Commission Regulation (EC) No 1750/1999 of 23 July 1999 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)
Date: 1999-07-23
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EAGGF Guidance Section, State aid, aid to agriculture, regional aid, rural development

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COMMISSION REGULATION (EC) No 1750/1999

of 23 July 1999

laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on
support for rural development from the European Agricultural Guidance and Guarantee Fund
(EAGGF)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Com-
munity,

Having regard to Council Regulation (EC) No 1257/1999 of
17 May 1999 on support for rural development from the
European Agricultural Guidance and Guarantee Fund (EAGGF)
and amending and repealing certain Regulations (1) and in
particular Articles 34 and 50 thereof,

(1) Whereas Council Regulation (EC) No 1257/1999 has
established a single legal framework for support from
EAGGF for rural development, defining, in particular, in
its Title II, measures for support, their objectives, and the
criteria for eligibility; whereas this framework applies to
rural development support all over the Community;

(2) Whereas detailed rules should be adopted to complete
this framework; whereas the rules should follow the
principle of subsidiarity and should therefore be limited
to those rules needing to be adopted at Community level;

(3) Whereas detailed rules defining the eligibility criteria for
the different rural development measures should take into
account experience gained from existing instruments as
applied under the various Council regulations which have
been repealed according to Article 55 (1) of Regulation
(EC) No 1257/1999;

(4) Whereas, as regards support for investment in agricultural
holdings and in processing plants as well as for support
for young farmers, Regulation (EC) No 1257/1999 lays
down three basic conditions; whereas the time at which
those conditions have to be fulfilled should be defined,
including the time for the demonstration of the economic
viability of an agricultural holding applying for an invest-
ment aid, which should be based on an assessment of the
prospects of that holding;

(5) Whereas, as regards investments in holdings and in
processing plants, Community support is subject to the
condition that normal market outlets for the products
concerned can be found; whereas rules should be estab-
lished for the assessment of such market outlets;

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

(6) Whereas support

for vocational
extend to normal agricultural and forestry education;

training should not

(7) Whereas conditions for early retirement support should
be based on the experience acquired under the support
scheme established by Council Regulation (EEC) No
2079/92 (2) as last amended by Commission Regulation
(EC) No 2773/95 (3),

(8) Whereas, in particular, specific problems arising from the
transfer of a holding by several transferors, and from the
transfer of a holding by a tenant farmer have to be solved;

(9) Whereas in less favoured areas, in relation to areas used
by several farmers in common, compensatory allowances
should be available to each farmer using those areas,
regard being had to the degree to which he is entitled to
such use;

(10) Whereas detailed rules for agri-environment support
should be based on the experience acquired under the
support scheme established by Council Regulation (EEC)
No 2078/92 of 30 June 1992 (4), as last amended by
Commission Regulation (EC) No 2772/95 (5), and should
in particular take into account existing rules established
by Commission Regulation (EC) No 746/96 (6), as last
amended by Regulation (EC) No 435/97 (7).

(11) Whereas the definition of the minimum conditions to be
observed by farmers in connection with the various
agri-environment undertakings should ensure balanced
application of agri-environment support
taking into
account its objectives and thus contributing to a sustain-
able rural development;

(12) Whereas the selection criteria for investment aimed at
improving the processing and marketing of agricultural
products should be defined; whereas in view of the
experience acquired in the existing support scheme, set
up by Council Regulation (EC) No 951/97(8), these
selection criteria should be based or general principles
rather than sectorial rules;

(2) OJ L 215, 30.7.1992, p. 91.
(3) OJ L 288, 1.12.1995, p. 37.
(4) OJ L 215, 30.7.1992, p. 85.
(5) OJ L 288, 1.12.1995, p. 35.
(6) OJ L 102, 25.4.1996, p. 19.
(7) OJ L 67, 7.3.1997, p. 2.
(8) OJ L 142, 2.6.1997, p. 22.

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(13) Whereas it is appropriate to derogate from the provision
contained in the second indent of Article 28(1) of
Regulation (EC) No 1257/1999 which excludes support
in the processing and marketing of
for investment
products from third countries in the outermost regions
of the Community, whereas that derogation should
nonetheless be subject to certain conditions;

(21) Whereas, in order to facilitate the establishment of rural
development plans and their examination and approval
by the Commission, common rules should be determined
for the structure and the contents of those plans on the
basis of the requirements set out in particular in Article
43 of Regulation (EC) No 1257/1999;

(14) Whereas certain forests which are excluded from support
for forestry under Article 29(3) of Regulation (EC) No
1257/1999 should be further defined;

(15) Whereas detailed conditions should be laid down for
support granted for the afforestation of agricultural land
and for payments granted for activities to maintain and
improve the ecological stability of forests,

(16) Whereas according to Article 33 of Regulation (EC) No
1257/1999, support
is granted for other measures
relating to farming activities and their conversion and to
rural activities, provided that they do not fall within the
scope of any other rural development measure; whereas,
given the large variety of measures which could fall
under this Article, it appears appropriate to leave the
definition of conditions for support in the first place to
Member States as part of their programming;

(17) Whereas rules common to several measures should be
established, assuring in particular a common standard of
good farming practice, where measures refer to this
criterion, and guaranteeing such flexibility for long term
undertakings as is needed to take account of events
which could affect those commitments, but without
jeopardising the effective implementation of the various
support measures;

(18) Whereas a clear line of demarcation should be drawn
between financing rural development support and finan-
cing support under common market organisations;
whereas any exceptions to the principle that measures
falling within the scope of support schemes under
common market organisations should not be eligible for
rural development support should be proposed by
Member States in the framework of rural development
programming, according to their specific need and
following a transparent procedure;

(19) Whereas payments made in pursuance of rural develop-
ment support should be made in full to the beneficiaries;

(22) Whereas conditions for amendments of rural develop-
ment programming documents should be established in
order to allow an effective and speedy examination by
the Commission of such amendments;

(23) Whereas only those

amendments which contain
important changes to rural development programming
documents should be subject to the management com-
mittee procedure; whereas other amendments should be
decided by Member States and communicated to the
Commission;

(24) Whereas detailed provisions should be established as to
financial planning and as to participation in financing
for those measures which are financed by the EAGGF
Guarantee Section according to Article 35(1) and (2) of
Regulation (EC) No 1257/1999;

(25) Whereas,

in this connection, Member States should
report regularly to the Commission on the state of
financing of rural development measures;

(26) Whereas measures have to be taken to ensure the
effective spending of funds reserved for rural develop-
ment support, provision being made in particular for an
initial advance payment and for the necessary adjustment
of allocations according to needs and to past perform-
ance;

(27) Whereas the general rules concerning budgetary disci-
pline, and in particular those relating to incomplete or
incorrect declarations on the part of Member States,
should apply in addition to the specific rules established
by this Regulation;

(28) Whereas details of

financial administration of rural
development measures will be governed by the rules
adopted for the implementation of Council Regulation
(EC) No 1258/1999 of 17 May 1999 on the financing
of the common agricultural policy (1);

(29) Whereas procedures and requirements for monitoring
and evaluation should be established on the basis
of principles applicable to other Community support
measures,
in particular those applying to Structural
Funds as laid down by Council Regulation (EC) No
1260/1999 of 21 June 1999 laying down general
provisions on the Structural Fund (2);

(20) Whereas detailed rules should be established for the
rural development plans and their

presentation of
revision;

(1) OJ L 160, 26.6.1999, p. 103.
(2) OJ L 161, 26.6.1999, p. 1.

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(30) Whereas administrative provisions should permit better
administration monitoring and control of
the rural
development support; whereas measures are in the
interest of simplicity should be based as far as possible
on existing rules such as the integrated administration
and control system set out in Council Regulation (EEC)
No 3508/92 (1), as last amended by Regulation (EC)
No 1036/99 (2) and in Commission Regulation (EEC)
No 3887/92 (3), as amended by Regulation (EC)
No 1678/98 (4);

(31) Whereas it is appropriate to provide, both at Community
and at Member State level, for a system of penalties to
be imposed;

(32) Whereas it is appropriate to repeal Commission Regu-
lations (EEC) No 2084/80 (5), (EEC) No 220/91 (6), as
last amended by Regulation (EC) No 1183/98 (7),
(EC) No 1025/94 (9),
Regulation (EC) No 860/94 (8),
1282/94 (11),
(EC) No
1682/94 (13),
(EC) No
(EC) No 1844/94 (14), (EC) No 746/96, and also Com-
mission Decisions 92/522/EEC (15) and 94/173/EC (16),
the provisions of which have become obsolete or are
replaced by the provisions of this Regulation;

1054/94 (10),
1404/94 (12),

(EC) No
(EC) No

CHAPTER II

RURAL DEVELOPMENT MEASURES

SECTION 1

Investment in agricultural holdings

Article 2

The conditions laid clown in Article 5 of Council Regulation
(EC) No 1257/1999 must be fulfilled at the time when the
individual decision to grant support is taken.

However, where investments are made in order to comply
with newly introduced minimum standards regarding the
environment, hygiene, and animal welfare, support may be
granted in order to reach these new standards. In this case, a
time period may be provided for the fulfilment of these
minimum standards, where such a period is necessary to solve
the specific problems in reaching such standards and where
this period is in accordance with the specific legislation
concerned.

(33) Whereas the Committee on Agricultural Structures and
Rural Development has not delivered an opinion within
the time-limit set by its chairman,

Article 3

HAS ADOPTED THIS REGULATION:

1.
For the purpose of Article 6 of Council Regulation (EC)
No 1257/1999, the existence of normal market outlets shall
be assessed on the appropriate level in terms of:

CHAPTER I

OBJECTIVE

Article 1

This Regulation lays down detailed rules for the application of
Regulation (EC) No 1257/1999.

(1) OJ L 355, 5.12.1992, p. 1.
(2) OJ L 127, 21.5.1999, p. 4.
(3) OJ L 391, 31.12.1992, p. 36.
(4) OJ L 212, 30.7.1998, p. 23.
(5) OJ L 203, 5.6.1980, p. 9.
(6) OJ L 26, 31.1.1991, p. 15.
(7) OJ L 164, 9.6.1998, p. 5.
(8) OJ L 99, 19.4.1994, p. 7.
(9) OJ L 112, 3.5.1994, p. 27.
(10) OJ L 115, 6.5.1994, p. 6.
(11) OJ L 140, 3.6.1994, p. 14.
(12) OJ L 154, 21.6.1994, p. 8.
(13) OJ L 178, 12.7.1994, p. 42.
(14) OJ L 192, 28.7.1994, p. 9.
(15) OJ L 329, 16.11.1992, p. 1.
(16) OJ L 79, 23.3.1994, p. 29.

(a) the products concerned,

(b)

the types of investments,

(c) existing and expected capacities.

2.
Any restrictions on production, or limitations of Com-
munity support under common market organisations shall be
taken into account.

3. Where under a common market organisation, restric-
tions on production or limitations of Community support
exist at the level of individual farmers, holdings or processing
plants, no investment shall be supported which would increase
production beyond those restrictions or limitations.

Article 4

1. Where investments are undertaken by young farmers,
the maximum percentages of the volume of eligible investment
as referred to in the second sentence of the second paragraph
of Article 7 of Council Regulation (EC) No 1257/1999 may be
applied within a period up to five years after setting-up.

The second paragraph of Article 5 also applies to
2.
investments undertaken by young farmers within a five year
period after setting-up.

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SECTION 2

Article 10

Setting-up of young farmers

Released land may be included in a re-parcelling operation or
in a simple exchange of parcels.

Article 5

The conditions laid down in Article 8(1) of Council Regulation
(EC) No 1257/1999 must be fulfilled at the time when the
individual decision to grant support is taken.

However, as far as occupational skill and competence, econ-
omic viability and minimum standards regarding the environ-
ment, hygiene and animal welfare are concerned, a time period
not exceeding three years after setting-up may be foreseen for
the fulfilment of these conditions, insofar as an adaptation
period is necessary to facilitate the establishment of the young
farmer or the structural adjustment of his holding.

SECTION 3

Training

Article 6

Support for vocational training shall not include courses of
instruction or training which form part of normal programmes
or systems of agricultural and forestry education at secondary
or higher levels.

SECTION 4

Early retirement

Article 7

Where a farm is transferred by several transferors, overall
support shall be limited to the amount provided for one
transferor.

Article 8

Non-commercial farming activity continued by the transferor
in accordance with the first indent of Article 11(1) of Council
Regulation (EC) No 1257/1999 shall not be eligible for support
under the common agricultural policy.

In such cases, the conditions applicable to released land shall
be applied to areas agronomically equivalent to those of the
released land.

Member States may make provision for released land to be
taken in charge by a body which undertakes to reassign it at a
later date to a transferee who satisfies the conditions laid down
for early retirement.

SECTION 5

Less favoured areas and areas with environmental restric-
tions

Article 11

Compensatory allowances in relation to areas used by several
farmers in common for the purpose of grazing animals may
be granted to each farmer using these areas in proportion to
his use or, right of use, of the land.

SECTION 6

Agri-environment

Article 12

An undertaking to extensify livestock farming or otherwise to
manage livestock farming shall comply with, at least, the
following conditions:

(a) grassland management shall continue,

(b) the livestock shall be distributed across the farm in such a
way that the whole of the grazed area is maintained, thus
avoiding both over-grazing and under-utilization,

and

(c)

livestock density must be defined taking into account all
grazing livestock kept on the farm, or in the case of an
undertaking aimed at limiting nutrient leaching, all live-
stock kept on the farm relevant to the undertaking in
question.

Article 9

Article 13

A tenant farmer may transfer the released land to the owner
provided that the lease is terminated and the requirements
relating to the relevant transferee as laid down in Article 11(2)
of Council Regulation (EC) No 1257/1999 are complied with.

Support may include agri-environmental commitments for:

(a) rearing farm animals of local breeds indigenous to the area

and in danger of extinction,

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and

(b) preserving plant genetic resources naturally adapted to the
local and regional conditions and under threat of genetic
erosion.

The local breeds and plant genetic resources must play a role
in maintaining the environment in the given area to which the
measure will apply.

Article 14

For the purpose of the second subparagraph of Article 24(1)
of Council Regulation (EC) No 1257/1999, capital works shall
be considered to be non-remunerative provided that they do
not normally lead to any significant net increase in farm value
or profitability.

Article 15

Agri-environment commitments beyond the minimum period
of five years referred to in Article 23(1) of Council Regulation
(EC) No 1257/1999 shall not be determined for a longer
period than that which is reasonably necessary for the
realisation of their environmental effects. They shall normally
be no longer than 10 years, except in the case of specific
undertakings where a longer period is deemed to be indispens-
able.

Article 16

Various agri-environment commitments may be combined
with one another provided that the commitments are comp-
lementary and compatible.

Where there is such a combination, the level of support shall
take account of income forgone and specific additional costs
arising from the combination.

Article 17

The reference level for calculating income forgone and
1.
additional costs resulting from the undertaking given shall be
the usual good farming practice in the given area to which the
measure applies.

Where it is justified by the agronomic or environmental
circumstances to do so, the economic consequences of aban-
donment of land or cessation of certain farm practices may be
taken into account.

2.
Payments may not be made per unit of production,
except in the case of support for rearing farm animals in
danger of extinction, which may be paid per livestock unit or
commitments are normally
per animal
expressed in units other than area, Member States may
calculate payments on the basis of those units.

reared. Where

Member States shall ensure that the maximum amounts per
year eligible for Community support as set out in the Annex
to Regulation (EC) No 1257/1999 are observed. To this end
the Member State may:

(a) set a limit on the number of units per hectare of the farm

to which agri-environmental commitments apply,

or

(b) determine the overall maximum amount on each partici-
pating farm and ensure that the payments for each holding
are compatible with this limit.

Payments shall be based on limitations on the use of
3.
fertilisers, plant protection products or other inputs only if
such limitations are technically and economically measurable.

Article 18

Member States shall determine the need to provide an incentive
as provided for in the third indent of Article 24(1) of the
Council Regulation (EC) No 1257/1999 on the basis of
objective criteria.

The incentive shall not exceed 20 % of the income forgone
and additional costs due to the commitment given, except in
the case of specific commitments where a higher rate is
deemed to be indispensable for the effective implementation
of the measure.

Article 19

A farmer who gives an agri-environment commitment as to
one part of a farm shall adhere to at least the standard of usual
good farming practice throughout the farm.

Article 20

1. Member States may authorise the transformation of one
commitment into another commitment during the period of
operation of the commitments, on condition that:

(a) any such transfer is of unquestionable benefit to the

environment,

(b) the existing commitment is significantly reinforced,

and

(c) the approved programme includes the commitments con-

cerned.

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Under the conditions set out in points (a) and (b) of the
first subparagraph, a transformation of an agri-environment
commitment into a commitment for afforestation of agricul-
tural land according to Article 31 of the Council Regulation
may be authorised. The agri-environment commitment shall
cease without reimbursement being required.

2. Member States may provide for adjustment of commit-
ments during the period of operation, provided that:

(a) the approved programme includes scope for such adjust-

ment,

and

(b) the adjustment is duly justified, having regard to the

objectives of the undertaking.

Article 23

In outermost regions, support may be granted for investment
in the processing or marketing of products from third
countries, subject to the condition that the processed products
are destined for the market of the region in question. For the
purpose of compliance with this condition, support shall be
limited to processing capacities which correspond to regional
needs, provided that the processing capacities do not exceed
regional needs.

SECTION 8

Forestry

Article 24

SECTION 7

Improving processing and marketing of agricultural
products

Forests excluded from support under Article 29(3) of Council
Regulation (EC) No 1757/1999 shall be:

(a) forest or other wooded land owned by central or regional
governments, or by government-owned corporations,

Article 21

(b) crown forest and other wooded land,

Eligible expenditure may include:

(a) the construction and acquisition of immovable property,

with the exception of land purchase,

(c)

forests owned by legal persons at least 50 % of whose
capital is held by one of the institutions referred to in
points (a) and (b).

(b) new machinery and equipment

including computer

software,

Article 25

(c) general costs, such as architects’, engineers’ and consul-
tants’ fees, feasibility studies, acquisition of patents and
licences, in addition to expenditure as referred to in (a) and
(b) and up to a ceiling of 11 % of that expenditure.

Agricultural land eligible for support for afforestation accord-
ing to Article 31 of Council Regulation (EC) No 1257/1999
shall be specified by the Member State and shall include in
particular arable land, grassland, permanent pastures and land
used for perennial crops, where farming takes place on a
regular basis.

Article 22

1.
For the purpose of Article 26(3) of Council Regulation
(EC) No 1257/1999, the existence of normal market outlets
shall be assessed on the appropriate level in relation to:

(a) the products concerned,

(b) the types of investments,

(c) existing and excepted capacities.

Article 26

1.
For the purpose of the second indent of the second
subparagraph of Article 31(1) of Council Regulation (EC)
No 1257/1999, a ‘farmer’ shall be a person who devotes an
essential part of his working time to agricultural activities and
derives from it a significant part of his income according to
detailed criteria to be determined by the Member State.

Any restrictions on production, or limitations of Com-
2.
munity support under common market organisations shall be
taken into account.

2.
For the purpose of Article 31(3), subparagraph 2, of
Council Regulation (EC) No 1257/1999, ‘fast-growing species
cultivated in the short term’ shall mean species, the rotation
time (the interval separating at the same place two harvest
cuts) of which is less than 15 years.

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Article 27

Support under Article 32 of Council Regulation (EC)
1.
No 1257/1999 may not be granted in relation to areas for
which support under Article 31 of that Regulation has been
granted.

2.
Payments with a view to maintaining fire-breaks through
agricultural measures, according to Article 32(1) second indent
of Council Regulation (EC) No 1257/1999 shall not be granted
for areas which are the subject of agri-environment support.

They shall be consistent with any restrictions on production
or limitations of Community support under common market
organisations and shall take into account payments made
under those common market organisations.

2. When, during the period of operation of a commitment
given as a condition for the grant of support, a beneficiary
increases the area of his holding, Member States may provide
for:

(a) the extension of the commitment to the additional area for
the remainder of the period of the commitment, on
condition that any such extension:

(i)

is of unquestionable benefit to the measure concerned,

(ii) is justified in terms of the nature of the commitment,
the length of the remaining period, and the size of the
additional area which must be significantly less than
the original area or not more than two hectares,

and

(iii) does not diminish the effective verification of com-
pliance with the conditions for the grant of support,

SECTION 9

or

Rules common to several measures

Article 28

For the purposes of Council Regulation (EC) No 1257/1999
and of this Regulation, ‘usual good farming practice’ is the
standard of farming which a reasonable farmer would follow
in the region concerned.

Member States shall set out verifiable standards in their rural
development plans. In any case, these standards shall entail
compliance with general mandatory environmental require-
ments.

Article 29

1. When, during the period of operation of a commitment
given as a condition for the grant of support, a beneficiary
transfers all or part of his holding to another person, the latter
may take over the commitment for the remainder of the
period.
the beneficiary shall
reimburse the support granted.

this does not take place,

If

Member States may choose not to require such reimbursement
if, in the case of a definitive cessation of agricultural activities
by a beneficiary who has already honoured a significant part
of his commitment, a takeover of the commitment by a
successor proves not to be feasible.

Member States may take specific measures, in the event of
minor changes to the situation of the holding, to prevent
the application of the first subparagraph from leading to
inappropriate results in terms of the commitment entered into.

(b) the replacement of the beneficiary’s original commitment
by a new commitment for the whole area concerned under
terms at least as strict as those of the original commitment.

Point (b) shall also apply in cases where the area subject to a
commitment is extended within the holding.

3. Where a beneficiary is unable to continue complying
with commitments given, by virtue of the fact that the holding
is subject to reparcellation or other similar public exercise of
land consolidation, Member States shall take the measures
necessary to provide for the adaptation of the commitments
to the new situation of the holding. If such adaptation proves
impossible, the commitment shall expire and reimbursement
shall not be required in respect of the period in which the
commitment was effective.

Article 30

1. Without prejudice to the actual circumstances to be
taken into consideration in individual cases, Member States
may recognize, in particular, the following categories of force
majeure:

(a) death of the farmer;

(b) long-term professional incapacity of the farmer;

(c) expropriation of a large part of

the holding if such
expropriation could not have been anticipated on the day
on which the commitment was given;

(d) a severe natural disaster gravely affecting the holdings’

agricultural land;

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(e) the accidental destruction of livestock buildings on the

(c)

holding;

(f) an epizootic affecting part or all the farmer’s livestock.

in the case of support for less-favoured areas and support
for environmental restrictions, agri-environment commit-
ments shall take into account the conditions laid down for
the support in the areas concerned.

Member States shall notify the Commission of categories
which they recognize as force majeure.

2.
Cases of force majeure with relevant evidence to the
satisfaction of the competent authority shall be lodged in
writing with the competent authority within 10 working days
of the date on which the farmer is in a position to do so.

CHAPTER III

Where there is such a combination, the leveL of support shall
take account of income forgone and specific additional costs
arising from the combination.

In no case may the same commitment be the subject of
payments simultaneously under agri-environment support and
under another Community aid scheme.

3.
Any exception referred to in the first indent of the
second subparagraph of Article 37(3) of Council Regulation
(EC) No 1257/1999 shall be proposed by Member States in
the framework of rural development plans.

GENERAL

PRINCIPLES, ADMINISTRATIVE AND

FINANCIAL PROVISIONS

Article 32

Payments under rural development measures shall be made in
full to the beneficiaries.

SECTION 1

General principles

Article 31

SECTION 2

Programming

Article 33

For the application of the second subparagraph of Article
1.
37(3) of Council Regulation (EC) No 1257/1999, the criteria
set out in paragraphs 2 and 3 of this Article shall apply.

2.
Environmental measures implemented under common
market organisations, agricultural quality and health measures,
or under
than agri-
rural development measures other
environment support, do not preclude agri-environment sup-
port for the same productions, provided that such support is
additional and consistent with those measures.

In this context:

(a) agri-environment measures on land set aside pursuant to
Article 6 of Council Regulation (EC) No 1251/1999 (1)
shall qualify for support only if the commitments go
beyond the appropriate environmental measures referred
to in Article 6(2) of that Regulation;

(b) in the case of extensification of beef production, the aid
shall take account of the extensification payment made
pursuant to Article 13 of Council Regulation (EC) No
1254/1999 (2).

1.
Rural development plans shall be submitted in confor-
mity with Article 43 of Council Regulation (EC) No 1257/1999
and in accordance with the detailed requirements laid down in
the Annex to this Regulation.

2.
The approval pursuant to Article 44 (2) of Council
Regulation (EC) No 1257/1999 shall determine the overall
amount of Community support.

3.
The approval may cover State aid intended to provide
additional financing to rural development measures only if the
State aid is identified in accordance with point 16 of the
Annex.

4. Member States shall make rural development program-
ming documents available to the public.

Article 34

Where rural development measures are submitted in the form
of general framework regulations, rural development plans
shall make appropriate reference to such regulations.

(1) OJ L 160, 26.6.1999, p.1.
(2) OJ L 160, 26.6.1999, p. 21.

In such circumstances, the requirements of Article 33 shall be
fully adhered to.

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Article 35

SECTION 3

1.
Amendments to rural development programming docu-
ments shall be duly substantiated, in particular on the basis of
the following information:

(a) the reasons and problems of

implementation,

if any,

justifying adjustment of the programming document;

(b) the expected effects of the amendment;

(c) the implications for financing and verification of commit-

ments.

2.
The Commission shall approve in accordance with the
procedure laid down in Article 50(2) of Regulation (EC)
No 1260/1999 amendments to rural development program-
ming documents:

(a) affecting priorities;

Additional measures and community initiatives

Article 36

Pursuant
to Article 45 of Council Regulation (EC)
No 1257/1999, the scope of assistance from the EAGGF
Guidance section for measures in the Community initiative for
rural development is extended to the whole Community and
its financing extended to measures eligible under European
Parliament Council Regulations (EC) No 1261/1999 (1) and
(EC) No 1262/1 999 (2).

SECTION 4

Financial provisions

Article 37

(b) changing the main features of support measures as indi-
including changes to the rate of

cated in the Annex,
Community contribution;

The Member States shall forward to the Commission,
for each rural
later than 30 September each year,

1.
not
development programming document:

(c) changing the overall amount of Community support;

(d) changing the financial allocation for any measure by more
than either 25 % in relation to the amount provided for
the year concerned, for the measure concerned, or 5 % in
relation to the overall amount provided for the year
concerned whichever is greater, calculated on the basis of
the rural development programming document approved
by the Commission;

(a) a statement of expenditure incurred in the current financial
year and of expenditure remaining to be disbursed by the
end of that year,

and

(b) amended expenditure forecasts for subsequent financial
years until the end of the programming period in question,
in accordance with the allocation for each Member State.

(e) changing additional financing by means of State aid for
any measure by more than 25 % in relation to the amount
foreseen for the year concerned, for the measure concerned
or 5 % in relation to the overall amount foreseen for the
year concerned whichever is greater, calculated on the
basis of the rural development programming document
approved by the Commission.

2. Without prejudice to the general rules established for
budgetary discipline, where the information which Member
States are required to transmit to the Commission according
to paragraph 1 is incomplete or the time limit has not been
met, the Commission shall reduce advances on entry in the
accounts of agricultural expenditure on a temporary and
flat-rate basis.

Amendments shall be submitted to the Commission in a single
proposal per programme per year.

Article 38

Any other amendment shall be communicated to the Com-
mission at least two months before its entry into force.

For the month following the decision to approve a rural
development programming document the paying agencies
may enter into the accounts as expenditure an advance not
exceeding 12,5 % of the average annual budget of the total
Community allocations provided for in the programming
document in question.

3. Where necessary, rural development programming docu-
ments shall be revised in line with subsequent changes in
Community legislation. The second sentence of
the first
subparagraph of paragraph 2 shall not apply to such revisions.

(1) OJ L 161, 26.6.1999, p. 43.
(2) OJ L 161, 26.6.1999, p. 48.

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This advance shall represent working capital which in principle
may only be recovered at
the programming
period with respect to each rural development programming
document.

the end of

Article 39

1.
For each Member State, expenditure declared for any
given financial year shall be financed up to the limit of the
amounts notified to the Commission under point (b) of Article
37(1) which are covered by the appropriations entered in the
budget for the financial year in question.

2. Where expenditure actually incurred by a Member State
in any given financial year exceeds the amounts notified in
accordance with point (b) of Article 37(1), the overruns on
expenditure in that financial year shall be entered in the
accounts on a pro rata basis, up to the limit of the appropri-
ations remaining available after reimbursing the expenditure
incurred by the other Member States.

SECTION 5

Monitoring and evaluation

Article 41

Pursuant to Article 48(2) of Council Regulation (EC) No
1257/1999, annual progress reports shall be submitted to the
Commission by 30 April of each year covering the previous
calendar year. Each progress report shall contain the following
information:

(a) any change in the general conditions of relevance to the
implementation of the measure, and in particular any
major socio-economic trends, or changes in national,
regional or sectoral policies;

(b) the progress of measures and of priorities, with respect to
their operational and specific objectives, expressed as
quantitative indicators;

(c) the action taken by the management authority and the
monitoring committee, if any, to ensure high-quality and
effective implementation, and in particular:

3. Where expenditure actually incurred by a Member State
in a given financial year is less than 75 % of the amounts
referred to in paragraph 1, the expenditure to be recognised
for the following financial year shall be reduced by a third of the
difference between this threshold and the actual expenditure
incurred during the financial year in question.

(i) monitoring measures, financial control and evaluation,

including data collection procedures,

(ii) a summary of the major problems encountered in

managing the measure and any steps taken;

This reduction shall not be taken into account when estab-
lishing actual expenditure in the financial year following that
in which the reduction was made.

1.
Paragraph 3 shall not apply in relation to the first
declaration of expenditure under the rural development pro-
gramming document.

Article 40

Participation in the financing of evaluations in the Member
States pursuant to Article 49(2) of Council Regulation (EC)
No 1257/1999 shall apply to evaluations that effectively
contribute to the evaluation at Community level owing to
their scope, particularly through their replies to the common
evaluation questions, and through their quality.

(d) measures taken to ensure compatibility with Community

policies.

These indicators referred to in the first subparagraph, point (b),
shall, as far as possible follow a recommendation for common
indicators
to be provided by the Commission. Where
additional indicators are needed to monitor progress effectively
towards objectives of rural development programming docu-
ments, these shall also be included.

Article 42

Evaluations shall be performed by independent evalua-

1.
tors in accordance with recognised evaluation practice.

Evaluations shall

2.
in particular respond to common
evaluation questions defined by the Commission in consul-
tation with Member States and shall, as a general rule, be
accompanied by achievement related criteria and indicators.

The participation shall not exceed 50 % of a ceiling which,
except in duly justified cases, shall be 1 % of the total costs
the rural development programme. Within each rural
of
development program at least 40 % of the co-financing shall
concern the ex postevaluation.

3.
The authority responsible for managing the rural devel-
opment programming document shall assemble the appropri-
ate resources for evaluations, making use of monitoring results,
supplemented where necessary by the gathering of additional
information.

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Article 43

Article 45

1.
The ex ante evaluation shall analyse the disparities,
gaps and potentials of the current situation and assess the
consistency of the proposed strategy with the situation and
targets and have regard to the issues raised in the common
evaluation questions. It shall assess the expected impact of the
selected priorities for action and quantify their targets where
they lend themselves thereto. It shall also verify the proposed
implementing arrangements and the consistency with the
Common Agricultural Policy and other policies.

1.
A mid-term evaluation report shall be transmitted to the
Commission not later than 31 December 2003. The authority
responsible for managing the rural development programming
document shall inform the Commission about the follow-up
to the recommendations in this evaluation report. The Com-
mission shall prepare a Community-level synthesis upon
receipt of the individual evaluation reports. An update of the
mid-term evaluation shall be completed by 31 December 2005
where appropriate.

2.
The ex ante evaluation shall be the responsibility of the
authorities preparing the rural development plan and shall
form part of it.

Article 44

1.
The mid-term and ex post evaluations shall deal with the
specific questions for the rural development programming
document in question and with common evaluation questions
relevant at Community level. The latter shall involve the living
conditions and structure of the rural population, employment
and income from farm activities or off-farm activities, agricul-
tural structures, agricultural commodities, quality, competi-
If a common
tiveness,
evaluation question is considered inappropriate in relation to
a particular rural development programming document. this
shall be substantiated.

forest resources and environment.

2.
The mid-term evaluation, while covering the evaluation
questions, shall in particular examine the initial achievements,
their relevance and consistency with the rural development
programming document 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.

2.
An ex post evaluation report shall be transmitted to the
Commission not later than two years after the end of the
programming period. Within three years of the end of the
programming period and upon receipt of
the individual
evaluation reports the Commission shall prepare a Com-
munity-level synthesis.

3.
The evaluation reports shall explain the methodologies
applied, including the implications for the quality of the data
and the findings. They shall include a description of the context
and contents of the programme, financial information, the
answers including the utilised indicators to the common
evaluation questions and to the evaluation questions defined at
national or regional lever, conclusions and recommendations.
Their structure shall, as far as possible, follow a recommen-
dation for a common structure for the evaluation reports to
be provided by the Commission.

SECTION 6

Applications, controls and sanctions

Article 46

The ex post evaluation, while answering the evaluation ques-
tions, shall in particular examine the utilisation of resources
and the effectiveness and efficiency of the assistance and
its impacts and it shall draw conclusions regarding rural
development policy, including its contributions to the Com-
mon Agricultural Policy.

1.
Applications for rural development support relating to
areas or animals, which are lodged separately from aid
applications under Article 4 of Regulation (EEC) No 3887/92
shall indicate all areas and all animals of the holding relevant
for checking the applications under the measure in question,
including those for which no support is requested.

3.
The mid-term and ex post evaluations shall be performed
in consultation with the Commission under the responsibility
of the authority in charge of managing the rural development
programming.

2. Where a rural development support measure relates to
areas, it shall refer to individually identified parcels. During the
period of operation of an undertaking, parcels to which
support refers may not be exchanged save as otherwise
provided for in rural development programming document.

4.
The quality of individual evaluations shall be assessed by
the authority in charge of managing the rural development
programming document, the monitoring committee, if any,
and the Commission using recognised methods. The results of
the evaluations shall be available to the public.

3. Where the application for payment is included with an
application for area aid in the integrated control system, the
Member State shall ensure that parcels for which rural
development support is requested are declared separately in
the application for area aid in the integrated control system.

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Land areas and animals shall be identified in accordance

4.
with Articles 4 and 5 of Regulation (EEC) No 3508/92.

Moreover, Articles 11(1) (a), 12, 13 and 14 of Regulation
(EEC) No 3887/9 shall apply to such supports.

Article 47

1.
Initial applications to a scheme and successive appli-
cations for payment shall be checked in a manner which
ensures effective verification of compliance with the conditions
for the granting of the aid. In fine with the nature of the
support measure Member States shall define the systems and
means for their verification as well as the persons who shall be
subject to checks. In all appropriate cases, Member States shall
make use of the integrated administration and control system
established by Regulation (EEC) No 3508/92.

Verifications shall be carried out by means of adminis-

2.
trative and on-the-spot checks.

Administrative checks shall be exhaustive and shall
3.
include cross-checks, inter alia in all appropriate cases with
data from the integrated administration and control system,
on areas of land and livestock covered by a support measure
in order to avoid all unjustified payments of aid. Compliance
with long-term commitments shall also be checked.

4.
On-the-spot checks shall be made in accordance with
Articles 6 and 7 of Regulation (EEC) No 3887/92. They shall
cover at least 5 % of beneficiaries each year, covering all the
different types of rural development measures set out in the
programming documents.

On-the-spot checks shall be spread over the year in accordance
with an analysis of the risks presented by each rural develop-
ment measure. All commitments and obligations of a benefi-
ciary which it is possible to check at the time of the visit shall
be subject to checking.

Article 48

Article 9(1) and (2) of Regulation (EEC) No 3887/92
1.
shall apply to support granted on the basis of areas, and Article
10(2), (3), (7), (11) and (12) of that Regulation shall apply to
support granted on the basis of animals.

2. Member States shall determine a system of penalties to
be imposed in the event of breaches of the obligations entered
into and of regulatory provisions applicable to the case, and
shall take all necessary steps to put the system into operation.
Such penalties shall be effective, shall be commensurate with
their purpose and shall have an adequately deterrent effect.

3. Where it is found that a false declaration has been made
as a result of serious negligence, the beneficiary in question
shall be excluded from all rural development measures falling
under the relevant chapter of Council Regulation (EC) No
1257/1999 for the calendar year in question. In the case of a
false declaration made intentionally, he shall be excluded for
the following year as well. This penalty shall apply without
prejudice to additional penalties provided for under national
rules.

CHAPTER IV

FINAL RULES

Article 49

1.
Regulations (EEC) No 2084/80, (EEC) No 220/91, (EC)
No 860/94, (EC) No 1025/94, (EC) No 1054/94, (EC) No
1282/94,
(EC) No
1844/94, (EC) No 746/96 and Decisions 92/522/EEC and
94/173/EC are hereby repealed.

(EC) No 1682/94,

(EC) No 1404/94,

2.
The Regulations and Decisions repealed under paragraph
1 shall remain applicable to the actions approved by the
Commission before 1 January 2000, under the Regulations
referred to in Article 55(1) of Council Regulation (EC) No
1257/1999.

Article 50

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

It shall apply in relation to Community support as from
1 January 2000.

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

Done at Brussels, 23 July 1999.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX

RURAL DEVELOPMENT PLANS

1. Title of rural development plan

2. Member State and administrative region (if relevant)

3. 1. Geographical area covered by the plan

Article 41 of Regulation (EC) No 1257/1999

2. Regions classified as Objectives 1 and 2

Article 40 of Regulation (EC) No 1257/1999

Identify:

— Objective 1 regions and Objective 1 regions in transition. This applies only to the accompanying
measures (early retirement, compensatory allowances, agri-environment and afforestation of agricultural
land under Article 31 of Council Regulation (EC) No 1257/1999);

— Objective 2 regions. This applies to:

1) Accompanying measures

2) Other measures which do not form part of the Objective 2 programming.

4. Planning at the relevant geographical area

Article 41(2) of Regulation (EC) No 1257/1999

Where exceptionally more than one rural development plan will apply in the region, indicate:

— all the relevant plans;

— why it is not possible to integrate measures into a single plan;

— relationship between measures in the different plans and details as to how compatibility and consistency

between plans will be ensured.

5. Quantified description of the current situation

Article 43(1), first indent, of Regulation (EC) No 1257/1995

1. Description of the current situation

Describe, using quantified data, the current situation of the geographical area, highlighting strengths,
disparities, gaps and potential for rural development. This description shall concern the agricultural sector
and the forestry sector (including the nature and extent of handicaps in farming in any less favoured areas),
the rural economy, the demographic situation, human resources and employment and the state of the
environment.

2.

Impacts of the previous programming period

Describe the impacts of the financial resources deployed in the framework of the EAGGF relating to Rural
Development in the previous programming period and under the accompanying measures since 1992.
Present results of evaluations.

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3. Other information

Where relevant, extend description to measures in addition to Community rural development and
accompanying measures which had an impact on the programming area concerned.

6. Description of the strategy proposed, its quantified objectives, rural development priorities selected

and geographical area covered

Article 43(1), second indent, of Regulation (EC) No 1257/1999

1. Strategy proposed, quantified objectives, priorities selected

With regard to the identified strengths, disparities, gaps and potentials in the area concerned, describe in particular:

— the priorities for actions,

— the appropriate strategy to attain the priorities,

— the operational objectives and expected impacts, quantified where they lend themselves to quantification,

quantified as well in terms of monitoring as in terms of evaluation estimates,

— the extent to which the strategy takes account of the specific features of the areas concerned,

— the way the integrated approach has been included,

— the extent to which the strategy takes into account the integration of women and men,

— the extent to which the strategy takes into account all relevant international Community and national
environmental policy obligations, including those relating to sustainable development, in particular the
quality and use of water, conservation of biodiversity including on-farm conservation of crop varieties,
and global warming.

2. Description and effects of other measures

In addition, the description shall, where relevant, explain measures taken outside the frame of the rural
development plan (whether other Community measures or national measures, such as compulsory rules,
codes of practice and State aided measures) and the extent to which the identified needs will thus be met.

3. Areas covered by specific territorial measures

Describe for any measure as defined under point 8 which does not apply throughout the region indicated in
point 3, the zone of application.
In particular, define:

— the adopted list of less-favoured areas for the area concerned,

— any amendments to the list of less favoured areas with a due justification (Article 55(4) of Council

Regulation (EC) No 1257/1999),

— areas with environmental restrictions with a due justification.

4. Time-scheme and uptake

Proposed timetable for implementing the various measures, expected uptake, and duration (see also point
8).

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7. Appraisal showing the expected economic, environmental and social impacts

Article 43(1), third indent, of Regulation (EC) No 1257/1999

Detailed indications according to Article 43 [Regulation (EC) No 1257/1999].

8.

Indicative overall financial table

Article 43(1,) fourth indent, of Regulation (EC) No 1257/1999

Financial planning table: rural development programmes

Year 1

Year 2 ...

... Year 7

Total

Total
or public
cost (1)

UE contri-
bution (2)

Total
or public
cost (1)

UE contri-
bution (2)

Total
or public
cost (1)

UE contri-
bution (2)

Total
or public
cost (1)

UE contri-
bution (2)

(EUR million)

Priority A ...

Measure A1

Measure A2 ...

... Measure An

Total A

Priority B ...

Measure B1

Measure B2 ...

... Measure Bn

Total B

... Priority N

Measure N1

Measure N2 ···

... Measure Nn

Total N

Programme:

EAGGF Guarantee resources for measures for promoting the adaptation and development of rural areas (Article 33 of Regulation (EC) No
1257/1999) in Objective 2 (rural) areas: EUR million (% of total for Article 33)
(1) This column concerns forecast expenditure (in terms of either total or public cost), and is presented for indicative purposes.
(2) This column concerns the Community contribution for each measure. The Community contribution relating to expenditure

undertaken is calculated according to the rates and modalities set out for each measure in the programme.

Note: Where the same measure features under more than one priority, for purposes of financial management the Member
State shall provide an additional table consolidating all expenditures relating to the measure. This additional table shall
follow the structure of the above table and shall follow the order of the list below.

— Measures are defined as follows:

(a)

investment in agricultural holdings;

(b) setting up of young farmers;

(c)

training;

(d) early retirement;

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(e)

less favoured areas and areas with environmental restrictions;

(f)

agri-environment;

(g)

improving processing and marketing of agricultural products;

(h) afforestation of agricultural land;

(i) other forestry measures;

(j)

land improvement;

(k) reparcelling;

(l)

setting up of farm relief and farm management services;

(m) marketing of quality agricultural products;

(n) basic services for the rural economy and population;

(o) renovation and development of villages and protection and conservation of the rural heritage;

(p) diversification of agricultural activities and activities close to agriculture to provide multiple activities or

alternative incomes;

(q) agricultural water resources management;

(r) development and improvement of infrastructure connected with the development of agriculture;

(s) encouragement for tourist and craft activities;

(t) protection of the environment in connection with agriculture, forestry and landscape conservation as

well as the improvement of animal welfare;

(u) restoring agricultural production potential damaged by natural disasters and introducing appropriate

prevention instruments;

(v)

financial engineering.

9. Description of the measures contemplated for implementing the plans

Article 43(1), fifth indent, of Regulation (EC) No 1257/1999

For every point thereunder, provide:

A. Main features of support measures,

B. Other elements.

1. General requirements

A. Main features of support measures:

— list of measures in the order of Council Regulation (EC) No 1257/1999;

— identification of the single Article (and paragraph) under which each Rural development payment
measure falls. Where two or more articles are cited, the payment measure must be divided into its
constituent parts.

B. Other elements:

None.

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2. Requirements which concern all or several measures (1).

A. Main features:

— Community contribution based on either the total cost or public expenditure;

— aid intensifies and/or amounts and differentiation applied (Chapters I to VIII);

— exceptions referred to in Article 37 (3) subparagraph 2 first indent of Council Regulation (EC) No

1257/1999.

B. Other elements:

— details of eligibility conditions;

— criteria to demonstrate economic viability (Chapters I, II and IV);

— usual good farming practice (Chapters V and VI);

— minimum standards regarding environment, hygiene and animal welfare (Chapters I, II and VII);

— level of occupational skill and competence required (Chapters I, II and IV);

— sufficient assessment of the existence of normal market outlets for the products concerned (Chapters

I and VII) according to Articles 6 and 26 of Council Regulation (EC) No 1257/1999;

— description of the total of ongoing contracts (from the previous period), including in financial terms,

and procedures/rules which apply to these.

3.

Information required for specific measures

In addition, the following specific information is required for measures under the individual chapters:

I.

I n v e s t m e n t i n a g r i c u l t u r a l h o l d i n g s

A. Main features:

— primary production sectors and types of investments;

B. Other elements:

— maximum limits for total investment amount eligible for support;

— types of aid.

II. S e t t i n g - u p o f y o u n g f a r m e r s

A. Main features:

None.

B. Other elements:

— period left to young farmers to fulfil the eligibility criteria within the allowed period of three

years according to Article 5 of Regulation (EC) No 1257/1999,

— age limit,

— conditions applying to young farmers not established as sole head of the holding or who set up
as members of associations or co-operatives whose principal object is the management of an
agricultural holding,

— type of setting-up aid.

(1) References to Chapters refer to Council Regulation (EC) No 1257/1999.

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III. T r a i n i n g

A. Main features:

None.

B. Other elements:

— eligible actions and beneficiaries;

— ensure that no normal education system and programmes are proposed for financing.

IV. E a r l y r e t i r e m e n t

A. Main features:

None.

B. Other elements:

— detail of conditions concerning transferor, transferee, worker and land released, in particular the
use of land to be retained by the transferor for non commercial purposes and the period to
improve viability;

— type of aid including a description of the system used for calculating the maximum co-financible

amount per holding and a justification according to the type of beneficiary;

— description of national retirement and early retirement systems;

— detail on the duration of the aid.

V. L e s s f a v o u r e d a r e a s a n d a r e a s w i t h e n v i r o n m e n t a l r e s t r i c t i o n s

A. Main features:

— level of aid amount:

1.

2.

3.

for compensatory allowances according to Article 13 point (a) of Council Regulation (EC)
No 1257/1999: justification of the modulation of the aid amount according the criteria of
Article 15(2) of the Council Regulation;

for compensatory allowances according to Article 13 point (a) of the Council Regulation
(EC) No 1257/1999: proposals to use the flexibility provisions concerning the maximum
co-financible amount in Article 15(3), second subparagraph of Council Regulation (EC) No
1257/1999 shall include the necessary justification. Specify how it will be assured that the
upper limit for compensatory allowances is respected in these cases and explain the
administrative procedure by which they will ensure adherence to the maximum co-financible
amount;

for compensatory payments according to Article 13 point (b) of Council Regulation (EC)
No 1257/1999 and Article 16 of Council Regulation (EC) No 1257/1999: Detailed
agronomic calculations showing: (a) income foregone and costs incurred resulting from the
environmental restrictions, (b) agronomic assumptions used as reference point.

B. Other elements:

— details on eligibility conditions concerning:

1.

the definition of the minimum surface;

2.

the description of the appropriate conversion mechanism used in case of common pastures.

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VI. A g r i - e n v i r o n m e n t

A. Main features:

— a justification for the undertakings with regard to their expected impacts;

— concerning breeds of farm animal in danger of extinction, evidence of the endangered statue of
the breed consistent with scientific data accepted by international organisations regarded as
authorities in this field;

— concerning plant genetic resources under threat of genetic erosion, evidence of genetic erosion
based upon scientific results and indicators for the occurance of landraces/primitive (local)
varieties, their population diversity and the prevailing agricultural practices at local level;

— precise detail of obligations on farmers and any other conditions of agreement, including scope

and procedures for adjustment of running contracts;

— description of coverage of measure showing extent of application according to needs, degree of

targeting in terms of geographical, sectoral or other coverage;

— detailed agronomic calculations showing: (a) income foregone and cost; incurred with regard to
usual good agricultural practice, (b) agronomic assumptions used as reference point (c) level of
incentive and justification for incentive based on objective criteria;

— for the agri-environment undertakings together, possibilities for combination; of-undertakings

should be shown and coherence of undertakings should be ensured.

B. Other elements:

None.

VII. P r o c e s s i n g a n d m a r k e t i n g o f a g r i c u l t u r a l p r o d u c t s

A. Main features:

— sectors of the basic agricultural production.

B. Other elements:

— criteria to prove economic benefits for primary producers.

VIII. F o r e s t r y

A. Main features:

— definition of:

— ‘agricultural land’ in relation to Article 25 of Regulation (EC) No 1257/1999;

— ‘farmer’ in relation to Article 26 of Regulation (EC) No 1257/1999;

— provisions ensuring that such actions are adapted to local conditions and are compatible
with the environment as well as where appropriate keeping balance between silviculture
and game populations;

— contractual arrangements between regions and potential beneficiaries concerning actions

related to Article 32 of the Council Regulation.

B. Other elements:

— description of eligible actions and beneficiaries;

— linkage between proposed actions and national/sub-national forest programmes or equivalent

instruments;

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— the existence of forest protection plans as laid down in Community legislation for areas classified
as high or medium forest fire risk and the conformity of proposed measures with these
protection plans.

IX. P r o m o t i n g t h e a d a p t a t i o n a n d d e v e l o p m e n t o f r u r a l a r e a s

A. Main features:

— description and justification of the action proposed under each measure.

B. Other elements

— definition of financial engineering, which shall be in accordance with general eligibility criteria.

10. Need for any studies, demonstration projects, training or technical assistance operations (where

appropriate)

Article 43(1), sixth indent, of Regulation (EC) No 1257/1999

11. Designation of competent authorities and bodies responsible

Article 43(1), seventh indent, of Regulation (EC) No 1257/1999

12. Provisions to ensure the effective and correct implementation of the plans including monitoring and
evaluation, a definition of quantified indicators for evaluation, arrangements for controls and sanctions
and adequate publicity.

Article 43(1), eighth indent, of Regulation (EC) No 1257/1999

1. Detailed indications on the implementation of Articles 41 to 45 of the [Regulation(EC) No 1257/1999]

They should include in particular:

— the description of the financial circuits for the payment of assistance to final beneficiaries,

— the arrangements for monitoring and evaluation of the programme, notably systems and procedures for
the collection, organisation and coordination of data relating to financial physical and impact indicators,

— the role, composition and rules of procedure of any monitoring committees,

— codification. This codification shall be in accordance with the model provided by the Commission.

2. Detailed indications on the implementation of Articles 46 to 48 of [Regulation (EC) No 1257/1999]; in particular

in relation to the respect of general eligibility criteria

This should include the precise control measures envisaged to verify the substance of the claim and the
respect of the conditions for support and the precise sanction rules.

13. Results of consultations and designation of associated authorities and bodies as well as economic and

social partners

Article 43(1), ninth indent, of Regulation (EC) No 1257/1995

1. Describe:

— the economic and social partners and other national relevant bodies to be consulted according to

national rules and practice,

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— the agricultural and environmental authorities and bodies to be associated in particular with the
development, implementation, monitoring, evaluation and review of agri-environment measures and
other measures targeted to environment, thus ensuring the balance between these measures and other
rural development measures.

2. Summarise the results of consultations and indicate the extent to which and the views and advice received have been

taken into account

14. Balance between the different support measures

Article 43(2), second indent, of Regulation (EC) No 1257/1999

1. Describe, with reference to the strengths, needs and potential:

— the balance between the different rural development measures;

— the extent to which the agri-environment measures apply throughout the territory.

2. This description shall, according to the case, make reference to:

— measures taken outside the frame of Council Regulation (EC) No 1257/1999,

— measures taken or foreseen under separate rural development plans.

15. Compatibility and consistency

Article 37(2) of Regulation (EC) No 1257/1999

A. Main features:

1. Appraisal of the compatibility and consistency with:

— other Community policies and measures implemented thereunder, in particular competition policy,

— other instruments under Common Agricultural Policy, in particular where exceptions to Article

37(3) of Council Regulation (EC) No 1257/199S are foreseen,

— other support measures within the rural development plans,

— general eligibility criteria.

2.

In relation to measures under Article 33 of Council Regulation (EC) No 1257/1999, ensure and where necessary
clarify that:

— measures taken under the sixth, seventh and ninth indents of that Article are not the subject of

financing under the ERDF in rural areas in Objective 2 areas and in areas in transition,

— measures do not fall within the scope of any other measure referred to in Chapter II of Council

Regulation (EC) No 1257/1999.

B. Other elements

3.

In particular, the appraisal shall cover arrangements to ensure proper coordination with administrations responsible
for:

— development measures introduced in the framework of the market organisations,

— any rural development measures provided for under national legislation.

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16. Additional State aids

Article 52 of Regulation (EC) No 1257/1999

A. Main features

Identify the measures in respect of which State aid intended to provide additional financing will be granted
(Article 52 of Council Regulation (EC) No 1257/1999). An indicative table shall set out the amount of
additional support to be granted in respect of each of the measures concerned during each year covered by
the plan.

B. Other elements.

None.