Amended proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulations (EC) No 1290/2005 and (EC) No 1234/2007, as regards distribution of food products to the most deprived persons in the Union
Date: 2010-09-17
Institutions: European Commission
Subjects: EU financing arrangements, agricultural product, aid to disadvantaged groups, common agricultural policy, intervention stock

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EUROPEAN COMMISSION 

Brussels, 17.9.2010 
COM(2010) 486 final 

2008/0183 (COD) 

Amended proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

amending Council Regulations (EC) No 1290/2005 and (EC) No 1234/2007, as regards 
distribution of food products to the most deprived persons in the Union 

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EXPLANATORY MEMORANDUM 

1. 

HISTORY OF THE PROPOSAL 

Commission's adoption of the proposal: 17 September 2008  

Transmission  of  the  Proposal  to  the  Council  and  the  European  Parliament  – 
COM(2008) 563 final: 15 October 2008 (2008/0183(CNS)) 

Opinion  of  the  European  Parliament  –  first  reading:  The  opinion  adopted  on  26 
March 2009 was confirmed by the resolution of 5 May 2010 on the consequences of 
the entry into force of the Treaty of Lisbon for ongoing inter-institutional decision-
making procedures (COM(2009)0665)- "omnibus". 

Opinion of the European Economic and Social Committee: Not yet available 

In its session of 26 March 2009 in the European Parliament approved its legislative 
resolution with 425 votes in favour, 71 against and 62 abstentions the report of Mr. 
Siekierski containing 20 amendments.  

2. 

CONTEXT OF THE PROPOSAL 

Council Regulation (EEC) No 3730/87 laid down the general rules for the supply of 
food from intervention stocks to designated organisations for distribution to the most 
deprived  in  the  Community.  That  Regulation  was  subsequently  repealed  and 
integrated  into  the  Regulation  establishing  a  common  organisation  of  agricultural 
markets  and  on  specific  provisions  for  certain  agricultural  products  (Single  CMO 
Regulation). 

For more than two decades intervention stocks made available through this scheme 
have proven to be a reliable supply of food for the most deprived. The need for food 
distribution has grown following the successive enlargements that have substantially 
increased  the  Union's  needy  population.  In  2008  more  than  13  million  people 
benefited from this scheme.  

The objectives of the Common Agriculture Policy (CAP) as defined in Article 39(1) 
of  the  Treaty  include  stabilising  the  markets  and  ensuring  that  supplies  reach 
consumers  at  reasonable  prices.  Over  the  years  the  food  distribution  plans 
implemented  under  this  scheme  have  helped  to  achieve  both  objectives  and,  by 
reducing the food insecurity of the most deprived persons in the Union, have proven 
to be an essential tool, contributing to guarantee the broad availability of food within 
the Union while reducing the intervention stocks. 

In recent years, the CAP has been substantially reframed, with a switch of emphasis 
from  the  primary  objective  of  increasing  productivity  to  enhancing  the  long-term 
sustainability of agriculture. In this context, intervention as a regulatory tool has been 
removed for some products such as olive oil, sugar and rye and, for the rest, is being 
returned  to  its  original  role  as  a  safety  net.  This  has  been  confirmed  by  decisions 
taken  under  the  2009  Health  Check  reform  of  the  CAP.  As  a  result,  the  scheme's 

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reliance  on  market  purchases  for  the  provision  of  food  has  increased  significantly 
over the years. 

In  its  declaration  of  4  April  2006  on  supplying  approved  charities  working  to 
implement  the  European  food  aid  programme  for  the  most  deprived,  the  European 
Parliament  expressed  its  concern  about  the  future  of  the  European  food  aid 
programme for the most deprived and, in acknowledgement of the need to meet their 
food  requirements,  called  on  the  Commission  and  the  Council  to  put  the  European 
food aid programme on a permanent footing.  

On 22 May 2008, the European Parliament adopted a resolution on rising food prices 
in the EU and the developing countries, in which it stresses the fundamental nature of 
the right to food and the need to improve access for all people at all times to enough 
food for an active, healthy life. 

The  Commission  has  already  recognised  the  importance  of  this  scheme  in  its 
Communication on "Tackling the challenge of rising food prices – Direction for EU 
Action" of 20 May 2008. During his speech to the Parliament on 18 June 2008, the 
President  of  the  European  Commission  indicated  that  the  Commission  foresees  an 
increase in budget for this initiative by two thirds. 

An  internet-based  public  consultation  on  the  Union  food  distribution  programme 
attracted  a  large  response,  with  replies  expressing  overwhelming  support  for  the 
continuation of the Union food distribution programme. Suggestions from charitable 
organisations involved in the implementation of the scheme as well as from national 
managing authorities have been collected through regular meetings.  

The proposal was accompanied by an Impact Assessment in form of a Commission 
staff working document (SEC(2008)2436/2).  

3. 

ELEMENTS OF THE PROPOSAL 

In this context, in 2008 the Commission proposed a revision of the food distribution 
programme (COM (2008) 563 final) based on the following elements: 

- Two sources of supply. Food would be sourced either from intervention stocks or 
from  the  market.  The  latter  would  no  longer  be  limited  to  situations  of  temporary 
unavailability of intervention stocks. However, priority would be given to the use of 
suitable intervention stocks where these are available. 

-  Wider  variety  of  foods  to  be  distributed  and  clearer  priorities.  In  order  to 
improve the nutritional balance of the food provided through the scheme, the choice 
of  distributed  foods  would  no  longer  be  limited  to  those  for  which  intervention 
applies. Food products would be chosen by Member State authorities in the frame of 
national  food  distribution  programmes  setting  out  objectives and  priorities  for  food 
distribution to the most deprived and that would include nutritional concerns.  

-  Long-term  perspective.  Food  distribution  activities  require  long-term  planning 
and careful preparation by the national authorities and charities. In order to enhance 
its  efficiency,  the  Union  food  distribution  scheme  would  be  established  for  three 
years.  The  amounts  of  aid  for  the  second  and  third  years  would  only  be  indicative 

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and  would  have  to  be  subsequently  confirmed.  Furthermore,  a  ceiling  for  the 
financial contribution of the Union is proposed.  

-  Co-financing.  The  introduction  of  co-financing  would  underpin  the  cohesive 
dimension  of  the  scheme,  ensure  proper  planning  and  reinforce  synergies.  To  help 
make  for  a  smooth  introduction  and  a  continued  high  take-up  of  the  Community 
funding  made  available,  Community  co-financing  rates  would  be  75%  and  85%  in 
Cohesion Member States for the 2010/12 plan. Subsequently, as of the 2013/15 plan, 
the Community co-financing rates would be, respectively 50% and 75%. 

-  Reinforcing  monitoring  and  reporting.  Reporting  obligations  at  various  levels 
would  be  strengthened  and  include  a  report  from  the  Commission  to  the  European 
Parliament and the Council.  

4. 

OPINION  OF  THE  COMMISSION  ON  THE  AMENDMENTS  BY  THE  EUROPEAN 
PARLIAMENT 

The  Commission  has  considered  it  appropriate  to  accept  a  number  of  wording 
Amendments (1, 2, 4 and 9) approved by the European Parliament since they would 
contribute  to  complete  the  description  of  multitude  of  aspects  embraced  by  this 
scheme  although,  in  a  certain  number  of  cases,  the  Commission  has  opted  for  a 
different formulation. 

Amendments  8,  11,  13  and  14  contain  most  substantial  changes  accepted  by  the 
Commission  in  this  amended proposal although the wording eventually retained by 
the  Commission  may  differ  from  the  one  proposed  by  the  European  Parliament. 
Amendment  8  introduces  the  notion  of  the  Union  origin  of  the  foods  that  in  the 
present amended proposal is retained as a priority that may be decided by Member 
States when choosing the types of foods to be distributed. Amendment 11 provides 
for  the  obligation  for  distribution  points  to  clearly  display  the  participation  of  the 
Union  in  the  plan,  which  has  been  retained  by  the  Commission  in  this  amended 
proposal  with  detailed  rules  to  be  subsequently  adopted.  Amendment  13  states  that 
purchase of food products should be made on the basis of competitive procedures as 
it  is  now  explicitly  indicated  in  the  proposal.  Finally,  Amendment  14  calls  for  the 
reimbursement  of  storage  costs  incurred  by  charitable  organisations,  which  is  now 
incorporated as well.  

On  the  other  hand,  certain  amendments  could  not  be  accepted  because  they  would 
have modified the substance of the Commission proposal in a manner not compatible 
with  the  objectives  presented  above.  The  most  important  rejection  concern  the 
request by the European Parliament to maintain the scheme entirely financed by the 
Union  budget  (Amendments  5,  10,  16,  17,  18,  19).  The  Commission  is  convinced 
that the introduction of co-financing would reinforce the cohesive dimension of the 
scheme while ensuring improved planning and management and therefore maintains 
co-financing in this amended proposal. Nevertheless, following the concerns voiced 
by  the  Parliament  on  this  issue,  the  Commission  has  substantially  reduced  in  this 
amended  proposal  the  rates  of  national  co-financing  down  to  10%  for  Cohesion 
Member  States  and  25%  for  other  Member  States  and,  unlikely  in  the  original 
proposal, these rates would remain stable over time. 

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5. 

ALIGNMENT  TO  THE  TREATY  ON  THE  FUNCTIONING  OF  THE  EUROPEAN  UNION 
(TFEU)  

The  Treaty  on  the  Functioning  the  European  Union  (TFEU)  establishes  a  clear 
distinction between on the one hand the jurisdiction delegated to the Commission in 
order  to  adopt  non  legislative  acts  (delegated  acts),  which  supplement  or  modify 
certain non-essential elements of the legislative act as provided by Article 290, and, 
on  the  other,  jurisdiction  conferred  to  the  Commission  in  order  to  adopt 
implementing acts pursuing to Article 291. In fact, Member States are responsible for 
the  implementation  of  the  legally  binding  acts  of  the  European  Union  but  if  the 
application of the legislative act requires uniform conditions for implementation, it is 
up to the Commission to adopt them by means of implementing acts.  

The  alignment  of  the  scheme  of  food  distribution  for  the  most  deprived  persons  to 
the new rules of the Treaty consists of a qualifying exercise where the implementing 
rules adopted by the Commission to secure the smooth execution of the measure are 
now classified as implementing or delegated acts. 

This  amended  proposal  contains  all  the  essential  elements,  general  principles  and 
programming rules of the scheme that are thus determined by the Legislator. 

In  accordance  with  Article  290  of  the  Treaty  on  the  Functioning  of  the  European 
Union, the Legislator entrusts the Commission to supplement or modify certain non-
essential  elements  which  are  nevertheless  necessary  for  the  proper  operation  of  the 
scheme.  This  amended  proposal  provides  that  the  Commission  adopts  by  means  of 
delegated acts the method for calculating the overall allocation of resources including 
the  distribution  of  intervention  stocks  and  financial  means,  the  definition  of  the 
accounting value of products released from intervention stocks as well as the method 
for  the  reallocations  of  resources  following  possible  revisions  of  the  plan.  The 
Commission should adopt provisions requiring the use of tendering procedures for all 
operations relating to the execution of the plans, provisions on securities to be lodged 
by  applicants  and  rules  on  sanctions  and  reductions  to  be  applied  by  the  Member 
States in case of non respect of time-limits and other shortcomings. 

Member States, in accordance with Article 291 of the Treaty on the Functioning of 
the European Union are responsible for the implementation of legally binding Union 
acts  adopted  by  the  Legislator.  It  seems  however  necessary  to  ensure  a  uniform 
implementation  of  the  scheme  across  participating  the  Member  States  in  order  to 
avoid  any  risk  of  distortion  or  discrimination.  Consequently,  in  this  amended 
proposal  the  Legislator  confers  to  the  Commission  implementing  powers  for 
adopting  detailed  rules  and  procedures,  adopting  and  where  necessary  revise  the 
plans, the definition of the additional elements to be included in the three-year plans, 
the  procedures  and  time  limits  applicable  to  withdrawals,  the  format  of  annual 
implementation reports and national food distribution programmes, the rules for the 
reimbursement  of  costs  including  time  limits  and  financial  ceilings  the  conditions 
pertaining to the invitation to tender and the conditions applicable to food products 
and  their  supply,  the  minimal  requirements  of  control  programmes,  uniform 
conditions  concerning  payment  procedures  including  the  tasks  to  be  fulfilled  by 
national intervention agencies and the detailed rules on the obligation to display the 
participation  of  the  Union  in  this  scheme  both  in  the  packing  and  the  distribution 
points.  

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6. 

BUDGETARY IMPLICATIONS 

The  proposed  rules  are  designated  to  implement  the  new  provisions  for  the  food 
distribution  scheme  for  the  most  deprived  persons  in  the  Union.  The  new  scheme 
will be co-financed by the Union; hence the amendment of Article 3(1) of Regulation 
(EC) No 1290/2005 is necessary.  

The proposal includes an annual financial ceiling of € 500 millions of the Union's co-
finance of the scheme.  

7. 

AMENDED PROPOSAL 

Having  regard  to  Article  293(2)  of  the  Treaty  on  the  functioning  of  the  European 
Union, the amended proposal by the Commission is presented below. 

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2008/0183 (COD) 

Amended proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

amending Council Regulations (EC) No 1290/2005 and (EC) No 1234/2007, as regards 
distribution of food products to the most deprived persons in the Union 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
first subparagraph of Article 42 and Article 43(2) thereof, 

Having regard to the proposal from the European Commission1, 

After transmission of the proposal to the national Parliaments, 

Having regard to the opinion from the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Council Regulation (EEC) No 3730/87 of 10 December 1987 laying down the general 
rules  for  the  supply  of  food  from  intervention  stocks  to  designated  organisations  for 
distribution  to  the  most  deprived  persons  in  the  Community4,  subsequently  repealed 
and  integrated  into  Council  Regulation  (EC)  No  1234/2007  of  22 October  2007 
establishing a common organisation of agricultural markets and on specific provisions 
for  certain  agricultural  products  (Single  CMO  Regulation)5,  has  provided  a  reliable 
scheme for distribution of food products to the most deprived persons of the Union for 
more than two decades and has positively contributed to the cohesion of EU regions 
by reducing economic and social disparities. 

The objectives of the Common Agricultural Policy (CAP) as defined in Article 39(1) 
of  the  Treaty  include  stabilising  the  markets  as  well  as  ensuring  that  supplies  reach 
consumers  at  reasonable  prices.  Over  the  years  the  food  distribution  scheme  has 
successfully underpinned the fulfilment  of both objectives and, by reducing the food 
insecurity of the most deprived persons in the Union, has proven to be an essential tool 
contributing  to guarantee broad  availability of food within the Union  while  reducing 

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OJ C […], […], p. […]. 
XX 
OJ C […], […], p. […]. 
OJ L 352, 15.12.1987, p. 1. 
OJ L 299, 16.11.2007, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

the  intervention  stocks.  The  EU  food  aid  scheme  for  the  most  deprived  should 
continue to guarantee the aims of the CAP and help achieve cohesion objectives.  

The  European  Parliament,  in  its  declaration  of  4  April  2006  on  supplying  approved 
charities  working  to  implement  the  European  food  aid  programme  for  the  most 
deprived6,  noted  that  the  European  food  aid  programme  for  the  most  deprived  had 
proved  its  worth  and  was  vital  for  millions  of  persons.  Moreover,  it  expressed  its 
concern about the future of the European food aid programme for the most deprived 
and  in  acknowledgement  of  the  need  to  meet  their  food  requirements  called  on  the 
Commission and the Council inter alia to place the European food aid programme on a 
permanent footing. 

The  successive  enlargements  of  the  Union  have  increased  the  potential  number  of 
beneficiaries  of  food  aid  schemes.  At  the  same  time  the  increased  volatility  of  food 
prices  have  negatively  affected  the  food  security  of  the  most  deprived  persons  and 
during certain periods, have increased the cost of providing the food aid. As a result, 
the  importance  of  the  scheme  originally  set  up  under  Regulation  (EEC)  No  3730/87 
and currently under Article 27 of Regulation (EC) No 1234/2007 has grown over the 
years. It is therefore essential to continue the scheme at Union level and further adapt 
it to changing market developments. 

The current food distribution scheme relies on the distribution of products from Union 
intervention stocks supplemented, on a temporary basis, by purchases on the market. 
However, successive reforms of the CAP and favourable developments of prices have 
resulted  in  a  progressive  reduction  in  intervention  stocks,  as  well  as  the  range  of 
products available. Consequently, market purchases should also be made a permanent 
source  of  supply  for  the  scheme  to  complement  intervention  stocks,  where  suitable 
intervention stocks are not available.  

A Union scheme cannot constitute the sole response to the growing needs for food aid 
in  the  Union.  National  policies  implemented  by  public  administrations  and  the 
mobilisation of civil society including local initiatives are equally necessary to provide 
food security for the most deprived. A Union scheme with a strong cohesive element 
might,  however,  serve  as  a  model  for  the  distribution  of  food  to  the  most  deprived, 
especially  in  less  developed  regions,  help  create  synergies  and  encourage  public  and 
private  initiatives  aimed  at  increasing  the  food  security  of  persons  in  need. 
Furthermore,  given  the  geographical  dispersion  of  the  reduced  available  intervention 
stocks  in  the  Member  States,  it  can  contribute  to  their  best  use.  The  Union  scheme 
should therefore also be without prejudice to any such national policies.  

In order to ensure sound budgetary management, a fixed ceiling of Union aid should 
be provided for. Moreover, in order to fully benefit from the cohesive dimension of the 
Community scheme and reinforce the synergies thereby created, and in order to ensure 
proper planning, provision should be made for Member States to co-finance the food 
distribution  programme.  Maximum  Union  co-financing  rates  should  be  provided  for 
and the Union financial contribution should be added to the list of  measures  eligible 
for financing by the European Agricultural Guarantee Fund (EAGF) set out in Article 

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OJ C 293 E, 2.12.2006, p. 170. 

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(8) 

(9) 

3(1)  of  Council  Regulation  (EC)  No  1290/2005  of  21 June  2005  on  the  financing  of 
the common agricultural policy7.  

The  rate  of  the  contribution  from  the  EAGF  should  be  set  taking  into  account  the 
situation of Member States eligible for funding from the Cohesion Fund for the period 
2007-2013,  as  listed  in  Annex  I  to  Commission  Decision  2006/596/EC8,  in  order  to 
strengthen the economic and social cohesion of the Union. 

Experience  has  shown  that  certain  improvements  in  the  management  of  the  food 
distribution  scheme  are  necessary,  in  particular  to  provide  Member  States  and 
designated  organisations  with  a  longer  term  perspective  through  multi-annual  plans. 
The Commission should therefore establish three-year-plans for the implementation of 
the  scheme,  based  on  the  Member  States  requests  to  be  communicated  to  the 
Commission  and  other  information  considered  relevant.  Member  States  should  base 
their  requests  of  food  products  on  national  food  distribution  programmes  setting  out 
their  objectives  and  priorities  for  food  distribution  to  the  most  deprived  persons 
including  nutritional  considerations.  In  this  context,  it  would  be  appropriate  that 
Member States may decide to give preference to products of Union origin. Finally, in 
order to secure a proper coverage of costs linked to the implementation of the plan, it 
should be provided that Member States may decide to reimburse, within the resources 
made available through the plan, certain costs incurred by designated organisations in 
relation to administration, transport and storage. 

(10)  An  effective  implementation  of  the  three-year  plans  needs  verification  of  respect  of 
obligations at the appropriate level. For that reason, Member States should undertake 
adequate  administrative  and  physical  checks  and  provide  penalties  in  case  of 
irregularities in order to ensure that the three-year plan is implemented in accordance 
with the applicable rules. 

(11)  Article  27  of  Regulation  (EC)  No  1234/2007,  confers  powers  to  the  Commission  in 

order to implement some of the provisions of that Article. 

(12)  As a consequence of the entry into force of the Lisbon Treaty, the Commission powers 
conferred  for  the  operation  of  the  scheme  provided  for  in  Article  27  of  Regulation 
(EC) No 1234/2007 need therefore to be aligned to Articles 290 and 291 of the Treaty 
on the Functioning of the European Union ("the Treaty"). 

(13)  The  Commission  should  have  the  power  to  adopt  delegated  acts  in  accordance  with 
Article  290  of  the  Treaty  in  order  to  supplement  or  amend  certain  non-essential 
elements of Article 27 of Regulation (EC) No 1234/2007. The elements for which that 
power  may  be  exercised  should  be  defined,  as  well  as  the  conditions  to  which  that 
delegation is to be subject. 

(14) 

In  order  to  guarantee  a  uniform  application  of  Article  27  of  Regulation  (EC)  No 
1234/2007  in  all  Member  States,  the  Commission  should  be  empowered  to  adopt 
implementing acts in accordance with Article 291 of the Treaty. Measures required for 
such  uniform  application  should  be  adopted  by  the  Commission,  by  means  of 

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OJ L 209, 11.8.2005, p. 1.  
OJ L 243, 6.9.2006, p. 47. 

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(15) 

(16) 

(17) 

implementing  acts,  in  accordance  with  the  provisions  of  Regulation  (EU)  No 
XX/XXXX of the European Parliament and the Council on… 

In order to ensure efficiency and transparency in the adoption of three-year plans the 
Commission should adopt the procedures for the adoption and revision of the plans by 
means of implementing acts. For the same reason the adoption and, where necessary, 
the review of the three-year plan should also be done by means of implementing acts.  

In order to ensure that Member States are given a coherent and efficient framework for 
participating  in  and  implementing  the  scheme,  the  Commission  should  adopt 
implementing acts for determining additional elements to be included in the three-year 
plan, rules for the supply of products as well as procedures and time limits applicable 
to withdrawals of intervention products including transfers between Member States.  

In  order  to  ensure  the  comparability  of  the  information  to  be  submitted  by 
participating Member States, the Commission should adopt by means of implementing 
acts  rules  on  the  format  of  national  food  distribution  programmes  and  annual 
implementation reports.  

(18)  Member  States  should  have  the  possibility  to  consider  eligible  under  the  scheme 
certain expenses of the charitable organisations. In order to ensure that this possibility 
is  uniformly  put  into  effect  across  Member  States  the  Commission  should  adopt 
implementing acts determining common detailed rules for the reimbursements of those 
costs including time limits and financial ceilings. 

(19) 

In  order  to  ensure  that  invitations  for  tender  are  issued  according  to  uniform  rules 
across  all  Member  States,  the  Commission  should  adopt  implementing  acts  for  the 
conditions pertaining to the invitation to tender and the conditions applicable to food 
products and their the supply. 

(20)  To  ensure  a  harmonised  level  of  performance  of  the  different  elements  of  the 
monitoring system, the Commission should adopt implementing rules laying down the 
obligations of Member States concerning checks. 

(21) 

In  order  to  ensure  that  the  implementation  of  the  plan  by  the  authorities  of  Member 
States  is  done  in  a  uniform  manner  and  to  facilitate  collaboration  among  them,  the 
Commission should adopt implementing rules laying down procedures and deadlines 
for payments, including reductions for their non-respect, accounting provisions and the 
tasks to be fulfilled by national intervention bodies including in the case of transfers 
between Member States.  

(22)  Regulations (EC) No 1290/2005 and (EC) No 1234/2007 should therefore be amended 

accordingly, 

HAVE ADOPTED THIS REGULATION: 

In Article 3(1) of Regulation (EC) No 1290/2005, the following point (g) is added: 

Article 1 

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"(g) 

the Union's financial contribution to the scheme for distribution of food products to 
the most deprived persons in the Union provided for in Article 27 of Regulation (EC) 
No 1234/2007." 

Article 2 

Regulation (EC) No 1234/2007 is amended as follows: 

(1) 

A new Article 4a is inserted: 

"Article 4a  

[Adoption of delegated and implementing acts] 

Where  powers  are  conferred  upon  the  Commission  to  adopt  delegated  acts,  it  shall 
act in accordance with the procedure referred to in Article 196a.  

Where  powers  are  conferred  upon  the  Commission  to  adopt  implementing  acts,  it 
shall act in accordance with the procedure referred to in Article 196b." 

(2) 

In Part II, Title I, Chapter I, Section II, the Subsection IV is amended as follows: 

(a)  Article 27 is replaced by the following: 

"Article 27 
Scheme for food distribution to the most deprived persons in the Union 

1.  A scheme is established whereby food products may be distributed to the most 
deprived  persons  in  the  Union  through  organisations  designated  by  Member 
States. For that purpose, products in intervention stocks shall be made available 
or, where intervention stocks suitable for the food distribution scheme are not 
available, food products shall be purchased on the market.  

For  the  purposes  of  the  scheme  provided  for  in  the  first  subparagraph  'most 
deprived  persons'  means  physical  persons,  whether  individuals,  families  or 
groups  composed  of  such  persons,  whose  social  and  financial  dependence  is 
recorded  or  recognised  on  the  basis  of  eligibility  criteria  adopted  by  the 
national competent authorities, or is judged to be so on the basis of the criteria 
used  by  the  designated  organisations  and  which  are  approved  by  those 
competent authorities. 

2.  Member States wishing to participate in the scheme provided for in paragraph 
1 shall submit to the Commission food distribution programmes containing the 
following: 

(a) 

details of their main characteristics and objectives,  

(b) 

the organisations designated,  

(c) 

the  requests  for  quantities  of  food  products  to  be  distributed  during  a 
three-year period and other relevant information.  

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Member States shall choose the food products on the basis of objective criteria, 
including  nutritional  values  and  suitability  for  distribution.  For  that  purpose, 
Member States may give preference to food products of Union origin.  

3. 

Based on requests notified by Member States pursuant to the first subparagraph 
of  paragraph  2  and  other  information  considered  relevant,  the  Commission 
shall adopt three-year plans.   

Each three-year plan shall set out annual financial allocations by the Union per 
Member State and minimum annual financial contributions of Member States. 
Allocations for the second and third year of the programme shall be indicative.

Member  States  participating  in  the  scheme  shall  confirm  every  year  the 
requests  referred  to  in  point  (c)  of  the  first  subparagraph  of  paragraph  2. 
Following  these  confirmations,  the  Commission  shall  decide  each  subsequent 
year,  on  the  definitive  allocations,  within  the  limits  of  the  appropriations 
available in the budget. 

When products included in the three-year plan are not available in intervention 
stocks  in  the  Member  State  where  such  products  are  required,  the  three-year 
plan  shall  provide  for  their  transfer  from  Member  States  where  they  are 
available in intervention stocks. 

A  three-year  plan  may  be  revised  in  the  light  of  any  relevant  developments 
affecting its execution. 

4. 

The organisations designated by the Member States as referred to in paragraph 
1 cannot be commercial undertakings. 

The food products shall be released free of charge to those organisations.  

The distribution of the food products to the most deprived persons shall be: 

(a) 

free of charge, or  

(b) 

at  a  price  which  is  in  no  case  greater  than  that  justified  by  the  costs 
incurred by the designated organisations in implementing the operation, 
other than the costs that may be covered under points (a) and (b) of the 
second subparagraph of paragraph 7.  

5.  Member States participating in the scheme shall: 

(a) 

submit  to  the  Commission  an  annual  report  on  implementation  of  the 
scheme; 

(b)  keep  the  Commission  informed  in  a  timely  manner  on  developments 
affecting the implementation of the food distribution programmes. 

6. 

The  Union  shall  co-finance  the  eligible  costs  under  the  scheme.  This  co-
financing shall neither:  

(a) 

exceed EUR 500 millions per budget year in total; nor  

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(b) 

exceed  75%  of  the  eligible  costs,  or  90%  of  the  eligible  costs  in  the 
Member  States  eligible  for  funding  from  the  Cohesion  Fund  for  the 
period  2007-2013,  as  listed  in  Annex  I  to  Commission  Decision 
2006/596/EC*. 

7. 

Eligible costs under the scheme shall be: 

(a) 

the cost of products released from intervention stocks,  

(b) 

the cost of food products purchased on the market, and 

(c) 

the costs of transporting products in intervention stocks between Member 
States, when required.  

Within  the  financial  resources  available  to  implement  the  three-year  plan  in 
each  Member  State,  the  national  competent  authorities  may  consider  eligible 
the following costs:  

(a) 

(b) 

costs of transport of food products to the storage depots of the designated 
organisations; 

the following costs incurred by the designated organisations, to the extent 
that they are directly linked with the implementation of the plan:  

(i) 

administrative costs; 

(ii) 

transport  costs  between  the  storage  depots  of  the  designated 
organisations and the points of final distribution, and  

(iii)  storage costs.  

8.  Member States shall carry out administrative and physical checks to ensure the 
implementation  of  the  plan  in  compliance  with  the  applicable  rules  and  shall 
lay down the penalties applicable in cases of irregularities. 

9. 

The  indication  "European  Union  aid"  accompanied  by  the  emblem  of  the 
European  Union  shall  be  clearly  marked  on  the  packing  of  food  distributed 
through the plans as well as in the distribution points. 

10.  The Union scheme shall be without prejudice to any national schemes whereby 
food  products  are  distributed  to  most  deprived  persons,  in  conformity  with 
Union law. 

* 

OJ L 243, 6.9.2006, p. 47." 

(b)  The following Articles 27a and 27b are added: 

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"Article 27a 

Non-essential elements of the scheme for food distribution  

1. 

2. 

In  order  to  ensure  the  efficient  use  of  the  budget  assigned  to  the  scheme 
provided for in Article 27, the Commission shall, by means of delegated acts, 
define the method for calculating the overall allocation of resources including 
the distribution  of intervention  products and financial means  for the purchase 
of food products on the market among Member States. It shall also define the 
accounting  value  of  products  released  from  intervention  stocks  as  well  as  the 
method to be used for any reallocation of resources among Member States as a 
result of a three-year plan revision. 

In order to ensure the effective and efficient use of the budget assigned to the 
scheme provided for in Article 27, and to safeguard the rights and obligations 
of  operators,  the  Commission  shall,  by  means  of  delegated  acts,  adopt 
provisions requiring the use of tendering procedures for all operations relating 
to the execution of the food distribution programmes, provisions on securities 
to be lodged by participants in tenders, and provisions on sanctions, reductions 
and  exclusions  to  be  applied  by  the  Member  States  especially  with  regard  to 
the  non  respect  of  time-limits  for  withdrawal  of  products  from  intervention 
stocks and in the case of serious shortcomings or irregularities in the execution 
of the three-year plan.  

Article 27b 

Uniform implementation of the scheme for food distribution  

1. 

The  Commission  shall,  by  means  of  implementing  acts,  adopt  provisions  for 
the  uniform  implementation  of  the  three-year  plan  and  the  national  food 
distribution programmes referred to in Article 27. Those acts shall concern: 

(a) 

(b) 

(c) 

detailed rules and procedures for the adoption and revision of the three-
year plans, including applicable deadlines; 

the  adoption  of  the  three-year  plans  and  their  revisions  as  well  as  the 
definitive  allocations  referred  to  in  the  third  subparagraph  of  Article 
27(3); 

provisions  on  additional  elements  that  three-year  plans  shall  consist  of, 
rules for the supply of food products, as well as the procedures and time 
limits  applicable  to  withdrawals  of  intervention  products  and  transfers 
between Member States; 

(d)  provisions on the format of annual reports on implementation as well as 

of the national food distribution programmes; 

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(e) 

detailed rules applying to the reimbursement of the costs provided for in 
the second subparagraph of Article 27(7) including financial ceilings and 
time limits; 

(f) 

uniform  conditions  pertaining  to  tender  invitations  including  conditions 
applicable to food products and their supply; 

(g)  provisions on administrative and physical checks to be undertaken by the 

Member states; 

(h)  uniform  provisions  concerning  payment  procedures  and  deadlines  and 
reductions  applicable  in  case  of  non-respect,  accounting  provisions  and 
the 
transfers  between  Member  States 
procedures 
description  of  tasks  to  be  fulfilled  by  concerned  national  intervention 
bodies; 

including 

for 

(i) 

uniform conditions for the implementation of Article 27(9)." 

(3) 

(4) 

In Article 43, points (g) and (h) are deleted. 

In Article 184, the following point (9) is added: 

"(9)  by 31 December 2014 at the latest, to the European Parliament and the Council 
on  the  application  of  the  scheme  for  food  distribution  to  the  most  deprived 
persons in the Union provided for in Article 27, together with any appropriate 
proposal." 

(5) 

In Chapter I of part VII, the following Articles 196a and 196b are added: 

"Article 196a 

Delegated acts 

1. 

The powers to adopt the delegated acts referred to in this Regulation shall be 
conferred on the Commission for an indeterminate period of time. 

As  soon  as  it  adopts  a  delegated  act,  the  Commission  shall  notify  it 
simultaneously to the European Parliament and to the Council. 

2. 

The delegation of power referred to in paragraph 1 may be revoked at any time 
by the European Parliament or by the Council. 

The  institution  which  has  commenced  an  internal  procedure  for  deciding 
whether to revoke the delegation of power shall endeavour to inform the other 
institution  and  the  Commission  within  a  reasonable  time  before  the  final 
decision  is  taken,  indicating  the  delegated  powers  which  could  be  subject  to 
revocation and possible reasons for a revocation. 

The  decision  of  revocation  shall  put  an  end  to  the  delegation  of  the  powers 
specified  in  that  decision.  It  shall  take  effect  immediately  or  at  a  later  date 
specified therein. It shall not affect the validity of the delegated acts already in 
force. It shall be published in the Official Journal of the European Union. 

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3. 

The  European  Parliament  and  the  Council  may  object  to  the  delegated  act 
within a period of two months from the date of notification. At the initiative of 
the  European  Parliament  or  the  Council  this  period  shall  be  extended  by  one 
month. 

If,  on  the  expiry  of  that  period,  neither  the  European  Parliament  nor  the 
Council  has  objected  to  the  delegated  act  it  shall  be  published  in  the Official 
Journal  of  the  European  Union  and  shall  enter  into  force  at  the  date  stated 
therein. 

 The  delegated  act  shall  be  published  in  the  Official  Journal  of  the  European 
Union  and  enter  into  force  before  the  expiry  of  that  period  if  the  European 
Parliament  and  the  Council  have  both  informed  the  Commission  of  their 
intention not to raise objections.  

If the European Parliament or the Council objects to a delegated act, it shall not 
enter  into  force.  The  institution  which  objects  shall  state  the  reasons  for 
objecting to the delegated act.  

Article 196b 

Implementing acts 

[To be completed following the adoption of the Regulation laying down the rules and 
general  principles  concerning  mechanisms  for  control  envisaged  in  Article  291(2) 
TFEU, which is currently under discussion before the PE and the Council.] 

Article 2 

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

It shall apply in relation to the three-year plan starting on or after 1 January 2012. 

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

Done […] 

For the European Parliament 
The President 

For the Council 
The President 

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FINANCIAL STATEMENT 

BUDGET HEADING: 
05 02 04 01 

Fichefin/478963rev1 
(EM/tm) 
6.5.2010.1 

DATE: 15/07/2010 
APPROPRIATIONS: 
500 M€ in B-2010  
500 M€ in DB-2011  

TITLE: 
Amended Proposal for a Regulation (EU) No…/….of the European Parliament and of the Council 
amending Regulations (EC) No 1290/2005 on the financing of the common agricultural policy and 
Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on 
specific provisions for certain agricultural products (Single CMO Regulation) as regards food 
distribution to the most deprived persons in the Union. 
LEGAL BASIS: 
Articles 43 of the Treaty on the Functioning of the European Union 
AIMS: 
The proposed rules are designated to implement the new provisions for the food distribution scheme to 
the most deprived persons in the union 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 

FOLLOWING 
FINANCIAL 
YEAR 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

(EUR million) 
500 

(EUR million) 
- 

(EUR million) 
- 

1. 

2. 

3. 

4. 

5. 

5.0 

5.1  REVENUE 

- 

- 

- 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

- 

2010 

2011 

- 

- 

2012 
 500 
- 

2013 
500 
- 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

YES NO 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

YES NO 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 
The new scheme will be co-financed by the Union. The proposal includes an annual financial ceiling of 500 M€.

YES NO 
YES NO 

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