Commission Regulation (EC) No 1419/2004 of 4 August 2004 on the continuation of the application of the Multiannual Financing Agreements and the Annual Financing Agreements concluded between the European Commission, representing the European Community, on the one hand and the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia on the other, and providing for certain derogations from the Multiannual Financing Agreements and from Council Regulation (EC) No 1266/1999 and Regulation (EC) No 2222/2000
Date: 2004-08-04
Institutions: European Commission
Subjects: EU aid, accession to the European Union, aid to agriculture, derogation from EU law, rural development

5.8.2004

EN

Official Journal of the European Union

L 258/11

COMMISSION REGULATION (EC) No 1419/2004

of 4 August 2004

on the continuation of the application of the Multiannual Financing Agreements and the Annual
Financing Agreements concluded between the European Commission, representing the European
Community, on the one hand and the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland,
Slovakia and Slovenia on the other, and providing for certain derogations from the Multiannual
Financing Agreements and from Council Regulation (EC) No 1266/1999 and Regulation (EC)
No 2222/2000

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

countries but with Member States and that
the new
Member States will be directly submitted to provisions
under Community law. Such MAFA provisions should
therefore no longer apply.

Having regard to the Treaty
Community,

establishing the European

Having regard to the Treaty of Accession, and in particular
Article 41 thereof,

Whereas:

(1)

(2)

Multiannual Financing Agreements (MAFAs) and Annual
Financing Agreements (AFAs) were concluded between
the European Commission, representing the European
Community, on the one hand and the Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and
Slovenia (hereinafter referred to as ‘the new Member
States’) on the other.

any particular

In areas falling within the scope of the EU Treaty, the
relationship between the new Member States and the EU,
as of 1 May 2004, when these States acceded to the EU,
is governed by EU law. In principle, bilateral agreements,
without
acts being necessary,
legal
continue to apply as far as they do not contradict obli-
gatory EU law in general and Community law in
particular.
the MAFAs and AFAs
provide for rules which are different from Community
law whilst not being contrary to any binding provisions.
However, it is appropriate to foresee that in respect of
Sapard the new Member States should, as far as possible,
follow the same rules as those which apply to any other
areas of Community law.

In certain areas,

(3)

It is therefore appropriate to provide for the continuation
of the applicability of the MAFAs and AFAs subject to
certain derogations and amendments. At the same time,
certain provisions are no longer needed given the fact
the Community is no longer dealing with third
that

(4)

(5)

Council Regulation (EC) No 1266/1999 of 21 June 1999
on coordinating aid to the applicant countries in the
framework of the pre-accession strategy and amending
Regulation (EEC) No 3906/89 (1) and Commission Regu-
lation (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 pre-
accession measures for agriculture and rural development
in the applicant countries of central and eastern Europe
in the pre-accession period (2) have been the legal bases
for the Commission to confer the management of aid
under the Special Accession Programme for Agriculture
and Rural Development
(Sapard) on implementing
agencies in the applicant countries, on a case-by-case
basis. The MAFAs were concluded based on that possi-
States,
relation
bility. However,
Community law does not
conferral of
management procedure but an accreditation procedure
at national
referred to in
Article 4 of Council Regulation (EC) No 1258/1999 on
the financing of the common agricultural policy (3). The
MAFAs provide basically for an identical accreditation
procedure in their Article 4 of Section A of the Annex.
With regard to Member States there is, therefore, no
the
longer a need to provide for a conferral of
management of aid. Therefore, derogation from these
provisions is appropriate.

to Member
a

for paying agencies,

require

level

in

On 3 March 2004 the Commission decided on the
conclusion of a new Agreement
for the year 2003
amending the AFAs 2000, 2001, 2002 and 2003 and
the MAFA with the applicant countries. Meanwhile, the
new Member States have joined the EU and there is no
room for the conclusion of further bilateral agreements
between the EU and these States in areas falling within
the competences of
the EU. Rather than concluding
bilateral agreements with these States, the Commission
should therefore include the substance of these envisaged
agreements in this Regulation. In particular, the amounts
committed in view of the AFA 2003 and decided upon
by the Commission in that decision should now be
incorporated in the present Regulation.

(1) OJ L 161, 26.6.1999, p. 68.
(2) OJ L 253, 7.10.2000, p. 5. Regulation as last amended by Regu-

lation (EC) No 188/2003 (OJ L 27, 1.2.2003, p. 14).

(3) OJ L 160, 26.6.1999, p. 103.

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5.8.2004

(6)

(7)

(8)

To allow a smooth transition from the pre-accession
requirements, it is appropriate to provide for immediate
entry into force and, with regard to certain provisions, a
retrospective application of this Regulation.

Article 12(2) of Regulation (EC) No 1266/1999 and
4.
Article 3 of Regulation (EC) No 2222/2000 shall no longer
apply to the new Member States with regard to the Special
Accession Programme for Agriculture and Rural Development
(Sapard).

The Treaty of Accession enables the Commission to
adopt transitional measures for a period of three years
as of the date of accession. Given the fact that certain
programmes under the MAFAs/AFAs may still continue
after accession it is appropriate to provide for the applic-
ability of this Regulation until 30 April 2007.

The measures provided for in this Regulation are in
accordance with the opinion of the Committee on Agri-
cultural Structures and Rural Development and of the
Committee of the European Agriculture Guarantee and
Guidance Fund,

Article 2

Derogations from MAFA provisions and from Regulation
(EC) No 2222/2000

By way of derogation from the last subparagraph of Article 4(7)
and Article 5(4) of Section A of the Annex to the MAFAs and
Article 5(4) of Regulation (EC) No 2222/2000, the Commission
shall
immediately be informed of any modifications in the
implementation or paying arrangements of the Sapard Agency
after its accreditation.

HAS ADOPTED THIS REGULATION:

Article 1

Article 3

Amendment of the MAFAs

Continuation of the applicability of the MAFAs and the
AFAs after accession

The following subparagraph is added to Article 10(3) of Section
A of the Annex to the MAFAs:

European Commission,

1. Without prejudice to the continuation of the validity of
the Multiannual Financing Agreements (hereinafter referred to as
‘MAFAs’) and the Annual Financing Agreements (hereinafter
referred to as ‘AFAs’), as listed in Annex I, concluded between
the
European
Community, on the one hand and the Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and
Slovenia (hereinafter referred to as ‘the new Member States’)
shall continue to apply
on the other,
subject to the provisions of this Regulation.

these Agreements

representing

the

2.

Articles 2 and 4 of the MAFAs shall cease to apply.

The following provisions of the Annex to the MAFAs shall

3.
cease to apply:

(a) Articles 1 and 3 of Section A; however, any references to
these Articles in the MAFAs or AFAs shall be construed as
referring to the national accreditation decision in accordance
with Article 4 of Section A;

(b) Article 14(2.6) and (2.7) of Section A;

(c) Articles 2, 3, 4, 5, 6 and 8 of Section C;

(d) Item 8 of Section F;

(e) Section G.

‘However,
interest not accounted for by projects assisted
under
Estonia,
the programme of Czech Republic,
Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia,
respectively, shall be paid to the Commission in euro’.

Article 4

Amendment of Article 3 of AFAs 2000 to 2003

The amount provided for in Article 2 of the AFA 2003 for the
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland,
Slovakia and Slovenia, respectively, shall be replaced by the
amounts referred to in Annex II.

Article 5

Amendment of Article 3 of AFAs 2000 to 2003

At the end of Article 3 of each of the AFAs, the following
subparagraph is added:

‘Any part of the Community contribution referred to in
Article 2 for which no contracts with the final beneficiaries
have been signed as of the date referred to in the second
subparagraph shall be notified to the Commission within
three months of this amount being known’.

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Article 6

Entry into force

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

It shall apply as of its entry into force and shall continue to
apply until 30 April 2007. However, Article 1(2) and (3) and

Article 2 shall apply as of 1 May 2004. Any communications
which were sent to the Commission between 1 May 2004 and
the entry into force of this Regulation in accordance with the
last subparagraph of Article 4(7) and Article 5(4) of Section A
of the Annex to the MAFAs and Article 5(4) of Regulation (EC)
No 2222/2000, shall be construed as having been sent
in
accordance with Article 2 of this Regulation.

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

Done at Brussels, 4 August 2004.

For the Commission

Franz FISCHLER
Member of the Commission

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1. LIST OF MAFAS

ANNEX I

The following MAFAs were concluded between the European Commission, representing the European Community,
and
— the Czech Republic the tenth day of December in the year two thousand and one,
— the Republic of Estonia the twenty-eighth day of May in the year two thousand and one,
— the Republic of Hungary the fifteenth day of June in the year two thousand and one,
— the Republic of Latvia the fourth day of July in the year two thousand and one,
— the Republic of Lithuania the twenty-ninth day of August in the year two thousand and one,
— the Republic of Poland the eighteenth day of May in the year two thousand and one,
— the Republic of Slovakia the sixteenth day of May in the year two thousand and one and
— the Republic of Slovenia the twenty-eighth day of August in the year two thousand and one.

2. LIST OF AFAS

A. Annual financing agreement 2000

The following AFAs for 2000 were concluded between the European Commission, representing the European
Community, and
— the Czech Republic the tenth day of December in the year two thousand and one,
— the Republic of Estonia the twenty-eighth day of May in the year two thousand and one,
— the Republic of Hungary the fifteenth day of June in the year two thousand and one,
— the Republic of Latvia the eleventh day of May in the year two thousand and one,
— the Republic of Lithuania the twenty-ninth day of August in the year two thousand and one,
— the Republic of Poland the eighteenth day of May in the year two thousand and one,
— the Republic of Slovakia the sixteenth day of May in the year two thousand and one and
— the Republic of Slovenia the sixteenth day of October in the year two thousand and one.

B. Annual financing agreement 2001

The following AFAs for 2001 were concluded between the European Commission, representing the European
Community, and
— the Czech Republic the nineteenth day of June in the year two thousand and three,
— the Republic of Estonia the tenth day of July in the year two thousand and three,
— the Republic of Hungary the twenty-sixth day of Mars in the year two thousand and three,
— the Republic of Latvia the thirtieth day of May in the year two thousand and two,
— the Republic of Lithuania the eighteenth day of July in the year two thousand and two,
— the Republic of Poland the tenth day of June in the year two thousand and two,
— the Republic of Slovakia the fourth day of November in the year two thousand and two and
— the Republic of Slovenia the seventeenth day of July in the year two thousand and two.

C. Annual financing agreement 2002

The following AFAs 2002 were concluded between the European Commission, representing the European
Community, and
— the Czech Republic the third day of June in the year two thousand and four,
— the Republic of Estonia the eleventh day of December in the year two thousand and three,
— the Republic of Hungary the twenty-second day of December in the year two thousand and three,
— the Republic of Latvia the twelfth day of May in the year two thousand and three,
— the Republic of Lithuania the sixth day of June in the year two thousand and three,
— the Republic of Poland the fourteenth day of April in the year two thousand and three,
— the Republic of Slovakia the thirtieth day of September in the year two thousand and three and
— the Republic of Slovenia the twenty-eighth day of July in the year two thousand and three.

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D. Annual financing agreement 2003

The following AFAs 2003 were concluded between the European Commission representing the European
Community and
— the Czech Republic the second day of July in the year two thousand and four,
— the Republic of Estonia the eleventh day of December in the year two thousand and three,
— the Republic of Hungary the twenty-second day of December in the year two thousand and three,
— the Republic of Latvia the first day of December in the year two thousand and three,
— the Republic of Lithuania the fifteenth day of January in the year two thousand and four,
— the Republic of Poland the tenth day of June in the year two thousand and three,
— the Republic of Slovakia the twenty sixth day of December in the year two thousand and three and
— the Republic of Slovenia the eleventh day of November in the year two thousand and three.

ANNEX II

ANNUAL FINANCIAL AGREEMENT 2003
ALLOCATION BY COUNTRY

(EUR)

Country

Amount

Czech Republic

Estonia

Hungary

Latvia

Lithuania

Poland

Slovakia

Slovenia

23 923 565

13 160 508

41 263 079

23 690 433

32 344 468

182 907 972

19 831 304

6 871 397

Total

343 992 726