Proposal for a Council Decision adapting the Act of Accession of Bulgaria and Romania as regards rural development
Date: 2006-04-04
Institutions: European Commission
Subjects: Bulgaria, European Development Fund, Romania, accession to the European Union, rural development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.4.2006 
COM(2006) 152 final 

2006/0053 (CNS) 
2006/0054 (CNS) 

Proposal for a 

COUNCIL DECISION 

adapting the Act of Accession of Bulgaria and Romania as regards rural development  

Proposal for a 

COUNCIL DECISION 

adapting Annex VIII to the Act of Accession of Bulgaria and Romania 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

On  20  September  2005  the  Council  adopted  Regulation  (EC)  No  1698/2005  on  support  for 
rural  development  by  the  European  Agricultural  Fund  for  Rural  Development  which  makes 
changes  to  the  acquis  on  which  the  accession  negotiations  with  Bulgaria  and  Romania  were 
based.  This  regulation  does  not  take  account  of  the  results  of  the  accession  negotiations  or 
indeed of enlargement itself. There is therefore a need to adapt both the Act of Accession and 
the text of the new  rural  development  regulation before accession to ensure that  the two  are 
compatible.  

Specifically, there is a need to: 

– 

– 

– 

adapt  the  rural  development-related  annexes  of  the  Act  of  Accession  so  that  the 
negotiation results are compatible with the new acquis (where references in the Act of 
Accession have become obsolete or where the negotiation results are not immediately 
compatible with the new rural development regulation); 

adapt articles 29 and 34 of the Act of Accession insofar as they refer to transitional 
and implementing rules for rural development; 

adapt the new rural development regulation so that it can be applied to Bulgaria and 
Romania and so that it incorporates as appropriate the accession negotiation results. 

The guiding principles followed in preparing these adaptations have been that the fundamental 
character and principles of the accession negotiation results should be maintained and that the 
adaptations should be limited to what is absolutely necessary. 

These proposals have no financial implications for the Community budget. 

The  proposals  made  in  the  legal  texts  (two  Council  Decisions  and  a  Council  Regulation 
respectively) are described below. 

LEADER – Minimum financial threshold for axis 4 

Regulation  (EC)  No  1698/2005  establishes  that  within  each  rural  development  programme 
there  must  be  a  compulsory  Leader  axis  to  support  locally  designed  and  implemented  rural 
development  strategies,  and  that  this  axis  must  account  for  a  minimum  percentage  of  the 
EAFRD  contribution  to  the  programme.  Given  the  lack  of  experience  of  Bulgaria  and 
Romania in implementing the Leader approach and in order to build sufficient local capacity 
to apply Leader, the average financial contribution of 2.5% for the Leader axis applicable to 
the  EU-10  should  be  applied  for  the  period 2010–2013  only  for  Bulgaria and Romania.  The 
legal text also clarifies how this percentage is to be calculated. 

LEADER+ type measures 

Measures  agreed  with  Bulgaria  and  Romania  relating  to  support  for  acquisition  of  skills 
intended to prepare rural communities to conceive and implement local development strategies 
differ from the provisions of Regulation (EC) No 1698/2005. The results of the negotiations 
with Bulgaria and Romania should be maintained in this area.  

Advisory Services 

The provisions of Regulation (EC) No 1698/2005 concerning support for the use of advisory 
services differ in both their scope  and  level of financial support for beneficiaries from those 

EN 

2 

   EN 

 
laid down  for  the  period 2007–09 in the  Accession Treaty. So as to avoid  any possibility of 
double financing for the first three years of the programme, Bulgaria and Romania should be 
given the choice of implementing either the measure provided for in Annex VIII to the Act of 
Accession  or  the  measure  provided  for  in  Regulation  (EC)  No  1698/2005.  Furthermore,  in 
order to give effect to the joint statement by the Council and Commission regarding Bulgaria 
and  Romania,  entered  in  the  minutes  of  the  Council  meeting  of  19/20  September  at  which 
political agreement on Regulation (EC) No 1698/2005 was reached, it is proposed to extend 
the  Accession  Treaty  measure  on  the  provision  of  advisory  services  until  2013  for  farmers 
receiving semi-subsistence support. 

Agri-environment and animal welfare measures 

The accession negotiation results included a provision for Bulgaria and Romania to co-finance 
agri-environment  and  animal  welfare  measures  at  the  level  of  85%.  To  ensure  consistency 
with  the  new  financial  architecture  of  Regulation  (EC)  No  1698/2005,  under  which 
co-financing rates are no longer set at the level of the measure, but at axis level, it is proposed 
to apply a maximum co-financing rate of 82% to Bulgaria and Romania for axis 2 (instead of 
the  maximum  of  80%  provided  for  under  Regulation  (EC)  No  1698/2005)  over  the  entire 
programme and programming period. This figure of 82% is based on the expected weighting 
of  the  agri-environment  and  animal  welfare  measures  within  these  countries’  overall 
expenditure  under  axis  2  and  so  maintains  an  equivalent  benefit  to  that  accorded  in  the 
Accession Treaty. 

Complements to national direct payments 

Council  Regulation  (EC)  No  1290/2005  on  the  financing  of  the  common  agricultural  policy 
has established a single Fund for Community support for rural development, replacing the two 
previous sources of funding (EAGGF-Guidance and Guarantee). As a result, it is necessary to 
clarify  the  basis  for  calculation  of  the  20%  ceiling  specified  in  the  complement  to  direct 
payments measure provided for in Annex VIII of the Act of Accession on amounts of 2nd pillar 
funds which can be transferred to be used as complements to direct payments to farmers under 
the  1st  pillar  of  the  CAP.  Taking  into  account  the  need  for  consistency  with  the  provisions 
applied to the EU-10, the rural development needs of the two countries, and the importance of 
guarding  against  potentially  excessive  transfers  of  2nd  pillar  funds  to  the  1st pillar,  it  is 
proposed that the 20% ceiling should apply to the EAGGF-Guarantee component only. 

Transitional and implementing rules 

References  to  transitional  and  implementing  rules  in  the  Act  of  Accession  of  Bulgaria  and 
Romania  should  be  adapted  to  comply  with  the  procedures  set  out  in  Regulation  (EC) 
No 1698/2005.  

Technical adjustments 

Bulgaria and Romania should be added to the list of new Member States to which transitional 
measures apply under Regulation (EC) No 1698/2005. It is necessary to delete the following 
provisions of Annex VIII of the Act of Accession, which are either (1) now covered directly 
by  Regulation  (EC)  No  1698/2005:  support  for  semi-subsistence  farms  undergoing 
restructuring, producer  groups,  technical assistance,  or  (2) no longer applicable: requirement 
that investment support be limited to agricultural holdings for which economic viability at the 
end of the realisation of the investment can be demonstrated. 

EN 

3 

   EN 

 
2006/0053 (CNS) 

Proposal for a 

COUNCIL DECISION 

adapting the Act of Accession of Bulgaria and Romania as regards rural development  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  of  Accession  of  Bulgaria  and  Romania,  and  in  particular 
Article 4(3) thereof,  

Having regard to the Act of Accession of Bulgaria and Romania, and in particular Article 22 
thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

Council  Regulation  (EC)  No  1698/2005  of  20  September  2005  on  support  for  rural 
development  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)2 
introduces changes to the acquis on which the accession negotiations with Bulgaria and 
Romania were based. 

There  is  therefore  a  need  to  adapt  the  Act  of  Accession  of  Bulgaria  and  Romania  so 
that it is compatible with Regulation (EC) No 1698/2005. 

Transitional  and  implementing  rules  concerning  the  rural  development  programming 
period starting on 1 January 2007 should be adopted in accordance with the procedure 
referred  to  in  Article  90(2)  of  Regulation  (EC)  No  1698/2005.  The  references  in  the 
procedural provisions provided for in the Act  of Accession  of  Bulgaria  and Romania 
should be adapted accordingly. 

(4)  When reaching political agreement on Regulation (EC) No 1698/2005, the Council and 
the  Commission  agreed  in  a  joint  declaration  regarding  Bulgaria  and  Romania  to 
extend  the  measure  on  advisory  services  provided  for  in  Annex  VIII  to  the  Act  of 
Accession  of  Bulgaria  and  Romania  until  2013  as  regards  the  provision  of  advisory 
services  to  farmers  receiving  semi-subsistence  support.  The  Act  of  Accession  should 
be adapted to take this agreement into account, 

1 
2 

OJ C …, …, p. ... 
OJ L 277, 21.10.2005, p. 1. Regulation as amended by Regulation (EC) No …/2006 (OJ L …] 

EN 

4 

   EN 

 
                                                 
HAS DECIDED AS FOLLOWS:  

Article 1 

The Act of Accession of Bulgaria and Romania is amended as follows: 

(1) 

In Article 29, the second sentence is replaced by the following:  

“Should  specific  transitional  measures  be  necessary  in  this  regard,  they  shall  be 
adopted  in  accordance  with  the  procedure  referred  to  in  Article  90(2)  of  Council 
Regulation (EC) No 1698/2005*. 

* 

OJ L 277, 21.10.2005, p. 1.” 

(2) 

Article 34 is amended as follows: 

(a)  Paragraph 1 is replaced by the following: 

“1. 

In  addition  to  the  regulations  concerning  rural  development  in  force  on 
the date of accession, the provisions laid down in Sections I, II and III of 
Annex  VIII  shall  apply  to  Bulgaria  and  Romania  for  the  period  2007–
2009, with the exception of Section I, point D, of that Annex which shall 
also apply for the period 2010–2013 as regards the provision of advisory 
services  to  farmers  receiving  semi-subsistence  support.  The  specific 
financial  provisions  laid  down  in  Section  IV  of  Annex  VIII  apply  to 
Bulgaria and Romania throughout the programming period 2007–2013.” 

(b)  Paragraph 3 is replaced by the following: 

“3. 

Implementing rules, where necessary, for the application of the provisions 
of Annex VIII shall be adopted in accordance with the procedure referred 
to in Article 90(2) of Regulation (EC) No 1698/2005.” 

Article 2 

This Decision shall be drawn up in the Bulgarian, Spanish, Czech, Danish, German, Estonian, 
Greek, English, French, Irish, Italian, Latvian, Lithuanian, Hungarian, Maltese, Dutch, Polish, 
Portuguese,  Romanian,  Slovak,  Slovenian,  Finnish  and  Swedish  languages,  all  twenty-three 
texts being equally authentic. 

Article 3 

This Decision shall take effect on 1 January 2007 subject to the entry into force of the Treaty 
of Accession of Bulgaria and Romania. 

Done at Brussels,  

For the Council 
The President 

EN 

5 

   EN 

 
 
 
2006/0054 (CNS) 

Proposal for a 

COUNCIL DECISION 

adapting Annex VIII to the Act of Accession of Bulgaria and Romania 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  of  Accession  of  Bulgaria  and  Romania,  and  in  particular 
Article 4(3) thereof,  

Having  regard  to  the  Act  of  Accession  of  Bulgaria  and  Romania,  and  in  particular 
Article 34(4) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament3, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Council  Regulation  (EC)  No  1698/2005  of  20  September  2005  on  support  for  rural 
development  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)4 
introduces changes to the acquis on which the accession negotiations with Bulgaria and 
Romania were based.  

There  is  therefore  a  need  to  adapt  the  Act  of  Accession  of  Bulgaria  and  Romania  so 
that it is compatible with Regulation (EC) No 1698/2005. 

In making the necessary adaptations to the Act of Accession of Bulgaria and Romania 
the  fundamental  character  and  principles  of  the  negotiation  results  should  be 
maintained  and  applied  to  new  elements.  Moreover,  the  adaptations  to  the  Act  of 
Accession should be limited to what is absolutely necessary. 

The “semi-subsistence” and “producer group” measures provided for in Annex VIII to 
the  Act  of  Accession  of  Bulgaria  and  Romania  are  covered  by  Regulation  (EC) 
No 1698/2005  as  amended  by  Regulation  (EC)  No  …/2006,  as  transitional  measures 
for Bulgaria, the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, 
Poland, Romania, Slovenia and Slovakia. Therefore, the provisions set out in the Act of 
Accession of Bulgaria and Romania in these areas should be deleted. 

(5) 

The  provisions  on  technical  assistance  provided  for  in  Annex  VIII  to  the  Act  of 
Accession  of  Bulgaria  and  Romania  are  covered  by  Regulation  (EC)  No  1698/2005 
and should consequently be deleted. 

3 
4 

OJ C …, …, p. ... 
OJ L 277, 21.10.2005, p. 1. Regulation as amended by Regulation (EC) No …/2006 (OJ L …] 

EN 

6 

   EN 

 
                                                 
(6) 

(7) 

(8) 

(9) 

Regulation (EC) No 1698/2005 establishes a compulsory Leader axis within the rural 
development  programme,  which  must  account  for  a  minimum  percentage  of  EAFRD 
contribution to the programme. In addition, Article 59 of that Regulation establishes a 
measure  aimed  at  supporting  capacity  building,  which  differs  from  the  arrangements 
that were negotiated for Bulgaria and Romania. Therefore it is necessary to harmonise 
the provisions on Leader set out in Annex VIII to the Act of Accession of Bulgaria and 
Romania with the new provisions provided for in Regulation (EC) No 1698/2005. 

Regulation (EC) No 1698/2005 provides for a support for the use of advisory services. 
However, there are differences between the Act of Accession of Bulgaria and Romania 
and  that  Regulation  in  the  scope  of  that  measure.  So  as  to  avoid,  notably,  double 
financing, for the three first years of the programme, Bulgaria and Romania should be 
given the choice of implementing either the measure provided for in Annex VIII to the 
Act of Accession or the measure provided for in Regulation (EC) No 1698/2005.  

Furthermore,  when  reaching  political  agreement  on  Regulation  (EC)  No  1698/2005, 
the Council and the Commission have agreed in a joint declaration regarding Bulgaria 
and Romania to extend the measure on advisory services provided for in Annex VIII to 
the Act of Accession of Bulgaria and Romania until 2013 as regards the provision of 
advisory services to farmers receiving semi-subsistence support. Annex VIII to the Act 
of Accession should be adapted to take this agreement into account. 

Given that Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of 
the common agricultural policy5 has established a single Fund for Community support 
for rural development replacing the previous two sources of funding, it is necessary to 
clarify  the  basis  on  which  the  20%  ceiling  specified  in  the  complement  to  direct 
payments  measure  provided  for  in  point E  of  Section I  of  Annex VIII  to  the  Act  of 
Accession of Bulgaria and Romania should be calculated.  

(10)  Community support provided for in point E of Section I of Annex VIII to the Act of 
Accession of Bulgaria and Romania aims at co-financing national direct payments or 
aids  under  Article  143c  of  Council  Regulation  (EC)  No  1782/2003  of  29  September 
2003  establishing  common  rules  for  direct  support  schemes  under  the  common 
agricultural policy and establishing certain support schemes for farmers and amending 
Regulations  (EEC)  No  2019/93,  (EC)  No  1452/2001,  (EC)  No  1453/2001,  (EC) 
No 1454/2001,  (EC)  1868/94,  (EC)  No  1251/1999,  (EC)  No  1254/1999,  (EC) 
No 1673/2000,  (EEC)  No  2358/71  and  (EC)  No  2529/20016.  For  this  reason,  that 
support  should  not  be  taken  into  account  for  the  calculation  of  the  balance  between 
objectives described in Article 17 of Regulation (EC) No 1698/2005. 

(11)  Regulation (EC) No 1698/2005 no longer includes economic viability as an eligibility 
condition  of  the  measure  concerning  investment  support.  The  related  derogation 
provided  for  Bulgaria  and  Romania  in  Annex  VIII  to  the  Act  of  Accession  should 
consequently be deleted. 

(12)  Regulation  (EC)  No  1290/2005  establishes  new  rules  concerning  the  financing  of 
expenditure on rural development. Since those provisions follow the same principles as 
Articles 31 and 32 of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying 

5 
6 

OJ L 209, 11.8.2005, p. 1. 
OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 2183/2005 
(OJ L 347, 30.12.2005, p. 56) 

EN 

7 

   EN 

 
                                                 
down general provisions on the Structural Funds7, which are referred to in the Act of 
Accession  of  Bulgaria  and  Romania,  the  specific  financial  provisions  provided  in 
Annex VIII to the Act of Accession are no longer necessary. In addition, there is a need 
to  modify  in  that  Annex  the  financial  contribution  of  the  Community  for  agri-
environment  and  animal  welfare  measures  since,  in  accordance  with  Article  70  of 
Regulation (EC) No 1698/2005, the co-financing rates are no longer set at measure but 
at axis level, 

HAS DECIDED AS FOLLOWS:  

Article 1 

Annex VIII to the Act of Accession of Bulgaria and Romania is amended as follows: 

(1) 

Section I is amended as follows: 

(a) 

points A and B are deleted; 

(b)  point C is replaced by the following: 

“C.  Leader + type measures 

In  addition  to  the  measures  provided  for  in  Article  63(c)  of  Regulation 
(EC) No 1698/2005, a support may be granted to the following measures:  

(a) 

building representative local development partnerships; 

(b)  drawing up integrated development strategies; 

(c) 

financing research and preparing applications for support.” 

(c) 

point D is replaced by the following: 

“D.  Farm advisory and extension services 

(1)  Support  shall  be  granted  for  the  provision  of  farm  advisory  and 

extension services. 

For  the  period  2007–2009,  that  support  cannot  be  included  in  the 
rural  development  programme  if  support  as  provided  for  in 
Article 24 of Regulation (EC) No 1698/2005 is foreseen. 

(2)  For  the  period  2010–2013,  support  shall  be  granted  only  for  the 
provision of services to farmers receiving semi-subsistence support 
as referred to in Article 20(d)(i) of Regulation (EC) No 1698/2005. 

As  a  minimum  the  advisory  services  referred  to  in  the  first 
subparagraph to farmers shall cover:  

(a) 

the  good 
the  statutory  management  requirements  and 
agricultural  and  environmental  conditions  referred  to  in 

7 

OJ  L  161,  26.6.1999,  p. 1.  Regulation  as  last  amended  by  Regulation  (EC)  No 173/2005  (OJ L 29, 
2.2.2005, p. 3). 

EN 

8 

   EN 

 
 
 
 
                                                 
Articles  4  and  5  of  Regulation  (EC)  No  1782/2003  and  in 
Annex III and IV thereto; 

(b)  occupational 
legislation.” 

safety 

standards  based  on  Community 

(d)  point E is amended as follows: 

(i) 

in point 3, the first sentence is replaced by the following : 

“The Community contribution to support granted under this subsection E 
in  Bulgaria  or  Romania  in  respect  of  each  of  the  years  2007,  2008  and 
2009 shall not exceed 20% of its respective annual allocation originating 
from the EAGGF Guarantee Section as referred to in Article 34(2) of the 
present Act of Accession.” 

(ii) 

the following point is added : 

“(5)  The Community financial contribution to this measure shall not be 
taken  into  account  for  the  calculation  of  the  balance  between 
objectives under Article 17 of Regulation (EC) No 1698/2005.” 

(2) 

(3) 

(e) 

points F and G are deleted; 

In Section II, point 1 is deleted; 

The text in Section IV is replaced by the following: 

“By way of derogation from Article 70(3)(a) of Regulation (EC) No 1698/2005, the 
financial contribution of the Community may amount to 80% for axis 1 and 3 as well 
as for the technical assistance. 

By  way  of  derogation  from  Article  70(3)(b)  of  Regulation  (EC)  No  1698/2005,  the 
financial contribution of the Community may amount to 82% for axis 2.” 

Article 2 

This Decision shall be drawn up in the Bulgarian, Spanish, Czech, Danish, German, Estonian, 
Greek, English, French, Irish, Italian, Latvian, Lithuanian, Hungarian, Maltese, Dutch, Polish, 
Portuguese,  Romanian,  Slovak,  Slovenian,  Finnish  and  Swedish  languages,  all  twenty-three 
texts being equally authentic. 

Article 3 

This Decision shall take effect on 1 January 2007 subject to the entry into force of the Treaty 
of Accession of Bulgaria and Romania. 

Done at Brussels,  

EN 

For the Council 
The President 

9 

   EN