Amended proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1290/2005 and Council Regulation (EC) No 1234/2007 as regards distribution of food products to the most deprived persons in the Union
Date: 2011-10-03
Institutions: European Commission
Subjects: EU programme, aid to disadvantaged groups, co-financing, disclosure of information, distribution of aid, foodstuff, intervention price, intervention stock

EUROPEAN COMMISSION 

Brussels, 3.10.2011 
COM(2011) 634 final 

2008/0183 (COD) 

Amended proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

HISTORY OF THE PROPOSAL 

Commission's adoption of the proposal: 17 September 2008  

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

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

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

On 17 September 2010, the Commission adopted an amended proposal (COM(2010) 
486 final). Together with lower rates of national co-financing, it included a ceiling of 
€  500  million  for  the  EU  annual  financial  co ntribution  and  a  series  of  technical 
adjustments  following  the  amendments  proposed  by  the  European  Parliament.  The 
amended  proposal  was  also  adjusted  to  take  into  account  the  entering  into  force  of 
the Lisbon Treaty.  

Opinion of the European Economic and Social Committee on the amended proposal: 
CESE 70/2011 adopted on 20 January 2011 (Rapporteur: Mr. Lucan) 

Opinion of the Committee of the Regions on the amended proposal: CdR 340/2010 
adopted on 27 January 2011 (Rapporteur Mr. Martikainen). 

This new amended proposal replaces amended proposal (COM(2010) 486 final).  

2. 

CONTEXT OF THE PROPOSAL 

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

For more than two decades intervention stocks made available through this scheme 
have proven to be a reliable supply of food for the most deprived. The need for food 
distribution has grown following the successive enlargements that have substantially 
increased  the  Union's  needy  population.  In  2010  more  than  18  million  people 
benefited from this scheme.  

The objectives of the Common Agriculture Policy (CAP) as defined in Article 39(1) 
of  the  Treaty  include  stabilising  the  markets  and  ensuring  that  supplies  reach 

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consumers at reasonable prices. On the other hand,  the strenghtening of the Union's 
social  cohesion  is  a  goal  enshrined  in  Article  174  of  the  Treaty.    By  reducing  the 
food insecurity of the most deprived persons in the Union and contributing to  reduce   
public  intervention  stocks,  the  programme  supports  the  fulfillment  of  all  these 
objectives. 

In recent years, the CAP has been substantially reframed, with a switch of emphasis 
from  the  primary  objective  of  increasing  productivity  to  enhancing  the  long-term 
sustainability  of  agriculture  and,  as  a  result,  intervention  stocks  of  agricultural 
products have declined. The legal framework of the food distribution scheme needs 
to adjusted to this new reality.   

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

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

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

On  13  April  2011  the  European  Court  of  Justice  (case  T-576/08)  annulled  the 
provisions  of  the  2009  distribution  plan  providing  for  purchases  on  the  market. 
Against  this  background,  the  Commission  was  compelled  to  source  the  2012 
distribution plan entirely from existing intervention stocks. As a result, the budget of 
the  2012  plan  accounts  for  only  €  113  million,  less  than  a  quarter  of  the  previous 
annual plans.    

The  Commission  adopted  on  29  June  2011  a  Communication  on  the  multi-annual 
financial perspectives for the period 2014-20. As for the food distribution scheme for 
the most deprived people, it proposed that in future it will be funded out of Heading 
1 with an overall amount of € 2.5 billion (2011 prices).  

The European Parliament, it its resolution of 7 July 2011 called on the Commission 
and  the  Council  to  develop  a  transitional  solution  for  the  remaining  years  of  the 
current multi-annual financial framework as to avoid a sharp cutback in food aid as a 
result of the reduction in funding from €  500 million to € 133 m illion and to ensure 
that  people  dependent  on  food  aid  do  not  suffer  from  food  poverty.  Numerous 
representatives of the European civil society, ranging from local authorities to NGOs 
and  charities,  have  expressed  their  worries  for  the  future  of  the  scheme  and  have 
unimously called on the various institutions of the Union to find a solution to secure 
its continuation.  

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3. 

ELEMENTS OF THE INITIAL PROPOSAL 

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

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

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

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

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

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

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

4. 

OPINION  OF  THE  COMMISSION  ON  THE  AMENDMENTS  BY  THE  EUROPEAN 
PARLIAMENT; ELEMENTS OF THE NEW AMENDED PROPOSAL 

In its opinion, the European Parliament has strongly advocated the maintenance of the 
full Union's funding for this scheme (amendments 5, 10, 16, 17, 18, 19). The opinion 
of the European Economic and Social Commette contains a similar request. 

National authorities of participating Member States and very numerous representatives 
from the civil society have recently expressed their wish for the scheme to remain fully 
funded out of the EU budget. They argue that in the current context of financial crisis 
certain participating Member States could not be able to secure their part of national 
funding  and,  as  a  result,  the  food  distribution  scheme  might  be  disrupted  where  it  is 
most needed.  

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Furthermore,  the  Commission  is  well  aware  of  the  increasing  number  of  European 
citizens requiring food assistance.  

Against  this  background,  the  Commission  has  decided  to  replace  amended  proposal 
(COM(2010)486 final) by this new amended proposal.  

In  the  light  of  the  contribution  of  food  distribution  programmes  to  the  fulfilment  of 
both the objectives of the Common Agriculture Policy as well as the strengthening of 
the  Union's  social  cohesion,  the  Commission  is  of  the  view  that  this  would  be  more 
appropriately  reflected  in  its  proposal  through  a  double  legal  base  (Articles  42  and 
43(2) together with 175(3)).  

This new amended proposal retains for the future the current rate of 100% EU funding 
for  the  scheme  but,  in  order  to  ensure  its  budgetary  stability,  the  annual  ceiling  of  € 
500 million for the Union's financial contribution is maintained.  

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

The Commission will soon adopt legal proposals pertaining to the new multi-annual 
financial  framework  including  one  on  food  distribution  for  the  needy  to  be  funded 
out  ot  Heading  1.  Against  this  background,  the  three-year  plans  envisaged  in  the 
previous proposal would no longer fit into this new temporary frame. Consequently, 
this new amended proposal retains the current system of annual plans. 

The  other  elements  included  in  the  initial  proposal,  namely  the  two  sources  of 
supply,  a  wider  variety  of  foods  combined  with  a  reinforced  focus  on  nutritional 
aspects,  together  with  clearer  priorities  and  more  robust  monitoring  and  reporting 
mechanisms remain in this new ameded proposal.   

5. 

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

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

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the  implementation  of  the  legally  binding  acts  of  the  European  Union  but  if  the 
application of the legislative act requires uniform conditions for implementation, it is 
up to the Commission to adopt them by means of implementing acts.  

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

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

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

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

6. 

BUDGETARY IMPLICATIONS 

The  proposed  rules  are  designated  to  implement  the  new  provisions  for  the  food 
distribution  scheme  for  the  most  deprived  persons  in  the  Union.  The  new  scheme 
will remain entirely financed by the Union.   

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This  amended  proposal  maintians  an  annual  financial  ceiling  of  €  500  millions  for 
the EU financing  of the scheme.  

7. 

AMENDED PROPOSAL 

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

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2008/0183 (COD) 

Amended proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
first subparagraph of Article 42, Article 43(2) and Article 175 (3) thereof, 

Having regard to the proposal from the European Commission1, 

After transmission of the proposal to the national Parliaments, 

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

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

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

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

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

1 
2 
3 
4 
5 

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

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(3) 

(4) 

(5) 

(6) 

(7) 

contributing  to  guarantee  broad availability of food within  the Union while reducing 
the  intervention  stocks.  The  EU  food  aid  scheme  for  the  most  deprived  should 
continue  to  guarantee  the  aims  of  the  CAP.  At  the  same  time,  it  should  also  aim  to 
strengthen the Union's social cohesion.  

The  European  Parliament,  in  its  declaration  of  4  April  2006  on  supplying  approved 
charities  working  to  implement  the  European  food  aid  programme  for  the  most 
deprived6,  noted  that  the  European  food  aid  programme  for  the  most  deprived  had 
proved  its  worth  and  was  vital  for  millions  of  persons.  Moreover,  it  expressed  its 
concern about the future of the European food aid programme for the most deprived 
and  in  acknowledgement  of  the  need  to  meet  their  food  requirements  called  on  the 
Commission and the Council inter alia to place the European food aid programme on a 
permanent  footing.  Furthermore,  the  European  Parliament,  in  its resolution  of  7  July 
2011 has called on the Commission and the Council to develop a transitional solution 
for the remaining years of the current multi-annual financial framework as to avoid a 
sharp cutback in food aid as a result of the reduction in funding from € 500 millions to 
€ 113 millions and ensure that people dependent on food aid do not suffer from food 
poverty.  

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

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

To the extent the scheme operates by way of purchase of food products on the markets 
when  intervention  stocks  suitable  for  the  food  distribution  are  not  available,  it  is  a 
specific  action  necessary  to  pursue  the  objective  of  strengthening  the  Union's  social 
cohesion.  

A Union scheme cannot constitute the sole response to the growing needs for food aid 
in  the  Union.  National  policies  implemented  by  public  administrations  and  the 
mobilisation of civil society including local initiatives are equally necessary to provide 
food security for the most deprived. A Union scheme with a strong cohesive element 
might,  however,  serve  as  a  model  for  the  distribution  of  food  to  the  most  deprived, 
especially  in  less  developed  regions,  help  create  synergies  and  encourage  public  and 
private  initiatives  aimed  at  increasing  the  food  security  of  persons  in  need. 
Furthermore,  given  the  geographical  dispersion  of  the  reduced  available  intervention 

6 

OJ C 293 E, 2.12.2006, p. 170. 

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(8) 

(9) 

stocks  in  the  Member  States,  it  can  contribute  to  their  best  use.  The  Union  scheme 
should therefore also be without prejudice to any such national policies.  

In order to ensure sound budgetary management, a fixed ceiling of Union aid should 
be  provided  for.  The  most  deprived  scheme  should  be  added  to  the  list  of  measures 
eligible for financing by the European Agricultural Guarantee Fund (EAGF) set out in 
Article  3(1)  of  Council  Regulation  (EC)  No  1290/2005  of  21 June  2005  on  the 
financing of the common agricultural policy7. 

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

(10)  Member  states  should  undertake  adequate  administrative  and  physical  controls  and 
provide  penalties  in  case  of  irregularities  in  order  to  ensure  that  the  annual  plan  is 
implemented in accordance with the applicable rules. 

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

order to implement some of the provisions of that Article. 

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

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

(14) 

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

(15) 

In  order  to  ensure  efficiency  and  transparency  in  the  adoption  of  annual  plans  the 
Commission should adopt the procedures for the adoption and revision of the plans by 

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OJ L 209, 11.8.2005, p. 1.  

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(16) 

(17) 

means  of  implementing  acts.  For  the  same  reason  adoption  and,  where  necessary, 
review annual -year plan should also be done by means of implementing acts. 

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

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

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

(19) 

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

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

(21) 

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

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

accordingly. 

HAVE ADOPTED THIS REGULATION: 

Article 1 

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

"(g) 

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

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Article 2 

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

(1) 

A new Article 4a is inserted: 

"Article 4a  

[Adoption of delegated and implementing acts] 

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

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

(2) 

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

(a)  Article 27 is replaced by the following: 

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

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

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

2.  Member  States  wishing  to  participate  in  the  scheme  provided  for  in 
the  Commission  food  distribution 

paragraph  1  shall  submit 
programmes containing the following: 

to 

(a)  details of their main characteristics and objectives,  

(b) 

the organisations designated,  

(c) 

the  requests  for  quantities  of  food  products  to  be  distributed  each 
year and other relevant information.  

Member  States shall  choose the  food products on the basis of objective 
criteria  including  nutritional  values  and  suitability  for  distribution.  For 

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that  purpose,  Member  States  may  give  preference  to  food  products  of 
Union origin.  

3. 

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

Each annual plan shall set out annual financial allocations by the Union 
per Member State. 

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

An annual plan may be revised in the light of any relevant developments 
affecting its execution. 

4. 

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

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

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

(a) 

free of charge, or  

(b) 

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

5.  Member States participating in the scheme shall: 

(a) 

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

(b)  keep 

the  Commission 

timely  manner  on 
developments affecting the implementation of the food distribution 
programmes. 

informed 

in  a 

6. 

The  Union  shall  finance  the  eligible  costs  under  the  scheme.  This 
financing shall not exceed EUR 500 million per budget year. 

7. 

Eligible costs under the scheme shall be: 

(a) 

the cost of products released from intervention stocks,  

(b) 

the cost of food products purchased on the market, and 

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(c) 

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

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

(a) 

(b) 

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

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

(i) 

administrative costs; 

(ii) 

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

(iii)  storage costs. 

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

9. 

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

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

* 

OJ L 243, 6.9.2006, p. 47." 

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

"Article 27a 

Non-essential elements of the scheme for food distribution 

1. 

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

2. 

In order to ensure the effective and efficient use of the budget assigned to 
the  scheme  provided  for  in  Article  27,  and  to  safeguard  the  rights  and 

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obligations  of  operators,  the  Commission  shall,  by  means  of  delegated 
acts,  adopt  provisions  requiring  the  use  of  tendering  procedures  for  all 
operations relating to the execution of the food distribution programmes, 
provisions  on  securities  to  be  lodged  by  participants  in  tenders,  and 
provisions  on  sanctions,  reductions  and  exclusions  to  be  applied  by  the 
Member  States  especially  with  regard  to  the  non  respect  of  time-limits 
for  withdrawal  of  products  from  intervention  stocks  and  in  the  case  of 
serious shortcomings or irregularities in the execution of the annual plan. 

Article 27b 

Uniform implementation of the scheme for food distribution  

1. 

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

(a) 

detailed  rules  and  procedures  for  the  adoption  and  revision  of  the 
annual plans, including applicable deadlines; 

(b) 

the adoption of the annual plans and their revisions; 

(c) 

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

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

well as of the national food distribution programmes; 

(e) 

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

(f) 

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

(g)  provisions on administrative and physical controls to be undertaken 

by the Member states; 

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

(i) 

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

(3) 

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

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

(4) 

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

"Article 196a 

Delegated acts 

1. 

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

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

2. 

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

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

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

3. 

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

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

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

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

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Article 196b 

Implementing acts 

1. 

2. 

For  the  adoption  by  the  Commission  of  the  implementing  acts  referred  to  in 
this  Regulation  the  procedure  provided  by  Article  [X]of  Regulation  (EU)  No 
[XXX/XXXX] of the European Parliament and the Council shall apply. 

The  Commission  shall  be  assisted  by  the  Management  Committee  for  the 
Common  Organisation  of  Agricultural  Markets  set  up  by  Article  195  of 
Council Regulation (EC) No 1234/2007." 

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

Article 2 

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

Done […] 

For the European Parliament 
The President 

For the Council 
The President

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FINANCIAL STATEMENT 

BUDGET HEADING: 
05 02 04 01 

Fichefin/478963rev2 
(FB/nh) 
6.5.2011.1 

DATE: 27/09/2011 
APPROPRIATIONS: 
500 M€  in B-2011  
500 M€   in DB-2012  

TITLE: 
Amended Proposal for a Regulation (EU) No…/….of the European Parliament and of the Council 
amending Council Regulation (EC) No 1290/2005 and Council Regulation (EC) No 1234/2007 as 
regards distribution of food products to the most deprived persons in the Union. 
LEGAL BASIS: 
Articles 42, 43(2) and 175(3) of the Treaty on the Functioning of the European Union 
AIMS: 
The proposed rules are designated to implement the new provisions for the food distribution scheme to 
the most deprived persons in the Union 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 

FOLLOWING 
FINANCIAL 
YEAR 

CHARGED TO THE EU BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

(EUR million) 
500 

(EUR million) 
- 

(EUR million) 
- 

1. 

2. 

3. 

4. 

5. 

5.0 

5.1  REVENUE 

- 

- 

- 

OWN RESOURCES OF THE EU  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

- 

2010 

2011 

- 

- 

2012 
 500 
- 

2013 
500 
- 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

YES NO 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

YES NO 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 
 The proposal includes an annual budget ceiling of 500 M€. 

YES NO 
YES NO 

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