Special Report No 10/2010 ‘Specific measures for agriculture in favour of the outermost regions of the Union and the smaller Aegean islands’
Date: 2011-01-08
Institutions: European Court of Auditors
Subjects: Aegean Sea, EU programme, agricultural product, aid to agriculture, common agricultural policy, island, single market, tax inspection

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Specific meaSureS for agriculture 
in favour of the outermoSt 
regionS of the union and the 
Smaller aegean iSlandS

en

 
 
 
 
Special report no 10 

 2010

Specific meaSureS 
for agriculture 
in favour of the 
outermoSt regionS 
of the union 
and the Smaller 
aegean iSlandS

(pursuant to article 287(4), second subparagraph, tfeu)

european court of auditorS

european court of auditorS 
12, rue alcide de gasperi
1615 luxembourg
luXemBourg

tel. +352 4398-1
fax +352 4398-46410
e-mail: euraud@eca.europa.eu
internet: http://www.eca.europa.eu

Special report no 10 

 2010

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luxembourg: publications office of the european union, 2010

iSBn 978-92-9207-950-5

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Printed in Luxembourg

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

contentS

3

Paragraph

Glossary

I–VIII	

summary

1–15	

1–4	

5	

6	

IntroductIon

the	hIstory	of	the	sPecIfIc	measures

the	reform	of	the	sPecIfIc	measures

the	nature	and	objectIVes	of	the	sPecIfIc	measures

7–8	

the	budGet	for	the	sPecIfIc	measures

9–15	

the	manaGement	and	control	system	for	the	sPecIfIc	measures

16–21	

audIt	scoPe	and	aPProach

22–79	

fIndInGs

23–41	

	are	the	suPPort	ProGrammes	drawn	uP	by	the	member	states	and	aPProVed	by	the	
commIssIon	desIGned	In	such	a	way	that	they	effectIVely	meet	sPecIfIc	needs?

26–36 

inconSiStent initial programming

37–41 

 the fleXiBility Sought from programme amendmentS iS not yet in evidence

42–74	

	haVe	the	measures	desIGned	by	the	member	states	sInce	the	2006	reform	been	
ImPlemented	effectIVely?

44–67 

the way Some meaSureS are deSigned makeS their implementation leSS effective

68–74 

the current control SyStemS are not Suited to the diverSe nature of the meaSureS

75–79	

76–79 

	are	the	suPPort	ProGrammes	drawn	uP	by	the	member	states	and	aPProVed	by	the	
commIssIon	monItored	In	an	effectIVe	way?

 the commiSSion could have monitored the performance of the Specific meaSureS on a more 
regular BaSiS

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80–84	

conclusIons	and	recommendatIons

80–81	

82–83	

84	

	are	the	suPPort	ProGrammes	drawn	uP	by	the	member	states	and	aPProVed	by	the	
commIssIon	desIGned	In	such	a	way	as	to	ProVIde	an	effectIVe	resPonse	to	sPecIfIc	
needs?

	haVe	the	measures	desIGned	by	the	member	states	sInce	the	2006	reform	been	
ImPlemented	effectIVely?

	are	the	suPPort	ProGrammes	drawn	uP	by	the	member	states	and	aPProVed	by	the	
commIssIon	monItored	In	an	effectIVe	way?

annex	I	 —	 budGetary	ImPlementatIon	of	the	sPecIfIc	measures
annex	II	 —	 lIst	of	audIted	measures

rePly	of	the	commIssIon

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

	
	
gloSSary

5

cmo: common market organisation

dG	agri: directorate-general for agriculture and rural development

eafrd: european agricultural fund for rural development

eaGf: european agricultural guarantee fund

GIs: geographical information system

Iacs: integrated administration and control system

mlaPs: measures to assist local agricultural products

PoseI: programme of options specific to the remote and insular nature of the outermost regions

PoseIcan: programme of options specific to the remote and insular nature of the canary islands

PoseIdom: programme of options specific to the remote and insular nature of the french overseas 
departments

PoseIma: programme of options specific to the remote and insular nature of madeira and the 
azores

ssas: special supply arrangements

uaa: useful agricultural area

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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Summary

I.
B e t w e e n   1 9 8 9   a n d   1 9 9 3 ,   t h e   c o u n c i l 
adopted specific measures for agr iculture 
i n   t h e   o u t e r m o s t   r e g i o n s   o f   t h e   e u r o -
p e a n   u n i o n   ( t h e   fre n c h   ove r s e a s   d e p a r t-
m e n t s ,   t h e   c a n a r y   i s l a n d s ,   t h e   a z o r e s 
a n d   m a d e i r a )   a n d   o n   t h e   s m a l l e r   g r e e k 
i s l a n d s   o f   t h e   a e g e a n   i n   o r d e r   t o   d e a l 
with the par ticular situation facing these 
regions.

II.
t h e   p r o g r a m m e s   f o r   t h e   o u t e r m o s t 
r e g i o n s   a n d   t h e   a e g e a n   i s l a n d s   u s e 
t w o   d i f f e r e n t   i n s t r u m e n t s   t o   m e e t   t h e 
r e g i o n s ’  s p e c i f i c   n e e d s .   S p e c i f i c   s u p p l y 
arrangements (SSas) are a system of com-
p e n s a t i o n   f o r   t h e   h i g h e r   c o s t s   c a u s e d 
b y   t h e   i n s u l a r i t y   a n d   r e m o t e n e s s   o f   t h e 
r e g i o n s   c o n c e r n e d .   m e a s u r e s   t o   a s s i s t 
l o c a l   a g r i c u l t u r a l   p r o d u c t s   ( m l a ps )   a r e 
a i m e d   a t   d e v e l o p i n g   l o c a l   a g r i c u l t u r a l 
produc tion and the supply of agr icultural 
produc ts.

III.
i n   2 0 0 6 ,   t h e   s p e c i f i c   m e a s u r e s   w e r e 
r e f o r m e d .   t h e   c o m m i s s i o n   c o n c l u d e d 
t h a t   m a n a g e m e n t   o f   t h e   s y s t e m   w a s   t o o 
r i g i d ,   a n d   t h u s   l i m i t e d   t h e   a b i l i t y   o f   e u 
a c t i o n   t o   p r o v i d e   a   t i m e l y   r e s p o n s e   t o 
t h e   n e e d s   o f   t h e   o u t e r m o s t   r e g i o n s   i n 
a   m a n n e r   s u i t e d   t o   t h e i r   s p e c i f i c   p r o b -
l e m s .   a s   a   r e s u l t ,   t h e   n e w   a p p r o a c h   h a s 
g i v e n   p r i o r i t y   t o   g r e a t e r   r e g i o n a l   p a r -
t i c i p a t i o n ,   d e c e n t r a l i s a t i o n   a n d   f l e x -
i b l e   d e c i s i o n - m a k i n g ,   o n   t h e   b a s i s   o f 
p r o g r a m m e s   p r e s e n t e d   b y   t h e   m e m b e r 
States for approval by th e  commiss ion .

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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Summary

VII.
a s   r e g a r d s   t h e   p r o g r a m m e s ’  i m p l e -
m e n t a t i o n ,   t h e   c o u r t   i d e n t i f i e d   m e a s -
u r e s   o r   a c t i o n s   w h i c h   a r e   l i k e l y   t o   b e   a t 
b e s t   p a r t l y   e f f e c t i v e   a s   a   r e s u l t   o f   t h e i r 
d e s i g n .   i n   a d d i t i o n ,   t h e   e x i s t i n g   c o n t ro l 
s ys te m s   i n   t h e   m e m b e r   St ate s   co n ce r n e d 
a r e   n o t   a l w a y s   s u i t e d   t o   t h e   d i v e r s e 
n ature of th e spec ific  measures.

VIII.
t h e   c o m m i s s i o n   d o e s   n o t   m o n i t o r   t h e 
e f f e c t i v e n e s s   o f   t h e   s p e c i f i c   m e a s u r e s 
r e g u l a r l y   e n o u g h ;   i t   m a i n l y   c o n f i n e s 
i t s e l f   t o   e v a l u a t i n g   t h e   m e a s u r e s   o v e r 
a five -year per iod. the annual implemen-
t a t i o n   r e p o r t s   p r o v i d e d   b y   t h e   m e m b e r 
S t a t e s   a r e   n o t   h a r m o n i s e d   e n o u g h   t o 
c o n s t i t u t e   a   m a n a g e m e n t   i n f o r m a t i o n 
system for  t he commiss ion .

IV.
g i v e n   t h e   o b j e c t i v e s   o f   t h e   r e f o r m ,   t h e 
c o u r t ’s   a u d i t   s e t   o u t   t o   a n s w e r   t h e   f o l -
lowing  que stio ns :

(a )  are the suppor t programmes drawn up 
b y   t h e   m e m b e r   S t a t e s   a n d   a p p r o v e d 
b y   t h e   c o m m i s s i o n   d e s i g n e d   i n   s u c h 
a   w a y   a s   t o   p r o v i d e   a n   e f f e c t i v e   r e -
spo ns e to  spe cific  needs ?

(b)  h a v e   t h e   m e a s u r e s   d e s i g n e d   b y   t h e 
m e m b e r   St ate s   s i n ce   t h e   2 0 0 6   re fo r m 
been  imp leme nted effec tivel y?

(c)  are the suppor t programmes drawn up 
b y   t h e   m e m b e r   S t a t e s   a n d   a p p r o v e d 
b y   t h e   c o m m i s s i o n   m o n i t o r e d   i n   a n 
effe c tive  way ?

V.
i n   g e n e r a l ,   t h e   c o u r t   n o t e d   t h a t   t h e 
s p e c i f i c   m e a s u r e s   w e r e   e f f e c t i v e   a n d 
e x t r e m e l y   i m p o r t a n t   f o r   a g r i c u l t u r e   i n 
t h e   r e g i o n s   c o n c e r n e d .   h o w e v e r,   t h e 
co u r t   i d e nt i f i e d   a   n u m b e r   o f   we a k n e s s e s 
i n   t h e   m a n a g e m e nt   o f   t h e   a r ra n g e m e nt s 
which could still lead to improvements in 
the  sp ec ific meas ures.

V I.
d u r i n g   t h e   p r o g r a m m i n g   a n d   a p p r o v a l 
p h a s e   o f   t h e   p ro g r a m m e s,   o ve r   a   p e r i o d 
o f   o n l y   s i x   m o nt h s,   t h e  co m m i s s i o n   g ave 
p r i o r i t y   t o   i t s   r o l e   o f   m o n i t o r i n g   t h e 
c o m p l i a n c e   a n d   c o n s i s t e n c y   o f   t h e   p r o -
grammes rather than assuming its task as 
a   m a n a g e r   a n d   t h u s   a c t i v e l y   c o n t r i b u t -
i n g   t o   t h e   p r o g r a m m e s ’  d e s i g n   s o   a s   t o 
e n s u r e   t h e y   w e r e   e f fe c t i v e .   t h i s   f i n d i n g 
a l s o   a p p l i e s   t o   t h e   p r o c e d u r e   f o r   m o d i -
f y i n g   t h e   p r o g r a m m e s   f o r   s u b s e q u e n t 
years.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

1  commission communication 
com(2008) 642 final.

introduction

8

t h e 	 h I s to r y 	 o f 	t h e 	 s P e c I f I c 	 m e a s u r e s

1.	

 a r t i c l e   3 4 9   o f   t h e  tre a t y   o n   t h e   fu n c t i o n i n g   o f   t h e   eu ro p e a n 
u n i o n   s t i p u l a t e s   t h a t  ‘ t a k i n g   a c c o u n t   o f   t h e   s t r u c t u r a l   s o c i a l 
a n d   e c o n o m i c   s i t u a t i o n   o f   g u a d e l o u p e,   fr e n c h   g u i a n a ,   m a r -
t i n i q u e,   r é u n i o n ,   S a i nt- B a r t h é l e my,   S a i nt- m a r t i n ,   t h e   a zo re s, 
madeira and the canar y islands, which is compounded by their 
remoteness, insularit y, small size, difficult topography and cli-
m a t e ,   e c o n o m i c   d e p e n d e n c e   o n   a   f e w   p r o d u c t s ,   t h e   p e r m a -
nence and combination of which severely restrain their devel -
opm ent,  t he  co unc il,  o n  a  p roposal  from  th e  commiss ion   a nd 
af ter consulting the european par liament, shall adopt specific 
measures aimed, in par ticular, at laying down the conditions of 
application of the treaties to those regions, including common 
pol icies’.

2.	

 on the basis of this provision, the commission developed a strat-
egy for the outer most regions 1, consisting of three objec tives: 

(a )  red ucin g t he access ibil it y  de fic it ; 

(b)   inc reasing  co mp etitiveness ; 

(c)  st ren gt hening region al  integrati on. 

 the main tools for achieving these objectives are the Structural 
fund s  and  b ot h  agr ic u l tural   fun ds  ( th e   europe an  agr ic ult ural 
g u a r a n t e e   fu n d   ( e a g f )   a n d   t h e   e u r o p e a n   a g r i c u l t u r a l   fu n d 
fo r   r u ra l   d e ve l o p m e nt   ( e a f r d) ) ,   i n c l u d i n g   a   s p e c i f i c   a gr i c u l-
tural programme for the outer most regions k nown as the ‘ pro -
gr a m m e   o f   o p t i o n s   s p e c i f i c   to   t h e   re m o t e   a n d   i n s u l a r   n a t u re 
of t he o u ter mo st regions’ ( poS e i) . 

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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3.	

4.	

 i n   1 9 8 9 ,   t h e   co u n c i l   a d o p te d   t h e  ‘pro gra m m e   o f   o p t i o n s   s p e -
c i f i c   to   t h e   re m o te   a n d   i n s u l a r   n at u re   o f   t h e   fre n c h   o ve r s e a s 
d e p a r t m e n t s ’  ( p o S e i d o m ) 2.   i n   J u n e   1 9 9 1 ,   t w o   s i m i l a r   p r o -
g r a m m e s   w e r e   a d o p t e d :   p o S e i m a   ( t h e   a z o r e s   a n d   m a d e i r a ) 3 
and  po Sei c a n (t he canar y isl a nds ) 4. 

 Similar programmes were drawn up for greece in 1993 5. as the 
smaller aegean islands are not recognised in the treat y as out-
er mo st  regio ns, th is s cheme is h an dle d se parate ly from  p oS e i 
i n   l e g a l   t e r m s   b u t   c o m e s   u n d e r   t h e   s a m e   b u d g e t   h e a d i n g s . 
the  inte r ve nt io n logic retains  t he sam e st r uc ture  for  both  t h e 
poSei  and the smaller aegean island schemes and is managed 
by the same unit at the commission. as a result, this repor t con-
s i d e r s   b o t h   s c h e m e s   t o g e t h e r   a n d   r e f e r s   t o   t h e m   a s   ‘ t h e 
spe cific me asure s’.

9

2  council decision 89/687/eec 
of 22 december 1989, setting up 

a programme of options specific 

to the remote and insular nature of 

the french overseas departments 

(poseidom) (oJ l 399, 30.12.1989, 

p. 39).

3  council decision 91/315/eec 
of 26 June 1991, setting up 

a programme of options specific 

to the remote and insular nature of 

madeira and the azores (poseima) 

(oJ l 171, 29.6.1991, p. 10).

4  council decision 91/314/eec 
of 26 June 1991, setting up 

a programme of options specific to 

the remote and insular nature of the 

canary islands (poseican) (oJ l 171, 

29.6.1991, p. 5).

5  council regulation (eec) 
no 2019/93 of 19 July 1993, 

introducing specific measures 

for the smaller aegean islands 

concerning certain agricultural 

products (oJ l 184, 27.7.1993, p. 1).

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t h e 	 r e f o r m 	 o f 	t h e 	 s P e c I f I c 	 m e a s u r e s

5.	

 i n   2 0 0 6 ,   t h e   p o S e i   a r r a n g e m e n t s   a n d   t h e   s p e c i f i c   m e a s u r e s 
fo r   t h e   s m a l l e r   ae g e a n   i s l a n d s   we re   re fo r m e d 6.  t h e   co m m i s -
sion con clu ded that management  of  t he  syste m wa s  too r i gid, 
and  t hu s limited t he cap ac it y of  e u ac tion to provide a tim ely 
re s p o n s e   t o   t h e   n e e d s   o f   t h e   o u t e r m o s t   re g i o n s   i n   a   m a n n e r 
suited to their specific problems. the reform therefore involved 
a   s h i f t   f ro m   m i c ro m a n a g e m e n t   o f   t h e   m e a s u r e s   b y   t h e   co m -
mis sio n towa rds  greater regiona l par ti c ipat ion ,  an d to de ce n-
t r a l i s a t i o n   a n d   f l e x i b i l i t y   i n   d e c i s i o n - m a k i n g,   o n   t h e   b a s i s   o f 
pro gra mmes   p resented   by  m e mber  States  fo r  approval  by   th e 
com mis sio n (se e B ox  1  for th e rat ion ale an d objec tives of  th e 
refor m).

6  council regulation (ec) 
no 247/2006 of 30 January 2006 

laying down specific measures for 

agriculture in the outermost regions 

of the union (oJ l 42, 14.2.2006, 

p. 1) and council regulation (ec) 

no 1405/2006 of 18 September 2006 

laying down specific measures for 

agriculture in favour of the smaller 

aegean islands and amending 

regulation (ec) no 1782/2003 

(oJ l 265, 26.9.2006, p. 1).

b o x 	 1

e x t r ac t 	 f r o m 	t h e 	 e x P l a n ato r y 	 m e m o r a n d u m 	to 	t h e	
P r o P o s a l 	 f o r 	t h e 	 co u n c I l 	 r e G u l at I o n 	 l ay I n G 	 d o w n	
s P e c I f I c   m e a s u r e s 	 f o r 	 aG r I c u lt u r e 	 I n 	t h e 	 o u t e r m o s t	
r e G I o n s 	 o f 	t h e 	 e u r o P e a n 	 u n I o n

‘on the other hand, the administration of these arrangements leaves something to be desired; the 
management of the two strands of the poSei7 schemes, i.e. the specific supply arrangements and sup-
port for local lines of production in the outermost regions, has proved somewhat inflexible. adapting 
the supply balances to take account of even small fluctuations in demand requires the commission to 
adopt legislation.

the arrangements for supporting local lines of production are, moreover, fragmented into 56 (micro-)
measures established by council regulations. it is not possible to adjust these measures without an 
interinstitutional legislative procedure, which slows down community action and hampers attempts 
to react as quickly as possible to specific situations in the outermost regions, even though often only 
modest sums are involved.

that is why it is proposed to change the philosophy behind the way assistance is provided for these 
regions: by encouraging participation in decision-making and speeding up the response to their specific 
needs.’

7  See paragraph 6.

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t h e 	 n at u r e 	 a n d 	 o b j e c t I V e s 	 o f 	t h e 	 s P e c I f I c	
m e a s u r e s

6.	

 t h e   p r o g r a m m e s   f o r   t h e   o u t e r m o s t   r e g i o n s   a n d   t h e   a e g e a n 
islands use t wo different instruments to meet the regions’ spe -
cifi c ne eds: 

(a)  the  sp ecific  sup pl y  ar rangements  (S S as) , wh ich  are a sys -
tem of compensation for the higher costs ar ising from the 
insularity and remoteness of the regions concerned. this is 
achieved through exemption from customs duties for prod-
uc ts impor ted from non-member countries, or by means of 
aid fo r t he de liver y  o f p roduc ts  of e u or igin,  with eq uiva-
l ent co ndit io ns for final  users ;

(b)   the measures to assist local agricultural produc ts (mlaps), 
which aim to develop local agricultural produc tion and the 
supply of agricultural produc ts. mlaps involve a multitude 
of products and measures related to production, marketing 
o r  p roce ssing. the y  u se  a  wide  range  of   inst rum ents   s uc h 
a s   a r e a   a i d ,   a n i m a l   p r e m i u m s ,   p a y m e n t s   t o   p r o d u c e r   o r -
ganisations, tonnage aid, the financing of marketing stud-
ies,  and   so   o n.  whil e  al l   t he se  measure s  contr ibute   to  t h e 
ove r a l l   o b j e c t i ve   o f   i n c re a s i n g   l o c a l   a g r i c u l t u r a l   p ro d u c -
tion and mak ing producers more competitive, it should be 
noted that the individual objectives of each measure as de -
fined in the programmes may differ considerably. examples 
of measures and ac tions from the var ious programmes are 
se t o u t  in B ox   2.

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b o x 	 2

e x a m P l e s 	 o f 	 m e a s u r e s 	 a n d 	 ac t I o n s 	 f r o m 	t h e 	Va r I o u s	
P r o G r a m m e s

the following measures and actions which were selected for the court’s audit provide an overview of 
the diverse nature of the programmes:

france	(overseas	departments)

	ο aid for banana producers;

	ο Sugar cane-sugar-rum sector (with measures such as flat-rate aid for the french overseas depart-
ments’ sugar industry to adjust to the common market organisation (cmo), and aid for transporting 
sugar cane); 

	ο Structuring of the livestock sector (with measures such as aid for special processing in the beef sec-

tor or specific aid for managing the local market in the pork sector).

spain	(canary	Islands)

	ο aid for the beef, sheep and goat meat sectors in the form of direct payments to producers;

	ο aid for banana producers.

Portugal	(azores)

	ο aid for animal production (with measures such as direct aid for beef production or aid for innovation 

and the quality of animal products);

	ο aid for plant production (with measures such as aid for traditional crop production, or aid for the 

production of fruit and vegetables, cut flowers and ornamental plants).

Greece	(island	of	chios)

	ο aid for olive groves;

	ο aid for mastic production;

	ο aid for honey production.

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t h e 	 b u d G e t 	 f o r 	t h e 	 s P e c I f I c 	 m e a s u r e s

7.	

 the  s pe cific   me asures   were  allocate d  3 3 2  mi ll ion   e uro  fo r   t he 
financ ial year  2 00 7 and 618 milli on euro for  t h e fi n an c ial  ye ar 
2008 (excluding allocations for measures in previous years), the 
y e a r s   c o v e r e d   b y   t h e   a u d i t .  t h e   i n c r e a s e   i n   t h e   2 0 0 8   b u d g e t 
over previous years is due to the transfer of funds following the 
reform of the banana cmo as from 1 Januar y 2007, correspond -
ing to the financial year 2008. this reform occurred because of 
the new eu arrangements for banana impor ts and international 
t ra d e   n e g o t i at i o n s.  th e   i nte nt i o n   wa s   t h at   t h e   s ys te m   s h o u l d 
reflec t the major principles of the refor ms car r ied out in other 
a g r i c u l t u r a l   s e c t o r s ,   w h i l e   g u a r a n t e e i n g   a   d e c e n t   s t a n d a r d 
o f   l i v i n g   fo r   e u   b a n a n a   p ro d u c e r s   a n d   t a k i n g   a c c o u n t   o f   t h e 
spe cial   feat ures   of   the  pro du c in g   re gion s.  th e  budget  for  t he 
p o S e i   s c h e m e   wa s   i n c re a s e d   by   2 7 8 , 8   m i l l i o n   e u ro   to   i n c l u d e 
all the eu aid for banana producers in the programmes as from 
1 Januar y 2007. details of budgetar y implementation are given 
in A n nex  I.

8.	

 th e   b u d g e t   fo r   t h e   s p e c i f i c   m e a s u re s   i s   c a p p e d   a n d   t h e   c a p s 
were  se t as fo llows (in  mill io n  euro) :

300

250

200

150

100

50

0

2007

2008

2009

2010

Aegean islands

Azores and Madeira

Canary Islands

French ODs

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8  article 12 of council 
regulation (ec) no 247/2006 

of 30 January 2006.

9.	

10.  

11.  

12.  

t h e 	 m a n aG e m e n t 	 a n d 	 co n t r o l 	 s ys t e m 	 f o r	
t h e 	 s P e c I f I c 	 m e a s u r e s

 u n d e r   t h e   e u r o p e a n   a g r i c u l t u r a l   g u a r a n t e e   fu n d   b u d g e t , 
t h e   i m p l e m e n t a t i o n   o f   t h e   s p e c i f i c   m e a s u re s   i s   u n d e r   s h a re d 
management arrangements. with the move to greater regional 
p a r t i c i p a t i o n ,   d e c e n t r a l i s a t i o n   a n d   f l e x i b l e   d e c i s i o n - m a k i n g 
a s   a   re s u l t   o f   t h e   2 0 0 6   re fo r m s,   a   b o t t o m - u p   a p p ro a c h   i s   a p -
p l i e d   t o   p r o g r a m m i n g   a n d   i m p l e m e n t a t i o n .   t h i s   m e a n s   t h a t 
the needs of the outermost regions, and the measures to meet 
those needs, are identified at the level deemed most appropri-
ate by t he m em be r St ates.  the  m ember  State s are respon sible 
for developing, implementing and monitoring the programmes. 

 the  co mmis sio n is res p onsib l e for mak ing  pro pos a ls for  basi c 
regulations and for drafting rules for implementing the various 
provisions of council regulations. i t approves the programmes 
submitted by the member States and related amendments, and 
monito rs imp lementation.

 in order to identify the specific needs of the outermost regions, 
t h e   m e m b e r   S t a t e s   w e r e   r e q u i r e d   t o   p r o d u c e   a n   e c o n o m i c 
a n a l y s i s   a n d   a n   e v a l u a t i o n   o f   t h e   p r e v i o u s   m e a s u r e s ,   t o   s e t 
strategic and operational objec tives and to design measures to 
meet those objec tives. all these elements were to be included 
in the  p rogra mmes, tog ether  wi th  pe r for man ce  in d ic ator s 8.

 t h e   p r o g r a m m e s   w e r e   s u b m i t t e d   t o   t h e   c o m m i s s i o n   f o r   a p -
p r o v a l .  t h e   c o m m i s s i o n   e v a l u a t e d   t h e   p r o g r a m m e s’  c o n s i s t -
enc y w it h o the r eu p o lic ies and ac t ions, and th eir  com plian ce 
wi th  eu l aw. 

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9 

‘evaluation of the measures 

implemented to support the 

outermost regions (poSei) and 

smaller aegean islands as part of 

the common agricultural policy’, 

oréade-Brèche consultancy, 

november 2009, executive summary 

(see http://ec.europa.eu/agriculture/

eval/reports/posei/index_fr.htm).

13.  

14.  

15.  

 i n   t h e i r   p r o g r a m m e s ,   t h e   m e m b e r   S t a t e s   d e s i g n a t e d   t h e   a u -
th o r it ies  res po nsib l e  fo r  mana geme nt  a nd  mo ni to r i ng. d esig -
n a t e d   p ay i n g   a g e n c i e s   a re   re s p o n s i b l e   fo r   i m p l e m e n t i n g   t h e 
pro gra mmes  and for  dealing  wit h  s uper vi s ion  a nd mon itor in g 
t a s k s ,   e i t h e r   d i r e c t l y   o r   b y   d e l e g a t i n g   a l l   o r   p a r t   o f   t h e m   t o 
ot h er b od ie s.

 the legislative requirements concer ning the management and 
contro l  system for the s p ecific  m eas ures  are  e ss ent ially  bas e d 
on the ‘integrated administration and control system’ (iacS) for 
e ag f   d i re c t   p ay m e nt s.   al l   a i d   a p p l i c at i o n s   a re   t h e re fo re   s u b -
j e c t   to   a d m i n i s t rat i ve   c h e c k s   a n d   a   5   %   s a m p l e   i s   c h e c k e d   o n 
the spot. for cer tain measures where aid is linked to deliveries 
of p ro duc ts  wit h a view  to their  bei ng  proce s s ed  or  m ar ke te d, 
p r o v i s i o n   i s   m a d e   fo r   o t h e r   c h e c k s   ( e . g.   w e i g h i n g,   t r a n s p o r t 
a n d   d e l i ve r y ) .   i n   t h e   c a s e   o f   t h e   S Sas,   t h e   m e m b e r   S t ate s   a re 
r e q u i r e d   t o   c h e c k   w h e t h e r   t h e   e c o n o m i c   a d v a n t a g e   d e r i v e d 
f ro m   t h e   a i d   fo r   c u s to m s - d u t y   i nt ro d u c t i o n   o r   exe m p t i o n   h a s 
ac t ual l y  b ee n p ass ed on to final be ne f ic i ar i es.

 n o   l a t e r   t h a n   3 1   d e c e m b e r   2 0 0 9 ,   a n d   e ve r y   f i ve   ye a r s   t h e re -
a f t e r,   t h e   c o m m i s s i o n   m u s t   s u b m i t   a   g e n e r a l   r e p o r t   t o   t h e 
e u ro p e a n   pa r l i a m e n t   a n d   t h e   co u n c i l   s h o w i n g   t h e   i m p a c t   o f 
t h e   a c t i o n   t a k e n   u n d e r   t h e   s p e c i f i c   m e a s u r e s,   t o g e t h e r   w i t h 
a n y   a p p r o p r i a t e   p r o p o s a l s .   t h e   p r e s e n t a t i o n   o f   t h i s   r e p o r t 
was postponed, with adoption being scheduled for S eptember 
2 0 1 0 .   w h e n   p r e p a r i n g   t h e   r e p o r t ,   t h e   c o m m i s s i o n   a l s o   t o o k 
acco u nt   of   th e  eval uat ion   o f  th e  s pe ci fi c   me as ure s  wh i ch  was 
required under the direc torate - general for agriculture and ru-
ra l   d e ve l o p m e n t ’s   e v a l u a t i o n   p ro gr a m m e   fo r   2 0 0 8 9.  th e   co n -
sultant s su bmit ted their rep o r t in  n ovember  2 0 09.

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audit Scope and approach

16

16.  

 the objective of the audit was to evaluate the effectiveness and 
cer t ain  asp ec ts  o f  eco no my  o f  t he   s pe ci fi c   m ea sures   af ter   t he 
2006 refor m. the emphasis was on the design of the measures 
and management procedures from the perspec tive of their ef-
fe c t i ve n e s s.   a s   t h e   re fo r m   t o o k   e f fe c t   o n l y   a   s h o r t   t i m e   a g o, 
only an evaluation of effec tiveness trends was possible rather 
than  a l on g-te r m eval u atio n.

17.  

 the  qu es tio ns  raised in t his repor t  are  th e  follow in g :

(a)  a r e   t h e   s u p p o r t   p r o g r a m m e s   d r a w n   u p   b y   t h e   m e m b e r 
St ates and app roved by t he commiss ion  de signe d in suc h 
a way as to provide an effective response to specific needs?

(b)   h ave   t h e   m e a s u re s   d e s i gn e d   by   t h e   m e m b e r   S t ate s   s i n ce 

t he 20 06 re fo r m  b een imple me nte d  effe c ti ve ly ?

(c)  a r e   t h e   s u p p o r t   p r o g r a m m e s   d r a w n   u p   b y   t h e   m e m b e r 
S t ate s   a n d   a p p rove d   by   t h e   co m m i s s i o n   m o n i to re d   i n   a n 
ef fec tive way?

18.  

19.  

 th e   a u d i t   cove r s   t h e   f i n a n c i a l   ye a r s   c l o s e d   s i n c e   t h e   s p e c i f i c 
mea su res were refor med  (2007 ,  2 0 0 8   and  2 0 0 9 ) .

 t h e   a u d i t   w a s   c a r r i e d   o u t   i n   t h e   f o u r   m e m b e r   S t a t e s   c o n -
ce r n e d   (g re e ce,   S p a i n ,   fr a n c e   a n d   po r t u g a l ) .  th e   re g i o n s   a u -
dited on the spot were the island of chios (greece), the canar y 
i s l a n d s   ( S p a i n ) ,   r é u n i o n   ( fr a n c e )   a n d   t h e   a z o r e s   ( po r t u g a l ) . 
fo r   m e a s u re s   i n   o t h e r   re gi o n s,   t h e   a u d i t   w a s   co n f i n e d   to   t h e 
cent ral  l eve l adm inistrat ion of  e ac h  m ember  State.

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20.  

 t h e   a u d i t   c o v e r e d   a   s e l e c t i o n   o f   m l a ps ,   d e p e n d i n g   o n   t h e i r 
f i n a n c i a l   s i z e   a n d   s i g n i f i c a n c e   fo r   a g r i c u l t u r e   i n   t h e   r e g i o n s 
concerned (see A nnex II). mlaps were given priorit y over SSas 
for t he  fo l lowing reaso ns :

(a)  mlaps accounted for 67 % of total allocations for the spe -
cific measures in 2007 a figure that will rise to around 82 % 
in 20 09. 

(b)   S S a s   a r e   d e s i g n e d   t o   c o m p e n s a t e   d i r e c t l y   f o r   t h e   d r a w-
b a c k s   o f   r e m o t e n e s s   a n d   i n s u l a r i t y.   m l a ps   m u s t ,   o n   t h e 
o t h e r   h a n d ,   b e   b a s e d   o n   a   t h o r o u g h   a n a l y s i s   o f   s p e c i f i c 
ne eds in o rder to b e effec tive.  i n  add ition, the ir complex-
i t y,   d i ve r s e   n at u re   a n d   a   l a c k   o f   s p e c i f i c   co m m o n   co nt ro l 
ru le s m ay  inc rease the r is k s in h ere nt in  t h e  mea s ure s.

(c)  the council has shown the impor tance of this type of meas-

u re vis- à-vis t he  S S as by placin g an  80  % c ap on   m laps. 

(d)  SSas are subjec t to a specific control mechanism to ensure 
t heir ef fec t ive ness.  the a udit in cluded a limite d revie w of 
t his m echa nism. 

21.  

 t h e   a u d i t   c o v e r e d   t h e   m a n a g e m e n t   a n d   m o n i t o r i n g   o f   p r o -
g r a m m e s   a t   t h e   c o m m i s s i o n   a n d   i n   t h e   m e m b e r   S t a t e s   c o n -
c e r n e d.  t h e   a u d i t   wo r k   i n c l u d e d   a n   a n a l y s i s   o f   t h e   p ro g r a m-
m i n g   p h a s e   a n d   o f   t h e   way   t h e   p ro gra m m e   m a n a g e m e nt   a n d 
m o n i t o r i n g   s y s t e m s   w e r e   d o c u m e n t e d .   t h e   a u d i t o r s   c a r r i e d 
out on-the -spot inter views with beneficiar ies and representa -
t i ve s   o f   p ro d u ce r   a s s o c i at i o n s   i n   o rd e r   to   o b t a i n   i n fo r m at i o n 
about their involvement in the programmes, their exper iences 
and the results obtained. the audit criteria and procedures are 
expl ain ed in de t ail  b elow for each  a udi t  que s tio n.

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findingS

18

22.  

 the  dis advant ag es s uffered by th e  oute r m ost  re gion s a n d t he 
smaller aegean islands are permanent and cannot be overcome 
completely but can only be mitigated by the specific measures. 
this is illustrated by the size of the aid from the specific meas -
u re s   w h e n   co n s i d e re d   a s   a   p ro p o r t i o n   o f   t h e   i n co m e   o f   s o m e 
a g r i c u l t u r a l   p r o d u c e r s   i n   t h e   o u t e r m o s t   r e g i o n s   ( s e e   B ox   3 ) . 
the aim of this repor t is not therefore to question the value of 
th e sp ecific  measu res b ut  to  he lp i mprove th e  way  t h ey  wor k .

b o x 	 3

a I d 	 f r o m 	t h e 	 s P e c I f I c 	 m e a s u r e s 	 a s 	 a 	 P r o P o r t I o n 	 o f	
t h e 	 I n co m e 	 o f 	 c e r ta I n 	 aG r I c u lt u r a l 	 P r o d u c e r s 	 I n 	t h e	
o u t e r m o s t 	 r e G I o n s

for an average sugar cane producer on reunion, for example, poSei aid in 2009 accounted for 38 % of 
turnover (source: ‘cahier technique de la canne n° 15’, august 2008);

for a standard beef farm on reunion, for example, poSei aid in 2007 accounted for 25 % of turnover 
(source: 2007 implementation report on poSei iv for the ‘Structuring livestock farming’ measure on 
réunion);

for honey producers on the greek island of chios, for example, aid from the specific measures accounted 
for between 55 % and 70 % of beekeeping income in 2007 (source: court of auditors).

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a r e 	t h e 	 s u P P o r t 	 P r o G r a m m e s 	 d r aw n 	 u P 	 by	
t h e 	 m e m b e r 	 s tat e s 	 a n d 	 a P P r o V e d 	 by 	t h e	
co m m I s s I o n 	 d e s I G n e d 	 I n 	 s u c h 	 a 	way 	t h at	
t h e y 	 e f f e c t I V e ly 	 m e e t 	 s P e c I f I c 	 n e e d s ?

23.  

 t h e   a u d i t   c r i t e r i a   fo r   a n s we r i n g   t h i s   q u e s t i o n   we re   l i n k e d   t o 
t h e   o b j e c t i ve s   o f   t h e   2 0 0 6   re fo r m ,   i n   p a r t i c u l a r  ‘e n c o u r a gi n g 
par ticipation in decision-mak ing and speeding up the response 
t o   t h e i r   s p e c i f i c   n e e d s’.  t h i s   f l e x i b i l i t y   s h o u l d   b e   e n s u re d   b y 
a   p r o g r a m m i n g   p r o c e d u r e   a t   t h e   m e m b e r   S t a t e   l e v e l   r a t h e r 
th an  dire c t   ma nagement  of  the   m eas ure s   by  th e  commiss ion. 
in order to identify the specific needs of the outermost regions, 
t h e   m e m b e r   S t a t e s   w e r e   r e q u i r e d   t o   p r o d u c e   a n   e c o n o m i c 
an al ys is a nd e val uat ion  of  p revious m eas ures,  to se t s t rate gic 
a n d   o p e r a t i o n a l   o b j e c t i v e s ,   a n d   t o   d e s i g n   m e a s u r e s   t o   m e e t 
those objec tives. all these elements were to be included in the 
programmes, together with per formance indicators (see Box 4).

24.  

 as a result, the following criteria were used to answer this audit 
que st ion:

(a )  t he existe nce o f methods   to e ncourage   par t ic ipat io n;

(b)   t h e   e x i s t e n c e   o f   a l l   t h e   p r o g r a m m i n g   e l e m e n t s   r e q u i r e d 

by  th e reg ul at ion s;

(c)  consistenc y between the various elements, par ticularly be -
t ween the analysis of agricultural produc tion, the strategy 
p ro po s ed and t he measu res env isa g ed ;

(d)  fl exibil it y e nab l ing  s wif t  adapt ati on  o f t he   me as ure s.

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b o x 	 4

a r t I c l e 	12	 o f 	 co u n c I l 	 r e G u l at I o n 	 ( e c ) 	 n o 	 2 47 /20 06 	 o f	
30	 j a n ua r y 	2006	 l ay I n G 	 d o w n 	 s P e c I f I c 	 m e a s u r e s 	 f o r	
aG r I c u lt u r e 	 I n 	t h e 	 o u t e r m o s t 	 r e G I o n s 	 o f 	t h e 	 u n I o n

contents of the eu support programmes

an eu support programme shall contain:

(a)  a quantified description of the current agricultural production situation taking into account the re-
sults of available evaluations, showing disparities, gaps and potential for development, the financial 
resources deployed and the main results of operations undertaken under council regulations (ec) 
no 1452/2001, (ec) no 1453/2001 and (ec) no 1454/2001;

(b) a description of the strategy proposed, the priorities selected, its quantified objectives, and an ap-
praisal showing the expected economic, environmental and social impact, including employment 
effects;

(c)  a description of the measures contemplated, and in particular aid schemes for implementing the pro-
gramme, and, where appropriate, information on the needs for any studies, demonstration projects, 
training or technical assistance operations relating to the preparation, implementation or adaptation 
of the measures concerned;

(d) a schedule for the implementation of the measures and a general indicative financing table showing 

the resources to be deployed;

(e)  proof of the compatibility and consistency between the various measures under the programmes 

and the criteria and quantitative indicators to be used for monitoring and evaluation;

(f )  the steps taken to ensure the programmes are implemented effectively and appropriately, including 
the arrangements for publicity, monitoring and evaluation, and a specified set of quantified indica-
tors for use in programme evaluation and the arrangements for checks and penalties;

(g) the designation of competent authorities and bodies responsible for implementing the programme 
and the designation at the appropriate levels of authorities or associated bodies and socioeconomic 
partners, and the results of consultations held.

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25.  

 th e   co u r t   ex a m i n e d   t h e   m e m b e r   St ate s’  p ro gra m m i n g   p ro ce -
dure and the phase of approval by the commission. i t analysed 
the process for identifying the needs of the outermost regions, 
h o w   p r o g r a m m e   o b j e c t i v e s   w e r e   s e t ,   a n d   t h e   m e a s u r e s   a n d 
ac tions developed within the programmes. the documents an-
alysed in this contex t included evaluation repor ts and studies, 
a n d   re c o rd s   o f   co n s u l t a t i o n s   b e t we e n   t h e   v a r i o u s   p a r t i e s   i n -
volved in the bottom-up approach (such as minutes and similar 
docu m ent s)  and  the  doc u mentati on  avai lable   at  th e   commis -
sion co ncer ning  t he ap p roval  ph as e.

I n co n s I s t e n t 	 I n I t I a l 	 P r o G r a m m I n G

E n c o u r a g i n g  p a r t i c i p a t i o n

26.  

 a s   r e g a r d s   m e t h o d s   t o   e n c o u r a g e   p a r t i c i p a t i o n ,   t h e   c o u r t ’s 
auditors noted that consultations took place in all the member 
States with the local par ties involved. i n france, consultations 
about the specific measures took place in the overseas depar t -
m e n t s   i n   2 0 0 5 .   a l t h o u g h   t h e s e   c o n s u l t a t i o n s   we re   n o t   d o c u -
mented in detail, for example in minutes of meetings with the 
par ticipants on site, they produced four regional programmes 
wh ich   su mmar is ed  the  needs   and   re lated   me asu res.  th ese  re -
gional programmes were consolidated to produce a single na-
t i o n a l   p ro g r a m m e.   h a v i n g   a l re a d y   c o n s i d e re d   p ro g r a m m i n g, 
the french authorities were then able to evaluate the situation 
properly and identify ac tual needs through consultations at re -
gional level as required by the reform of the specific measures.

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27.  

28.  

29.  

 i n   g r e e c e ,   t h e   a e g e a n   i s l a n d s’  r e g i o n a l   a u t h o r i t i e s   w e r e   i n -
vited to make proposals for the programme by the agr iculture 
m i n i s t r y   i n   ap r i l   2 0 0 6 .  th e   t i m e   a l l owe d   fo r   s u b m i t t i n g   t h e s e 
p r o p o s a l s   w a s   1 5   d a y s .  t h e   p e r i o d   b e t w e e n   t h e   n o t i f i c a t i o n 
date and the deadline for comments from the local authorities 
was too shor t to allow for a thorough analysis of needs and to 
choose the most effec tive measures to meet them. as a result, 
t h e   re s p o n s e s   s e nt   by   t h e   re gi o n a l   a u t h o r i t i e s   p r i m a r i l y   co n -
ta ined info r mat io n w hich did not  m ee t t he  re qui re d st an dard. 
t h e y   h a d   n o t ,   t h e r e f o r e ,   b e e n   c a r e f u l l y   a n a l y s e d   a n d   t a k e n 
into con sideratio n w hen t he agr ic ult ure  m in istr y  drew up th e 
p r o g r a m m e.  t h e   m i n i s t r y   o f   ag r i c u l t u r e   d o e s   n o t   d i s p o s e   o f 
ade qu ate  and   reliab l e  infor mat ion   at   ce nt ral  le ve l  t hat  would 
e n a b l e   i t   to   s te e r   t h e   p o l i c y   tow a rd   t h e   i n te n d e d   re s u l t s   a n d 
to ma ximise th e imp ac t for t he is l and s  m os t in  n eed.

 a l t h o u g h   c o n s u l t a t i o n s   w i t h   t h e   l o c a l   p a r t i e s   t o o k   p l a c e   i n 
S p a i n   a n d   po r t u g a l   w h e n   t h e   p r o g r a m m e s   w e r e   b e i n g   p r e -
p a r e d ,   t h e y   a r e   n o t   s u f f i c i e n t l y   d o c u m e n t e d   t o   e n a b l e   t h e 
cour t ’s  au dito rs  to   exp ress  an  opi ni on  o n  t he   val ue  a dde d  by 
th e exerc ise.

p r o g r a m m i n g  E l E m E n t s

 as regards the presence of the programming elements required 
by the regulations, the auditors noted that all the programmes 
c o n t a i n e d   a l l   t h e   e l e m e n t s   r e q u i r e d   a t   l e a s t   a s   f a r   a s   f o r m 
was concerned. however, as regards essence, weak nesses were 
n o t e d   i n   t h e   S p a n i s h ,   po r t u g u e s e   a n d   g r e e k   p r o g r a m m e s   i n 
ter m s o f the l ogic  and con sisten c y  o f t he  var io us co mpo ne nt s 
of t he  pro gramming  p roces s.

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30.  

31.  

32.  

 i n   S p a i n ,   t h e   v a r i o u s   p i e c e s   o f   i n f o r m a t i o n   r e q u i r e d   b y   t h e 
legisl atio n are  fo r m al l y p res ent i n th e  program me  but a re n ot 
c o n s i s t e n t   i n   t e r m s   o f   s u b s t a n c e 1 0.   a   g e n u i n e   a n a l y s i s   o f   t h e 
s i t u a t i o n   b a s e d   o n   a n   a s s e s s m e n t   o f   n e e d s   w a s   l a c k i n g,   a n d 
t h e r e   w a s   n o   s t r a t e g y   t o   e n s u r e   t h a t   t h e   s p e c i f i c   m e a s u r e s 
were complementar y and consistent with other eu or national 
a c t i o n s .   t h e   o b j e c t i v e s   o f   t h e   p r o g r a m m e   a r e   r a t h e r   v a g u e , 
being expressed more as general priorities than as precise and 
m e a s u r a b l e   o b j e c t i ve s,   a n d   c a n n o t   t h e r e fo r e   b e   r e g a r d e d   a s 
ope rat ional   o b jec t ives.  as  a  re sult,  t he   lin k  be t ween  th e  g en -
eral objec tives and the measures ac tually developed is unclear. 

10  e.g. page 95 of the Spanish 
programme’s revised version of 

29 September 2006: ‘compatibility 

and consistency of the programme 

measures: Since the measures in 

this programme generally assume 

continuity with the measures 

implemented pursuant to 

regulation (ec) no 1454/2001, it is 

clear that they comply with eu law 

and are consistent with other eu 

policies and with the corresponding 

measures adopted’.

 t h e   n e w   p r o g r a m m e   o f   s p e c i f i c   m e a s u r e s   f o r   t h e   c a n a r y   i s -
lands is a direc t continuation of the previous programme since 
t h e   p re v i o u s   m e a s u re s   a cc o u n t   fo r   8 9   %   o f   t h e   i n i t i a l   ove r a l l 
budget. this continuity could have been considered as consist -
ent  w ith   t he   refo r ms   if  it  were  b ase d  on   an   im pac t  an alys is   or 
a n   i n - d e p t h   e va l u at i o n   o f   t h e   p re v i o u s   p ro gra m m e.   h owe ve r, 
in the Spanish programme, this continuit y is largely due to the 
pro bl e ms  the   p ar tic ip ants   have  exper ie n ced  i n  im ple me nt in g 
t h e   n e w   p ro gra m m i n g   a p p ro a c h   s o u g ht   by   t h e   re fo r m   w i t h i n 
th e t ime frame  stip u lated by th e re g ulat ion s.

 i n   po r t u g a l ,   p r o g r a m m i n g   f o r   t h e   a z o r e s   c o m p o n e n t   o f   t h e 
general poSei programme commenced in march 2005. although 
t h e   po r t u g u e s e   a u t h o r i t i e s   a l l o we d   s u f f i c i e n t   t i m e   fo r   c a r r y-
i n g   o u t   t h e   p ro g r a m m i n g,   h e re   t o o   t h e   a n a l y t i c a l   e l e m e n t   i s 
inconsistent with the measures proposed. notably, there is no 
i n d i c at i o n   t h at   t h e   co n c l u s i o n s   o f   a n   e va l u at i o n   o f   t h e   p o S e i 
programme in por tugal for 1992 to 1999 that was published in 
2 0 0 0   we re   t a k e n   i n to   a cco u n t .  th i s   e v a l u a t i o n   re co m m e n d e d 
among  o th ers : 

(a)  financing an economic study of the fruit and hor ticultural 
p l a nt s   s e c to r   i n c l u d i n g   n o t   o n l y   p ro ce s s e d   b u t   a l s o   f re s h 
p ro d u c t s.   S u c h   a   s t u d y   c o u l d   b e   d e v i s e d   a n d   c a r r i e d   o u t 
for t he a zo res s ep aratel y f rom  m adeira;

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(b)   rev ie w in g aid fo r t he livestoc k s ec tor  as  a  w h ol e, wh eth e r 
v i a   t h e   S S a s   o r   a s   p r o d u c t i o n   a i d ,   s o   a s   t o   m i n i m i s e   t h e 
potentially negative impac t of the traditional milk produc -
t ion  mo del ;

(c)  a c h i e v i n g   g re a t e r   b a l a n c e   b e t we e n   t h e   l e ve l s   o f   s u p p o r t 
granted to the various livestock and crop areas in order to 
en su re  that c ro p  p rodu c tion  conti n ue s  in  t he  a zores;

(d)  carr ying out an in- depth study of the sugar industr y in the 
a zo res in o rder  to asses s  it s viabili t y  by  tak i ng  a ccou nt  of 
the maximum quantities of sugar being impor ted under the 
SSas,   t he  p o ssibilit y  o f  re - expor tin g   ref in ed   s ugar   and /or 
t he am o unt  of p ro cessing aid;

(e)  possibly replacing some plant produc tion aid with a single 
type of aid based on the number of hectares of arable land.

11  report on the proposal for a draft 
european parliament and council 

regulation amending regulation 

(ec) no 247/2006 (com(2009) 510 – 

c7 0255/2009 – 2009/0138(cod)), 

committee on agriculture and rural 

development, doc a7-0054/2010 

of 23 march 2010.

33.  

 i n   s p i t e   o f   t h e s e   s p e c i f i c   p r o p o s a l s   t o   a d a p t   t h e   p r o g r a m m e 
to c hanging  needs,  p r ior it y was gi ve n to  conti n ui t y.  B y way  of 
example, the existing premiums for livestock produc tion which 
acco unt   fo r  80  %  of  t he  to tal   am ount   pai d  for   t h e  a zores  pro -
gramm e  in  20 07   were  continued   on   th e  s ame  h i stor i cal  bas is. 
as a result, the programme of specific measures for the a zores 
could have taken greater consideration of the risk of local farm-
ers’ excess ive dep endence o n mi lk an d m eat produc t ion ,  eve n 
i f   t h i s   d o e s   r e f l e c t   t h e   i s l a n d s ’  c l i m a t e   a n d   g e o g r a p h y.   t h i s 
dependence was also noted in a recent repor t on the proposal 
fo r   a   e u r o p e a n   pa r l i a m e n t   a n d   co u n c i l   r e g u l a t i o n   a m e n d i n g 
r e g u l a t i o n   ( e c )   n o   2 4 7 / 2 0 0 6   l a y i n g   d o w n   s p e c i f i c   m e a s u r e s 
for a gr icul tu re in t he outer most  region s  of   th e  un ion 11. 

34.  

 i n the greek programme, the economic analysis of the agricul -
t u ra l   n e e d s   o f   t h e   ae g e a n   i s l a n d s   i s   ve r y   s u p e r f i c i a l.  th e re   i s 
n o   o ve r a l l   s t r a t e g y   a n d   t h e   p ro g r a m m e   d o e s   n o t   s p e c i f y   t h e 
l i n k   b e t we e n   t h e   va r i o u s   m e a s u re s   p ro p o s e d   a n d   t h e   g e n e ra l 
obj ec t ives,   o r  the  des ired  impac t. th is  lack   of  strategic  vision 
has produced measures whose ver y design means they are un-
like ly  to  be e ffe c tive ( see p aragra ph  4 4 ).

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12  letter d.1/mo/alf d(2006) 2393 to 
france dated 24 february 2006. the 

letters to Spain and portugal were 

identical. 

13  ‘micromanagement’ in this 
context means management of each 

measure by means of commission 

regulations.

35.  

36.  

t h E c o m m i s s i o n’s  r o l E   i n  p r o g r a m m i n g

 the commission sent guidelines to Spain, france and por tugal. 
the aim of these guidelines was to ‘provide the m ember States 
wi th  info r mat io n abou t how  to pres ent t he i r  pro gram me s an d 
a b o u t   t h e   co n te n t   a n d   l e ve l   o f   p re c i s i o n   t h e y   s h o u l d   s e e k   to 
incor porate in them’ 12. the commission’s guidelines also drew 
attention to ‘the essential principle on which the poSei reforms 
a r e   b a s e d ,   i . e .   t h e   m o v e   f r o m  “ m i c r o m a n a g e m e n t ” 1 3  b y   t h e 
co m m i s s i o n ,   w i t h   a n   a cc u m u l a t i o n   o f   d i s p a r a te   m e a s u re s,   to 
a more consistent programming approach. the m ember States 
will thus have greater freedom, but also more responsibility for 
ide nt ifying  t he need s o f the outer mos t regio ns  an d  for  d eve l -
oping a strategy to meet those needs.’ these useful guidelines 
w e r e   n o t   s e n t   t o   g r e e c e,   w h e r e   t h e   p r o g r a m m i n g   p r o c e d u r e 
wa s c ar r ied  o u t b et ween  o c to be r an d d ecembe r 20 06 .

 t h e   c o m m i s s i o n   h a d   f o u r   m o n t h s   i n   w h i c h   t o   a p p r o v e   t h e 
p r o g r a m m e s .   d u r i n g   t h i s   p e r i o d ,   r e g u l a r   c o n t a c t   t o o k   p l a c e 
b e t w e e n   d g   a g r i   a n d   t h e   a u t h o r i t i e s   i n   t h e   m e m b e r   S t a t e s 
concer ned.  the  p ro gram mes  developed and im proved  a s  a re -
s u l t   o f   t h i s   c o n t a c t .   h owe ve r,   t h e   a m e n d m e n t s   s u g g e s te d   by 
t h e   co m m i s s i o n   we re   co n f i n e d   to   m a t te r s   o f   co m p l i a n ce   a n d 
consistenc y with eu  law and policies. the commission did not 
asses s  t he  p rogrammes’  effec tive n es s,   i .e.  w h eth er   th e   obj e c -
tives se t and t he m eas ures  p rop os ed  were con s iste nt  w ith  t h e 
a n a l y s i s   o f   t h e   s i t u a t i o n .   a l t h o u g h   i t   i s   i m p o r t a n t   t h a t   t h e 
p ro g r a m m e s   s h o u l d   c o m p l y   w i t h   l e g i s l a t i o n ,   t h e   fo u r - m o n t h 
p e r i o d   c o u l d   h a v e   b e e n   p u t   t o   b e t t e r   u s e   i f   t h e   c o m m i s s i o n 
had also ac tively advised the member States on programme ef-
fec tiveness. i t could, for example, have stipulated har monised 
p e r fo r m a n c e   i n d i c a to r s   a t   t h e   s t a r t   o f   t h e   n e w   p ro g r a m m i n g 
phas e,   esp ec ial ly  in   ter ms  of  em ploym ent   or   va lue   of  agr i c ul -
tural produc tion. Such indicators would have provided a basis 
fo r   d i s c u s s i n g   t h e   m e a s u r e s   t o   b e   i n t r o d u c e d   a n d   fo r   e n v i s -
aging   reco mmen datio ns   for  reme di al   ac ti on  at  th e  en d   of   th e 
first year, thus adding value without calling the member States’ 
responsibility for the programming process into question. how-
e ve r,   t h e   co m m i s s i o n   d i d   n o t   d i s p o s e   i t s e l f   o f   t h e   m e a n s   n e -
cessar y to go beyond a compliance review, especially given the 
i nte r n a l   re s o u rce s   i t   h a d   a l l o c ate d   to   t h e   m a n a g e m e nt   o f   t h e 
spec ific  measu res.

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37.  

38.  

39.  

t h e 	 f l e x I b I l I t y 	 s o u G h t 	 f r o m 	 P r o G r a m m e	
a m e n d m e n t s 	 I s 	 n ot 	y e t 	 I n 	 e V I d e n c e

 one of the objec tives of the 2006 reform was ‘encouraging par -
ticipation in decision-mak ing and speeding up the response to 
th eir sp ec if ic  needs’ (s ee B ox  1 ) . for t his reas on , a mec hanism 
to update the programmes on an annual basis was introduced. 

 th e   f i r s t   ve r s i o n   o f   a r t i c l e   4 9   o f   co m m i s s i o n   r e g u l a t i o n   ( e c ) 
n o   7 9 3 / 2 0 0 6   o f   1 2   a p r i l   2 0 0 6   l a y i n g   d o w n   c e r t a i n   d e t a i l e d 
rules for applying regulation (ec ) no 247/2006 stipulated that 
t h e   m e m b e r   S t a t e s   w e r e   t o   s u b m i t   p r o g r a m m e   a m e n d m e n t s 
t o   t h e   c o m m i s s i o n   f o r   a p p r o v a l   o n c e   a   y e a r.   h o w e v e r,   t h i s 
firs t versio n did no t sp ecify a dead li ne  for  s ubmi tti n g am e nd-
m e n t s ,   w h i c h   c a u s e d   p r o b l e m s   w h e n   t h e   a m e n d m e n t s   w e r e 
imp l em ented at  t he b eginning  of  th e followin g  ye ar.  commis-
s i o n   r e g u l a t i o n   ( e c )   n o   1 2 4 2 / 2 0 0 7   a m e n d e d   a r t i c l e   4 9   a n d 
s e t   a   d e a d l i n e   ( 3 0   S e p t e m b e r   n  –  1 )   f o r   s u b m i t t i n g   c h a n g e s 
c o n c e r n i n g   ye a r   n   fo r   a p p r o v a l .   co m m i s s i o n   r e g u l a t i o n   ( e c ) 
no  40 8/2 00 9  am ended   ar tic l e  4 9  once  more  an d  s et   1  august 
n – 1 as  th e deadl ine fo r s ub mit tin g  a me nd me nt s.

 t h e   a m e n d m e n t s   s u b m i t t e d   b y   t h e   m e m b e r   S t a t e s   f o r   2 0 0 8 
were approved by the commission bet ween o c tober 2007 and 
J u l y   2 0 0 8   d e p e n d i n g   o n   t h e   d a t e   o f   s u b m i s s i o n   b e c a u s e   n o 
deadline was specified in the regulations at the time. the pro -
c e d u r e   i m p r o v e d   f o r   2 0 0 9   b e c a u s e   a p p r o v a l   w a s   b a c k d a t e d 
to   1   J a n u a r y   2 0 0 9 .   h owe ve r,   a p p rova l   wa s   gra nte d   o n   s e ve ra l 
occ as ions  b et ween  feb ru ar y   and  m ay   2 00 9,  t hus  cre ating   un -
c e r t a i n t y   a s   re g a rd s   a i d   a p p l i c a t i o n s   s u b m i t t e d   b e t we e n   t h e 
beginning  of 2009 and the date  of  approval. 

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40.  

 i n   o r d e r   t o   e n s u r e   t h a t   a p p r o v a l   w a s   n o t   g r a n t e d   b e fo r e   t h e 
b e g i n n i n g   o f   t h e   y e a r   c o n c e r n e d ,   t h e   c o m m i s s i o n   s e t   1   a u -
g u s t   n  –  1   a s   t h e   n e w   d e a d l i n e   f o r   s u b m i t t i n g   a m e n d m e n t s . 
alth ou g h  the   new   deadl ine  allows  th e  commiss ion   more  time 
to evaluate the proposed amendments and to prepare approval 
decisions, this entails a risk in terms of the effec tiveness of the 
amendments proposed. the fact is that the member States must 
also submit the annual implementation repor t for year n before 
31  J u l y  n + 1. wit h  th e  new   deadlin e  of  1   august,  t he  m ember 
States have to draf t the amendments while they are prepar ing 
t h e   a n n u a l   i m p l e m e n t a t i o n   re p o r t .   a l t h o u g h   i n   o rd e r   fo r   t h e 
p ro g r a m m e   t o   b e   e f fe c t i ve   a m e n d m e n t s   s h o u l d   b e   p ro p o s e d 
on the basis of an in- depth analysis of ac tual implementation, 
t h e   1   au g u s t   d e a d l i n e   m e a n s   t h a t   l o c a l   p a r t i c i p a n t s   h a v e   t o 
pro po s e  c han ges  as   ear l y  as  m ay   eac h   year.  S uch   chan ges  are 
therefore proposed before the implementation of the measures 
for the previous year is confirmed (payments for year n may be 
m a d e   u nt i l   3 0   J u n e   n  +  1 ) ;   t h i s   i s   n at u ra l l y   to o   e a r l y   to   a s s e s s 
th e e ffe c t  o f the  meas ures  for  th e c ur rent  yea r.

41.  

 as in the case of the initial programme, when examining amend -
ments the commission emphasises compliance and consistenc y 
w i t h   t h e   l a w   a n d   c o m m o n   p o l i c i e s   r a t h e r   t h a n   e f fe c t i v e n e s s 
a s p e c t s.   r e co gn i s i n g   t h e   i m p o r t a n ce   o f   s u c h   a n   exe rc i s e,   t h e 
c o m m i s s i o n   c o u l d   h a v e   a d d e d   v a l u e   t o   t h e   p r o g r a m m e s   b y 
ac tively contr ibuting to improve their effec tiveness especially 
tak ing account of the fac t that it has an over view of best prac -
tice s  in all  the  m em b er St ate s.

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14  ‘evaluation of the measures 
implemented to support the 

outermost regions (poSei) and 

smaller aegean islands as part of 

the common agricultural policy’, 

oréade-Brèche consultancy, 

november 2009. Summary, p. 3, 

paragraph 3.1.

42.  

43.  

h aV e 	t h e 	 m e a s u r e s 	 d e s I G n e d 	 by 	t h e	
m e m b e r 	 s tat e s 	 s I n c e 	t h e 	 2 00 6	 r e f o r m	
b e e n   I m P l e m e n t e d 	 e f f e c t I V e ly ?

 th e   c r i te r i a   fo r   a n s we r i n g   t h i s   a u d i t   q u e s t i o n   we re   t h e   e x i s t -
e n c e   o f   r e l e v a n t   o b j e c t i v e s   a n d   e l i g i b i l i t y   c r i t e r i a   t h a t   w e r e 
s u f f i c i e n t   to   e n s u re   t h at   t h e   m e a s u re s   a c h i e ve d   t h o s e   o b j e c -
t i v e s .   t h e   e x i s t e n c e   o f   r e l e v a n t   p e r f o r m a n c e   i n d i c a t o r s   w a s 
also a f ac tor.

 i n   o rd e r   to   a n s we r   t h i s   a u d i t   q u e s t i o n ,   t h e   a u d i to r s   a n a l ys e d 
t h e   o b j e c t i v e s   a n d   e l i g i b i l i t y   c r i t e r i a   o f   t h e   s e l e c t e d   m e a s -
ures and discussed their implementation with inter-branch or-
g a n i s a t i o n s   o r   p ro d u c e r   o rg a n i s a t i o n s   t h a t   re p re s e n t   a   l a rg e 
number of beneficiaries. i n order to become better acquainted 
wi th   t he  way  th e  meas ures   were   im ple mented   on   t he   groun d, 
the auditors visited a non-representative number of producers. 
during these on-the -spot visits, the cour t ’s auditors examined 
measures which have proven to be effec tive, such as the struc-
tur ing   of   cat tl e  far min g  o n  r e un ion   or   aid  for   the  produc tion 
of mastic on the island of chios. however, other measures were 
sub jec t  to  var io u s weak nes ses  wh ic h  w i ll be de s cr i bed be low. 
t h e   e f fe c t i ve n e s s   o f   t h e s e   m e a s u r e s   w a s   a l s o   g e n e r a l l y   c o n -
f i r m e d   b y   t h e   c o n s u l t a n t s ,   w h o   c o n c l u d e d   t h a t   i n   1 6   o f   t h e 
2 4   s e c to r s   cove re d   by   t h e i r   re p o r t   co m p e t i t i ve n e s s   h a d   b e e n 
imp roved by financing   mla ps 14. 

t h e 	way 	 s o m e 	 m e a s u r e s 	 a r e 	 d e s I G n e d 	 m a k e s	
I m P l e m e n tat I o n 	 l e s s 	 e f f e c t I V e

a i d  f o r  o l i v E  g r o v E s  o n  t h E a E g E a n  i s l a n d s

44.  

 t h e   s u p p o r t   p r o g r a m m e   fo r   t h e   o l i v e - o i l   s e c t o r   p r o v i d e s   fo r 
a flat-rate payment of 145 euro per hec tare for olive producers 
o n   t h e   s m a l l e r   a e g e a n   i s l a n d s,   t h e   a i m   b e i n g   t o   r e t a i n   o l i v e 
grove s   i n   a re a s   w h e re   t h e y   h ave   a l ways   ex i s te d,   o n   co n d i t i o n 
that the groves should be maintained in such a condition as to 
g u a r a n t e e   h e a l t hy   p ro d u c t i o n .  th e   a m o u n t   e a r m a r k e d   i n   t h e 
bud g et fo r t his aid is 13 084 831  eu ro,  i .e.  approx im ately  70  % 
of t he  bu dg et o f measu res for th e  aeg ean is lan ds.

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45.  

46.  

47.  

 r e g u l a t i o n   ( e c )   n o   1 7 8 2 / 2 0 0 3   g i ve s   t h e   m e m b e r   S t a t e s   c o n -
c e r n e d   t h e   o p t i o n   o f   e x c l u d i n g   o u t e r m o s t   r e g i o n s   a n d   t h e 
s m a l l e r   ae g e a n   i s l a n d s   f ro m   t h e   s i n g l e   p ay m e n t   s c h e m e   a n d 
of incor p orat ing  t he co r res p on din g  bud g e ta r y appro pr i ati on s 
into t he sp ecific measu res. gre ece decided not to exc lude th e 
smaller islands from the single payment scheme. olive farmers 
in t he aeg ean  isl and s t herefore  rece ive pay ment e nti tle m ent s 
t h a t   a re   b a s e d   o n   t h e i r   i n fo r m a t i o n   a s   re c o rd e d   i n   t h e   o l i ve -
c u l t i v at i o n   g i S   t h ro u g h   t h e   s i n g l e   p ay m e n t   s c h e m e   a n d   t h e y 
are t herefo re requ ired to  fu lf il c ros s- compli an ce  con di ti on s.

 the amounts the beneficiaries receive under the specific meas-
u r e s   a r e   g e n e r a l l y   v e r y   s m a l l .   t h e   a v e r a g e   p a y m e n t   i s   o n l y 
a b o u t   2 0 3   e u ro   p e r   b e n e f i c i a r y   p e r   y e a r,   w h i l e   t h e   m o s t   f r e -
q u e n t   p ay m e n t   i s   5 8   e u ro   p e r   ye a r.   4 3   %   o f   t h e   s u m s   d i s t r i b -
uted  are  u nde r  100  euro   (24  14 5  be n ef i ci ar i es ) ,  wh e rea s  6 9   % 
of  be nefic iar ies  receive  200  euro   or   le ss   per   yea r.   on ly   2   %  of 
beneficiar ies (1 126 far mers) receive more than 1 000 euro per 
yea r, w hile 0,35 % (194 f ar mers)  re ce ive more  th an  2  0 0 0  e uro 
und er t he sc he me. 

 t h e   c o u r t   b e l i e v e s   t h a t   i t   i s   d i f f i c u l t   t o   j u s t i f y   t h a t   t h e   e c o -
n o m i c   i n c e n t i v e   u n d e r   t h e s e   c i r c u m s t a n c e s   e n c o u r a g e s   t h e 
vast majority of beneficiaries to maintain their traditional olive 
groves. this measure could have been more effec tive if greece 
had required the maintenance of olive groves in the framework 
of c ros s- comp liance, as is  t he c ase,   for   exa mple,   in i taly.

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48.  

49.  

a i d  f o r  i n n o v a t i o n  a n d  t h E  q u a l i t y  o f  a n i m a l  p r o d u c t s 
i n  t h E a z o r E s (p o r t u g a l)

 this sub -measure aims to improve and create conditions for the 
reliable quantitative and qualitative monitoring and classifica -
tion  o f m il k  p roduc tion throu gh  t he  i ns tal lation  of  me as ur in g 
a n d   s a m p l i n g   e q u i p m e n t   a t   re c e p t i o n   p o i n t s   fo r   m i l k   c o l l e c -
t i o n   v e h i c l e s .  t h e   a i d   f u n d s   m i l k - s a m p l i n g   w o r k   ( 4   0 0 0   c o w s 
w e r e   c o n c e r n e d   i n   2 0 0 7 )   f o r   p r o d u c e r s   w h o   h a v e   a p p l i e d   i n 
advance. aid is granted  to 70 % of  applic at ion s at  a  m ax im um 
r a t e   o f   3 5   e u r o / h e a d .   t h e   b u d g e t   f o r   t h i s   s u b - m e a s u r e   w a s 
539 000 euro per year in 2007, 2008 and 2010 and 597 900 euro 
in 2 009. 

 t h i s   p r o v i s i o n   o f   t h e   a z o r e s   p r o g r a m m e   i s   a n o t h e r   e x a m p l e 
o f   a i d   w h i c h   r u n s   t h e   r i s k   o f   l i m i t e d   e f fe c t i ve n e s s   b e c a u s e   i t 
i s   n o t   p r o p e r l y   d e f i n e d   o r   s u b j e c t   t o   a p p r o p r i a t e   e l i g i b i l i t y 
c r i te r i a .  th e   ex a m i n at i o n   o f   a   t y p i c a l   f i l e   fo r   t h i s   m e a s u re   re -
vealed a lack of overall infor mation in the programme and file 
wh ich   co uld  have  c l ar ified  t he  g en e ra l  contex t  of   t he   ac t iv it y 
or   su b -me asu re,   in   p ar t icu l ar  th e   t ak in g  of   m ilk   s amp les   from 
pro du ce rs   fo r  su b sequ ent  l ab orator y   anal ysi s   and  t he   re por t -
i n g   o f   f i n d i n g s   t o   f a r m e r s.   a s   t h e   u l t i m a t e   g o a l   i s   t o   p rov i d e 
i n f o r m a t i o n   a b o u t   m i l k   q u a l i t y   f o r   e a c h   a n i m a l   s o   t h a t   t h e 
producer concerned can take informed management decisions, 
it wo ul d be  p er t inent  to s pec if y all ad dit io nal meas ure s ( s uc h 
a s   l a b o r a t o r y   a n a l y s i s   o f   s a m p l e s ,   t h e   fo r w a r d i n g   o f   r e s u l t s , 
t h e   p u r c h a s e   o f   m i l k - c o l l e c t i o n   e q u i p m e n t ,   e t c . )   w h i c h   g i v e 
sense to and complement the overall measure, and the various 
sources of funding, whether eu, national or pr ivate. Specifica-
tion s  fro m  the   ap p rop r iate  aut ho r i t y   l ist in g   t he   nat ure   of   t he 
ac tual ser vices provided, the ter ms of implementation and es -
t i m a t e d   c o s t s   we re   a l s o   l a c k i n g.   a s   a   re s u l t ,   t h e   f l a t - r a t e   a i d 
granted to the beneficiar y examined (31 euro per cow in 2007) 
is no t  b ase d on ob j ec tive cr iter ia.  alth oug h lon g lists  of milk-
a n a l y s i s   re s u l t s   a re   a v a i l a b l e,   t h e r e   i s   n o   i n fo r m a t i o n   fo r   e s -
ta b lis hing  w het her th ese res ults  a c t ua lly  re sulted  in  to a c ti on 
which justified the value of the sums invested in the measure. 
given the absence of such specifics, there is a r isk that the aid 
may  be  ineffic ient  and even of  li mi te d  e ffec ti ve n es s.

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50.  

51.  

52.  

a i d  f o r  b a n a n a s  i n s p a i n  a n d f r a n c E

 i n 200 7, t he b an ana c mo was  refor m ed and th e aid was in cor-
porated into the poSei programmes by council regulation (ec ) 
no 2 013/2 00 6 o f 19 d ece mb er 20 06 . th e budg et for th is aid is 
270 200 000 euro for france and Spain. recital (3) of the regu-
lat io n  st ipu l ates  th at ‘ l o cal   ban ana  produc t ion   is   an  e s se nti al 
element of the environmental, social and economic balance of 
th e ru ral  areas in tho se regio ns’.

 in order to contribute to the objective of maintaining this social 
and economic balance, the solution chosen on the basis of the 
a n a l ys e s   co nt a i n e d   i n   t h e   p ro gra m m e s   wa s   to   p rov i d e   a i d   fo r 
p ro d u ce r s.  th e   fre n c h   p ro gra m m e   h i g h l i g ht s   t h e   i m p o r t a n ce 
of the sec tor by pointing out, for example, that the number of 
dire c t,   indire c t  an d  s eco ndar y   j obs   prod uce d  by   th e  se c to r   in 
th e car ib be an is  ap proximately  20  0 0 0 . i n  Spain , accordin g to 
the programme, the number is over 17 300. in the canaries, ba-
nana  p ro duc t io n acco unts  for abou t 2 5 %  of  tot al agr i cult ural 
p r o d u c t i o n .  t h e s e   f i g u r e s   s h o w   t h a t   a i d   f o r   b a n a n a   p r o d u c -
ers,  w hic h  he lps   to  s up p or t  t he  w hol e  s ec tor,   is   an  i mpor tant 
fac to r  in  maintaining   t he  econo mi c   a n d  s oc i al  st abi lit y  of   th e 
regions   co ncer ned.   h owe ver,   th e  objec tive  of   contr ib ut in g   to 
environmental equilibrium is less developed in the programme 
c o m p l e m e n t s   t h a t   w e r e   s u b m i t t e d   b y   t h e   m e m b e r   S t a t e s   a s 
far  a s  inc lu din g  th e  b anana  se c to r   in   t he   spe c if i c  m e asu res   is 
concer ned.

 the poSei programme for the banana sector in france, which was 
app rove d by co mmis sio n d ec ision  c( 20 07 )  of  2 2 august 2 0 07 , 
s e t s   t h e   o b j e c t i v e   o f  ‘p r o m o t i n g   a   s u s t a i n a b l e   m a n a g e m e n t 
system’ using ‘ banana- growing land that has been set aside’ as 
a   m o n i to r i n g   i n d i c a to r.  th e   e x p e c t e d   e nv i ro n m e n t a l   i m p a c t s 
are ‘ the management and protec tion of delicate soil and slop -
i n g   l a n d ’,  ‘ t h e   m a i nte n a n ce   o f   t h e   u s a b l e   a gr i c u l t u ra l   a re a   by 
s t a b i l i s i n g   l a n d   u s e d   t o   g ro w   b a n a n a s’,  ‘m a k i n g   t h e   b e s t   u s e 
o f   t h e   ua a   by   e x t e n d i n g   s e t - a s i d e   a n d   c ro p   ro t a t i o n’  a n d  ‘a n 
a c t i ve   p o l i c y   o f   l i m i t i n g   i n p u t s’,   s u c h   a s   fe r t i l i s e r s.  th e   S p a n -
ish pro gramme do es no t exp l ic it ly  s ti pulate  an e nv iron me ntal 
obj ec t ive.

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53.  

54.  

55.  

 i n   b o t h   p r o g r a m m e s ,   a i d   w a s   l i n k e d   o n l y   t o   p r o d u c t i o n . 
p r o d u c e r s   r e c e i v e   a i d   o n   t h e   b a s i s   o f   a   h i s t o r i c a l   r e f e r e n c e 
t o n n a g e .   t h i s   a i d   i s   r e d u c e d   i f   a c t u a l   p r o d u c t i o n   f o r   t h e 
ye a r   co n ce r n e d   d o e s   n o t   re a c h   ce r t a i n   t h re s h o l d s   i n   re l a t i o n 
to the historical reference. there is no other constraint, e.g. as 
reg ards  pro du c tio n met ho ds.

15  ‘evaluation of the measures 
implemented to support the 

outermost regions (poSei) and 

smaller aegean islands as part of 

the common agricultural policy’, 

oréade-Brèche consultancy, 

november 2009, executive 

summary, p. 31.

 produc tion-related aid with no constraint on produc tion meth-
o d s   d o e s   n o t   e n c o u r a g e   p r o d u c e r s   t o   e m p l o y   a   p r o d u c t i o n 
a p p ro a c h   t h at   p re s e r ve s   t h e   e nv i ro n m e nt.   as   t h e   p ro gra m m e 
co nt a i n s   n o   p rov i s i o n   fo r   a c h i e v i n g   t h i s   o b j e c t i ve,   a d d i t i o n a l 
arrangements (e.g. the ‘sustainable banana plan’ in france) are 
n e e d e d   s o   a s   to   e n s u re   t h at   t h e   e nv i ro n m e nt a l   o b j e c t i ve   c a n 
be ac hieve d. 

 i n addition, this objec tive should be monitored using relevant 
indicators. however, such indicators are lack ing in the Spanish 
programme and those contained in the french programme are 
not really relevant. the fac t is that the environmental objec tive 
o f  ‘p ro m o t i n g   a   s u s t a i n a b l e   m a n a g e m e nt   s ys te m’,   t h e   va r i o u s 
e x p e c t e d   i m p a c t s   o f   w h i c h   a r e   m e n t i o n e d   i n   p a r a g r a p h   5 0 , 
m u s t ,   a c c o r d i n g   t o   t h e   p r o g r a m m e ,   b e   m e a s u r e d   u s i n g   o n l y 
one indicator (‘ banana- growing land that has been set aside’). 
although the 2007 annual implementation repor t includes an-
o t h e r   i n d i c a t o r   t h a t   i s   n o t   m e n t i o n e d   i n   t h e  ‘n o n - c u l t i v a t e d 
f a l l o w   l a n d ’  p r o g r a m m e s ,   i t   m e r e l y   r e f e r s   t o   t h e s e   t w o   i n d i -
c a t o r s   w i t h o u t   e s t a b l i s h i n g   a   l i n k   w i t h   t h e   s t a t e d   o b j e c t i v e 
a n d   w i t h o u t   s a y i n g   t o   w h a t   e x t e n t   t h e s e   i n d i c a t o r s   e n a b l e 
t h e   ex p e c te d   e nv i ro n m e nt a l   i m p a c t   to   b e   e va l u ate d.  th e re   i s 
a risk that the m ember States may not k now the real impac t of 
this   po Sei   me asu re  o n  t he  environment  and   th at  t h ey   ca nn ot 
therefore take the necessar y remedial ac tion to ensure that the 
measure is fully effec tive. this weak ness was also noted by the 
eval uat io n co ns ul tants 15.

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16  recital (41) of council regulation 
(ec) no 318/2006 of 20 february 

2006 on the common organisation 

of the markets in the sugar sector 

(oJ l 58, 28.2.2006, p. 1).

17  article 41(1) of council regulation 
(ec) no 318/2006.

18  chapter v, p. 4, of the french 
programme approved by 

commission decision c(2006) 4809 

of 16 october 2006, pursuant to 

regulation (ec) no 247/2006.

56.  

57.  

t h E  s u g a r  c a n E   s E c t o r  o n r E u n i o n

 the reform of the common organisation of the sugar market led 
to   a   f a l l   i n   t h e   s u g a r   p r i ce   p a i d   to   eu ro p e a n   p ro d u ce r s.   h ow-
ever, during the reform process, it was ack nowledged that ‘the 
charac teristics of sugar produc tion in the outermost regions of 
the community distinguish that produc tion from sugar produc-
tion in the rest of the community ’ 16. consequently, the council 
gra nte d   t h e   s e c to r   f i n a n c i a l   s u p p o r t   i n   t h e   fo r m   o f   re s o u rce s 
fo r   f a r m e r s   i n   t h e s e   re gi o n s   a s   p a r t   o f   t h e   s p e c i f i c   m e a s u re s. 
fo r   t h e   s a m e   r e a s o n ,   fr a n c e   w a s   a l s o   a l l o w e d   t o   a l l o c a t e   i t s 
ou te r mo st regions a fixed amo unt  of   st ate ai d 17.

 th e   fre n c h   a u t h o r i t i e s   n o te d   i n   t h e   p ro gr a m m e   a p p rove d   by 
the commission that ‘the restruc turing of the sugar industr y in 
the overseas depar tments has been completed: only t wo units 
n o w   r e m a i n   o n   r é u n i o n   ( a   s i n g l e   u n i t   w o u l d   n o t   b e   r e a l i s t i c 
given the location of the plantations and the distance the cane 
would have to be transpor ted as a result). the commission and 
the council ack nowledged this situation when they dispensed 
t h e   ove r s e a s   d e p a r t m e n t s’  s u g a r   i n d u s t r i e s   f ro m   t h e   re s t r u c -
t u r i n g   e nv i s a g e d   u n d e r   t h e   re fo r m   o f   t h e   c o m m o n   o r g a n i s a -
t i o n   o f   t h e   s u g a r   m a r k e t   a s   a d o p t e d   o n   2 2   fe b r u a r y   2 0 0 6 ’ 1 8. 
a s   r e g a r d s   m a i n t a i n i n g   t h e   t w o   p r o d u c t i o n   u n i t s   l o c a t e d   i n 
th e  no r th  and  so u th  o f  the  isl and,  it   s h ou ld  be  noted   th at   th e 
t o p o g r a p h y   o f   a   v o l c a n i c   i s l a n d   s u c h   a s   r é u n i o n ,   w i t h   h i g h 
mountains inland, considerably increases transpor t times even 
for s ho r t dist ances.

58.  

 the cour t examined the flat-rate aid to help the sugar industr y 
in the french overseas depar tments adjust to the cmo, the aim 
b e i n g   t o   p r e s e r v e   t h e   s e c t o r   b y   e n a b l i n g   t h e   s u g a r   i n d u s t r y 
a n d   s u g a r   c a n e   f a r m e r s   t o   a d j u s t   a n d   t o   o f fs e t   t h e   i m p a c t   o f 
t h e   f a l l   i n   s u g a r   p r i c e s   o n   g r o w e r s ’  i n c o m e s .   fo r   t h e   s u g a r -
r u m   s e c to r   i n   t h e   ove r s e a s   d e p a r t m e nt s,   t h i s   a i d   re p re s e nte d 
e x p e n d i t u r e   o f   6 4  3 0 8  3 4 7   e u r o   i n   2 0 0 7   a n d   7 1  1 6 5  2 2 4   e u r o 
in 20 08.

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59.  

60.  

61.  

 o n   t h e   b a s i s   o f   a n   a g r e e m e n t   b e t w e e n   p r o d u c e r s   a n d   g r o w -
e r s,   t h e   f l a t - ra te   a i d   i s   t h e o re t i c a l l y   re d i s t r i b u te d   to   growe r s 
through the price paid for cane by the two produc tion units on 
the island. i n order to compensate fully for the price reduc tion 
resulting from the reform of the sugar cmo introduced by reg-
ulation (ec ) no 318/2006 and to guarantee growers a minimum 
i n co m e,   t h e   p r i ce   w h i c h   growe r s   re ce i ve   fo r   t h e   c a n e   wa s   s e t 
in the  2 006-15 su gar c ane agree me nt at 3 9 , 0 9  e uro pe r  ton ne.

 however, the c yclone which hit the island in 2007 had a direc t 
e f fe c t   o n   t h e   q u a n t i t y   o f   c a n e   p ro d u c e d.  t h e   a i d   d i s t r i b u t e d 
th ro ug h t he p urc has e p r ice p aid  by  th e proce ss i ng  pl ants  was 
n o t   u s e d   u p   b e c a u s e   o f   t h e   f a l l   i n   t h e   q u a n t i t y   o f   c a n e   s u p -
plied to the fac tor ies. the managers of the produc tion centres 
therefore decided to use the surplus funds to plant new cane in 
some areas, thus providing some growers with an interest-free 
loan to replant their land with more produc tive and more suit-
able new varieties of cane if they so wished. if cane produc tion 
re t u r n s   t o   i t s   h i s t o r i c a l   l e ve l   o f   a ro u n d   2   m i l l i o n   t o n n e s,   t h e 
flat-rate aid wil l  have to  be  u se d up i n orde r  to g ua ra nte e t h e 
pr ice  l evel.

 i t sho ul d a lso  b e noted th at there  i s  a rel ati on s hip of  i nte rd e -
p e n d e n c e   b e t w e e n   s t a k e h o l d e r s   o n   r e u n i o n   b e c a u s e   o f   t h e 
r e m o t e n e s s   o f   t h e   i s l a n d .   a s   a   r e s u l t ,   t h e   p r o d u c t i o n   u n i t s 
can   onl y  b e  sup p l ied  w it h  c ane  grown  on   th e   is la nd  an d  can e 
growe rs can  o nly  s el l their p roduce  to th e i s lan d ’s produc ti on 
units. Studies of these t wo produc tion facilities show that the 
break- eve n  p o int  is   ach ieved  if  to tal   c an e   prod uc ti on   re ac h es 
2 million tonnes and each plant receives 1 million tonnes of raw 
mater ial  fro m which to  p rocess  approx im ate ly  1 0 0  0 0 0  tonn e s 
o f   w h i t e - s u g a r   e q u i v a l e n t .   h o w e v e r,   p r o d u c t i o n   f o r   2 0 0 6   t o 
2008 varied between 1,6 million and 1,8 million tonnes of cane 
a n d   2 0 0 7   w a s   v e r y   d i f f i c u l t   b e c a u s e   o f   u n e x p e c t e d   c l i m a t e 
pheno me na o n th e is l and.

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62.  

63.  

 acco rding to  the  growers  w hom  t he  aud i tor s  me t  on  site,  pre -
ser ving the selling price of sugar cane was the most impor tant 
f a c to r   a s   f a r   a s   t h e   s e c to r ’s   s u r v i va l   w a s   co n ce r n e d.   ac t u a l l y, 
the costs of maintaining and har vesting the parcels cultivated 
wi th  su g ar c ane that  far mers are  ex pos ed  to  are s uc h  t hat  t h e 
s l i g h t e s t   i n c r e a s e   i n   a n y   i t e m   s u c h   a s   f e r t i l i s e r,   w h i c h   m o s t 
growers cited as an example, could ver y quick ly place them in 
a   ve r y   d i f f i c u l t   p o s i t i o n .  th i s   wa s   a l s o   co n f i r m e d   by   a   te c h n i -
cal st u dy w hich s howed that a id  for  spe c if ic  m eas ures  a lre ady 
a cco u nte d   fo r   3 8   %   o f   t h e   t u r n ove r   o f   a n   ave ra g e   s u g a r   c a n e 
pro du ce r o n  r éu nio n in 2009. 

19  ‘evaluation of the measures 
implemented to support the 

outermost regions (poSei) and 

smaller aegean islands as part of 

the common agricultural policy’, 

oréade-Brèche consultancy, 

november 2009, executive 

summary, p. 32.

 the fac t that adjustment aid for the sugar industr y on réunion 
ta kes   t he   fo r m  o f  fixed-b udg et   f lat-rate   ai d   g en erate s   r i sks   to 
effec tiven ess in t his  fragil e envi ron me nt in th e  e vent th at  ex-
ternal factors such as input prices, including fer tiliser, continue 
to r is e.  the f ac t  is that if grower s can not abs or b s uc h  a r i s e — 
however small  — b ec aus e o f the  s ale  pr ice  of   th e ir  can e,  th e y 
may go out of business, thus entailing the disappearance of the 
sugar sec tor on réunion. as all the flat-rate aid is already used 
to   g u a ra nte e   t h e   s a l e   p r i ce   o f   a d e q u a te   p ro d u c t i o n ,   n at i o n a l 
aid is therefore essential for dealing with ex ternal random fac-
tors because it stabilises local produc tion and ensures that eu 
aid for the programme remains effec tive. this obser vation was 
a l s o   m a d e   b y   t h e   c o n s u l t a n t s,   w h o   s t re s s e d   t h e   re l e v a n c e   o f 
comp l eme nt ar y  natio nal  aid 19.

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t h E  s p E c i f i c  s u p p l y  a r r a n g E m E n t s (ssa s)

64.  

 the specific supply arrangements are a system of compensation 
for the higher costs arising from the insularit y and remoteness 
of the regio ns co ncer ned. this  is ac hieved th rough  exempti on 
from cu stoms  dut ies  for  p rod uc t s im por ted  from n on -me mbe r 
c o u n t r i e s ,   o r   b y   m e a n s   o f   a i d   f o r   t h e   d e l i v e r y   o f   p r o d u c t s 
o f   e u   o r i g i n ,   w i t h   e q u i v a l e n t   c o n d i t i o n s   fo r   f i n a l   u s e r s .   t h i s 
mecha nism was int rod uced in order  ef fe c ti ve ly to a ch ie ve  th e 
o b j e c t i v e   o f   l o w e r i n g   t h e   p r i c e s   o f   s o m e   e u   p r o d u c t s   i n   t h e 
o u te r m o s t   re gi o n s,   to   m i t i g ate   t h e   a d d i t i o n a l   co s t s   re s u l t i n g 
f ro m   re m o t e n e s s,   i n s u l a r i t y   a n d   a n   o u t l y i n g   l o c a t i o n ,   a n d   a t 
the same time to maintain competitiveness. the aid should take 
acco u nt   o f  t he  additio nal   cos ts  of   t rans por t   to  t h e  o ute r m ost 
regions and expor t prices to third countries and, in the case of 
a gr i c u l t u ra l   i n p u t s   o r   p ro d u c t s   fo r   p ro ce s s i n g,   t h e   a d d i t i o n a l 
cost s o f insu lar it y and an  out ly ing  l oc at ion .

65.  

 e l i gi b l e   p ro d u c t s   a re   l i s te d   i n   an n ex   i   to   t h e  tre at y   a n d   m u s t 
be essentially, in outermost regions, for human consumption or 
the manufac tur ing of other produc ts or as agr icultural inputs. 
t h e   m e m b e r   S t a t e s   m u s t   d r a w   u p   a   f o r e c a s t   s u p p l y   b a l a n c e 
q u a n t i f y i n g   t h e   a n n u a l   re q u i re m e n t s   fo r   t h e s e   p ro d u c t s.  th e 
amou nt s al lo cated annual l y to th e  S S as can not exce ed:

(a)  for t he  frenc h overse as depar tm ents:  2 0 7 00  0 00  euro;

(b)  for t he a zo res a nd m ade ira: 1 7 7 00  0 00  euro;

(c)  for t he  canar y isl and s:  72 7 00  0 00  euro;

(d)  for t he  smal ler  aeg ean  islands : 5  4 70  0 00  euro.

 t h e s e   s u m s   w e re   c a l c u l a t e d   b y   t h e   co m m i s s i o n   o n   t h e   b a s i s 
o f   a v e r a g e   e x p e n d i t u r e   i n   2 0 0 1 – 0 3 ,   t h e   l a s t   y e a r s   f o r   w h i c h 
d at a   we re   ava i l a b l e   at   t h e   t i m e   o f   t h e   re fo r m .  th e s e   a m o u nt s 
refle c t   use   o f  th e ‘aid ’  comp one nt   o f  th e   S Sas  at  th e  time  an d 
d o   n o t   t a k e   a c c o u n t   o f   t h e  ‘e x e m p t i o n   f r o m   c u s t o m s   d u t y ’ 
comp o nent.

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66.  

67.  

 Because of the limited resources available for the SS as, france, 
g re e ce   a n d   po r t u g a l   h ave   co n ce n t ra te d   f u n d s   o n   a i d   fo r   a n i -
m a l   f e e d   s o   a s   t o   a c h i e v e   s y n e r g i e s   w i t h   m e a s u r e s   f o r   l o c a l 
agr icultural produc ts. this approach, which complies with the 
regulations, aims to make efficient use of the limited resources 
available and increases the effec tiveness of the aid, according 
to t he e val uatio n co ns ul t ants.

 h o w e v e r,   t h e   c o u r t   b e l i e v e s   t h a t   i n   v i e w   o f   t h e   f i n a n c i a l   r e -
s o u r c e s   a v a i l a b l e   f o r   t h e   S S a s   a n d   t h e i r   c o n c e n t r a t i o n   o n 
a  sing l e  agr ic ul tu ral   p ro duc t   in  th re e  m ember   State s,   th e  SSa 
s c h e m e   c a n n o t   c o n t r i b u t e   i n   a   s u b s t a n t i a l   w a y   t o   t h e   o b j e c-
t i v e s   d e s c r i b e d   i n   t h e   r e g u l a t i o n ,   i n   p a r t i c u l a r,   t o   m i t i g a t e 
th e  d isadvant ages   su ffered  by  th e  oute r mo st   re gi on s  an d  t h e 
aegean islands. the budget available cannot have a significant 
i m p a c t   o n   t h e   p r i ce   o f   a   w i d e   ra n g e   o f   a gr i c u l t u ra l   p ro d u c t s, 
which is the ambitious objec tive of the scheme, since the legis-
lation envisages consumers, processing companies and farmers 
as the  final  be nefic iar ies.

t h e 	 c u r r e n t 	 co n t r o l 	 s ys t e m s 	 a r e 	 n ot 	 s u I t e d	
to 	t h e 	 d I V e r s e 	 n at u r e 	 o f 	t h e 	 m e a s u r e s

68.  

 i n  o rder  to  e nsu re  that   aid  is   effec ti ve,   n ot   onl y   m us t  el igi bil-
it y criteria be suited to the objec tives of the aid but fulfilment 
of  tho se  cr iter ia  mus t   b e  effec tive ly   c he c ke d.  for  this   reason, 
t h e   co u r t ’s   a u d i to r s   ex a m i n e d   t h e   co nt ro l   p ro ce d u re s   fo r   t h e 
selected measures and re -per formed some checks, in par ticular 
area  measu rements. 

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69.  

70.  

71.  

72.  

c h E c k s  i n  r E s p E c t  o f ml ap s

 the legislative requirements concer ning the management and 
contro l  system for the s p ecific  m eas ures  are  e ss ent ially  bas e d 
on the integrated administration and control system (iacS) for 
eagf direc t payments. thus, all aid applications are subjec t to 
administrative checks and a 5 % sample is checked on the spot. 

 however, in view of the diverse nature of the various measures 
contained in the programmes, the conditions for implementing 
co nt ro l   p ro ce d u re s   w h i c h   a re   a s   re l i a b l e   a s   t h o s e   o f   t h e   i ac S 
are n ot  al ways  s t ipul ated.

 i n  gree ce   fo r  examp le,   aid  for  hon ey   pro duc ti on   is   granted   to 
p ro d u c e r   o rg a n i s a t i o n s   t h a t   s u b m i t   a   p ro gr a m m e   co n t a i n i n g 
m e a s u r e s   t o   i m p r o v e   t h e   c o n d i t i o n s   i n   w h i c h   h o n e y   i s   p r o -
d u c e d   a n d   m a r k e t e d .   a i d   i s   p a i d   t o   p r o d u c e r   o r g a n i s a t i o n s 
f o l l o w i n g   a n   a d m i n i s t r a t i v e   c h e c k   o f   t h e   i n v o i c e s   t h e y   h a v e 
submitted. however, there is no control procedure for check ing 
whether the goods or ser vices covered by these invoices were 
a c t u a l l y   p r o v i d e d .  t h e   g r e e k   a u t h o r i t i e s   i n fo r m e d   t h e   co u r t 
th at  t hey we re g oin g to  adop t  ne w  control  procedure s.

 aid for olive groves under the single payment scheme is based 
on a theoretical area recorded in the olive - cultivation giS; this 
a r e a   i s   u s e d   t o   c a l c u l a t e   a n d   s e t t l e   s i n g l e   p a y m e n t   e n t i t l e -
ments. however, the aid for olive groves granted to the aegean 
islands under the specific measures created before the refor m 
of direct payments is based on the actual olive grove area culti-
vated by the farmer; ex tra checks are required because the two 
areas are not the same. however, the farming conditions (mixed 
crop s)   an d  top o grap hy  of   the  isla n ds  m ake  it   ver y   dif f ic ult   to 
measure the real area, as was confir med by the measurements 
ta ken  du r ing  the on-th e -sp o t audit.

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73.  

74.  

 i n Spain and por tugal, the systems for check ing areas covered 
b y   t h e   s p e c i f i c   m e a s u r e s   a r e   n o t   r e l i a b l e .   i n   S p a i n ,   t h e   f a c t 
th at  t he gi S co nt ains no  s p ecific code for  ban an a pl ot s ma k e s 
it  diff icul t  to   identify  su ch  p l ots.  i n   por t ug al,  t he  giS   was  n ot 
adju sted  to   th e  req uirements   o f  th e ‘ai d  for   plant   prod uc ti on’ 
m e a s u r e .   c o n s e q u e n t l y,   n e i t h e r   p r o d u c e r s   n o r   n a t i o n a l   i n -
s p e c to r s   a re   f a m i l i a r   w i t h   t h e   co nte nt s   o f   t h e   g i S .  wh e n   t h e y 
set  o u t,  w it h the  n ational  au dito r s and pro duce r s  i nvo lved,  to 
mea su re  the   se l ec ted  p arce ls   usin g  t h e  gp S   system,  the   audit 
team noticed that the results did not match those in the giS at 
all e ith er in o ut l ine or area,  and t h ere  we re  also  d oubt s about 
locat io n.

c h E c k s  i n  r E s p E c t  o f ssa s

 i n   t h e   c a s e   o f   t h e   S S a s ,   t h e   m e m b e r   S t a t e s   a r e   r e q u i r e d   t o 
c h e c k   w h e t h e r   t h e   e co n o m i c   a d va nt a g e   d e r i ve d   f ro m   t h e   a i d 
for customs- dut y introduc tion or exemption has ac tually been 
passed on to final beneficiaries. each m ember State was to de -
velop its own methodology to this end. no guideline or techni-
cal suppor t was provided by the commission in this area. all of 
the methods used are based on comparisons between the gross 
m a r g i n   o f   a   t r a d e r   i n t r o d u c i n g   g o o d s   i n   r e c e i p t   o f   S S a   a i d , 
e i t h e r   w i t h   a   p e r i o d   w i t h o u t   a i d   o r   w i t h   o t h e r   s i m i l a r   t ra d e r s 
w h o   d o   n o t   re ce i ve   a i d.  th e   e f fe c t i ve n e s s   o f   t h e s e   c h e c k s   e s-
s e nt i a l l y   d e p e n d s   o n   t h e   q u a l i t y   o f   t h e   d at a   to   b e   co m p a re d. 
however, the cour t noted that the qualit y of these data var ies 
cons ide rabl y.  i n france,  m argin s are compared wi th  t h ose  be -
fo re   t h e   S S as   we re   i nt ro d u ce d.   B y   t h e i r   ve r y   n at u re,   t h e   d at a 
fo r   co m p a r i s o n   a re   o l d   a n d   m ay   n o   l o n g e r   re f l e c t   t h e   c u r re nt 
e c o n o m i c   s i t u a t i o n .   i n   g re e c e,   t h e   d a t a   fo r   c o m p a r i s o n   we re 
u n re l i a b l e   b e c a u s e   t h e y   h a d   b e e n   o b t a i n e d   f ro m   a n   i n fo r m a l 
s u r ve y   o f   t ra d e r s   o n   t h e   m a i n l a n d.   i n   po r t u g a l,   ce r t a i n   i n fo r-
mation compiled ever y six months gives a par tial indication of 
whether or not the advantage der ived from the SS as has been 
p a s s e d   o n   t o   t h e   f i n a l   b e n e f i c i a r y.   i n   S p a i n ,   a l t h o u g h   a   c o n -
siderable effor t had been made by the consejería de economía 
d e   ca n a r i a s,   t h e   a u t h o r i t i e s   a c k n ow l e d g e d   t h at   t h e y   h a d   n o t 
man ag ed to  dev is e a con sistent  met h odol og y  for  es tabli sh i ng 
w h e t h e r   t h e   S S a   a d v a n t a g e   h a d   b e e n   p a s s e d   o n   t o   t h e   f i n a l 
use r.

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20  article 53b (2)(a) of council 
regulation (ec, euratom) 

no 1605/2002 of 25 June 2002 

on the financial regulation 

applicable to the general budget 

of the european communities 

(oJ l 248, 16.9.2002, p. 1).

21  article 48 of commission 
regulation (ec) no 793/2006 

of 12 april 2006 laying down 

certain detailed rules for applying 

regulation (ec) no 247/2006 

(oJ l 145, 31.5.2006, p. 1).

22  article 27 of regulation 
(ec, euratom) no 1605/2002 of 

25 June 2002.

75.  

76.  

a r e 	t h e 	 s u P P o r t 	 P r o G r a m m e s 	 d r aw n	
u P 	 by  t h e 	 m e m b e r 	 s tat e s 	 a n d 	 a P P r o V e d	
by 	t h e 	 co m m I s s I o n 	 m o n I to r e d 	 I n 	 a n	
e f f e c t I V e 	way ?

 t h e   c r i t e r i a   fo r   e v a l u a t i n g   t h i s   a u d i t   q u e s t i o n   w e r e   t h a t   t h e 
member States should ‘satisfy themselves that ac tions financed 
f r o m   t h e   b u d g e t   a r e   a c t u a l l y   c a r r i e d   o u t   a n d   t o   e n s u r e   t h a t 
t h e y   a re   i m p l e m e nte d   co r re c t l y ’ 2 0  a n d   t h at   t h e   a n n u a l   i m p l e -
mentation repor t presented by the m ember State should indi -
cate ‘ the progress of the measures and pr ior ities in relation to 
the specific and general objec tives on the date of presentation 
o f   t h e   r e p o r t ,   u s i n g   q u a n t i f i e d   i n d i c a t o r s ’ 2 1.   a s   r e g a r d s   t h e 
co m m i s s i o n ,   t h e   c r i t e r i o n   i s   t h a t   i t   s h o u l d   m o n i t o r  ‘a c h i e ve -
m e n t   o f   t h o s e   o b j e c t i v e s   [ … ]   b y   p e r f o r m a n c e   i n d i c a t o r s   f o r 
each activity ’ 22. in order to answer the audit question, the audi-
tors  examined  m onitor ing  p rocedures   at   th e   commiss ion  and 
in t he m em be r States.

t h e 	 co m m I s s I o n 	 co u l d 	 h aV e 	 m o n I to r e d	
t h e 	 P e r f o r m a n c e 	 o f 	t h e 	 s P e c I f I c 	 m e a s u r e s	
o n   a   m o r e 	 r e G u l a r 	 b a s I s

 t h e   fi n a n c i a l   r e g u l a t i o n   m a k e s   t h e   co m m i s s i o n   re s p o n s i b l e 
for using budgetar y appropriations in line with the principle of 
sou nd  f inancial   manag ement,   i.e.  wit h  th e   pr in ci ples   of  e con -
o my,   e f f i c i e n c y   a n d   e f fe c t i ve n e s s.   th e   p r i n c i p l e   o f   e f fe c t i ve -
n e s s   co n ce r n s   t h e   a c h i e ve m e n t   o f   t h e   s p e c i f i c   o b j e c t i ve s   s e t 
and  o f t he ant ic ip ated res ul ts. i n  orde r to mon itor th e results, 
specific, measurable, achievable, relevant and time -bound ob -
j e c t i ve s   m u s t   b e   s e t   fo r   a l l   s e c to r s   o f   a c t i v i t y   cove re d   by   t h e 
budget. the achievement of these objec tives is checked using 
p e r f o r m a n c e   i n d i c a t o r s   t h a t   a r e   d r a w n   u p   f o r   e a c h   a c t i v i t y, 
and   the   co mmis sio n  is   requ ired  to  provide   t he   bud g e tar y  au-
th o r it y e ach year w it h infor mat ion  a bout t he  expe n d iture  it  i s 
res po n sibl e fo r.

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77.  

78.  

79.  

 i n   t h e   i m p l e m e n t i n g   r u l e s   fo r   p o S e i   a n d   t h e   s m a l l e r   ae g e a n 
islands, the commission stipulated that the member States’ an-
nual implementation repor ts should provide financial and non- 
fina ncial   indic ator s  for   eac h  me asure,  foll owed   by  an  an al ysi s 
of the data and, where appropriate, a presentation and analysis 
of the sec tor concerned by the measure. i t should be expec ted 
t h a t   t h i s   i n fo r m a t i o n   s h o u l d   h e l p   t h e   co m m i s s i o n   d i s c h a r g e 
its o b l igatio n to mo nitor th e effe c tiven e ss of e u expe ndit ure. 

 h o w e v e r,   t h e   c o m m i s s i o n   t a k e s   t h e   v i e w   t h a t   t h e   m e a s u r e s 
wo u l d   b e   m o n i to re d   m o re   e f fe c t i ve l y   ove r   a   l o n g e r   p e r i o d.   i t 
believes that the five -year per iod stipulated in ar ticle 28(3) of 
regulation (ec ) no 247/2006 for submitting a repor t on the im -
pac t of the scheme to the european parliament and the council 
i s   re a s o n a b l e   fo r   t h e   p u r p o s e   o f   re a c h i n g   s i gn i f i c a n t   c o n c l u-
sions. the commission prepared this repor t on the basis, inter 
alia, o f t he e va luat ion rep or t ment ion ed  above.

 given  the  re quirem ent s  of  t he fin ancial r eg ulation, t he cour t 
believes that for the purposes of sound financial management 
t h e   co m m i s s i o n   s h o u l d   m o n i to r   t h e   p e r fo r m a n ce   o f   t h e   s p e -
c i f i c   m e a s u re s   o n   a n   a n n u a l   b a s i s.   a s   t h i n g s   s t a n d,   t h e   co m -
mission mainly confines itself to check ing whether the annual 
i m p l e m e n t a t i o n   re p o r t s   co m p l y   w i t h   t h e   re g u l a t i o n s.   fo r   e x -
ample, as regards per formance indicators, the commission has 
c o n f i n e d   i t s e l f   t o   c h e c k i n g   t h e i r   e x i s t e n c e   r a t h e r   t h a n   t h e i r 
appropriateness. a first attempt to analyse the repor ts for 2007 
in terms of programme per formance was made by dg agri’s co -
ordination unit for the specific measures in 2008. i t concluded 
t h a t   t h e   p e r f o r m a n c e   i n d i c a t o r s   u s e d   i n   t h e   r e p o r t s   a r e   t o o 
v a r i e d   t o   p r o v i d e   a n   o v e r a l l   e v a l u a t i o n   o f   t h e   p e r f o r m a n c e 
o f   t h e   s p e c i f i c   m e a s u re s.  th e   co m m i s s i o n   i nte n d s   to   p ro p o s e 
harmonised indicators in cooperation with the member States. 
this initiative is a first step towards a per formance information 
a n d   m a n a g e m e nt   s ys te m   fo r   t h e   s p e c i f i c   m e a s u re s.   h owe ve r, 
this initiative has come about only in 2010, the four th full year 
in w hic h t he refor m has ap p l ied.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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concluSionS and 
recommendationS

42

a r e 	t h e 	 s u P P o r t 	 P r o G r a m m e s 	 d r aw n 	 u P	
by  t h e 	 m e m b e r 	 s tat e s 	 a n d 	 a P P r o V e d 	 by	
t h e 	 co m m I s s I o n 	 d e s I G n e d 	 I n 	 s u c h 	 a 	way	
a s 	to 	 P r o V I d e 	 a n 	 e f f e c t I V e 	 r e s P o n s e	
to   s P e c I f I c 	 n e e d s ?

80.  

 t h e   c o u r t   c o n c l u d e s   t h a t   t h e   n e w   b o t t o m - u p,   d e c e n t r a l i s e d 
appro ach intro du ced by  the 2 00 6  refor m of  th e  spe c if ic  m eas-
u re s   h a s   n o t   b e e n   s u f f i c i e nt l y   t a k e n   a d va nt a g e   o f   i n   o rd e r   to 
imp rove  th e  effec t ivenes s   o f  th e  ex is ti n g  me asures.   i t  proved 
t o   b e   a   r e a l   c h a l l e n g e   f o r   t h e   n a t i o n a l   a u t h o r i t i e s   b e c a u s e 
t h e   a p p ro a c h   w a s   n e w,   t h e   p ro c e d u re   w a s   d i f f i c u l t ,   t h e   t i m e 
ava il ab le  (t wo mo nths ) was sh or t  an d th e commiss ion  did not 
provide sufficient technical or financial suppor t. the commis-
s i o n   g ave   p r i o r i t y   to   i t s   ro l e   o f   c h e c k i n g   t h e   co m p l i a n ce   a n d 
consistenc y of the programmes rather than to its management 
responsibilities and to ac tively helping to ensure that the pro -
grammes’ design optimised their impac t. this fac t constituted 
a   s i g n i f i c a n t   h a n d i c a p   t o   t h e   n e w   s p e c i f i c   m e a s u r e s   b e i n g 
launc he d as effec tivel y as p o ssible.

r e c o m m e n d at I o n 	 1

f o r   f u t u r e   p r o g r a m m i n g   o f   s p e c i f i c   m e a s u r e s ,   t h e   c o m -
m issi o n   sh o u l d   h e lp   th e   m e m b e r   St ate s   d r aw   u p   th e i r   p r o -
g r a m m e s   b y   p r o m o t i n g   b e s t   p r a c t i c e s   a n d   b y   d e f i n i n g 
a   h a r m o n is e d   f r a m e wo r k   o f   i n d i c ato r s   f o r   m o n i to r i n g   p r o -
gramme p er formance. t he indicators should at least include 
information ab out e conomic changes (e.g. pro duc tion value 
a n d   a d d e d   v a l u e)   a n d   s o c i a l   c h a n g e s   (e . g .   j o b s   c r e a t e d   o r 
p re s e r ve d). 

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81.  

 the 1 august deadline for amending the programmes limits the 
m e m b e r   St ate s’  a b i l i t y   to   p ro p o s e   d u l y   s u b s t a nt i ate d   a m e n d -
m e nt s   a n d   m ay   t h e re fo re   b e   d e t r i m e nt a l   to   t h e   e f fe c t i ve n e s s 
o f   t h e   p r o g r a m m e s .   m o r e o v e r,   t h e   o b j e c t i v e   o f   i n c r e a s i n g 
flexib ilit y has  no t b een ac hieved  (s ee  paragra ph s  3 7   to   41 ).

r e c o m m e n d at I o n 	 2

t h e   c o m m i s s i o n   s h o u l d   r e c o n s i d e r   t h e   1   a u g u s t   n  –  1 
d e a d l i n e   f o r   f o r m a l l y   a p p r o v i n g   p r o g r a m m e   a m e n d m e n t s 
s o   t h at   th e   m e m b e r   St ate s   p o ss e ss   re lia b l e   i n f o r m ati o n   o n 
t h e   p r e v i o u s   y e a r ’s   e x p e n d i t u r e   w h e n   t h e y   a r e   p r e p a r i n g 
am e n dm e nt s .

h aV e 	t h e 	 m e a s u r e s 	 d e s I G n e d 	 by 	t h e	
m e m b e r 	 s tat e s 	 s I n c e 	t h e 	 2 00 6	 r e f o r m	
b e e n   I m P l e m e n t e d 	 e f f e c t I V e ly ?

82.  

 in general, the cour t concludes that the programmes are imple -
mente d e ffe c t ivel y and thu s  m ee t th e n e eds  o f t he  oute r mos t 
r e g i o n s   a n d   t h e   a e g e a n   i s l a n d s .   h o w e v e r,   t h e   c o u r t ’s   a u d i t 
ide nt ified a s er ies  o f measu res wh ose  de si gn li mi ted  t he ir  i m-
pleme nt atio n as  reg ards  effec tiven e ss:

(a)  th e   o b j e c t i ve   o f   m a i n t a i n i n g   o l i ve   grove s   o n   t h e   s m a l l e r 
ae g e a n   i s l a n d s   co u l d   h ave   b e e n   m o re   e f fe c t i ve   i f   g re e ce 
had required the maintenance of olive groves in the frame -
wo r k   o f   c ro s s - c o m p l i a n c e,   a s   i s   t h e   c a s e,   fo r   e x a m p l e,   i n 
i t al y.

(b)   t h e   e f f e c t i v e n e s s   o f   f i n a n c i n g   a i d   f o r   i n n o v a t i o n   a n d 
t h e   q u a l i t y   o f   m i l k   p ro d u c t s   i n   t h e   a z o re s   h a s   n o t   b e e n 
d e m o n s t rate d.

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(c)  aid for banana producers, although effective in terms of its 
socio - economic objec tive, does not really help to maintain 
enviro nment a l e q uil ib r iu m.

(d)  fl a t - r a t e   a i d   fo r   t h e   s u g a r   i n d u s t r y   o n   r é u n i o n   c u r re n t l y 
e n s u re s   t h at   t h e   s e c to r   re m a i n s   o p e rat i o n a l.   h owe ve r,   a s 
i t   i s   v e r y   f r a g i l e,   t h e   e f fe c t i ve n e s s   o f   e u   a i d   d e p e n d s   o n 
add itio nal natio nal  aid.

(e)  lastly, the amounts allocated to the SSas in greece, france 
a n d   po r t u g a l   a r e   t o o   s m a l l   t o   h a v e   a n   i m p a c t   o n   a   l a r g e 
rang e o f far m p ro du c ts. 

r e c o m m e n d at I o n 	 3

t h e m e m b e r St ate s sh o u l d m o di f y  th e m e asure s  co n ce r n e d 
s o   a s   t o   r e c t i f y   t h e   w e a k n e s s e s   l i s t e d   i n   p a r a g r a p h s   4 4   t o 
67   b y   i m p l e m e n t i n g   t h e   b o t t o m - u p   a p p r o a c h   i n   co n s u l t a -
tion with s t akeholder s on site. t he commission’s evaluation 
r e p o r t   s h o u l d   a l s o   s e r v e   t o   i d e n t i f y   i n e f f e c t i v e   m e a s u r e s 
w h os e d e si g n co ul d b e imp rove d .

83.  

 th e   m e m b e r   St ate s’  co nt ro l   p ro ce d u re s   a re   n o t   a l ways   s u i te d 
to t he d iver se nat ure o f the s pec i fi c m ea sures.

r e c o m m e n d at I o n 	 4

t h e   m e m b e r   St a t e s   s h o u l d   d e v i s e   co n t r o l   p r o ce d u r e s   t h a t 
are sui te d to ea ch t y p e of m easure. in p ar ticular, th ey mus t 
ensure that their system for identif ying farmland is regularly 
u p d a t e d .   f o r   i t s   p a r t ,   t h e   c o m m i s s i o n   s h o u l d   e n s u r e   t h a t 
th e s e co ntro l  p ro ce dure s  wo r k  e f f e c ti ve l y.

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a r e 	t h e 	 s u P P o r t 	 P r o G r a m m e s 	 d r aw n	
u P 	 by  t h e 	 m e m b e r 	 s tat e s 	 a n d 	 a P P r o V e d	
by 	t h e 	 co m m I s s I o n 	 m o n I to r e d 	 I n 	 a n	
e f f e c t I V e 	way ?

84.  

 the cour t concludes that current programme monitoring is not 
e f fe c t i ve.  th e   co m m i s s i o n   l a i d   t h e   fo u n d at i o n s   o f   a   p e r fo r m -
a n ce   m a n a g e m e nt   s ys te m   by   re q u i r i n g   t h e   m e m b e r   S t a te s   to 
p rov i d e   d e t a i l s   o f   p e r fo r m a n ce   i n d i c ato r s   i n   t h e i r   a n n u a l   i m -
p l e m e n t a t i o n   re p o r t s.   h o we ve r,   t h e   i n d i c a t o r s   d e ve l o p e d   b y 
the member States are too varied for the commission to be able 
to d raw  co nc lu sio ns  ab ou t t he p er for man ce  of  all  t h e spe c if i c 
measures, although cer tain information may be used in a more 
re l e v a n t   w ay.  t h e   co m m i s s i o n’s   p l a n n e d   i n i t i a t i ve   t o   d i s c u s s 
a   c o m m o n   f r a m e w o r k   w i t h   t h e   m e m b e r   S t a t e s   i s   a   f i r s t   s t e p 
t o w a rd s   a   p e r fo r m a n c e - m a n a g e m e n t   i n fo r m a t i o n   s y s t e m   fo r 
the specific measures. until such a framework exists, there is no 
infor mation system based on common per for mance indicators 
to enable the commission as an institution to evaluate in good 
tim e  th e  way   b udg etar y  ap p ropr i ati on s  for   t h e  spe c if ic   m e as -
u r e s   c o n t r i b u t e   t o   t h e   c a p ’s   o b j e c t i v e s .   r e c o m m e n d a t i o n   1 
concerning a harmonised framework of indicators for monitor -
ing  p ro gramme  p er fo r mance als o a ppl ie s  to th is  obs er vat ion .

r e c o m m e n d at I o n 	 5

the commission should use the information provided by the 
m e m b e r   St a t e s   t o   m o n i to r   p r o g r a m m e   p e r f o r m a n ce   o n   a n 
annu al  b asis ,  in clu din g inf o r m ati o n th at  alre a d y e x is t s an d 
inf o r m ati o n ye t  to  b e p rov i d e d in  f ull .

 t h is   r e p o r t   w a s   a d o p te d   b y   ch a m b e r   i ,   h e a d e d   by   m r   m i c h e l 
cretin, m emb er of the cour t of auditor s, in lu xemb ourg, at it s 
m e e tin g  o f  6  o c to b e r 2010.

Fo r  th e  Co u r t o f  Au dito r s

ví to r m anu e l da Si lva c ald ei r a
Presi d e nt

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

	
 
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a n n e x 	 I

b u d G e ta r y 	 I m P l e m e n tat I o n 	 o f 	t h e 	 s P e c I f I c 	 m e a s u r e s

Title 
Chapter 
Article 
Item

05 02 11 04

05 03 02 50

05 03 02 51

Heading

Appropria-
tions 2010 
(euro)

Appropria-
tions 2009 
(euro)

Appropria-
tions 2008 
(euro)

Out-turn 
2008 
(euro)

%

Appropria-
tions 2007 
(euro)

Out-turn 
2007 
(euro)

%

POSEI (excluding 
direct aids and MARE 
11 02 03)

POSEI — EU support 
programmes

POSEI — Other 
direct aids and earlier 
regimes

231 000 000  235 000 000  220 000 000  232 679 194 

105,8 212 000 000  201 226 010 

94,9

394 000 000  377 000 000  377 000 000  372 255 721 

98,7

64 000 000 

63 765 532 

99,6

22 000 000 

22 000 000 

22 000 000 

21 191 445 

96,3

3 000 000 

3 791 612 

126,4

05 03 02 52

POSEI — Aegean 
Islands

18 000 000 

18 000 000 

19 000 000 

16 791 929 

88,4

13 550 000 

13 528 383 

99,8

Total 665 000 000  652 000 000  638 000 000  642 918 289 

100,8 292 550 000  282 311 537 

96,5

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a n n e x 	 I I

l I s t 	 o f 	 au d I t e d 	 m e a s u r e s

The amounts shown below are the total expenditure for the measures listed. Please not that the regions audited on the spot by the European Court 
of Auditors were Réunion (France), the Canary Islands (Spain), the island of Chios (Greece) and the Azores (Portugal)

France1 (all overseas departments)

 ο Specific supply arrangements

 ο Aid for banana producers

 ο Cane-sugar-rum sector (with measures such as flat-rate aid for 
adjustment to the CMO by the sugar industry in the overseas 
departments, and aid for cane transport) 

 ο Structuring of livestock breeding (with measures such as spe-
cial processing aid for the beef and veal sector and special aid 
for the management of the local pork market)

Spain2

 ο Specific supply arrangements

 ο Aid for the sheep and goat sector in the form of direct producer 

payments

2008 
payments 
(euro)

2007 
payments 
(euro)

‘Implementation’ 
finding

‘Monitoring 
system’ finding

19 601 176

19 633 602

Paragraphs 64 – 67

Paragraph 74

129 100 000

129 052 597

Paragraphs 50 – 55

71 165 224

64 308 347

Paragraphs 56 – 63

 19 779 394

18 402 827

69 151 890

69 541 851

7 485 063

6 978 313

-

-

-

-

-

-

Paragraph 74

-

 ο Aid for banana producers

139 706 006

138 836 153

Paragraphs 50 – 55

Paragraph 73

Portugal3

 ο Specific supply arrangements

6 255 681

5 926 618

Paragraphs 64 – 67

Paragraph 74

 ο Aid for animal production (with measures such as direct aid 
for beef and veal production and aid for innovation and the 
quality of animal products in the Azores)

 ο Aid for plant production (with measures such as aid for the 
production of traditional crops and aid for the production of 
fruit and vegetables, cut flowers and ornamental plants)

34 001 000

33 750 370

Paragraphs 48 – 49

7 049 000

6 571 170

-

Paragraph 73

Greece (island of Chios)4

 ο Specific supply arrangements

 ο Aid for olive groves

 ο Aid for mastic production

 ο Aid for honey production

5 050 453

4 781 251

Paragraphs 64 – 67

Paragraph 74

11 200 034

11 372 595

Paragraphs 44 – 47

Paragraph 72

849 821

885 304

1 187 234

1 194 180

-

-

-

Paragraph 71

 Source: Odeadom, FranceAgriMer annual implementation report for 2008.

1 
2  Source: Canary Islands Ministry of Agriculture, Livestock, Fisheries and Food, Report on the implementation of the special supply arrangements for 2008 and 2007.
3 
 Regional Secretariat of Agriculture and Forestry, Report on the implementation of the sub-programme for the Autonomous Region of the Azores under the overall 
programme for Portugal.
 The data are based on information currently available in the 2008 annual implementation report and refer to the amounts listed in the total budget available for each 
measure and for all islands, except for the SSAs which include the overall amounts paid.

4 

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reply of the 
commiSSion

a d a p t i n g   m e m b e r   S t a t e s ’  m o n i t o r i n g 
a r r a n g e m e n t s   t o   t h e   s p e c i f i c   m e a s -
u r e s   i s   o n e   o f   t h e   a s p e c t s   t a k e n   i n t o 
a cco u nt   d u r i n g   a u d i t s   c a r r i e d   o u t   by   t h e 
commiss ion.

V II I.
a n   i n - d e p t h   g l o b a l   e v a l u a t i o n   o f   t h e 
i m p a c t   o f   t h e   p r o g r a m m e s   i s ,   a d m i t -
te d l y,   c a r r i e d   o u t   o n l y   at   f i ve -ye a r   i nte r-
va l s,   a s   re q u i re d   by   t h e   re g u l at i o n .   h ow-
e v e r,   r e g u l a r   m o n i t o r i n g   i s   c o n d u c t e d 
b y   m e a n s   o f   o n g o i n g   c o n t a c t s   w i t h   t h e 
national author ities and the annual evalu-
a t i o n   o f   i m p l e m e n t a t i o n   r e p o r t s   s u b -
mitted  by m ember  States. 

t h e   c o m m i s s i o n   a g r e e s   w i t h   t h e   c o u r t 
t h a t   t h e s e   r e p o r t s   a r e   n o t   h a r m o n i s e d , 
a n d   i t   h a s   w o r k e d   w i t h   t h e   r e l e v a n t 
n a t i o n a l   a u t h o r i t i e s   t o   d e f i n e   c o m m o n 
i n d i c ato r s   to   b e   u s e d   e a c h   ye a r   to   m o n i -
tor all programmes from 2011 on (see the 
commiss ion’s reply  to point 36 ) .

executIVe	summary

V–VII.
i n accordance with the regulation follow-
ing the 2006 refor m on specific measures 
fo r   a g r i c u l t u re   i n   t h e   o u t e r m o s t   re g i o n s 
o f   t h e   u n i o n   a n d   t h e   a e g e a n   i s l a n d s , 
m e m b e r   S t a t e s   m u s t   d e f i n e   t h e i r   s t r a t -
e g y,   t h e   o b j e c t i v e s   t o   b e   p u r s u e d   a n d 
t h e   m o s t   s u i t a b l e   m e a s u r e s   t o   s u p p o r t 
a gr i c u l t u re   i n   t h e i r   re gi o n s.  th e   co m m i s -
s i o n’s   r o l e   i s   e s s e n t i a l l y   t o   e n s u r e   t h a t 
t h e   p r o p o s e d   m e a s u r e s   a r e   i n   l i n e   w i t h 
eu legis l at io n.

a t   t h e   s t a r t   o f   t h e   p r o g r a m m i n g ,   m e m -
b e r   St ate s   g e n e ra l l y   o p te d   fo r   co nt i n u i t y 
w i t h   p r e v i o u s   s c h e m e s   a n d   f o r   g r a d u a l 
i m p r o v e m e n t   i n v o l v i n g   a n n u a l   p r o -
g r a m m e   a m e n d m e n t s .   t h e   c o m m i s s i o n 
a c c e p t e d   t h i s   a p p r o a c h   a n d   s u p p o r t e d 
the national author ities in their program -
ming and adm inist rat ion  task s. 

h o w e v e r,   i t   a g r e e s   w i t h   t h e   c o u r t   t h a t 
t h e   s c h e m e s   m u s t   b e   m o n i t o r e d   t o 
e n s u r e   t h a t   t h e y   a r e   e f f e c t i v e .   fo r   t h i s 
re a s o n ,   t h e   co m m i s s i o n   i s   i n   e f fe c t   h e l p -
i n g   m e m b e r   S t a t e s   t o   i m p r o v e   t h e   p r o -
p o s e d   m e a s u r e s   a n d   t o   s e e k   s o l u t i o n s 
with them to make the programmes more 
efficient.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

IntroductIon

audIt	scoPe	and	aPProach

2 0(b)
m ember States are required to implement 
a r r a n g e m e n t s   fo r   m a n a g e m e n t ,   ve r i f i c a -
t i o n   a n d   i m p o s i n g   p e n a l t i e s   i n   l i n e   w i t h 
t h e   r e g u l a t o r y   p r i n c i p l e s .   t h e   c o m m i s -
s i o n   r e g u l a r l y   c o n d u c t s   a u d i t s   t o   c h e c k 
t h a t   t h e s e   a r r a n g e m e n t s   a re   c o m p a t i b l e 
w i t h   e u   l e g i s l a t i o n   a n d   t h a t   t h e y   a r e 
effec t ive.

15 .
pre p a r a t i o n   o f   t h e   re p o r t   i n d i c a t i n g   t h e 
i m p a c t   o f   t h e   m e a s u r e s   t a k e n   fo l l o w i n g 
the 2006 refor m of the poSei 1 programme 
( t h e   p o S e i   r e p o r t )   w a s   p o s t p o n e d   f o r 
a   f e w   m o n t h s   i n   o r d e r   t o   t a k e   i n t o 
a c c o u n t   n o t   o n l y   t h e   e v a l u a t i o n   r e p o r t 
o r d e r e d   b y   t h e   c o m m i s s i o n   u n d e r   t h e 
fi n a n c i a l   r e g u l a t i o n   a n d   c o m p l e t e d   a t 
t h e   e n d   o f   2 0 0 9 ,   b u t   a l s o   m a r k e t   d e v e l -
o p m e n t s   i n   2 0 0 9   ( t h i r d   y e a r   o f   i m p l e -
m e n t a t i o n   o f   t h e   p r o g r a m m e s   a f t e r   t h e 
r e f o r m )   a n d   t h e   n e g o t i a t i o n s   o n   t a r i f f 
re d u c t i o n s   fo r   b a n a n a   i m p o r t s   f ro m   n o n -
member countr ies (initialled bet ween the 
e n d   o f   2 0 0 9   a n d   m i d - 2 0 1 0 ) ,   a   c r u c i a l l y 
impor tant matter for all the ‘poSei’ m em-
ber States. 

i n   a d d i t i o n ,   t h e   p o S e i   p r o g r a m m e s 
s t a r t e d   o n l y   a t   t h e   e n d   o f   2 0 0 6   o r   e v e n 
at the beginning of 2007. a repor t on the 
i m p a c t   o f   t h e   re fo r m   c o m p l e t e d   i n   2 0 0 9 
would not, therefore, have covered a suf-
f i c i e nt l y   l o n g   p e r i o d   to   a l l ow   t h i s   i m p a c t 
to be  ass essed.

1  article 28(3) of council regulation (ec) no 247/2006.

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Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

fIndInGs

27 .
t h e   c o m m i s s i o n   c o n s i d e r s   t h a t ,   a s 
r e g a r d s   t h e   i n i t i a l   d r a f t i n g   o f   t h e   g r e e k 
p r o g r a m m e ,   t h e   p r o b l e m   w a s   n o t   t h e 
t i g h t   d e a d l i n e   i m p o s e d   o n   t h e   r e g i o n a l 
a u t h o r i t i e s   i n   2 0 0 6   to   m a k e   p ro p o s a l s   o n 
the  measu res to  b e ad op te d.

2 9.
S p a i n ,   po r t u g a l   a n d   g r e e c e   h a v e   e s s e n -
t i a l l y   i n c l u d e d   i n   t h e i r   r e s p e c t i v e   p r o -
g r a m m e s   t h e   a r r a n g e m e n t s   d a t i n g   f r o m 
b e f o r e   t h e   r e f o r m ,   w h i c h   a l l o w   g r a d u a l 
i m p r o v e m e n t s   t o   b e   m a d e   b y   m e a n s   o f 
an nual amen dments. 

t h e   r e a l   p r o b l e m   w a s   t h e   l a c k   o f   t h o r -
o u g h   e v a l u a t i o n   o f   t h e   i m p a c t   o f   t h e 
m e a s u r e s   a d o p t e d   a n d ,   c o n s e q u e n t l y, 
t h e   f a i l u re   to   a d a p t   t h e   p ro gra m m e   ove r 
t h e   y e a r s   ( t h e   g r e e k   p r o g r a m m e   w a s 
a m e n d e d   o n l y   i n   2 0 0 9 ;   a   f u r t h e r   a m e n d -
m e n t   h a s   j u s t   b e e n   s u b m i t t e d   t o   t h e 
comm iss ion fo r 20 11 ).

f o r   t h i s   r e a s o n   t h e   c o m m i s s i o n   s e n t 
a   l e t te r   to   t h e   g re e k   a u t h o r i t i e s   i n   o c to -
b e r   2 0 0 9   h i g h l i g ht i n g   t h e   i n a d e q u a c y   o f 
t h e   i m p l e m e n t a t i o n   r e p o r t s   s u b m i t t e d 
f o r   2 0 0 7   a n d   2 0 0 8 ,   a n d   p r o p o s i n g   t h e 
i n t r o d u c t i o n   o f   a   t e c h n i c a l   a s s i s t a n c e 
m e a s u r e   i n   t h e i r   p r o g r a m m e   t o   f i n a n c e 
t h e   d ra f t i n g   o f   a n n u a l   re p o r t s   by   p ro fe s -
sion al cons ult a nt s.

th i s   i s   a   g o o d   ex a m p l e   o f   t h e   a c t i ve   ro l e 
p l a y e d   b y   t h e   c o m m i s s i o n   i n   p r o v i d i n g 
a s s i s t a n c e   t o   m e m b e r   S t a t e s   t o   m a k e 
programming and programme evaluation 
more effec t ive.

28 .
a c c o r d i n g   t o   t h e   c o m m i s s i o n ’s   i n f o r -
m a t i o n ,   r e g u l a r   c o n s u l t a t i o n s   a r e   h e l d 
b e t w e e n   t h e   c o m p e t e n t   S p a n i s h   a n d 
p o r t u g u e s e   a u t h o r i t i e s   a n d   t h e   l o c a l 
e c o n o m i c   p l a y e r s .   t h e s e   c o n s u l t a t i o n s 
for m t he b asis fo r t he ann u al  p rogram me 
amend ments. 

th i s   a p p ro a c h   i s   a p p rove d   i n   t h e   re g u l a -
t i o n   a n d   a cce p te d   by   t h e   co m m i s s i o n   i n 
o r d e r   t o   f a c i l i t a t e   t h e   l a u n c h i n g   o f   p r o -
gram mes followin g the  2 00 6  refor m .

3 0–3 1 .
w h e n   t h e   p o S e i   p r o g r a m m e   w a s   s e t   u p 
f o r   t h e   c a n a r y   i s l a n d s ,   S p a i n   d e c i d e d 
t o   c o n t i n u e   w i t h   t h e   m e a s u r e s   i n   f o r c e 
unde r t he previous  ar ran gement s. 

h owe ve r,   e a c h   ye a r   w h e n   t h e   i m p l e m e n -
t a t i o n   o f   t h e   p ro g r a m m e   i s   b e i n g   e v a l u -
a t e d ,   t h e   S p a n i s h   a u t h o r i t i e s   p r o p o s e 
a m e n d m e n t s   t o   m a k e   t h e   p r o g r a m m e 
m o re   e f fe c t i ve,   s o m e t i m e s   at   t h e   re q u e s t 
o f   a n d   w i t h   t h e   co o p e rat i o n   o f   t h e   co m -
mission (for instance, the introduc tion of 
a suppor t strategy for the tomato - expor t-
i n g   s e c t o r ;   g r a d u a l   re d u c t i o n   i n   i n d i v i d-
u a l   a i d   f o r   p u r c h a s e s   o f   p r o d u c t s   t h a t 
might compete with local produc ts, etc.).

3 2.
a s   i n   t h e   c a s e   o f   t h e   c a n a r y   i s l a n d s,   t h e 
po r t u g u e s e   a u t h o r i t i e s   d e c i d e d   t o   c o n -
t i n u e   w i t h   t h e   m e a s u r e s   i n   f o r c e   u n d e r 
t h e   p r e v i o u s   a r r a n g e m e n t s ,   p r o p o s i n g 
amendments to the programme each year 
to m ake  it  more  e ffe c t ive.

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reply of the 
commiSSion

32 (d)
a t   t h e   r e q u e s t   o f   t h e   c o m m i s s i o n ,   t h e 
p o r t u g u e s e   a u t h o r i t i e s   c a r r i e d   o u t   a n 
i n - d e p t h   s t u d y   o n   t h e   s i t u a t i o n   i n   t h e 
sugar beet produc tion and processing sec -
tor in the a zores at the beginning of 2010.

33 .
the a zores case is a good example of the 
gradual improvement of a programme on 
the  ba sis o f co nt inu it y.

the po Sei  s ub -pro gramme fo r t he a zores 
h a s   b e e n   a m e n d e d   e a c h   y e a r   t o   m a k e 
t h e   m e a s u re s   t o   a s s i s t   l o c a l   a g r i c u l t u r a l 
p r o d u c t s   ( m l a ps )   m o r e   c o n s i s t e n t   w i t h 
t h e   s t r a t e g y   a d o p t e d   b y   t h e   r e g i o n a l 
g o v e r n m e n t ,   i n   p a r t i c u l a r   t h e   i n c e n t i v e 
to divers if y agr i cu l tu ral  ac tivitie s. 

i n   t h i s   c o n t e x t ,   t h e   c o m p e t e n t   a u t h o r i -
t i e s   c o n s i d e r a b l y   i n c r e a s e d   t h e   a i d   f o r 
a l t e r n a t i ve   t r a d i t i o n a l   c ro p s,   i n   p a r t i c u -
l a r   s u g a r b e e t ,   p o t a t o e s ,   c h i c o r y   a n d 
t e a   ( f r o m   8 0 0   t o   1   5 0 0   e u r o / h a   i n   t h r e e 
s t a g e s   i n   2 0 0 7 ,   2 0 0 9   a n d   2 0 1 1 ) .  t h e   a i m 
w a s   t o   p ro m o t e   d i ve r s i t y   o f   a g r i c u l t u r a l 
p r o d u c t s   c o m p a r e d   w i t h   h i g h - g r o w t h 
regional  sec to rs  s uch  as  mil k an d  be e f.

34 .
t h e   g e n e r a l   o b j e c t i v e   o f   t h e   g r e e k   p r o -
g r a m m e ,   w h o s e   f i n a n c i a l   d i m e n s i o n   i s 
m u c h   s m a l l e r   t h a n   t h at   o f   t h e   p o S e i   p ro -
g r a m m e s ,   i s   t o   g u a r a n t e e   t h e   f u t u r e   o f 
c e r t a i n   l o c a l   p ro d u c t s   t h a t   a re   a t   r i s k   o f 
disapp ear in g. 

t h i s   i n v o l v e s   a   w i d e   v a r i e t y   o f   m e a s -
u re s   m a i n l y   a i m e d   at   i m p rov i n g   t h e   ve r y 
t o u g h   w o r k i n g   c o n d i t i o n s   o f   f a r m e r s 
scattered over h undreds o f sma l l i sl an ds.

g i v e n   t h e   v a r i e t y   o f   m e a s u r e s   a n d   t h e 
r e l a t i v e l y   s m a l l   a m o u n t   o f   f i n a n c i n g 
a v a i l a b l e ,   i t   i s   d i f f i c u l t   t o   i m p l e m e n t 
a complex g lobal strateg y.

h o w e v e r,   t h e   c o m m i s s i o n   d o e s   a g r e e 
with the cour t that the greek programme 
c o u l d   b e   i m p r o v e d .   i t   h a s   p r o p o s e d   t o 
t h e   g re e k   a u t h o r i t i e s   t h at   t h e y   m a k e   u s e 
o f   t h e   f i n a n c i n g   a v a i l a b l e   a s   t e c h n i c a l 
assistance (see the commission’s reply to 
point  2 7) .

3 5.
t h e   c o m m i s s i o n   c o n s i d e r s   t h a t   i t   d o e s 
n o t   n e e d   t o   m i c r o - m a n a g e   t h e s e   p r o -
g r a m m e s .   h o w e v e r,   i t   a g r e e s   w i t h   t h e 
c o u r t   t h a t   t h e r e   i s   a   n e e d   f o r   c o n s i s t -
e n c y   a n d   e f fe c t i ve n e s s.  th e   co m m i s s i o n 
h as th erefore embar k ed on con sult at ion s 
with the poSei m ember States in order to 
def ine a set  of  common  in dic ato r s. 

t h e   g u i d e l i n e s   f o r   t h e   i n i t i a l   p r o g r a m -
m i n g   w e r e   n o t ,   a d m i t t e d l y ,   f o r m a l l y 
addres sed to greece. 

however, close contac ts were maintained 
c o n t i n u o u s l y   w i t h   t h e   n a t i o n a l   a u t h o r i -
t i e s   b e f o r e   a n d   d u r i n g   t h e   p r e p a r a t i o n 
o f   t h e   g r e e k   p r o g r a m m e,   w i t h   t h e   co m -
m i s s i o n   a s s i s t i n g   t h e m   i n   d r a f t i n g   t h e i r 
program me.

3 6.
d u r i n g   t h e   r e f o r m ,   i n   a c c o r d a n c e   w i t h 
t h e   r e g u l a t o r y   p r o v i s i o n s   a n d   w i t h i n 
t h e   d e a d l i n e   l a i d   d ow n ,   t h e   co m m i s s i o n 
examined the programmes to ensure that 
t h e y   co m p l i e d   w i t h   t h e   a p p l i c a b l e   l e gi s-
lation  before  approving the m. 

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Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

th e   co m m i s s i o n   d i d   n o t   i m p o s e   t h e   co n -
te nt   o f   t h e   p ro gra m m e s   b e c a u s e   re s p o n -
s i b i l i t y   f o r   e s t a b l i s h i n g   a   p r o g r a m m i n g 
strategy had been entrusted to the m em-
b e r   St ate s   a s   i t   wa s   co n s i d e re d   t h at   t h e y 
w e r e   i n   t h e   b e s t   p o s i t i o n   t o   i d e n t i f y 
needs and define the most suitable meas-
ures  to  mee t th em. 

a s   s t a t e d   a b o v e ,   t h e   c o m m i s s i o n   o p t e d 
f o r   c o n t i n u i t y   i n   o r d e r   t o   f a c i l i t a t e   t h e 
l a u n c h i n g   o f   t h e   n e w   p r o g r a m m i n g 
p r o c e s s ,   i n   t h e   k n o w l e d g e   t h a t   r e g u l a r 
c h a n g e s   w o u l d   h a v e   t o   b e   m a d e   a f t e r -
wa rds  to  imp rove th e p rogram me s.

t h e   c o m m i s s i o n ’s   d e f i n i t i o n   o f   h a r -
m o n i s e d   p e r f o r m a n c e   i n d i c a t o r s   w a s 
r e n d e r e d   v e r y   d i f f i c u l t   b y   t h e   n o v e l t y 
o f   t h i s   p r o g r a m m i n g   a p p r o a c h   a n d   t h e 
e x t r e m e l y   d i f f e r e n t   m e a s u r e s   i n   e a c h 
p r o g r a m m e .   t h e   c o m m i s s i o n   t h e r e f o r e 
a s k e d   t h e   m e m b e r   S t a te s   t o   d e f i n e   t h e i r 
own  indic ators.

n e v e r t h e l e s s ,   i t   q u i c k l y   b e c a m e   a w a r e 
o f   t h e   d i f f i c u l t y   o f   e va l u at i n g   t h e   re s u l t s 
o f   t h e s e   p r o g r a m m e s   i n   a   u n i f o r m   w a y 
b e c a u s e   o f   t h e   l a c k   o f   c o m m o n   i n d i c a -
to r s.   i t   t h e re fo re   h e l d   co n s u l t at i o n s   w i t h 
t h e   m e m b e r   S t a t e s   c o n c e r n e d   i n   o r d e r 
t o   i d e n t i f y   a   s e t   o f   i n d i c a t o r s   c o v e r i n g 
t h e   e f f e c t i v e n e s s   o f   t h e   m e a s u r e s   t o   b e 
u s e d   t o   e v a l u a t e   a l l   t h e   p r o g r a m m e s   a s 
of 2 011.

38 –39 .
t h e   p r o g r a m m e   a m e n d m e n t s   f o r   2 0 0 9 
were approved af ter the beginning of the 
y e a r   o f   a p p l i c a t i o n   b e c a u s e   t h e r e   w a s 
n o t   e n o u g h   t i m e   to   a d o p t   a p p rova l   d e c i-
s i o n s,   s i n c e   t h e   d e a d l i n e   fo r   s u b m i t t i n g 
p ro p o s a l s   fo r   a m e n d m e n t s   h a d   b e e n   s e t 
at  30 S ep temb e r o f the p revio u s ye ar. 

i n   t h e   c a s e   o f   S p a i n ,   t h e   a m e n d m e n t 
h a d   b e e n   a p p r o v e d   o n l y   i n   m a y   2 0 0 9 
b e c a u s e   o f   t h e   c o m m i s s i o n ’s   r e q u e s t 
t o   i m p r o v e   t h e   a c t i o n   p l a n   s u b m i t -
t e d   i n   o r d e r   t o   r e s t r u c t u r e   t h e   t o m a t o -
e x p o r t i n g   s e c t o r,   f o r   w h i c h   t h e   S p a n i s h 
a u t h o r i t i e s   h a d   p r o p o s e d   a   v e r y   l a r g e 
a m o u n t   o f   f i n a n c i n g.   fo l l ow i n g   t h e   co n -
s u l t a t i o n s   w i t h   t h e   c o m m i s s i o n ,   t h e 
S p a n i s h   a u t h o r i t i e s   i n t r o d u c e d   a   m o r e 
re l e va nt   a n d   m o re   s t r u c t u re d   re s t r u c t u r -
i n g   p l a n ,   c o v e r i n g   o t h e r   m e a s u r e s   s u c h 
a s   t h e   ca n a r y   i s l a n d s   r u r a l   d e ve l o p m e n t 
program me.

t h i s   i s   a n   e x c e l l e n t   e x a m p l e   o f   t h e 
c o m m i s s i o n   a c t i v e l y   c o o p e r a t i n g   w i t h 
n a t i o n a l   a u t h o r i t i e s   t o   m a k e   t h e   p r o -
posed me asures  more effec tive.

t h e   c o m m i s s i o n   a g r e e s   w i t h   t h e   c o u r t 
th at th ere is some un cer taint y as  reg ards 
a i d   a p p l i c a t i o n s   f o r   m e a s u r e s   w h e r e 
a m e n d m e n t s   t o   s u c h   m e a s u r e s   w e r e 
a p p r o v e d   o n l y   a   f e w   m o n t h s   a f t e r   t h e 
sta r t of t he applic ation  year. 

t h i s   d i d   n o t   l e a d   t o   a n y   s e r i o u s   p r o b -
lems, h owever, for th e followin g reas on s:

—  t h e   d e a d l i n e s   f o r   s u b m i t t i n g   a i d   a p -
plications were later than the dates for 
approving  th e amendments; 

—  producer org anisations  were aware  of 
t h e   s c o p e   o f   t h e   a m e n d m e n t s   w h i c h 
h ad been  approved;

—  t h e   co m m i s s i o n   h a d   a s k e d   t h e   m e m -
ber States concerned to ensure that no 
a m e n d m e n t   w h i c h   p l a ce d   b e n e f i c i a r -
i e s   a t   a   d i s a d v a n t a g e   c o m p a r e d   w i t h 
t h e   p r e v i o u s   s i t u a t i o n   s h o u l d   b e   a p -
plied ret roac tively.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

4 3.
d u r i n g   t h e   e v a l u a t i o n ,   a n   a n a l y s i s 
w a s   c a r r i e d   o u t   t o   s e e   t o   w h a t   e x t e n t 
t h e   m e a s u r e s   i n t r o d u c e d   t o   s u p p o r t 
l o c a l   a g r i c u l t u r a l   p r o d u c t i o n   h e l p e d   t o 
i m p r o v e   t h e   c o m p e t i t i v e n e s s   o f   l o c a l 
p ro d u c t s.   i t   t ra n s p i re d   t h at   co m p e t i t i ve -
n e s s   h a d   i m p r o v e d   o r   i m p r o v e d   c o n s i d -
e r a b l y   i n   t h e   o u t e r m o s t   re g i o n s   i n   1 6   o f 
t h e   2 4   s e c t o r s   l o o k e d   a t .   i n   t h e   s m a l l e r 
a e g e a n   i s l a n d s ,   i n   t h e   t h r e e   s e c t o r s 
looked at, the measures played an impor-
t a n t   p a r t   i n   r a i s i n g   f a r m e r s’  i n c o m e   a n d 
maintain ing  agr ic ultural ac t ivitie s.

4 4–4 7 .
th e   co m m i s s i o n   a gre e s   i n   p r i n c i p l e   w i t h 
t h e   c o u r t ,   b u t   w o u l d   s t r e s s   t h a t   i t   i s 
greece’s responsibilit y to decide whether 
o r   n o t   t o   m a k e   u s e   o f   t h e   o p t i o n s   a v a i l -
able in  the  contex t of con dition alit y.

m o re ove r,   t h e   re ce nt   e va l u at i o n   o f   p o S e i 
and of the measures for the small aegean 
i s l a n d s   ( p i m e )   co n f i r m e d   t h e   i m p o r t a n ce 
of t he s uppor t ing role played by t his  ai d, 
i n   p a r t i c u l a r   fo r   t h e   m a ny   s m a l l   f a r m e r s 
in  the  smaller  aeg ean islan ds: 

‘… ( t h e   a i d )   i n d i s p u t a b l y   p r o m o t e s   t h e 
c o n t i n u a t i o n   o f   a c t i v i t i e s   o n   s m a l l   t r a d -
i t i o n a l   f a r m s ,   w h i c h   a c c o u n t   f o r   t h e 
m a j o r i t y   o f   o l i v e   g r o v e s   i n   t h e   p i m e ,   b y 
i n c r e a s i n g   t h e i r   p r o f i t a b i l i t y   a n d   h e n c e 
th eir  reven ue’. 2

2  report on ‘evaluation of the measures implemented to 
support the outermost regions (poSei) and smaller aegean 

islands as part of the common agricultural policy’, oréade-

Brèche consultancy, november 2009, final report (volume 2), 

page 326, point 3.1.8.1.4.5.

40 .
i n   s e t t i n g   1   a u g u s t   a s   t h e   d e a d l i n e   f o r 
s u b m i t t i n g   p r o p o s a l s   f o r   a m e n d m e n t s , 
t h e   c o m m i s s i o n ’s   i n t e n t i o n   h a d   b e e n 
t o   p r o m o t e   l e g a l   c e r t a i n t y   a n d   e n s u r e 
t h a t   t h e   p r o g r a m m e   a m e n d m e n t s   w e r e 
a p p r o v e d   b e f o r e   t h e   s t a r t i n g   d a t e   f o r 
i m p l e m e n t a t i o n .  t h i s   n e w   d e a d l i n e   a l s o 
allows the commission to help ensure the 
definitio n o f m ore targeted an d e ffec t ive 
m e a s u r e s   ( s e e   t h e   r e p l y   i n   t h e   p r e v i o u s 
point).

t h e   c o m m i s s i o n   i s   a w a r e ,   n e v e r t h e l e s s , 
o f   t h e   p r o b l e m s   w h i c h   b r i n g i n g   f o r -
wa rd   t h e   d e a d l i n e   fo r   s u b m i t t i n g   a n n u a l 
a m e n d m e n t s   c a u s e s   f o r   t h e   n a t i o n a l 
aut hor it ies. 

i t therefore intends to propose an amend-
m e n t   t o   a r t i c l e   4 9   o f   r e g u l a t i o n   ( e c ) 
n o   7 9 3 / 2 0 0 6   i n   o r d e r   t o   r e i n t r o d u c e 
3 0   S e p t e m b e r   o f   y e a r   n  –  1   f o r   a l l   t h e 
changes which do not require an approval 
decision.

o n l y   t h e   m o s t   i m p o r t a n t   a m e n d m e n t s 
( s u c h   a s   t h e   i n t r o d u c t i o n   o f   n e w   m e a s -
u r e s   i n   p r o g r a m m e s ) ,   w h i c h   w i l l   s t i l l   b e 
a p p r o v e d   b y   a   c o m m i s s i o n   d e c i s i o n , 
s h o u l d   b e   s u b m i t t e d   t o   t h e   co m m i s s i o n 
by  1 aug u st  n –  1.

41 .
g i ve n   t h e   c u r re n t   re g u l a t i o n ,   a n d   i n   t h e 
s p i r i t   o f   t h e   p o l i t i c a l   c h o i c e   m a d e   d u r -
i n g   t h e   r e f o r m ,   t h e   c o m m i s s i o n   c a n n o t 
fo r c e   m e m b e r   S t a t e s   t o   a c c e p t   s u b s t a n -
t i a l   c h a n g e s   t o   t h e   m e a s u r e s   t h e y   h a v e 
propose d.

i n f o r m a l   c o n t a c t s   r e g u l a r l y   t a k e   p l a c e , 
h o w e v e r,   b e t w e e n   t h e   c o m m i s s i o n   a n d 
t h e   n a t i o n a l   a u t h o r i t i e s   w i t h   a   v i e w   t o 
d i s c u s s i n g   t h e   c o n t e n t   a n d   t h e   p o s s i -
b i l i t y   o f   i m p ro v i n g   t h e   p ro g r a m m e s   a n d 
m e a s u re s   p ro p o s e d   o r   to   b e   p ro p o s e d   by 
th e m e mb er  St ates.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

t h i s   d o e s   n o t   m e a n   t h a t   e n v i r o n m e n t a l 
p ro t e c t i o n   i s   n o t   i m p o r t a n t .   h o we ve r,   i t 
i s   g e n e r a l l y   p u r s u e d   t h ro u g h   c o n d i t i o n -
a l i t y,   w h i c h   m u s t   b e   a p p l i e d   to   a l l   d i re c t 
a i d ,   a n d   v i a   t h e   r u r a l   d e v e l o p m e n t   p r o -
gram mes ( agr i- environm ental m eas ure s) .

m o r e o v e r,   t h e   e n v i r o n m e n t a l   o b j e c t i v e 
i s   i n d i re c t l y   s u p p o r t e d   i n   t h e   c o n t e x t   o f 
p o S e i   b a n a n a   a i d   b y   c o n t i n u o u s   f u n d -
i n g   f o r   p r o d u c e r s   w h o   h a v e   v o l u n t a r i l y 
u n d e r t a k e n   t o   p u r s u e   a n   e n v i r o n m e n t -
fr iendly  qualit y  polic y. 

B e c a u s e   o f   t h e   f i n a n c i a l   s e c u r i t y   p r o -
vided by this annual aid, these producers 
c a n   m a k e   i m p rove m e n t s   t h ro u g h   i nve s t -
m e nt s   a n d   i nt ro d u ce   e nv i ro n m e nt a l   p ro -
grammes such as the ‘sustainable banana 
p l a n’  e s t a b l i s h e d   b y   p r o d u c e r   o r g a n i s a -
tion s in  the  fren ch  antilles.

the measures taken af ter hurricane dean, 
w h i c h   d e s t r o y e d   m o s t   o f   t h e   b a n a n a 
c r o p   i n   g u a d e l o u p e   a n d   m a r t i n i q u e   i n 
august 2007, also contr ibuted to preser v-
i n g   t h e   e n v i r o n m e n t   s i n c e   l o w e r i n g   t h e 
p r o d u c t i o n   t h r e s h o l d   g i v i n g   r i s e   t o   t h e 
p ay m e nt   o f   1 0 0   %   o f   t h e   a i d   h a s   re s u l te d 
i n   t h e   c re at i o n   o f   f a l l ow   l a n d   i n   o rd e r   to 
reduce soil pollution .

48 –49 .
th e   s u b - m e a s u re  ‘a i d   fo r   i n n ovat i o n   a n d 
q u a l i t y   o f   a n i m a l   p ro d u c t s   i n   t h e  a zo re s’ 
i s   i n t e n d e d   t o   d i ve r s i f y   s u p p o r t   fo r   m i l k 
produc t ion in t he  a zo res.

h o w e v e r,   o b j e c t i v e   c r i t e r i a   c o n c e r n i n g 
t h i s   s u b - m e a s u r e   a r e   i n   f a c t   m i s s i n g   i n 
the  programme.

t h e   p o r t u g u e s e   a u t h o r i t i e s   e x p l a i n e d 
t h a t   t h e s e   c r i t e r i a   w e r e   t h e   s u b j e c t   o f 
s p e c i f i c   p r o v i s i o n s   i n   l o c a l   l e g i s l a t i o n 
( re g u l a t i o n   o n   c o m p a r i s o n   o f   c o w s’  m i l k 
(order no 50/93) adopted by the regional 
gover nment  o n  28  o c to b er 1 99 3) .

h o w e v e r,   t h e   c o m m i s s i o n   a g r e e s   w i t h 
t h e   c o u r t   t h a t   t h e s e   c r i t e r i a   m u s t   b e 
a p p r o v e d   i n   t h e   c o n t e x t   o f   t h e   p o S e i 
p r o g r a m m e .  t h e   po r t u g u e s e   a u t h o r i t i e s 
have under taken to submit the necessar y 
amend ments.

51 –54 .
a s   f o r   a l l   d i r e c t   a g r i c u l t u r a l   a i d ,   t h e 
m a i n   o b j e c t i ve   o f   d i re c t   p ay m e nt s   u n d e r 
poSei (for banana producers as well) is to 
under pin far me rs’ in comes. 

t h e   e n v i r o n m e n t a l   o b j e c t i v e   i s   n o t , 
t h e r e f o r e ,   t h e   m o s t   i m p o r t a n t   t h i n g   i n 
t h e   c o n t e x t   o f   p o S e i ,   w h i c h   i s   m a i n l y 
g e a r e d   t o   p r e s e r v i n g   a n d   d e v e l o p i n g 
agr icul t ure in t he o u ter mo st regi ons. 

the fun damental  o b jec t ive o f b an an a a id 
under poSei is hence to preser ve this tra -
d i t i o n a l   c ro p   w h i c h   p l ay s   a   m a j o r   s o c i o -
e c o n o m i c   r o l e   i n   t h e   o u t e r m o s t   r e g i o n s 
concer ned and which would other wise be 
in dang er o f disap p ear ing.

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Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

55 .
u n d e r   t h e   p o S e i   p ro gra m m e,   w h i c h   d o e s 
n o t   p r o v i d e   f o r   a   d i r e c t   l i n k   w i t h   t h e 
e n v i r o n m e n t a l   o b j e c t i v e   ( w h i c h   i s   p u r -
s u e d ,   a s   i s   t h e   c a s e   f o r   a l l   d i r e c t   c a p 
a i d,   by   m e a n s   o f   co n d i t i o n a l i t y   a n d   r u ra l 
d e v e l o p m e n t ) ,   t h e   d e f i n i t i o n   o f   s p e -
c i f i c   i n d i c a t o r s   i s   n e i t h e r   n e c e s s a r y   n o r 
releva nt.

6 7.
m i n d f u l   o f   t h e   v i e w s   e x p r e s s e d   b y   t h e 
m e m b e r   S t a t e s   c o n c e r n e d   a n d   t h e   c o m -
m e n t s   b y   t h e   c o u r t   a n d   t h e   e v a l u a t o r s , 
t h e   c o m m i s s i o n   i n t e n d s   t o   p r o p o s e 
t h a t   t h e   c e i l i n g   f o r   t h e   s p e c i a l   s u p p l y 
a r ra n g e m e nt s   ( S S as )   b e   ra i s e d   fo r   fra n ce 
a n d   p o r t u g a l ,   w i t h   t h e   o v e r a l l   c e i l i n g 
remain ing  un chan ged.

i n   t h e   p o S e i   p r o g r a m m e   f o r   fr a n c e   a n d 
S p a i n ,   t h e   r e s p e c t i v e   n a t i o n a l   a u t h o r i -
ties inser ted the objec tive of introducing 
e n v i r o n m e n t - f r i e n d l y   p r o d u c t i o n   m e t h -
ods in order to justify a lower produc tion 
t h r e s h o l d   t h a n   1 0 0   %   f o r   t h e   g r a n t i n g 
o f   a i d.  t h e   e v a l u a t o r s   t h u s   a n a l y s e d   t h e 
effec tiveness of the suppor t tools chosen 
i n   r e l a t i o n   t o   t h i s   o b j e c t i v e .   t h e y   c o n -
c l u d e d   t h a t   i t   w o u l d   b e   b e t t e r   t o   i n s e r t 
more indicators in order to monitor more 
s y s t e m a t i c a l l y   t h e   p ro g re s s   a c h i e ve d   b y 
the  sec to r in t his res p ec t.

d i s c u s s i o n s   o n   a   p o s s i b l e   i n c re a s e   i n   t h e 
S Sa ceilin g for greece  are in progress.

6 8.
t h e   c o m m i s s i o n’s   a u d i t   s e r v i c e s   c h e c k 
co m p l i a n ce   w i t h   e l i gi b i l i t y   c r i te r i a ,   w i t h 
t h e   r e s u l t s   b e i n g   s e n t   a u t o m a t i c a l l y   t o 
t h e   co u r t .   at   t h e   m o m e n t ,   t h e   c l e a ra n ce 
p r o c e d u r e s   u n d e r   w a y   f o r   t h e   a r r a n g e -
m e n t s   e s t a b l i s h e d   a f t e r   t h e   r e f o r m   a r e 
s t i l l   i n   t h e   b i l a te r a l   p h a s e,   t h e re fo re   t h e 
c o m m i s s i o n   d o e s   n o t   y e t   h a v e   a   f i n a l 
position.

63 .
t h e   n a t i o n a l   a u t h o r i t i e s   a r e   r e s p o n -
s i b l e   fo r   c h o o s i n g   t h e   a r r a n g e m e n t s   fo r 
p r o v i d i n g   a d j u s t m e n t   a i d   f o r   t h e   s u g a r 
industr y on r eunion island. france there -
fore took the view that fixed-budget flat-
rate aid  was th e m os t  su it ab l e o pt ion . 

t h e   p o s s i b i l i t y   o f   p a y i n g   n a t i o n a l   a i d ,   i n 
l i n e   w i t h   t h e   re g u l a t o r y   f r a m e wo r k ,   i s   a n 
a s p e c t   o f   t h e   p o S e i   p r o g r a m m e   w h i c h 
m ember States are entitled to make use of.

6 9–7 0 .
t h e   i n t e g r a t e d   a d m i n i s t r a t i o n   a n d   c o n -
t r o l   s y s t e m   i s   i n   f a c t   o n e   o f   t h e   m a i n 
i n s t r u m e n t s   fo r   v e r i f y i n g   s p e c i f i c   m e a s -
u re s,   b u t   i t   i s   n o t   t h e   o n l y   o n e.   fo r   s o m e 
m e a s u re s   w h e re   a i d   i s   l i n k e d   to   s u p p l i e s 
o f   p ro d u c t s   fo r   p ro ce s s i n g   o r   m a r k e t i n g, 
oth er  controls are envisaged.

e x a m p l e s   a r e   t h e   t r a n s a c t i o n s   b e t w e e n 
p r o d u c e r s   a n d   p r o d u c e r   o r g a n i s a t i o n s 
( b a n a n a s,   l o c a l   p ro d u c t s ) ,   t ra n s p o r t   a n d /
o r   w e i g h i n g   ( s u g a r   c a n e ,   b a n a n a s ) ,   v e t -
e r i n a r y   c h e c k s   ( a n i m a l s )   a n d   l a b o r a t o r y 
tests  and an alyses ( wine).

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

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reply of the 
commiSSion

t h e   co m m i s s i o n   i s   a w a re   o f   t h e s e   p ro b -
l e m s   a n d   k n o w s   t h e r e   i s   n o   s i n g l e 
m e t h o d   t h a t   i s   a b s o l u t e l y   r e l i a b l e .   i t 
t h e r e f o r e   p r e f e r r e d   t o   e n t r u s t   t o   m e m -
b e r   St ate s   t h e   t a s k   o f   d e v i s i n g   t h e i r   ow n 
met hods  of  c he ck in g  wh eth er   th e  advan -
t a g e   w a s   p a s s e d   o n .   a c c o r d i n g   t o   t h e 
i n fo r m a t i o n   s e n t   t o   t h e   c o m m i s s i o n ,   a l l 
t h e   p o S e i   m e m b e r   S t a t e s   a r e   e s t a b l i s h -
i n g   p r i c e   w a t c h d o g s   t o   c h e c k   w h e t h e r 
the SSa advantage is in fac t being passed 
on  to fin al con sumers.

th e s e   e f fo r t s   s h o u l d   l e a d   to   a n   i m p rove -
m e n t   i n   t h e   i n f o r m a t i o n   a v a i l a b l e .   t h e 
c o m m i s s i o n   w i l l   a s s i s t   t h e   n a t i o n a l 
auth or ities wh ere possible.

fu r t h e r m o r e ,   t h e   a c c o u n t i n g   a n d   d o c u -
m e n t a r y   c h e c k s   c a r r i e d   o u t   d u r i n g   o n -
t h e - s p o t   a u d i t s   h ave   n o t   re s u l te d   i n   a ny 
obser vations  cas ting doubt on   e u aid.

7 6.
t h e   c o m m i s s i o n   i s   f u l l y   a w a r e   o f   i t s 
re s p o n s i b i l i t y   u n d e r   t h e   fi n a n c i a l   r e g u -
l a t i o n ,   w h i c h   i s   w h y   i t   h a s   w o r k e d   w i t h 
the national author ities since the autumn 
o f   2 0 0 9   ( w o r k i n g   g r o u p   a n d   q u e s t i o n -
n a i r e   s e n t   t o   m e m b e r   S t a t e s )   t o   d e f i n e 
co m m o n   i n d i c ato r s   fo r   u s e   i n   e va l u at i n g 
all the programmes concer ned. the poSei 
m e m b e r   St ate s   we re   o f f i c i a l l y   n o t i f i e d   o f 
th ese in dicators by  le tter of  7  S e ptembe r 
2 0 1 0 .   t h e   c o m m i s s i o n   w i l l   e n s u r e   t h a t 
t h e y   a re   i n co r p o rate d   i n   a l l   p ro gra m m e s 
from 2 01 1 .

71 .
t h e   c o n t r o l   a r r a n g e m e n t s   a d o p t e d   b y 
m e m b e r   S t a t e s   a re   c h e c k e d   by   t h e   co m -
m i s s i o n   d u r i n g   o n - t h e - s p o t   a u d i t s .   a n y 
weak nesses or failures noted which jeop -
a r d i s e   e u   a i d   a r e   d e a l t   w i t h   d u r i n g   t h e 
account  cl earance p ro cedu re.

72 .
t h e   c o m m i s s i o n   a u d i t   s e r v i c e   a l r e a d y 
p o i n te d   t h i s   o u t   i n   g re e ce.  th e   co m m i s -
sion took account of this in the investiga -
tions al ready  co mp l eted an d mad e f i na n -
c i a l   a d j u s t m e n t s.   i t   h a s   n o t   ye t   a d o p t e d 
a   f i n a l   p o s i t i o n   o n   t h e   i nv e s t i g a t i o n s   i n 
p r o g r e s s ,   b u t   t h i s   i s   t h e   s u b j e c t   o f   o n e 
o f   t h e   c o m p l a i n t s   m a d e   t o   t h e   g r e e k 
aut hor it ies.

73 .
S h o r t c o m i n g s   i n   t h e   p a s t   i n   t e r m s   o f 
c h e c k i n g   a r e a s   h a v e   b e e n   o r   a r e   b e i n g 
d e a l t   w i t h   i n   t h e   a c c o u n t   c l e a r a n c e   p ro -
c e d u r e .   t h e   s i t u a t i o n   i n   S p a i n   a n d   po r -
t u g a l   h a s   n e ve r t h e l e s s   c h a n g e d   b e c a u s e 
o f   t h e   i n t r o d u c t i o n   o f   t h e   g e o g r a p h i c a l 
i n f o r m a t i o n   s y s t e m   ( g i S )   a n d   t h e   f a c t 
t h at   l o c a l   i n s p e c to r s   h ave   b e co m e   f a m i l -
i a r   w i t h   m e a s u r e m e n t   t e c h n i q u e s   u s i n g 
gpS.

74 .
m e t h o d s   t o   c h e c k   t h a t   t h e   e c o n o m i c 
a d v a n t a g e   o f   S S a s   h a s   b e e n   p a s s e d   o n 
to final  u ser s have b een intro du ced  in  all 
m embe r States.

h owe ve r,   t h e   p ro b l e m   o f   m e a s u r i n g   t h i s 
m u s t   b o r n e   i n   m i n d ,   p a r t i c u l a r l y   i n   t h e 
c a s e   o f   r a w   m a t e r i a l s   e n t e r i n g   t h e   p r o -
duc tion chain of other produc ts or which 
a r e   p r o c e s s e d   b e f o r e   b e i n g   s o l d   t o   t h e 
final co nsume rs.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

79 .
t h e   c o m m i s s i o n   d o e s   n o t   a g r e e   c o m -
p l e t e l y   w i t h   t h e   c o u r t ’s   c o m m e n t   a n d 
re i te rate s   t h at   t h e   p e r fo r m a n ce   o f   a   p ro -
gramme can be measured effec tively only 
over a  pe r io d of  s everal  years.

h o w e v e r,   t h i s   d o e s   n o t   m e a n   t h a t   t h e 
c o m m i s s i o n   w i s h e s   t o   a v o i d   i t s   r o l e 
o f   c h e c k i n g   t h e   e f f e c t i v e n e s s   o f   a i d 
programme s.

i t   r e g a r d s   t h e   a n n u a l   a m e n d m e n t   p r o -
c e s s ,   i n v o l v i n g   i m p l e m e n t a t i o n   r e p o r t s 
s u b m i t t e d   e a c h   y e a r   b y   t h e   m e m b e r 
S t a t e s ,   a s   a n   i m p o r t a n t   o p p o r t u n i t y   t o 
rediscus s measu res and t heir impa c t.

i t   w i l l   p ro p o s e   co m m o n   i n d i c ato r s   to   t h e 
m ember States to be communicated each 
ye a r   i n   o rd e r   to   o b t a i n   u n i fo r m   i n fo r m a-
t i o n   o n   t h e   g l o b a l   p e r f o r m a n c e   o f   t h e 
poSei  pro gramme s.

5757

reply of the 
commiSSion

conclusIons	and	
recommendatIons

8 0.
t h e   c o m m i s s i o n   i s   c o n v i n c e d   t h a t   t h e 
approach introduced by the 2006 refor m, 
i n v o l v i n g   t h e   t r a n s f e r   o f   r e s p o n s i b i l -
i t y   t o   t h e   m e m b e r   S t a t e s   t o   d e f i n e   p r o -
g r a m m e s ,   i s   t h e   b e s t   a p p r o a c h   i n   t h i s 
contex t, in accordance with the pr inciple 
of subsidiar it y.

th e   co m m i s s i o n   t h e re fo re   co n s i d e r s   t h at 
i t   i s   n o t   a p p ro p r i ate   fo r   i t   to   t a k e   o n   t h e 
r o l e   o f   a d m i n i s t r a t o r   o f   p r o g r a m m e s   i n 
th is res pec t.

B e c a u s e   t h i s   wa s   a   n e w   a p p ro a c h ,   s h o r t -
c o m i n g s   e m e r g e d   d u r i n g   t h e   f i r s t   f e w 
y e a r s   o f   t h e   s t r a t e g y.   t h e   c o m m i s s i o n 
c o n s i d e r s ,   h o w e v e r,   t h a t   t h e   n a t i o n a l 
p r o g r a m m e s   c a n   b e   i m p r o v e d   w i t h 
exper ience.

i t   i n t e n d s   t o   s e n d   u s e f u l   r e c o m m e n d a -
t i o n s   to   t h e   m e m b e r   St ate s   i n   t h e   re p o r t 
o n   t h e   i m p a c t   o f   t h e   p o S e i   re fo r m   t o   b e 
adopted in S epte mbe r 20 1 0.

recommend atio n	1
t h e   c o m m i s s i o n   w i l l   c o n t i n u e   h e l p -
i n g   m e m b e r   S t a t e s   b y   s p r e a d i n g   b e s t 
prac tices. 

i n   t h i s   c o n t e x t ,   i t   h a s   p r o p o s e d   a   h a r -
m o n i s e d   f r a m e w o r k   o f   c o m m o n   i n d i c a -
to r s   to   m o n i to r   p ro gra m m e   p e r fo r m a n ce 
more ef fec tively.

th e s e   co m m o n   i n d i c ato r s   i n c l u d e   i n   p a r-
t i c u l a r   i n f o r m a t i o n   o n   e c o n o m i c   d e v e l -
opments (change in areas, livestock num -
b e r s   a n d   c ro p s )   a n d   s o c i a l   d e ve l o p m e nt s 
( jobs) . 

h o w e v e r,   t h e   c o m m i s s i o n   fe e l s   t h a t   t h e 
i n d i c a to r   co n ce r n i n g   t h e   a d d e d   v a l u e   o f 
c ro p s   co u l d   l e a d   to   t h e   d i s s e m i n at i o n   o f 
d at a   t h at   i s   n o t   p a r t i c u l a r l y   u s e f u l,   gi ve n 
t h e   v a r i e t y   o f   m e a s u r e s   t h a t   h a v e   b e e n 
introduced in  t he var ious region s.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

58

reply of the 
commiSSion

8 2(b)
according to the infor mation received by 
t h e   po r t u g u e s e   a u t h o r i t i e s ,   t h e   c r i t e r i a 
f o r   a p p l y i n g   t h e   s u b - m e a s u r e   ‘ a i d   f o r 
i n n o v a t i o n   a n d   q u a l i t y   o f   a n i m a l   p r o d -
u c t s   i n   t h e   a zo re s’,   w h i c h   a re   t h e   s u b j e c t 
of a regional regulation, will be set out in 
th e p oS e i programme  for  por t ug al.

8 2(c )
e n v i r o n m e n t a l   p r o t e c t i o n   i s   n o t   a   s p e -
c i f i c   o b j e c t i v e   o f   t h e   p o S e i   p r o g r a m m e. 
n e v e r t h e l e s s   i t   i s   p u r s u e d   b y   m e a n s   o f 
c o n d i t i o n a l i t y,   w h i c h   a p p l i e s   t o   b a n a n a 
a i d   a n d   t o   a l l   d i r e c t   a i d   u n d e r   t h e   c o m -
m o n   a g r i c u l t u r a l   p o l i c y,   a n d   i n   t h e   c o n-
t e x t   o f   r u r a l   d e v e l o p m e n t   p r o g r a m m e s 
( agr i- environ ment al m eas ures) .

8 2(d )
f l a t - r a t e   a i d   f o r   t h e   s u g a r   i n d u s t r y   s u p -
p l e m e n t e d   b y   n a t i o n a l   a i d   i s   t h e   a c t u a l 
method envisaged in the poSei regulation.

8 2(e)
th e   co m m i s s i o n   i nte n d s   to   p ro p o s e   ra i s-
i n g   t h e   S S a   c e i l i n g   f o r   fr a n c e   a n d   po r -
t u g a l   d u r i n g   t h e   r e c a s t i n g   o f   t h e   p o S e i 
regulation cur rent ly being  adopte d.

d i s c u s s i o n s   a r e   i n   p r o g r e s s   c o n c e r n -
i n g   a   p o s s i b l e   r i s e   i n   t h e   S S a   c e i l i n g   fo r 
greece.

recommend atio n	3
t h e   r e p o r t   o n   t h e   i m p a c t   o f   t h e   p o S e i 
r e f o r m   w i l l   i d e n t i f y   t h e   m o s t   e f f e c t i v e 
measures and the ones needing improve -
ment; recommendations will be issued to 
th e m ember  States.

81 .
t h e   f i r s t   o f   au g u s t   w a s   s e t   a s   t h e   d e a d -
l i n e   fo r   s u b m i t t i n g   p ro p o s a l s   fo r   a m e n d -
ments in order to promote legal cer taint y 
a n d   e n s u re   t h a t   t h e   p ro g r a m m e   a m e n d -
m e n t s   w e r e   a p p r o v e d   b e f o r e   t h e   s t a r t -
i n g   d a t e   fo r   i m p l e m e n t a t i o n .  t h i s   d e a d -
l i n e   a l s o   a l l o w s   t h e   c o m m i s s i o n   t o   h e l p 
e n s u r e   t h e   d e f i n i t i o n   o f   m o r e   t a r g e t e d 
an d ef fec t ive measu res.

t h e   c o m m i s s i o n   i s   a w a r e ,   n e v e r t h e l e s s , 
o f   t h e   p r o b l e m s   w h i c h   b r i n g i n g   f o r -
wa rd   t h e   d e a d l i n e   fo r   s u b m i t t i n g   a n n u a l 
a m e n d m e n t s   c a u s e s   f o r   t h e   n a t i o n a l 
aut hor it ies. 

fo r   t h i s   re a s o n ,   t h e   co m m i s s i o n   i n t e n d s 
to propose that ar ticle 49 of commission 
r e g u l a t i o n   ( e c )   n o   7 9 3 / 2 0 0 6   s h o u l d   b e 
amended to make the annual programme 
amend ments mo re effec tive an d  flex ible. 

S e e   a l s o   t h e   c o m m i s s i o n ’s   r e p l i e s   t o 
paragrap hs 38 to  41 .

recom m endation 	2
t h e   c o m m i s s i o n   i n t e n d s   t o   p r o p o s e 
a n   a m e n d m e n t   t o   r e g u l a t i o n   ( e c ) 
n o   7 9 3 / 2 0 0 6   t o   a l l o w   m o s t   o f   t h e 
a m e n d m e n t s   p ro p o s e d   e a c h   ye a r   by   t h e 
m e m b e r   S t a t e s   t o   b e   a p p r o v e d   w i t h o u t 
h a v i n g   t o   a d o p t   a   c o m m i s s i o n   d e c i -
s i o n .   i n   t h e s e   c a s e s ,   t h e   d a t e   f o r   s u b -
m i t t i n g   a m e n d m e n t s   c a n   b e   p o s t p o n e d 
fo r   t wo   m o n t h s,   t o   3 0   S e p t e m b e r   o f   t h e 
y e a r   p r i o r   t o   t h e   e n t r y   i n t o   fo r c e   o f   t h e 
a m e n d e d   p ro gra m m e.

82 (a)
u n d e r   c u r r e n t   r e g u l a t i o n ,   d e c i s i o n s   o n 
keeping olive trees within the framewor k 
of conditionalit y are the responsibilit y of 
the m em be r States.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

5959

reply of the 
commiSSion

83 .
a d a p t i n g   m e m b e r   S t a t e s ’  m o n i t o r i n g 
a r r a n g e m e n t s   t o   t h e   s p e c i f i c   m e a s u r e s 
i s   o n e   o f   t h e   a s p e c t s   t a k e n   i n t o   a c c o u n t 
d u r i n g   a u d i t s   p e r fo r m e d   by   t h e   co m m i s -
sion which, where necessar y, asks for cor -
rec tive measures by the national author i -
ties con cer ned. 

S e e   a l s o   t h e   c o m m i s s i o n ’s   r e p l i e s   t o 
para grap hs  68  to 7 4.

t h e   c o m m i s s i o n   w i l l   e n s u r e   t h a t   t h e s e 
i n d i c a t o r s   a r e   i n t r o d u c e d   i n   a l l   t h e   p r o -
gram mes from 20 1 1.

a p p l i c at i o n   o f   t h e s e   i n d i c ato r s   w i l l   fo r m 
a   g o o d   b a s i s   fo r   e v a l u a t i n g   t h e   p ro gre s s 
i n   a c h i e v i n g   t h e   s p e c i f i c   o b j e c t i v e s   o f 
t h e   p o S e i   a n d   p i m e   p r o g r a m m e s   i n   t h e 
contex t of the more general objec tives of 
th e common agr ic ult ural polic y.

recom m endation 	4
t h e   f u n c t i o n i n g   o f   t h e   c o n t r o l   p r o c e -
d u r e s   s e t   u p   b y   t h e   m e m b e r   S t a t e s   i s 
c h e c k e d   o n   t h e   s p o t   b y   t h e   co m m i s s i o n 
a u d i t   s e r v i c e.  w h e n e ve r   t h e y   n o t i c e   a ny 
w e a k n e s s e s   o r   s h o r t c o m i n g s   l i k e l y   t o 
u n d e r m i n e   t h e   p ay m e nt   o f   a i d,   t h e   co m -
m i s s i o n   t a k e s   t h e   a p p r o p r i a t e   m e a s u r e s 
d u r i n g   t h e   c l e a ra n ce   p ro ce d u re   a n d   p ro -
poses su itab l e imp rovements.

recommend atio n	5
t h e   p e r fo r m a n c e   o f   t h e   p o S e i   a n d   p i m e 
program me s,   wh ich   com pr is e  ve r y  d if fe r-
e n t   m e a s u r e s,   d o e s   n o t   l e n d   i t s e l f   t o   a n 
in - dept h g lobal evaluation  ever y  ye ar. 

h owe ve r,   t h e   i n d i c ato r s   p ro p o s e d   by   t h e 
c o m m i s s i o n   t o   t h e   m e m b e r   S t a t e s   w i l l 
m a k e   fo r   m o re   e f fe c t i ve   a n n u a l   m o n i to r-
in g of programm e  per for m an ce.

are 	 t h e 	 s u p p o r t 	 p ro g ra m m e s 	 d raw n 	 u p	
by	the	m emb er	states	and	approved	by	
t h e 	 co m m i s s i o n	 m o n i to re d	 i n 	 a n 	 e f fe c -
ti ve	way?

t h e   co m m i s s i o n   p ro p o s e d   a   s e t   o f   c o m -
m o n   i n d i c a t o r s   t o   t h e   m e m b e r   S t a t e s   t o 
be use d to e val uate al l  t he p ro gramme s.

t h e   i n d i c a t o r s   w e r e   d r a f t e d   i n   c o o p e r a -
t i o n   w i t h   t h e   n at i o n a l   a u t h o r i t i e s   ( wo r k-
i n g   g r o u p   a n d   q u e s t i o n n a i r e s   s e n t   t o 
m embe r States ). 

t h e   i n d i c a t o r s   c o n c e r n   t h e   r a t e   o f   c o ve r 
of essent ial  p ro duc t  needs  by th e  s pec i al 
s u p p l y   a r r a n g e m e n t s   a n d   b y   l o c a l   p r o -
d u c t i o n ;   a   c o m p a r i s o n   o f   t h e   p r i c e s   i n 
t h e   re gi o n s   co n ce r n e d   a n d   i n   t h e i r   m e m -
b e r   S t a t e s ;   c h a n g e s   i n   a r e a s ,   j o b s   a n d 
l i ve s to c k   n u m b e r s ;   l o c a l   p ro d u c t i o n   a n d 
processed produc ts, and the added value 
of t he l at te r.

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

Special report no 10/2010 — Specific measures for agriculture in favour of the outermost regions of the union and the smaller aegean islands

european court of auditors

special	report	no	10/2010

specific	measures	for	agriculture	in	favour	of	the	outermost	regions	of	the	union	and	the	smaller	aegean	islands

luxembourg: publications office of the european union

2010 — 59 pp. — 21 × 29.7 cm

iSBn 978-92-9207-950-5

doi:10.2865/71032

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the Specific meaSureS for agriculture in favour of the outermoSt 

regionS  of  the  union  and  the  Smaller  aegean  iSlandS  were 

created to take account of the Structural Social and economic 

Situation therein. the regionS’ development iS Severely reStrained 

By the  permanence  and  comBination  of  a  numBer  of  factorS, 

in  particular  remoteneSS,  inSularity,  Small  Size,  difficult 

topography and climate, and economic dependence on a few 

productS.

thiS report emphaSiSeS the programming, implementation and 

monitoring  of  the  meaSureS.  it  containS  recommendationS 

intended  to  help  the  commiSSion  and  the  memBer  StateS 

concerned improve the way the Specific meaSureS are managed.

european court of auditorS