Explanatory Memorandum to COM(2007)594 - Adaptation of Annex VIII to the Act of Accession of Bulgaria and Romania

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dossier COM(2007)594 - Adaptation of Annex VIII to the Act of Accession of Bulgaria and Romania.
source COM(2007)594 EN
date 12-10-2007
Section IV of Annex VIII to the Act of Accession of Bulgaria and Romania established the financial contribution of the Community for rural development at 85% for agri-environment and animal welfare measures and 80% for all other measures.

Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) has introduced changes to the acquis on which the accession negotiations with Bulgaria and Romania were based. Article 70 of Regulation (EC) No 1698/2005 has introduced a new financial architecture, under which co-financing rates are no longer set at the level of the measure, but at axis level.

Council Decision 2006/664/EC of 19 June 2006 consequently adapted the Act of Accession of Bulgaria and Romania by replacing the previous text with a paragraph introducing financial contributions at axis level.

Annex II of Commission Regulation (EC) No 1974/2006 of 15 December 2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), as amended by Commission Regulation (EC) No 434/2007 by reason of Accession of Bulgaria and Romania to the European Union, provides for an indicative financial breakdown by rural development axis and measure, including the measure 'complements to direct payments', in the programmes.

The measure 'Complements to direct payments' was established in the Act of Accession as a transfer to Pillar I of the CAP of a limited proportion of Pillar II resources, for the years 2007, 2008 and 2009. As a transfer to Pillar I, it falls outside the architecture of the four rural development axes, and therefore is not covered by the co-financing rates per axis now specified in the Act of Accession. However, a maximum co-financing rate of 80% as originally established for this measure in the Act of Accession should be maintained.

The Act of Accession of Bulgaria and Romania should therefore be adapted to specify that the maximum financial contribution of the Community to the measure 'complements to direct payments' is 80%, the same as for axes 1 and 3 and for technical assistance. The co-financing rate for axis 2 has been established at 82% by Council Decision of 19 June 2006 adapting Annex VIII to the Act of Accession of Bulgaria and Romania. Article 70(3)(b) of Regulation (EC) No 1698/2005 fixes the co-financing rate for axis 4 at 80%.

The guiding principles followed in preparing this adaptation has been that the fundamental character and principles of the accession negotiation results should be maintained and that the adaptations should be limited to what is absolutely necessary.

This proposal has no financial implications for the Community budget.