Proposal for a REGULATION (EU) No …/ OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1290/2005 on the financing of the common agricultural policy and repealing Council Regulation (EC) No 165/94 and Council Regulation (EC) No 78/2008
Date: 2010-12-15
Institutions: European Commission
Subjects: EU financing arrangements, common agricultural policy, competence of the institution

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EUROPEAN COMMISSION 

Brussels, 15.12.2010 
COM(2010) 745 final 

2010/0365 (COD) 

Proposal for a 

REGULATION (EU) No …/ OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL 

of … 

amending Council Regulation (EC) No 1290/2005 on the financing of the common 
agricultural policy and repealing Council Regulation (EC) No 165/94 and Council 
Regulation (EC) No 78/2008  

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  makes  a  clear  distinction 
between, on the one hand, the powers delegated to the Commission to adopt non-legislative 
acts  (delegated  acts)  of  general  application  in  order  to  supplement  or  amend  certain  non-
essential  elements  of  a  legislative  act,  as  set  out  in  Article  290,  and,  on  the  other,  those 
conferred upon the Commission to adopt implementing acts as referred to in Article 291. 

In the case of delegated acts, the Legislator delegates to the Commission the power to adopt 
quasi-legislative measures. In the case of implementing acts, the context is very different. The 
Member  States  are  the  primary  parties  responsible  for  implementing  legally  binding  acts  of 
the  European  Union.  However,  if  the  application  of  that  legislative  act  necessitates  uniform 
conditions of implementation, the Commission is responsible for adopting these. 

The  harmonisation  of  Regulation  (EC)  No 1290/2005  with  the  new  rules  contained  in  the 
Treaty  is  based  on  a  classification  into  delegated  powers  and  implementing  powers  of  the 
provisions adopted by the Commission pursuant to that Regulation. 

Following this exercise, a draft proposal amending Regulation (EC) No 1290/2005 has been 
drafted.  In  accordance  with  Article  290  of  the  Treaty  on  the  Functioning  of  the  European 
Union,  the  Legislator  entrusts  the  Commission  with  the  task  of  supplementing  or  amending 
certain non-essential elements. A Commission delegated act may therefore set out additional 
elements which are necessary for the smooth running of the scheme defined by the Legislator.  

The Member States, in accordance with Article 291 of the Treaty on the Functioning of the 
European Union, are responsible for implementing the scheme defined by the Legislator for 
legally binding acts. These acts may confer implementing powers upon the Commission when 
uniform conditions of implementation are necessary.  

2. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES 
AND IMPACT ASSESSMENTS 

There  was  no  need  for  consultation  of  interested  parties  or  for  an  impact  analysis  since  the 
proposal  to  align  Council  Regulation  (EC)  No  1290/2005  with  the  TFEU  is  an  inter-
institutional  matter  that  will  concern  all  Council  Regulations.  The  amendments  aiming  at 
simplification of recovery procedures are of limited scope and purely technical nature. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the Proposal  

Identify  the  delegated  and  implementing  powers  of  the  Commission  in  Council 
Regulation  (EC)  No  1290/2005  and  establish  the  corresponding  procedure  for  the 
adoption of these acts. 

In  addition,  some  simplifications  are  introduced  relating  to  EAGF  expenditure  and 
recovery procedures. 

•  Legal basis 

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Article 43 TFEU. 

•  The principle of subsidiarity 

Agricultural policy is a shared competence between the EU and the Member States. 
This  means  that  as  long  as  the  EU  does  not  legislate  in  a  sector,  Member  States 
maintain  their  competence.  As  regards  the  financing  of  the  common  agricultural 
policy, a Community approach already exists, and it is therefore justified to simplify 
the current rules. 

•  The proportionality principle  

The proposal complies with the proportionality principle. 

•  Choice of legal instrument 

Proposed instrument: Regulation of the European Parliament and of the Council 

4. 

BUDGETARY IMPLICATIONS 

The proposal has no impact on budgetary expenditure. 

5. 

OPTIONAL ELEMENTS  

Simplification 

The  amendments  relating  to  the  expenditure  to  be  financed  by  the  EAGF  and  the  recovery 
procedure constitute a simplification in that they replace two Council regulations and result in 
a decrease in the administrative tasks incumbent on Member States. 

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2010/0365 (COD) 

Proposal for a 

REGULATION (EU) No …/ OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL 

of … 

amending Council Regulation (EC) No 1290/2005 on the financing of the common 
agricultural policy and repealing Council Regulation (EC) No 165/94 and Council 
Regulation (EC) No 78/2008  

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 draft legislative act to the national parliaments, 

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

Acting in accordance with the ordinary legislative procedure3, 

Whereas: 

(1) 

(2) 

(3) 

Regulation  (EC)  No  1290/20054  confers  competence  on  the  Commission  to  adopt 
detailed rules for the application of that Regulation. 

As a consequence of the entry into force of the Lisbon Treaty, the powers conferred 
under Regulation (EC) No 1290/2005 upon the Commission need to be aligned with 
Articles  290  and  291  of  the  Treaty  on  the  Functioning  of  the  European  Union  (the 
Treaty). 

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 Regulation (EC) No 1290/2005. The elements for which that power may 
be  exercised  and  the  conditions  to  which  that  delegation  must  be  subject  should  be 
defined. 

1 
2 
3 
4 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 209, 11.8.2005, p. 1. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

In  order  to  guarantee  a  uniform  application  of  Regulation  (EC)  No  1290/2005  in  all 
Member States, the Commission should be empowered to adopt implementing acts in 
accordance  with  Article  291  of  the  Treaty.  The  Commission  should  adopt  those 
implementing acts in accordance with the provisions of Regulation (EU) No xxx/xxx 
of the European Parliament and the Council on…5 

Some  of  the  provisions  on  the  financing  of  the  common  agricultural  policy  adopted 
previously  by  the  Commission  relating  to  the  competences  conferred  by  Regulation 
(EC) No 1290/2005 should be included in that Regulation. These provisions concern 
the  rules  on  the  assignment  of  certain  sums  and  amounts  which  constitute  revenue 
payable  to  the  budget  of  the  Union  provided  for  in  the  accounts  kept  in  accordance 
with Commission Regulation (EC) No 883/2006 of 21 June 2006 laying down detailed 
rules  for  the  application  of  Council  Regulation  (EC)  No  1290/2005  as  regards  the 
keeping of accounts by paying agencies, declarations of expenditure and revenue and 
the conditions for reimbursing expenditure under the EAGF and the EAFRD6.  

In the light of the experience gained with the application of the rules on expenditure 
financed by the European Agricultural Guarantee Fund (EAGF) and by the European 
Agricultural Fund for Rural Development (EAFRD), some of the provisions relating to 
the financing of the actions provided for by Council Regulation (EC) No 165/94 of 24 
January  1994  concerning  the  co-financing  by  the  Community  of  remote-sensing 
checks7  and  by  Council  Regulation  (EC)  No  78/2008  of  21  January  2008  on  the 
measures  to  be  undertaken  by  the  Commission  in  2008–2013  making  use  of  the 
remote-sensing  applications  developed  within  the  framework  of  the  common 
agricultural  policy8  should  be  incorporated  into  Regulation  (EC)  No  1290/2005. 
Consequently, Regulation (EC) No 165/1994 and Regulation (EC) No 78/2008 should 
be  repealed.  However,  the  article  on  the  report  to  be  submitted  by  the  Commission 
should continue to apply.  

The  purpose  of  the  actions  undertaken  by  the  Commission  via  the  remote-sensing 
application  and  the  acquisition  and  improvement  of  satellite  images  by  the 
Commission is to provide the means to manage and monitor agricultural markets. In 
order to comply with this objective, the Commission should have the power to adopt 
implementing acts relating to acquisition conditions and procedures and the provision 
to Member States of the results of remote-sensing actions.  

In order to ensure uniform operation of the coordinating bodies of the Member States, 
referred  to  in  Article  6  of  Regulation  (EC)  No  1290/2005,  the  Commission  should 
have  the  power  to  adopt  implementing  acts  relating  to  the  operating  rules  of  these 
bodies and the communication of information to the Commission in particular.  

To enable the Commission to validate the financing plan for each rural development 
programme  and  to  provide  for  any  changes  to  it,  the  Commission  should  have  the 
power  to  adopt  implementing  acts  in  connection  with  the  conditions  applying  to  the 
content and amendment of the financing plan. 

5 
6 
7 
8 

OJ L [...], […], p.[…]. 
OJ L 171, 23.6.2006, p.1. 
OJ L 24, 29.1.1994, p.6. 
OJ L 25, 30.1.2008, p.1. 

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(10)  Notifications of information by the Member States to the Commission must enable it 
to use the information sent directly and as effectively as possible for the management 
of EAGF and EAFRD accounts and the relevant payments, as well as for conducting 
the  account  clearance  procedure  and  the  conformity  clearance  procedure.  The 
Commission  should  have  the  power  to  adopt  implementing  acts  relating  to  the 
declaration  of  expenditure,  annual  accounts,  statement  of  assurance,  declaration  on 
public  storage,  information  systems  for  the  exchange  of  information  and  documents, 
as well as the rules on their conservation.  

(11)  The obligation relating to the keeping of accounts by paying agencies takes the form 
of  detailed  data  required  for  the  management  of  the  funds  and  their  supervision.  To 
enable  Member  States  and  paying  agencies  to  comply  with  this  obligation  by 
following  harmonised  rules,  the  Commission  should  have  the  power  to  adopt 
implementing acts relating to the accounting framework for intervention measures in 
the  form  of  public  storage  operations  referred  to  in  Commission  Regulation  (EC) 
No 884/2006 of 21 June 2006 laying down detailed rules for the application of Council 
Regulation (EC) No 1290/2005 as regards the financing by the European Agricultural 
Guarantee  Fund  (EAGF)  of  intervention  measures  in  the  form  of  public  storage  and 
the  accounting  of  public  storage  operations  by  the  paying  agencies  of  the  Member 
States9, as well as other expenditure financed by the EAGF and the EAFRD referred to 
in Regulation (EC) No 883/2006.  

(12)  To  guarantee  the  sound  management  of  financial  flows,  particularly  since  Member 
States provide funds to cover the expenditure required, the Commission should have 
the power to adopt implementing acts relating to the making available of funds to the 
Member  States,  taking  account  of  the  specific  management  models  applying  to  the 
EAGF and the EAFRD.  

(13)  On the occasion of this amendment to Regulation (EC) No 1290/2005, the objective of 
which is to align that Regulation with the procedures provided for under the Treaty of 
Lisbon,  some  provisions  in  some  language  versions  should  be  updated  in  order  to 
incorporate the terminology used in the Treaty. 

(14)  Regulation (EC) No 1290/2005 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1290/2005 is amended as follows: 

(1) 

Article 3 is amended as follows: 

(a) 

In paragraph 2, point (ea) is added as follows: 

'(ea)  until  31  December  2013,  the  action  taken  by  the  Commission  via  remote-
sensing  applications  to  provide  the  Commission  with  the  means  to  manage 
agricultural markets;' 

9 

OJ L 171, 23.6.2006, p. 35. 

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(b) In paragraph 3, the second subparagraph is replaced by the following: 

'The respective charges and costs shall be calculated and set by the Commission by 
implementing  act  in  accordance  with  the  procedure  referred  to  in  Article  42d(3) 
[advisory procedure].' 

(2) 

In Article 5, the following point (aa) is inserted as follows: 

'(aa)  the  acquisition  by  the  Commission  of  the  satellite  images  required  for  the 
checks, the list for which is drawn up with each Member State in accordance with the 
terms of reference prepared by them, for use by the Commission or for delivery free 
of  charge  to  supervisory  bodies  or  service  providers  appointed  by  them  where  the 
Commission shall remain the proprietor of the images, as well as work on enhancing 
techniques  and  working  methods  in  connection  with  the  inspection  of  agricultural 
areas by remote-sensing;' 

(3) 

Article 6 is amended as follows: 

(a) In paragraph 3, the following subparagraph is added: 

'The Commission shall adopt by implementing act in accordance with the procedure 
referred  to  in  Article  42d(2)  (examination  procedure)  the  rules  governing  the 
operation of the coordinating body referred to in the first and second subparagraphs 
and the notification of information to the Commission.'  

b) The following paragraphs 5 and 6 are added: 

'5. To ensure the sound operation of the system provided for in paragraphs 1–4, 
the Commission shall determine  by delegated  act  in  accordance  with  the  procedure 
referred to in Article 42a: 

(a)  minimum conditions for the accreditation of paying agencies with regard to the 
internal  environment,  inspection  activities,  information  and  communication,  and 
monitoring,  as  well  as  rules  on  the  procedure  for  issuing  and  withdrawing 
accreditation;  

rules  relating  to  supervision  and  the  procedure  for  reviewing  accreditation  of 

(b) 
paying agencies; 

(c)  minimum  conditions  for  the  accreditation  of  coordination  bodies  as  well  as 
rules on the procedure for issuing and withdrawing accreditation.  

6. To ensure the sound completion of the tasks provided for under paragraph 1 in the 
context of public storage operations, the Commission shall define by delegated act in 
accordance with the procedure referred to under Article 42a rules pertaining to: 

(a) 
the  scope  of  the  responsibility  and  obligations  of  paying  agencies,  the 
conditions under which the execution of tasks may be delegated to third-party public 
or private bodies;  

(b) 
the  obligation  for  paying  agencies  to  establish  an  inventory  for  each  product 
and to inspect the stocks of products under the public intervention scheme, as well as 
the conditions applicable to the inspections.'  

(4) 

Article 7 is amended as follows: 

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(a)  The existing text becomes paragraph 1; 

(b)  The following paragraph 2 is added: 

'2.  To  ensure  the  suitability  of  the  work  of  certifying  bodies  for  use  by  the 
Commission  in  the  account  clearance  procedure,  the  Commission  shall  adopt  by 
delegated act in accordance with the procedure referred to in Article 42a rules on the 
designation and responsibilities of these agencies.'  

(5) 

In Article 9 the following paragraph 4 is inserted: 

'4. 
In order to ensure correct and efficient application of the controls provided for 
in this article, the Commission may define by delegated act specific obligations to be 
complied with by the Member States.' 

(6) 

Article 15 is amended as follows: 

(a) Not applicable to the English version. 

(b) Paragraph 2 is replaced by the following text: 

'2.  The  Commission  shall  adopt  an  implementing  decision  in  accordance  with  the 
procedure  referred  to  in  Article  42d(3)  (advisory  procedure)  regarding  the  monthly 
payments  which  it  makes,  on  the  basis  of  a  declaration  of  expenditure  from  the 
Member States and the information supplied in accordance with Article 8(1), taking 
account of any reductions or suspensions applied under Articles 17 and 17a.' 

(7) 

Article 16 is amended as follows: 

(a)  The existing text becomes paragraph 1; 

(b)  The following paragraph 2 is added: 

In  order  to  make  the  financial  impact  proportional  to  the  payment  delay 
'2. 
observed,  the  Commission  shall  adopt  by  delegated  act  in  accordance  with  the 
procedure referred to in Article 42a rules on the reduction of payments in relation to 
the duration of the payment overrun.'  

(8) 

(9) 

Not applicable to the English version.  

Not applicable to the English version.  

(10)  Article 18(4) is replaced by the following text: 

'4.  If  by  30  June  in  any  year  the  Council  has  not  set  the  adjustments  referred  to  in 
Article  11(1)  of  Council  Regulation  (EC)  No  73/2009*,  the  Commission  shall  set 
those adjustments by implementing act in accordance with the procedure referred to 
in  Article  42d(3)  (advisory  procedure)  of  this  Regulation  and  shall  inform  the 
Council of them immediately. 

-------------------------- 

* OJ L 30, 31.1.2009, p.16.' 

(11)  Article 19 is amended as follows: 

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Paragraphs 1, 2 and 3 are replaced by the following text: 

'1.  The Commission shall present to the European Parliament and to the Council, 
at  the  same  time  as  the  draft  budget  for  financial  year  N,  its  forecasts  for  financial 
years N - 1, N and N + 1. 

It  shall  simultaneously  present  an  analysis  of  the  differences  observed  between  the 
initial forecasts and actual expenditure for financial years N - 2 and N - 3. 

2. 
If,  on  drawing  up  the  draft  budget  for  financial  year  N,  there  appears  to  be  a 
risk  that  the  net  balance  referred  to  in  Article  12(3)  for  financial  year  N  will  be 
exceeded, taking account of the margin provided for in Article 11 of Regulation (EC) 
No  73/2009,  the  Commission  shall  propose  to  the  Council  the  measures  necessary, 
including those required under Article 11(2) of Regulation (EC) No 73/2009. 

3.  At any time, if the Commission considers that there is a risk of the net balance 
referred to in Article 12(3) being exceeded and that it cannot take adequate measures 
to  remedy  the  situation  under  its  powers,  it  shall  propose  other  measures  to  ensure 
compliance with that balance. These measures shall be adopted by the Council or the 
European Parliament and the Council.' 

(b) 

In paragraph 4, point (c) is replaced by the following text: 

'  (c)  set,  by  implementing  act  in  accordance  with  the  procedure  laid  down  in 
Article 42d(3)  (advisory  procedure),  the  total  amount  of  Union  financing  broken 
down by Member State, on the basis of a single rate of Union financing, within the 
limit of the budget which was available for the monthly payments;' 

(12)  Article 21 is amended as follows: 

(a)  Paragraph 1 is replaced by the following: 

'1.  When adopting the draft budget, or a letter of amendment to the draft budget 
which concerns agricultural expenditure, the Commission shall use for EAGF budget 
estimates  the  average  euro/US  dollar  exchange  rate  recorded  on  the  market  during 
the latest quarter ending at least 20 days before adoption of the budget document by 
the Commission.' 

(b) 

In paragraph 2, the introductory sentence is replaced by the following text: 

'2.  When  adopting  a  draft  amending  and  supplementary  budget  or  a  letter  of 
amendment thereto, in so far as those documents concern appropriations relating to 
the measures referred to in Article 3(1)(a) and (b), the Commission shall use:' 

(13) 

In Title II, the following Article 21a is added: 

'Article 21a 

Measures linked to remote sensing 

1. 
The  purpose  of  the  measures  funded  pursuant  to  Article  3(2)(ea)  is  to  ensure 
agri-economic  monitoring  of  agricultural  land  and  of  the  condition  of  crops,  to 
enable  estimates  to  be  made,  in  particular  as  regards  yields  and  agricultural 

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production, to promote access to the estimates, and to ensure technological follow-up 
of the agri-meteorological system.  

the  common  agricultural  policy, 

The actions primarily involve the collection or purchase of data needed to implement 
and  monitor 
including  satellite  data  and 
meteorological data, creation of a spatial data infrastructure and a website, carrying 
out  specific  studies  on  climatic  conditions  and  updating  agri-meteorological  and 
econometric models. 

The  Commission  may  adopt  by  implementing  act  in  accordance  with  the 
2. 
procedure referred to in Article 42d(2) (examination procedure) rules relating to the 
financing  referred  to  in  Article  3(2)(ea)  and  in  Article  5(aa),  the  conditions  under 
which remote-sensing measures shall be carried out in order to  meet the  objectives 
assigned,  the  conditions  governing  the  acquisition,  enhancing  and  utilisation  of 
satellite images and meteorological data, and the deadlines applicable.'  

(14) 

In Chapter 1 of Title III, the following Article 23a is inserted: 

'Article 23a 

Implementing powers 

The  Commission  shall  lay  down  by  implementing  act  in  accordance  with  the 
procedure  referred  to  in  Article  42d(2)  (examination  procedure)  of  this  Regulation 
the conditions relating to the content, presentation and amendment of the financing 
plan as provided for under Article 16 of Council Regulation (EC) No 1698/2005*.  

-------------------------------- 

* OJ L 277, 21.10.2005, p.1.'  

(15)  Not applicable to the English version.  

(16)  Not applicable to the English version.  

(17)  Article 30 is replaced by the following text: 

'Article 30 
Clearance of accounts 

1. 

2. 

Prior to 30 April of the year following the budget year in question, the Commission 
shall adopt an implementing decision in accordance with the procedure referred to in 
Article 42d(3) (advisory procedure) concerning the clearance of the accounts of the 
accredited paying agencies, on the basis of the information transmitted in accordance 
with Article 8(1)(c)(iii). 

The  clearance  decision  referred  to  in  paragraph  1  shall  cover  the  completeness, 
accuracy  and  veracity  of  the  annual  accounts  submitted.  The  decision  shall  be 
adopted without prejudice to decisions taken subsequently under Article 31.' 

(18)  Article 31 is amended as follows: 

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(a)  Paragraph 1 is replaced by the following text: 

'1.  The  Commission  shall  adopt  an  implementing  decision  in  accordance  with  the 
procedure referred to in Article 42d(3) (advisory procedure) regarding the amounts to 
be  excluded  from  Union  financing  when  it  finds  that  expenditure  as  indicated  in 
Article 3(1) and Article 4 has been incurred in a way that has infringed the Union's 
rules.' 

(b)  Paragraph 3, first subparagraph, is replaced by the following: 

'3.  Before  the  adoption  of  any  decision  to  refuse  financing,  the  findings  from  the 
Commission's inspection and the Member State's replies shall be notified in writing, 
following which the two parties shall attempt to reach agreement on the action to be 
taken.'  

(19) 

In Chapter 1 of Title IV, the following Article 31a is inserted: 

'Article 31a 
Delegated powers 

In order to ensure the smooth running of the account clearance procedure and of the 
conformity  clearance  procedure,  the  Commission  shall  adopt  by  delegated  act  in 
accordance  with  to  the  procedure  referred  to  in  Article  42a  rules  regarding  the 
measures  to  be  taken  in  connection  with  the  adoption  of  the  decisions  referred  to 
under Articles 30 and 31 and their implementation, as well as the rules regarding the 
conciliation  procedure  referred  to  in  Article  31(3),  second  subparagraph,  including 
the  establishment,  tasks  and  composition  of  a  conciliation  body  and  its  working 
arrangements.'  

(20)  Article 32 is amended as follows: 

(a) 

In paragraph 4, the introductory phrase is replaced by the following text: 

'After the procedure laid down in Article 31 has been followed, the Commission may 
decide to charge the sums to be recovered to the Member State:' 

(b) Not applicable to the English version.  

(c) 

In paragraph 8, the introductory phrase is replaced by the following text: 

'Following  completion  of  the  procedure  laid  down  in  Article  31,  the  Commission 
may decide to exclude from Community financing sums charged to the Community 
budget in the following cases:' 

(21)  Article 33 is amended as follows: 

(a) 

In paragraph 5, the introductory phrase is replaced by the following: 

'After the procedure laid down in Article 31 has been followed, the Commission may 
decide to charge the sums to be recovered to the Member State:' 

(b)  Paragraph 7 is replaced by the following text: 

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'7.  A  Member  State  may  decide  to  halt  the  recovery  procedure  under  the 
conditions laid down in Article 32(6).' 

(22)  Article 34 is amended as follows: 

(a) 

In paragraph 1, the following points (d) and (e) are added: 

'(d) sums payable to the Union's budget which have been collected as a consequence 
of penalties or sanctions in accordance with the specific rules laid down in sectoral 
agricultural legislation;  

(e)  amounts  corresponding  to  reductions  or  exclusions  of  payments  applied  in 
accordance with the rules on cross-compliance laid down in Chapter 1 of Title II of 
Regulation (EC) No 73/2009.'  

(b)  The following paragraph 4 is added: 

'4.  Articles  150  and  151  of  Regulation  (EC,  Euratom)  No 1605/2002  shall  apply 
mutatis mutandis to the keeping of accounts on assigned revenue referred to in this 
Regulation.'  

(23) 

In Chapter 2 of Title IV, the following Article 35a is inserted: 

'Article 35a 

Delegated powers  

1.  In  order  to  ensure  correct  and  efficient  application  of  the  provisions  relating  to 
recovery set out in Articles 32 and 33, the Commission shall define by delegated act 
in accordance with the procedure referred to under Article 42a specific obligations to 
be complied with by the Member States.  

2. In order to take account of revenue collected by paying agencies for the Union's 
budget when making payments on the basis of the expenditure declarations submitted 
by Member States, the Commission shall define by delegated act in accordance with 
the procedure referred to under Article 42a the conditions under which certain types 
of expenditure and revenue under the EAGF and the EAFRD are to be offset.' 

(24) 

In Chapter 3 of Title IV, the following Article 37a is inserted: 

'Article 37a 

Delegated powers  

To ensure the efficiency of the tasks entrusted to the Commission under Articles 36 
and  37,  the  Commission  may  define  by  delegated  act  in  accordance  with  the 
procedure referred to under Article 42a rules regarding the cooperation obligations to 
be complied with by the Member States.' 

(25)  The following Articles 40a and 40b are inserted: 

'Article 40a 

Delegated powers  

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1.  With a view to ensuring the proper management of the appropriations entered 
in  the  budget  of  the  Union  for  the  EAGF  and  the  EAFRD,  the  Commission  may 
adopt  by  delegated  act  in  accordance  with  the  procedure  referred  to  in  Article  42a 
rules pertaining to: 

the  obligation  for  paying  agencies  to  keep  accounts,  as  well  as  the  specific 

(a) 
conditions applying to the information to be booked in the accounts;  

(b) 
the valuation of operations in connection with public storage and the measures 
to be taken in case of loss or deterioration of products under the intervention scheme 
in the form of public storage and the determination of amounts to be financed.  

In  order  to  ensure  the  funding  by  the  EAGF  of  expenditure  relating  to 
2. 
intervention measures in the form of public storage, the Commission may adopt by 
delegated  act  in  accordance  with  the  procedure  referred  to  in  Article  42a  rules 
pertaining to: 

(a)  the  type  of  expenditure  likely  to  be  eligible  for  Union  financing  and  the 
reimbursement conditions;  

(b) the eligibility conditions and calculation methods on the basis of the information 
actually observed by the paying agencies or on the basis of flat-rates determined by 
the Commission, or on the basis of flat-rate or non-flat-rate amounts provided for by 
sectoral agricultural legislation.  

3. 
In order to verify the consistency of the data notified by the Member States in 
relation to the expenditure or other information provided for in this Regulation, and 
to  ensure  compliance  with  the  obligation  to  notify  pursuant  to  Article  8,  the 
Commission shall adopt by delegated act in accordance with the procedure referred 
to in Article 42a the conditions governing the reduction and suspension of payment 
to  Member  States,  with  regard  to  expenditure  under  the  EAGF  and  the  EAFRD 
respectively.  

4. 
If  the  Union's  budget  has  not  been  adopted  by  the  beginning  of  the  financial 
year or if the total amount of the commitments scheduled exceeds the threshold laid 
down  in  Article  150(3)  of  Regulation  (EC,  Euratom)  No  1605/2002,  in  order  to 
enable the equitable distribution of the appropriations available between the Member 
States,  the  Commission  shall  adopt  by  delegated  act  in  accordance  with  the 
procedure referred to in Article 42a arrangements for the payment of the amounts. 

5. 
To avoid the application, by the Member States which do not form part of the 
euro zone, of different exchange rates in accounts of revenue received or aid paid to 
beneficiaries  in  a  currency  other  than  the  euro,  on  the  one  hand,  and  in  the 
establishment of the declaration of expenditure drawn up by the paying agency, on 
the  other,  the  Commission  may  adopt  by  delegated  act  in  accordance  with  the 
procedure  referred  to  in  Article  42a  rules  on  the  exchange  rate  applicable  when 
declarations  of  expenditure  are  drawn  up  and  public  storage  operations  recorded  in 
the accounts of the paying agency.  

In order to ensure transparent use of the EAGF and the EAFRD and uniform 
6. 
publication  by  the  Member  States  in  accordance  with  Article  44a,  the  Commission 

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shall adopt by delegated act in accordance with the procedure referred to in Article 
42a rules pertaining to: 

(a) 

the content and format of the information to be published;  

(b) 

the publication date and the information conditions for beneficiaries;  

the methods of communication and cooperation between the Commission and 

(c) 
the Member States.  

Article 40b 

Implementing powers 

The  Commission  may  adopt  by  implementing  act  in  accordance  with  the 

1. 
procedure referred to in Article 42d(2) (examination procedure) rules pertaining to: 

the  form,  content,  intervals,  deadlines  and  arrangements  for  transmitting  or 

a) 
making available to the Commission:  

(i) 

declarations  of  expenditure  and  estimates  of  expenditure  and  their  updates, 
including assigned revenue,  

(ii) 

the statement of assurance and annual accounts of the paying agencies, 

(iii) 

the account certification reports, 

(iv) 

the  names  and  particulars  of  accredited  paying  agencies,  accredited 
coordinating bodies and certification bodies, 

(v) 

arrangements  for  taking  account  of  and  paying  expenditure  financed  by  the 
EAGF and the EAFRD,  

(vi)  notifications  of  financial  adjustments  made  by  Member  States  in  connection 
with rural development operations or programmes, and summary reports on the 
recovery  procedures  undertaken  by  the  Member  States  in  response  to 
irregularities, 

(vii)  information on the measures taken pursuant to Article 9; 

(b) 
the arrangements governing exchanges of information and documents between 
the  Commission  and  the  Member  States,  and  the  implementation  of  information 
systems,  including  the  type,  format  and  content  of  data  to  be  processed  by  these 
systems and the corresponding data storage rules;  

(c) 
detailed rules on the financing and accounting of intervention measures in the 
form  of  public  storage,  and  other  expenditure  financed  by  the  EAGF  and  the 
EAFRD;  

the  terms  and  conditions  governing  the  implementation  of  the  automatic 

(d) 
decommitment procedure. 

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2. 
The  Commission  may  adopt  by  implementing  act  in  accordance  with  the 
procedure referred to in Article 42d(3) (advisory procedure) the terms and conditions 
applicable  to  appropriations  carried  over  in  accordance  with  Article 149(3)  of 
Regulation (EC, Euratom) No 1605/2002 in order to finance the expenditure referred 
to under Article 3(1)(c) of this Regulation.' 

(26)  Articles 41 and 42 are deleted. 

(27)  The following Articles 42a, 42b, 42c and 42d are inserted: 

'Article 42a 
Exercise of the delegation 

The powers to adopt the delegated acts referred to in this Regulation shall be 

1. 
conferred on the Commission for an indeterminate period of time. 

2.  As  soon  as  it  adopts  a  delegated  act,  the  Commission  shall  simultaneously 
notify the European Parliament and the Council that it has done so. 

The  power  to  adopt  delegated  acts  shall  be  conferred  on  the  Commission 

3. 
subject to the conditions laid down in Articles 42b and 42c.  

Article 42b 
Revocation of the delegation 

The delegation of power referred to in Article 42a may be revoked at any time 

1. 
by the European Parliament or by the Council. 

The institution which has initiated an internal procedure for deciding whether 
2. 
to revoke the delegation of power shall endeavour to inform the other institution and 
the  Commission  within  a  reasonable  period  of  time  before  taking  a  final  decision, 
indicating  the  delegated  powers  which  could  be  subject  to  revocation  and  possible 
reasons for such revocation. 

3. 
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.  

Article 42c  
Objections to delegated acts 

The European Parliament or the Council may object to a delegated act within a 
1. 
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  expiry  of  that  period,  neither  the  European  Parliament  nor  the  Council 
2. 
has objected to the delegated act it shall be published in the Official Journal of the 
European Union and shall enter into force on the date stated therein. 

The  delegated  act  may  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 

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the  Council  have  both  informed  the  Commission  of  their  intention  not  to  raise 
objections.  

3. 
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 42d 

Implementing acts - committee 

1. The Commission shall be assisted by the Committee on the Agricultural Funds. 

2.  When  implementing  acts  are  adopted  pursuant  to  this  paragraph,  Article  [5]  of 
Regulation  (EU)  No  [xxxx/yyyy]  (to  be  completed  following  the  adoption  of  the 
regulation  on  control  mechanisms,  as  referred  to  in  Article  291(3)  of  the  TFEU, 
currently  the  subject  of  discussion  by  the  European  Parliament  and  the  Council) 
shall apply.(examination procedure)  

3.  When  implementing  acts  are  adopted  pursuant  to  this  paragraph,  Article  [4]  of 
Regulation  (EU)  No  [xxxx/yyyy]  (to  be  completed  following  the  adoption  of  the 
regulation  on  control  mechanisms,  as  referred  to  in  Article  291(3)  of  the  TFEU, 
currently  the  subject  of  discussion  by  the  European  Parliament  and  the  Council) 
shall apply.(advisory procedure).'  

Regulations (EC) Nos 165/94 and 78/2008 are hereby repealed. 

Article 2 

However, Article 4 of Regulation (EC) No 78/2008 shall continue to apply until 31 December 
2013. 

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

Article 3 

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

Done at,  

For the European Parliament 
The President 

For the Council 
The President

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FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 05: agriculture and rural development 

Datasheet No 715147 
CM/tm/4.1.2010 

DATE: 30/9/2010 

APPROPRIATIONS: 
CA: EUR 57 780 400 000  
PA: EUR 56 776 900 000 

TITLE: 
Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) 
No 1290/2005 on the financing of the common agricultural policy 

LEGAL BASIS: 
Article 43 TFEU 
AIMS: 
Identify the delegated and implementing powers of the Commission in Council Regulation (EC) No 
1290/2005 and establish the corresponding procedure for the adoption of these acts (alignment of the 
regulation with the Treaty of Lisbon). 

1. 

2. 

3. 

4. 

5. 

FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 
(EUR million) 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE CHARGED TO 
- 
(REFUNDS/INTERVENTIONS) 
NATIONAL BUDGETS 
- 
OTHER 
- 

5.1  REVENUE 

OWN RESOURCES OF THE EC 

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

- 

- 

CURRENT 
FINANCIAL 
YEAR 
[2010] 
(EUR million) 
- 

FOLLOWING 
FINANCIAL 
YEAR 
[2011] 
(EUR million) 
- 

- 

- 

[2012] 
- 
- 

[2013] 
- 
- 

[2014] 
- 
- 

[2015] 
- 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 
6.0 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN 
THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1 

6.2 

6.3 

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS 
OF THE CURRENT BUDGET? 

WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

OUI NON 

OUI NON 

OUI NON 

OUI NON 

OBSERVATIONS: 
The objective of this proposal is to align the Council Regulation with the Treaty of Lisbon; it is therefore 
without impact on budgetary expenditure. 

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