Commission Regulation (EC) No 2759/1999 of 22 December 1999 laying down rules for the application of Council Regulation (EC) No 1268/1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period (Text with EEA relevance)
Date: 1999-12-22
Institutions: European Commission
Subjects: Central and Eastern Europe, EU aid, aid to agriculture, pre-accession aid, rural development

23. 12. 1999

EN

Official Journal of the European Communities

L 331/51

COMMISSION REGULATION (EC) No 2759/1999

of 22 December 1999

laying down rules for the application of Council Regulation (EC) No 1268/1999 on Community
support for pre-accession measures for agriculture and rural development in the applicant coun-
tries of central and eastern Europe in the pre-accession period

(Text with EEA relevance)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1268/1999 of 21
June 1999 on Community support for pre-accession measures
for agriculture and rural development in the applicant coun-
tries of central and eastern Europe in the pre-accession
period (1), and in particular Articles 9(2) and 12(1) (1) thereof,

Whereas:

(1)

(2)

(3)

the Community pre-accession measures for agriculture
and rural development in the applicant countries of
central and eastern Europe (hereinafter referred to as
‘SAPARD’) as provided for in Regulation (EC) No 1268/
1999 shall relate in particular to contributing to the
implementation by the applicant countries of the acquis
communautaire
common agricultural
policy and related policies, as well as solving priority
and specific problems for the adaptation of the agricul-
tural sector and rural areas in the applicant countries;

concerning the

the support granted pursuant to SAPARD should take
into account in particular its effect on the protection of
the environment and on the sustainable development of
the economies of the applicant country concerned and
the principles of social cohesion policies; Community
support should not replace funding available in each
applicant country and shall complement corresponding
national actions or contribute to these;

rules

in force

in this framework, as a general principle, support shall
be granted according to the
for
Community rural development support, and, in partic-
ular, according to the main objectives and instruments
laid down in Council Regulation (EC) No 1257/1999 of
17 May 1999 on support for rural development from
the European Agricutural Guidance and Guarantee Fund
(EAGGF) and amending and repealing certain Regula-
tions (2) and Commission Regulation (EC) No 1750/
1999 (3) laying down detailed rules for the application of
the aforementioned Regulation;

(4)

particular measures referred to in Article 2 of Regulation
(EC) No 1268/1999 are similar to measures referred to
in Regulation (EC) No 1257/1999 and should therefore

(1) OJ L 161, 26.6.1999, p. 87.
(2) OJ L 160, 26.6.1999, p. 80.
(3) OJ L 214, 13.8.1999, p. 31.

(5)

(6)

(7)

(8)

be implemented by the applicant countries as far as
possible in accordance with the principles for imple-
menting those measures in the Community; reference
should be made to the conditions to be applied in
respect of those measures;

in order to remedy the structural deficiencies affecting
the supply and marketing of agricultural products
resulting from insufficient producer organisation in the
applicant countries, support is necessary to encourage
the setting up of producer groups; for this purpose,
support should be granted for the transitional pre-acces-
sion period according to the Community relevant princi-
ples, deviating from and complementing them where
this is necessary to address the particular situations in
the applicant countries;

other measures mentioned in Article 2 of Regulation
(EC) No 1268/1999 may be eligible for Community
support provided that they form part of the programme
approved by the Commission;

the rules for eligibility of expenditure under SAPARD
should take into account the period in which Regulation
(EC) No 1268/1999 applies, as well as the requirement
of a minimum period in which the undertakings have to
remain substantially unmodified in order to attain their
purpose; specific conditions of eligibility of expenditure
should be agreed upon in the framework of bilateral
agreements between the Community and the different
applicant countries;

the implementation of SAPARD should be carried out
according to the management guidelines laid down in
Council Regulation (EC) No 1260/1999 of 21 June
1999 laying down general provisions on the Structural
Funds (4); according to Article 5(2) of Regulation (EC)
No 1268/1999,
the Commission and the applicant
country shall jointly agree on the procedures concerning
the monitoring
the
it is nevertheless necessary to define the
programme,
indicators used in this procedure; for this exercise the
indicators set forth in Regulation (EC) No 1260/1999
should be taken into account;

implementation

the

of

of

(4) OJ L 161, 26.6.1999, p. 1.

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Official Journal of the European Communities

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(9)

whereas assistance from the Community support for
pre-accession measures for agriculture and rural devel-
opment in the applicant countries of central and eastern
Europe in the pre-accession period together with assis-
tance from the Community under Council Regulation
(EC) No 1267/1999 of 21 June 1999 establishing an
Instrument for Structural Policies for Pre-accession (1)
should be coordinated within the framework of Council
Regulation (EC) No 1266/1999 of 21 June 1999 on
coordinating aid to the applicant countries in the frame-
work of the pre-accession strategy and amending Regu-
lation (EEC) No 3906/89 (2);

(10)

the measures provided for in this Regulation are in
accordance with the opinion of the Agricultural Struc-
tures and Rural Development Committee,

HAS ADOPTED THIS REGULATION:

Article 1

Objective

This Regulation lays down rules for the application of Regula-
tion (EC) No 1268/1999 on Community support for pre-acces-
sion measures for agriculture and rural development in the
applicant countries of central and eastern Europe in the pre-
accession period.

Article 2

Investments in agricultural holdings

Support may be granted for agricultural

1.
investments
according to the conditions foreseen in Title II, Chapter I of
Regulation (EC) No 1257/1999 with the exception of Article 7
of that chapter.

Support for investment shall be granted to agricultural

2.
holdings:

— which comply with the national minimum standards
regarding the environment, hygiene and animal welfare at
the time when the decision to grant support is taken, and

— for which economic viability at the end of the realisation of

the investment shall be demonstrated.

However, where acquis-related minimum standards regarding
the environment, hygiene and animal welfare have been newly
introduced at the time the application is received, the decision
to grant support will be conditional on the holding meeting
these new standards by the end of the realisation of the invest-
ment.

3.
Each applicant country shall set limits for total invest-
ment eligible for support as well as acceptable standards

(1) OJ L 161, 26.6.1999, p. 73.
(2) OJ L 161, 26.6.1999, p. 68.

regarding farmers' occupational skill and competence in order
to be eligible for support.

Article 3

Improving the processing and marketing of agricultural
and fishery products

Support may be granted for investments provided for in
1.
Articles 25 and 26 of Regulation (EC) No 1257/1999 relating
to improving the processing and marketing of the agricultural
and fishery products included in Annex I to the Treaty and
which originate in applicant countries or the Community.
Investments at the retail level shall be excluded from support.

2.

Eligible expenditure may include:

(a) the construction and acquisition of immovable property,

with the exception of land purchase;

(b) new machinery and equipment including computer soft-

ware;

(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 12 % of that expenditure.

Article 4

Agri-environment

Support may be granted for actions foreseen in Title II, Chapter
VI of Regulation (EC) No 1257/1999, and taking account of
the conditions included therein, provided that they concern
actions at the pilot level.

Such actions shall have the objective of developing practical
experience of agri-environment implementation at both the
administrative and farm levels.

Article 5

Training

1.
Support may be granted for actions foreseen in Title II,
Chapter III of Regulation (EC) No 1257/1999, subject to the
conditions set forth therein.

instruction or

Support for vocational training shall not include courses
2.
of
training which form part of normal
programmes or systems of agricultural and forestry education
at secondary or higher levels.

Article 6

Producer groups

1.
Support may be granted to encourage the setting-up, and
to facilitate the administrative operation, of producer groups,
during the first five years following the date of their recogni-
tion.

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This Article shall apply to producer groups set up for the
2.
purpose of jointly adapting the production and output of the
producers who are members of such groups to market require-
ments, and, of jointly placing goods on the market, including
centralisation of sale, preparation for sale, and supply to bulk
buyers, and, of establishing common rules on production infor-
mation, with particular regard to harvesting and availability,
and which have been formally recognised by an applicant
country.

3.
Support granted to producer groups recognised after 1
January 2000 for the first five years following the date on
which they are recognised, shall be granted towards the costs
of setting up and running the producer organisation, at a flat
rate.

4.
The aid referred to in paragraph 3 shall be determined for
each producer organisation on the basis of its annual marketed
production and shall:

(a) amount for the first, second, third, fourth and fifth years to
the value

5 %, 5 %, 4 %, 3 % and 2 % respectively of
marketed production up to EUR 1 000 000, and

(b) amount for the first, second, third, fourth and fifth years, to
2,5 %, 2,5 %, 2,0 %, 1,5 % and 1,5 % respectively of the
values of marketed production exceeding EUR 1 000 000,

(c) be subject to a ceiling for each producer organisation of:

— EUR 100 000 for the first year,

— EUR 100 000 for the second year,

— EUR 80 000 for the third year,

— EUR 60 000 for the fourth year,

— EUR 50 000 for the fifth year,

and shall be paid in annual

instalments.

Article 7

Forestry

In the case of fast-growing species cultivated in the short
5.
term, support for afforestation shall be granted for planting
costs only.

Article 8

Eligibility

Expenditure

in respect of

1.
actions under measures
described in Articles 2 to 7 of this Regulation and of any other
measure mentioned in Article 2 of Regulation (EC) No 1268/
1999 shall be eligible for Community support only if those
actions form part of the programme for agriculture and rural
development approved in accordance with Article 4(5) of
Regulation (EC) No 1268/1999.

Expenditure shall be eligible for Community support only
2.
if it has actually been paid by the applicant country to the
individual beneficiary of a rural development support measure
after 31 December 1999, and after the date on which the rural
development plant, or any amendment to this plan relevant for
the measure concerned has been submitted or communicated
to the Commission. The later of these dates shall constitute the
starting point for eligibility of expenditure.

The final date for the eligibility of commitment shall be the end
of the financial year 2006 or the date of accession of the
relevant applicant country, whichever is the earlier.

Any operation shall remain eligible only if it does not
3.
within five years from the date of the authorisation of the
payment by the applicant country's paying agency undergo a
substantial modification:

(a) affecting its nature or its implementation conditions or
giving to a firm or public body an undue advantage; and

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

1.
Support may be granted for actions foreseen in Articles
29 and 30 with the exception of the sixth indent of Article
30(1) Regulation (EC) No 1257/1999 and subject to the condi-
tions set forth therein.

Article 9

Managing authority

Support shall be granted for the afforestation of agricul-
land provided that such planting is adapted to local

2.
tural
conditons and is compatible with the environment.

The Commission shall ensure that each applicant country sets
up and operates, to the best standards, a managing authority
which is responsible for the efficient and correct management
of the programme.

Support may in addition to planting costs include an annual
premium per hectare afforested to cover maintenance costs for
a period of up to five years.

Support for the afforestation of agricultural land under-
3.
taken by public authorities shall cover only the costs of estab-
lishment.

Support for the afforestation of agricultural land shall not

4.
be granted in respect of the planting of Christmas trees.

Article 10

Monitoring indicators

indicators
The specific physical, environmental and financial
applied in the monitoring of
the
programme shall take into account the elements mentioned in
Article 36 of Regulation (EC) No 1260/1999.

the implementation of

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Article 11

Annual and final reports

The annual reports mentioned in Article 5(2) of Regulation
(EC) No 1268/1999 shall,
in addition to the elements
mentioned in Article 37 of Regulation (EC) No 1260/1999
applicable as appropriate, contain the physical indicators per
measure.

Article 12

Evaluations

The appraisals and evaluation referred to in Article 5 of Regula-
tion (EC) No 1268/1999 shall be carried out taking account of
the procedures for evaluation provided in Title IV, Chapter III
of Regulation (EC) No 1260/1999 and Chapter III, Section 5 of
Regulation (EC) No 1750/1999.

Article 13

Final provisions

The detailed conditions for support and eligibility of expendi-
ture on the basis of this Regulation, taking into account the
Commission guidelines set for the Member States, will be laid
down in bilateral agreements concluded between the Commis-
sion, on behalf of the European Community, and each appli-
cant country.

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, 22 December 1999.

For the Commission

Franz FISCHLER

Member of the Commission