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PART X FINANCIAL INSTRUMENTS

Article 40Objectives

Union financial assistance may be granted to contribute to the achievement of the objectives set out in Article 2.

Article 41Conditions for financial assistance to Member States

1.Subject to the conditions to be specified in the applicable Union legal acts, Union financial assistance to Member States shall be conditional upon compliance with the CFP rules by Member States.

2.Non–compliance by Member States with the CFP rules may result in the interruption or suspension of payments or in the application of a financial correction to Union financial assistance under the CFP. Such measures shall be proportionate to the nature, gravity, duration and repetition of the non–compliance.

Article 42Conditions for financial assistance to operators

1.Subject to the conditions to be specified in the applicable Union legal acts, Union financial assistance to operators shall be conditional upon compliance with the CFP rules by operators.

2.Subject to specific rules to be adopted, serious infringements by operators of the CFP rules shall result in temporary or permanent bans on access to the Union financial assistance and/or the application of financial reductions. Such measures, taken by the Member State, shall be dissuasive, effective and proportionate to the nature, gravity, duration and repetition of serious infringements.

3.Member States shall ensure that Union financial assistance is granted only if no penalties for serious infringements have been imposed on the operator concerned within a period of one year prior to the date of application for Union financial assistance.