Report from the Commission - 19th annual report on implementation of the structural funds (2007) {SEC(2008) 2649}
Date: 2008-10-20
Institutions: European Commission
Subjects: Community budget, Structural Funds, activity report, implementation of the budget, structural expenditure

EN 

EN 

   EN 

 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.10.2008 
COM(2008) 659 final 

REPORT FROM THE COMMISSION 

19TH ANNUAL REPORT ON IMPLEMENTATION OF  
THE STRUCTURAL FUNDS (2007) 

{SEC(2008) 2649} 

EN 

   EN 

 
 
  
 
 
 
TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

6. 

Introduction .................................................................................................................. 3 

Analysis of Implementation ......................................................................................... 4 

Consistency and Coordination ..................................................................................... 8 

Evaluations................................................................................................................... 9 

Controls ...................................................................................................................... 10 

Committees Assisting the Commission ..................................................................... 12 

EN 

2 

   EN 

REPORT FROM THE COMMISSION 

19TH ANNUAL REPORT ON IMPLEMENTATION OF  
THE STRUCTURAL FUNDS (2007) 

This report is presented in accordance with Article 45(2) of Regulation (EC) No 1260/1999 
laying  down  general  provisions  on  the  Structural  Funds.  It  covers  the  activities  linked  to 
Structural Funds 2000-2006 assistance during 2007. 

More  detailed  information  is  available  in  the  Commission  staff  working  paper  (annexed  to 
this report). 

1. 

INTRODUCTION 

2007  was  the  eighth  year  of  implementation  linked  to  the  2000-2006  programming 
period in which the sound and efficient management of Structural Funds programmes 
and projects continued. Altogether 659 programmes were managed in 2007.1 

Significant efforts continued to be made in order to raise the quality of programmes 
and  projects  co-financed  by 
the  Structural  Funds.  The  reinforcement  of 
financial management,  control  and  evaluation  also  contributed  to  the  promotion  of 
good governance of the co-funded programmes and projects. The partnership model 
set  up  between  the  Commission  and  the  national  and  regional  authorities  in  the 
Member  States  for  the  implementation  of  the  programmes  has  become  an 
outstanding success.  

Member States and regions with programmes of high execution rates could start their 
preparation  for  the  closure  of  assistance.  The  general  framework  for  the  closure  of 
Structural  Funds  2000-2006  assistance  was  laid  down  by  the  adoption  of  the 
Commission Decision C(2006) 3424 in 2006. 

In  addition  to  the  implementation  of  2000-2006  Structural  Funds  programmes  and 
projects  as  well  as  the  preparation  for  their  closure,  Commission  services  were 
heavily  involved  in  the  planning  and  programming  of  the  2007-2013  period 
during 2007.  Negotiations  were  concluded  on  a  total  of  27  national  strategic 
reference frameworks and 428 programmes (311 ERDF, 117 ESF) during the year2. 

In order to be able to demonstrate the added value of European Cohesion policy, the 
ex  post  evaluation  of  Objectives  1  and  2  2000-2006  programmes  was  launched 
during  2007.  Preparatory  work  was  also  undertaken  on  designing  the  ex  post 
evaluations of INTERREG and URBAN. 

1 

2 

226 Objective 1 and Objective 2, 47 Objective 3, 12 FIFG (outside Objective 1), 81 INTERREG, 71 
URBAN, 27 EQUAL, 73 LEADER+ and 122 Innovative Actions programmes. 
See Communication on the results of negotiations on strategies and programmes for the programming 
period 2007-2013 

EN 

3 

   EN 

                                                 
Under  the  "Regions  for  Economic  Change"  Initiative,  the  Commission  has  been 
active in reinforcing the identification of good practice projects in different fields of 
economic  modernisation  through  network  activities  and  encouraging  dissemination 
to the mainstream operational programmes.  

In  October  2007,  the  Commission  organised  jointly  with  the  Committee  of  the 
Regions, the  OPEN DAYS "European week of regions and cities". The event, with 
the headline "Making it happen: regions deliver growth and jobs", was attended by 
more than 5500 participants from 34 countries and 212 regions. . 

On  28-29  June  2007,  Potsdam  hosted  the  conference  ‘50th  Anniversary  of  the 
European  Social  Fund  –  Review  and  Prospects’.  This  was  the  official 50th 
anniversary event for the European Social Fund. 

2. 

ANALYSIS OF IMPLEMENTATION 

2.1. 

Budget Implementation 

2.1.1.  ERDF 

In  terms  of  budgetary  execution,  2007  was  an  exceptional  year.  The  overall 
execution rate of  ERDF payment appropriations reached 99.9 %, while the level of 
payment  appropriations  was  higher  than  ever,  at  17.4  billion  for  2000-2006 
programmes.  For  Objectives  1  and  2  and  the  Community  Initiatives,  full 
implementation of payment appropriations has been reached. Moreover, Objective 1 
programmes have shown a higher demand for reimbursements than initially forecast 
thus offsetting advance payments to the new programmes whose adoption took place 
late in December 2007 or was postponed to 2008.  

At the end of 2007, commitments from previous years on which payments were still 
to  be  made  (RAL)  totalled  EUR 27.7 billion  compared  with  EUR 45.8  billion 
in 2006. 

In  2007  again,  the  automatic  decommitment  ("n+2")  rule  proved  to  be  an  efficient 
tool  to  stimulate  Member  States  to  devote  resources  and  efforts  to  the  timely 
execution of European programmes. The latest forecasts demonstrate that the risk of 
possible  decommitments  should  not  exceed  0.7 %  of  2005  commitments  (around 
EUR 140 million). 

In 2007, the ERDF absorption rate for all Member States reached 79 % of the overall 
2000-2006  financial  allocation.  New  Member  States  achieved  record  absorption 
figures,  receiving  in  2007  EUR 3 billion,  nearly  as  much  as  they  were  reimbursed 
altogether  in  2004,  2005  and  2006  (EUR 3.5  billion).  By  end  of  2007,  they  had 
reached an average consumption of 71 % of their financial allocations for the period 
2004-2006, whereas the average ERDF absorption rate for EU15 (period 2000-2006) 
was at 85 %.  

2.1.2.  ESF 

The overall execution rate of ESF payment appropriations reached 99.9 %, while the 
level of payment appropriations was higher than last year. 

EN 

4 

   EN 

ESF  total  commitments  related  to  2007-13  operational  programmes  amounted  to 
EUR 10.486 million  (99.88 %).  The  remaining  credits  (EUR  13  163  237)  not 
committed in 2007 correspond to the French OP "Martinique Region" which was not 
expected  to  be  adopted  in  2007.  The  cumulative  payment  credits  consumption 
reached  EUR 1 513 million  which  corresponds  to  99.87%  of  the  annual  payment 
credits  (EUR 1 515  million).  The  difference  (EUR 1 957 184.6)  corresponds  to  the 
advance payment for the French OP "Martinique Region" and will be paid in 2008. 

Concerning the application of the "n+2" rule, at the end of 2007, twelve programmes 
were  involved  and  EUR  92.2  million  were  concerned.  The  risk  of  possible 
decommitments should not exceed 0.8 % of 2005 commitments.  

The total outstanding payments on pre-2007 commitments at the end of 2007 stood at 
EUR 12 billion.  The  RAL 
to 
EUR 179 million (compared with EUR 204.6 million at the end of 2006). 

the  pre-2000  period  now  amounts 

from 

2.1.3.  EAGGF 

The total amount paid in 2007 was EUR 3.4 billion. The financial execution rate of 
the  EAGGF  payment  appropriations  for  rural  development  programmes  for  the 
period 2000-2006 was fully achieved at 100 %. 

As rural development operational programmes are not part of the Structural Funds in 
the  new  programming  period  2007-2013,  there  is  a  slight  decrease  in  the  overall 
amount paid in 2007 compared with the previous year (i.e. EUR 3.6 billion). In order 
to  realise  full  financial  execution,  some  internal  transfers  were  made,  mostly  from 
the  new  European  Agricultural  Fund  for  Rural  Development  (EAFRD).  In 2007, 
there  are  no  commitments  for  rural  development  programmes  related  to  the  2000-
2006 period. 

At the end of 2007, commitments from previous years on which payments were still 
to be made (RAL) totalled EUR 3.9 billion, compared with EUR 7.3 billion in 2006. 

As regards the "n+2" rule (applying at the end of 2007 to commitments made in 2005 
or  before)  first  estimates  show  that  the  risk  of  possible  decommitments  concerning 
rural development funds is around EUR 70 million. 

2.1.4.  FIFG 

The  budgetary  implementation  in  2007  was  highly  satisfactory.  97.5%  of  payment 
appropriations  were  executed.  The  payment  rate  reached  96.44%  in  Objective  1 
regions and 99.96% in regions outside Objective 1.  

The  total  RAL  for  the  FIFG  at  the  end  of  the  year  2007  reached  EUR  811  million 
(compared to EUR 1 336 million in 2006).  

As regards the implementation of the “n+2 rule”, the estimates of decommitments are 
around EUR 54 million for 2007. 

EN 

5 

   EN 

2.2. 

Programme Implementation 

2.2.1.  Objective 1 

Objective  1  programmes  focused  their  investments  on  basic  infrastructure  projects 
(41.4%),  with  over  half  of  all  investment  in  this  category  spent  on  transport 
infrastructure (53%). More than one third (33.5%) of the Objective 1 resources were 
invested  in  productive  environment,  where  the  focus  continues  to  be  on  assisting 
SMEs  and  craft  sector  (28.6%).  The  projects  aimed  at  human  resources  represent 
23.2% of resources in Objective 1 regions. Main interventions in this field are almost 
equally labour market policies (31.3%) and education and vocational training (31%).  

2.2.2.  Objective 2 

In  Objective  2  regions,  main  focus  of  programmes  continues  to  be  on  productive 
environment  with  over  half  of  all  financial  resources  devoted  to  this  category 
(55.8%). Within this field, assistance to SMEs and craft sector is the most dominant 
intervention  (56.6%).  The  second  most  important  field  of  intervention  is  basic 
infrastructure  with  39.6%  of  all  Objective  2  resources.  Unlike  Objective  1 
programmes,  the  most  important  areas  in  financial  terms  are  planning  and 
rehabilitation  of  areas  (45.4%).  In  the  category  human  resources  (10.1%  of  all 
investment  in  Objective  2  regions),  workforce  flexibility,  entrepreneurial  activity, 
innovation,  information  and  communication  technologies  are  the  main  fields  of 
investment (30.8%).  

2.2.3.  Objective 3 

The  main  emphasis  of  ESF  programme  implementation  in  2007  continued  to  be 
support for the European Employment Strategy, particularly those measures aimed at 
improving  employability  in  the  labour  market  (32%),  lifelong  learning  (27%)  and 
equal  opportunities  (6%).  Furthermore,  there  was  still  a  marked  difference  in 
concrete  implementation  of  programmes  as  measured  by  financial  implementation, 
between 
to  be 
implemented, and EU10, where some Member States are experiencing considerable 
difficulties in getting some projects and measures under way. 

long-established  programmes  continued 

the  EU15,  where 

2.2.4.  Fisheries outside Objective 1 

The implementation of the structural policy in the fisheries sector improved in year 
2007.  This  was  reflected  in  the  financial  implementation  of  the  FIFG  operational 
programmes,  which  contributed  to  the  achievements  of  the  objectives  of  the 
Common Fisheries Policy. 

2.2.5.  Community initiatives 

2.2.5.1.  INTERREG 

By the end of 2007, the 81 INTERREG III/Neighbourhood Programmes had selected 
about  15  000  projects  and  networks  aiming  at  reducing  the  effects  of  national 
borders,  language  barriers  and  cultural  differences  and  developing  border  areas, 
supporting strategic development and territorial integration across larger zones of the 
Union  and  better  integration  with  its  neighbours.  Effectiveness  of  regional 

EN 

6 

   EN 

development  policies  and  instruments  has  also  been  supported  through  sharing  of 
good practice and exchange of experience. 

In 2007, implementation continued to progress well with a payment execution rate of 
68%.  Due  to  the  more  specific  and  challenging  nature  of  cooperation  programmes 
and  projects  de-commitments  due  to  the  "n+2"  rule  could  not  be  avoided  for  some 
programmes. 

2.2.5.2.  EQUAL 

In  2007,  good  progress  continued  to  be  made  with  the  implementation  of  the  27 
programmes  and  more  than  3  300  projects  under  EQUAL.  As regards  financial 
implementation, six Member States were not able to use part (between 8% and 49%) 
of their 2005 budgetary commitment ("n+2" rule).  

In  order  to  make  maximum  use  of  the  results  of  the  EQUAL  programmes  and 
projects  by  informing  policy  and  practice,  including  the  shape  of  the  national  and 
regional ESF programmes for the programming period 2007-2013, the Commission 
in  partnership  with  the  Member  States  continued  the  work  launched  in  2006. 
This work  covered  relevant  policy  issues  such  as  asylum  seekers,  diversity  and 
empowerment,  youth  employment,  the  (re)-integration  of  ex-offenders,  social 
economy, 
together  with 
management  principles  (partnership,  transnational  cooperation,  innovation  and 
gender mainstreaming). 

inclusive  business  creation,  media  and  diversity, 

2.2.5.3.  URBAN 

In 2007, the management of the 71 operational programmes implementing URBAN 
Community  Initiative  continued  through  the  analysis  of  annual  reports,  monitoring 
committees and annual meetings. An active follow-up of the programme URBACT I 
was ensured, including the launch of two Fast Track pilot networks. The URBACT II 
programme, one of the main instruments for implementing the Regions for Economic 
Change initiative, was approved and launched. URBACT has developed 20 networks 
and 6 thematic working groups, as well as working groups bringing together several 
networks around a particular theme.  

2.2.5.4.  LEADER+ 

The  Community  Initiative  LEADER+  consists  of  three  actions:  implementation  of 
local  development  strategies  by  public  private  partnerships,  cooperation  between 
rural  territories  and  networking.  73  LEADER+  programmes  for  the  EU  15  were 
approved  for  the  period  2000-2006.  Recently  acceded  EU  Member  States  had  the 
option  of  integrating  Leader+  type  measures  into  their  EAGGF  Objective  1 
programmes. 

2.2.6. 

Innovative actions 

2.2.6.1.  ERDF 

DG Regional Policy also managed 122 Regional Programmes of Innovative Actions 
(out  of  which  26  were  closed  in  2007)  which  contribute  to  the  promotion  of 
innovation  at  a  strategic  level  in  the  regions,  by  experimenting  with  innovative 

EN 

7 

   EN 

methods and practices designed to improve the level of innovation and the quality of 
EU  assistance  under  three  themes:  knowledge  and  technological  innovation, 
information society and sustainable development. 

2.2.6.2.  ESF 

During  2007,  the  six  remaining  projects  relating  to  the  call  for  proposals  "Local 
Employment  Strategies  and  Innovation"  were  closed.  DG  EMPL  also  managed  80 
transnational projects selected under the three rounds of the last call on "Innovative 
approaches to the management of change" (22 closed in 2007). Such projects support 
the development and testing of innovative actions to anticipate and manage change 
on two priority areas: management of restructuring and management of demographic 
change. In addition, thirteen projects (of which five were closed in 2007) are aimed 
at  mainstreaming  the  results  of  previously  selected  projects  under  the  call  on 
"Transfer and dissemination of innovation from ESF Article 6 projects". 

2.2.6.3.  FIFG 

DG  Maritime  Affaires  and  Fisheries  managed  29  innovative  action  projects  (out  of 
which the last two were closed in 2007). 

3. 

CONSISTENCY AND COORDINATION 

3.1. 

Consistency with other Community policies 

3.1.1.  Competition 

Following the provisions of the Regulation 1083/2006, the approach to the control of 
State aid issues in the new Structural Funds interventions is fundamentally different 
from  the  approach  applied  for  the  programming  period  2000-2006.  Under  the  new 
legislative framework, the full responsibility for the compliance of Structural Funds’ 
operations with State aid rules lies with the Member State, and in particular, with the 
Managing Authorities. The new approach, however, in no way affects the possibility 
of Commission's actions including the examination of allegedly non-notified measure 
or the recovery of incompatible non-notified aid co-financed by the Structural Funds. 

3.1.2. 

Internal market 

Member  States  are  also  required  to  verify  that  operations  financed  by  the  Funds 
comply with EU Public Procurement Directives. Where the Commission is informed 
of  any  breach  of  EC  legislation  or  where  audits  demonstrate  that  this  is  the  case, 
appropriate action is taken. A new regulatory framework for public procurement law 
and the awarding of concessions has been introduced in order to provide greater legal 
certainty both for the private and the public sector. 

3.1.3.  Environment 

In relation to the on-going programmes, the focus has continued to be on supporting 
compliance  with  the  Community  acquis  in  the  field  of  urban  wastewater, 
water supply, waste management and supporting biodiversity. Other important areas 
of  investment  have  been  in  eco-innovation  and  rehabilitation  of  polluted  soil. 

EN 

8 

   EN 

The promotion  of  sustainable  development  has  continued  through  investments  in 
introducing 
environmentally-friendly 
environmental  criteria 
into  project  selection,  and  by  pro-actively  ensuring 
compliance of projects with environmental legislation. 

transport  and  energy,  as  well  as  by 

3.1.4.  Transport 

Cohesion programmes continue to be the main source of Community support for the 
realisation of EU priorities in the transport sector, as introduced in the White Paper 
"European  transport  policy  for  2010:  time  to  decide"  and  its  mid-term  review 
published in 2006. Accordingly, the Funds have been used in TEN-T projects as well 
as  projects  supporting co-modality,  energy  efficiency  in  transport,  intelligent 
transport systems, urban transport mobility. 

3.1.5.  Gender equality 

The  Commission  worked  on  the  implementation  of  the  "Roadmap  for  Equality 
between Women and Men”, reflecting the Commission’s commitment to this issue. 
In  this  context,  gender  equality  and  gender  mainstreaming  was  a  horizontal  issue 
discussed  for  all  programmes  in  the  new  Cohesion  Policy  Period  2007-2013.  A 
meeting of the High Level Group on Gender Mainstreaming in the Structural Funds 
in June 2007 underlined the importance of implying gender bodies in the elaboration 
and implementation of the programmes. 

3.2. 

Coordination of instruments 

3.2.1.  The Structural Funds and the Cohesion Fund 

In  2000-2006,  all  25  Member  States  benefited  from  the  support  of  the  Structural 
Funds,  while  13  Member  States  also  benefited  from  the  Cohesion  Fund  which 
supports  the  less  prosperous  countries.  The  Structural  Funds  have  been  carefully 
co-ordinated  among  themselves,  and  vis-à-vis  the  Cohesion  Fund  (ERDF  in 
particular), to avoid duplication in projects supported.  

3.2.2.  The Structural Funds and the EIB/EIF 

In  the  framework  of  JASPERS  (Joint  Assistance  in  Supporting  Projects  in 
European Regions),  action  plans  (work  programmes)  for  2007  were  agreed  with 
EU12 by the middle of the year.  

The  new  JEREMIE  initiative  (Joint  European  Resources  for  Micro-to-Medium 
Enterprises) to improve access to finance for SMEs in the regions had a successful 
first  year  in  2007,  being  used  by  regions,  managing  authorities,  as  well  as  in  the 
business and banking sectors.  

The  JESSICA  initiative  (Joint  European  Support  for  Sustainable  Investment  in 
City Areas), focusing on sustainable investment, growth and jobs in Europe’s urban 
areas, introduces  a  cultural  shift  in  how  Structural  Funds  support  is  delivered, 
encouraging  recyclable  forms  of  assistance  and  moving  away  from  an  exclusive 
reliance on grants. 

EN 

9 

   EN 

4. 

EVALUATIONS 

the  Commission  continued 

In  2007, 
to  support 
decision-making  under  Cohesion  Policy  and  contributed  to  the  quality  of  the 
programmes for the 2007-2013 period.  

to  carry  out  evaluations 

The  evaluations  completed  in  2007  were  an  analysis  of  the  impact  of  Cohesion 
Policy, a study on the development of evaluation capacity in the Member States and 
a study on the economic impact of convergence. The Commission also launched the 
ex post evaluation of Objectives 1 and 2 for the 2000-2006 period, a set of a total of 
twelve  interlinked  phased  "work  packages"  to  explore  different  aspects  of  the 
effectiveness and efficiency of Cohesion Policy. In respect of the ex post evaluation 
of  the  ESF  2000-2006  programmes,  two  preparatory  studies  to  collect  essential 
information were carefully planned in 2007. 

For  the  assessment  of  the  actual  results  and  impacts  of  ESF  interventions,  new 
monitoring  systems  and  evaluation  arrangements  have  been  set  up  at  national  level 
under  the  guidance  of  Commission  services.  The  evaluation  of  the  EQUAL 
Community  Initiative  continued  throughout  2007  to  identify  successful  innovative 
practices that can be mainstreamed into the ESF programmes. 

5. 

CONTROLS 

5.1. 

ERDF 

For  the  1994-1999  programming  period,  closure  audits  have  been  completed  on  a 
sample of 56 mainstream programmes and one INTERREG programme covering all 
EU15 Member States. Eighteen enquiries were closed and corrections amounting to 
EUR  23.9  million  were  applied  (including  a  formal  Commission  decision  of 
EUR 9.6 million). 

For the 2000-2006 period, the audits comprise two phases: a systems review and the 
audit of a sample of projects selected on a representative basis. The on-the-spot audit 
work initially planned was concluded by end 2006 for EU15 and end 2007 for EU10. 
Additional audits on 25 programmes were carried out in 2007 to extend coverage or 
address  specific  risks  where  this  need  had  been  identified  from  audit  results,  or  to 
follow up implementation of action plans. At the end of 2007, 214 audit missions (of 
which  13  INTERREG)  had  been  carried  out  and  95  programmes  with  61%  of  the 
planned ERDF contribution had been audited. 

5.2. 

ESF 

For the 1994-1999 programming period, seven programmes were closed in 2007, one 
of which was not corrected, and five which had a total correction of EUR 3.4 million 
(BE,  ES,  FR,  IT,  and  UK).  During  the  same  period,  four  procedures  amounting  to 
EUR 13 million were initiated regarding three Member States (BE, DE, and UK). 

For  the  2000-2006  95  audit  missions  were  organised  involving  the  audit  of  both 
(a) unaudited (in part, or in full) operational programmes identified in the 2007 risk 
analysis,  and  (b)  follow-up  missions  on  the  implementation  of  recommendations 
issued  by  the  ESF  audit  unit,  or  on  the  results  of  audits  undertaken  by  the  ECA. 

EN 

10 

   EN 

The process  of  substantive  testing  was  conducted  in  2007,  covering  433  projects 
through  desk  reviews  and  270  through  on-the-spot  visits.  The  cumulative  coverage 
(in  amounts)  of  the  2000-2006  programming  period,  including  additional  coverage 
by  national  audits,  reached  98.9  %.  Currently,  the  auditing  of  520  projects  in  the 
course of 20 audits is planned for 2008.  

5.3. 

EAGGF 

As  regards  the  1994-1999  period,  the  ex-post  audit  programme  was  already 
completed in 2006. Four financial correction decisions covering twelve programmes 
were adopted by the Commission during the year.  

For  the  period  2000-2006  (EU-25),  19  programmes  covering  18%  of  planned 
expenditure were audited in 2007. By the end of the year, a total of 87 programmes 
out of the 152 approved EAGGF-Guidance programmes had been subject to an audit. 
The programmes audited cover 92% of the planned EAGGF contribution and 57% of 
the  number  of  programmes.  One  financial  correction  decision  covering  one 
programme was adopted by the Commission during the year. 

5.4. 

FIFG 

The ex-post control sector carried out a total of ten on-the-spot controls in the course 
of  2007  for  the  FIFG.  The  ten  FIFG  audits  carried  out  in  2007,  covering  twelve 
operational  programmes,  focused  on  the  verification  and  follow-up  of  the  effective 
functioning of management and control systems for the period 2000-2006. 

In total, DG  MARE systems audits  have  covered  93.6%  of  total  FIFG contribution 
for  2000-2006.  For  the  other  programmes,  the  assurance  is  gained  from  other 
Structural Fund DG's audit work and/or national audits. 

5.5. 

OLAF 

During  2007,  OLAF  undertook  37  missions  in  the  Member  States  relating  to 
measures co-financed by the Structural Funds. Some 19 of these missions concerned 
on-the-spot  checks3  (during  which  26  on-the-spot  controls  were  carried  out  on 
economic  operators)  and  18  other  types  of  missions  were  carried  out  to  gather 
information or to assist either national administrations or judicial authorities.  

In  2007,  Member  States  communicated  to  the  Commission,  in  accordance  with 
Regulation  (EC)  No  1681/944,  some  3  7405  notifications  of  irregularities  involving 
EUR  717  431  387  affecting  co-financed  measures  of  the  1994-99  and  2000-2006 
programming  periods.  124  notifications  concern  the  1994-99  programming  period 
with  a  financial  impact  of  approximately  EUR  33  million.  Member  States  have 
informed  the  Commission  that  administrative  and/or  judicial  procedures  have  been 
concluded  at  national 
level  for  a  number  of  cases  and  an  amount  of 
EUR 153 465 848 has been recovered. 

3 
4 
5 

EN 

Regulation (EC) N° 2185/1996, OJ L 292, 15.10.1996, p. 2 

OJ L 178, 12.07.1994, p. 43 
2006:  number  of  communicated  cases  2  988;  overall  amount  related  to  the  communications 
EUR 516 697 561 

11 

   EN 

                                                 
6. 

COMMITTEES ASSISTING THE COMMISSION 

6.1. 

Coordination Committee of the Funds (COCOF) 

A new Coordination Committee of the Funds (COCOF) was established to provide a 
forum  to  present  and  discuss  the  interpretative  documents  of  the  Commission  with 
the objective of sharing the views with the Member States. In 2007, the main topics 
discussed  were 
the 
European Grouping  of  Territorial  Co-operation,  numerous  guidance  notes  on  the 
Audit Strategy and Compliance Assessment, and a study on regional expenditure of 
ERDF and Cohesion Fund. 

the  eligible  expenditures 

the  2007-2013  period, 

in 

6.2. 

ESF Committee 

In  the  ESF  Committee  (Committee  pursuant  to  Article  147  of  the  Treaty),  the 
implementation of the ESF was discussed, and more specifically the visibility of the 
ESF, as well as the role of the ESF Committee and thematic evaluations 2000-2006 
about restructuring management and administrative capacity building. The Technical 
Working  Group  was  informed  about  the  state  of  play  of  the  adoptions  of  the 
Operational  Programmes  2007-2013.  It discussed  amongst  others  audit  and  control 
issues, evaluation issues, the "n+2" rule and simplification aspects, including the flat 
rate rule regarding declaration of indirect costs and public tendering.  

6.3. 

Committee on Agricultural Structures and Rural Development (STAR) 

The  STAR  Committee  gave  a  favourable  opinion  on  the  amendment  of  one  rural 
development programme (the SAPARD programme for CROATIA) under Article 4 
of Council Regulation (EC) N°1268/1999. 

6.4. 

Committee on Structures for Fisheries and Aquaculture (CSFA) 

In 2007, the Committee was consulted on a number of issues: the Draft Commission 
Regulation  amending  Commission  Regulation  (EEC)  No  3440/84  as  regards 
conditions  for  certain  trawls  for  vessels  operating  pump  aboard  systems;  the  draft 
Commission  Decision  on  a  Community  financial  contribution  towards  Member 
States'  fisheries  control,  inspection  and  surveillance  programmes  for  2007  (second 
instalment);  the  draft  Commission  regulation  laying  down  detailed  rules  for  the 
implementation of Council Regulation (EC) No 1966/2006 of 21 December 2006 on 
electronic  recording  and  reporting  of  fishing  activities  and  on  means  of  remote 
sensing;  the  draft  Commission  regulation  on  landing  and  weighing  procedures  for 
herring,  mackerel  and  horse  mackerel;  the  Commission  Decision  designating  the 
Community Fisheries Control Agency. 

EN 

12 

   EN