Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the aid scheme for the supply of fruit and vegetables, bananas and milk in the educational establishments
Date: 2014-01-30
Institutions: European Commission
Subjects: EU financing, EU programme, State aid, drinking milk, early fruit and vegetables, nursery school, nutrition, tropical fruit













EUR-Lex - 52014PC0032 - EN











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52014PC0032

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the aid scheme for the supply of fruit and vegetables, bananas and milk in the educational establishments /* COM/2014/032 final - 2014/0014 (COD) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
General context
The Regulation (EU) No 1308/2013 of the
European Parliament and of the Council (single Common Market Organisation
Regulation)[1]
provides for a legal and financial framework governing the distribution of
selected agricultural products to children in schools through the School Milk
Scheme and the School Fruit Scheme.
The two schemes have developed independently
and in different time periods. The School Milk Scheme dates back to the
creation of the Common Market Organisation for milk in 1968 and has been
actually implemented since 1977. The School Fruit Scheme is a more recent
programme that came out as a political commitment in the context of the 2007
reform of the Common Market Organisation for fruit and vegetables. The current
schemes operate within different legal and financial frameworks, and have some
important differences in their design and functioning.
Both school schemes were established in
order to promote the consumption of fruit and vegetable and milk products,
which are important sectors for the European agriculture, each representing
approximately 15% of the value of European Union (EU) agricultural output.
Besides their economic importance, they are beneficial in the public health
context and are suitable for the distribution to school children.
The rationale which led to the
establishment of the two school schemes is still relevant in the current
context of declining consumption of fruit and vegetables and milk products.
Despite different health and agricultural promotion efforts both at the
national and EU level to increase the consumption, the declining trends have
not been reversed, particularly for fresh fruit and vegetables and drinking
milk. This situation is exacerbated amongst others by the modern consumption
trends towards highly processed foods which are often high in added sugars,
salt and fat, and will be boosted by younger age groups.
Despite the positive embedding of the current
schemes in schools and the acknowledgement of their relevance, conclusions
drawn from different reports and external evaluations highlight certain
weaknesses in their design and inefficiencies in their functioning.
The CAP 2020 already contains important
elements that are expected to solve some of the identified problems, in
particular through significant changes to the financing of the School Fruit
Scheme and strengthening of its educational dimension. The new requirement
under the Scholl Milk Scheme that participating Member States should draw up a
strategy will help focus the implementation of the scheme, as it is already the
case for School Fruit Scheme. However, the Commission CAP 2020 proposal was
adopted before the external evaluations of the current schemes were finalised
and it preceded also the European Court of Auditors (hereinafter ECA) report.
Objectives of
the proposal
The proposal aims not only to address the
endogenous problems inherent to the functioning of the schemes in order to
increase their efficiency and effectiveness, but it also aims at providing a
more unified policy response to ensure that they are capable of meeting the
long-term objectives and effectively respond to the external challenges. This
is in line with the ECA recommendation that "there should be greater
coordination and synergy between the two schemes in order to ensure a globally
consistent approach to nutrition and that the programmes are managed
efficiently". With this proposal, the Commission also responds to the
reporting obligation stemming from Article 225(c) of the Regulation concerning
the possibility of extending the scope of the school schemes to include olive
oil and table olives.
Firstly, the proposal aims to refocus the
current set-up towards the long-term objectives, with a view of strengthening
the educational dimensions of both schemes, and to contribute to reconnecting
young citizens with food and its source, thus enhancing perceptions of
agriculture and its products, the CAP and the EU. Currently, there is a gap
between the design of the schemes and these objectives, as the latter are
addressed differently in the two schemes. The educational dimension was built
into the School Fruit Scheme from the beginning, while the School Milk Scheme does
not oblige Member States to use specific educational measures, making the link
between the products distributed and the scheme low. Furthermore, the
evaluation and monitoring system of the School Milk Scheme is weak, while the
system of the School Fruit Scheme needs improvements, which is important for
measuring their medium- or long-term effectiveness.
Secondly, the goal is to unify and
consolidate the current separate legal and financial frameworks and increase
the visibility of the EU intervention, in order to ensure a globally consistent
CAP approach to school distribution and maximise the management efficiency. As
the current schemes have developed independently and in different time periods,
there is a lack of coordination and consistency between them, even though they
pursue similar objectives and target groups. The current fragmented system
entails a multitude of different approaches and messages, which could
negatively impact the effectiveness of the regime as a whole. This problem
stems from the different legal and financial frameworks, market differences
between the products involved and decisions at Member State level on how to
implement the two schemes.
Last but not the least, there is a need
to increase the efficiency of the spending dedicated to the promotion of the
consumption of agricultural products in schools, where the financial
potential of the schemes would be better targeted to maximise their impact and
the cost-effectiveness of distribution would be increased. Some of the current deficiencies
are common (such as a high administrative and organisational burden), while
others are specific either for the School Fruit Scheme (most notably the
under-execution of around 30% of its potential as well as huge disparities in
the costs for products involved in the distribution) or for the School Milk Scheme
(potential deadweight effect, low cost-benefit ratio).
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
The review of school schemes started in October
2012. 
During the Impact Assessment process, a
public consultation was conducted, inviting interested parties to contribute to
the review. The public consultation process was based on a consultation
document that was structured around 9 open-ended questions. The consultation
ran for 12 weeks and was conducted on the basis of an online questionnaire. In
addition, separate meetings and hearings were organised in the course of the
process, including stakeholders meeting on 15 March 2013.
The three scenarios elaborated in the Impact
Assessment are 1) "status quo" option that maintains the separate
frameworks for the school distribution but integrates the improvements made to
the school schemes by CAP 2020; 2) an "adjustment" scenario that explores
whether the objectives of the review could be achieved within the current separate
setting but through the measures/changes aimed at bridging the gap in the
educational dimensions of the current schemes, increasing the synergies between
the two schemes, further simplification and improvements to the programmes
beyond CAP 2020; and 3) a "new framework" scenario that entails a
considerable policy change in the form of common legal and financing framework
for the distribution of a restricted number of products, complemented by the
orientation towards the long-term objectives through the strengthened
educational dimension of the scheme.
On the basis of the evaluations of the
current policy frameworks and the analysis of future challenges and needs, the
impact assessment evaluates and compares the impacts of these three alternative
policy scenarios against their potential to achieve the objectives, and in
terms of effectiveness, efficiency and coherence with over-arching objectives:
–                        
The status quo scenario, with a strengthened School
Fruit Scheme, would further exacerbate the existing gaps in the educational
dimension between the School Fruit Scheme and the School Milk Scheme and not
bring much in terms of management efficiency. It also brings a limited contribution in providing a uniform and visible EU
intervention. Whilst budgetary neutral, it contains certain budgetary uncertainty
with no limitation on the School Milk Scheme funding. It keeps the high level
of administrative burden compared to the benefits (low cost-benefit), strong
variations in efficiency due to high disparities in costs of products for the School
Fruit Scheme and continued potential deadweight effect in the School Milk
Scheme. There are doubts whether this option could provide a suitable response
to some of the emerging challenges related to the consumption patterns and demand
for fresh agricultural products. It has been seen as having a limited
contribution to horizontal objectives of better regulation and simplification,
while it scores better with its potential in contributing to public health
objectives of reducing health inequalities through national strategies and
targeting.
–                        
On the other hand, the main impacts arising from
the adjustment option are expected to come through the strengthening of School
Milk Scheme educational dimension and synergies in the implementation of both
schemes, whilst keeping the current separate setting. This would provide better
contribution to the long-term objectives of sustainably increasing the demand
these agricultural products and shaping healthier eating habits. It is positive
as regards the increased synergies but these are limited due to different
financial arrangements between the schemes. Lower administrative burden brings
more benefits, lower complexity through synergies and common procedures.
–                        
New framework option shifts the focus of the
current school regime towards a set-up with measures that better fulfil the
long-term objectives of the schemes and it bridges the gaps in the design that
currently exist between the two schemes. It furthermore gives greater
flexibility to Member States to manage the school programme and focus their
actions based on priority needs, with a necessary budgetary flexibility to
operate between different financial entitlements and respond to changing
situations. Additionally, it is designed to give the greatest impact of school
intervention within a fixed budget. It eliminates the uncertainties linked to
the EU budget, as it sets a fixed annual limit for the school intervention,
which reflects the current (CAP 2020) absorption potential. With improved
financing arrangements and conditions for participation, the existing potential
could be used with greater efficiency.
On this basis, the Impact Assessment
concludes that the "new framework" scenario is the most balanced in
progressively refocusing the school schemes regime towards the long-term goals,
enabling them to better respond to the overarching problems of declining fruit
and vegetable and milk consumption and rising obesity, and establishing a
critical link with agriculture a variety of its products.
Simplification has been an important
consideration throughout the process and should be enhanced in several ways,
most of which will come notably through the simplification on the basis of
Commission acts where certain requirements will be merged or removed.
3.           LEGAL ELEMENTS OF THE
PROPOSAL
It is proposed to establish a common legal
and financial framework for the distribution of fruit and vegetables and milk
to children in schools, supported by strengthened educational measures to
reaffirm the link with agriculture and a variety of its products, as well as
wider issues such as public health and environmental matters. The new framework
would be budget neutral and would operate within the budget foreseen for the
schools schemes under CAP 2020. The structure of the new scheme is built
largely on the existing elements of the two schemes which are considered as
well-functioning and efficient.
The proposal is based on Articles 42 and 43(2)
of the Treaty. It complies with the principles of subsidiarity and proportionality
whereby the framework for action and the basic principles are set at the EU
level, whilst Member States still have the leeway to tailor the scheme based on
their priorities and in line with national/regional specificities, and to set
their targets and implementation modalities.
The key elements of the new proposal are
the following:
–                        
Refocus the distribution: it is proposed to focus
the distribution of products in schools to two "core products": fresh
fruit and vegetables (including bananas) and drinking milk only, with the fat
content of drinking milk to be decided upon by national health authorities.
This focus would be beneficial for several reasons, especially since the
distribution would take place within a fixed budget, it would reduce
organisational burden for schools, and is in line with the need to help reverse
the declining consumption trends for these two groups of products.
Additionally, this would be in line with the overall practice, as fresh fruit
and vegetables and drinking milk are the most distributed products under the
current schemes. However, Member States could include also a wider variety of
agricultural products in the framework of the thematic educational measures.
–                        
Unify the financial provisions and improve
financing conditions in order to increase the efficiency of spending:
–              
Considering the differences between the products
and their supply chains, as well as the different consumption situation across
the Member States, separate "envelopes" would be allocated to Member States for fruit and vegetables (including bananas) and milk. An envelope for the fruit
and vegetables in line with the CAP 2020 budget (EUR 150 million) and an
envelope for milk corresponding to the expected use of funds (EUR 80 million). Certain
flexibility would be provided for, where Member States could transfer limited
shares of their allocations between the envelopes based on their needs
(prioritising of intervention through strategies). Within those envelopes,
thresholds would be established for supporting measures and other eligible
measures, such as evaluation, monitoring and communication.
–              
Based on the experience so far, the level of EU
contribution towards the price of products would be limited through a maximum
EU aid per portion for fruit and vegetables and for milk, and not through the
EU co-financing levels as was so far the case for the School Fruit Scheme. This
would be a new element for fruit and vegetables, which would help alleviate the
huge disparities in the price for products distributed and would imply a
simplification in terms of a management. The level of EU subsidy for the milk
would be increased in order to reduce the deadweight effect (by enabling the
distribution free of charge or close to it) and increase the cost-benefit of
distribution. These elements of the proposal respond to the commitment
undertaken by the Commission[2]
in the context of the adoption of the Council Regulation (EU) No 1370/2013[3] to review the financing
arrangements of the current schemes, namely the aid for the distribution of
milk as well as the co-financing of the school fruit scheme costs. Member States
will be allowed to continue providing national top-ups or attract private
funding in order to enlarge the scope and/or the intensity of their intervention
of the school schemes.
–                        
Reinforce the educational dimension: supporting
educational measures would become a requirement also for the milk distribution,
thus bridging the gap between the current schemes. These measures would have a
strong educational dimension, with a focus on agricultural issues,
nutrition/health (balanced diets) and environment maters. In addition, they
would provide a critical instrument to (re)connect the children with food,
agricultural production and farmers. Educational measures should target the
school population and if possible involve the family and community as well and
address the wider issue of the existing offer of healthy options of food and
beverages at schools. They are useful as evidence shows that many children grow
up not knowing where their food comes from – where and how it is produced and what
are products of certain seasons. Member States could therefore choose thematic
educational measures that could occasionally include also agricultural
products, other than the two core products, such as for example yoghurts,
processed fruit and vegetables, honey, olive oil, and similar. The list of all
products supplied under the scheme and their nutritional aspects have to be
approved by national health authorities. Supporting educational measures would
have to be directly linked to the agricultural objectives of the scheme and be
in line with the objective of promoting healthy diets.
4.           BUDGETARY IMPLICATION
The impact of the proposal is budgetary
neutral compared to the status quo. For fruit and vegetables, the budgetary
ceiling currently set in the Regulation No 1308/2013 (EUR 150 million per
school year) is maintained in this proposal. For milk, the proposal includes an
envelope of EUR 80 million per school year, corresponding to the expected budget
execution and in line with the overall amounts for market-related expenditure
and direct aids taken into account in the Multiannual Financial Framework
2014-2020. 
As regards the distribution of expenditure,
the highest support will be given to the distribution and supporting
educational measures. Other costs, such as evaluation, monitoring and
communication, will also be eligible to a more limited extent. The ceilings for
the costs of supporting educational measures and for other related costs will
be set by the Commission in light of the experience with the current
programmes.
Details on the budgetary
and financial implications are provided in the legislative financial statement
accompanying the proposal.
2014/0014 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
amending Regulation (EU) No 1308/2013 and
Regulation (EU) No 1306/2013 as regards the aid scheme for the supply of fruit
and vegetables, bananas and milk in the educational establishments
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 Articles 42 and 43(2)
thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[4],
Having regard to the opinion of the
Committee of the Regions[5],
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       Section 1 of Chapter II of
Title I of Part II of Regulation (EU) No 1308/2013 of the European Parliament
and of the Council[6]
provides for a school fruit and vegetables scheme including bananas and a school
milk scheme.
(2)       The experience gained with
the application of the current schemes, together with the conclusions of the
external evaluations and subsequent analysis of different policy options, point
to the conclusion that the rationale which led to the establishment of the two
school schemes is still relevant. In the current context of declining
consumption of fruit and vegetables including bananas and milk products,
exacerbated by amongst other things, the modern trend towards the consumption
of highly processed foods which, additionally, are often high in added sugars,
salt and fat, the Union aid to finance the supply to children in educational
establishments of selected agricultural products should therefore continue to exist.
(3)       The analysis of different
policy options points out that a unified approach under a common legal and
financial framework is more appropriate and effective in meeting the specific
objectives that the Common Agricultural Policy is pursuing through school
schemes. This would allow Member States to maximise the impact of distribution
within a constant budget and increase the management efficiency. However, in
order to take into account the differences between the fruit and vegetables including
bananas and milk products and their supply chains, certain elements should
remain separate, such as the respective budgetary envelopes. In light of the experience
with the current schemes, the participation in the scheme should continue to be
voluntary for Member States. Taking into the account the different consumption
situations across Member States, the possibility should be given to
participating Member States to choose whether they want to distribute all or
just one of the products eligible for the supply to children in educational
establishments.
(4)       A trend of declining consumption
in particular of fresh fruit and vegetables including bananas and drinking milk
has been identified. It is therefore appropriate to focus the distribution under
the school schemes on these products. This would in turn also help reduce the
organisational burden for schools, increase the impact of the distribution
within a limited budget and would be in line with the current practice, as
these products are most frequently distributed.
(5)       Educational measures that
support the distribution are necessary in order to make the scheme effective in
reaching its short- and long-term objectives of increasing the consumption of
selected agricultural products and shaping healthier diets. Considering their
importance, these measures should support both the fruit and vegetables including
bananas and milk distribution. They should be eligible for the Union aid. As
supporting measures they represent a critical tool to reconnect children with
agriculture and its different products and to meet the objectives that the
scheme is pursuing, Member States should be allowed to include a wider variety
of agricultural products into their thematic measures. However, so as to
promote healthy eating habits, the national health authorities should be
involved in this process and approve the list of these products, as well as the
two groups of products eligible for the distribution, and decide on their
nutritional aspects.
(6)       In order to ensure a sound
budgetary management, a fixed ceiling of the Union aid towards the distribution
of fruit and vegetables including bananas and milk, supporting educational
measures and related costs should be provided for. This ceiling should reflect
the current situation. In light of the experience gained and with a view to simplify
the management, the financing models should be approximated and based on a
single approach as regards the level of Union financial contribution. It is
therefore appropriate to limit the level of Union aid towards the price of
products through a maximum Union aid per portion both for fruit and vegetables including
bananas and milk and abolish the principle of obligatory co-financing for fruit
and vegetables including bananas. Considering the price volatility of products
in question, the power to adopt certain acts should be delegated to the Commission
in respect of measures setting the levels of the Union aid towards the price of
a portion of products and laying down the definition of a portion.
(7)       In order to ensure the
efficient and targeted use of Union funds, the power to adopt certain acts should
be delegated to the Commission in respect of measures fixing the indicative
allocations of the Union aid to each Member State and the methods for
reallocating aid between Member States on the basis of aid requests received. The
indicative allocations should be fixed separately for the fruit and vegetables including
bananas and milk in line with the voluntary approach to distribution. The
allocation key for fruit and vegetables including bananas should reflect the current
allocations by Member States, based on the objective criteria of the number of
children in the age group of six- to ten-year olds as a proportion of the
population, taking into the account also the development status of regions
concerned. In order to allow Member States to maintain the scale of their
current programmes and with a view of encouraging others to take up the
distribution of milk, it is appropriate to use the combination of two keys for
the allocation of the funds for milk, namely the historical use of funds by
Member States under the School Milk Scheme and the objective criteria of the
number of children in the age group of six- to ten-year olds as a proportion of
the population used for the fruit and vegetables including bananas. In order to
find the right proportion for these two keys, the power to adopt certain acts
should be delegated to the Commission in respect of adopting additional rules
concerning the balance between the two criteria. Furthermore, considering the
recurrent changes in the demographic or development situation of regions in
Member States, the power to adopt certain acts should be delegated to the
Commission in respect of assessing every three years whether the Member States'
allocations, based on those criteria, are still up to date.
(8)       In order to allow the
Member States with a limited demographic size to implement a cost effective
scheme, the power to adopt certain acts should be delegated to the Commission
in respect of setting the minimum amount of the Union aid that Member States
are entitled to receive for fruit and vegetables including bananas and milk.
(9)       In the interest of sound
administration and budget management, Member States wishing to participate in
the distribution of fruit and vegetables including bananas and/or milk should
apply every year for the Union aid. With a view of simplifying the procedures
and management, this application should be done on the basis of separate aid
requests. Following the requests of the Member States, the Commission should
decide on the definitive allocations for fruit and vegetables including bananas
and milk within the appropriations available in the budget and after taking
into account limited transfers between their allocations, which encourage
prioritising of distribution based on the nutritional needs, The power to adopt
certain acts should be delegated to the Commission in respect of the measures setting
the conditions and the limits concerning these transfers.
(10)     The national strategy should
be considered as the condition for the Member State's participation in the
scheme and as a strategic multiannual document, setting out targets to be
achieved by Member States and their priorities. Member States should be allowed
to update them regularly, in particular in light of the evaluations and
reassessment of priorities or targets.
(11)     In order to ensure the
visibility of the scheme, Member States should explain in their strategy how
they will guarantee the added value of their scheme, especially where products
financed under the Union scheme are consumed at the same time as other meals
provided to children in an educational establishment. In order to ensure that
the educational purpose of the Union scheme is attained and effective, the
power to adopt certain acts should be delegated to the Commission in respect of
the rules concerning the distribution of the products financed under the Union
scheme in relation to the provision of other meals in educational
establishments and their preparation.
(12)     In order to ensure that the
price of products provided to children under the scheme fully reflects the
amount of the aid provided and that subsidised products are not deflected from
their intended use, the power to adopt certain acts should be delegated to the
Commission in respect of establishment of price monitoring under the scheme.
(13)     Considering that the
co-financing principle is abolished for the fruit and vegetable distribution,
it is necessary to amend the appropriate provisions of Regulation (EU) No 1306/2013[7].
(14)     Regulations (EU) No 1308/2013
and (EU) No 1306/2013 should be amended accordingly. To take into account the
periodicity of the school year, the new rules should therefore become
applicable as from 1 August 20XX,
HAVE ADOPTED THIS REGULATION:
Article 1
Amendment to Regulation (EU) No
1308/2013 establishing a common organisation of the markets in agricultural
products
Regulation (EU) No 1308/2013 is amended as
follows:
(1)        The title of Section 1 of
Chapter II of Title I of Part II is replaced by the following:
'AID FOR THE SUPPLY OF AGRICULTURAL PRODUCTS IN
EDUCATIONAL ESTABLISHMENTS'
(2)           the heading "Subsection
1" and the title " School fruit and vegetables schemes" are
deleted;
(3)          Article 23 is replaced by the
following:
"Article 23
Aid for the supply of fruit and
vegetables, bananas and milk, supporting
educational measures and related costs
1.      The Union aid shall be granted in
respect of children in the educational establishments referred to in
Article 22:
(a)     for the supply of fruit and vegetables,
bananas, and milk;
(b)     for supporting educational measures;
and
(c)     to cover certain related costs linked
to logistics and distribution, equipment, publicity, monitoring and evaluation.
2.      Member States wishing to participate
in the aid scheme established in paragraph 1 (" the school scheme")
may distribute either fruit and vegetables including
bananas or milk falling within CN code 0401, or both.
3.      As a condition for their participation
in the school scheme Member States shall draw up, prior to their participation
in the school scheme, and subsequently every 6 years, at national or regional
level, a strategy for the implementation of the scheme. The strategy may be
amended by a Member State, in particular in the light of monitoring and
evaluation. The strategy shall at least identify the needs to be met, the
ranking of the needs in terms of priorities, the target population, the results
expected and the quantified targets to be attained in relation to the initial
situation, and lay down the most appropriate instruments and actions for
attaining those objectives.
4.      Member States shall, in order to make
the school scheme effective, also provide for the supporting educational measures,
which may include measures and activities aimed at connecting children with
agriculture and a wider variety of agricultural products, educating about related
issues, such as healthy eating habits, combating food waste, local food chains
or organic farming.
5.      When drawing up their strategies,
Member States shall determine a list of agricultural products, in addition to fruit
and vegetables, bananas and milk, that may occasionally be included under the
supporting educational measures.
6.      Member States shall choose the
products to be featured in the distribution or to be included in supporting
educational measures on the basis of objective criteria which may include the
health and environmental considerations, seasonality, variety, or availability
of local produce, giving priority to the extent practicable to products
originating in the Union, particularly to local purchasing, organic products,
short supply chains or environmental benefits.
7.      Member States shall, in order to
promote healthy eating habits, ensure that their competent health authorities
endorse the list of all the products supplied under the school scheme and decide
on their nutritional aspects."
(4)          Article 23a is inserted:
"Article 23a
Financing provisions
1.      The aid under the school scheme allocated
for the distribution of products, the supporting educational measures and the
related costs referred to in Article 23(1), and without prejudice to the
provisions in paragraph 4, shall not exceed: 
(a)     for fruit and vegetables and bananas:
EUR 150 million per school year;
(b)     for milk: EUR 80 million per school
year.
The Commission shall be empowered to adopt delegated
acts in accordance with Article 227 determining the level of Union aid that may
be paid towards the price of the portion of fruit and vegetables including bananas and milk distributed and laying down the definition of a portion. The
Commission shall also be empowered to adopt delegated acts in accordance with
Article 227 fixing a minimum amount and a maximum amount for the financing of
supporting educational measures from Member States' annual definitive
allocations.
2.      The aid
referred to in paragraph 1 shall be allocated to each Member State taking into account of the following:
(a)     for fruit and vegetables including bananas: the objective criteria
based on:
(i)       the number of six- to ten-year old
children as a proportion of the population, 
(ii)     the degree of development of the
regions within a Member State so to ensure higher aid to less developed regions
within the meaning of Article 3(5) of this Regulation, the outermost regions listed
in Article 349 of the Treaty or and the smaller Aegean Islands within the
meaning Article 1(2) of Regulation (EU) No 229/2013, and 
(b)     for milk: the historical use of funds under
previous schemes for the supply of milk and milk products to children and
objective criteria based on their proportion of six- to ten-year old children. 
The Commission shall assess at least every
three years whether the indicative allocations for fruit and vegetables including bananas and for milk remain
consistent with objective criteria referred to in this paragraph. 
3.      Member States shall apply every year
for the participation in the school scheme by submitting their request for the
Union aid for each product they wish to distribute as referred to in Article 23(1)(a).
4.      Without exceeding the global ceiling
of EUR 230 million resulting from the amounts referred to under points (a) and
(b) of paragraph 1, Member States may transfer up to 15%
of their indicative allocations for fruit and vegetables including bananas or
for milk to the other sector under the conditions to be specified by the Commission
by means of delegated acts adopted in accordance with Article 227.
5.      The school scheme shall be without
prejudice to any separate national school schemes which are compatible with
Union law.
6.      Member States may, in addition to
Union aid, grant national aid in accordance with Article 217.
7.      The Union may also finance, pursuant
to Article 6 of Regulation (EU) No 1306/2013 , information, monitoring and
evaluation measures relating to the school scheme, including raising public
awareness of it, and related networking measures.
8.      Member States participating in the school
scheme shall publicise, at the places where the food is distributed, their
involvement in the scheme and the fact that it is subsidised by the Union. Member States shall ensure the added value and the visibility of the Union school
scheme in relation to the provision of other meals in educational
establishments."
(5)          Articles 24 and 25 are replaced
by the following: 
"Article 24
Delegated powers
1. In order to promote the healthy eating
habits of children and to ensure that the aid under the school scheme is aimed
at children in the target group referred to in Article 22, the Commission shall
be empowered to adopt delegated acts in accordance with Article 227 concerning
rules on:
(a)     the additional criteria related to the
targeting of aid by Member States;
(b)     the approval and selection of aid
applicants by Member States;
(c)     the drawing-up of the national or
regional strategies and on the supporting educational measures.
2.      In order to ensure the efficient and
targeted use of European funds, the Commission shall be empowered to adopt
delegated acts in accordance with Article 227 concerning:
(a)     the indicative allocation of aid
between Member States for fruit and vegetables including bananas and milk and
where appropriate its revision following the assessment referred to in the
second subparagraph of Article 23a(2), the minimum amounts of Union aid
for each Member State, the method for reallocating the aid allocation between
Member States based on aid applications received, and the additional rules
concerning how the criteria referred to in the first subparagraph of Article 23a(2)
shall be taken into account for the allocation of the funds,
(b)     the conditions concerning the
transfers between the allocations for fruit and vegetables including bananas and
milk;
(c)     the costs and/or measures that are
eligible for Union aid and the possibility of fixing minimum amounts and
maximum amounts for specific costs;
(d)     the obligation for Member States to
monitor and evaluate the effectiveness of their school scheme.
3.      In order to promote awareness of the school
scheme the Commission shall be empowered to adopt delegated acts in accordance
with Article 227, requiring Member States with a school scheme to
publicise the subsidising role of the Union aid.
4.      In order to ensure the added value and
the visibility of the Union scheme, the Commission shall be empowered to adopt
delegated acts in accordance with Article 227 in respect of the rules
concerning the distribution of products in relation to the provision of other meals
in educational establishments.
5.      Taking into account the need to ensure
the aid is reflected in the price at which the products are available under the
school scheme, the Commission may, by means of delegated acts in accordance
with Article 227, adopt rules on the establishment of price monitoring under
the scheme.
Article 25
Implementing powers in accordance with
the examination procedure
The Commission may, by means of implementing acts,
adopt the measures necessary for the application of this Section
including:
(a)     the definitive allocation of aid for
fruit and vegetables including bananas and/or milk between participating Member
States within the limits set out in Article 23a(1), taking account of
the transfers referred to in Article 23a(4);
(b)     the information to be contained in
Member States' strategies;
(c)     the aid applications and payments;
(d)     the methods of publicising, and
networking measures in respect of, the school scheme;
(e)     the submission, format and content of
monitoring and evaluation reports by Member States participating in the school
scheme;
(f)      the management of price monitoring."
(6)          Subsection 2 is deleted.
(7)          Article 217 is replaced by the
following: 
"Article 217
National payments for distribution of
products to children
Member States may, in addition to Union aid
provided for in Article 23, make national payments for supplying the products
to children in educational establishments or for the related costs referred to
in Article 23(1)(c).
Member States may finance those payments by
means of a levy on the sector concerned or by any other contribution from the
private sector.
Member States may, in addition to Union aid
provided for in Article 23, make national payments for financing supporting
educational measures, as referred to in Article 23(4)."
(8)          Annex V is deleted. 
Article 2
Amendment
to Regulation (EU) No 1306/2013 
In Article 4(1) of Regulation (EU) No 1306/2013
, point (d) is replaced by the following:
"(d)    The Union’s financial contribution
to the measures related to animal diseases and loss of consumer confidence as referred
to in Article 220 of Regulation (EU) No 1308/2013."
Article 3
Entry into force and application 
This Regulation shall enter into force on
the […] day following that of its publication in the Official Journal of the
European Union.
It shall apply from 1 August X year
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament                        For
the Council
The President                                                 The
President
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative 
              1.4.    Objective(s)

              1.5.    Grounds
for the proposal/initiative 
              1.6.    Duration
and financial impact 
              1.7.    Management
mode(s) envisaged 
2.           MANAGEMENT MEASURES 
              2.1.    Monitoring
and reporting rules 
              2.2.    Management
and control system 
              2.3.    Measures
to prevent fraud and irregularities 
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
              3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
              3.2.    Estimated
impact on expenditure 
              3.2.1. Summary of
estimated impact on expenditure 
              3.2.2. Estimated impact
on operational appropriations 
              3.2.3. Estimated impact
on appropriations of an administrative nature
              3.2.4. Compatibility
with the current multiannual financial framework
              3.2.5. Third-party
contributions 
              3.3.    Estimated impact on revenue
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
Regulation of the European Parliament and of the Council amending
Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the
aid scheme for the supply of fruit and vegetables, bananas and milk in the
educational establishments
Council Regulation amending Regulation (EU) No 1370/2013 determining
measures on fixing certain aids and refunds related to the common organisation
of the markets in agricultural products
1.2.        Policy area(s) concerned
in the ABM/ABB structure[8] 
1.3.        Nature of the
proposal/initiative 
¨ The proposal/initiative relates to a new action 
¨ The proposal/initiative relates to a new action
following a pilot project/preparatory action[9]

¨ The proposal/initiative relates to the extension of
an existing action 
X The proposal/initiative relates to an action
redirected towards a new action 
1.4.        Objective(s)
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
The proposal aims to sustainably increase the share of fruit &
vegetables (F&V) and milk products in the diets of children, thus
contributing to the objectives of the common agricultural policy (CAP) of
stabilising the markets and ensuring the demand in the long run. It also aims
to contribute to the wider public health objectives of reducing overweight and
obesity, and diet-related diseases by shaping the sustainable healthy eating
habits.
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective: To improve access to food for sensitive social
groups
ABM/ABB activity(ies) concerned: 05 02 "Interventions in
agricultural markets"
1.4.3.     Expected result(s) and
impact
The proposal is expected to change the knowledge,
attitudes and preferences of young citizens towards food and its source, and
their perceptions of agriculture and its products.
It is also expected to increase the cost-effectiveness of
the distribution of products by better targeting the EU aid. 
Moreover it would increase the part of the budget spent
on accompanying measures thus improving their impact on the target group
consumption and bridging the gap between the educational dimensions of the
School Fruit Scheme (SFS) and School Milk Scheme (SMS).
Finally it would also lead to a common framework per Member State and to increase the visibility of the EU intervention.
1.4.4.     Indicators of results and
impact 
Three levels of indicators have been set regarding the
objectives:
Impact indicators:
-     Change in direct and indirect consumption
of fresh F&V by children after 5 years of intervention
-     Change direct and indirect consumption of
drinking milk by children after 5 years of intervention
-     Improvement in overall dietary quality
Main results indicators:
-     % of the budget available spent on
accompanying measures
-     % of supporting measures implemented
related to agriculture and agricultural products
-     Efficiency level of spending for the promotion
of consumption of agricultural products in schools
Main output indicators:
-     Number of accompanying measures implemented
in Member States (MS)
-     Number of children involved in accompanying
measures and share of total participating
-     MS Number of agri-related accompanying
measures
-     Cost per portion
-     Number of participating MS, schools and
children
-     Volumes of products distributed at school
(number of portions of F&V and milk)
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term 
The needs underpinning the proposal are the need to sustainably
increase the consumption of fruit and vegetables and milk in children and the
need to shape their healthy eating habits.
CAP school schemes as currently implemented have certain weaknesses
in their design and deficiencies in their functioning that need to be
addressed, which limit their potential in achieving the objectives of promoting
the consumption of agricultural products (market objective) and healthy diets
with school children (health objective). 
The problems identified concern the gap between the design of the
schemes and their objectives (different educational tools under the two
schemes), the lack of coordination and consistency between the two schemes and
the deficiencies limiting the immediate impact of spending (high administrative
and organizational burden on both schemes, budgetary under-execution of 30% in
SFS, potential deadweight effect and low cost-benefit ratio in SMS).
The drivers are mainly linked to the regulatory failures, different
financial framework, different implementation in Member States and to some
external factors.
1.5.2.     Added value of EU
involvement
The action at EU level provides the funding necessary for
initiatives across EU and additional sources of financing which permit Member
States to expand the scope of their actions and increase their effectiveness.
If Member States would have to rely exclusively on their own financial
resources, most of them would not be in a position to implement ambitious
initiatives. It also contributes to greater credibility of the schemes in
Member States and improvement of the EU image and awareness. An EU framework
has an added value in facilitating continuous knowledge, transparency,
experience transfer and exchange.
1.5.3.     Lessons learned from
similar experiences in the past
There are currently two EU-funded school distribution programmes
under the remit of the EU's Common Agricultural Policy (CAP) that specifically
target children in school settings, namely the School Milk Scheme (SMS) and the
School Fruit Scheme (SFS). Both schemes share a mutual aim to increase, on a
lasting basis, the share of these products in children's diets at an early
stage when their eating habits are being formed, thus contributing to the CAP
objectives, in particular stabilising markets and ensuring the demand in the
long run. Additionally, the schemes are in line with the wider public health
objectives as they contribute in shaping the sustainable healthy eating habits.

However, despite this positive embedding in schools and recognition
of their potential, conclusions drawn from different reports - in particular
the external evaluations of the SFS and the SMS, initiated by the Commission,
and the special report No 10/2011 of the European Court of Auditors - and
experience after years of implementation, have identified the need to make
further improvements to both schemes to increase their management efficiency
and effectiveness. The recent agreement on the reform of the CAP already
addressed also some of the problems identified.
1.5.4.     Compatibility and possible
synergy with other appropriate instruments
Taking into due account sectorial specificities the proposal is
compatible with the promotion of agricultural products. It is also in line with
public health objectives (weight management, health inequalities), simplification
and with principles and targets as formulated in the Europe 2020 Strategy. 
1.6.        Duration and financial
impact 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
X Proposal/initiative
of unlimited duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.
1.7.        Management mode(s) planned[10] 
¨ Direct management by the Commission
–     
¨ by its departments, including by its staff in the Union
delegations; 
–     
¨  by the executive agencies; 
X Shared
management with the Member States 
¨ Indirect management by delegating implementation tasks to:
–     
¨ third countries or the bodies they have designated;
–     
¨ international organisations and their agencies (to be specified);
–     
¨the EIB and the European Investment Fund;
–     
¨ bodies referred to in Articles 208 and 209 of the Financial
Regulation;
–     
¨ public law bodies;
–     
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
–     
¨ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;
–     
¨ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
In the new scheme monitoring and evaluation are included in the
costs eligible for the EU aid due to their importance for sound management and
assessment of its effectiveness/efficiency towards the objectives identified.
The link with a multiannual (6 years) national/regional strategy is also
established.
The monitoring will be carried out on the basis of the annual MS
reports containing information on the budget used, the number of
school/children participating and the share of the total number of
school/children of the target group, the distribution frequency, duration, time
and system, the average weight and price per portion, the average consumption
per child and the total quantities distributed. Furthermore, the accompanying
measures will be also monitored as concerns the methods used and their cost,
frequency, participating school/children, involvement of stakeholders, products
distributed.
The evaluation process will consist of MS evaluation reports after 5
years of implementation of the scheme to measure medium-term impacts, followed
by an external EU wide evaluation one year after the MS evaluations, to assess
the implementation of the scheme at MS and EU level and assess overall
effectiveness, efficiency, coherence and relevance in accordance with
Commission evaluation standards and guidelines. Moreover, an external study on
long-term impact indicators could be envisaged.
The external evaluations of the SFS and SMS and the Court of
Auditors Special report No 10/2011 on these schemes have been clearly taken
into due consideration for the design of the monitoring and evaluation
processes relating to the new scheme. 
2.2.        Management and control
system 
2.2.1.     Risk(s) identified 
The general risk that can be identified relates to the effectiveness
of the scheme, i.e. that the EU aid reaches the final beneficiaries of the
scheme and effectively contribute towards reaching the scheme's objectives.
Based on the current experience from the SFS, particular attention
should be given to the selection of aid applicants and to procurement
procedures used for awarding contracts for distribution, publicity, monitoring
and evaluation. Control provisions shall also cover the implementation of the
said contracts. Public procurement is a potential issue for the School Scheme.
For other risks, as the possible deadweight effect and excessive
cost of products distributed or margin for suppliers, provisions can be
foreseen (e.g. on the level of EU-aid per portion).
As concerns the accompanying measures, there could be a risk of
overlapping with educational measures provided in schools and with promotion of
agricultural products. To avoid this, the definition of these measures will
involve an EU scientific expert group and their link with the objectives of the
new scheme will be clearly stated. Control provisions related to accompanying
measures shall address the genuineness of expenditure in general, providing
assurance also where those measures are outsourced.
2.2.2.     Information concerning the
internal control system set up
Paying agencies and delegated control bodies at Member State level form the control system.
MS annual reports on controls and checks, based on those already in
use for the current SFS and SMS, will be necessary, to provide details on the
administrative management and on-the-spot checks implemented. 
Moreover, the internal management and control system will make use
of the monitoring and evaluation reports from Member States and of the EU-wide
evaluation. Finally, an EU scientific expert group will provide MS and the
Commission with advice on implementation, monitoring and evaluation. 
2.2.3.     Estimate of the costs and
benefits of the controls and assessment of the expected level of risk of error 
The school scheme will be covered by the existing system of
management and control for EAGF expenditure.
It is considered that the proposal will not lead to an increase in
the error rate for the EAGF.
2.3.        Measures to prevent fraud
and irregularities 
Regulation (EU) No 1306/2013 on the financing, management, and
monitoring of the CAP will apply.
In general, control systems provide for exhaustive administrative
controls of 100% of aid requests, cross-checks with other databases where this
is considered appropriate, as well as on-the-spot checks before payment for a
minimum number of transactions, depending on the risk associated to the regime
in question. If these checks reveal a high number of irregularities, additional
checks must be carried out.
The legislative package to reform the CAP further provides that
Member States shall prevent, detect and correct irregularities and fraud,
impose effective, proportionate and dissuasive penalties, in accordance with
Union legislation or national law and recover any irregular payments plus
interests. It includes an automatic clearance mechanism for irregularity cases,
which provides that where the recovery has not taken place within four years
from the date of the recovery request, or within eight years if legal
proceedings are initiated, the amounts not recovered shall be borne by the Member State concerned. This mechanism strongly encourages Member States to recover
irregular payments as quickly as possible. 
At the initial stage of the new scheme and although a formal EU
approval is not foreseen for the MS strategies, provisions on their content
(and possibly a template) will allow for possible early fraud risk
identification and prevention.
During the implementation, requests for legal interpretation or
advice from the Commission and/or the EU scientific expert group will also help
MS to avoid fraud. 
In addition, ex post checks and a robust follow-up of any
allegations of fraudulent abuse of the scheme will be performed.
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      Existing budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
   || Diff./non-diff. ([11])   || from EFTA countries[12]   || from candidate countries[13]   || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
 2 || 05 02 08 12 – School Fruit Scheme || non-diff. || NO || NO || NO || NO 
 2 || 05 02 12 08 – School Milk || non-diff. || NO || NO || NO || NO 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
   || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
   || NA ||   || NO || NO || NO || NO 
3.2.        Estimated impact on
expenditure 
3.2.1.     Summary of estimated impact
on expenditure 
 Heading of multiannual financial framework || 2 || Sustainable growth: natural resources 
 || DG: AGRI ||   ||   ||   || 2014[14] ||   || 2016[15] || 2017 || 2018 || 2019 || 2020 || TOTAL || 
 || Ÿ Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   ||   || 
 || 05 02 08 12- School Fruit Scheme || Commitments || (1) ||   || 122 ||   || 0 || 0 || 0 || 0 || 0 || 0 || 
 || Payments || (2) ||   || 122 ||   || 0 || 0 || 0 || 0 || 0 || 0 || 
 || 05 02 12 08 – School Milk[16] || Commitments || (1a) ||   || 75 ||   || 0 || 0 || 0 || 0 || 0 || 0 || 
 || Payments || (2a) ||   || 75 ||   || 0 || 0 || 0 || 0 || 0 || 0 || 
 || TOTAL appropriations || Commitments || =1+1a ||   || 197 ||   || 0 || 0 || 0 || 0 || 0 || 0 || 
 || Payments || =2+2a ||   || 197 ||   || 0 || 0 || 0 || 0 || 0 || 0 || 
 || Ÿ TOTAL operational appropriations || Commitments || (4) ||   || 197 ||   || 0 || 0 || 0 || 0 || 0 || 0 
 || Payments || (5) ||   || 197 ||   || 0 || 0 || 0 || 0 || 0 || 0 
 || Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   || 0 ||   || 0 || 0 || 0 || 0 || 0 || 0 
 || TOTAL appropriations for HEADING 2 of the multiannual financial framework || Commitments || =4+ 6 ||   || 197 ||   || 0 || 0 || 0 || 0 || 0 || 0 
 || Payments || =5+ 6 ||   || 197 ||   || 0 || 0 || 0 || 0 || 0 || 0 
 Heading of multiannual financial framework || 5 || " Administrative expenditure " || 
EUR million
   ||   ||   || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 DG: AGRI ||   ||   || 
 Ÿ Human resources || 0 || 0 || 0 || 0 || 0 || 0 
 Ÿ Other administrative expenditure || 0 || 0 || 0 || 0 || 0 || 0 
 TOTAL DG AGRI || Appropriations || 0 || 0 || 0 || 0 || 0 || 0 
 TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0 || 0 || 0 || 0 || 0 || 0 
EUR million
   ||   ||   || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0 || 0 || 0 || 0 || 0 || 0 
 Payments || 0 || 0 || 0 || 0 || 0 || 0 
3.2.2.     Estimated impact on
operational appropriations 
–     
X       The proposal/initiative does not require
the use of operational appropriations 
–     
¨      The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million 
 Indicate objectives and outputs ||   ||   || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 REALISATIONS (outputs) ||   
 Type[17]   || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost 
 SPECIFIC OBJECTIVE || To improve access to food for sensitive social groups ||   
 Output || N° of accompanying measures ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Output || N° of children in accompanying measures ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Output || N° of agri-related accompanying measures ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL COST ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary

–     
¨      The proposal/initiative does not require the use of
appropriations of an administrative nature 
–     
X       The
proposal/initiative requires the use of appropriations of an administrative
nature, as explained below:
EUR million
   || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   
 Human resources || 0 || 0 || 0 || 0 || 0 || 0 
 Other administrative expenditure || 0 || 0 || 0 || 0 || 0 || 0 
 Subtotal HEADING 5 of the multiannual financial framework || 0 || 0 || 0 || 0 || 0 || 0 
 TOTAL || 0 || 0 || 0 || 0 || 0 || 0 
The human resources
appropriations required will be met by appropriations from the DG that are
already assigned to management of the action and/or have been redeployed within
the DG, together if necessary with any additional allocation which may be
granted to the managing DG under the annual allocation procedure and in the
light of budgetary constraints.
3.2.3.2.  Estimated requirements of
human resources 
–     
¨      The proposal/initiative does not require the use of human
resources. 
–     
X       The
proposal/initiative requires the use of human resources, as explained below:
Estimate to be expressed in full time
equivalent units
   || 2016 || 2017 || 2018 || 2019 || 2020 
 XX 01 01 01 (headquarters and Commission's representatives) || 4 || 4 || 4 || 4 || 4 
 XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   
 XX 01 05 01 (Indirect research) ||   ||   ||   ||   ||   
 10 01 05 01 (Direct reserach) ||   ||   ||   ||   ||   
 XX 01 02 01 (CA, SNE, INT from the "global envelope") ||   ||   ||   ||   ||   
 XX 01 02 02 (CA, LA,SNE, INT and JED in the delegations) ||   ||   ||   ||   ||   
 XX 01 04 yy   || - at headquarters   ||   ||   ||   ||   ||   
 - delegations ||   ||   ||   ||   ||   
 XX 01 05 02 (CA,SNE, INT – indirect research) ||   ||   ||   ||   ||   
 10 01 05 02 (CA,SNE, INT – direct research) ||   ||   ||   ||   ||   
 Other budget lignes ( specify) ||   ||   ||   ||   ||   
 TOTAL (*) || 4 || 4 || 4 || 4 || 4 
XX is the policy
area or budget title concerned.
The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.
Description of
tasks to be carried out:
 Officials and temporary staff || Managing legislation, policy making, economic analysis and advice, inter-service coordination and consultation, internal communication and public information, institution representation and negotiation, statistical data handling, 
 External staff ||   
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
X       Proposal/initiative
is compatible with the current multiannual financial framework.
–     
¨      Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
–     
¨      Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.
3.2.5.     Third-party contributions 
–     
The proposal/initiative does not provide for
co-financing by third parties. 
–     
X The
proposal/initiative provides for the co-financing estimated below:
The Union financial contribution for this scheme is indicated in
point 3 of Article 1 of the draft regulation. In addition, the level of Union
aid (flat rate) towards the cost of the portion for fruit and vegetable and
milk will decided by delegated acts.
The level of the EU contribution towards the cost of products will
be limited through a maximum EU aid per portion for products of both fruit
& vegetables and milk. Member States will have the option to provide
national top-ups or to attract private funding in order to enlarge the scope
and/or intensity of their intervention of the school schemes. At this stage it
is not possible to quantify the total amount of third parties' contribution, in
view of the diversity of third parties (public and/or private) and in the
absence of the relevant information at present.
3.3.        Estimated impact on
revenue 
–     
X       Proposal/initiative
has no financial impact on revenue.
–     
¨      Proposal/initiative has the following financial impact:
¨         on
own resources
¨         on
miscellaneous revenue
[1]               Regulation (EU) No 1308/2013 of the European
Parliament and of the Council of 17 December 2013 establishing a common
organisation of the markets in agricultural products and repealing Council
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No
1234/2007 (OJ L 347, 20.12.2013, p.671).
[2]               Special Committee on Agriculture, 11 November 2013. 
[3]               Council Regulation (EU) No 1370/2013 of 16 December
2013 determining measures on fixing certain aids and refunds related to the
common organisation of the markets in agricultural products (OJ L 346,
20.12.2013, p.12).
[4]               OJ C , , p. .             
[5]               OJ C , , p. .
[6]               Regulation (EU) No 1308/2013 of the European
Parliament and of the Council of 17 December 2013 establishing a common
organisation of the markets in agricultural products and repealing Council
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No
1234/2007 (OJ L 347, 20.12.2013, p. 671)
[7]               Regulation (EU) No 1306/2013 of the European
Parliament and of the Council of 17 December 2013 on the financing, management
and monitoring of the common agricultural policy and repealing Council
Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No
814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).
[8]               ABM: activity-based management – ABB: activity-based
budgeting.
[9]               As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.
[10]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[11]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.
[12]             EFTA: European Free Trade Association. 
[13]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[14]             The Budget 2014 amounts are given for information only.
[15]             For comparison reasons, the implementation is assumed
to start in 2016. Moreover, the increase in the envelope for school fruit
agreed in the CAP reform (Council Regulation (EU) No 1370/2013 determining
measures on fixing certain aids and refunds related to the common organisation
of the markets in agricultural products) will be implemented as from school
year 2014/2015 and the amount is assumed to be used in full.
[16]             For the milk scheme, the proposal foresees to fix an
envelope of EUR 80 million per school year. This corresponds to the expected
level of budget execution and is in line with the overall amounts for
market-related expenditure and direct aids taken into account in the
Multiannual Financial Framework 2014-2020.
[17]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).