Proposal for a Council Regulation amending Annex III to Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999
Date: 2006-11-24
Institutions: European Commission
Subjects: Bulgaria, Cohesion Fund, EU financing, European Regional Development Fund, European Social Fund, Romania, accession to the European Union, operation of the Institutions

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.11.2006 
COM(2006) 719 final 

Proposal for a 

COUNCIL REGULATION 

amending Annex III to Regulation (EC) No 1083/2006 laying down general provisions on 
the European Regional Development Fund, the European Social Fund and the Cohesion 
Fund and repealing Regulation (EC) No 1260/1999 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

In the context of the anticipated 1 January 2007 accession of Bulgaria and Romania 
to  the  European  Union  EU  Law  regarding  Cohesion  Policy,  and  in  particular 
Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on 
the  European  Regional  Development  Fund,  the  European  Social  Fund  and  the 
Cohesion Fund and repealing Regulation (EC) No 1260/19991 should be adapted to 
ensure that it extends to the Republic of Bulgaria and Romania as from the date of 
their accession to the European Union. 

A proposal for a Regulation has been drafted, replacing Annex III to Regulation (EC) 
No  1083/2006,  concerning  the  ceilings  applicable  to  co-financing  rates.  The 
amended Annex III includes Romania and Bulgaria in the countries listed in the first 
row of the table in the Annex, eligible for the highest rate of co-financing under the 
European Regional Development Fund, the European Social Fund and the Cohesion 
Fund. 

General context 

In  accordance  with  Article  4(3)  of  the  Treaty  concerning  the  accession  of  the 
Republic  of  Bulgaria  and  Romania  to  the  European  Union,  the  institutions  of  the 
Union  may  adopt  before  accession  adaptations  to  those  acts  of  the  institutions  that 
require such adaptation by reason of accession.  

Existing provisions in the area of the proposal 

The  proposal  amends  Regulation  (EC)  No  1083/2006  of  11 July  2006  laying  down 
general  provisions  on  the  European  Regional  Development  Fund,  the  European 
Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999. 

Consistency with other policies and objectives of the Union 

The  proposal  makes  technical  adaptations  to  existing  Community  Law  in  line  with 
the commitment to membership of the EU for Bulgaria and Romania. 

1 

OJ L 210, 31.7.2006, p. 25. 

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2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

The consultation of interested parties was not deemed necessary. 

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

No impact assessment was conducted. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

The  Regulation  proposed  would  replace  Annex  III  to  Regulation  (EC)  No 
1083/2006,  concerning  the  ceilings  applicable  to  co-financing  rates,  in  order  to 
include  Romania  and  Bulgaria  in  the  countries  eligible  for  co-financing  under  the 
European Regional Development Fund, the European Social Fund and the Cohesion 
Fund. 

Legal basis 

The legal basis employed is the Treaty of Accession of the Republic of Bulgaria and 
Romania2,  and  in  particular  Article  4(3)  thereof.  A  further  legal  basis  is  the  Act  of 
Accession  of  the  Republic  of  Bulgaria  and  Romania3,  and  in  particular  Article  56 
thereof. 

Subsidiarity principle 

Considerations  linked  to  the  application  of  the  subsidiarity  principle  have  already 
been taken into account in Regulation (EC) No 1083/2006 as initially adopted. This 
proposal  would  not  have  any  further  consequences  on  the  application  of  the 
subsidiarity principle.  

Proportionality principle 

Considerations linked to the application of the proportionality principle have already 
been taken into account in Regulation (EC) No 1083/2006 as initially adopted. This 
proposal  would  not  have  any  further  consequences  on  the  application  of  the 
proportionality principle.  

Choice of instruments 

2 
3 

OJ L 157, 21.6.2005, p. 11. 
OJ L 157, 21.6.2005, p. 203. 

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Proposed  instruments:  The  proposal  amends  an  existing  Regulation  and  should 
therefore also take the form of a Regulation. 

4. 

BUDGETARY IMPLICATION 

This  proposal  has  no  budgetary  impact,  as  the  annual  breakdown  of  commitment 
appropriations,  provided  under  Annex  I  of  Regulation  (EC)  1083/2006,  already 
includes  the  appropriations  for  Romania  and  Bulgaria,  in  accordance  with  the 
financial perspectives. 

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Proposal for a 

COUNCIL REGULATION 

amending Annex III to Regulation (EC) No 1083/2006 laying down general provisions on 
the European Regional Development Fund, the European Social Fund and the Cohesion 
Fund and repealing Regulation (EC) No 1260/1999 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty of Accession of the Republic of Bulgaria and Romania4, and in 
particular Article 4(3) thereof, 

Having  regard  the  Act  of  Accession  of  the  Republic  of  Bulgaria  and  Romania5,  and  in 
particular Article 56 thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

Pursuant to Article 56 of the Act of Accession, where acts which remain valid beyond 
1  January  2007,  and  require  adaptation  by  reason  of  accession,  and  the  necessary 
adaptations  have  not  been  provided  for  in  the  Act  of  Accession  or  its  Annexes,  the 
necessary  acts  shall  be  adopted  by  the  Council,  unless  the  Commission  adopted  the 
original act. 

Council  Regulation  (EC)  No  1083/20066  defines  the  general  rules  governing  the 
assistance  of  the  European  Regional  Development  Fund,  the  European  Social  Fund 
and the Cohesion Fund and their objectives. Pursuant to Article 53, Annex III to that 
Regulation establishes the ceilings applicable to co-financing rates in the operational 
programmes,  by  Member  State  and  by  objective,  on  the  basis  of  objective  criteria. 
Annex  III  to  Regulation  (EC)  No  1083/2006  should  be  adapted  in  order  to  take  into 
account the accession of Bulgaria and Romania to the European Union. 

It is necessary to ensure that any technical adaptation to the Structural and Cohesion 
Funds legislation is adopted as soon as possible so as to allow Bulgaria and Romania 
to present programming documents as from the date of their accession to the European 
Union. 

(4) 

Regulation (EC) No 1083/2006 should therefore be amended accordingly, 

. 

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5 
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EN 

OJ L 157, 21.6.2005, p. 11. 
OJ L 157, 21.6.2005, p. 203. 
OJ L 210, 31.7.2006, p. 25. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Annex  III  to  Regulation  (EC)  No  1083/2006  is  replaced  by  the  text  in  the  Annex  to  this 
Regulation.  

This Regulation shall enter into force only subject to and on the date of the entry into force of 
the Treaty of Accession of Bulgaria and Romania. 

Article 2 

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

Done at Brussels, 

For the Council 
The President 

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ANNEX  

"ANNEX III 

Ceilings applicable to co-financing rates 

(referred to in Article 53) 

Criteria 

Member States  

ERDF and ESF 

Percentage of eligible 
expenditure 

(1)  Member  States  whose 
average  GDP  per  capita  for 
the  period  2001  to  2003  was 
the  EU-25 
below  85%  of 
average  during 
same 
the 
period. 

Bulgaria, Czech Republic, 
Estonia,  Greece,  Cyprus, 
Latvia, 
Lithuania, 
Hungary,  Malta,  Poland, 
Portugal, 
Romania, 
Slovenia, Slovakia  

the 
and 

85% 
for 
Convergence 
Regional 
competitiveness  and 
employment 
objectives 

Spain  

(2)  Member  States  other  than 
those under (1) eligible for the 
the 
transitional 
Cohesion  Fund  on  1  January 
2007. 

regime  of 

80% 
the 
for 
Convergence  and  the 
regions 
phasing-in 
under 
the  Regional 
competitiveness  and 
employment 
objective 

50% for the Regional 
competitiveness  and 
employment 
objective 
phasing-in regions 

outside 

Cohesion Fund 
Percentage of 
eligible expenditure 

85% 

85% 

(3)  Member  States  other  than 
those referred to under (1) and 
(2). 

(4)  Member  States  other  than 
those referred to under (1) and 
(2). 

Republic 

Denmark, 
Belgium, 
Federal 
of 
Germany,  France,  Ireland, 
the 
Italy,  Luxemburg, 
Austria, 
Netherlands, 
Finland, 
and 
United Kingdom. 

Sweden 

Republic 

Denmark, 
Belgium, 
Federal 
of 
Germany,  France,  Ireland, 
Italy,  Luxemburg, 
the 
Austria, 
Netherlands, 
and 
Finland, 
United Kingdom. 

Sweden 

75% 
for 
Convergence 
objective 

the 

- 

50% for the Regional 
competitiveness  and 
employment 
objective 

- 

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Criteria 

Member States  

ERDF and ESF 

Percentage of eligible 
expenditure 

Spain, 
Portugal 

France 

and 

50% 

Outermost 

(5) 
Regions 
referred to in Article 299(2) of 
the Treaty benefiting from the 
additional  allocation  for  these 
regions 
in 
for 
provided 
paragraph 20 of Annex II 

Outermost 

(6) 
Regions 
referred to in Article 299(2) of 
the Treaty 

Spain, 
Portugal 

France 

and 

the 
and 

85  %  under 
Convergence 
Regional 
competitiveness  and 
employment 
objectives 

" 

Cohesion Fund 
Percentage of 
eligible expenditure 

- 

- 

EN 

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