2004/385/EC: Commission Decision of 27 April 2004 conferring management of aid on implementing agencies for preaccession measures in agriculture and rural development in Hungary in the preaccession period
Date: 2004-04-27
Institutions: European Commission
Subjects: EU aid, EU programme, Hungary, accession to the European Union, aid system, aid to agriculture, public institution, rural development

L 144/56 

EN 

Official Journal of the European Union

30.4.2004 

COMMISSION DECISION 

of 27 April 2004 

conferring management of aid on implementing agencies for preaccession measures in 
agriculture and rural development in Hungary in the preaccession period 

(2004/385/EC) 

THE COMMISSION OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European Community, 

Having regard to Council Regulation (EC) No 1266/1999 of 21 June 1999 on coordinating aid 
to  the  applicant  countries  in  the  framework  of  the  preaccession  strategy  and  amending 
Regulation (EEC) No 3906/891, and in particular Article 12(2) thereof, 

Having  regard  to  Council  Regulation  (EC)  No 1268/1999  of  21  June  1999  on  Community 
support  for  preaccession  measures  for  agriculture  and  rural  development  in  the  applicant 
countries of central and eastern Europe in the preaccession period2, and in particular Article 
4(5) and (6) thereof, 

Whereas: 

(1)

(2)

(3)

The  Special  Programme  for  Agriculture  and  Rural  Development  for  Hungary 
(hereinafter  Sapard)  was  approved  by  Commission  decision  of  18  October  20003,  as 
last  amended  by  Commission  decision  of  25  February  2004,  in  accordance  with 
Article 4(5) and (6) of Regulation (EC) No 1268/1999. 

The  Government  of  Hungary  and  the  Commission,  acting  on  behalf  of the  European 
Community,  signed  on  1  March  2001  the  Multiannual  Financing  Agreement  laying 
down the technical, legal and administrative framework for the execution of Sapard, as 
last amended by the Annual Financing Agreement for 2003, signed on 28 July 2003, 
which finally entered into force on 22 December 2003. 

The  Agriculture  and  Rural  Development  Agency  (hereinafter  ARDA),  public 
institution with legal status, under the subordination of the Ministry of Agriculture and 
Rural Development has been appointed by the competent authority of Hungary for the 
implementation of some of the measures defined in Sapard. The National Fund within 
the  Ministry  of  Finance  has  been  appointed  for  the  financial  functions  it  is  due  to 
perform in the framework of the implementation of Sapard. 

1

2

3

OJ L 161, 26.6.1999, p. 68. 
OJ  L  161,  26.6.1999,  p.  87;  Regulation  as  last  amended  by  Regulation  (EC)  No 696/2003  (OJ  L  99, 
17.4.2003, p. 24). 
C(2000) 2738 final. 

30.4.2004

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Official Journal of the European Union

L 144/57 

(4)

(5)

(6)

(7)

(8)

(9)

On the basis of a case-by-case analysis of the national and sectorial programme/project 
management  capacity,  financial  control  procedures  and  structures  regarding  public 
finance,  as  provided  for  in  Article  12(2)  of  Regulation  (EC)  No  1266/1999,  the 
Commission  adopted  Decision  2002/927/EC  of  26  November  2002  conferring 
management of aid on implementing agencies for preaccession measures in agriculture 
and  rural  development  in  Hungary  in  the  preaccession  period4  with  regard  to  certain 
measures provided for in Sapard. 

The Commission has undertaken a further analysis under Article 12(2) of Regulation 
(EC)  No  1266/1999  in  respect  of  measure  1305  ‘Renovation  and  development  of 
villages  and  the  protection  and  conservation  of  rural  heritage’  and  measure  1306 
‘Development  and  diversification  of  economic  activities  providing  for  multiple 
activities and alternative income’ (hereinafter ‘measures 1305 and 1306’) as provided 
for  in  Sapard.  The  Commission  considers  that,  also  with  regard  to  those  measures, 
Hungary  complies  with  the  provisions  of  Articles  4  to  6  and  of  the  Annex  to 
Commission  Regulation  (EC)  No 2222/2000  of  7  June  2000  laying  down  financial 
rules  for  the  application  of  Council  Regulation  (EC)  No  1268/1999  on  Community 
support  for  preaccession  measures  for  agriculture  and  rural  development  in  the 
applicant countries of central and eastern Europe in the preaccession period5, and with 
the minimum conditions set out in the Annex to Regulation (EC) No 1266/1999.  

It  is  therefore  appropriate  to  waive  the  ex  ante  approval  requirement  referred  to  in 
Article 12(1) of Regulation (EC) No 1266/1999 and to confer with regard to measures 
1305  and  1306  on  the  ARDA  and  on  the  Ministry  of  Finance,  National  Fund,  in 
Hungary the management of aid on a decentralised basis. 

Since the verifications carried out by the Commission for measures 1305 and 1306 are 
based on a system that is not yet fully operating with regard to all relevant elements, it 
is therefore appropriate to confer the management of Sapard on the ARDA and on the 
National Fund according to Article 3(2) of Regulation No 2222/2000, on a provisional 
basis. 

Full conferral of management of Sapard is only envisaged after further verification to 
ensure  that  the  system  operates  satisfactorily  has  been  carried  out  and  after  any 
recommendations  the  Commission  may  issue,  with  regard  to  the  conferral  of 
management of aid on the ARDA and on the National Fund have been implemented. 

On  2  April  2004,  the  Hungarian  authorities  proposed  the  rules  for  eligibility  of 
expenditure in accordance with Article 4(1) of section B of the Multiannual Financing 
Agreement. The Commission is called upon to take a decision in this respect, 

HAS DECIDED AS FOLLOWS:  

4

5

OJ L 322, 27.11.2002, p. 51. 
OJ  L  253,  7.10.2000,  p.  5;  Regulation  as  last  amended  by  Regulation  (EC)  No  188/2003  (OJ  L  27, 
1.2.2003, p. 14). 

L 144/58 

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Official Journal of the European Union

30.4.2004 

Article 1 

The requirement of ex ante approval by the Commission of project selection and contracting 
for measures 1305 and 1306 by Hungary provided for in Article 12(1) of Regulation (EC) No 
1266/1999 is hereby waived. 

Management of Sapard is conferred on a provisional basis to: 

Article 2 

1. the ARDA under the subordination of the Ministry of Agriculture and Rural Development 
of Hungary, Alkotmány út 29, District V, Budapest, for the implementation of measures 1305 
and  1306  as  defined  in  the  Programme  for  Agriculture  and  Rural  Development  that  was 
approved in accordance with Commission Decision C(2000) 2738 final of 18 October 2000, 
as last amended by the Commission decision, adopted on 25 February 2004; 

2.  the  National  Fund  within  the  Ministry  of  Finance  in  Hungary,  József  Nádor  tér  2-4., 
District V, Budapest, for the financial functions it is due to perform in the framework of the 
implementation of Sapard for measures 1305 and 1306 for Hungary. 

Article 3 

Expenditure  pursuant  to  this  decision  shall  be  eligible  for  Community  co-financing  only  if 
incurred by beneficiaries from the date of this decision, or if later, the date of the instrument 
making  them  a  beneficiary  for  the  project  in  question,  except  for  feasibility  and  related 
studies, where this date shall be 18 October 2000, provided in all cases it has not been paid by 
the ARDA prior to the date of this decision. 

Article 4 

Without prejudice to any decisions granting aid under Sapard to individual beneficiaries, the 
rules  for  eligibility  of  expenditure  proposed  by  Hungary  by  letter  of  2  April  2004  and 
registered in the Commission under No AGR A 11682 of 6 April 2004, shall apply. 

Done at Brussels, 27 April 2004. 

For the Commission 
Franz FISCHLER 
Member of the Commission