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# 52013PC0812

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on information provision and promotion measures for agricultural products on the internal market and in third countries /\* COM/2013/0812 final - 2013/0398 (COD) \*/**

  

EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The production of and trading in
agricultural and agri-food products are a major asset for the European Union.
Accounting as it does for 18 % of world exports and 20 % of world
imports, the Union can claim to be the world's number one importer and exporter
of agricultural products, jockeying for position with the United States. Within European manufacturing, the agri-food sector is a front-runner,
providing 13.5 % of jobs and contributing 12.9 % of total sales. It
is made up of 310 000 enterprises, 99.1 % of which are SMEs[1]. Over the years, the European
sector has focussed on quality and added value, offering processed products
which are increasingly popular in Europe and worldwide. These products account for
more than two-thirds of total EU agricultural exports, but still have
considerable development potential.

It is crucial that European agriculture and
the agri-food industry, which is closely dependent on the former, maintain and
increase their competitiveness and their market shares on both the internal and
export markets, while ensuring that undertakings entered into by the EU in its
international trade relations are met. However, European agriculture is faced
today with a much more competitive environment, largely resulting from the
globalisation of markets. This trend should continue in the coming years with
the prospect of the Doha round and various bilateral and regional agreements
currently under negotiation being concluded. Though often feared, these
agreements might also give rise to major opportunities for the sector.

Nevertheless, on the internal market only a
small minority of European consumers are aware of the efforts undertaken by
European farmers to supply high-quality, healthy and safe products. Only
14 % of Europeans recognise the logos of products that benefit from a
protected designation of origin (PDO) or a protected geographical indication
(PGI), these being the main European quality schemes established by the Union. The same goes for exports: the effort of investing in marketing and selling on
distant markets represents a challenge for a sector essentially made up of SMEs
and indeed micro-enterprises.

This situation is without doubt a challenge
for European farmers, but it also opens up prospects which should be given
effective support, in particular using CAP instruments. This is because
the success of European farming will depend on its ability to increase its
market shares and to enable the highly competitive food industry to maintain
its prominent position in the EU in economic and trade terms.

This context calls for a modern and
ambitious policy of promotion, one which learns from the lessons of the
promotional programmes implemented to date and which represents an additional
stage in the modernisation of the CAP. The objective is to support agriculture,
and especially the SMEs and producer organisations which form the backbone of
this sector, so that they can make a strong and dynamic contribution to
European growth for the Union as a whole, and in particular for its rural
areas. This requires a policy of promotion which is restructured for its
beneficiaries (producer, professional and inter-professional organisations,
both at national and European level), which is bolstered in terms of the
resources available to it, and which distinguishes in terms of its approach
between the internal market and third-country markets.

This proposal, which provides for a gradual
but significant increase in the budget allocated to promotion measures, will be
financed from appropriations already earmarked for the EU's Common Agricultural
Policy for the period 2014-2020. This expenditure is estimated on the basis of
the opportunities to be seized in third countries as a result of growing
demand, e.g. in Asia where, by 2050, for ASEAN[2]
member countries alone, agricultural imports are expected to increase by over
17 billion dollars[3].

As well as growing demand from emerging
markets in particular, which are already very important for the EU's agri-food
exports, our access to markets will improve globally with the conclusion of the
numerous trade negotiations that are currently under way. The free-trade
agreements currently being negotiated represent markets with a present value of
around € 35 billion per year for the European agri-food sector. The
acceleration in demand and liberalisation of substantially all trade through
these negotiations will probably make it possible for this figure to be very
significantly increased.  For example, by 2027 an ambitious free-trade
agreement with the United States could increase the EU's agricultural exports
by around 15 % (over € 1.7 billion per year) and its exports of
processed agricultural products by 45 % (over € 13.4 billion per
year)[4].
An ambitious free-trade agreement with Japan could increase agri-food exports
by 137 % in the long term (over € 5.9 billion per year)[5].

This is therefore a strategic and pivotal
opportunity for the European agri-food sector that should, given the importance
of European SMEs in this sector, be seized through an ambitious and innovative
policy. These enterprises need support, expertise and encouragement to exploit
this major opportunity. This requires a far-reaching public policy, equal to
this opportunity. The amounts included in this proposal will enable this policy
to be established in a credible fashion in the coming years.

Background

The Common Agricultural Policy (CAP)
enables the potential of the European agricultural and agri-food sector to be
released and exploited. A reform is under way which will ensure, after 2013,
that this policy feeds directly into the Europe 2020 Strategy for smart,
sustainable and inclusive growth by promoting an agricultural sector which
delivers food security, a sustainable use of natural resources and more dynamic
rural areas. In parallel, reform of the policy for information provision and
promotion measures for agricultural products, one of the instruments of the
CAP, is also needed.

As a CAP tool, the European policy for the promotion of agricultural
products must pursue the objectives of CAP reform up to 2020, and more
particularly the objective of strengthening the competitiveness of European
agriculture both on the internal market and in third countries, focussing on
the following specific goals:

–
Increasing the level of awareness among consumers
of the merits of European agricultural products;

–
Developing and opening up new markets for
European agricultural products on the internal market and in third countries;

–
Enhancing the effectiveness and efficiency of
the policy.

In the CAP context, Union support relating
to information provision and promotion measures for agricultural products has
evolved. Before 2000, information provision and promotion measures were
organised at sectoral level. In 2000 the sectoral measures were merged together
to form a horizontal scheme. From 2000 to 2007, these activities were governed
by two distinct Regulations, one relating to the internal market and the other
targeting third countries[6].
Since 2008, these two approaches have been merged into a single horizontal scheme
(Council Regulation (EC) No 3/2008[7]
and Commission Regulation (EC) No 501/2008[8]),
but without any significant changes to their content.

Objectives of the proposal

This proposal enables information provision
and promotion measures necessary for the agricultural sector to be able to rise
to the many challenges it faces in a context of growing competition and
opening-up of markets to be implemented on the internal market and in third
countries. The success of European agriculture will depend on its ability to
increase its market shares and enable the highly competitive food industry
sector to maintain an important position in the EU’s trade and economy (with
the food chain accounting for 6 % of the Union's gross domestic product
(GDP)).

Measures will follow a European information
and promotion strategy which identifies priorities on markets and products or
messages to be highlighted (e.g. products with high added value), while taking
account of free trade agreement negotiations and the most profitable markets
and avoiding a fragmentation and dispersion of funding. A rebalancing of
measures targeting third countries is also expected with this proposal.

In order to raise the number and quality of
measures in a manner that is consistent with the 2020 CAP reform, which
encourages farmers to organise themselves, the scheme should be opened up to
new beneficiaries, such as producer organisations.

The best return on investment should also
be sought for these measures, and strict guidelines should be established as regards
the possibilities of mentioning the origin of products or brand names as a
means of illustrating the main generic message highlighting the intrinsic
characteristics of European agricultural products.

The programmes submitted by operators from
different Member States make a substantial contribution to European added
value. They promote the diversity of European agricultural products and will be
encouraged as part of the reform.

Commission initiatives, such as high-level
trade missions or participation in international trade fairs, help open up new
markets to European agricultural products.

The proposal includes the development of
new technical support services for stakeholders which favour the exchange of
information on information provision and promotion measures or good practices
and allow their expertise to be developed.

It also aims to simplify the management of
the information and promotion policy. It proposes that the Commission should be
more active in managing multi-country programmes, thereby making it easier for
them to be set up and implemented. The respective roles of the Member State and the Commission in terms of monitoring and control must be clarified in
order to avoid duplication and lengthy procedures. It is proposed that
selection should take place solely at Commission level.

Finally, all action will be accompanied by
a systematic impact assessment in order to confirm that the goals set have
indeed been achieved. An evaluation framework will be set up to gauge how the
promotion policy is performing using a common set of indicators linked to its
strategic objectives, in keeping with the common monitoring and evaluation
framework of the CAP.

EU Added Value

Agricultural policy is a European policy.
Instead of having 28 separate agricultural policies, the Member States pool
their resources in order to pursue a European policy with a common
budget. Agriculture is the only sector governed by a common policy with
common rules - including on the matter of promotion - laid down by the Treaty.
The ongoing reform of the CAP must impact on all the tools making up this
policy.

In particular, in an internal market any
action at EU level will have an important leverage effect in terms of (a)
making it easier to set up generic information programmes which, by their very
nature, are rarely implemented by the Member States or companies, particularly
in the current context of economic crisis, and (b) implementing multi-country
programmes which will give rise to an exchange of experiences between Member States
and to economies of scale.

2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS

Stakeholder consultation

Interested parties have been widely
consulted. A Green Paper launched by the Commission on 14 July 2011 initiated a
debate the results of which were announced at a Conference on the promotion of
European agriculture organised by the Polish Presidency in November 2011. The
Council adopted conclusions on the Green Paper at its meeting in December 2011.
On 20 November 2012, the European Parliament adopted a resolution further
to the adoption of a communication on the subject by the Commission.
Consultations also took place within the Advisory Committee on Promotion and
within a CAP simplification experts' group at meetings in March 2012.

Assessment of the current arrangements

An assessment commissioned by the European
Commission and carried out by an external consultant was published in January
2012. It provided an overall and independent evaluation of the current scheme.
It examined the relevance and effectiveness of the EU's information and
promotion policy for agricultural products in the light of the objectives set
out in Council Regulation (EC) No 3/2008 and its consistency with other
promotion measures applied under the CAP. The analysis covered the period
2002-2010.

Impact assessment

By evaluating the current policy framework
and analysing future challenges and needs, the impact assessment assesses and
compares the impact of three alternative scenarios. These reform scenarios were
developed in line with three distinguishing factors which emerged from the
public debate and the positions adopted by the various stakeholders, i.e.
target market(s), the existence or not of a European promotion strategy and,
finally, the rules on private brands and the origin of products. Three
scenarios were formulated as food for thought in the decision-making process:

•           The ‘improved status quo’
scenario involves a limited adjustment of the promotion policy. It recognises
the policy's added value and seeks to remedy identified weaknesses with a view
to simplifying the policy and making it more accessible, enabling beneficiaries
to make the most of the tools offered, and to back them up with suitable
technical support.

•           The ‘targeted’ scenario, in
addition to what is offered by the improved status quo, ensures better
targeting of promotion measures on the internal and external markets through
the development and implementation of a strategy. It also encourages
collaboration between operators in the various Member States (by means of
directly managed multi-country programmes). The strategy will also allow the
range of products and themes eligible under the promotion scheme to be widened.
Finally, this scenario involves better use of indications of the origin of
products and brand names (e.g. "banner" brands).

•           The ‘exclusive to third
countries’ scenario shares the same level of performance ambition as the
‘targeted’ scenario but concentrates solely on third countries, whereby
promotion measures are managed directly by the Commission in compliance with a
selection strategy. The improvements proposed by the ‘improved status quo’
scenario are also included in this scenario. In addition, over and above
generic promotion, marketing activities for individual private brands would
also be eligible under the scheme and could involve an extended list of
products and themes.

While the ‘improved’ status quo scenario
appears not to be targeted sufficiently at measures with high added value for
the European Union, and the ‘exclusive to third countries’ scenario appears too
risky given the low level of awareness of agricultural products in Europe, the
‘targeted’ scenario emerges from the impact analysis as being the most balanced
scenario for the purposes of defining the outline of a promotion scheme which
is more targeted towards the economic growth needs of agricultural sectors and
markets but which, at the same time, improves the level of awareness among
European consumers confronted with an increasingly vast array of products.

3.           Management of the scheme

The scheme is at present managed on the
basis of shared management (main expenditure linked to the implementation of
programmes) and direct management (information provision and promotion measures
at the Commission's initiative). The current Regulation should lead to a
general and significant increase in the number of measures implemented and thus
to an increase in expenditure subject to shared management and direct
management alike, with a sizeable increase in the share of directly managed
measures following the shift towards this type of management for multi-country
programmes with the aim of encouraging their implementation.

On the basis of a cost/efficiency analysis,
the Commission is able to decide to delegate programme management in full or in
part to an executive agency, subject to compliance with Article 62 of
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the
Council[9].
In the Commission's Communication entitled ‘A budget for European 2020’[10], the Commission proposed that
it should exploit the possibility of making greater use of existing executive
agencies.

In this context, and in accordance with
Article 3(4) of Council Regulation (EC) No 58/2003[11] and Article 6(g) of Regulation
(EU) No xxx/xxxx on the financing, management and monitoring of the common
agricultural policy[12]
[CAP Horizontal Regulation], the Commission intends to outsource certain tasks
relating to the direct management of information provision and promotion
programmes, including for multi-country programmes, and the assessment of
proposals for simple programmes to an existing executive agency with the aim of
providing a better-quality service and enhancing the EU's visibility in its
information and promotion activities for agricultural products.

4.           LEGAL ELEMENTS OF THE PROPOSAL

Legal basis

The proposal is based on Articles 42 and 43
of the Treaty on the Functioning of the European Union.

Subsidiarity and proportionality
principles

· Subsidiarity principle

The EU promotion and information policy
usefully supplements and reinforces the schemes run by Member States by
boosting the image of products in the eyes of consumers in the EU and in third
countries, in particular as regards the quality, nutritional value and safety of
foodstuffs and the methods of production. By helping to open up new markets in
third countries, such action is also likely to have a multiplier effect on
national and private initiatives.

The proposal falls under shared competence
between the EU and the Member States and complies with the subsidiarity
principle.

· Proportionality principle

Due to the increasing liberalisation of
trade, including trade in agricultural and food products, the trade between EU
Member States and third countries is growing in scale. In this context, and in
view of the CAP's market-oriented approach, the regulation on information
provision and promotion measures for agricultural products on the internal
market and in third countries is therefore a crucial instrument that is consistent
with the new framework of the WTO Agreement on agriculture.

It also naturally falls to the EU to
promote the high quality standards of EU agricultural products and to encourage
joint promotional programmes involving more than one EU country or more than
one agricultural sector.

The proposal complies with the
proportionality principle.

5.           BUDGETARY IMPLICATION

Compared to the present situation, the
proposal gradually but significantly increases the budget allocated to
information provision and promotion measures for agricultural products (from
€ 61.5 million in the 2013 budget to € 200 million in
2020). Details of the proposal's financial impact can be found in the financial
statement.

The proposal relating to the 2014-20
Multiannual Financial Framework (MFF) includes the amounts of direct payments
and market-related expenditure for the first pillar of the CAP.  As a
precaution, the Commission has taken account of the conclusions of the European
Council of 8 February 2013 concerning the MFF. Subject to the
adoption of the MMF Regulation, information provision and promotion measures
will be funded within the amounts agreed by the European Council.

2013/0398 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on information provision and promotion
measures for agricultural products on the internal market and in third
countries

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[13],

Having regard to the opinion of the
Committee of the Regions[14],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       In accordance with Council
Regulation (EC) No 3/2008[15],
the Union may implement information provision and promotion measures on the internal
market and in third countries for agricultural products and their production
methods and for certain food products based on agricultural products.

(2)       The aim of these measures
is to enhance the competitiveness of European agriculture in both the internal market
and third countries by increasing consumers' awareness of the merits of the
Union's agricultural products and food products based on agricultural products
and developing and opening up new markets. They usefully complement and
reinforce the measures implemented by the Member States.

(3)       In view of the experience
gained and likely trends in the agricultural sector and on markets both inside
and outside the Union, the scheme established by Regulation (EC) No 3/2008
should be reviewed and made more coherent and effective. Regulation (EC)
No 3/2008 should therefore be repealed and replaced with a new regulation.

(4)       In order to comply with
the competition rules, measures targeting the internal market should be limited
to providing information on the specific characteristics of agricultural
production methods in the Union or on themes which are relevant to the Union,
such as the European quality systems established by Regulation (EU) No 1151/2012
of the European Parliament and of the Council[16].

(5)       Measures are also required
to enhance the authenticity of Union products so as to improve consumers'
awareness as to the qualities of genuine products as compared to imitations and
counterfeit products; this would contribute significantly to awareness in the
Union and third countries alike of the symbols, indications and abbreviations
demonstrating participation in the European quality schemes established by
Regulation (EU) No 1151/2012.

(6)       The Union exports mainly final
agricultural products, including agricultural products not included in Annex I
to the Treaty on the Functioning of the European Union (‘the Treaty’). The
information and promotion scheme should therefore be opened up to certain food
products based on agricultural products, in line with other schemes coming
under the Common Agricultural Policy (CAP), such as the European quality
schemes, which already provide for mechanisms which are open to such products.

(7)       The Union's information
provision and promotion measures relating to wine are one of the landmarks of
the aid programmes available to the wine sector under the CAP. Consequently, the eligibility
of wine for the information provision and promotion measures provided for under
this scheme should be limited solely to wine which is associated with another
agricultural or food product.

(8)       Over the period 2001-11,
barely 30 % of the budget earmarked for information provision and
promotion measures under Regulation (EC) No 3/2008 was spent on measures
targeting third-country markets, even though these markets offer major growth
potential. With the aim of reaching 75 % of estimated expenditure,
specific arrangements are therefore required to encourage a larger number of
information provision and promotion measures for Union agricultural products in
third countries, in particular through increased financial support

(9)       In order to guarantee the
impact of the information provision and promotion measures that are
implemented, these should be developed in the context of information and
promotion programmes. Such programmes have hitherto been submitted by
professional or inter-professional organisations. In order to increase the
number and raise the quality of the measures proposed, the range of
beneficiaries should be widened to include producer organisations. Moreover,
the Commission must be able to supplement programmes by implementing measures
at its own initiative, particularly with a view to contributing to the
opening-up of new markets.

(10)     The information provision
and promotion measures co-financed by the Union should endow them with a
specific European dimension. To that end, and in order to avoid a dispersion of
resources and increase Europe's visibility through these information provision
and promotion measures for agricultural products, it is necessary to establish
a work programme which defines the strategic priorities for these measures in
terms of populations, products, themes or markets to be targeted and the nature
of the information and promotion messages to be imparted. The Commission will
take particular account of the predominant position of small and
medium-enterprises in the agri-food sector, a sector which benefits from the
exceptional measures provided for in Articles 154, 155 and 156 of Regulation
(EU) XXX/20... [of the European Parliament and of the Council of ...
establishing a common organisation of the markets in agricultural products
(Single CMO Regulation) (COM(2011)626)] and from free-trade agreements coming
under the commercial policy of the European Union for measures targeting third
countries.

(11)     In order to ensure that
information provision and promotion measures are implemented effectively, they
should be entrusted to duly selected implementing bodies.

(12)     Over and above the
information provision and promotion measures, the Commission needs to develop
and coordinate technical and support services at European level with the aim of
helping operators take part in co-financed programmes, conduct effective
campaigns or develop their export activities.

(13)     The information provision
and promotion measures for agricultural products that are co-financed by the Union shall not be oriented to commercial brands or to their specific origin. Nevertheless,
the indication of brands or origin might have a leverage effect in the context
of promotion measures, particularly in third countries. While respecting
specific conditions to be established, in particular rights to the protection
of intellectual property, it should therefore be possible to give greater
visibility to brands and origin and, at the same time, maintain a proper
balance with the highlighting of generic messages focussed on the intrinsic
characteristics of the Union's agricultural products and food products based on
agricultural products.

(14)     The Union is keen to simplify
the regulatory environment of the CAP. This approach should also be applied to
the Regulation on information provision and promotion measures for agricultural
products. In particular, the principles of administrative management of
information and promotion programmes should be reviewed with the aim of
simplifying them and enabling the Commission to establish the rules and
procedures applicable to the submission and selection of proposals for
programmes.

(15)     Cooperation between
economic operators in different Member States contributes greatly to increasing
European added value and to highlighting the diversity of European agricultural
products. Despite the priority given to programmes developed jointly by
proposing organisations in different Member States, the latter accounted in the
period 2001-11 for only 16 % of the budget earmarked for information
provision and promotion measures under Regulation (EC) No 3/2008. New
arrangements should accordingly be introduced, particularly as regards the budgetary
management, in order to overcome existing obstacles to implementation.

(16)     Financing rules should be
set. As a general rule, so that interesting proposing organisations assume
their responsibilities, the Union should cover only part of the cost of
programmes. Certain administrative and staff costs which are not linked to
implementation of the CAP form an integral part of information provision and
promotion measures and could be eligible for Union funding.

(17)     Each measure should be
subject to monitoring and evaluation in order to improve its quality and
demonstrate its achievements. In this context a list of indicators should be
determined and the impact of the promotion policy assessed in relation to its
strategic objectives. The Commission should establish a monitoring and
evaluation framework for this policy which is consistent with the common
monitoring and evaluation framework of the CAP.

(18)     In order to ensure the
coherence, effectiveness and sound management of the measures provided for in
this Regulation as well as the efficient use of Union funding, the Commission
should be delegated the power to adopt acts in accordance with Article 290
of the Treaty as regards the specific conditions of brand visibility and the
indication of product origin, the criteria for determining the eligibility of
proposing organisations, the conditions governing competitive tendering between
implementing organisations and the conditions according to which the proposing
organisation may be authorised to implement certain parts of the programme
itself and, finally, the specific conditions determining the eligibility of the
costs of information provision and promotion measures for simple programmes. It
is of particular importance that the Commission carry out appropriate consultations
during its preparatory work, including using external experts.
When preparing and drawing-up delegated acts, the Commission will ensure a
simultaneous, timely and appropriate transmission of relevant documents to the
European Parliament and to the Council.

(19)     In order to facilitate a
smooth transition from the system established by Regulation (EC)
No 3/2008 to the system established by this Regulation, the power to adopt
acts in accordance with Article 290 of the Treaty should be delegated to the
Commission in respect of establishing transitional provisions between
Regulation (EC) No 3/2008 and this Regulation.

(20)     In order to ensure that
uniform implementing conditions apply under this Regulation, the Commission
should be granted implementing powers for the purposes of adopting implementing
acts concerning work programmes laying down strategic priorities, the selection
of simple programmes. the implementing, monitoring and control arrangements of
simple programmes, the rules concerning the conclusion of contracts for the
implementation of simple programmes selected in accordance with this
Regulation, and the common impact assessment framework for programmes. These
powers should be exercised in accordance with Regulation (EU)
No 182/2011 of the European Parliament and of the Council[17].

(21)     In order to achieve greater
consistency between the different promotion measures under the first pillar of
the CAP, it must be ensured that existing information provision and promotion
measures coming under Regulation (EU) No …/20… [COM(2011)626] of the
European Parliament and of the Council [18]
are compatible with the strategic priorities to be defined at horizontal level
on the basis of this Regulation.

(22)     Given the links that exist
between the promotion policy and the other instruments of the CAP, the
objectives of this Regulation may be more effectively achieved at Union level
owing to the multiannual guarantee of Union funding and its concentration on
clearly defined priorities. This Regulation is therefore consistent with the
principle of subsidiarity as set out in Article 5(3) of the Treaty on European
Union. Since the scope of this Regulation is limited to what is necessary in
order to achieve its objectives, it also respects the principle of proportionality
set out in Article 5(4) of that Treaty.

HAVE ADOPTED THIS REGULATION:

Chapter I

GENERAL
PROVISIONS

Article 1

Purpose

Information provision and promotion
measures for agricultural products and certain food products based on
agricultural products (hereinafter referred to as ‘information provision and
promotion measures’) implemented on the internal market or in third countries
may be fully or partially financed from the Union budget under the conditions
set out in this Regulation.

Article 2

Measures on the internal market

The eligible measures on the internal
market are as follows:

a)           information measures aimed at
stressing the specific features of agricultural productions methods in the Union, particularly in terms of food safety, authenticity, nutritional and health aspects,
animal welfare or respect for the environment;

b)           information measures on the
themes referred to in Article 5(4);

Article 3

Measures in third countries

The eligible measures in third-countries
are as follows:

a)           information measures aimed at
stressing the characteristics of agricultural and food products and on the
themes referred to in Article 5(4);

b)           promotion measures aimed at
increasing sales of agricultural and food products from the EU.

Article 4

Characteristics of the measures

1.           Information provision and
promotion measures shall not be brand-oriented. Nevertheless, product brands
may be visible during demonstrations or tastings and on information and
promotional material, subject to compliance with specific conditions to be
adopted pursuant to Article 6(a).

2.           Information measures shall
not encourage the consumption of any product on grounds of its origin.
Nevertheless, the origin of products may be visible on information and
promotional material subject to compliance with specific conditions to be
adopted pursuant to Article 6(b).

3.           Information provision and
promotion measures shall be implemented in the context of:

a)      information and promotion programmes
(hereinafter referred to as ‘programmes’) aimed, on the basis of a set of coherent
operations, at improving information on the themes or products in question and
the sale of those products;

b)      Commission initiatives.

Article 5

Eligible products and themes

1.           The following products may
the subject of the information provision and promotion measures referred to in
Article 3 and illustrate the production methods and themes referred to in
Article 2 and in Article 3(a).

a)      the agricultural products listed in
Annex I to the Treaty on the Functioning of the European Union (hereinafter
referred to as ‘the Treaty’), excluding the fishery and aquaculture products
listed in Annex 1 to Regulation (EU) No [COM(2011)416] of the European
Parliament and of the Council[19]
and tobacco;

b)      the food products based on
agricultural products listed in point I of Annex I to Regulation (EU) No
1151/2012 of the European Parliament and of the Council;

c)      spirit drinks with a protected
geographical indication pursuant to Regulation (EC) No 110/2008 of the European
Parliament and of the Council[20].

2.           Wine may be the subject of
information provision and promotion measures provided that other products as
referred to in paragraph 1(a) or (b) are also covered by the programme in
question.

3.           With regard to spirit
drinks as referred to in paragraph 1(c) and wine as referred to in paragraph 2,
measures targeting the internal market shall be limited to informing consumers
of the European quality schemes relating to geographical indications.

4.           The themes referred to in
Article 2(b) and Article 3 shall be as follows:

a)      the quality schemes established by
Regulation (EU) No 1151/2012, Regulation (EC) No 110/2008 and Article 70 of
Regulation (EU) XXX/20.. of the European Parliament and of the Council [of ...
establishing a common organisation of the markets in agricultural products
(Single CMO Regulation) (COM(2011)626)];

b)      the organic production method as
defined by Council Regulation (EC) No 834/2007[21];

c)      the logo for quality agricultural
products specific to the outermost regions of the Union, as defined by Article
21 of Regulation (EU) No 228/2013 of the European Parliament and of the Council[22].

Article 6

Delegated powers

The Commission shall be empowered to adopt
delegated acts in accordance with Article 23 concerning:

a)           the specific conditions for the
visibility of commercial brands during product demonstrations or tastings and
on information and promotional material, as referred to in Article 4(1);

b)           the conditions for indicating the
origin of products, as referred to in Article 4(2).

Chapter II

Implementation
of INFORMATION PROVISION AND PROMOTION MEASURES

Section 1

Common provisions

Article 7

Proposing
organisations

A programme may be proposed by:

a)           national trade or inter-trade organisations;

b)           trade or inter-trade organisations
of the Union;

c)           producer organisations or
associations of producer organisations, as defined by Articles 106 and 107 of
Regulation (EU) XXX/20.. of the European Parliament and of the Council [of ...
establishing a common organisation of the markets in agricultural products (Single
CMO Regulation) (COM(2011)626)].

Article 8

Work programme

1.           Information provision and
promotion measures shall contribute to strengthening the competitiveness of
European agriculture both on the internal market and in third countries. The
objectives to be attained shall be set out in the work programme referred to in
paragraph 2.

2.           The Commission shall, by
means of an implementing act, adopt a work programme setting out the objectives
pursued, the priorities, the expected results, the implementing arrangements
and the total amount of the financing plan.  It shall also contain the main
evaluation criteria, a description of the measures to be financed, an
indication of the amounts allocated to each type of measure and an indicative
implementation timetable and, in the case of grants, the maximum rate of
co-financing.

The implementing act referred to in the first
subparagraph shall be adopted in accordance with the advisory procedure
referred to in Article 24(3).

3.           The work programme
referred to in paragraph 1 shall be implemented through the publication by the
Commission:

a)      for simple programmes, of a call for
proposals indicating, notably the conditions for participation and the main
assessment criteria;

b)      for multi programmes, of a call for
proposals in accordance with Title VI of Part I of Regulation (EU, Euratom) No
966/2012[23].

Article 9

Programmes

For the purposes of this Regulation the
following definitions shall apply:

a)           ‘simple programme’ shall mean a
programme which may be submitted by one or more proposing organisations, as
referred to in Article 7(a) or (c), from one and the same Member State;

b)           ‘multi programme’ shall mean a
programme which may be submitted either by several proposing organisations, as
referred to in Article 7(a) or (c), from several Member States, or by one or
more European organisations, as referred to in Article 7(b).

Article 10

Measures on the initiative of the Commission

1.           The Commission may carry
out information and promotion measures as described in Articles 2 and 3.
These measures may in particular take the form of participation in trade fairs and exhibitions of international
importance by means of stands or operations aimed at enhancing the image of
Union products.

2.           The Commission shall
develop technical support services, in particular with a view to encouraging
awareness of different markets, maintaining a dynamic professional network
around information and promotion policy and improving knowledge of legislative
provisions concerning programme development and implementation.

Article 11

No double funding

Information provision and promotion
measures receiving other European funding, including under Regulation (EU)
XXXX/20.. of the European Parliament and of the Council [of … on support for
rural development by the European Agricultural Fund for Rural Development
(EAFRD) (COM(2011)627)[24]]
or under Regulation (EU) XXX/20… [of the European Parliament and of the Council
of ... establishing a common organisation of the markets in agricultural
products (Single CMO Regulation) (COM(2011)626)], may not receive Union funding under this Regulation.

Section 2

Implementation and management of simple programmes

Article 12

Selection of simple programmes

1.           The Commission shall
assess and select proposals for simple programmes further to the call for
proposals referred to in Article 8(3)(a).

2.           The Commission shall, by
means of implementing acts, decide on the simple programmes selected, on any
changes to be made to them, and on the corresponding budgets. Those acts shall
be adopted in accordance with the examination procedure referred to in Article
24(2).

Article 13

Bodies
responsible for implementing simple programmes

After competitive tendering has been duly
carried out, the proposing organisation shall choose the bodies that will
implement simple programmes that have been selected, with a view, in
particular, to ensuring that measures are implemented effectively.

Article 14

Implementation, monitoring and control of simple programmes

1.           The Member States
concerned shall be responsible for the proper implementation of the simple
programmes selected in accordance with Article 12 and for the relevant
payments. The Member States shall ensure that information and promotional
material produced in the context of these programmes complies with Union rules.

2.           The Member States shall implement,
monitor and control simple programmes in accordance with Regulation (EU) No
XXXX/20.. of the European Parliament and of the Council [of ... on the
financing, management and monitoring of the common agricultural policy
(COM(2011) 628)] and in line with the implementing rules to be adopted under
Article 22, in (a) of the first paragraph.

Article 15

Financial provisions relating to simple programmes

1.           The Union's financial
contribution to simple programmes shall not exceed 50 % of the eligible
expenditure. The remaining expenditure shall be borne exclusively by proposing
organisations.

2.           The percentage referred to
in paragraph 1 shall be increased to 60 % for:

a)      a simple programme targeting one or more
third country(-ies);

b)      information and promotion measures on
fruit and vegetables specifically targeting children in Union educational
establishments,

3.           Studies to evaluate the
results of promotional and information measures in accordance with Article 26
shall be eligible for Union financing under conditions similar to those
governing the simple programme.

4.           The Union shall fully
finance expert fees linked to the selection of programmes in accordance with
Article 4(2)(a) of Regulation (EU) No XXXX/20.. of the European Parliament and
of the Council [of ... on the financing, management and monitoring of the
common agricultural policy (COM(2011)628)].

5.           In order to ensure the
proper implementation of simple programmes, proposing organisations shall provide
guarantees.

6.           The Union shall finance
information provision and promotion measures implemented on the basis of simple
programmes in accordance with Article 4(1)(c) of Regulation (EU)
No XXXX/20.. of the European Parliament and of the Council [of ... on the
financing, management and monitoring of the common agricultural policy
(COM(2011)628)].

Section 3

Implementation and management of multi programmes and
measures implemented on the initiative of the Commission

Article 16

Types of financing

1.           Financing may take one of
more of the forms provided for by Regulation (EU, Euratom) No 966/2012,
including:

a)      grants for multi-programmes;

b)      contracts for the measures implemented
on the initiative of the Commission.

2.           The Union shall finance
information provision and promotion measures implemented on the basis of multi
programmes or on the initiative of the Commission in accordance with
Article 4(2)(a) of Regulation (EU) No XXXX/20.. of the European
Parliament and of the Council [of ... on the financing, management and
monitoring of the common agricultural policy (COM(2011)628)].

Article 17

Evaluation of multi programmes

The proposals for multi programmes shall be
assessed and selected on the basis of the criteria announced in the call for
proposals referred to in Article 8(3)(b).

Article 18

Financial provisions relating to multi programmes

The maximum rate of co-financing shall be
set at 60 % of the total eligible costs for the multi programmes. The
remaining expenditure shall be borne exclusively by proposing organisations.

Article 19

Procurement with regard to measures
implemented on the initiative of the commission

Any procurement effected by the Commission
in its own name or jointly with Member States shall be subject to the
procurement rules set out in Regulation (EU) No 966/2012 and Delegated
Regulation (EU) No 1268/2012.

Article 20

Protection of the financial interests of the Union

1.           The Commission shall take
appropriate measures ensuring that, when measures financed under this Section
are implemented, the financial interests of the Union are protected by the
application of preventive measures against fraud, corruption and any other
illegal activities, by effective checks and, if irregularities are detected, by
the recovery of the amounts wrongly paid and, where appropriate, by effective,
proportionate and dissuasive administrative and financial penalties.

2.           The Commission or its
representatives and the Court of Auditors shall have the power of audit, on the
basis of documents and on-the-spot, over all grant beneficiaries, contractors
and subcontractors who have received Union funds.

3.           The European Anti-Fraud
Office (OLAF) may carry out investigations, including on-the-spot checks and
inspections, in accordance with the provisions and procedures laid down in
Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the
Council[25]. and Council Regulation (Euratom, EC) No
2185/96[26]
with a view to establishing whether there has been fraud, corruption or any
other illegal activity affecting the financial interests of the Union in
connection with a grant agreement or grant decision or a contract relating to
Union funds.

4.           Without prejudice to
paragraphs 1, 2 and 3, cooperation agreements with third countries and with
international organisations, contracts, grant agreements and grant decisions
resulting from the implementation of this Programme shall contain provisions
expressly empowering the Commission, the Court of Auditors and OLAF to conduct
such audits and investigations, according to their respective competences.

Section 4

Delegated powers and implementing powers

Article 21

Delegated powers

The Commission shall be empowered to adopt
delegated acts in accordance with Article 23 concerning:

(a)
the specific conditions under which each of the
proposing organisations referred to in Article 7 may submit a programme, in
particular with a view to guaranteeing that organisations are representative
and the programme is of significant scale;

(b)
the conditions under which the proposing
organisation may be authorised to implement certain parts of the programme
itself by way of derogation from Article 13;

(c)
the conditions governing competitive tendering
on the part of the implementing bodies referred to in Article 13;

(d)
the specific conditions of eligibility with
regard to simple programmes, the costs of information provision and promotion
measures and, where necessary, administrative and staff costs.

Article 22

Implementing powers

The Commission shall, by means of
implementing acts, adopt:

a)           the arrangements for implementation,
monitoring and control referred to in Article 14(2);

b)           the rules relating to the
conclusion of contracts for the implementation of the simple programmes
selected under this Regulation.

Such implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 24(2).

Chapter III

DELEGATIONS OF POWERS, IMPLEMENTING
PROVISIONS, TRANSITIONAL AND FINAL PROVISIONS

Section 1

Delegations of powers and implementing provisions

Article 23

Exercise of the delegation

1.           The power to adopt
delegated acts shall be conferred on the Commission subject to the conditions
laid down in this Article.

2.           The power to adopt
delegated acts referred to in this Regulation shall be conferred on the
Commission for an indeterminate period of time from the date of entry into
force of this Regulation.

3.           The delegation of power
referred to in this Regulation may be revoked at any time by the European
Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of the
European Union or at a later date specified therein. It shall not affect
the validity of any delegated acts already in force.

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

5.           A delegated act adopted
pursuant to this Regulation shall enter into force only if no objection has
been expressed either by the Parliament or the Council within a period of two
months of notification of that act to the European Parliament and the
Council, or if, before the expiry of that period, the European Parliament and
the Council have both informed the Commission that they will not object.
That period may be extended by two months at the initiative of the European
Parliament or the Council.

Article 24

Committee

1.           The Commission shall be
assisted by the Committee for the Common Organisation of the Agricultural Markets
set up by Article 162 of Regulation (EU) XXXX/20.. [of the European
Parliament and of the Council of …. establishing a
common organisation of the markets in agricultural products (Single CMO
Regulation)].
That Committee shall be a committee within the meaning of Regulation (EU)
No 182/2011.

2.           Where reference is made to
this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3.           Where reference is made to
this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Section 2

Consultation, assessment and reporting

Article 25
Consultation

In the context of implementing this
Regulation, the Commission may consult the Advisory Group on Promotion of
Agricultural Products established by Commission Decision 2004/391/EC[27].

Article 26

Evaluation of the impact of measures

In accordance with the common monitoring
and evaluation framework for the common agricultural policy provided for in
Article 110 of Regulation (EU) No .../20.. [COM(2011)628], the
Commission, acting pursuant to Article 24(2), shall determine the common
framework for assessing the impact of information and promotion programmes
financed under this Regulation as well as a system of indicators.

All interested parties shall provide the
Commission with all the data and information necessary to enable the impact of
measures to be assessed.

Article 27
Report

By not later than 31
December [2020], the Commission shall submit to the European Parliament and the
Council a report on the application of this Regulation together with any appropriate
proposals.

Section 3

Amending, transitional and final provisions

Article 28
Amendment of Regulation
(EU) No …/20… [COM(2011)626]

Regulation (EU) No …/20… [COM(2011)626] is
hereby amended as follows:

a)           The following subparagraph shall
be added to Article 34(2):

‘The national strategy shall be compatible with
the strategic priorities defined in the work programme referred to in Article 6
of Regulation (EU) No XXX of the European Parliament and of the Council\*.

\* Regulation (EU) No XXX of the European
Parliament and of the Council of ... on information provision and promotion
measures for agricultural products on the internal market and in third
countries (OJ L…..)’.

b)           In Article 43, the following
paragraph shall be added:

'5.      The measures referred to in paragraph
1 shall be compatible with the strategic priorities defined in the work
programme referred to in Article 6 of Regulation (EU) No XXX.’

Article 29

State aid

By way of
derogation from Article 146 of Regulation (EU) XXXX/20.. [of the European
Parliament and of the Council\* of ... establishing a common organisation of the
markets in agricultural products (Single CMO Regulation) (COM(2011)626)] and
from Article 3 of Council Regulation (EC) No 1184/2006[28], and by virtue of Article 42, first subparagraph, of the Treaty,
Articles 107, 108 and 109 of the Treaty shall not apply to payments made
by Member States pursuant to this Regulation and in compliance with its
provisions, nor to financial contributions coming from Member States' parafiscal
charges or mandatory contributions in the case of programmes eligible for Union
support pursuant to Article 42, second subparagraph, of the Treaty which
the Commission has selected in accordance with this Regulation.

Article 30
Repeal

Regulation (EC) No 3/2008 is
hereby repealed.

References to the repealed Regulation shall
be construed as being references to this Regulation and shall be read in
accordance with the correlation tables set out in the Annex to this Regulation.

Article 31

Transitional
provisions

The Commission shall be empowered to adopt
delegated acts in accordance with Article 23 in order to ensure a smooth
transition between the application of the provisions of Regulation (EC) No
3/2008 and those of this Regulation.

Article 32

Entry into
force and date of application

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

[It shall apply from ….]

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

ANNEX

CORRELATION TABLE as referred to
in Article 30

Regulation (EC) No 3/2008 || This Regulation

Article 1(1), first subparagraph Article 1(1), second subparagraph Article 1(2) Article 2 Articles 3 and 4 Article 5 Article 6(1) Article 6(2) Article 7 Article 8 Article 9 Article 10 Article 11 Article 12(1) Article 12(2) Article 13(1) Article 13(2), first subparagraph Article 13(2), second subparagraph Article 13(2), third subparagraph Article 13(3), (4) and (5) Article 13(6) Article 14 Articles 15 and 16 Article 17 Article 18 Article 19 Article 20 || Article 1 Article 4(3)(a) Article 4(1) and (2) Articles 2 and 3 Article 5 Article 8(2) Article 7 --- --- Articles 12 and 17 --- Article 10 Article 13 --- Article 14 Article 16(1)(b) Article 15(1) Article 15(2) --- --- Article 29 Article 15(6) and Article 16(2) Articles 23 and 24 Article 25 Article 27 Article 30 Article 32

Regulation (EC) No 3/2008 as aligned with the provisions of the Treaty of Lisbon further to the proposal for a Regulation (EU) No XXXX/20.. [COM(2011)663] || This Regulation

Article 1(1), first subparagraph Article 1(1), second and third subparagraphs Article 1(2) Article 1(3) Article 1(4) Article 2 Articles 3 and 4 Article 5 Article 6(1) Article 6(2) Article 7 Article 8 Article 9 Article 10 Article 11 Article 12(1) Article 12(2) and (3) Article 13(1) Article 13(2), first subparagraph Article 13(2), second subparagraph Article 13(2), third subparagraph Article 13(3), (4) and (5) Article 13(6) Article 13(7) Article 13(8) Article 13(9) Article 14 Article 15 a Article 16 a Article 16 b Article 17 Article 18 Article 19 Article 20 || Article 1 Article 4(3) and Article 8(2) Article 4(1) and (2) Article 8(2) --- Articles 2 and 3 Article 5 Article 8(2) Article 7 --- --- Articles 12, 17 and 18 --- Article 10 Articles 13, 19 and 21(b) --- Article 14 Article 16(1)(b) Article 15(1) Article 15(2) --- --- Article 29 Article 11 Article 15(5) Article 22 Article 15(6) and Article 16(2) --- Article 23 Article 24 Article 25 Article 27 Article 30 Article 32

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the proposal

Proposal for a Regulation of the European Parliament and of the
Council on information provision and promotion measures for agricultural
products on the internal market and in third countries

1.2.        Policy area(s) concerned
in the ABM/ABB structure[29]

Policy Area Title 05 of Heading 2

1.3.        Nature of the proposal

X  The proposal relates to a new action

¨ The proposal relates to a new action following a
pilot project/preparatory action[30]

X The proposal
relates to the extension of an existing action

¨ The proposal relates to an action redirected
towards a new action

The proposal relates to the extension of an
existing action but with the introduction of new aspects.

1.4.        Objective(s)

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal

The proposal aims to promote the efficient use of resources with a
view to ensuring smart, sustainable growth for EU agriculture in accordance
with the Europe 2020 strategy.

As a CAP tool, the European policy for the promotion of agricultural
products pursues the objectives of CAP reform up to 2020, and more particularly
the objective of strengthening the competitiveness of the agricultural sector
both on the internal market and in third countries.

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Target

To improve the competitiveness of the agricultural sector and
enhance its value share in the food chain

ABM/ABB activity(ies) concerned:

05 02 ‘Interventions in agricultural markets’

1.4.3.     Expected result(s) and
impact

Further to this proposal, the promotion policy will be given an overall
strategy allowing it to respond in a targeted and effective way to economic
opportunities in third countries relating, for example, to free-trade
agreements and to the need for information on the merits of European
agricultural products.

The promotion strategy will define messages to be imparted,
highlighting the specific elements of the CAP, including its sustainable
production methods and quality schemes.

In terms of jobs, the impact will be linked to the expected economic
repercussions, but this proposal should contribute to maintaining jobs in the
agricultural and food sectors, especially in SMEs (by dint of the priority
which the strategy gives to them), which account for 99 % of agri-food
businesses and 63 % of jobs in this sector.

An increase in the number of programmes involving organisations from
different EU countries (‘multi-country programmes’) with high European added
value is expected as a result of the simplification of selection and management
to be achieved at Commission level, without Member States being involved at an
intermediate stage.

1.4.4.     Indicators of results and
impact

Indicators have been established at three levels according to the
objectives:

Impact indicators:

-        European agricultural balance of trade;

-        Farm incomes.

Result indicators:

-        European agricultural exports;

-        Value of output of products subject to European quality
designations and the scale of organic farming (indicators which indirectly
measure the strategy's success – priority themes, etc.);

- Consumers' perception of the image of products (surveys,
Eurobarometer reports, etc.).

Achievement indicators:

- Number of programmes (internal market/third countries)

- New beneficiaries (new proposing organisations as a proportion of
the total number of proposing organisations);

- Number of multi-country programmes.

1.5.        Grounds for the proposal

1.5.1.     Requirement(s) to be met in
the short or long term

The main problem is the increased pressure on the competitiveness of
the agricultural sector resulting from three different factors:

-        Strong competition from third countries vis-à-vis
European agricultural products;

-        An increase in requirements to be met by farmers and in
costs for the agricultural economy in the EU. For example, in the period
2000-12, world agricultural prices increased by 82 % while energy prices
went up by 261 % and fertiliser prices by 286 %, with the sector
facing the highest level of volatility in any of the last three decades;

-        A low level of awareness of the merits of EU
agricultural products, especially on the internal market. For example, the
majority of Europeans consider that the EU's main priority in terms of
agricultural and rural development policy is to ensure that agricultural
products are good-quality, healthy and safe. At the same time, only 14 %
of Europeans recognise the PDO[31]/PGI[32] logos, which make up one of
the main European quality schemes established by the Union.

1.5.2.     Added value of EU
involvement

The common agricultural policy is a genuine European policy. Instead
of having 28 separate agricultural policies, the Member States pool their
resources in order to pursue a European policy with a common budget and common
rules, including on the matter of promotion. In particular, in an internal
market any action at EU level will have an important leverage effect in terms
of (a) making it easier to set up generic information programmes which, by
their very nature, are rarely implemented by the Member States or companies,
particularly in the current context of economic crisis, and (b) implementing
multi-country programmes which will give rise to an exchange of experiences
between Member States and to economies of scale.

1.5.3.     Lessons learned from
similar experiences in the past

Information provision and promotion measures have always formed part
of the CAP. Since 1999, the CAP has been specifically supporting information
provision and promotion measures within the European agricultural and
agri-foods sectors on the internal market and in third countries on the basis
of a horizontal scheme for providing information on and promoting agricultural
products.

There are several indications that a European promotion policy plays
a positive role, ultimately enabling European agricultural producers to be
rewarded for their efforts in complying with the high standards required by the
CAP:

-        In 2009, the European Court of Auditors audited the scheme,
focussing on the effectiveness of information provision and promotion measures
and on the regularity of expenditure. The Court is favourably disposed to the
scheme, even if it is difficult to quantify its impact[33];

-        The conclusions of the evaluation of the scheme also
allowed an assessment to be made of the current scheme[34];

-        Although coming under a different public policy, a
cost-benefit analysis of the market development programmes managed by the USDA
concluded that US agricultural exports are increased by USD 35 for each
additional dollar spent via these promotion programmes, and that cutting the
public promotion budget by 50 % would result in agricultural exports
falling by an estimated USD 9 billion. Without being able to
guarantee the value of these figures, it is interesting to note their clearly
positive nature in confirming the positive value of public policies of
supporting information provision and promotion measures for agricultural
products[35].

1.5.4.     Compatibility and possible
synergy with other appropriate instruments

While taking account of the specific characteristics of different
sectors, the proposal sets out to enhance the synergies between this horizontal
promotion scheme and the various sectoral arrangements existing under the CAP
by means of the promotion strategy and the development of a common identity,
including as regards visual elements and content, for all promotions measures.

1.6.        Duration and financial
impact

¨ Proposal with a limited duration

–
¨  Proposal in force from ... to ...

–
¨  Financial impact from ... to ...

X  Proposal of unlimited
duration

–
Implementation with a start-up period in: (See
3.2.1 below)

–
followed by full-scale operation.

1.7.        Management mode(s) planned[36]

X Direct management by the
Commission

–
¨ By its departments, including by its staff in the Union
delegations;

–
X  by the executive agencies

X  Shared management with the
Member States

¨ Indirect management by entrusting budget implementation tasks to:

–
¨ third countries or the bodies they have designated;

–
¨ international organisations and their agencies (please specify);

–
¨ 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.

– If more than one management mode is
indicated, please provide details in the "Comments" section.

Comments

The scheme
is at present managed on the basis of shared management (main expenditure
linked to the implementation of programmes) and centralised direct management
(information provision and promotion measures at the Commission's initiative).

The
management modes involved in the proposal are those of shared management and
direct management.

In
compliance with Article 3(4) of Regulation (EC) No 58/2003, the Commission
intends to outsource certain tasks relating to the direct management of
information provision and promotion measures, in particular for multi-country
programmes, to an existing executive agency with the aim of providing a more
efficient service and enhancing the EU's visibility in its information
provision and promotion measures for agricultural products.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

The rules require that programmes be
assessed. At present these assessments take place each year and are
supplemented by an overall assessment at the end of the programme. A common
framework for assessing the impact of measures will be established in line with
the common monitoring and evaluation framework of the CAP.

The assessment of information
provision and promotion measures will be supplemented with regular external
assessments of the scheme.

The Commission intends to submit a
report on the application of the scheme to Parliament and the Council by 31
December [2020] at the latest.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

The horizontal information provision and promotion scheme for
agricultural products has existed since 2000. It is regularly checked, and
adjustments are made to monitoring and checking procedures whenever this is
deemed necessary. According to the compliance audits carried out by DG AGRI and
the audits of the European Court of Auditors, the main risks which have been
identified for information provision and promotion measures are linked to the
intangible nature of some expenditure and the implementation of measures
outside the EU's borders.

2.2.2.     Information concerning the
internal control system set up

In order to limit the risks, selection, implementation, monitoring,
checking and assessment procedures will be defined.

In particular, the Commission will establish procedures for
selecting the best programmes and will convert them into legal instruments. It
will also establish specific conditions of eligibility with regard to the costs
of measures and, depending on the nature of expenditure, will be able to apply
lump sums, scales of costs, etc. It will also take account of the
implementation of programmes by specialised implementing bodies, some of which
will be outside the European Union. Checking procedures will be established
regarding expenditure for each budget management mode.

In the case of shared management, the control framework will
be based on the common checking procedures for the CAP, as reviewed as part of
the reform (COM(2011)628), in particular as regards the statement of assurance
to be provided each year by the head of each paying agency.

In the case of direct management, the grant control framework
will be based on the rules set out in the Financial Regulation (EU, Euratom) No
966/2012, in particular as regards the implementation of the Commission's
internal control standards, ex ante controls on all statements, the
certification of cost methodologies and ex post audits of a sample of
statements.

In the context of outsourcing the management of the promotion
programme, the Commission will also carry out the checks required on executive
agencies under Article 65 of the Financial Regulation. It will monitor and
check that the executive agency achieves appropriate control objectives for the
actions that it will be entrusted to manage. Such monitoring will be provided
for in the cooperation arrangements between the parent Directorate-General and
the agency.

The Commission's checks will use a risk-based approach in order to
ensure that its audits target the areas of highest risk.

2.2.3.     Estimate of the costs and
benefits of the controls and assessment of the expected level of risk of error

Information provision and promotion measures will always be covered
by the existing management and control system for EAGF expenditure

As regards the cost of controls by the Member States, an analysis
was provided in Annex 8 of the impact analysis accompanying the legislative
proposals concerning CAP reform (COM(2011)626).

As for the costs to the Commission, they will be higher than at
present owing to an increase in expenditure (including a doubling of current
expenditure under shared management) and, in particular, expenditure linked to
programmes under direct management.

The direct management of multi programmes will be a new feature of
this scheme. Only an estimate based on the costs of checking programmes of the
same type would be possible. For example, one might cite programmes for the
competitiveness of enterprises and SMEs (COM(2011)834).

It is not thought that the proposal will lead to an increase in the
EAGF error rate.

2.3.        Measures to prevent fraud
and irregularities

The legislative package for CAP reform, in particular the proposal
for a Regulation on the financing, management and monitoring of the common
agricultural policy, envisages maintaining and reinforcing the current detailed
systems for controls and penalties to be applied by the paying agencies, with
common basic features and special rules tailored to the specific
characteristics of each aid scheme. The Regulation on the financing, management
and monitoring of the CAP will also apply to the future Regulation on the
promotion policy.

The checking systems generally provide for exhaustive administrative
controls of 100 % of aid applications, cross-checks with other databases
where this is considered appropriate as well as pre-payment on-the-spot checks
of a minimum number of transactions, depending on the risk associated with the
regime in question. If these on-the-spot checks reveal a high number of
irregularities, additional checks must be carried out.

The legislative package for CAP reform further envisages that Member
States shall prevent, detect and correct irregularities and fraud, impose
effective, dissuasive and proportionate penalties as laid down in Union
legislation or national law, and recover any irregular payments plus interest.
It includes an automatic clearance mechanism for irregularity cases, which
provides that if recovery has not taken place within four years of the date of the
recovery request, or within eight years in the case of legal proceedings, the
amounts not recovered shall be borne by the Member State concerned. This
mechanism will be a strong incentive for Member States to recover irregular
payments as quickly as possible. Moreover, as regards outsourced tasks relating
to the management of the future promotion policy, the executive agency will be
required to notify potential cases of fraud and irregularities to the
Commission on a case-by-case basis and in the regular reports it publishes.

A rigorous checking procedure is all the more important given that
the implementation of promotion measures is to be entrusted to implementing
bodies with which only beneficiaries have a contractual link. Since the
implementing bodies are commercial entities that are entitled to make a profit,
intensive action will have to be taken to ensure that measures are implemented
regularly.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

Following the order of multiannual financial framework headings and budget lines.

Heading of the multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Designation ………………………...……………] || Diff./Non-Diff. ([37]) || from EFTA countries[38] || from candidate countries[39] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

2 || 05 02 10 01 – Promotion measures — Payments by Member States 05 02 10 02 – Promotion measures — Direct payments by the Union || Non-diff. Diff. || None None || None None || None None || None None

· New budget lines requested

Following the
order of
multiannual financial framework headings and budget lines.

Heading of the multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Designation………………………………………] || Diff./Non-Diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

2 || 05 01 04 xx – Executive Agency || Non-diff. || None || None || None || None

Notes:

The Commission plans to delegate some
implementing tasks to an executive agency. If it does so, budget lines will
have to be created within title 05.

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million

Heading of the multiannual financial framework: || 2 || Sustainable growth: natural resources Of which market related expenditure and direct payments

DG: AGRI (\*) || || || 2014[40] || 2015[41] || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Ÿ Operating appropriations || || || || || || || ||

05 02 10 01 || Commitments || (1) || 0.0 || 0.0 || 4.0 || 5.0 || 9.0 || 36.0 || 36.0 || 90.0

Payments || (2) || 0.0 || 0.0 || 4.0 || 5.0 || 9.0 || 36.0 || 36.0 || 90.0

05 02 10 02 || Commitments || (1a) || 0.5 || 0.5 || 15.0 || 54.0 || 90.0 || 103.0 || 103.0 || 366.0

Payments || (2 a) || 0.2 || 0.2 || 0.5 || 12.7 || 31.1 || 58.6 || 84.2 || 187.5

Appropriations of an administrative nature financed from the envelope of specific programmes[42] || || || || || || || ||

05 01 04 xx || || (3) || pm || pm || pm || pm || pm || pm || pm || pm

TOTAL appropriations for DG AGRI || Commitments || =1+1a +3 || 0.5 || 0.5 || 19.0 || 59.0 || 99.0 || 139.0 || 139.0 || 456.0

Payments || =2+2a +3 || 0.2 || 0.2 || 4.5 || 17.7 || 40.1 || 94.6 || 120.2 || 277.5

Ÿ TOTAL operational appropriations || Commitments || (4) || 0.5 || 0.5 || 19.0 || 59.0 || 99.0 || 139.0 || 139.0 || 456.0

Payments || (5) || 0.2 || 0.2 || 4.5 || 17.7 || 40.1 || 94.6 || 120.2 || 277.5

ŸTOTAL appropriations of an administrative nature financed from the envelope of specific programmes || (6) || pm || pm || pm || pm || pm || pm || pm || pm

TOTAL appropriations for HEADING 2 of the multiannual financial framework || Commitments || =4+ 6 || 0.5 || 0.5 || 19.0 || 59.0 || 99.0 || 139.0 || 139.0 || 456.0

Payments || =5+ 6 || 0.2 || 0.2 || 4.5 || 17.7 || 40.1 || 94.6 || 120.2 || 277.5

(\*) Notes:

- The sums indicated are an estimate of the
additional financial impact on the 2013 budget. The breakdown of the amounts
between budget lines could be adjusted in light of the implementation of the
programmes.

- The
Commission plans to delegate some implementing tasks to an executive agency as
of 2016. The amounts and the breakdown of estimated costs may have to be
adjusted in line with the degree of delegation finally retained.

For information: estimate of total expenditure || || || || || || || || || || || ||

|| || || || || || || || || || || || EUR million

Budget year || || || || || || Budget      2013 || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total                                 2014-2020

|| || || || || || || || || || || || || || ||

05 02 10 01 - Promotion measures — Payments by Member States || || 60.0 || 60.0 || 60.0 || 64.0 || 65.0 || 69.0 || 96.0 || 96.0 || 510.0

05 02 10 02 Promotion measures / Direct payments by the Union || Commitments || 1.0 || 1.5 || 1.5 || 16.0 || 55.0 || 91.0 || 104.0 || 104.0 || 373.0

|| || || || || || Payments || 1.1 || 1.4 || 1.4 || 1.6 || 13.9 || 32.2 || 59.8 || 85.4 || 195.5

|| || || || || || || || || || || || || || ||

05 01 04 xx – Executive Agency || || || || || || pm || pm || pm || pm || pm || pm || pm || pm

|| || || || || || || || || || || || || || ||

TOTAL || || || || || || Commitments || 61.0 || 61.5 || 61.5 || 80.0 || 120.0 || 160.0 || 200.0 || 200.0 || 883.0

|| || || || || || Payments || 61.1 || 61.4 || 61.4 || 65.6 || 78.9 || 101.2 || 155.8 || 181.4 || 705.5

Heading of the multiannual financial framework: || 5 || ‘Administrative expenditure’ (as compared to the 2013 budget)

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

DG: AGRI ||

ŸHuman resources || 0.019 || 0.099 || -0.499 || -0.147 || 0.188 || 0.675 || 0.922 || 1.257

ŸOther administrative expenditure || 0.000 || 0.000 || 0.002 || 0.006 || 0.003 || -0.001 || -0.001 || 0.009

TOTAL DG AGRI || Appropriations || 0.019 || 0.099 || -0.497 || -0.141 || 0.191 || 0.674 || 0.921 || 1.266

TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.019 || 0.099 || -0.497 || -0.141 || 0.191 || 0.674 || 0.921 || 1.266

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

TOTAL appropriations for HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.519 || 0.559 || 18.501 || 58.583 || 99.188 || 139.675 || 139.922 || 457.266

Payments || 0.219 || 0.299 || 4.003 || 17.559 || 40.291 || 95.274 || 121.122 || 278.766

3.2.2.     Estimated impact on
operational appropriations

–
¨  The proposal does not require the use of operational
appropriations

–
X  The proposal requires the use of operational
appropriations, as explained below:

Commitment appropriations (in million euros)

Indicate objectives and outputs || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

OUTPUTS

Type[43] || Average cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Total number || Total cost

SPECIFIC PURPOSE[44] || To improve the competitiveness of the agricultural sector and enhance its value share in the food chain

Achievement[45] || Number of programmes (internal market/third countries) || || || || || || || || || || || || || || || ||

Achievement45 || New beneficiaries (new proposing organisations as a proportion of the total number of proposing organisations); || || || || || || || || || || || || || || || ||

Achievement45 || Number of multi-country programmes. || || || || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || || || || || ||

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

–
¨  The proposal does not require the use of administrative
appropriations.

–
X  The proposal requires the use of
administrative appropriations, as explained below:

EUR million (to
3 decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || 2.508 || 2.588 || 1.990 || 2.342 || 2.677 || 3.164 || 3.411 || 18.680

Other administrative expenditure || 0.110 || 0.110 || 0.111 || 0.116 || 0.113 || 0.109 || 0.109 || 0.778

Sub-total HEADING 5 of the multiannual financial framework || 2.618 || 2.698 || 2.101 || 2.458 || 2.790 || 3.273 || 3.520 || 19.458

Outside HEADING 5[46] of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other administrative expenditure || || || || || || || ||

Sub-total outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL (\*) || 2.618 || 2.698 || 2.101 || 2.458 || 2.790 || 3.273 || 3.520 || 19.458

(\*) These
figures might be adjusted as a result of the envisaged delegation procedure.

3.2.3.2.  Estimated
requirements of human resources

–
¨  The proposal does not require the use of human resources.

–
X  The proposal requires the use of human
resources, as explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 ||

|| ŸEstablishment plan posts (officials and temporary staff) ||

|| XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 19 || 19.5 || 13.7 || 15.3 || 17.1 || 20.1 || 21.6 ||

|| XX 01 01 02 (Delegations) || || || || || || || ||

|| XX 01 05 01 (Indirect research) || || || || || || || ||

|| 10 01 05 01 (Direct research) || || || || || || || ||

ŸExternal personnel (in Full Time Equivalent: FTE)[47]

|| XX 01 02 01 (CA, SNE, INT from the ‘global envelope’) || 0 || 0.2 || 2.6 || 4.6 || 6.0 || 7.3 || 8.0 ||

|| XX 01 02 02 (CA, LA, SNE, INT and JED in the delegations) || || || || || || || ||

|| XX 01 04 yy [48] || - at Headquarters || || || || || || || ||

|| - Delegations || || || || || || || ||

|| XX 01 05 02 (CA, SNE, INT - Indirect research) || || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || || ||

|| Other budget lines (specify) || || || || || || || ||

|| TOTAL (\*) || 19 || 19.7 || 16.3 || 19.9 || 23.1 || 27.4 || 29.6 ||

XX is the policy area or budget title
concerned.

The human resources
required will be covered 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.

(\*) This proposal is
part of the programmes which are planned to be delegated to an executive
agency. These figures might therefore be adjusted as a result of the delegation
ultimately approved.

Description of
tasks to be carried out:

Officials and temporary staff || Implementation of the policy of promoting agricultural products

External staff ||

3.2.4.     Compatibility with the
multiannual financial framework

–
X  Proposal is compatible with the proposals for
the 2014-20 multiannual financial framework.

–
¨  The proposal will entail reprogramming of the relevant heading in
the multiannual financial framework.

–
¨  The proposal requires application of the flexibility instrument or
revision of the multiannual financial framework.

Notes:

The proposal relating to the 2014-20 Multiannual Financial Framework
(MFF)[49]
includes the amounts of direct payments and market-related expenditure for the
first pillar of the CAP. As a precaution, the Commission has taken account of
the conclusions of the European Council of 8 February 2013 concerning
the MFF. Subject to the adoption of the MMF Regulation, promotion measures will
be funded within the amounts of the EAGF sub-ceiling agreed by the European
Council on 8 February 2013.

3.2.5.     Third-party contributions

–
The proposal does not provide for co-financing
by third parties.

–
X The proposal provides for the co-financing
estimated below:

The Union's financial contribution to measures under the programme is indicated in Articles 15
and 18 of the draft regulation. At this stage, it is not possible to quantify
the total amount of the contribution from third parties given that contribution
rates vary according to the conditions defined in Articles 15 and 18.

3.3.        Estimated impact on
revenue

–
X  The proposal has no financial impact on
revenue.

–
¨  The proposal has the following financial impact:

–
¨            on own resources

–
¨            on miscellaneous revenue

[1]               Source: CIAA Annual Report, 2010

[2]               Association of Southeast Asian Nations.

[3]               Report ‘What Asia wants Long-term food consumption
trends in Asia’ Australian Bureau of Agricultural and Resource Economics and
Sciences, October 2013

[4]               Source: Centre for Economic Policy Research (2013):
Reducing Transatlantic Barriers to Trade and Investment – An Economic
Assessment (prepared for DG TRADE), London.

[5]               Source: Copenhagen Economics (2010): Assessment of
Barriers to Trade and Investment between the EU and Japan (final report to DG
TRADE).

[6]               Council Regulation (EC) No 2826/2000 of 19 December
2000 on information and promotion actions for agricultural products on the
internal market  (OJ L 328,
23.12.2000, p. 2) and Council Regulation (EC) No 2702/1999 of 14 December 1999
on measures to provide information on, and to promote, agricultural products in
third countries (OJ L 327, 21.12.1999, p. 7).

[7]               Council Regulation (EC) No 3/2008 of 17 December 2007
on information provision and promotion measures for agricultural products on
the internal market and in third countries (OJ L 3, 5.1.2008, p. 1).

[8]               Commission Regulation EC No 501/2008 of 5 June
2008 laying down detailed rules for applying Council Regulation (EC) No 3/2008
on information provision and promotion measures for agricultural products on
the internal market and in third countries (OJ L 147, 6.6.2008, p. 3).

[9]               Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council of 25 October 2012 on the financial
rules applicable to the general budget of the Union and repealing Council
Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

[10]             COM(2011)500 (paragraph 6.1.3).

[11]             Regulation (EC) No 58/2003 of 19 December 2002 laying
down the statute for executive agencies to be entrusted with certain tasks in
the management of Community programmes (OJ L 11, 16.1.2003, p. 1).

[12]             Regulation (EU) No …/….

[13]             OJ C , , p. .

[14]             OJ C , , p. .

[15]             Council Regulation (EC) No 3/2008 of 17 December 2007
on information provision and promotion measures for agricultural products on
the internal market and in third countries (OJ L 3, 5.1.2008, p. 1).

[16]             Regulation (EU) No 1151/2012 of the European Parliament
and of the Council of 21 November 2012 on quality schemes for agricultural
products and foodstuffs (OJ L 343, 14.12.2012, p. 1).

[17]             Regulation (EU) No 182/2011 of the European
Parliament and of the Council of 16 February 2011 laying down
the rules and general principles concerning mechanisms for control by Member
States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011,
p. 13).

[18]             Regulation (EU) No XXX/20.. of the European Parliament
and of the Council establishing a common organisation of the markets in
agricultural products (OJ ...).

[19]             Regulation (EC) No [COM(2011/416] of ... on the common
organisation of the markets in fishery and aquaculture products (OJ ...).

[20]             Regulation (EC) No 110/2008 of the European Parliament
and of the Council of 15 January 2008 on the definition, description,
presentation, labelling and the protection of geographical indications of
spirit drinks and repealing Council Regulation (EEC) No 1576/89 (OJ L 39,
13.2.2008, p. 16).

[21]             Council Regulation (EC) No 834/2007 of 28 June 2007 on
organic production and labelling of organic products and repealing Regulation
(EEC) No 2092/91 (OJ L 189, 20.7.2007, p. 1).

[22]             Regulation (EU) No 228/2013 of the European Parliament
and of the Council of 13 March 2013 laying down specific measures for
agriculture in the outermost regions of the Union and repealing Council
Regulation (EC) No 23/2006 ( OJ L 78, 20.3.2013, p. 23).

[23]             Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council of 25 October 2012 on the financial
rules applicable to the general budget of the Union and repealing Council
Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

[24]             Regulation (EU) No ... of the European Parliament and
of the Council establishing a common organisation of the markets in
agricultural products (OJ ....).

[25]             Regulation (EU, Euratom) No 883/2013 of the
European Parliament and of the Council of 11 September 2013 concerning
investigations conducted by the European Anti-Fraud Office (OLAF) and repealing
Regulation (EC) No 1073/1999 of the European Parliament and of the Council and
Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p.1).

[26]             Council Regulation (Euratom, EC) No 2185/96 of 11
November 1996 concerning on-the-spot checks and inspections carried out by the
Commission in order to protect the European Communities’ financial interests
against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

[27]             Commission Decision 2004/391/EC of 23 April 2004
on the advisory groups dealing with matters covered by the common agricultural
policy (OJ L 120, 24.4.2004, p. 50).

[28]             Council Regulation (EC) No 1184/2006 of 24 July 2006
applying certain rules of competition to the production of, and trade in,
agricultural products (OJ L 214, 4.8.2006, p. 7).

[29]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[30]             As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.

[31]             Protected designation of origin

[32]             Protected geographical indication

[33]             Point V of the Executive Summary of Report
No 10/2009 of the European Court of Auditors on ‘Information provision and
promotion measures for agricultural products’.

[34]             http://ec.europa.eu/agriculture/eval/reports/promotion/index\_en.htm

[35]             http://www.wheatworld.org/wp-content/uploads/trade-global-insight-map-report-march2010-20100423.pdf

[36]             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.htm

[37]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.

[38]             EFTA: European Free Trade Association.

[39]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[40]             Year N is the year in which implementation of the
proposal/initiative starts. Estimates are based on the assumption that
implementation will commence in 2016.

[41]             The amounts for 2015 – under the pre-reform
arrangements – are presented for guidance, are unchanged from 2014 and are
without prejudice to the detailed estimates for 2015 to be established in
connection with the 2015 draft budget.

[42]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.

[43]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[44]             As described in Section 1.4.2. ‘Specific
objective(s)…’.

[45]             In line with the common monitoring and evaluation
framework of the CAP, as provided for in Article 110 of Regulation (EU) No
[xxx/xxxx] on the financing, management and monitoring of the common
agricultural policy [the CAP Horizontal Regulation], a common monitoring and
evaluation framework will be established, and indicator tables will therefore
be duly completed at a later stage.

[46]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions (former
‘BA’ lines), indirect research, direct research.

[47]             CA = contract agent; LA = local agent; SNE = seconded
national expert; INT = agency staff ('intérimaire'); JED = young expert in
delegation ('jeune expert en délégation').

[48]             Sub-ceiling for external staff covered by operational
appropriations (former "BA" lines).

[49]             COM(2011)500, 29.6.2011

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