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Regulation (EU) No 1303/2013 of the European Parliament and of the CouncilShow full title

Regulation (EU) No 1303/2013 of the European Parliament and of the Councilof 17 December 2013laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006

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Regulation (EU) No 1303/2013 of the European Parliament and of the Council, PART TWO is up to date with all changes known to be in force on or before 01 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Changes and effects yet to be applied to Part TWO:

  • Regulation amendment to earlier affecting provision 2020 asp17, ss. , 5 by 2024 asp 11 s. 23 25
  • Regulation amendment to earlier affecting provision 2020 asp17, ss. 2, 5 by 2024 asp 11 s. 22 25
  • Regulation amendment to earlier affecting provision 2020 asp17, ss. 4, 5 by 2024 asp 11 s. 24 25
  • Recital 10 Sentence 2 replacement by EUR 2018/1046 Regulation

PART TWOU.K.[F1COMMON PROVISIONS APPLICABLE TO SUPPORT FOR RURAL DEVELOPMENT]

TITLE IU.K.[F2PRINCIPLES OF SUPPORT FOR RURAL DEVELOPMENT]

Article 4E+S+N.I.General principles

[F31.Support for rural development must be provided through multi-annual programmes that complement national, regional and local intervention, as well as the Fund-specific missions, including economic, social and territorial cohesion.]

[F42.The relevant authority must ensure, taking account of the specific context of each constituent nation, that support for rural development is consistent with the horizontal principles referred to in Articles 5, 7 and 8 and that it is complementary to CMO support and direct payment support and support under other retained direct EU legislation.]

F53.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.[F6The relevant authority, in accordance with its institutional, legal and financial framework, and the bodies designated by it] for that purpose shall be responsible for preparing and implementing programmes and carrying out their tasks, in partnership with the relevant partners referred to in Article 5, in compliance with this Regulation and the Fund-specific rules.

5.Arrangements for the implementation and use of [F7support for rural development], and in particular the financial and administrative resources required for the preparation and implementation of programmes, in relation to monitoring, reporting, evaluation, management and control, shall respect the principle of proportionality having regard to the level of support allocated and shall take into account the overall aim of reducing the administrative burden on bodies involved in the management and control of the programmes.

F86.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F87.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F88.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.[F9The relevant authority and Managing Authority] shall ensure the effectiveness of [F10support for rural development] during preparation and implementation, in relation to monitoring, reporting and evaluation.

10.[F11The relevant authority and Managing Authority] shall carry out their respective roles in relation to [F12support for rural development] with the aim of reducing the administrative burden on beneficiaries.

Extent Information

E1This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 4WGeneral principles

[F2711.Support for rural development must be provided through multi-annual programmes that complement national, regional and local intervention, as well as the F272... missions, including economic, social and territorial cohesion.]

[F2732.The relevant authority must ensure F274... that support for rural development is consistent with the horizontal principles referred to in Articles 5, 7 and 8 and that it is complementary to CMO support F275... and support under other retained direct EU legislation.]

F2763.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.[F277The relevant authority, in accordance with its institutional, legal and financial framework, and the bodies designated by it] for that purpose shall be responsible for preparing and implementing programmes and carrying out their tasks F278... in compliance with this Regulation F279... .

5.Arrangements for the implementation and use of [F280support for rural development], and in particular the financial and administrative resources required for the preparation and implementation of programmes, in relation to monitoring, reporting, evaluation, management and control, shall respect the principle of proportionality having regard to the level of support allocated and shall take into account the overall aim of reducing the administrative burden on bodies involved in the management and control of the programmes.

F2816.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2817.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2818.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.[F282[F283The relevant authority] and Managing Authority] shall ensure the effectiveness of [F284support for rural development] during preparation and implementation, in relation to monitoring, reporting and evaluation.

10.[F285[F286The relevant authority] and Managing Authority] shall carry out their respective roles in relation to [F287support for rural development] with the aim of reducing the administrative burden on beneficiaries.

Extent Information

E17This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F272Word in Art. 4(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(a)

F274Words in Art. 4(2) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(b)(i)

F275Words in Art. 4(2) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(b)(ii)

F278Words in Art. 4(4) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(c)(i)

F279Words in Art. 4(4) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(c)(ii)

F283Words in Art. 4(9) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(d)

F286Words in Art. 4(10) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(4)(e)

[F13Article 5U.K.Partnership and multi-level governance

1.[F14The relevant authority] shall in accordance with its institutional and legal framework organise a partnership with the competent regional and local authorities. The partnership shall also include the following partners:

(a)competent F15... public authorities;

(b)economic and social partners; and

(c)relevant bodies representing civil society, including environmental partners, non-governmental organisations, and bodies responsible for promoting social inclusion, gender equality and non-discrimination.

2.In accordance with the multi-level governance approach, the partners referred to in paragraph 1 shall be involved by [F16the relevant authority] in the preparation of F17... progress reports and throughout the preparation and implementation of programmes, including through participation in the monitoring committees for programmes in accordance with Article 48.

F183.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The provisions of the code of conduct shall not in any way contradict the relevant provisions of this Regulation or the Fund-specific rules.

4.[F19The Commission shall notify the delegated act, referred to in paragraph 3 of this Article, on the European code of conduct on partnership, simultaneously to the European Parliament and to the Council by 18 April 2014. That delegated act shall not specify a date of application that is earlier than the date of its adoption.]

F205.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F206.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F13Art. 5 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(5)

[F21Article 6U.K.Compliance with the law as it applies in the constituent nation

Operations receiving support for rural development must comply with the law as it applies in the constituent nation relating to its application (“the law as it applies in the constituent nation”).]

Textual Amendments

Article 7U.K.Promotion of equality between men and women and non-discrimination

The [F22relevant authority] shall ensure that equality between men and women and the integration of gender perspective are taken into account and promoted throughout the preparation and implementation of programmes, including in relation to monitoring, reporting and evaluation.

The [F22relevant authority] shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during the preparation and implementation of programmes. In particular, accessibility for persons with disabilities shall be taken into account throughout the preparation and implementation of programmes.

Textual Amendments

Article 8E+S+N.I.Sustainable development

The objectives of the [F23support for rural development] shall be pursued in line with the principle of sustainable development and with the F24... aim of preserving, protecting and improving the quality of the environment, as set out in Article 11 and Article 191(1) TFEU, taking into account the polluter pays principle.

[F252.The relevant authority must ensure that environmental protection requirements, resource efficiency, climate change mitigation and adaptation, biodiversity, disaster resilience, and risk prevention and management are promoted in the preparation and implementation of programmes. The relevant authority must provide information on the support for climate change objectives using a methodology based on the categories of intervention, focus areas or measures, as appropriate, for support for rural development. That methodology must consist of assigning a specific weighting to the support provided at a level which reflects the extent to which such support makes a contribution to climate change mitigation and adaptation goals. The specific weighting assigned must be differentiated on the basis of whether the support makes a significant or a moderate contribution towards climate change objectives. Where the support does not contribute towards those objectives of the contribution is insignificant, a weighting of zero shall be assigned. In the case of support for rural development weightings shall be attached to focus areas set out in Regulation (EU) No 1305/2013.]

[F26The appropriate authority may make regulations setting out uniform conditions for support for rural development for the application of the methodology referred to in the second paragraph.]

Extent Information

E2This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 8WSustainable development

The objectives of the [F288support for rural development] shall be pursued in line with the principle of sustainable development and with the F289... aim of preserving, protecting and improving the quality of the environment, as set out in Article 11 and Article 191(1) TFEU, taking into account the polluter pays principle.

[F2902.The relevant authority must ensure that the environmental protection requirements, resource efficiency, climate change mitigation and adaptation, biodiversity, disaster resilience, and risk prevention and management are promoted in the preparation and implementation of programmes.

The appropriate authority may make regulations setting out uniform conditions for support for rural development.]

Extent Information

E18This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F290Art. 8(2) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(6)

Textual Amendments

[F27TITLE IIU.K.STRATEGIC APPROACH

CHAPTER IU.K.Thematic objectives for the ESI Funds and Common Strategic Framework

Article 9U.K.Thematic objectives

[F28In order to contribute to the Fund-specific missions, support for rural development must support the following thematic objectives:]

(1)

strengthening research, technological development and innovation;

(2)

enhancing access to, and use and quality of, ICT;

(3)

enhancing the competitiveness of SMEs, of the agricultural sector [F29(for support for rural development)] and of the fishery and aquaculture sector (for the EMFF);

(4)

supporting the shift towards a low-carbon economy in all sectors;

(5)

promoting climate change adaptation, risk prevention and management;

(6)

preserving and protecting the environment and promoting resource efficiency;

(7)

promoting sustainable transport and removing bottlenecks in key network infrastructures;

(8)

promoting sustainable and quality employment and supporting labour mobility;

(9)

promoting social inclusion, combating poverty and any discrimination;

(10)

investing in education, training and vocational training for skills and lifelong learning;

(11)

enhancing institutional capacity of public authorities and stakeholders and efficient public administration.

Thematic objectives shall be translated into priorities that are specific to [F30support for rural development] and are set out in the Fund-specific rules.

[F31The priorities established for [F30support for rural development] in the Fund-specific rules shall in particular cover the appropriate use of [F32support for rural development] in the areas of migration and asylum. In that context, coordination with the Asylum, Migration and Integration Fund established by Regulation (EU) No 516/2014 of the European Parliament and of the Council(1) shall be ensured, where appropriate.]

Textual Amendments

Article 10U.K.Common Strategic Framework

[F331.In order to promote harmonious, balanced and sustainable development, a Common Strategic Framework (“CSF”) is hereby established as set out in Annex I. The CSF establishes strategic guiding principles to facilitate the programming process and the sectoral and territorial coordination of intervention through support for rural development, taking into account the key territorial challenges of the various types of territories.]

[F342.The strategic guiding principles as set out in the CSF shall be established in line with the purpose and within the scope of the support for rural development, and in line with this Regulation and the Fund-specific rules. The CSF shall not impose additional obligations upon constituent nations beyond those set out within the framework of the relevant sectorial policies.]

3.The CSF shall facilitate the preparation of F35... programmes in accordance with the principles of proportionality and subsidiarity and taking into account national and regional competences, in order for the specific and appropriate policy and coordination measures to be decided.

Textual Amendments

Article 11U.K.Content

The CSF shall establish:

(a)

F36...

(b)

arrangements to promote an integrated use of [F37support for rural development];

(c)

arrangements for coordination between [F37support for rural development] and [F38direct payment support and CMO support];

(d)

horizontal principles referred to in Articles 5, 7 and 8 and cross-cutting policy objectives for the implementation of [F37support for rural development];

(e)

arrangements to address the key territorial challenges for urban, rural, coastal and fisheries areas, the demographic challenges of regions or specific needs of geographical areas which suffer from severe and permanent natural or demographic handicaps F39... ;

(f)

priority areas for cooperation activities under [F37support for rural development], where appropriate, F40....

Textual Amendments

F41Article 12U.K.Review

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Textual Amendments

F42Article 13U.K.Guidance for beneficiaries

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Textual Amendments

CHAPTER IIU.K.Partnership Agreement

F42Article 14U.K.Preparation of the Partnership Agreement

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Textual Amendments

F42Article 15U.K.Content of the Partnership Agreement

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Textual Amendments

F42Article 16U.K.Adoption and amendment of the Partnership Agreement

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Textual Amendments

F42Article 17U.K.Adoption of the revised Partnership Agreement in the event of delay in the entry into force of a Fund-specific Regulation

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Textual Amendments

CHAPTER IIIU.K.Thematic concentration, ex ante conditionalities and performance review

F42Article 18U.K.Thematic concentration

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Article 19U.K.Ex ante conditionalities

[F43The relevant authority must assess in accordance with its institutional and legal framework and in the context of the preparation of it programmes whether the ex ante conditionalities laid down in the respective Fund-specific rules and the general ex ante conditionalities set out in Part II of Annex XI are applicable to the specific objectives pursued within the priorities of their programmes and whether the applicable ex ante conditionalities are fulfilled.]

Textual Amendments

F44Article 20U.K.Performance reserve

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Textual Amendments

F44Article 21U.K.Performance review

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Textual Amendments

F44Article 22U.K.Application of the performance framework

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Textual Amendments

CHAPTER IVU.K.Measures linked to sound economic governance

F44Article 23U.K.Measures linking effectiveness of ESI Funds to sound economic governance

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Textual Amendments

F44Article 24U.K. Increase in payments for Member State with temporary budgetary difficulties

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Textual Amendments

F44Article 25U.K. Management of technical assistance for Member States

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Textual Amendments

[F45CHAPTER V U.K. Exceptional measures for the use of the ESI Funds in response to the COVID-19 outbreak

Article 25aU.K. Exceptional measures for the use of the ESI Funds in response to the COVID-19 outbreak

1.By way of derogation from Article 60(1) and the first and fourth subparagraphs of Article 120(3), at the request of a Member State, a co-financing rate of 100 % may be applied to expenditure declared in payment applications during the accounting year starting 1 July 2020 and ending 30 June 2021 for one or more priority axes in a programme supported by the ERDF, the ESF or the Cohesion Fund.

Requests for modification of the co-financing rate shall be submitted in accordance with the procedure for the amendment of programmes set out in Article 30 and shall be accompanied by a revised programme or programmes. The co-financing rate of 100 % shall apply only if the relevant amendment of the operational programme is approved by the Commission before the submission of the final application for an interim payment in accordance with Article 135(2).

Before submitting the first payment application for the accounting year starting 1 July 2021, Member States shall notify the table referred to in point (d)(ii) of Article 96(2) confirming the co-financing rate which was applicable during the accounting year ending 30 June 2020 for the priorities concerned by the temporary increase to 100 %.

2.In response to the COVID-19 outbreak, the resources available for programming for the year 2020 for the Investment for growth and jobs goal may, at the request of a Member State, be transferred between the ERDF, the ESF and the Cohesion Fund, irrespective of the percentages referred to in points (a) to (d) of Article 92(1).

For the purpose of those transfers, the requirements laid down in Article 92(4) shall not apply.

Transfers shall not affect resources allocated to the YEI in accordance with Article 92(5) or to the aid for the most deprived under the Investment for growth and jobs goal in accordance with Article 92(7).

Resources transferred between the ERDF, the ESF and the Cohesion Fund under this paragraph shall be implemented in accordance with the rules of the Fund to which the resources are transferred.

3.By way of derogation from Article 93(1) and in addition to the possibility provided for in Article 93(2), resources available for programming for the year 2020 may, at the request of a Member State, be transferred between categories of regions in response to the COVID-19 outbreak.

4.Requests for transfers under paragraphs 2 and 3 of this Article shall be submitted in accordance with the procedure for amendment of programmes set out in Article 30, shall be duly justified and shall be accompanied by the revised programme or programmes identifying the amounts transferred by Fund and by category of region, where relevant.

5.By way of derogation from Article 18 of this Regulation and the Fund-specific Regulations, financial allocations set out in requests for programme amendments submitted or transfers notified pursuant to Article 30(5) of this Regulation, on or after 24 April 2020, shall not be subject to the requirements on thematic concentration set out in this Regulation or the Fund-specific Regulations.

6.By way of derogation from Article 16, as from 24 April 2020, Partnership Agreements shall not be amended and programme amendments shall not entail the amendment of Partnership Agreements.

By way of derogation from Articles 26(1), 27(1), 30(1) and 30(2), as from 24 April 2020 the consistency of programmes and of their implementation with the Partnership Agreement shall not be verified.

7.For operations that foster crisis response capacities in the context of the COVID-19 outbreak as referred to in the second subparagraph of Article 65(10), Article 65(6) shall not apply.

By way of derogation from point (b) of Article 125(3), such operations may be selected for support by the ERDF or the ESF prior to the approval of the amended programme.

8.For the purposes of point (b) of Article 87(1), where the COVID-19 outbreak is invoked as a reason of force majeure , information on the amounts for which it has not been possible to make a payment application shall be provided at an aggregate level by priority for operations whose total eligible cost is less than EUR 1 000 000.

9.The annual report on implementation of the programme referred to in Article 50(1) for the year 2019 shall be submitted by 30 September 2020 for all ESI Funds, by way of derogation from the deadlines set out in the Fund-specific Regulations. The transmission of the summary report to be prepared by the Commission in 2020, in accordance with Article 53(1), may be postponed accordingly.

10.By way of derogation from point (g) of Article 37(2), no review or update of the ex ante assessments shall be required where changes in financial instruments are necessary to provide an effective response to the COVID-19 outbreak.

11.Where financial instruments provide support in the form of working capital to SMEs pursuant to the second subparagraph of Article 37(4) of this Regulation, new or updated business plans, or equivalent documents, and evidence allowing verification that the support provided through the financial instruments has been used for its intended purpose as part of the supporting documents, shall not be required.

By way of derogation from Regulation (EU) No 1305/2013, such support may also be provided by the EAFRD under measures referred to in Regulation (EU) No 1305/2013 and relevant to the implementation of financial instruments. Such eligible expenditure shall not exceed EUR 200 000.

12.For the purposes of the second subparagraph of Article 127(1), the COVID-19 outbreak shall constitute a duly justified case that audit authorities may invoke, based on their professional judgement, to use a non-statistical sampling method for the accounting year starting 1 July 2019 and ending 30 June 2020.

13.For the purposes of application of point (f) of Article 30(1) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(2), the condition that appropriations are for the same objective shall not apply in respect of transfers under paragraphs 2 and 3 of this Article.]]

Textual Amendments

Textual Amendments

F27Pt. 2 Title 2 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(7)

TITLE IIIU.K.PROGRAMMING

[F46CHAPTER IU.K.General provisions on the ESI Funds

[F47Article 26E+W+N.I.Preparation of programmes

Support for rural development must be implemented through programmes. Each programmes shall cover the period from 1 January 2014 to 31 December 2020.]

Extent Information

E3This version of this provision extends to England and Wales and Northern Ireland only; a separate version has been created for Scotland only

Textual Amendments

[F291Article 26S Support for rural development under the programme

Support for rural development must be implemented through a programme until 31 December 2024. ]

Extent Information

E19This version of this provision extends to Scotland only; a separate version has been created for England and Wales and Northern Ireland

Textual Amendments

Article 27U.K.Content of programmes

1.F48...

Each programme shall include arrangements to ensure effective, efficient and coordinated implementation of [F49support for rural development] and actions to achieve a reduction of the administrative burden on beneficiaries.

2.Each programme shall define priorities setting out specific objectives, financial appropriations of support [F50for rural development] and corresponding national co-financing F51... which may be public or private in accordance with the Fund-specific rules.

F523.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.Each priority shall set out indicators and corresponding targets expressed in qualitative or quantitative terms, in accordance with the Fund-specific rules, in order to assess progress in programme implementation aimed at achievement of objectives as the basis for monitoring, evaluation and review of performance. Those indicators shall include:

(a)financial indicators relating to expenditure allocated;

(b)output indicators relating to the operations supported;

(c)result indicators relating to the priority concerned.

[F53The] Fund-specific rules shall set out common indicators and may set out provisions related to programme-specific indicators.

5.Each programme, except those which cover exclusively technical assistance, shall include a description, in accordance with the Fund-specific rules, of the actions to take into account the principles set out in Articles 5, 7 and 8.

6.Each programme, except those where technical assistance is undertaken under a specific programme, shall set out the indicative amount of support to be used for climate change objectives, based on the methodology referred to in Article 8.

7.[F54The authority with responsibility for preparing the programme] shall draft the programme in accordance with the Fund-specific rules.

Textual Amendments

F55Article 28U.K.Specific provisions on the content of programmes dedicated to joint instruments for uncapped guarantees and securitisation providing capital relief implemented by the EIB

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Textual Amendments

F56Article 29U.K.Procedure for the adoption of programmes

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Textual Amendments

[F57Article 30U.K.Amendment of programmes

Programmes may be amended by the relevant authority as set out in the Fund-specific regulations. The relevant authority must take into account this Regulation, the Fund-specific rules, the horizontal principles referred to in Article 5-7 and the expected impact of the changes to the programme on the programme's objectives.]]

Textual Amendments

F58Article 31U.K.Participation of the EIB

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Textual Amendments

Textual Amendments

F46Pt. 2 Title 3 Ch. 1 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(8)

CHAPTER IIU.K.Community-led local development

Article 32E+S+N.I.Community-led local development

[F591.Support for rural development must be provided by the relevant authority for community-led led local development.]

2.Community-led local development shall be:

(a)focused on specific subregional areas;

(b)led by local action groups composed of representatives of public and private local socio-economic interests, in which, at the decision-making level neither public authorities, as defined in accordance with national rules, nor any single interest group represents more than 49 % of the voting rights;

(c)carried out through integrated and multi-sectoral area-based local development strategies;

(d)designed taking into consideration local needs and potential, and shall include innovative features in the local context, networking and, where appropriate, cooperation.

3.[F60Where support for rural development is made available to community-led local development it must be done so in a consistent and coordinated way.] This shall be ensured inter alia through coordinated capacity-building, selection, approval and funding of community-led local development strategies and local action groups.

F614.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F625.Community-led local development funded by support for rural development must be carried out under one or more priorities of the relevant programme or programmes in accordance with the Fund-specific rules.]

Extent Information

E4This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 32WCommunity-led local development

[F2921.Support for rural development must be provided by the relevant authority for community-led local development. For the purposes of this Chapter, “the support concerned” means support for rural development.]

2.Community-led local development shall be:

(a)focused on specific subregional areas;

(b)led by local action groups composed of representatives of public and private local socio-economic interests, in which, at the decision-making level neither public authorities, as defined in accordance with national rules, nor any single interest group represents more than 49 % of the voting rights;

(c)carried out through integrated and multi-sectoral area-based local development strategies;

(d)designed taking into consideration local needs and potential, and shall include innovative features in the local context, networking and, where appropriate, cooperation.

3.[F293Where support for rural development is made available to community-led local development it must be done so in a consistent and coordinated way.] This shall be ensured inter alia through coordinated capacity-building, selection, approval and funding of community-led local development strategies and local action groups.

F2944.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2955.Community-led local development funded by support for rural development must be carried out under one or more priorities of the relevant programme or programmes in accordance with the F296... rules.]

Extent Information

E20This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F292Art. 32(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(9)(a)

F296Word in Art. 32(5) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(9)(b)

Article 33U.K.Community-led local development strategies

1.A community-led local development strategy shall contain at least the following elements:

(a)the definition of the area and population covered by the strategy;

(b)an analysis of the development needs and potential of the area, including an analysis of strengths, weaknesses, opportunities and threats;

(c)a description of the strategy and its objectives, a description of the integrated and innovative features of the strategy and a hierarchy of objectives, including measurable targets for outputs or results. In relation to results, targets may be expressed in quantitative or qualitative terms. [F63The strategy shall be consistent with the relevant programmes.]

(d)a description of the community involvement process in the development of the strategy;

(e)an action plan demonstrating how objectives are translated into actions;

(f)a description of the management and monitoring arrangements of the strategy, demonstrating the capacity of the local action group to implement the strategy and a description of specific arrangements for evaluation;

(g)the financial plan for the strategy, including the planned allocation from [F64support for rural development].

2.[F65The relevant authority] shall define criteria for the selection of community-led local development strategies.

3.Community-led local development strategies shall be selected by a committee set up for that purpose by the managing authority or authorities responsible and approved by the managing authority or authorities responsible.

F664.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.The decision approving a community-led local development strategy shall set out the allocations [F67from the relevant programmes]. The decision shall also set out the responsibilities for the management and control tasks under the programme or programmes in relation to the community-led local development strategy.

6.The population of the area referred to in point (a) of paragraph 1 shall be not less than 10 000 and not more than 150 000 inhabitants. F68...

Textual Amendments

Article 34U.K.Local action groups

1.Local action groups shall design and implement the community-led local development strategies.

[F69The relevant authority] shall define the respective roles of the local action group and the authorities responsible for the implementation of the relevant programmes, concerning all implementation tasks relating to the community-led local development strategy.

2.The managing authority or authorities responsible shall ensure that the local action groups either select one partner within the group as a lead partner in administrative and financial matters, or come together in a legally constituted common structure.

3.The tasks of local action groups shall include the following:

[F70(a)building the capacity of local actors, including potential beneficiaries, to develop and implement operations including by fostering their capacity to prepare and manage their projects;

(b)drawing up a non-discriminatory and transparent selection procedure which avoids conflicts of interests, ensures that at least 50 % of the votes in selection decisions are cast by partners which are not public authorities, and allows selection by written procedure;

(c)drawing up and approving non-discriminatory objective criteria for the selection of operations that ensure coherence with the community-led local development strategy by prioritising those operations according to their contribution to meeting that strategy’s objectives and targets;

(d)preparing and publishing calls for proposals or an ongoing project submission procedure;]

(e)receiving and assessing applications for support;

(f)selecting operations and fixing the amount of support and, where relevant, presenting the proposals to the body responsible for final verification of eligibility before approval;

(g)monitoring the implementation of the community-led local development strategy and the operations supported and carrying out specific evaluation activities linked to that strategy.

[F31Where local action groups carry out tasks not covered by points (a) to (g) of the first subparagraph that fall under the responsibility of the managing or certifying authority or of the paying agency, those local action groups shall be designated as intermediate bodies [F71in accordance with the Fund-specific rules].]

4.Without prejudice to point (b) of paragraph 3, the local action group may be a beneficiary and implement operations in accordance with the community-led local development strategy.

5.In the case of cooperation activities of local action groups as referred to in point (c) of Article 35(1), the tasks set out in point (f) of paragraph 3 of this Article may be carried out by the managing authority responsible.

Textual Amendments

F71Words in Art. 34(3) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(10)

Article 35U.K.Support F72... for community-led local development

1.Support [F73for rural development] for community-led local development shall cover:

(a)the costs of preparatory support consisting of capacity building, training and networking with a view to preparing and implementing a community-led local development strategy.

Such costs may include one or more of the following elements:

(i)

training actions for local stakeholders;

(ii)

studies of the area concerned;

(iii)

costs related to the design of the community-led local development strategy, including consultancy costs and costs for actions related to consultations of stakeholders for the purposes of preparing the strategy;

(iv)

administrative costs (operating and personnel costs) of an organisation that applies for preparatory support during the preparation phase;

(v)

support for small pilot projects.

Such preparatory support shall be eligible regardless of whether the community-led local development strategy designed by the local action group benefitting from the support is selected for funding by the selection committee set up under Article 33(3).

(b)implementation of operations under the community-led local development strategy;

(c)preparation and implementation of the local action group's cooperation activities;

(d)running costs linked to the management of the implementation of the community-led local development strategy consisting of operating costs, personnel costs, training cost, costs linked to public relations, financial costs as well as the costs linked to monitoring and evaluation of that strategy as referred to in point (g) of Article 34(3);

(e)animation of the community-led local development strategy in order to facilitate exchange between stakeholders to provide information and to promote the strategy and to support potential beneficiaries with a view to developing operations and preparing applications.

2.Support for running costs and animation as referred to in points (d) and (e) of paragraph 1 shall not exceed 25 % of the total [F74public] expenditure incurred within the community-led local development strategy.

Textual Amendments

F74Word in Art. 35(2) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(11)

CHAPTER ΙΙΙU.K.Territorial development

F75Article 36U.K.Integrated territorial investment

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

TITLE IVU.K.FINANCIAL INSTRUMENTS

Article 37E+S+N.I.Financial instruments

1.[F76Support for rural development] may be used to support financial instruments under one or more programmes , including when organised through funds of funds, in order to contribute to the achievement of specific objectives set out under a priority.

Financial instruments shall be implemented to support investments which are expected to be financially viable and do not give rise to sufficient funding from market sources. When applying this Title, the managing authorities, the bodies implementing funds of funds, and the bodies implementing financial instruments shall comply with applicable law, in particular on F77... public procurement.

2.Support of financial instruments shall be based on an ex ante assessment which has established evidence of market failures or suboptimal investment situations, and the estimated level and scope of public investment needs, including types of financial instruments to be supported. Such ex ante assessment shall include:

(a)an analysis of market failures, suboptimal investment situations, and investment needs for policy areas and thematic objectives or investment priorities to be addressed with a view to contributing to the achievement of specific objectives set out under a priority and to be supported through financial instruments. That analysis shall be based on available good practices methodology;

(b)an assessment of the added value of the financial instruments that are being considered for [F78support for rural development], consistency with other forms of public intervention addressing the same market, F79... the proportionality of the envisaged intervention and measures to minimise market distortion;

[F70(c)an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient (expected leverage effect), including as appropriate an assessment of the need for, and the extent of, differentiated treatment as referred to in Article 43a to attract counterpart resources from investors operating under the market economy principle and/or a description of the mechanisms which will be used to establish the need for, and extent of, such differentiated treatment, such as a competitive or appropriately independent assessment process;]

(d)an assessment of lessons learnt from similar instruments and ex ante assessments carried out by the [F80relevant authority] in the past, and how such lessons will be applied in the future;

(e)the proposed investment strategy, including an examination of options for implementation arrangements within the meaning of Article 38, financial products to be offered, final recipients targeted and envisaged combination with grant support as appropriate;

(f)a specification of the expected results and how the financial instrument concerned is expected to contribute to the achievement of the specific objectives set out under the relevant priority including indicators for that contribution;

(g)provisions allowing for the ex ante assessment to be reviewed and updated as required during the implementation of any financial instrument which has been implemented based upon such assessment, where during the implementation phase, the managing authority considers that the ex ante assessment may no longer accurately represent the market conditions existing at the time of implementation.

[F703.The ex ante assessment referred to in paragraph 2 of this Article may take into account the ex ante evaluations referred to in point (h) of the first subparagraph and the second subparagraph of Article 209(2) of the Financial Regulation and may be performed in stages. It shall, in any event, be completed before the managing authority decides to make programme contributions to a financial instrument.]

The summary findings and conclusions of ex ante assessments in relation to financial instruments shall be published within three months of their date of finalisation.

The ex ante assessment shall be submitted to the monitoring committee for information purposes in accordance with the Fund-specific rules.

4.Where financial instruments support financing to enterprises, including SMEs, such support shall target the establishment of new enterprises, early stage-capital, i.e. seed capital and start-up capital, expansion capital, capital for the strengthening of the general activities of an enterprise, or the realisation of new projects, penetration of new markets or new developments by existing enterprises, F81... in accordance with the Fund-specific rules. Such support may include investment in both tangible and intangible assets as well as working capital F82... with a view to stimulating the private sector as a supplier of funding to enterprises. It may also include the costs of transfer of proprietary rights in enterprises provided that such transfers take place between independent investors.

[F83Financial instruments may also provide support in the form of working capital to SMEs, if necessary as a temporary measure, to provide an effective response to a public health crisis.]

5.Investments that are to be supported through financial instruments shall not be physically completed or fully implemented at the date of the investment decision.

6.Where financial instruments provide support to final recipients in respect of infrastructure investments with the objective of supporting urban development or urban regeneration or similar infrastructure investments with the objectives of diversifying non-agricultural activities in rural areas, such support may include the amount necessary for the reorganisation of a debt portfolio regarding infrastructure forming part of the new investment, up to a maximum of 20 % of the total amount of programme support from the financial instrument to the investment.

7.Financial instruments may be combined with grants, interest rate subsidies and guarantee fee subsidies. Where [F84support for rural development] is provided by means of financial instruments and combined in a single operation, with other forms of support directly related to financial instruments targeting the same final recipients, including technical support, interest rate subsidies and guarantee fee subsidies, the provisions applicable to financial instruments shall apply to all forms of support within that operation. In such cases, F85... separate records shall be maintained for each form of support.

F868.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.The combination of support provided through grants and financial instruments as referred to in paragraphs 7 and 8 mayF87... cover the same expenditure item provided that the sum of all forms of support combined does not exceed the total amount of the expenditure item concerned. Grants shall not be used to reimburse support received from financial instruments. Financial instruments shall not be used to pre-finance grants.

10.Contributions in kind shall not constitute eligible expenditure in respect of financial instruments, except for contributions of land or real estate in respect of investments with the objective of supporting rural development, urban development or urban regeneration, where the land or real estate forms part of the investment. Such contributions of land or real estate shall be eligible provided that the conditions laid down in Article 69(1) are met.

11.VAT shall not constitute eligible expenditure of an operation, except in the case of VAT which is non-recoverable under national VAT legislation. The treatment of VAT at the level of investments made by final recipients shall not be taken into account for the purposes of determining the eligibility of expenditure under the financial instrument. However, where financial instruments are combined with grants under paragraphs 7 and 8 of this Article, the provisions of Article 69(3) shall apply to the grant.

F8812.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8913.The appropriate authority may make regulations in relation to support for rural development laying down additional specific rules on the purchase of land and on combining technical support with financial instruments.]

Extent Information

E5This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 37WFinancial instruments

1.[F297Support for rural development] may be used to support financial instruments under one or more programmes F298... in order to contribute to the achievement of specific objectives set out under a priority.

Financial instruments shall be implemented to support investments which are expected to be financially viable and do not give rise to sufficient funding from market sources. When applying this Title, the managing authorities F299... and the bodies implementing financial instruments shall comply with applicable law, in particular on F300... public procurement.

2.Support of financial instruments shall be based on an F301... assessment which has established evidence of market failures or suboptimal investment situations, and the estimated level and scope of public investment needs, including types of financial instruments to be supported. Such F301... assessment shall include:

(a)an analysis of market failures, suboptimal investment situations, and investment needs for policy areas F302... or investment priorities to be addressed with a view to contributing to the achievement of specific objectives set out under a priority and to be supported through financial instruments. That analysis shall be based on available good practices methodology;

(b)an assessment of the added value of the financial instruments that are being considered for [F303support for rural development], consistency with other forms of public intervention addressing the same market, F304... the proportionality of the envisaged intervention and measures to minimise market distortion;

[F305(c)an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient (expected leverage effect), including as appropriate an assessment of the need for, and the extent of, differentiated treatment as referred to in Article 43a to attract counterpart resources from investors operating under the market economy principle and/or a description of the mechanisms which will be used to establish the need for, and extent of, such differentiated treatment, such as a competitive or appropriately independent assessment process;]

(d)an assessment of lessons learnt from similar instruments and F301... assessments carried out by the [F306relevant authority] in the past, and how such lessons will be applied in the future;

(e)the proposed investment strategy, including an examination of options for implementation arrangements within the meaning of Article 38, financial products to be offered, final recipients targeted and envisaged combination with grant support as appropriate;

(f)a specification of the expected results and how the financial instrument concerned is expected to contribute to the achievement of the specific objectives set out under the relevant priority including indicators for that contribution;

(g)provisions allowing for the F301... assessment to be reviewed and updated as required during the implementation of any financial instrument which has been implemented based upon such assessment, where during the implementation phase, the managing authority considers that the F301... assessment may no longer accurately represent the market conditions existing at the time of implementation.

[F3053.The F301... assessment referred to in paragraph 2 of this Article may take into account the F301... evaluations referred to in point (h) of the first subparagraph and the second subparagraph of Article 209(2) of the Financial Regulation and may be performed in stages. It shall, in any event, be completed before the managing authority decides to make programme contributions to a financial instrument.]

The summary findings and conclusions of F301... assessments in relation to financial instruments shall be published within three months of their date of finalisation.

F307...

4.Where financial instruments support financing to enterprises F308... such support shall target the establishment of new enterprises, early stage-capital, i.e. seed capital and start-up capital, expansion capital, capital for the strengthening of the general activities of an enterprise, or the realisation of new projects, penetration of new markets or new developments by existing enterprises, F309... F310.... Such support may include investment in both tangible and intangible assets as well as working capital F311... with a view to stimulating the private sector as a supplier of funding to enterprises. It may also include the costs of transfer of proprietary rights in enterprises provided that such transfers take place between independent investors.

[F312Financial instruments may also provide support in the form of working capital to [F313businesses], if necessary as a temporary measure, to provide an effective response to a public health crisis.]

5.Investments that are to be supported through financial instruments shall not be physically completed or fully implemented at the date of the investment decision.

6.Where financial instruments provide support to final recipients in respect of infrastructure investments with the objective of supporting urban development or urban regeneration or similar infrastructure investments with the objectives of diversifying non-agricultural activities in rural areas, such support may include the amount necessary for the reorganisation of a debt portfolio regarding infrastructure forming part of the new investment, up to a maximum of 20 % of the total amount of programme support from the financial instrument to the investment.

7.Financial instruments may be combined with grants, interest rate subsidies and guarantee fee subsidies. Where [F314support for rural development] is provided by means of financial instruments and combined in a single operation, with other forms of support directly related to financial instruments targeting the same final recipients, including technical support, interest rate subsidies and guarantee fee subsidies, the provisions applicable to financial instruments shall apply to all forms of support within that operation. In such cases, F315... separate records shall be maintained for each form of support.

F3168.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.The combination of support provided through grants and financial instruments as referred to in [F317paragraph 7] may F318... cover the same expenditure item provided that the sum of all forms of support combined does not exceed the total amount of the expenditure item concerned. Grants shall not be used to reimburse support received from financial instruments. Financial instruments shall not be used to pre-finance grants.

10.Contributions in kind shall not constitute eligible expenditure in respect of financial instruments, except for contributions of land or real estate in respect of investments with the objective of supporting rural development, urban development or urban regeneration, where the land or real estate forms part of the investment. Such contributions of land or real estate shall be eligible provided that the conditions laid down in Article 69(1) are met.

11.VAT shall not constitute eligible expenditure of an operation, except in the case of VAT which is non-recoverable under national VAT legislation. The treatment of VAT at the level of investments made by final recipients shall not be taken into account for the purposes of determining the eligibility of expenditure under the financial instrument. However, where financial instruments are combined with grants under [F319paragraph 7] of this Article, the provisions of Article 69(3) shall apply to the grant.

F32012.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F32113.The appropriate authority may make regulations in relation to support for rural development laying down additional specific rules on the purchase of land and on combining technical support with financial instruments.]

Extent Information

E21This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F298Words in Art. 37(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(b)(i)

F299Words in Art. 37(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(b)(ii)

F301Words in Art. 37 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(a)

F302Words in Art. 37(2)(a) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(c)

F307Words in Art. 37(3) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(d)

F308Words in Art. 37(4) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(e)(i)(aa)

F310Words in Art. 37(4) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(e)(i)(bb)

F313Word in Art. 37(4) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(e)(ii)

F317Words in Art. 37(9) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(f)

F319Words in Art. 37(11) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(12)(g)

Article 38E+S+N.I.Implementation of financial instruments

[F901.In implementing Article 37, Managing Authorities may provide a financial contribution to financial instruments set up at national, regional, transnational or cross-border level, managed by or under the responsibility of the Managing Authority.]

F912.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.For financial instruments under F92... paragraph 1, the managing authority may provide a financial contribution to the following financial instruments:

(a)financial instruments complying with the standard terms and conditions [F93as set out in Regulation (EU) No 964/2014], in accordance with the second subparagraph of this paragraph;

(b)already existing or newly created financial instruments which are specifically designed to achieve the specific objectives set out under the relevant priority.

The [F94appropriate authority may make regulations in relation to support for rural development] concerning the standard terms and conditions with which the financial instruments under point (a) of the first subparagraph shall comply. F95...

4.When supporting financial instruments referred to in point (b) of paragraph 1 the managing authority may:

[F96(a)invest in the capital of existing or newly created legal entities dedicated to implementing financial instrument consistent with the objectives of the support for rural development, which will undertake implementation tasks; the support to such entities shall be limited to the amounts necessary to implement new investments in accordance with Article 37 and in a manner that is consistent with the objectives of this Regulation;]

[F70(b)entrust implementation tasks, through the direct award of a contract, to:

(i)

F97...

(ii)

an international financial institution in which a [F98relevant authority] is a shareholder;

(iii)

a publicly-owned bank or institution, established as a legal entity carrying out financial activities on a professional basis, which fulfils all of the following conditions:

  • there is no direct private capital participation, with the exception of non-controlling and non-blocking forms of private capital participation required by [F99the law as it applies in the constituent nation] which do not exert a decisive influence on the relevant bank or institution, and with the exception of forms of private capital participation which confer no influence on decisions regarding the day-to-day management of the financial instrument supported by [F100support for rural development];

  • operates under a public policy mandate given by the relevant authority F101..., which includes carrying out, as all or part of its activities, economic development activities contributing to the objectives of [F100support for rural development];

  • carries out, as all or part of its activities, economic development activities contributing to the objectives of [F100support for rural development] in regions, policy areas or sectors for which access to funding from market sources is not generally available or sufficient;

  • operates without primarily focussing on maximising profits, but ensures a long-term financial sustainability for its activities;

  • ensures that the direct award of a contract referred to in point (b) does not provide any direct or indirect benefit for commercial activities by way of appropriate measures in accordance with applicable law;

  • is subject to the supervision of an independent authority in accordance with applicable law;

(c)entrust implementation tasks to another body governed by public or private law; or

(d)undertake implementation tasks directly, in the case of financial instruments consisting solely of loans or guarantees. In that case the managing authority shall be considered to be the beneficiary within the meaning of point (10) of Article 2.]

[F70When implementing the financial instrument, the bodies referred to in points (a) to (d) of the first subparagraph of this paragraph shall ensure compliance with applicable law and with the requirements laid down in Article 155(2) and (3) of the Financial Regulation.]

F102...

[F705.The bodies referred to in points (a), (b) and (c) of the first subparagraph of paragraph 4 of this Article may, when implementing funds of funds further entrust part of the implementation to financial intermediaries provided that such bodies ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in Articles 33(1) and 209(2) of the Financial Regulation. Financial intermediaries shall be selected on the basis of open, transparent, proportionate and non-discriminatory procedures, avoiding conflict of interests.

6.The bodies referred to in points (b) and (c) of the first subparagraph of paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority, or set up the financial instrument as a separate block of finance within the institution. In the case of a separate block of finance, an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.]

[F707.Where a financial instrument is implemented under points (a), (b) and (c) of the first subparagraph of paragraph 4, subject to the implementation structure of the financial instrument, the terms and conditions for contributions from programmes to financial instruments shall be set out in funding agreements in accordance with Annex IV at the following levels:]

(a)where applicable, between the duly mandated representatives of the managing authority and the body that implements the fund of funds; and

(b)between the duly mandated representatives of the managing authority, or where applicable, the body that implements the fund of funds, and the body that implements the financial instrument.

[F708.For financial instruments implemented under point (d) of the first subparagraph of paragraph 4, the terms and conditions for contributions from programmes to financial instruments shall be set out in a strategy document in accordance with Annex IV to be examined by the monitoring committee.]

9.National public and private contributions, including where relevant contributions in kind as referred to in Article 37(10), may be provided at the level of the fund of funds, at the level of the financial instrument or at the level of final recipients, in accordance with the Fund-specific rules.

[F7010.[F103The appropriate authority may make regulations in relation to support for rural development] laying down uniform conditions regarding the detailed arrangements for the transfer and management of programme contributions managed by the bodies referred to in the first subparagraph of paragraph 4 of this Article and in Article 39a(5). F104...]

Extent Information

E6This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 38WImplementation of financial instruments

[F3221.In implementing Article 37, Managing Authorities may provide a financial contribution to financial instruments set up at national, regional, transnational or cross-border level, managed by or under the responsibility of the Managing Authority.]

F3232.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.For financial instruments under F324... paragraph 1, the managing authority may provide a financial contribution to the following financial instruments:

(a)financial instruments complying with the standard terms and conditions [F325as set out in Regulation (EU) No 964/2014], in accordance with the second subparagraph of this paragraph;

(b)already existing or newly created financial instruments which are specifically designed to achieve the specific objectives set out under the relevant priority.

The [F326appropriate authority may make regulations in relation to support for rural development] concerning the standard terms and conditions with which the financial instruments under point (a) of the first subparagraph shall comply. F327...

4.When supporting financial instruments referred to in point (b) of paragraph 1 the managing authority may:

[F328(a)invest in the capital of existing or newly created legal entities dedicated to implementing financial instrument consistent with the objectives of the support for rural development, which will undertake implementation tasks; the support to such entities shall be limited to the amounts necessary to implement new investments in accordance with Article 37 and in a manner that is consistent with the objectives of this Regulation;]

[F329(b)entrust implementation tasks, through the direct award of a contract, to:

(i)

F330...

(ii)

an international financial institution in which a [F331relevant authority] is a shareholder;

(iii)

a publicly-owned bank or institution, established as a legal entity carrying out financial activities on a professional basis, which fulfils all of the following conditions:

  • there is no direct private capital participation, with the exception of non-controlling and non-blocking forms of private capital participation required by [F332the law as it applies in the constituent nation] which do not exert a decisive influence on the relevant bank or institution, and with the exception of forms of private capital participation which confer no influence on decisions regarding the day-to-day management of the financial instrument supported by [F333support for rural development];

  • operates under a public policy mandate given by the relevant authority F334..., which includes carrying out, as all or part of its activities, economic development activities contributing to the objectives of [F333support for rural development];

  • carries out, as all or part of its activities, economic development activities contributing to the objectives of [F333support for rural development] in regions, policy areas or sectors for which access to funding from market sources is not generally available or sufficient;

  • operates without primarily focussing on maximising profits, but ensures a long-term financial sustainability for its activities;

  • ensures that the direct award of a contract referred to in point (b) does not provide any direct or indirect benefit for commercial activities by way of appropriate measures in accordance with applicable law;

  • is subject to the supervision of an independent authority in accordance with applicable law;

(c)entrust implementation tasks to another body governed by public or private law; or

(d)undertake implementation tasks directly, in the case of financial instruments consisting solely of loans or guarantees. In that case the managing authority shall be considered to be the beneficiary within the meaning of point (10) of Article 2.]

[F329When implementing the financial instrument, the bodies referred to in points (a) to (d) of the first subparagraph of this paragraph shall ensure compliance with applicable law and with the requirements laid down in Article 155(2) and (3) of the Financial Regulation.]

F335...

F3365.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3296.The bodies referred to in points (b) and (c) of the first subparagraph of paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority, or set up the financial instrument as a separate block of finance within the institution. In the case of a separate block of finance, an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.]

[F3297.Where a financial instrument is implemented under points (a), (b) and (c) of the first subparagraph of paragraph 4, subject to the implementation structure of the financial instrument, the terms and conditions for contributions from programmes to financial instruments shall be set out in funding agreements in accordance with Annex IV at the following levels:]

F337(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)between the duly mandated representatives of the managing authority F338... and the body that implements the financial instrument.

F3398.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.National public and private contributions, including where relevant contributions in kind as referred to in Article 37(10), may be provided at the level of the F340... financial instrument or at the level of final recipients, in accordance with the F341... rules.

[F32910.[F342The appropriate authority may make regulations in relation to support for rural development] laying down uniform conditions regarding the detailed arrangements for the transfer and management of programme contributions managed by the bodies referred to in the first subparagraph of paragraph 4 of this Article F343... . F344...]

Extent Information

E22This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F336Art. 38(5) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(a)

F337Art. 38(7)(a) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(b)(i)

F338Words in Art. 38(7)(b) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(b)(ii)

F339Art. 38(8) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(c)

F340Words in Art. 38(9) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(d)(i)

F341Word in Art. 38(9) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(d)(ii)

F343Words in Art. 38(10) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(13)(e)

F105Article 39U.K.Contribution of ERDF and EAFRD to joint uncapped guarantee and securitisation financial instruments in favour of SMEs, implemented by the EIB

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F106Article 39aU.K. Contribution of ESI Funds to financial instruments combining such contribution with EIB financial products under the European Fund for Strategic Investments

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Article 40E+S+N.I.Management and control of financial instruments

[F701.[F107The authorities designated in accordance with Article 65 of the Regulation (EU) No 1305/2013 must not carry out on-the-spot verifications at the level of international financial institutions in which a relevant authority is a shareholder, for financial instruments implemented by them.

However, the designated authorities shall carry out checks in accordance with Article 59(1) of Regulation (EU) No 1306/2013 at the level of other bodies implementing the financial instruments in the jurisdiction of their respective constituent nation.

International financial institutions in which a relevant authority is a shareholder must provide to the designated authorities a control report with each application for payment. They shall also provide to the designated authorities an annual audit report drawn up by their external auditors. Those reporting obligations are without prejudice to the reporting obligations, including as regards the performance of the financial instruments, as set out in Article 46(1) and (2) of this Regulation.]

The Commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports referred to in the third subparagraph of this paragraph.

That implementing act shall be adopted in accordance with the advisory procedure referred to in Article 150(2).

2.Without prejudice to Article 127 of this Regulation and Article 9 of Regulation (EU) No 1306/2013, the bodies responsible for the audit of the programmes shall not carry out audits at the level of F108... international financial institutions in which a [F109relevant authority] is a shareholder, for financial instruments implemented by them.

The bodies responsible for the audit of the programmes shall carry out audits of operations and of management and control systems at the level of other bodies implementing the financial instruments in their respective [F110constituent nation] and at the level of the final recipients provided that the conditions set out in paragraph 3 are fulfilled.

F111...

F1122a.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

3.The bodies responsible for the audit of programmes may conduct audits at the level of final recipients only when one or more of the following situations occur:

(a)supporting documents, providing evidence of the support from the financial instrument to final recipients and of its use for the intended purposes in line with applicable law, are not available at the level of the managing authority or at the level of the bodies that implement financial instruments;

(b)there is evidence that the documents available at the level of the managing authority or at the level of the bodies that implement financial instruments do not represent a true and accurate record of the support provided.

F1134.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.The bodies implementing financial instruments shall be responsible for ensuring that supporting documents are available and shall not impose on final recipients record-keeping requirements that go beyond what is necessary to enable them to fulfil that responsibility.

[F315a.[F114By way of derogation from the second paragraph of Article 56 of Regulation (EU) No 1306/2013, in operations comprising financial instruments, a contribution cancelled in accordance with the first paragraph of Article 56 of Regulation (EU) No 1306/2013, as a result of an individual irregularity, may be reused within the same operation under the following conditions:]

(a)where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the final recipient, the contribution cancelled may be reused only for other final recipients within the same financial instrument;

(b)where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the financial intermediary within a fund of funds, the contribution cancelled may be reused only for other financial intermediaries.

Where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the body implementing funds of funds, or at the level of the body implementing financial instruments where a financial instrument is implemented through a structure without a fund of funds, the contribution cancelled may not be reused within the same operation.

Where a financial correction is made for a systemic irregularity, the contribution cancelled may not be reused for any operation affected by the systemic irregularity.]

Extent Information

E7This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 40WManagement and control of financial instruments

[F3451.[F346The [F347designated authorities] F348... must not carry out on-the-spot verifications at the level of international financial institutions in which a relevant authority is a shareholder, for financial instruments implemented by them.

However, the designated authorities shall carry out checks in accordance with Article 59(1) of Regulation (EU) No 1306/2013 at the level of other bodies implementing the financial instruments in the jurisdiction of their respective constituent nation.

International financial institutions in which a relevant authority is a shareholder must provide to the designated authorities a control report with each application for payment. They shall also provide to the designated authorities an annual audit report drawn up by their external auditors. Those reporting obligations are without prejudice to the reporting obligations, including as regards the performance of the financial instruments, F349... .]

F350...

F350...

2.[F351The] bodies responsible for the audit of the programmes shall not carry out audits at the level of F352... international financial institutions in which a [F353relevant authority] is a shareholder, for financial instruments implemented by them.

The bodies responsible for the audit of the programmes shall carry out audits of operations and of management and control systems at the level of other bodies implementing the financial instruments in their respective [F354constituent nation] and at the level of the final recipients provided that the conditions set out in paragraph 3 are fulfilled.

F355...

F3562a.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

3.The bodies responsible for the audit of programmes may conduct audits at the level of final recipients only when one or more of the following situations occur:

(a)supporting documents, providing evidence of the support from the financial instrument to final recipients and of its use for the intended purposes in line with applicable law, are not available at the level of the managing authority or at the level of the bodies that implement financial instruments;

(b)there is evidence that the documents available at the level of the managing authority or at the level of the bodies that implement financial instruments do not represent a true and accurate record of the support provided.

F3574.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.The bodies implementing financial instruments shall be responsible for ensuring that supporting documents are available and shall not impose on final recipients record-keeping requirements that go beyond what is necessary to enable them to fulfil that responsibility.

F3585a.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E23This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F347Words in Art. 40(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(14)(a)(i)(aa)

F348Words in Art. 40(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(14)(a)(i)(bb)

F349Words in Art. 40(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(14)(a)(ii)

F350Words in Art. 40(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(14)(a)(iii)

F351Word in Art. 40(2) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(14)(b)

F358Art. 40(5a) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(14)(c)

Article 41E+S+N.I. [X1Payment applications including expenditure for financial instruments]

[F701.As regards financial instruments referred to in points (a) and (c) of Article 38(1), and as regards financial instruments referred to in point (b) of Article 38(1) implemented in accordance with points (a), (b) and (c) of the first subparagraph of Article 38(4), phased applications for interim payment shall be made for programme contributions paid to the financial instrument during the eligibility period laid down in Article 65(2) (the ‘eligibility period’) in accordance with the following conditions:]

(a)the amount of the programme contribution paid to the financial instrument included in each application for interim payment submitted during the eligibility period shall not exceed 25 % of the total amount of programme contributions committed to the financial instrument under the relevant funding agreement, corresponding to expenditure within the meaning of points (a), (b) and (d) of Article 42(1) expected to be paid during the eligibility period. Applications for interim payment submitted after the eligibility period shall include the total amount of eligible expenditure within the meaning of Article 42;

(b)each application for interim payment referred to in point (a) of this paragraph may include up to 25 % of the total amount of the national co-financing as referred to in Article 38(9) expected to be paid to the financial instrument, or at the level of final recipients for expenditure in the meaning of points (a), (b) and (d) of Article 42(1), within the eligibility period;

(c)subsequent applications for interim payment submitted during the eligibility period shall only be made:

(i)

[X1for the second application for interim payment, when at least 60 % of the amount included in the first application for interim payment has been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1);]

(ii)

[X1for the third and subsequent applications for interim payment, when at least 85 % of the amounts included in the previous applications for interim payment have been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1);]

[X1(d)each application for interim payment, which includes expenditure related to financial instruments, shall separately disclose the total amount of programme contributions paid to the financial instruments and the amounts paid as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1).]

At closure of a programme, the application for payment of the final balance shall include the total amount of eligible expenditure as referred to in Article 42.

[F702.As regards financial instruments referred to in point (b) of Article 38(1) implemented in accordance with point (d) of the first subparagraph of Article 38(4), the applications for interim payment and for payment of the final balance shall include the total amount of the payments effected by the managing authority for investments in final recipients as referred to in points (a) and (b) of the first subparagraph of Article 42(1).]

[X13.The [F115appropriate authority may make regulations in relation to support for rural development], laying down the rules for withdrawal of payments to financial instruments and consequent adjustments in respect of applications for payment.]

F1164.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Editorial Information

Extent Information

E8This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 41W [X2Payment applications including expenditure for financial instruments]

[F3591.As regards financial instruments referred to in points (a) and (c) of Article 38(1), and as regards financial instruments referred to in point (b) of Article 38(1) implemented in accordance with points (a), (b) and (c) of the first subparagraph of Article 38(4), phased applications for interim payment shall be made for programme contributions paid to the financial instrument F360... in accordance with the following conditions:]

[F361(a)the amount of the programme contribution paid to the financial instrument included in each application for interim payment shall not exceed 25% of the total amount of programme contributions committed to the financial instrument under the relevant funding agreement;]

(b)each application for interim payment referred to in point (a) of this paragraph may include up to 25 % of the total amount of the national co-financing as referred to in Article 38(9) expected to be paid to the financial instrument F362... ;

F363(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[X2(d)each application for interim payment, which includes expenditure related to financial instruments, shall separately disclose the total amount of programme contributions paid to the financial instruments F364....]

F365...

F3662.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[X23.The [F367appropriate authority may make regulations in relation to support for rural development], laying down the rules for withdrawal of payments to financial instruments and consequent adjustments in respect of applications for payment.]

F3684.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E24This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Editorial Information

Textual Amendments

F360Words in Art. 41(1) omitted (26.3.2021 in so far as it relates to domestic support for rural development) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(a)(i)

F361Art. 41(1)(a) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(a)(ii)

F362Words in Art. 41(1)(b) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(a)(iii)

F363Art. 41(1)(c) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(a)(iv)

F364Words in Art. 41(1)(d) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(a)(v)

F365Words in Art. 41(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(a)(vi)

F366Art. 41(2) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(15)(b)

[F117Article 42U.K.Eligible expenditure at closure

1.At closure of a programme, the eligible expenditure of the financial instrument shall be the total amount of programme contributions effectively paid or, in the case of guarantees, committed by the financial instrument within the eligibility period, corresponding to:

(a)payments to final recipients, and in the cases referred to in Article 37(7) payments to the benefit of final recipients;

(b)resources committed for guarantee contracts, whether outstanding or already come to maturity, in order to honour possible guarantee calls for losses, calculated on the basis of a prudent ex ante risk assessment, covering a multiple amount of underlying new loans or other risk-bearing instruments for new investments in final recipients;

(c)capitalised interest rate subsidies or guarantee fee subsidies, due to be paid for a period not exceeding 10 years after the eligibility period, used in combination with financial instruments, paid into an escrow account specifically set up for that purpose, for effective disbursement after the eligibility period, but in respect of loans or other risk-bearing instruments disbursed for investments in final recipients within the eligibility period;

(d)reimbursement of management costs incurred or payment of management fees of the financial instrument.

The [F118appropriate authority may make regulations in relation to support for rural development] laying down the specific rules concerning the establishment of a system of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies referred to in point (c) of the first subparagraph.

2.In the case of equity-based instruments and micro-credit, capitalised management costs or fees due to be paid for a period not exceeding six years after the eligibility period, in respect of investments in final recipients which occurred within the eligibility period, which cannot be covered by Articles 44 or 45, may be considered as eligible expenditure when paid into an escrow account specifically set up for that purpose.

[F703.In the case of equity-based instruments targeting enterprises referred to in Article 37(4) for which the funding agreement referred to in point (b) of Article 38(7) was signed before 31 December 2018, which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement, a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of the eligibility period may be considered as eligible expenditure, when paid into an escrow account specifically set up for that purpose, provided that F119... all of the conditions set out below are fulfilled.]

The amount paid into the escrow account:

(a)shall be used solely for follow-on investments in final recipients having received initial equity investments from the financial instrument within the eligibility period, which are still wholly or partially outstanding;

(b)shall be used solely for follow-on investments to be made in accordance with market standards and market standard contractual arrangements and limited to the minimum necessary to stimulate private sector co-investment, while ensuring continuity of financing for the target enterprises so that both public and private investors can benefit from investments;

(c)shall not exceed 20 % of the eligible expenditure of the equity-based instrument referred to in point (a) of the first subparagraph of paragraph 1 from which ceiling capital resources and gains returned to that equity-based instrument during the eligibility period shall be deducted.

Any amounts paid into the escrow account which are not used for investments in final recipients paid in the period referred to in the first subparagraph shall be used in accordance with Article 45.

[X14.The eligible expenditure disclosed in accordance with paragraphs 1, 2 and 3 shall not exceed the sum of the:]

[X1(a)total amount of [F120support for rural development] paid for the purposes of paragraphs 1, 2 and 3; and]

(b)corresponding national co-financing.

[F705.Where management costs and fees as referred to in point (d) of the first subparagraph of paragraph 1 of this Article and in paragraph 2 of this Article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point (c) of Article 38(1) and points (a), (b) and (c) of the first subparagraph of Article 38(4), they shall not exceed the thresholds defined in [F121legislation made under] paragraph 6 of this Article. Whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure, management fees shall refer to an agreed price for services rendered established via a competitive market process, where applicable. Management costs and fees shall be based on a performance-based calculation methodology.]

Management costs and fees may comprise arrangement fees. Where arrangement fees, or any part thereof, are charged to final recipients, they shall not be declared as eligible expenditure.

Management costs and fees, including those incurred for preparatory work in relation to the financial instrument before the signature of the relevant funding agreement, shall be eligible as from the date of signature of the relevant funding agreement.

6.The [F122appropriate authority may make regulations in relation to support for rural development], laying down the specific rules setting out the criteria for determining management costs and fees on the basis of performance and the applicable thresholds as well as rules for the reimbursement of capitalised management costs and fees for equity-based instruments and micro-credit.]

Editorial Information

Textual Amendments

F117Art. 42 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(16)

Article 43E+S+N.I.Interest and other gains generated by support [F123for rural development] to financial instruments

1.Support [F123for rural development] paid to financial instruments shall be placed in accounts domiciled within financial institutions in [F124the constituent nation] and shall be invested on a temporary basis in accordance with the principles of sound financial management.

[X12.Interest and other gains attributable to support [F123for rural development] paid to financial instruments shall be used for the same purposes, including the reimbursement of management costs incurred or payment of management fees of the financial instrument in accordance with point (d) of the first subparagraph of Article 42(1) and in accordance with Article 42(2) and (3), as the initial support [F123for rural development], either within the same financial instrument or, following the winding up of the financial instrument, in other financial instruments or forms of support in accordance with the specific objectives set out under a priority, until the end of the eligibility period.]

3.The managing authority shall ensure that adequate records of the use of interest and other gains are maintained.

Editorial Information

Extent Information

E9This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 43WInterest and other gains generated by support [F369for rural development] to financial instruments

1.Support [F369for rural development] paid to financial instruments shall be placed in accounts domiciled within financial institutions in [F370the constituent nation] and shall be invested on a temporary basis in accordance with the principles of sound financial management.

[F3712.Interest and other gains attributable to support for rural development paid to financial instruments shall be used for the same purposes, including the reimbursement of management costs incurred or payment of management fees of the financial instrument as the initial support for rural development either within the same financial instrument or, following the winding up of the financial instrument, in other financial instruments or forms of support in accordance with the specific objectives set out under a priority, until the end of the eligibility period.]

3.The managing authority shall ensure that adequate records of the use of interest and other gains are maintained.

Extent Information

E25This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F371Art. 43(2) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(17)

[F31Article 43aU.K. Differentiated treatment of investors

1.Support [F125for rural development] to financial instruments invested in final recipients and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by those investments, which are attributable to the support [F125for rural development], may be used for differentiated treatment of investors operating under the market economy principle, F126... . Such differentiated treatment shall be justified by the need to attract private counterpart resources and to leverage public funding.

2.The assessments referred to in Articles 37(2) F127... shall include, as appropriate, an assessment of the need for, and the extent of, differentiated treatment as referred to in paragraph 1 of this Article and/or a description of the mechanisms which will be used to establish the need for, and extent of, such differentiated treatment.

3.The differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources. It shall not over-compensate investors operating under the market economy principle, F128.... The alignment of interest shall be ensured through an appropriate sharing of risk and profit.

F1294.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

[F70Article 44W[F130Re-use of resources attributable to the support from the ESI Funds until the end of the eligibility period][F130Re-use of resources attributable to the support for rural development]

1.Without prejudice to Article 43a, resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts, including capital repayments and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by investments, which are attributable to [F131support for rural development], shall be re-used for the following purposes, up to the amounts necessary and in the order agreed in the relevant funding agreements:

(a)further investments through the same or other financial instruments, in accordance with the specific objectives set out under a priority;

(b)where applicable, to cover the losses in the nominal amount [F132contribution from support for rural development] to the financial instrument resulting from negative interest, if such losses occur despite active treasury management by the bodies implementing financial instruments;

(c)where applicable, reimbursement of management costs incurred and payment of management fees of the financial instrument.]

[X12.The managing authority shall ensure that adequate records of the re-use of the resources referred to in paragraph 1 are maintained.]

Editorial Information

Textual Amendments

F130Art. 44 heading substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(18)

[X1Article 45E+S+N.I. Re-use of resources after the end of the eligibility period

[F133The relevant authority] shall adopt the necessary measures to ensure that resources paid back to financial instruments, including capital repayments and gains and other earnings or yields generated during a period of at least eight years after the end of the eligibility period, which are attributable to [F134support for rural development] to financial instruments pursuant to Article 37, are re-used in accordance with the aims of the programme or programmes, either within the same financial instrument or, following the exit of those resources from the financial instrument, in other financial instruments provided that, in both cases, an assessment of market conditions demonstrates a continuing need for such investment, or in other forms of support.]

Editorial Information

Extent Information

E10This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

[X3Article 45W [F372Re-use of resources ]

[F373The relevant authority] shall adopt the necessary measures to ensure that resources paid back to financial instruments, including capital repayments and gains and other earnings or yields generated during a period of at least eight years F374..., which are attributable to [F375support for rural development] to financial instruments pursuant to Article 37, are re-used in accordance with the aims of the programme F376..., either within the same financial instrument or, following the exit of those resources from the financial instrument, in other financial instruments provided that, in both cases, an assessment of market conditions demonstrates a continuing need for such investment, or in other forms of support.]

Extent Information

E26This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Editorial Information

Textual Amendments

F372Art. 45 heading substituted (26.3.2021 in so far as it relates to domestic support for rural development) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(19)(a)

F374Words in Art. 45 omitted (26.3.2021 in so far as it relates to domestic support for rural development) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(19)(b)

F376Words in Art. 45 omitted (26.3.2021 in so far as it relates to domestic support for rural development) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(19)(c)

[F135Article 46U.K.Report on implementation of financial instruments

1.The managing authority shall send to the [F136Programme Monitoring Committee] a specific report covering the operations comprising financial instruments as an annex to the annual implementation report.

2.The specific report referred to in paragraph 1 shall include, for each financial instrument, the following information:

(a)identification of the programme and of the priority or measure from which support [F137for rural development] is provided;

(b)description of the financial instrument and implementation arrangements;

[F70(c)identification of the bodies implementing financial instruments, and the bodies implementing funds of funds where applicable, as referred to under points (a), (b) and (c) of Article 38(1);]

(d)total amount of programme contributions by priority or measure paid to the financial instrument;

(e)total amount of support paid to the final recipients or to the benefit of final recipients, or committed in guarantee contracts by the financial instrument for investments in final recipients, as well as management costs incurred or management fees paid, by programme and priority or measure;

(f)the performance of the financial instrument including progress in its set-up and in selection of bodies implementing the financial instrument, including the body implementing a fund of funds;

[F70(g)interest and other gains generated by support [F137for rural development] to the financial instrument and programme resources paid back to financial instruments from investments as referred to in Articles 43 and 44 and amounts used for differentiated treatment as referred to in Article 43a;

(h)progress in achieving the expected leverage effect of investments made by the financial instrument;]

(i)the value of equity investments, with respect to previous years;

(j)contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned.

The information in points (h) and (j) of the first subparagraph may be included only in the annex to the annual implementation reports submitted in 2017 and 2019 as well as in the final implementation report. The reporting obligations set out in points (a) to (j) of the first subparagraph shall not be applied at the level of final recipients.

[F1383.The appropriate authority may make regulations in relation to rural development setting out the models to be used when reporting on financial instruments to the monitoring committee.]

F1394.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

TITLE VU.K.MONITORING AND EVALUATION

CHAPTER IU.K.Monitoring

Section IU.K.Monitoring of programmes

[F135Article 47U.K.Monitoring committee

[F1401.The Managing Authority must agree with a Programme Monitoring Committee, set up in accordance with the institutional, legal and financial framework of the constituent nation, on the monitoring and implementation of the programme.]

2.Each monitoring committee shall draw up and adopt its rules of procedure in accordance with the institutional, legal and financial framework of the [F141constituent nation] concerned.

F1423.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

[F135Article 48U.K.Composition of the monitoring committee

1.The composition of the monitoring committee shall be decided by the [F143Managing Authority], provided that the monitoring committee is composed of representatives of the relevant F144... authorities and intermediate bodies and of representatives of the partners referred to in Article 5. Representatives of the partners shall be delegated to be part of the monitoring committee by the respective partners through transparent processes. Each member of the monitoring committee may have a voting right.

F145...

2.The list of the members of the monitoring committee shall be published.

F1463.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1464.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.The monitoring committee shall be chaired by a representative of the [F147constituent nation] or of the managing authority.]

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

[F135Article 49U.K.Functions of the monitoring committee

1.The monitoring committee shall meet at least once a year and shall review implementation of the programme and progress made towards achieving its objectives. In doing so, it shall have regard to the financial data, common and programme-specific indicators, including changes in the value of result indicators and progress towards quantified target values F148... and, where relevant, the results of qualitative analyses.

[X12.The monitoring committee shall examine all issues that affect the performance of the programme, including the conclusions of the performance review.]

3.The monitoring committee shall be consulted and shall, if it considers it to be appropriate, give an opinion on any amendment of the programme proposed by the managing authority.

[F704.The monitoring committee may make observations to the managing authority regarding implementation and evaluation of the programme including actions related to the reduction of the administrative burden on beneficiaries. It may also make observations on the visibility of support [F149for rural development] and on raising awareness about the results of such support. It shall monitor actions taken as a result of its observations.]]

Editorial Information

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

[F135Article 50U.K.Implementation reports

[F1501.Until and including [F1512023][F1512024], each Managing Authority must submit to the Programme Monitoring Committee an annual report on implementation of the programme in the previous financial year by the deadline established in the Fund-specific rules.]

2.Annual implementation reports shall set out key information on implementation of the programme and its priorities by reference to the financial data, common and programme-specific indicators and quantified target values, including changes in the value of result indicators where appropriateF152.... The data transmitted shall relate to values for indicators for fully implemented operations and also, where possible, having regard to the stage of implementation, for selected operations. They shall also set out a synthesis of the findings of all evaluations of the programme that have become available during the previous financial year, any issues which affect the performance of the programme, and the measures taken. The annual implementation report to be submitted in 2016 may also set out, where relevant, actions taken to fulfil ex ante conditionalities.

F1533.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.The annual implementation report to be submitted in 2017 shall set out and assess the information referred to in paragraph 2 and progress made towards achieving the objectives of the programme, including the contribution of [F154support for rural development] to changes in the value of result indicators, when evidence is available from relevant evaluations. That annual implementation report shall set out the actions taken to fulfil the ex-ante conditionalities not fulfilled at the time of adoption of the programmes. It shall also assess the implementation of actions to take into account the principles set out in Articles 7 and 8, the role of the partners referred to in Article 5 in the implementation of the programme and report on support used for climate change objectives.

[X15.The annual implementation report to be submitted in 2019 and the final implementation report for [F154support for rural development] shall, in addition to the information and assessment referred to in paragraphs 2 and 4, include information on, and assess progress towards, achieving the objectives of the programme F155... .]

6.In order to be deemed admissible, the annual implementation reports referred to in paragraphs 1 to 5 shall contain all the information required in those paragraphs and in the Fund-specific rules.

F156...

F1577.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1578.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.The annual and final implementation reports, as well as a summary for citizens of their content, shall be made available to the public.]

Editorial Information

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

F158Article 51U.K.Annual review meeting

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Textual Amendments

Section IIU.K.Strategic progress

F159Article 52U.K.Progress report

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Textual Amendments

F160Article 53U.K.Reporting by the Commission and debate on the ESI Funds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

CHAPTER IIU.K.Evaluation

[F135Article 54U.K.General Provisions

1.Evaluations shall be carried out to improve the quality of the design and implementation of programmes, as well as to assess their effectiveness, efficiency and impact. The impact of programmes shall be evaluated, in the light of the mission of [F161support for rural development], F162... , having regard to the size of the programme, in relation to GDP and unemployment in the programme area concerned, where appropriate.

2.[F163The relevant authority] shall provide the resources necessary for carrying out evaluations, and shall ensure that procedures are in place to produce and collect the data necessary for evaluations, including data related to common and where appropriate programme-specific indicators.

3.Evaluations shall be carried out by internal or external experts that are functionally independent of the authorities responsible for programme implementation. F164....

4.All evaluations shall be made available to the public.]

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

F165Article 55U.K.Ex ante evaluation

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Textual Amendments

[F135Article 56U.K.Evaluation during the programming period

1.An evaluation plan shall be drawn up by the managing authority or [F166the relevant authority] and may cover more than one programme. It shall be submitted in accordance with the Fund-specific rules.

2.[F167The relevant authority] shall ensure that appropriate evaluation capacity is available.

3.During the programming period, the managing authority shall ensure that evaluations, including evaluations to assess effectiveness, efficiency and impact, are carried out for each programme on the basis of the evaluation plan and that each evaluation is subject to appropriate follow-up in accordance with the Fund-specific rules. At least once during the programming period, an evaluation shall assess how [F168support for rural development] has contributed to the objectives for each priority. All evaluations shall be examined by the monitoring committee F169....

F1704.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1715.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

F172Article 57U.K.Ex post evaluation

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Textual Amendments

TITLE VIU.K.TECHNICAL ASSISTANCE

F173Article 58U.K.Technical assistance at the initiative of the Commission

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Textual Amendments

[F135Article 59U.K.Technical assistance at the initiative of the Member States

1.At the initiative of a [F174relevant authority], [F175support for rural development] may support actions for preparation, management, monitoring, evaluation, information and communication, networking, complaint resolution, and control and audit. [F176Support for rural development ] may be used by the [F174relevant authority] to support actions for the reduction of the administrative burden on beneficiaries, including electronic data exchange systems, and actions to reinforce the capacity of [F174relevant authority]F177... and beneficiaries to administer and use those Funds. [F176Support for rural development] may also be used to support actions to reinforce the capacity of relevant partners in line with point (e) of Article 5(3) and to support exchange of good practices between such partners. The actions referred to in this paragraph may concern previous and subsequent programming periods.

[F1781a.Any programme may support technical assistance operations eligible under any other programme.]

2.The Fund-specific rules may add or exclude actions which may be financed by the technical assistance [F179under any programme].

[F313.Without prejudice to paragraph 2, [F180the relevant authority] may implement actions referred to in paragraph 1 through the direct award of a contract to:

F181(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)an international financial institution in which a [F182relevant authority] is a shareholder;

(c)a publicly-owned bank or institution, as referred to in point (b)(iii) of the first subparagraph of Article 38(4).]]

Textual Amendments

F135Arts. 46-59 omitted (W.) in so far as relate to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(20)

TITLE VIIU.K.FINANCIAL SUPPORT FROM THE ESI FUNDS

CHAPTER IU.K.Support from the ESI Funds

F183Article 60U.K.Determination of co-financing rates

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Textual Amendments

Article 61E+S+N.I.Operations generating net revenue after completion

[F701.This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article, ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation, with the exception of cost-savings resulting from the implementation of energy efficiency measures, shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.]

Where not all the investment cost is eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the investment cost.

2.The eligible expenditure of the operation to be co-financed from [F184support for rural development] shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after its completion.

3.The potential net revenue of the operation shall be determined in advance by one of the following methods chosen by the managing authority for a sector, subsector or type of operation:

(a)application of a flat rate net revenue percentage for the sector or subsector applicable to the operation as defined in Annex V or in any of the delegated acts referred to in the second, third and fourth subparagraphs;

[F31(aa)application of a flat rate net revenue percentage established by a [F185relevant authority] for a sector or subsector not covered by point (a). Before the application of the flat rate the responsible audit authority shall verify that the flat rate has been established according to a fair, equitable and verifiable method based on historical data or objective criteria;]

(b)calculation of the discounted net revenue of the operation, taking into account the reference period appropriate to the sector or subsector applicable to the operation, the profitability normally expected of the category of investment concerned, the application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the [F185relevant authority] or region concerned.

The [F186appropriate authority may make regulations] in duly justified cases to amend Annex V by adjusting the flat rates established therein taking into account historical data, the potential for cost recovery and the polluter-pays principle where applicable.

F187...

In addition, the [F188appropriate authority may make regulations] in duly justified cases with regard to adding sectors or subsectors, including subsectors for sectors in Annex V, falling under the thematic objectives defined in the first paragraph of Article 9 and [F189funded by support for rural development].

Where the method referred to in point (a) of the first subparagraph is applied, all the net revenue generated during implementation and after completion of the operation shall be considered to be taken into account by the application of the flat rate and shall therefore not be deducted subsequently from the eligible expenditure of the operation.

When a flat rate for a new sector or subsector has been established by [F190legislation in accordance with the fourth subparagraph], a managing authority may choose to apply the method set out in point (a) of the first subparagraph for new operations in relation to the sector or subsector concerned.

The [F191appropriate authority may make regulations], laying down the method referred to in point (b) of the first subparagraph. Where that method is applied, the net revenue generated during implementation of the operation, resulting from sources of revenue not taken into account in determining the potential net revenue of the operation, shall be deducted from the eligible expenditure of the operation, no later than in the final payment claim submitted by the beneficiary.

F1924.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F705.As an alternative to the application of the methods laid down in paragraph 3 of this Article, the maximum co-financing rate referred to in Article 60(1) may, at the request of a [F185relevant authority], be decreased for a priority or measure under which all supported operations could apply a uniform flat rate in accordance with point (a) of the first subparagraph of paragraph 3 of this Article. The decrease shall be not less than the amount calculated by multiplying the maximum [F193core contribution] applicable under the Fund-specific rules by the relevant flat rate referred to in that point.]

6.Where it is objectively not possible to determine the revenue in advance based on any of the methods set out in paragraphs 3 or 5, the net revenue generated within three years of the completion of an operation, or by the deadline for the submission of documents for programme closure fixed in the Fund-specific rules, whichever is the earlier, shall be deducted from the expenditure declared to the [F194relevant authority].

7.Paragraphs 1 to 6 shall not apply to:

F195(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed [F196EUR 1 000 000][F196GBP 833,333];

(c)repayable assistance subject to an obligation for full repayment and prizes;

(d)technical assistance;

(e)support to or from financial instruments;

(f)operations for which public support takes the form of lump sums or standard scale unit costs;

(g)operations implemented under a joint action plan;

[F70(h)operations for which amounts or rates of support are defined in Annex II to [F197Regulation (EU) No 1305/2013] or in the EMFF Regulation.]

Notwithstanding point (b) of the first subparagraph of this paragraph, where a [F185relevant authority] applies paragraph 5, it may include in the relevant priority or measure operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed [F196EUR 1 000 000][F196GBP 833,333].

F1988.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E11This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 61WOperations generating net revenue after completion

[F3771.This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article, ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation, with the exception of cost-savings resulting from the implementation of energy efficiency measures, shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.]

Where not all the investment cost is eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the investment cost.

2.The eligible expenditure of the operation to be co-financed from [F378support for rural development] shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after its completion.

3.The potential net revenue of the operation shall be determined in advance by one of the following methods chosen by the managing authority for a sector, subsector or type of operation:

(a)application of a flat rate net revenue percentage for the sector or subsector applicable to the operation as defined in Annex V or in any of the delegated acts referred to in the second, third and fourth subparagraphs;

[F379(aa)application of a flat rate net revenue percentage established by a [F380relevant authority] for a sector or subsector not covered by point (a). Before the application of the flat rate the responsible audit authority shall verify that the flat rate has been established according to a fair, equitable and verifiable method based on historical data or objective criteria;]

(b)calculation of the discounted net revenue of the operation, taking into account the reference period appropriate to the sector or subsector applicable to the operation, the profitability normally expected of the category of investment concerned, the application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the [F380relevant authority] or region concerned.

The [F381appropriate authority may make regulations] in duly justified cases to amend Annex V by adjusting the flat rates established therein taking into account historical data, the potential for cost recovery and the polluter-pays principle where applicable.

F382...

In addition, the [F383appropriate authority may make regulations] in duly justified cases with regard to adding sectors or subsectors F384....

Where the method referred to in point (a) of the first subparagraph is applied, all the net revenue generated during implementation and after completion of the operation shall be considered to be taken into account by the application of the flat rate and shall therefore not be deducted subsequently from the eligible expenditure of the operation.

When a flat rate for a new sector or subsector has been established by [F385legislation in accordance with the fourth subparagraph], a managing authority may choose to apply the method set out in point (a) of the first subparagraph for new operations in relation to the sector or subsector concerned.

The [F386appropriate authority may make regulations], laying down the method referred to in point (b) of the first subparagraph. Where that method is applied, the net revenue generated during implementation of the operation, resulting from sources of revenue not taken into account in determining the potential net revenue of the operation, shall be deducted from the eligible expenditure of the operation, no later than in the final payment claim submitted by the beneficiary.

F3874.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3885.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Where it is objectively not possible to determine the revenue in advance based on any of the methods set out in [F389paragraph 3], the net revenue generated within three years of the completion of an operation F390... shall be deducted from the expenditure declared to the [F391relevant authority].

7.Paragraphs 1 to 6 shall not apply to:

F392(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed [F393£1,000,000];

(c)repayable assistance subject to an obligation for full repayment and prizes;

F394(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)support to or from financial instruments;

(f)operations for which public support takes the form of lump sums or standard scale unit costs;

(g)operations implemented under a joint action plan;

F395(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F396...

F3978.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E27This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F384Words in Art. 61(3) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(a)

F388Art. 61(5) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(b)

F389Words in Art. 61(6) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(c)(i)

F390Words in Art. 61(6) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(c)(ii)

F393Sum in Art. 61(7)(b) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(i)

F394Art. 61(7)(d) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(ii)

F395Art. 61(7)(h) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(iii)

F396Words in Art. 61(7) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(iv)

CHAPTER IIW[F199Special rules on support from the ESI Funds to PPPs][F199Special rules on support to PPPs]

Article 62U.K.PPPs

[F200Support for rural development] may be used to support PPP operations. Such PPP operations shall comply with applicable law, in particular concerning F201... public procurement.

Textual Amendments

Article 63U.K.Beneficiary under PPP operations

1.In relation to a PPP operation, and by way of derogation from point (10) of Article 2, a beneficiary may be either:

(a)the public law body initiating the operation; or

(b)a body governed by private law of [F202a relevant authority] (the "private partner") selected or to be selected for the implementation of the operation.

2.The public law body initiating the PPP operation may propose that the private partner, to be selected after approval of the operation, be the beneficiary for the purposes of support from [F203support for rural development]. In that event, the approval decision shall be conditional on the managing authority satisfying itself that the selected private partner fulfils and assumes all the corresponding obligations of a beneficiary under this Regulation.

3.The private partner selected to implement the operation may be replaced as beneficiary during implementation where this is required under the terms and conditions of the PPP or the financing agreement between the private partner and the financial institution co-financing the operation. In that event the replacement private partner or public law body shall become the beneficiary provided that the managing authority satisfies itself that the replacement partner fulfils and assumes all the corresponding obligations of a beneficiary under this Regulation.

4.The [F204appropriate authority may make regulations] laying down additional rules on the replacement of a beneficiary and on the related responsibilities.

5.The replacement of a beneficiary shall not be considered a change in ownership within the meaning of point (b) of Article 71(1) if that replacement satisfies the applicable conditions set out in paragraph 3 of this Article and in [F205regulations made] pursuant to paragraph 4 of this Article.

Textual Amendments

Article 64U.K.Support for PPP operations

[X11.In the case of a PPP operation where the beneficiary is a public law body, expenditure under a PPP operation which has been incurred and paid by the private partner may [F206, by way of derogation from Article 65(2),] be considered as incurred and paid by a beneficiary and [F207eligible for support for rural development] provided that the following conditions are met:]

(a)the beneficiary has entered into a PPP agreement with a private partner;

(b)the managing authority has verified that the expenditure declared by the beneficiary has been paid by the private partner and that the operation complies with applicable F208... national law, the programme and the conditions for support of the operation.

[X12.Payments to beneficiaries made in respect of expenditure F209... in accordance with paragraph 1 shall be paid into an escrow account set up for that purpose in the name of the beneficiary.]

3.The funds paid into the escrow account referred to in paragraph 2 shall be used for payments in accordance with the PPP agreement, including any payments to be made in the event of termination of the PPP agreement.

4.The [F210appropriate authority may make regulations] laying down the minimum requirements to be included in PPP agreements which are necessary for the application of the derogation laid down in paragraph 1 of this Article, including provisions related to termination of the PPP agreement and for the purpose of ensuring an adequate audit trail.

Editorial Information

Textual Amendments

F206Words in Art. 64(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(23)

Textual Amendments

F199Pt. 2 Title 7 Ch. 2 heading substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(22)

CHAPTER IIIU.K.Eligibility of expenditure and durability

Article 65E+N.I.Eligibility

1.The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the Fund-specific rules.

2.Expenditure shall be eligible for a contribution from [F211support for rural development] if it has been incurred by a beneficiary and paid between the date of submission of the programme to the Commission or from 1 January 2014, whichever is earlier, and 31 December 2023. In addition, expenditure shall only be eligible for [F212support for rural development] if the relevant aid is actually paid by the paying agency between 1 January 2014 and 31 December 2023.

F2133.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.In the case of costs reimbursed pursuant to points (b) and (c) of the first subparagraph of Article 67(1), the actions constituting the basis for reimbursement shall be carried out between 1 January 2014 and 31 December 2023.

F2145.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Operations shall not be selected for support by [F215support for rural development] where they have been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all related payments have been made by the beneficiary.

F2167.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.This paragraph shall apply to operations which generate net revenue during their implementation and to which paragraphs 1 to 6 of Article 61 do not apply.

The eligible expenditure of the operation [F217receiving support for rural development] shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

This paragraph shall not apply to:

(a)technical assistance;

(b)financial instruments;

(c)repayable assistance subject to an obligation for full repayment;

(d)prizes;

F218(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)operations for which public support takes the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account ex ante;

(g)operations implemented under a joint action plan provided that the net revenue has been taken into account ex ante;

[F70(h)operations for which amounts or rates of support are defined in Annex II to [F219Regulation (EU) No 1305/2013] or in the EMFF Regulation with the exception of those operations for which reference is made to this paragraph in the EMFF Regulation; or]

[F70(i)operations for which the total eligible cost does not exceed EUR 100 000.]

For the purposes of this Article and Article 61, any payment received by the beneficiary arising from contractual penalties as a result of a breach of contract between the beneficiary and a third party or third parties or that has occurred as a result of the withdrawal of an offer by a third party chosen under public procurement rules (the 'deposit') shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

9.Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of submission to the [F220relevant authority] of the request for amendment F221....

The Fund-specific rules for the EMFF may derogate from the first subparagraph.

10.By way of derogation from paragraph 9, specific provisions on the starting date of eligibility may be established in [F222Regulation (EU) No 1305/2013].

[F83By way of derogation from paragraph 9, expenditure for operations for fostering crisis response capacities in the context of the COVID-19 outbreak shall be eligible as of 1 February 2020.]

[F22311.An operation may receive support for rural development or from one or more programmes and from CMO support or direct payment support or support under other retained direct EU legislation, provided that the expenditure declared is not declared more than once.]

Extent Information

E12This version of this provision applies to England and Northern Ireland only; separate versions have been created for Scotland and Wales

Textual Amendments

Article 65SEligibility

1.The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the Fund-specific rules.

[F3982.Expenditure is eligible for support for rural development if it has been incurred by a beneficiary and paid between 1 January 2021 and 31 December 2024.]

F3993.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.In the case of costs reimbursed pursuant to points (b) and (c) of the first subparagraph of Article 67(1), the actions constituting the basis for reimbursement shall be carried out between 1 January [F4002021] and 31 December [F4012024].

F4025.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Operations shall not be selected for support by [F403support for rural development] where they have been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all related payments have been made by the beneficiary.

F4047.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.This paragraph shall apply to operations which generate net revenue during their implementation and to which paragraphs 1 to 6 of Article 61 do not apply.

The eligible expenditure of the operation [F405receiving support for rural development] shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

This paragraph shall not apply to:

(a)technical assistance;

(b)financial instruments;

(c)repayable assistance subject to an obligation for full repayment;

(d)prizes;

F406(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)operations for which public support takes the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account ex ante;

(g)operations implemented under a joint action plan provided that the net revenue has been taken into account ex ante;

[F407(h)operations for which amounts or rates of support are defined in Annex II to [F408Regulation (EU) No 1305/2013] or in the EMFF Regulation with the exception of those operations for which reference is made to this paragraph in the EMFF Regulation; or]

[F407(i)operations for which the total eligible cost does not exceed [F409GBP 83,333].]

For the purposes of this Article and Article 61, any payment received by the beneficiary arising from contractual penalties as a result of a breach of contract between the beneficiary and a third party or third parties or that has occurred as a result of the withdrawal of an offer by a third party chosen under public procurement rules (the 'deposit') shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

9.Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of [F410adoption of that amendment by the Scottish Ministers.]

The Fund-specific rules for the EMFF may derogate from the first subparagraph.

10.By way of derogation from paragraph 9, specific provisions on the starting date of eligibility may be established in [F411Regulation (EU) No 1305/2013].

[F412By way of derogation from paragraph 9, expenditure for operations for fostering crisis response capacities in the context of the COVID-19 outbreak shall be eligible as of 1 February 2020.]

[F41311.An operation may receive support for rural development or from one or more programmes and from CMO support or direct payment support or support under other retained direct EU legislation, provided that the expenditure declared is not declared more than once.]

Extent Information

E28This version of this provision extends to Scotland only; a separate version has been created for England and Wales and Northern Ireland

Textual Amendments

Article 65WEligibility

1.The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the [F414rural development] rules.

F4152.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4163.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4174.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4185.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Operations shall not be selected for support by [F419support for rural development] where they have been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all related payments have been made by the beneficiary.

F4207.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.This paragraph shall apply to operations which generate net revenue during their implementation and to which paragraphs 1 to 6 of Article 61 do not apply.

The eligible expenditure of the operation [F421receiving support for rural development] shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

This paragraph shall not apply to:

F422(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)financial instruments;

(c)repayable assistance subject to an obligation for full repayment;

(d)prizes;

F423(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)operations for which public support takes the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account F424...;

(g)operations implemented under a joint action plan provided that the net revenue has been taken into account F425...;

F426(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F427(i)operations for which the total eligible cost does not exceed EUR 100 000.]

For the purposes of this Article and Article 61, any payment received by the beneficiary arising from contractual penalties as a result of a breach of contract between the beneficiary and a third party or third parties or that has occurred as a result of the withdrawal of an offer by a third party chosen under public procurement rules (the 'deposit') shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

9.Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of submission to the [F428relevant authority] of the request for amendment F429....

F430...

10.By way of derogation from paragraph 9, specific provisions on the starting date of eligibility may be established in [F431Regulation (EU) No 1305/2013].

F432...

[F43311.An operation may receive support for rural development or from one or more programmes and from CMO support F434... or support under other retained direct EU legislation, provided that the expenditure declared is not declared more than once.]

Extent Information

E29This version of this provision applies to Wales only; separate versions have been created for England, Scotland and Northern Ireland

Textual Amendments

F414Words in Art. 65(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(a)

F415Art. 65(2) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(b)

F417Art. 65(4) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(c)

F422Art. 65(8)(a) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(d)(i)

F424Words in Art. 65(8)(f) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(d)(ii)

F425Words in Art. 65(8)(g) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(d)(iii)

F426Art. 65(8)(h) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(d)(iv)

F430Words in Art. 65(9) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(e)

F432Words in Art. 65(10) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(f)

F434Words in Art. 65(11) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(24)(g)

Article 66U.K.Forms of support

[F224Support for rural development may be provided] in the form of grants, prizes, repayable assistance and financial instruments, or a combination thereof.

In the case of repayable assistance, the support repaid to the body that provided it, [F225or to another competent authority F226... ,] shall be kept in a separate account or separated with accounting codes and reused for the same purpose or in accordance with the objectives of the programme.

Textual Amendments

F225Words in Art. 66 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(25)

Article 67E+S+N.I.Forms of grants and repayable assistance

1.Grants and repayable assistance may take any of the following forms:

(a)reimbursement of eligible costs actually incurred and paid, together with, where applicable, contributions in kind and depreciation;

(b)standard scales of unit costs;

[F70(c)lump sums;]

(d)flat-rate financing, determined by the application of a percentage to one or more defined categories of costs[F70;]

[F31(e)financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes as set out in [F227legislation made under] paragraph 5a.]

Fund-specific rules may limit the forms of grants or repayable assistance applicable to certain operations.

[F31For the form of financing referred to in point (e) of the first subparagraph, the audit shall exclusively aim at verifying that the conditions for reimbursement have been fulfilled.]

2.By way of derogation from paragraph 1, additional forms of grants and methods of calculation may be established in the EMFF Regulation.

[F312a.F228...

Where flat-rate financing is used, the categories of costs to which the flat rate is applied may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1.

For operations [F229receiving support for rural development], where the flat rate referred to in Article 68b(1) is used, the allowances and the salaries paid to participants may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1 of this Article.

F228...]

3.The options referred to in paragraph 1 may be combined only where each option covers different categories of costs or where they are used for different projects forming a part of an operation or for successive phases of an operation.

[F704.Where an operation or a project forming a part of an operation is implemented exclusively through the public procurement of works, goods or services, only points (a) and (e) of the first subparagraph of paragraph 1 shall apply. Where the public procurement within an operation or project forming part of an operation is limited to certain categories of costs, all the options referred to in paragraph 1 may be applied for the whole operation or project forming a part of an operation.]

5.The amounts referred to in points (b), (c) and (d) of the first subparagraph of paragraph 1 shall be established in one of the following ways:

[F70(a)a fair, equitable and verifiable calculation method based on any of the following:

(i)

statistical data, other objective information or an expert judgement;

(ii)

the verified historical data of individual beneficiaries;

(iii)

the application of the usual cost accounting practices of individual beneficiaries;]

[F31(aa)a draft budget established on a case-by-case basis and agreed ex ante by the managing authority, or in the case of [F230support for rural development] the authority responsible for the selection of operations, where the public support does not exceed [F231EUR 100 000][F231GBP 83,333];]

F232(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in accordance with the rules for application of corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by [F233the relevant authority] for a similar type of operation and beneficiary;

(d)rates established by this Regulation or the Fund-specific rules;

(e)specific methods for determining amounts established in accordance with the Fund-specific rules.

[F315a.The [F234appropriate authority may make regulations] supplementing this Regulation with regard to the definition of the standard scales of unit costs or the flat-rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1 of this Article, the related methods referred to in point (a) of paragraph 5 of this Article and the form of support referred to in point (e) of the first subparagraph of paragraph 1 of this Article, by specifying detailed modalities concerning the financing conditions and their application.]

6.The document setting out the conditions for support for each operation shall set out the method to be applied for determining the costs of the operation and the conditions for payment of the grant.

Extent Information

E13This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 67WForms of grants and repayable assistance

1.Grants and repayable assistance may take any of the following forms:

(a)reimbursement of eligible costs actually incurred and paid, together with, where applicable, contributions in kind and depreciation;

(b)standard scales of unit costs;

[F435(c)lump sums;]

(d)flat-rate financing, determined by the application of a percentage to one or more defined categories of costs[F435;]

[F436(e)financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes as set out in [F437legislation made under] paragraph 5a.]

[F438Rules may limit the forms of grants or repayable assistance applicable to certain operations.]

[F436For the form of financing referred to in point (e) of the first subparagraph, the audit shall exclusively aim at verifying that the conditions for reimbursement have been fulfilled.]

F4392.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4362a.F440...

Where flat-rate financing is used, the categories of costs to which the flat rate is applied may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1.

For operations [F441receiving support for rural development], where the flat rate referred to in Article 68b(1) is used, the allowances and the salaries paid to participants may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1 of this Article.

F440...]

3.The options referred to in paragraph 1 may be combined only where each option covers different categories of costs or where they are used for different projects forming a part of an operation or for successive phases of an operation.

[F4354.Where an operation or a project forming a part of an operation is implemented exclusively through the public procurement of works, goods or services, only points (a) and (e) of the first subparagraph of paragraph 1 shall apply. Where the public procurement within an operation or project forming part of an operation is limited to certain categories of costs, all the options referred to in paragraph 1 may be applied for the whole operation or project forming a part of an operation.]

5.The amounts referred to in points (b), (c) and (d) of the first subparagraph of paragraph 1 shall be established in one of the following ways:

[F435(a)a fair, equitable and verifiable calculation method based on any of the following:

(i)

statistical data, other objective information or an expert judgement;

(ii)

the verified historical data of individual beneficiaries;

(iii)

the application of the usual cost accounting practices of individual beneficiaries;]

[F436(aa)a draft budget established on a case-by-case basis and agreed F442... by the managing authority, or in the case of [F443support for rural development] the authority responsible for the selection of operations, where the public support does not exceed [F444£100 000];]

F445(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in accordance with the rules for application of corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by [F446the relevant authority] for a similar type of operation and beneficiary;

(d)rates established by this Regulation F447...;

(e)specific methods for determining amounts established F448....

[F4365a.The [F449appropriate authority may make regulations] supplementing this Regulation with regard to the definition of the standard scales of unit costs or the flat-rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1 of this Article, the related methods referred to in point (a) of paragraph 5 of this Article and the form of support referred to in point (e) of the first subparagraph of paragraph 1 of this Article, by specifying detailed modalities concerning the financing conditions and their application.]

6.The document setting out the conditions for support for each operation shall set out the method to be applied for determining the costs of the operation and the conditions for payment of the grant.

Extent Information

E30This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F438Words in Art. 67(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(26)(a)

F439Art. 67(2) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(26)(b)

F442Words in Art. 67(5)(aa) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(26)(c)(i)(aa)

F444Sum in Art. 67(5)(aa) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(26)(c)(i)(bb)

F447Words in Art. 67(5)(d) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(26)(c)(ii)

F448Words in Art. 67(5)(e) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(26)(c)(iii)

[F70Article 68U.K. Flat-rate financing for indirect costs concerning grants and repayable assistance

Where the implementation of an operation gives rise to indirect costs, they may be calculated at a flat rate in one of the following ways:

(a)

a flat rate of up to 25 % of eligible direct costs, provided that the rate is calculated on the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the [F235relevant authority] for a similar type of operation and beneficiary;

(b)

a flat rate of up to 15 % of eligible direct staff costs without there being a requirement for the [F235relevant authority] to perform a calculation to determine the applicable rate;

(c)

a flat rate applied to eligible direct costs based on existing methods and corresponding rates, applicable in F236... policies for a similar type of operation and beneficiary.

The [F237appropriate authority may make regulations] to supplement the provisions on the flat rate and the related methods referred to in point (c) of the first subparagraph of this paragraph.]

Textual Amendments

[F31Article 68aU.K. Staff costs concerning grants and repayable assistance

1.Direct staff costs of an operation may be calculated at a flat rate of up to 20 % of the direct costs other than the staff costs of that operation. F238[F239The relevant authority] shall not be required to perform a calculation to determine the applicable rate provided that the direct costs of the operation do not include public works contracts which exceed in value the threshold set out in [F240point (a) of Article 4 of Directive 2014/24/EU] [F240regulation 5 of the Public Contracts Regulations 2015].

2.For the purposes of determining staff costs, an hourly rate may be calculated by dividing the latest documented annual gross employment costs by 1 720 hours for persons working full time, or by a corresponding pro-rata of 1 720 hours, for persons working part-time.

3.When applying the hourly rate calculated in accordance with paragraph 2, the total number of hours declared per person for a given year shall not exceed the number of hours used for the calculations of that hourly rate.

F241...

4.Where annual gross employment costs are not available, they may be derived from the available documented gross employment costs or from the contract for employment, duly adjusted for a 12-month period.

5.Staff costs related to individuals who work on part-time assignment on the operation may be calculated as a fixed percentage of the gross employment costs, in line with a fixed percentage of time worked on the operation per month, with no obligation to establish a separate working time registration system. The employer shall issue a document for employees setting out that fixed percentage.

Textual Amendments

F238Words in Art. 68a(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(27)(i)

F240Words in Art. 68a(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(27)(ii)

Article 68bU.K. Flat-rate financing for costs other than staff costs

1.A flat rate of up to 40 % of eligible direct staff costs may be used in order to cover the remaining eligible costs of an operation without a requirement for the [F242relevant authority] to execute any calculation to determine the applicable rate.

For operations [F243receiving support for rural development] salaries and allowances paid to participants shall be considered additional eligible costs not included in the flat rate.

2.The flat rate referred to in paragraph 1 shall not be applied to staff costs calculated on the basis of a flat rate.]

Textual Amendments

Article 69U.K.Specific eligibility rules for grants and repayable assistance

1.Contributions in kind in the form of provision of works, goods, services, land and real estate for which no cash payment supported by invoices, or documents of equivalent probative value, has been made, may be eligible on condition that the eligibility rules of [F244support for rural development] and the programme so provide and that all the following criteria are fulfilled:

(a)the public support paid to the operation which includes contributions in kind does not exceed the total eligible expenditure, excluding contributions in kind, at the end of the operation;

(b)the value attributed to contributions in kind does not exceed the costs generally accepted on the market in question;

(c)the value and the delivery of the contribution can be independently assessed and verified;

(d)in the case of provision of land or real estate, a cash payment, for the purposes of a lease agreement of a nominal amount per annum not exceeding [F245one pound], may be made;

(e)in the case of contributions in kind in the form of unpaid work, the value of that work is determined by taking into account the verified time spent and the rate of remuneration for equivalent work.

The value of the land or real estate referred to in point (d) of the first subparagraph of this paragraph shall be certified by an independent qualified expert or duly authorised official body and shall not exceed the limit laid down in point (b) of paragraph 3.

2.Depreciation costs may be considered as eligible where the following conditions are fulfilled:

(a)the eligibility rules of the programme allow for it;

(b)the amount of the expenditure is duly justified by supporting documents having equivalent probative value to invoices for eligible costs where reimbursed in the form referred to in point (a) of the first subparagraph of Article 67(1);

(c)the costs relate exclusively to the period of support for the operation;

(d)public grants have not contributed towards the acquisition of the depreciated assets.

3.The following costs shall not be eligible for a contribution from [F246support for rural development]F247...:

(a)interest on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy;

(b)the purchase of land not built on and land built on in the amount exceeding 10 % of the total eligible expenditure for the operation concerned. For derelict sites and for those formerly in industrial use which comprise buildings, that limit shall be increased to 15 %. In exceptional and duly justified cases, the limit may be raised above the respective aforementioned percentages for operations concerning environmental conservation;

(c)value added tax except where it is non-recoverable under national VAT legislation.

Textual Amendments

[F70Article 70E+S+N.I. Eligibility of operations depending on location

1.Subject to the derogations referred to in paragraph 2 and the Fund-specific rules, operations supported by [F248support for rural development] shall be located in the programme area.

Operations concerning the provision of services to citizens or businesses which cover the whole territory of a [F249relevant authority] shall be considered as being located in all programme areas within a [F250constituent nation]. In such cases, expenditure shall be allocated to the concerned programme areas on a pro-rata basis, based on objective criteria.

The second subparagraph of this paragraph does not apply to the national programme referred to in Article 6(2) of Regulation (EU) No 1305/2013 or to the specific programme for the establishment and the operation of the national rural network referred to in Article 54(1) of that Regulation.

2.The managing authority may accept that an operation is implemented outside the programme area F251... provided that all the following conditions are satisfied:

(a)the operation is for the benefit of the programme area;

(b)[F252the total amount allocated under the programme to operations located outside the programme area does not exceed 15% of the support for rural development at the level of the priority at the time of the adoption of the programme;]

(c)the monitoring committee has given its agreement to the operation or types of operations concerned;

(d)the obligations of the authorities for the programme in relation to management, control and audit concerning the operation are fulfilled by the authorities responsible for the programme under which that operation is supported or they enter into agreements with authorities in the area in which the operation is implemented.

Where operations F253... are implemented outside the programme area in accordance with this paragraph and have benefits both outside and within the programme area, such expenditure shall be allocated to those areas on a pro rata basis based on objective criteria.

F254...

3.For operations concerning technical assistance or information, communication and visibility measures and promotional activities, and for operations concerning the thematic objective referred to in point (1) of the first paragraph of Article 9, expenditure may be incurred outside [F255the constituent nations] provided that the expenditure is necessary for the satisfactory implementation of the operation.

F2564.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Extent Information

E14This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

[F450Article 70W Eligibility of operations depending on location

1.Subject to the derogations referred to in paragraph 2 F451..., operations supported by [F452support for rural development] shall be located in the programme area.

Operations concerning the provision of services to citizens or businesses which cover the whole territory of a [F453relevant authority] shall be considered as being located in all programme areas within a [F454constituent nation]. In such cases, expenditure shall be allocated to the concerned programme areas on a pro-rata basis, based on objective criteria.

F455...

2.The managing authority may accept that an operation is implemented outside the programme area F456... provided that all the following conditions are satisfied:

(a)the operation is for the benefit of the programme area;

(b)[F457the total amount allocated under the programme to operations located outside the programme area does not exceed 15% of the support for rural development at the level of the priority at the time of the adoption of the programme;]

F458(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the obligations of the authorities for the programme in relation to management, control and audit concerning the operation are fulfilled by the authorities responsible for the programme under which that operation is supported or they enter into agreements with authorities in the area in which the operation is implemented.

Where operations F459... are implemented outside the programme area in accordance with this paragraph and have benefits both outside and within the programme area, such expenditure shall be allocated to those areas on a pro rata basis based on objective criteria.

F460...

3.For operations concerning F461... information, communication and visibility measures and promotional activities F462... expenditure may be incurred outside [F463the constituent nations] provided that the expenditure is necessary for the satisfactory implementation of the operation.

F4644.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Extent Information

E31This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F451Words in Art. 70(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(28)(a)(i)

F455Words in Art. 70(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(28)(a)(ii)

F458Art. 70(2)(c) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(28)(b)

F461Words in Art. 70(3) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(28)(c)(i)

F462Words in Art. 70(3) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(28)(c)(ii)

Article 71E+S+N.I.Durability of operations

1.An operation comprising investment in infrastructure or productive investment shall repay the contribution from [F257support for rural development] if within five years of the final payment to the beneficiary F258... it is subject to any of the following:

(a)a cessation or relocation of a productive activity outside the programme area;

(b)a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage;

(c)a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

Sums unduly paid in respect of the operation shall be recovered by the [F259relevant authority] in proportion to the period for which the requirements have not been fulfilled.

[F260The relevant authority] may reduce the time limit set out in the first subparagraph to three years in cases concerning the maintenance of investments or jobs created by SMEs.

2.An operation comprising investment in infrastructure or productive investment shall repay the contribution from [F257support for rural development] if within 10 years of the final payment to the beneficiary the productive activity is subject to relocation outside [F261the United Kingdom and its territorial sea], except where the beneficiary is an SME. F262...

F2633.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F704.Paragraphs 1, 2 and 3 of this Article shall not apply to contributions to or by financial instruments or for lease purchase under point (b) of Article 45(2) of Regulation (EU) No 1305/2013 nor to any operation which undergoes cessation of a productive activity due to a non-fraudulent bankruptcy.]

F2645.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E15This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

F262Words in Art. 71(2) omitted (31.12.2020 immediately after IP completion day) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(3), Sch. 1 para. 7(8)(b) (with Sch. 3)

Article 71WDurability of operations

1.[F465An operation comprising investment in infrastructure or productive investment shall repay the contribution from support for rural development if within five years of the final payment to the beneficiary it is subject to any of the following:]

(a)a cessation or relocation of a productive activity outside the programme area;

(b)a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage;

(c)a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

Sums unduly paid in respect of the operation shall be recovered by the [F466relevant authority] in proportion to the period for which the requirements have not been fulfilled.

F467...

[F4682.An operation comprising investment in infrastructure or productive investment shall repay the contribution from support for rural development if within 10 years of the final payment to the beneficiary the productive activity is subject to relocation outside the United Kingdom and its territorial sea.]

F4693.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4704.[F471Paragraphs 1 and 2] of this Article shall not apply to contributions to or by financial instruments or for lease purchase under point (b) of Article 45(2) of Regulation (EU) No 1305/2013 nor to any operation which undergoes cessation of a productive activity due to a non-fraudulent bankruptcy.]

F4725.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E32This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F465Words in Art. 71(1) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(29)(a)(i)

F467Words in Art. 71(1) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(29)(a)(ii)

F468Art. 71(2) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(29)(b)

F471Words in Art. 71(4) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(29)(c)

F265TITLE VIIIU.K.MANAGEMENT AND CONTROL

CHAPTER IU.K.Management and control systems

F265Article 72U.K.General principles of management and control systems

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F265Article 73U.K.Responsibilities under shared management

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F265Article 74U.K.Responsibilities of Member States

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CHAPTER IIU.K.Commission powers and responsibilities

F265Article 75U.K.Commission powers and responsibilities

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Textual Amendments

TITLE IXU.K.FINANCIAL MANAGEMENT, EXAMINATION AND ACCEPTANCE OF ACCOUNTS AND FINANCIAL CORRECTIONS, DECOMMITMENT

F266CHAPTER IU.K.Financial management

F267Article 76U.K.Budget commitments

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Textual Amendments

F267Article 77U.K.Common rules for payments

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Textual Amendments

F267Article 78U.K.Common rules for calculating interim payments, and payment of the final balance

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Textual Amendments

F267Article 79U.K. Payment applications

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Textual Amendments

[F266[F268Article 80E+W+N.I.Use of the euro

Amounts set out in programmes relating to support for rural development, forecasts of expenditure, payment applications, accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euros.]]

Extent Information

E16This version of this provision extends to England and Wales and Northern Ireland only; a separate version has been created for Scotland only

Textual Amendments

[F474Article 80S[F473Currency]

Amounts set out in programmes relating to support for rural development, forecasts of expenditure, [F475statutory reporting] and expenditure mentioned in the annual and final implementation reports shall be denominated in [F476sterling (GBP)].]

Extent Information

E33This version of this provision extends to Scotland only; a separate version has been created for England and Wales and Northern Ireland

Textual Amendments

F269Article 81U.K.Payment of initial pre-financing

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Textual Amendments

F269Article 82U.K.Clearance of initial pre-financing

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Textual Amendments

F269Article 83U.K.Interruption of the payment deadline

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Textual Amendments

Textual Amendments

F266Pt. 2 Title 9 Ch. 1 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(30)

F270CHAPTER IIU.K.Examination and acceptance of accounts

F269Article 84U.K.Deadline for the examination and acceptance of accounts by the Commission

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Textual Amendments

F270Pt. 2 Title 9 Ch. 2 omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(30)

CHAPTER IIIU.K.Financial corrections

F269Article 85U.K.Financial corrections by the Commission

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Textual Amendments

CHAPTER IVU.K.Decommitment

F269Article 86U.K.Principles

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Textual Amendments

F269Article 87U.K.Exception to the decommitment

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Textual Amendments

F269Article 88U.K.Procedure

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Textual Amendments

Textual Amendments

(1)

[F31Regulation (EU) No 516/2014 of the European Parliament and of the Council of 16 April 2014 establishing the Asylum, Migration and Integration Fund, amending Council Decision 2008/381/EC and repealing Decisions No 573/2007/EC and No 575/2007/EC of the European Parliament and of the Council and Council Decision 2007/435/EC ( OJ L 150, 20.5.2014, p. 168 ).]

(2)

[F45Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 ( OJ L 193, 30.7.2018, p. 1 ).]

Textual Amendments

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