementation in the areas receiving
transitional support shall be presented separately in
respect of each priority; financial implementation
of the EAGGF Guarantee Section for the measures
referred to in Article 33 of Regulation (EC)
No 1257/1999 shall be presented at the level of the
total amount of the financial implementation;

(d) the steps taken by the managing authority and the
Monitoring Committee to ensure the quality and
effectiveness of implementation, in particular:

(i) monitoring, financial control and evaluation
collection

including

data

measures,
arrangements;

(ii) a

any

summary of

significant problems
encountered in managing the assistance and
including action on
any measures
adjustments made
recommendations
for
pursuant
corrective measures pursuant to Article 38(4);

taken,
for
to Article 34(2) or

requests

(iii) the use made of technical assistance;

(iv) the measures taken to ensure publicity for the

assistance in accordance with Article 46;

(e) the steps

taken to ensure compatibility with
Community policies as stipulated in Article 12 and
to ensure coordination of all
the Community
structural assistance referred to in Article 17(1)
and the second subparagraph of Article 19(2);

CHAPTER II

FINANCIAL CONTROL

Article 38

General provisions

to

the

prejudice

1. Without
Commission’s
responsibility for implementing the general budget of
the European Communities, Member States shall take
responsibility in the first instance for the financial
control of assistance. To that end, the measures they
take shall include:

(a) verifying

that

control
management
arrangements have been set up and are being
implemented in such a way as to ensure that
Community funds are being used efficiently and
correctly;

and

(b) providing the Commission with a description of

these arrangements;

(c) ensuring that assistance is managed in accordance
with all the applicable Community rules and that
the funds placed at
their disposal are used in
accordance with the principles of sound financial
management;

(d) certifying that

the declarations of expenditure
presented to the Commission are accurate and
ensuring that they result from accounting systems
based on verifiable supporting documents;

(e) preventing, detecting and correcting irregularities,
notifying these to the Commission, in accordance
with the rules, and keeping the Commission
informed of
the progress of administrative and
legal proceedings;

(f) presenting

a

to

the Commission, when

each
assistance is wound up, a declaration drawn up by
function
a person or department having
independent of the designated managing authority.
This declaration shall summarise the conclusions
of the checks carried out during previous years and
shall assess the validity of
the application for
payment of the final balance and the legality and
regularity of the transactions covered by the final
certificate of expenditure. The Member States may
attach their own opinion to this certificate if they
consider it necessary;

(f) a separate section, where appropriate, on the
progress and financing of major projects and
global grants.

(g) cooperating with the Commission to ensure that
Community funds are used in accordance with the
principles of sound financial management;

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26.6.1999

(h) recovering any amounts lost as a result of an
appropriate,

irregularity detected and, where
charging interest on late payments.

2.
The Commission in its responsibility for the
implementation of the general budget of the European
Communities shall ensure that Member States have
control
smoothly
systems so that Community funds are efficiently and
correctly used.

functioning management

and

of

and

framework

regulations

administrative

To that end, without prejudice to checks carried out
by the Member States in accordance with national
laws,
provisions,
Commission officials or servants may, in accordance
with arrangements agreed with the Member State in
the
in
paragraph 3, carry out on-the-spot checks, including
sample checks, on the operations financed by the
Funds and on management and control systems with a
notice. The
minimum of
Commission shall give notice to the Member State
concerned with a view to obtaining all the assistance
necessary. Officials or servants of the Member State
concerned may take part in such checks.

one working

cooperation

described

day’s

The Commission may require the Member State
concerned to carry out an on-the-spot check to verify
transactions.
the
Commission officials or servants may take part in such
checks.

correctness

or more

one

of

of

39,

any

regarding

Following this examination and evaluation and
4.
without prejudice
to be taken
to the measures
immediately by the Member State under this Article
the Commission may make
and Article
financial
observations, particularly
impact
These
irregularities
observations shall be addressed to the Member State
and the managing
assistance
concerned. The observations shall be accompanied,
where necessary, by requests for corrective measures to
remedy the management
found and
correct those irregularities detected which have not
already been corrected. The Member State shall have
the opportunity to comment on these observations.

the
detected.

authority of

shortcomings

the

State,

Where, following or in the absence of comments from
adopts
the Member
conclusions, the Member State shall take the necessary
steps within the deadline set
to comply with the
Commission’s requests and inform the Commission of
its actions.

the Commission

to

that

prejudice

concerned

finds
a
to

this Article,

it
if
linked

5. Without
the
Commission, after due verification, may suspend all or
the
part of an interim payment
expenditure
serious
is
irregularity which has not been corrected and that
immediate action is needed. The Commission shall
inform the Member State concerned of
the action
taken and the reasons for it. If, after five months, the
reasons for the suspension remain or the Member
State concerned has not notified the Commission of
the measures taken to correct the serious irregularity,
the provisions laid down under Article 39 shall apply.

3.
The Commission and the Member States shall on
the basis of bilateral administrative arrangements
cooperate
and
implementation of checks so as to maximise the
usefulness of those carried out. They shall immediately
exchange the results of the checks carried out.

plans, methods

coordinate

to

At least once a year and,
annual
following shall be examined and evaluated:

review provided for

in any event, before the
the
in Article 34(2)

(a) the results of

the checks carried out by the

Member State and the Commission;

(b) any

comments made by other national or

Community control bodies or institutions;

(c) the financial impact of the irregularities noted, the
steps already taken or still required to correct them
and, where
the
management and control systems.

adjustments

necessary,

to

6.
For a period of three years, unless otherwise
decided in the bilateral administrative arrangements,
following the payment by the Commission of the final
balance in respect of any assistance, the responsible
authorities shall keep available for the Commission all
the supporting documents (either
the originals or
versions certified to be in conformity with the
originals on commonly
carriers)
regarding expenditure and checks on the assistance
concerned. This period shall be interrupted either in
the case of legal proceedings or at the duly motivated
request of the Commission.

accepted data

Article 39

Financial corrections

1.
The Member States shall, in the first instance,
bear the responsibility for investigating irregularities,
acting upon evidence of any major change affecting

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the nature or conditions for the implementation or
supervision of assistance and making the financial
corrections required.

or change and the extent and financial implications of
the shortcomings found in the management or control
systems of the Member States.

The Member State shall make the financial corrections
required in connection with the individual or systemic
irregularity. The corrections made by the Member
State shall consist in cancelling all or part of the
funds
Community contribution. The Community
released in this way may be re-used by the Member
State for the assistance concerned, in compliance with
the
to
be
Article 53(2).

arrangements

pursuant

defined

to

If, after completing the necessary verifications,

2.
the Commission concludes that:

(a) a Member State has not

complied with its

obligations under paragraph 1; or

(b) all or part of an operation justifies neither part nor
the whole of the contribution from the Funds; or

(c) there are serious failings in the management or
systems which could lead to systemic

control
irregularities;

the Commission shall suspend the interim payments in
question and, stating its reasons, request
the
Member State
comments and, where
its
appropriate, carry out any corrections, within a
specified period of time.

submit

that

If the Member State objects to the observations made
by the Commission, the Member State shall be invited
to a hearing by the Commission, in which both sides
in cooperation based on the partnership make efforts
to reach an agreement about the observations and the
conclusions to be drawn from them.

At the end of the period set by the Commission,
3.
the Commission may,
if no agreement has been
reached and the Member State has not made the
corrections and taking account of any comments made
by the Member State, decide within three months to:

(a) reduce the payment on account referred to in

Article 32(2); or

(b) make

the

financial

by
cancelling all or part of the contribution of the
Funds to the assistance concerned.

corrections

required

In the absence of a decision to do either (a) or (b) the
interim payments
to be
suspended.

immediately cease

shall

Any sum received unduly and to be recovered
together with

4.
shall be repaid to the Commission,
interest on account of late payment.

This Article shall apply without prejudice to

5.
Article 32.

CHAPTER III

EVALUATION

Article 40

General provisions

1.
In order to gauge its effectiveness, Community
structural assistance shall be the subject of ex-ante,
mid-term and ex-post evaluation designed to appraise
its impact with respect to the objectives set out in
Article 1 and to analyse its effects on specific
structural problems.

The effectiveness of the operations of the Funds

2.
shall be measured by the following criteria:

(a) their overall

in
impact on the goals
Article 158 of the Treaty, and in particular the
strengthening of the economic and social cohesion
of the Community;

set out

(b) the impact of
development
incorporated
framework and in each case of assistance.

the priorities proposed in the
priorities
support

each Community

plans
in

and

the

of

3.
The competent authorities of the Member States
and the Commission shall assemble the appropriate
resources and collect the data required to ensure that
this evaluation can be carried out in the most effective
manner. In this connection, evaluation shall make use
that
various particulars
of
the monitoring
arrangements may
supplemented where
yield,
necessary by the gathering of information to improve
its relevance.

the

The Commission shall when deciding the amount of a
correction take account,
in compliance with the
principle of proportionality, of the type of irregularity

the
On the initiative of
Commission, after
informing the Member State
concerned, supplementary evaluations, if appropriate

the Member States or

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26.6.1999

on a specific topic, may be launched with a view to
identifying transferable experience.

The results of

the evaluation shall be made
4.
available to the public, on request. As regards the
results of the evaluation provided for in Article 42, the
Monitoring Committee’s agreement shall be required
according to the institutional arrangements of each
Member State.

The evaluation procedures shall be laid down in
frameworks and forms of

5.
the Community support
assistance.

Article 41

Ex-ante evaluation

1.
The purpose of ex-ante evaluation shall be to
provide a basis for preparing the development plans,
assistance and programme complement of which it
shall form part.

Ex-ante evaluation shall be the responsibility of the
authorities
the plans,
assistance and programme complement.

for preparing

responsible

involve an analysis of

For the preparation of plans and assistance ex-
2.
ante evaluation shall
the
strengths, weaknesses and potential of the Member
State, region or sector concerned. In the light of the
criteria listed in Article 40(2)(a) it shall assess the
consistency of the strategy and targets selected with
the specific features of the regions or areas concerned,
including demographic
expected
impact of the planned priorities for action, quantifying
their
starting
in relation to the
situation, where they lend themselves thereto.

trends, and the

specific

targets

take

things,

ex-ante

evaluation shall

into account,
The
amongst other
the situation in terms of
competitiveness and innovation, small and medium-
sized enterprises, employment and the labour market
having regard to the European employment strategy,
the environment and equality between men and
women, and it shall include in particular:

(b) an ex-ante

the

the

evaluation of

environmental
situation of the region concerned, in particular of
those environmental sectors which will presumably
be considerably affected by the assistance;
the
environmental
to integrate
arrangements
dimension into the assistance and how far they fit
in with existing short- and long-term national,
regional and local objectives (e.g. environmental
management plans); the arrangements for ensuring
compliance with the Community rules on the
environment. The ex-ante evaluation shall give a
description, quantified as far as possible, of the
existing environmental situation and an estimate of
the expected impact of the strategy and assistance
on the environmental situation;

(c) an ex-ante evaluation of the situation in terms of
equality between men and women with regard to
labour market opportunities and treatment at
work,
including the specific constraints on each
group; an estimate of the expected impact of the
the
strategy
integration of women and men into the labour
market, on education and vocational training, on
the establishment of women in business and on the
reconciliation of family and working life.

and assistance,

particularly

on

The ex-ante evaluation shall verify the relevance of the
proposed implementing and monitoring arrangements,
consistency with Community policies and how far the
indicative guidance referred to in Article 10(3) has
been taken into account.

It shall take account of results from evaluations of
earlier programming periods.

3.
evaluation of the measures in the programme
complement shall demonstrate consistency with the
aims of the corresponding priorities, quantify their
specific targets where the priorities lend themselves
thereto, and subsequently verify the relevance of the
selection criteria,
to
Article 35(3)(b).

as provided for pursuant

Article 42

Mid-term evaluation

(a) an ex-ante evaluation of the social and economic
situation, mainly trends in the national
labour
market, including regions encountering particular
employment problems and of the overall strategy
in the field of human resource development and
the way in which this strategy is linked to the
national employment strategy as set out in the
national action plans;

1. Mid-term evaluation shall examine, in the light
of the ex-ante evaluation, the initial results of the
asssistance, their relevance and the extent to which the
targets have been attained. It shall also assess the use
made of
financial resources and the operation of
monitoring and implementation.

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It

shall

cover

responsibility of

each Community

the managing authority,

2. Mid-term evaluation shall be carried out under
the
in
cooperation with the Commission and the Member
State.
support
framework and each assistance. It shall be carried out
by an independent assessor, be submitted to the
Monitoring Committee for the Community support
framework or assistance concerned in accordance with
Article 35(3), and then sent to the Commission, as a
the
general
Community support framework or assistance, and no
later than 31 December 2003, with a view to the
revision referred to in Article 14(2).

three years after adoption of

rule

The Commission shall examine the relevance and
3.
quality of
the evaluation on the basis of criteria
defined beforehand by the Commission and the
Member State in partnership, with a view to reviewing
the assistance and allocating the reserve referred to in
Article 44.

4.
As a continuation of mid-term evaluation, it shall
be updated for each Community support framework
and
than
31 December 2005 in order to prepare for subsequent
assistance operations.

completed

assistance

later

and

no

Article 43

Ex-post evaluation

1. On the basis of the evaluation results already
available, ex-post evaluation shall cover the utilisation
of resources and the effectiveness and efficiency of the
assistance and its impact and shall draw conclusions
regarding policy on economic and social cohesion. It
shall cover the factors contributing to the success or
failure of implementation and the achievements and
results, including their sustainability.

Ex-post evaluation shall be the responsibility of
2.
the Commission,
in collaboration with the Member
State and the managing authority. It shall cover the
assistance and be carried out by independent assessors.

It shall be completed not later than three years after
the end of the programming period.

CHAPTER IV

PERFORMANCE RESERVE

Article 44

Allocation of the performance reserve

1.
Each Member State, in close consultation with
the Commission, shall assess under each objective and
not later than 31 December 2003 the performance
of each of their operational programmes or single
programming documents on the basis of a limited
reflecting
number
of
effectiveness,
financial
implementation and measuring the mid-term results in
relation to their specific initial targets.

management

monitoring

indicators

and

These indicators shall be decided by the Member State
in close consultation with the Commission taking
account of all or part of an indicative list of indicators
proposed by the Commission and shall be quantified
in the existing different annual implementation reports
the mid-term evaluation report. The
as well as
their
Member
application.

responsible

States

shall

for

be

concerned, under

taking account of

At mid-term and not later than 31 March 2004,
2.
in close consultation
the Commission shall allocate,
with the Member States
each
objective, on the basis of proposals from each Member
specific institutional
State,
features and their corresponding programming,
the
commitment appropriations referred to in Article 7(5)
to the operational programmes or single programming
documents or their priorities which are considered to
be successful. The operational programmes or single
programming
in
accordance with Articles 14 and 15.

documents

adapted

shall

its

be

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TITLE V

REPORTS AND PUBLICITY

Article 45

Reports

Pursuant

the Treaty,

to Article 159 of

the
1.
Commission shall submit a report at
three-yearly
intervals to the European Parliament, the Council, the
Economic and Social Committee and the Committee
of
towards
economic and social cohesion and the contribution
made to this by the Funds, the Cohesion Fund, the EIB
and other financial
instruments. This report shall
review in particular:

the Regions on the progress made

(b) the coordination of assistance from the Funds
among themselves and with the assistance granted
by the EIB and the other existing financial
instruments;

(c) as soon as they are available, the results of the
evaluations referred to in Article 42 — indicating
to the assistance — and in
any adjustments
Article 43, and an evaluation of the consistency of
measures taken by the Funds with the Community
policies referred to in Article 12;

(d) a list of the major projects to which the Funds

have contributed;

(a) progress

in

achieving

economic

social
cohesion, including the socio-economic situation of
the regions and any changes observed, and an
analysis of direct
flows and their
investment
impact on the Community employment situation;

and

(e) the

of

out

results

checks

carried

the
Commission in accordance with Article 38(2) and
the lessons to be drawn from them, including an
indication of the number of recorded irregularities,
the
financial
corrections made in respect of Article 39(2);

in question and the

amounts

by

(b) the role of the Funds, the Cohesion Fund, the EIB
and other financial
instruments as well as the
impact of other Community and national policies
in accomplishing this process;

(c) any proposals concerning Community measures
and policies which may need to be adopted in
order to strengthen economic and social cohesion.

of

1 November
shall

year,
the
each
2.
Before
European
the
Commission
Parliament,
the Economic and Social
Committee and the Committee of the Regions a report
on the implementation of this Regulation during the
preceding year. This report shall review in particular:

the Council,

forward

to

resources

(a) the activities of each fund, the utilisation of their
budget
of
and
assistance, the deployment of the other financial
for which the Commission has
instruments
responsibility and the
their
resources; this review shall include:

concentration of

concentration

the

— an annual breakdown by Member State of
appropriations committed and paid in respect
of each fund, including Community initiatives;

— an annual evaluation of innovative actions and

technical assistance;

(f) information on the opinions of

committees

delivered in accordance with Articles 48 to 51.

Article 46

Information and publicity

For the purposes of consultation as referred to in
that

1.
Article 15(1), Member States
shall
publicity is given to development plans.

ensure

2. Without prejudice to Article 23(1), the managing
authority shall be
ensuring that
responsible
publicity is given to the package and particularly for
informing:

for

(a) potential final beneficiaries, trade and professional
bodies, the economic and social partners, bodies
promoting equality between men and women and
the relevant non-governmental organisations about
the opportunities afforded by the assistance;

(b) the general public about the role played by the
Community in the assistance concerned and its
results.

3.
The Member States shall consult the Commission
and in accordance with Article 37(2) inform it each
year of the initiatives taken for the purposes set out in
paragraphs 1 and 2 of this Article.

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TITLE VI

COMMITTEES

Article 47

General provisions

In implementing this Regulation, the Commission

1.
shall be assisted by four committees:

(a) the Committee

on
Conversion of Regions;

the Development

and

(b) the Committee pursuant

to Article 147 of

the

Treaty;

(c) the Committee on Agricultural Structures and

Rural Development;

(d) the Committee on Structures for Fisheries and

Aquaculture.

the

Committees

2. Where
in
paragraph 1(a), (c) and (d) are acting as Consultative
Committees pursuant
to Articles 48, 50 and 51
respectively, the following procedure applies:

mentioned

— the Commission representative shall submit to the
committee a draft of the measure to be taken,

— the committee shall deliver its opinion on this draft
within a time limit which the chairman may lay
down according to the urgency of the matter; the
matter may be put to a vote where appropriate,

— the committee shall deliver its opinion on this draft
within a time limit which the chairman may lay
down according to the urgency of the matter under
consideration. The opinion shall be delivered by
the majority stipulated in Article 205(2) of the
Treaty in the case of decisions which the Council is
requested to adopt on a proposal
from the
Commission. When a matter is put to the vote
within the committee, the votes of the Member
States’
as
provided for in the said Article. The chairman shall
not vote,

shall be weighted

representatives

— the Commission shall adopt measures which shall
apply immediately. However,
if they are not in
accordance with the opinion delivered by the
committee, they shall be communicated forthwith
by the Commission to the Council. In that event:

— the Commission may defer application of the
measure which it has decided for a period of
not more than one month from the date of
such communication,

— the Council, acting by a qualified majority,
may take a different decision within the time
limit provided for in the above sub-indent.

4.
The Commission shall refer the reports referred
to in Article 45 to the committees. It may seek the
opinion of a Committee on any matter concerning
than assistance
assistance under
the Funds, other
provided for
includes matters
primarily dealt with by other committees.

in this Title. This

5.
Each committee’s opinions shall be brought to
the attention of the other committees referred to in
this Title.

— its opinions shall be entered in the minutes; each
Member State shall in addition have the right to
ask for its position to be included in the minutes,

Each committee shall draw up its

6.
procedure.

rules of

— the Commission shall take the utmost account of
the opinions delivered by the committee. It shall
inform the committee of the manner in which it
takes account of its opinions.

the

3. Where
in
paragraph 1(a), (c) and (d) are acting as Management
Committees pursuant
to Articles 48, 50 and 51
respectively, the following procedure applies:

committees

mentioned

— the Commission representative shall submit to the
committee a draft of the measure to be taken,

The European Parliament
7.
informed of the work of the committees.

shall be regularly

Article 48

Committee on the Development and Conversion of
Regions

A Committee

1.
and
Conversion of Regions, made up of Member
States’ representatives and chaired by a Commission
representative, is hereby set up under the auspices of

the Development

on

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the Commission. The EIB shall appoint a non-voting
representative.

The committee shall act as a Management
2.
Committee according to the procedure laid down in
Article 47(3) when it deals with:

(a) the implementing rules referred to in Article 53(2).

Other committees shall be consulted under their
consultative competence on the abovementioned
are
implementing
concerned;

in so far

rules,

they

as

two

two representatives of the workers’
representatives,
organisations
the
representatives
and
employers’ organisations from each Member State.
the Commission responsible for
The Member of
that
chairing
responsibility to a senior Commission official.

committee may

delegate

the

of

for

each Member State, an alternate

shall be
For
appointed
representative
mentioned in the first paragraph. In the absence of
one or both members,
shall be
automatically entitled to take part in the proceedings.

alternate

category

each

the

of

(b) the implementing rules referred to in Article 5 of
Regulation (EC) No 1261/1999 of the European
Parliament and of the Council of 21 June 1999 on
the
Fund
European Regional Development
(ERDF) (1);

The members and alternates shall be appointed by the
Council, acting on a proposal from the Commission,
for a period of three years. They may be reappointed.
The Council shall, as regards the composition of the
committee, endeavour to ensure fair representation of
the different groups concerned. For the items on the
agenda affecting it, the EIB shall appoint a non-voting
representative.

(c) the guidelines relating to the Community initiatives
((cid:28)Interreg’) and

referred to in Article 20(1)(a)
20(1)(b) ((cid:28)Urban’);

2.

The committee shall:

(d) the guidelines for the different types of innovative
measures provided for in application of Article 22,
in the case of support from the ERDF.

3.
The committee acts as a consultative committee
according to the procedure laid down in Article 47(2)
when it discusses the following matters:

(a) establishment and revision of
eligible under Objective 2;

the list of areas

(b) the Community support

frameworks and the
corresponding information contained in the single
programming documents, under Objectives 1 and
2;

(c) the

types of

in
accordance with Article 23 in the case of support
from the ERDF;

technical-assistance measure

(d) any other questions concerning Articles 20 to 22.

Article 49

Committee pursuant to Article 147 of the Treaty

(a) deliver opinions on the draft Commission decisions
relating to single programming documents and to
Community support frameworks under Objective 3
as well as
on the Community support
frameworks and
corresponding information contained in the single
programming documents, under Objectives 1 and
2, in the case of support from the ESF;

(b) deliver

its opinion on the implementing rules

provided for in Article 53(2);

(c) be consulted on the implementing rules referred to
in Article 8 of Regulation (EC) No 1262/1999 of
the European Parliament and of the Council of
21 June 1999 on the European Social Fund
(ESF) (2) ;

(d) deliver opinions on draft Commission guidelines
relating to the Community initiative referred to in
Article 20(1)(d) ((cid:28)EQUAL’) and for the various
types of
innovative measure in the context of
Article 22 in the case of support from the ESF. The
Commission may also refer further questions to it
within the meaning of Articles 20 to 22;

1.
the Treaty shall be composed of

The committee set up pursuant to Article 147 of
two government

(e) be consulted on the types of technical-assistance
measure in accordance with Article 23 in the case
of support from the ESF.

(1) See page 43 of this Official Journal.

(2) See page 48 of this Official Journal.

26.6.1999

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L 161/39

3.
For their adoption, the opinions of the committee
shall require an absolut majority of the votes validly
cast. The Commission shall inform the committee of
the manner in which it has taken account of
its
opinions.

Article 51

Committee on Structures for Fisheries and
Aquaculture

Article 50

Committee on Agricultural Structures and Rural
Development

A Committee on Agricultural Structures and
1.
Rural Development, made up of Member States’
representatives
a Commission
chaired
representative, is hereby set up under the auspices of
the Commission. The EIB shall appoint a non-voting
representative.

and

by

The Committee

2.
a Management
acts
Committee according to the procedure laid down in
Article 47(3) when it deals with:

as

1.
A Committee on Structures for Fisheries and
Aquaculture, made
up
States’
a Commission
chaired
and
representatives
representative, is hereby set up under the auspices of
the Commission. The EIB shall appoint a non-voting
representative.

of Member

by

2.
The committee shall act as a Management
Committee according to the procedure laid down in
Article 47(3) when it deals with:

(a) the implementing rules referred to in Article 4 of

Regulation (EC) No 1263/1999;

(a) the

implementing rules and transitional
rules
referred to in Articles 34, 50 and 53 of Regulation
(EC) No 1257/1999;

(b) the guidelines for the different types of innovative
measures provided for in application of Article 22,
in the case of support from the FIFG.

(b) the guidelines relating to the Community initiative

referred to in Article 20(1)(c) ((cid:28)Leader’).

3.
The committee acts as a Consultative Committee
according to the procedure laid down in Article 47(2)
when it discusses the following matters:

(a) the establishment and revision of the list of areas

eligible under Objective 2;

(b) the

of
the
structures

parts
intervention
concerning
and rural development
agricultural
included in the draft Commission decisions relating
to the Community
frameworks and
corresponding information contained in the single
for the regions under
programming documents,
Objectives 1 and 2;

support

(c) the implementing rules referred to in Article 53(2);

(d) the

types of

in
accordance with Article 23 in the case of support
from the EAGGF;

technical-assistance measure

The

committee

3.
shall act as a Consultative
Committee according to the procedure laid down in
Article 47(2) when it discusses the following matters:

(a) the establishment and revision of the list of areas

eligible under Objective 2;

(b) the parts of the intervention concerning fisheries
structures
included in the draft Commission
Decision relating to the Community support
information
frameworks
contained in the single programming documents
under Objective 1;

corresponding

and

(c) the

implementing

rules

provided

for

in

Article 53(2);

(d) the

types of

in
accordance with Article 23 in the case of support
from the FIFG;

technical-assistance measure

(e) any other questions concerning Articles 20 to 22.

(e) any other questions concerning Article 22.

L 161/40

EN

Official Journal of the European Communities

26.6.1999

TITLE VII

FINAL PROVISIONS

Article 52

Transitional provisions

no later than 30 September 2003, giving rise to the
repayment of amounts unduly paid, without prejudice
to operations or programmes which have been
suspended on account of legal proceedings.

including

This Regulation shall not affect the continuation
1.
or modification,
total or partial
cancellation, of assistance approved by the Council or
by
the Commission on the basis of Council
Regulations (EEC) No 2052/88 and (EEC) No 4253/
88 or any other legislation which applied to that
assistance on 31 December 1999.

the

2.
Applications for a contribution from the Funds
towards operations which are submitted pursuant to
Regulations (EEC) No 2052/88 and (EEC) No 4253/
88 shall be
the
Commission on the basis of those Regulations no later
than 31 December 1999.

considered and approved by

3.
In drawing up Community support frameworks
and assistance, the Commission shall take account of
any measure already approved by the Council or by
the Commission before the entry into force of this
Regulation and having financial repercussions during
the period covered by those support frameworks and
assistance. These measures shall not be subject
to
compliance with Article 30(2).

date

specified

4. Notwithstanding
in
the
Article 30(2), expenditure actually paid, in respect of
which the Commission has received an application for
assistance between 1 January and 30 April 2000 and
the conditions laid down in this
which fulfils all
Regulation, may be
for a
contribution from the Funds from 1 January 2000.

regarded as

eligible

sums

Partial

5.
committed for operations or
programmes approved by the Commission before
in respect of which no
1 January 1994, but
application for final payment has been received by
31 March 2001, shall be automatically decommitted
no later than 30 September 2001, giving rise to the
repayment of amounts unduly paid, without prejudice
to operations or programmes which have been
suspended on account of legal proceedings.

Article 53

Implementation

The Commission shall be in charge of

1.
implementation of this Regulation.

the

The Commission shall adopt detailed rules to
2.
in
implement Articles 30, 33, 38, 39 and 46,
accordance with Article 48(2)(a).
in
It shall also,
accordance with the same procedure and where it
appears necessary in unforeseen circumstances, adopt
other rules for the implementation of this Regulation.

Article 54

Repeal

Regulations (EEC) No 2052/88 and (EEC) No 4253/
88 are hereby repealed with effect from 1 January
2000, without prejudice to Article 52(1).

References
construed as references to this Regulation.

repealed Regulations

to the

shall be

Article 55

Review clause

The Council shall review this Regulation on the basis
of a proposal from the Commission by 31 December
2006 at the latest.

It shall act on the proposal in accordance with the
procedure laid down in Article 161 of the Treaty.

Article 56

Entry into force

Partial sums committed for operations or programmes
approved by the Commission between 1 January 1994
and 31 December 1999, but in respect of which no
application for final payment has been received by
31 March 2003, shall be automatically decommitted

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

Articles 28, 31 and 32 shall apply from 1 January
2000.

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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

L 161/42

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Official Journal of the European Communities

26.6.1999

ANNEX

STRUCTURAL FUNDS

Annual breakdown of commitment appropriations for 2000 to 2006

(referred to in Article 7(1))

2000

2001

2002

2003

2004

2005

2006

29 430

28 840

28 250

27 670

27 080

27 080

26 660

(EUR million — 1999 prices)