Proposal for a Council Decision adapting Annex VIII to the Act of Accession of Bulgaria and Romania
Date: 2007-10-12
Institutions: European Commission
Subjects: Bulgaria, Member States' contribution, Romania, accession to the European Union, fund (EU), rural development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.10.2007 
COM(2007) 594 final 

2007/0217 (CNS) 

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 

Section IV of Annex VIII to the Act of Accession of Bulgaria and Romania established the 
financial contribution of the Community for rural development at 85% for agri-environment 
and animal welfare measures and 80% for all other measures. 

Council  Regulation  (EC)  No  1698/2005  of  20  September  2005  on  support  for  rural 
development  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  has 
introduced  changes  to  the  acquis  on  which  the  accession  negotiations  with  Bulgaria  and 
Romania  were  based.  Article  70  of  Regulation  (EC)  No  1698/2005  has  introduced  a  new 
financial  architecture,  under  which  co-financing  rates  are  no  longer  set  at  the  level  of  the 
measure, but at axis level. 

Council Decision 2006/664/EC of 19 June 2006 consequently adapted the Act of Accession of 
Bulgaria and Romania by replacing the previous text with a paragraph introducing financial 
contributions at axis level. 

Annex II of Commission Regulation (EC) No 1974/2006 of 15 December 2006 laying down 
detailed  rules  for  the  application  of  Council  Regulation  (EC)  No  1698/2005  on  support  for 
rural  development  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD),  as 
amended by Commission Regulation (EC) No 434/2007 by reason of Accession of Bulgaria 
and Romania to the European Union, provides for an indicative financial breakdown by rural 
development axis and measure, including the measure "complements to direct payments", in 
the programmes. 

The measure "Complements to direct payments" was established in the Act of Accession as a 
transfer to Pillar I of the CAP of a limited proportion of Pillar II resources, for the years 2007, 
2008  and  2009.  As  a  transfer  to  Pillar  I,  it  falls  outside  the  architecture  of  the  four  rural 
development  axes,  and  therefore  is  not  covered  by  the  co-financing  rates  per  axis  now 
specified  in  the  Act  of  Accession.  However,  a  maximum  co-financing  rate  of  80%  as 
originally established for this measure in the Act of Accession should be maintained. 

The Act of Accession of Bulgaria and Romania should therefore be adapted to specify that the 
maximum  financial  contribution  of  the  Community  to  the  measure  "complements  to  direct 
payments" is 80%, the same as for axes 1 and 3 and for technical assistance. The co-financing 
rate  for  axis  2  has  been  established  at  82%  by  Council  Decision  of  19  June  2006  adapting 
Annex VIII to the Act of Accession of Bulgaria and Romania. Article 70(3)(b) of Regulation 
(EC) No 1698/2005 fixes the co-financing rate for axis 4 at 80%. 

The  guiding  principles  followed  in  preparing  this  adaptation  has  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. 

This proposal has no financial implications for the Community budget. 

EN 

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   EN 

 
2007/0217 (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, 

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 Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

1 
2 

3 
4 

Article  70  of  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  establishes  the  percentages  of  the  Community  financial 
contribution at the axis level. 

Section  IV  of  Annex  VIII  to  the  Act  of  Accession  of  Bulgaria  and  Romania,  as 
amended by Council  Decision 2006/664/EC of 19 June 2006  adapting Annex VIII to 
the  Act  of  Accession  of  Bulgaria  and  Romania3,  establishes,  by  way  of  derogation 
from  Article 70  of  Regulation  (EC)  No 1698/2005,  the  percentages  per  axis  of  the 
Community support granted in Bulgaria and Romania for rural development under the 
EAFRD.  Such  contribution  may  amount  to  80%  for  axis 1,  axis 3  and  technical 
assistance and to 82% for axis 2. 

The co-financing rates specified per axis cannot apply to the amounts that, as provided 
for in Section I, sub-section E, of Annex VIII to the Act of Accession of Bulgaria and 
Romania,  may  be  granted  to  farmers  eligible  for  complementary  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  under  the  common 
agricultural policy and establishing certain support schemes for farmers4. 

OJ C …, …, p. .... 
OJ L 277, 21.10.2005, p. 1. Regulation as last amended by Regulation (EC) No 2012/2006 (OJ L 384, 
29.12.2006, p. 8). 
OJ L 277, 9.10.2006, p. 4. 
OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 552/2007 
(OJ L 131, 23.5.2007, p. 10). 

EN 

3 

   EN 

 
                                                 
(4) 

The  maximum  financial  contribution  of  the  Community  to  complements  to  direct 
payments  amounts  needs  to  be  specified  also  for  the  purpose  of  application  of 
Commission  Regulation  (EC)  No 1974/2006  of  15  December  2006  laying  down 
detailed rules for the application of Council Regulation (EC) No 1698/2005 on support 
for  rural  development  by  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD)5 which provides, in Annex II, for an indicative financial breakdown by rural 
development  axis  and  measure,  including  the  measure  'complements  to  direct 
payments'. 

(5)  With view to maintain the results of the accession negotiations and the consistency of 
the  co-financing  rates  system  after  technical  adaptations  has  been  done  to  the 
regulations concerning rural development, the maximum financial contribution of the 
Community to complements to direct payments amounts should be fixed at the same 
percentage as for axis 1 and 3 as well as for the technical assistance, 

HAS DECIDED AS FOLLOWS: 

Article 1 

In Annex VIII to the Act of Accession of Bulgaria and Romania, 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, technical assistance as 
well as for the complements to direct payments. 

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  take  effect  on  the  day  following  that  of  its  publication  in  the  Official 
Journal of the European Union. 

Done at Brussels, … 

For the Council 
The President 

5 

OJ  L  368,  23.12.2006,  p. 15.  Regulation  as  amended  by  Regulation  (EC)  No 434/2007  (OJ  L 104, 
21.4.2007, p. 8). 

EN 

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   EN