Council Regulation (EC) No 1447/2001 of 28 June 2001 amending Regulation (EC) No 1260/1999 laying down general provisions on the Structural Funds
Date: 2001-06-28
Institutions: Council of the European Union
Subjects: Aegean Islands, Cohesion Fund, Structural Funds, development aid, peripheral region, regional aid

21.7.2001

EN

Official Journal of the European Communities

L 198/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1447/2001

of 28 June 2001

amending Regulation (EC) No 1260/1999 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 Articles 161 and 299(2) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the assent of the European Parliament (2),

Having regard to the opinion of
Committee (3),

the Economic and Social

Having regard to the opinion of the Committee of the Regions,

Whereas:

(1)

(2)

(3)

Article 29(3)(a) of Regulation (EC) No 1260/1999 (4)
provides for the possibility of awarding a contribution
from the Funds of a maximum of 85 % of the total
eligible cost only for
regions of a
Member State covered by the Cohesion Fund and for
the outlying Greek islands which are under a handicap
due to their distant location.

the outermost

Article 299(2) of the Treaty states that all the outermost
regions face the same handicaps, particularly remoteness
and insularity, which may severely restrain their
development.

Accordingly, Article 29(3)(a) of Regulation (EC) No
to fix the
1260/1999 should be amended so as
maximum contribution of the Funds at 85 % of the total
eligible cost for all the outermost regions, whether of a
Member State covered by the Cohesion Fund or not,

(1) OJ C 96 E, 27.2.2001, p. 272.
(2) Opinion delivered on 14 June 2001 (not yet published in the

Official Journal).

(3) OJ C 139, 11.5.2001, p. 29.
(4) OJ L 161, 26.6.1999, p. 1.

(4)

(5)

(6)

(7)

(8)

this

does

where
in
infrastructure projects generating substantial net revenue
or investments in firms.

investments

involve

not

Article 29(4)(b) of Regulation (EC) No 1260/1999 lays
the
down that,
contribution of the Funds may not exceed 35 % of the
total eligible cost in the regions covered by Objective 1.

investments in firms,

in the case of

All the outermost regions are eligible for Objective 1 of
the Structural Funds for the period 1 January 2000 to
31 December 2006 in accordance with Commission
Decision 1999/502/EC of 1 July 1999 drawing up the
list of regions covered by Objective 1 of the Structural
Funds for the period 2000 to 2006.

An increase in the maximum rate of assistance from the
Structural Funds in the case of investment in small and
medium-sized firms situated in the outermost regions
the difficulties
would appear necessary in view of
to make a
encountered by these firms,
significant contribution to the development of
those
regions.

in order

Article 29(4)(b) of Regulation (EC) No 1260/1999
should therefore be amended so that,
in the case of
investments in small and medium-sized firms situated in
the outermost regions, assistance from the Funds may
amount to up to 50 % of the total eligible cost.

and

single

programme

Pursuant
to Article 14 of Regulation (EC) No
1260/1999, each plan, Community support framework,
operational
programming
document shall cover a period of seven years, and the
programming period shall begin on 1 January 2000. In
the interests of cohesiveness and to avoid discrimination
the same programme,
between beneficiaries of
the
derogations provided for
in this Regulation must,
exceptionally, be applicable to the whole programming
period.

L 198/2

EN

Official Journal of the European Communities

21.7.2001

(9)

islands

Aegean

concerning

Article 13 of Council Regulation (EEC) No 2019/93 of
19 July 1993 introducing specific measures for the
smaller
agricultural
products (1) provides for structural derogations for these
islands. This Article is repealed by 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 (2). The exceptional
situation and geographical nature of the smaller Aegean
islands constitutes an impediment to the adaptation and
development of their rural areas, which can be offset by
an increase in the Structural Funds’ contribution,

HAS ADOPTED THIS REGULATION:

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 outlying Greek islands which are
under a handicap due to their distant location. The
Community contribution for all the outermost regions
may rise, in exceptional and duly justified cases, to a
maximum of 85 % of the total eligible cost;(cid:146)

2. The

following point

shall be added to the

second

subparagraph of Article 29(4)(b):

(cid:145)(ii) 50 % of the total eligible cost in the outermost regions
and, exceptionally, also in the smaller Aegean islands
in accordance with
in the
Regulation (EC) No 1257/1999,
case of
in the
investments in small and medium-sized firms;(cid:146)

investments

case of

Article 1

Points (ii) and (iii) shall become (iii) and (iv) respectively.

Regulation (EC) No 1260/1999 is hereby amended as follows:

1. Article 29(3)(a) shall be amended as follows:

(cid:145)(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

Article 2

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

This Regulation shall apply as from 1 January 2000.

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

Done at Luxembourg, 28 June 2001.

For the Council

The President

B. ROSENGREN

(1) OJ L 184, 27.7.1993, p. 1. Regulation as

last amended by

Regulation (EC) No 2417/95 (OJ L 248, 14.10.1995, p. 39).

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