Proposal for a Council Regulation amending Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Date: 2009-01-28
Institutions: European Commission
Subjects: EU financing arrangements, administrative check, aid to agriculture, management audit, rural development

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.1.2009 
COM(2009) 38 final 

2009/0011 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1698/2005 on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) 

Proposal for a 

COUNCIL DECISION 

amending Decision 2006/493/EC laying down the amount of Community support for 
rural development for the period from 1 January 2007 to 31 December 2013, its annual 
breakdown and the minimum amount to be concentrated in regions eligible under the 
Convergence Objective 

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EXPLANATORY MEMORANDUM 

The  Council  of  the  European  Union  of  11  and  12  December  2008  agreed  on  a  European 
Economic Recovery Plan (EERP), which envisages the initiation of priority action to enable 
European  economies  to  adjust  more  rapidly  to  current  challenges,  based  on  an  effort 
equivalent  in  total  to  around  1.5%  of  European  Union  GDP  (a  figure  amounting  to  around 
EUR 200  billion).  Out  of  this  amount,  EUR  1.5  billion  should  be  made  available  to  all 
Member States via the European Agricultural Fund for Rural Development (EAFRD) with a 
view to developing broadband internet in rural areas and to strengthen the new challenges as 
defined  in  the  context  of  the  assessment  of  the  2003  midterm  reform  of  the  Common 
Agricultural  Policy  –  the  "Health  Check"  –  which  was  completed  in  November  2008.  One 
third of this amount (EUR 0.5 billion) should be spent on new challenges related operations 
and two thirds (EUR 1 billion) on developing broadband internet infrastructure in rural areas. 
The  motivation  for  this  allocation  of  additional  funds  to  the  two  priority  areas  of  the  EU's 
rural development policy is the following: 

Rural  communities  can  be  amongst  the  most  vulnerable  to  economic  downturn.  In  difficult 
times, there is a greater risk of exclusion – and when the economy starts to return to growth, 
the benefits can flow more slowly. 

One  of  the  most  important  tools  in  the  modern  economy  is  broadband  internet.  In  today's 
Europe, it unlocks the paths to finding new jobs, learning new skills, identifying new markets 
and  cutting  costs.  It  is  as  essential  to  schools,  libraries  and  government  offices  as  to 
businesses. It has become an essential tool to making the modern economy work. But there 
are  gaps  –  communities  where  the  market  has  not  delivered  coverage,  due  to  dispersed 
populations and high costs. That is why the European Economic Recovery Plan set out a goal 
of  developing  broadband  networks  to  achieve  a  full  100%  high-speed  internet  coverage  by 
2010.  It  also  underlined  the  need  to  upgrade  the  performance  of  many  existing  networks, 
alongside efforts to promote competitive investments in fibre networks and free up spectrum 
for wireless broadband. 

The  support  for  broadband  infrastructure  is  also  favoured  by  Member  States'  possibility  to 
choose specific aid intensity rates for public infrastructure investments in rural areas, with a 
maximum  of  up  to  100%.  This  creates  already  a  good  basis  for  absorption  of  the  funds  for 
broadband from the Recovery Plan. For other non-public infrastructure operations the rates as 
defined under the general state aid rules apply.  

Furthermore, Member States have to ensure the utmost acceleration of the implementation of 
additional  funds  from  the  Recovery  Plan  already  from  2009  in  order  to  allow  for  a  most 
timely response to the economic crisis. 

The EU already uses rural development to promote growth in rural economies and the overall 
health of rural society. The "Health Check" of the CAP identified a series of new challenges 
of  particular  relevance  to  European  agriculture.  Tackling  these  challenges  more  quickly 
would allow agricultural communities to bring forward work to address these challenges and 
better  placed  to  be  ready  for  improved  economic  circumstances.  This  would  follow  the 
emphasis  given  by  the  Recovery  Plan  to  accelerating  the  implementation  of  EU  structural 
actions, to bring investment on stream early in difficult times. 

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2009/0011 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1698/2005 on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 36 and 37 thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

After consulting the European Economic and Social Committee3, 

After consulting the Committee of the Regions4, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Council,  at  its  meeting  on  11  and  12  December  2008,  approved  a 
European Economic Recovery Plan (EERP), which envisages the initiation of priority 
action  to  enable  Member  States'  economies  to  adjust  more  rapidly  to  current 
challenges.  It  is  based  on  an  effort  equivalent  in  total  to  around  1.5%  of  European 
Union GDP, a figure amounting to around EUR 200 billion.  

Of the above amount, EUR 1.5 billion should be made available to all Member States 
via the European Agricultural Fund for Rural Development (EAFRD) with a view to 
developing  broadband  internet  in  rural  areas  and  to  strengthening  the  operations 
related  to  the  priorities  laid  down  in  Article 16a(1)(a)  to (f)  of  Council  Regulation 
(EC) No 1698/20055 (hereinafter "new challenges"). 

Several amendments of Regulation (EC) No 1698/2005 are necessary to establish the 
legal  framework  to  allow  Member  States  to  use  the  above  mentioned  amount,  in 
continuity  with  the  amendments  introduced  by  Council  Regulation  (EC)  No [X]  of 
[…] amending Regulation EC) No 1698/2005 on support for rural development by the 
European  Agricultural  Fund  for  Rural  Development  (EAFRD)6  [Health  Check  Rural 

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2 
3 
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OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ L 277, 21.10.2005, p. 1. 
OJ L …, …, p. …. 

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Development  Regulation]  which  enables  using  amounts  resulting  from  increased 
compulsory  modulation  and  unused  funds  generated  under  Article  136  of  Council 
Regulation (EC) No [X] of […] establishing common rules for direct support schemes 
under  the  common  agricultural  policy  and  establishing  certain  support  schemes  for 
farmers7 on operations related to the "new challenges". 

In  order  to  ensure  that  the  breakdown  of  the  additional  Community  contribution  in 
each Member State is used consistently with the objectives of the two policy packages 
(new  challenges  and  broadband  internet),  Member  States  should  specify  in  their 
national  strategy  plans  the  indicative  amount,  resulting  from  the  compulsory 
modulation together with the unused funds generated under Article 136 of Regulation 
(EC)  No  …8  and  the  increase  of  the  global  commitments  as  laid  down  by  Council 
Decision  2006/493/EC9  as  amended  by  Decision  ……10.  These  amounts  will  be 
devoted to broadband internet infrastructure in rural areas on the one hand and to the 
"new challenges" on the other. 

Because  of  the  additional  resources  to  be  made  available  as  Community  support  for 
rural development under the EERP, it is  necessary for Member  States to  revise  their 
National  Strategy  Plan  (NSP).  Since  all  Member  States  will  receive  such  additional 
funds from 2009, they should all be required to revise their NSP by 30 June 2009.  

The Conclusions of the European Council of 12 December 2008 record the European 
Council's  supports  under  the  EERP,  in  particular,  developing  broadband  internet, 
including  in  areas  that  are  poorly  served.  Because  rural  areas  often  suffer  from 
insufficient internet access, support for broadband infrastructures in rural areas should 
be  strengthened  under  the  support  of  EAFRD.  Given  the  importance  of  this  priority, 
Member  States  should  provide  in  their  programmes  for  operations  related  to  this 
priority  by  the  end  of  2009.  A  list  of  types  of  operations  related  to  broadband 
infrastructures  should  be  established  in  order  to  allow  Member  States  to  identify  the 
relevant operations in the context of the legal framework for rural development.  

As the additional funds from the EERP will be made available to all Member States in 
2009,  all  Member  States  should  provide  in  their  rural  development  programmes  for 
types of operations related to the new challenges already in that year.  

The  obligation  to  submit  revised  rural  development  programmes  by  30 June 2009 
should, therefore, be extended to all Member States. 

Given the additional, specific and binding use of financial resources resulting from the 
application of compulsory modulation under Regulation (EC) No .../..., of the amounts 
generated  under  Article 136  of  the  same  Regulation  and  of  the  amounts  to  be  made 
available  as  Community  support  for  rural  development  under  the  EERP,  the 
established balance between objectives of support for rural development should not be 
affected by those financial resources. 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

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OJ L …, …, p. …. 
OJ L …, …, p. …. 
OJ L 195, 15.7.2006, p. 22. 
OJ L …, …, p. …. 

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(10)  Rural areas often lack broadband infrastructure both small and larger scale. The latter 
may  be  crucial  for  serving  less  accessible  rural  areas.  In  order  to  ensure  the  most 
effective  use  of  available  resources  and  to  allow  a  substantive  development  of  the 
broadband  internet  in  rural  areas,  the  pertinent  operations  should  be  considered 
eligible  without  limitation  in  the  size  of  the  related  infrastructure.  Therefore,  the 
existing  limitation  in  size  for  infrastructure  in  basic  services  for  economy  and  rural 
population should not apply to the operations related to broadband infrastructures. 

(11) 

In order to realise the specific policy objectives of strengthening the operations related 
to the new challenges and developing broadband internet infrastructures it is necessary 
to provide that the financial resources to be made available as Community support for 
rural development under the EERP have to be used for certain specific purposes and to 
combine this obligation with the existing obligation for the amounts resulting from the 
compulsory  modulation  and  the  amounts  generated  under  Article  136  of  Regulation 
(EC) No …. 

(12)  Given the importance of the broadband operations at Community level, the increase of 
EAFRD  contribution  foreseen  in  Council  Regulation  (EC)  No [X]  of  […]  amending 
Regulation (EC) No 1698/2005 [Health Check Rural Development Regulation] should 
also apply to such types of operations in order to facilitate their implementation. 

(13) 

In order to help Member States which are particularly affected by the economic crisis 
and  which  have  difficulties  in  providing  national  financial  resources  to  use  the 
available EAFRD funds, higher co-financing rates should be exceptionally allowed in 
2009.  

(14)  As  the  measures  provided  for  in  the  proposed  amendments  should  cover  2009,  this 

Regulation should apply from 1 January 2009. 

(15)  Regulation (EC) No 1698/2005 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1698/2005 is amended as follows: 

(1) 

In Article 11(3), point (d) is replaced by the following: 

"(d)  a list of the rural development programmes implementing the national strategy 
plan,  an  indicative  EAFRD  allocation  for  each  programme,  including  the 
amounts provided for in Article 12(2) of Regulation (EC) No 1290/2005, and a 
separate indication of the total of the amounts referred to in Article 69(5a) of 
this Regulation specifying which is the amount to be spent on operations of the 
type referred to in Article 16a(1)(g) of this Regulation;" 

(2) 

In Article 12a, paragraph 1 is replaced by the following:  

"1.  Member  States  shall  revise,  in  accordance  with  the  procedure  referred  to  in 
Article 12(1),  their  national  strategy  plans  following  the  review  of  the 
Community strategic guidelines as referred to in Article 10." 

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(3) 

Article 16a is replaced by the following: 

"Article 16a 
Specific operations related to certain priorities 

1. 

By 31 December 2009, Member States shall provide in their rural development 
programmes,  in  accordance  with  their  specific  needs,  for  types  of  operations 
having  the  following  priorities  as  described  in  the  Community  strategic 
guidelines and specified further in the national strategy plans: 

(a) 

climate change, 

(b) 

renewable energies, 

(c)  water management, 

(d)  biodiversity, 

(e)  measures accompanying restructuring of the dairy sector, 

(f) 

innovation linked to the priorities mentioned in points (a) to (d), 

(g)  broadband internet infrastructure in rural areas. 

The  types  of  operations  to  be  linked  to  the  priorities  referred  to  in  points (a) 
to (f) of the first subparagraph shall be aimed at achieving effects such as the 
potential  effects  specified  in  Annex II.  An  indicative  list  of  such  types  of 
operations and their potential effects is set out in Annex II. A list of types of 
operations  linked  to  the  priority  referred  to  in  point (g)  of  the  first 
subparagraph is set out in Annex III.  

The revised rural development programmes related to the operations referred to 
in this paragraph shall be submitted to the Commission no later than 30 June 
2009. 

2. 

From  1  January  2009,  for  types  of  operations  referred  to  in  paragraph 1(a) 
to (f) of this Article, the aid intensity rates fixed in Annex I may be increased 
by 10 percentage points. 

3. 

By 31 December 2009, each rural development programme shall also include: 

(a) 

(b) 

the  list  of  types  of  operations  and  the  information  referred  to  in 
Article 16(c)  on  the  specific  types  of  operations  referred  to  in 
paragraph 1 of this Article; 

a  table  setting out, for the  period from 1 January 2009 to 31 December 
2013,  the  total  Community  contribution  for  types  of  operations  referred 
to in points (a) to (f) of paragraph 1 and the Community contribution for 
types of operations referred to in point (g) of paragraph 1." 

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(4) 

In Article 17, paragraph 3 is replaced by the following: 

"3.  The  amounts  equal  to  those  resulting  from  the  application  of  the  compulsory 
modulation  under  Article 69(5a)  together  with,  as  from  2011,  the  amounts 
generated under Article 136 of Regulation (EC) No … and the amount referred 
to  in  Article 69(2a)  of  this  Regulation  shall  not  be  taken  into  account  in  the 
EAFRD  total  contribution  from  which  the  minimum  Community  financial 
contribution per axis is calculated as provided for in paragraphs 1 and 2 of this 
Article." 

(5) 

In Article 56 the following sentence is added:  

"The limitation in size for infrastructure shall not apply to the operations referred to 
in Article 16a(1)(g)." 

(6) 

Article 69 is amended as follows: 

(a) 

a new paragraph 2a is inserted: 

"2a.  The part of the amount referred to in paragraph 1 of this Article resulting from 
the  increase  of  the  global  commitments  as  laid  down  by  Council  Decision 
2006/493/EC  as  amended  by  Decision  ……11  shall  be  available  as  from 
1 January 2009. It shall be devoted to types of operations related to  priorities 
laid down in Article 16a(1) and it shall be spent as follows: 

(a) 

(b) 

one  third  (EUR  0.5  billion)  on  types  of  operations  related  to  priorities 
laid down in Article 16a(1)(a) to (f); 

two thirds (EUR 1 billion) on types of operations related to priority laid 
down in Article 16a(1)(g)." 

(b)  paragraphs 5a and 5b are replaced by the following: 

"5a.  An amount equal to the aggregate of the amounts resulting from the application 
of the compulsory modulation under Article [9(4)] and Article [10(4)] together 
with,  as  from  2011,  the  amounts  generated  under  Article  136  of  Regulation 
(EC) No … and one third of the Member States' share of the amount referred to 
in paragraph 2a, as set out in the Commission Decision fixing the breakdown 
by Member State, shall be exclusively spent by Member States from 1 January 
2009 as Community support under the current rural development programmes 
for  operations  of  the  types  referred  to  in  Article 16a(1)(a)  to (f)  of  this 
Regulation. 

Two  thirds  of  the  Member  States'  share  of  the  amount  referred  to  in 
paragraph 2a as set out in  the Commission Decision fixing the  breakdown  by 
Member  State  shall  be  exclusively  spent  by  Member  States  from  1 January 
2009 as Community support under the current rural development programmes 
for operations of the types referred to in Article 16a(1)(g) of this Regulation.  

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For OJ: please insert the number of the decision mentioned in footnote 9. 

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5b. 

If,  at  the  closure  of  the  programme,  the  actual  amount  of  Community 
contribution spent on the operations referred to in Article 16a(1) is lower than 
the  total  of  the  amounts  referred  to  in  paragraph  5a  of  this  Article,  the 
difference  shall  be  reimbursed  by  the  Member  State  to  the  general  budget  of 
the  European  Communities  up  to  the  amount  by  which  the  total  allocations 
available for operations other than those referred to in Article 16a(1) have been 
exceeded.  

In  addition,  if,  at  the  closure  of  the  programme,  the  actual  amount  of 
Community contribution spent on the operations referred to in Article 16a(1)(a) 
to (f)  is  lower  than  the  amount  referred  to  in  paragraph 5a  of  this  Article  for 
those  types  of  operations,  the  difference  shall  be  reimbursed  by  the  Member 
State to the general budget of the European Communities up to the amount by 
which  the  allocations  available  for  operations  referred  to  in  Article 16a(1)(g) 
have been exceeded. However, if the actual amount of Community contribution 
spent on the operations other than those  referred  to  in  Article 16a(1)  is  lower 
than  the  allocations  available  for  those  types  of  operations,  the  amount  to  be 
reimbursed shall be reduced of that difference. 

spent  on 

the  operations 

In  parallel,  if  at  the  closure  of  the  programme,  the  actual  amount  of 
Community  contribution 
in 
Article 16a(1)(g)  is  lower  than  the  amount  referred  to  in  paragraph 5a  of  this 
Article for those types of operations, the difference shall be reimbursed by the 
Member  State  to  the  general  budget  of  the  European  Communities  up  to  the 
amount  by  which  the  allocations  available  for  operations  referred  to  in 
Article 16a(1)(a) to (f) have been exceeded. However, if the actual amount of 
Community contribution spent on the operations other than those referred to in 
Article 16a(1)  is  lower  than  the  allocations  available  for  those  types  of 
operations, the amount to be reimbursed shall be reduced of that difference." 

referred 

to 

(7) 

In Article 70(4) the second sub-paragraph is replaced by the following: 

"Notwithstanding the ceilings set  out in paragraph 3, the EAFRD  contribution may 
be increased to 90% for convergence and to 75% for non-convergence regions for the 
operations  of  the  types  referred  to  in  Article 16a(1)  of  this  Regulation,  up  to  the 
amount  resulting  from  the  application  of  the  compulsory  modulation  under 
Article 9(4)  and  Article 10(3)  of  Regulation (EC)  No …,  the  amount  referred  to  in 
Article 69(2a)  of  this  Regulation  and,  as  from  2011,  the  amounts  generated  under 
Article 136 of Regulation (EC) No …."; 

(8) 

In Article 70 the following paragraph 4b is inserted: 

"4b.  By  way  of  derogation  from  the  ceilings  set  out  in  paragraphs  3  and  4,  the 
EAFRD  contribution  rate  may  be  increased  by  a  maximum  of  10  additional 
percentage points for expenditure to be paid by Member States within the year 
2009. The ceilings set out in paragraphs 3 and 4 shall, however, be respected 
for the total public expenditure made during the programming period." 

(9) 

In Annex II the title is replaced by the following: 

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"Indicative  list  with  types  of  operations  and  potential  effects  related  to  priorities 
referred to in Article 16a(1)(a) to (f)." 

(10) 

A  new  Annex  III,  the  text  of  which  is  set  out  in  the  Annex  to  this  Regulation,  is 
added. 

Article 2 

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

It shall apply from 1 January 2009. 

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 III 

ANNEX 

List with types of operations related to the priority under Article 16a(1)(g) 

Priority: Broadband infrastructure in rural areas 

Types of operations 

Articles and measures 

Creation  of  new  broadband 
including  backhaul 
facilities 
terrestrial 
combination of technologies) 

wireless, 

infrastructure 
fixed, 
(e.g. 
or 

satellite-based 

Upgrade of existing broadband infrastructure  

Laying  down  passive  broadband  infrastructure 
(e.g.: civil engineering works such as ducts, and 
other  network  elements  such  as  dark  fibre,  etc.) 
infrastructures 
also 
(energy,  transport,  water,  sewerage  networks 
etc.). 

in  synergy  with  other 

Article  56:  basic  services  for 
the 
rural 
population  

economy 

and 

Article  56:  basic  services  for 
the 
rural 
population  

economy 

and 

Article  56:  basic  services  for 
the 
rural 
population  

economy 

and 

" 

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1. 

2. 

3. 
4. 

5. 

5.0 

5.1 

FINANCIAL STATEMENT 

BUDGET HEADING: 
05 04 05 01  

APPROPRIATIONS 2009: 
CA: EUR 13 623 504 584 
PA: EUR 9 135 331 205 

TITLE: Council Regulation amending Regulation (EC) No 1698/2005 on support for rural development by the 
European Agricultural Fund for Rural Development (EAFRD) 
LEGAL BASIS: Articles 36 and 37 of the Treaty 
AIMS: to amend Regulation 1698/2005 to allow MS to use the additional support of EUR 1.5 billion to rural 
development programmes within the framework of the European Economic Recovery Plan (EERP) agreed by 
the  European  Council  in  December  2008.  The  modification  allows  also,  exceptionally  in  2009,  higher 
co-financing rates to help MS with difficulties in providing national financial resources. 
FINANCIAL IMPLICATIONS (1)  
CURRENT 
FINANCIAL 
YEAR 2009 
(EUR million) 
CA: +1 500 
PA: – 

FOLLOWING 
FINANCIAL 
YEAR 2010 
(EUR million) 
CA: –  
PA: +750 

(EUR million) 
– 

12 MONTH 
PERIOD 

EXPENDITURE 
– CHARGED TO THE EC BUDGET 
(current prices) 
– NATIONAL AUTHORITIES 
– OTHER 
REVENUE 
– OWN RESOURCES OF THE EC  
(LEVIES/CUSTOMS DUTIES) 
– NATIONAL 

5.0.1  ESTIMATED EXPENDITURE (current prices) 

CA 
PA 

5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION:– 
6.0 

– 

– 

– 

2012 

2013 

2011 

– 
+ 750 
– 

– 
– 
– 

– 
– 
– 

YES NO 

YES NO 
YES NO 
YES NO 
(2) 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? 
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE 
CURRENT BUDGET? 

6.1 

OTHER 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
6.4 
OBSERVATIONS: 
(1)  The  proposed  modification  will  have  its  impact  entirely  on  financial  year  2009  as  regards  commitment 
appropriations.  For  payment  appropriations  the  impact  of  the  decision  will  be  spread  over  financial  years  2010  and 
2011, with a payments level estimated at 750 million each year. In accordance with Article 71(1) of R 1698/2005 all 
expenditure  incurred  by  MS,  from  the  date  of  the  Commission's  receipt  (30.6.09  at  the  latest)  of  the  request  for 
modification of the programme, will be eligible for reimbursement. However, the reimbursement by the Commission 
can only take place once the amended programmes are approved, which is likely to be after 15.10.09, which means 
declaration  to  the  Commission  in  January  2010  and  reimbursement  in  2010.  The  annex  to  the  decision  reflects  the 
amounts made available for rural development before modulation and other transfers from market-related expenditure 
and direct payments of the CAP. 
(2) The additional financing of commitments in 2009 is possible as the necessary amount is available under the margin 
of heading 2 for 2009. An Amending Budget will be put forward for this amount. 
In relation to the exceptional higher co-financing rates for 2009, the financial impact is for payments made by Member 
States in 2009 (Community payments budgets 2009 and 2010). The impact can be preliminary estimated at no more 
than 10% of the payment appropriations available in the budget for 2009. Nevertheless, no further financial resources 
for 2009 will be requested at this stage in view of the uncertainties linked to the timing of receipt of payment claims. 
The  higher  co-financing  rates  will  hence  be  funded  from  within  the  existing  payments  budget.  In  the  light  of  the 
progress in the  submission of  payment claims by Member States, the  Commission will review in 2009 the need for 
additional payment appropriations and, if necessary, propose the relevant actions to the Budget Authority. 
It  must  be  noted  that  the  financial  implication  figures  in  this  financial  statement  are  also  reflected  in  the  statement 
corresponding to the amendment of Council Decision 2006/493/CE. 

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Proposal for a 

COUNCIL DECISION 

amending Decision 2006/493/EC laying down the amount of Community support for 
rural development for the period from 1 January 2007 to 31 December 2013, its annual 
breakdown and the minimum amount to be concentrated in regions eligible under the 
Convergence Objective 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to Council Regulation (EC) No 1698/2005 of 20 September 2005 on support 
for rural development by the European Agricultural Fund for Rural Development (EAFRD)12, 
and in particular Article 69(1) thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

Council  Decision  2006/493/EC13  lays  down  the  amount  of  Community  support  for 
rural development for the period from 1 January 2007 to 31 December 2013, its annual 
breakdown and the minimum amount to be concentrated in regions eligible under the 
Convergence Objective, 

The  European  Council,  at  its  meeting  on  11  and  12  December  2008,  approved  a 
European Economic Recovery Plan (EERP), which envisages the initiation of priority 
action  to  enable  the  Member  States'  economies  to  adjust  more  rapidly  to  current 
challenges. 

It is based on an effort equivalent in total to around 1.5% of European Union GDP, a 
figure  of  around  EUR 200  billion.  Of  that  amount,  EUR  1.5  billion  should  be  made 
available  to  all  Member  States  via  the  European  Agricultural  Fund  for  Rural 
Development  (EAFRD)  with  a  view  to  developing  broadband  internet  in  rural  areas 
and 
in 
Article 16a(1)(a)  to (f)  of  Regulation  (EC)  No 1698/2005  ("new  challenges").  The 
amount  made  available  through  the  EAFRD  should  be  split,  with  one  third  of  this 
amount  (EUR  0.5  billion)  being  spent  on  new  challenges  and  two  thirds  (EUR  1 
billion) being spent on developing broadband internet infrastructure in rural areas. 

the  operations  related 

to  strengthening 

the  priorities 

laid  down 

to 

(4) 

Decision 2006/493/EC should therefore be amended accordingly, 

12 
13 

OJ L 277, 21.10.2005, p. 1. 
OJ L 195, 15.7.2006, p. 22. 

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HAS DECIDED AS FOLLOWS: 

Article 1 

The Annex to Decision 2006/493/EC is replaced by the text in the Annex to this Decision. 

Article 2 

This Decision shall apply as from 1 January 2009. 

Done at Brussels, […] 

For the Council 
The President 

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Total amount of commitment appropriations for 2007–13 (constant 2004 prices), annual breakdown and minimum amount to be concentrated 
in regions eligible under the Convergence Objective (*) 

ANNEX 

2004 prices in EUR (**) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total  

Total amount for EU-25, plus 
Bulgaria and Romania 

9.325.497.783 

10.788.767.263 

11.873.603.971 

10.278.583.653 

9.824.886.713 

9.588.187.168 

9.356.225.581 

71.035.752.132 

Minimum amount for regions eligible under the Convergence Objective 

27.676.975.284 

(*) Before modulation and other transfers from market-related expenditure and direct payments of the common agricultural policy to rural development. 
(**) Amounts are rounded to the nearest euro 

Total amount of commitment appropriations for 2007–13 (current prices), annual breakdown and minimum amount to be concentrated in 
regions eligible under the Convergence Objective (*) 

Current prices in EUR (**) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total  

Total amount for EU-25, plus 
Bulgaria and Romania 

9 896 292 851 

11 678 108 653 

13 109 418 209 

11 575 354 634 

11 285 706 554 

11 234 089 442 

11 181 555 662 

79 960 526 005 

Minimum amount for regions eligible under the Convergence Objective 

31 232 644 963 

(*) (*) Before modulation and other transfers from market-related expenditure and direct payments of the common agricultural policy to rural development. 
(**) Amounts are rounded to the nearest euro 

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1. 

2. 

3. 
4. 

5. 

5.0 

5.1 

FINANCIAL STATEMENT 

BUDGET HEADING: 
05 04 05 01 

APPROPRIATIONS 2009: 
CA: EUR 13 623 504 584 
PA: EUR 9 135 331 205 

TITLE: 
Council  Decision  amending Decision 2006/493/EC  laying down  the  amount  of  Community  support  for 
rural development for the period from 1 January 2007 to 31 December 2013, its annual breakdown and 
the minimum amount to be concentrated in regions eligible under the Convergence Objective 
LEGAL BASIS: Council Regulation (EC) No 1698/2005 
AIMS: to adapt Decision 2006/493/CE so as to take into account the additional support of EUR 1.5 billion to 
rural  development  programmes  within  the  framework  of  the  European  Economic  Recovery  Plan  (EERP) 
agreed by the European Council in December 2008. 
FINANCIAL IMPLICATIONS (1)  

12 MONTH 
PERIOD 

(EUR million) 
– 

CURRENT 
FINANCIAL 
YEAR 2009 
(EUR million) 
CA: +1 500 
PA: – 

FOLLOWING 
FINANCIAL 
YEAR 2010 
(EUR million) 
CA: –  
PA: +750 

EXPENDITURE 
– CHARGED TO THE EC BUDGET 
(current prices) 
– NATIONAL AUTHORITIES 
– OTHER 
REVENUE 
– OWN RESOURCES OF THE EC  
(LEVIES/CUSTOMS DUTIES) 
– NATIONAL 

5.0.1  ESTIMATED EXPENDITURE (current prices) 

CA 
PA 

5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: – 
6.0 

– 

– 

– 

2012 

2013 

2011 

– 
+ 750 
– 

– 
– 
– 

– 
– 
– 

YES NO 

YES NO 
YES NO 
YES NO 
(2) 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? 
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE 
CURRENT BUDGET? 

6.1 

OTHER 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
6.4 
OBSERVATIONS: 
(1) This decision approving an additional support amount for rural development programmes (+ €1.5 billion) will have 
its  impact  entirely  on  financial  year  2009  as  regards  commitment  appropriations.  For  payment  appropriations  the 
impact  of  the  decision  will  be  spread  over  financial  years  2010  and  2011,  with  a  payments  level  estimated  at 
750 million each year. In accordance with Article 71(1) of R 1698/2005 all expenditure incurred by MS, from the date 
of the Commission's receipt (30.6.09 at the latest) of the request for modification of the programme, will be eligible for 
reimbursement. However, the reimbursement by the Commission can only take place once the amended programmes 
are approved, which is likely to be after 15.10.09, which means declaration to the Commission in January 2010 and 
reimbursement  in  2010.The  annex  to  the  decision  reflects  the  amounts  made  available  for  rural  development  before 
modulation and other transfers from market-related expenditure and direct payments of the CAP. 
(2) The additional financing of commitments in 2009 is possible as the necessary amount is available under the margin 
of heading 2 for 2009. An Amending Budget will be put forward for this amount.  
It  must  be  noted  that  the  financial  implication  figures  in  this  financial  statement  are  also  reflected  in  the  statement 
corresponding to the modification of Regulation (EC) No 1698/2005.  

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