Tag Archives: Aid system

State aid in the agriculture sector

Outline of the Community (European Union) legislation about State aid in the agriculture sector

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

State aid in the agriculture sector

Document or Iniciative

Community guidelines for state aid in the agriculture and forestry sector 2007-13 [Official Journal C 319 of 27.12.2006].

Summary

The guidelines cover state aid in the agriculture and forestry sector for the period 2007-13 and replace the previous guidelines (2000-06) established for agriculture.

These guidelines apply to state aid granted for the production, processing and marketing of agricultural products. Annex I of the Treaty on the Functioning of the European Union (TFEU) provides a detailed list of the agricultural products included. They do not apply to the fisheries and aquaculture sector but, unlike the previous ones (2000-06), are applicable for aid for some forestry activities.

European Union (EU) countries are still obliged to notify the Commission of state aid for certain Annex I products that are not covered by a common market organisation (CMO), but the Commission may only make observations on the aid schemes. EU countries are invited to take on board these observations to avoid the risk of infringement procedures.

State aid is categorised in the guidelines as follows:

rural development measures;
aid for risk and crisis management;
other types of aid;
aid for the forestry sector.

RURAL DEVELOPMENT MEASURES

In line with Regulation (EC) No 1698/2005, which regulates EU support for rural development (the second pillar of the Common Agricultural Policy (CAP)), the guidelines set out the rules governing state aid for rural development measures or other closely related measures.

Aid may be authorised for investment in agricultural holdings in the following cases:

aid for investment in agricultural holdings proper;
aid for the conservation of traditional landscapes and buildings;
aid to relocate farm buildings where this is done in the public interest;
aid for necessary investment to improve the environment, hygiene conditions and animal welfare;
aid for additional costs due to investment made in EU countries to implement Directive 91/676/EEC;
aid for investment in compliance with applicable EU or national rules (only for additional costs incurred by young farmers to implement the rules within 36 months of their establishment).

Aid for investment in connection with the processing and marketing of agricultural products is authorised where it meets the conditions laid down in one of the following provisions:

Commission Regulation (EC) No 800/2008;
the Commission guidelines on national regional aid for 2007–13.

Environmental and animal welfare aid must meet the general objectives of EU environmental policy. This consists of the precautionary principle and the principles that preventive action should be taken, that as a priority environmental damage should be rectified at source and that the polluter should pay.

Aid to compensate for handicaps in certain areas must contribute to maintaining land use for agriculture, conserving rural areas and maintaining and promoting sustainable farming systems. To qualify for this aid, EU countries must demonstrate the handicaps in question and provide proof that the amount of aid avoids any overcompensation of these handicaps. The level of compensatory payments must be proportionate to the economic impact of the handicaps. Only the economic impact of permanent handicaps that lie outside human control may be taken into account for calculating the amount of compensatory payments.

Aid for meeting standards is designed to cover part of the costs incurred and loss of income as a result of applying standards in the fields of environmental protection, public health, animal and plant health, animal welfare and occupational safety.

Aid for the setting up of young farmers is for persons under 40 years of age who are setting up an agricultural holding for the first time as farm manager. Eligible beneficiaries may also submit a plan to develop their agricultural activities.

Aid for early retirement or for the cessation of farming activities is authorised subject to the conditions for permanent and definitive cessation of commercial farming activities.

Aid for producer groups aims to encourage the establishment of producer groups to concentrate their supply and adapt their production to market requirements. This aid is limited to small and medium-sized enterprises (SMEs). Eligible expenditure includes: rental of suitable premises, purchase of office equipment, including computer hardware and software, administrative costs (including staff), overheads and other expenses.

Aid for land reparcelling aims to support the exchange of plots of agricultural land and to facilitate the establishment of economically viable holdings. Aid may only be granted to cover the legal and administrative expenses involved in reparcelling up to 100 % of actual expenditure incurred.

Aid to encourage the production and marketing of quality agricultural products aims to improve the quality of agricultural products and to encourage farmers to participate in food quality schemes.

Under technical support in the agricultural sector, aid may be granted for the following measures:

education and training provided to farmers and agricultural workers;
replacement services to cover farmers’ absence due to holiday or sickness;
consultancy services provided by third parties;
organisation of forums to pool knowledge between enterprises and organisation of and participation in competitions, exhibitions or fairs;
publication of factual or scientific data;
publications.

Aid in the livestock sector targets support for the maintenance and improvement of the genetic quality of EU livestock.

Aid for the outermost regions and the Aegean islands aimed at meeting the needs of these regions will be examined by the Commission on a case by case basis, in accordance with the specific legal provisions applying to these regions, and with regard to the compatibility of the measures concerned with rural development programmes for the regions concerned.

RISK AND CRISIS MANAGEMENT

State aid may be granted to manage crises in the sector of primary agricultural production. However, distortions of competition must be avoided as far as possible. Requiring a minimum contribution from producers to losses or the cost of such measures provides an incentive for minimising risk. The following risk and crisis management measures are eligible for state aid:

aid to compensate for damage to agricultural production or the means of agricultural production;
aid regarding TSE (transmissible spongiform encephalopathies) and fallen stock;
aid towards the payment of insurance premiums;
aid for closing production, processing and marketing capacity.

Aid for rescuing and restructuring firms in difficulty will be assessed in accordance with the applicable EU guidelines on state aid for rescuing and restructuring firms in difficulty.

OTHER TYPES OF AID

Regulation (EC) No 800/2008 provides certain conditions under which aid for employment and aid for research and development are authorised.

There are horizontal aid instruments applicable to the agriculture sector. State aid for the agriculture sector is also covered by more general rules on the compatibility of aid with the TFEU, such as training aid (which is also covered by Regulation (EC) No 800/2008), state aid in connection with investment capital, state aid in the form of guarantees and state aid in the form of public service compensation.

Aid for advertising agricultural products may be authorised if the advertising campaign is centred on quality products – recognised EU designations (such as registered designation of origin – protected designation of origin (PDO) and protected geographical indication (PGI)) or for national or regional quality labels. Advertising campaigns must not be dedicated directly to the products of one or more particular company or companies.

Aid linked to tax exemptions under Directive 2003/96/EC may be granted by applying reduced or zero rates of taxation, provided that no differentiation is made in the agricultural sector. This covers products used as fuel for primary agricultural production or energy and electricity products used for primary agricultural production.

Aid in the form of subsidised short-term loans is no longer authorised.

AID FOR THE FORESTRY SECTOR

Up to now there have not been any specific EU rules governing state aid for the forestry sector. Aid could be granted under EU general rules for all sectors or under certain specific regulations. In the interests of transparency, the Commission has therefore sought to more clearly define EU policy on state aid for the forestry sector. However, the guidelines apply only to living trees and their natural environment in forests and other wooded land. They do not apply to state aid for forest-based industries, timber transport, wood processing or other forestry resources used as products or for the purpose of energy generation.

Aid in the forestry sector is authorised for the following purposes:

to contribute directly towards maintaining and enhancing the ecological, protective and recreational functions of forests, local biodiversity and a healthy forest ecosystem;
afforestation of agricultural and non-agricultural land, establishment of agri-forestry systems on agricultural land, Natura 2000 payments, payments for the forestry environment, restoring forest potential, introducing prevention systems, and non-productive investments;
to cover additional costs and loss of revenue linked to using more demanding environmentally friendly forestry techniques than those imposed by the rules, if the owners concerned undertake voluntarily to use these techniques and this commitment meets certain conditions;
to purchase forestry land, provided that the intensity of aid is within the limits set for aid for investment in agricultural holdings;
training for forestry owners and workers and for consultancy services provided by third parties;
setting up forestry associations;
support for initiatives to spread new techniques, pilot or demonstration projects under the conditions laid down in the chapter on technical assistance in the agricultural sector in the guidelines.

PROCEDURES

All new aid schemes and all new aid must be notified to the Commission before they are implemented, unless the aid is covered by one of the exemption regulations adopted by the Commission. In contrast to the guidelines for 2000-06, only aid schemes of limited duration are now authorised, with the maximum duration being seven years. These new guidelines apply from 1 January 2007.

EU countries must submit annual reports and the Commission reserves the right to request additional information.

These guidelines apply until 31 December 2013. However, the Commission reserves the right to amend them in the light of important considerations of competition policy, agricultural policy, human and animal health or in order to take account of other EU policies or international commitments.

BACKGROUND

The new guidelines form part of the 2003 reform of the CAP, which confirms the importance of rural development and shows the Commission’s concern to make aid granted by EU countries in the agriculture sector more coherent. The guidelines for the period 2007-13 are based on Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development, and in particular Articles 88 and 89 thereof, which contain specific provisions regarding state aid.

Assistance for traditional ACP suppliers of bananas

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Assistance for traditional ACP suppliers of bananas

Outline of the Community (European Union) legislation about Assistance for traditional ACP suppliers of bananas

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > African Caribbean and Pacific states (ACP)

Assistance for traditional ACP suppliers of bananas

Document or Iniciative

Council Regulation (EC) No 2686/94 of 31 October 1994 establishing a special system of assistance to traditional ACP suppliers of bananas.

Council Regulation (EC) No 856/1999 of 22 April 1999 establishing a special framework of assistance for traditional ACP suppliers of bananas.

Summary

Traditional African, Caribbean and Pacific (ACP) suppliers of bananas have benefited from a framework of assistance to improve the competitiveness and diversification of their agricultural production.

The term traditional ACP suppliers of bananas does not refer to all current ACP suppliers of bananas. The countries involved (defined according to historical references) are: Belize, Cameroon, Cape Verde, Côte d’Ivoire, Dominica, Grenada, Jamaica, Madagascar, Saint Lucia, Saint Vincent and the Grenadines, Somalia and Suriname.

Within the meaning of the Regulation, the term “bananas” means fresh or dried bananas, excepting plantains.

The temporary special framework of assistance (SFA) is established by Regulation (EC) No 856/1999 for a period of ten years with effect from 1 January 1999.

Activities eligible for assistance

The assistance measures aim to:

increase productivity and improve product quality, including in the field of plant health;
adapt production, distribution or marketing methods, particularly in the context of the standards provided for in Regulation (EEC) No 404/93 and (EC) No 1234/2007;
establish producers’ organisations to improve the marketing and competitiveness of their products;
develop fair trade, and systems of certifying environmentally-friendly production methods;
develop a production and/or marketing strategy to meet the requirements of the market;
assist with training, market intelligence and the development of environment-friendly and fair production methods;
support the diversification of production where improvement in the competitiveness of the sector is not sustainable.

Financing programmes

The financial assistance provided is designed to complement and reinforce the assistance provided under other instruments of development cooperation. Each year, the Commission fixes the maximum amount available to each supplier on the basis of the competitiveness gap observed and the scale of banana production of the country concerned.

The Regulation provides for mechanisms to reduce Community aid gradually. From 2004, a maximum reduction coefficient of 15 % will be applied each year to the level of assistance made available to each country. When programmes are implemented, this reduction coefficient will be reduced to an extent equivalent to the increase in competitiveness observed.

The projects financed under the “bananas” budget heading were devolved to the Commission delegations in the last quarter of 2005. This devolution has enabled the delegations to manage projects more effectively and to catch up on any commitment or payment backlogs.

Evaluation

The Commission was required to present a report to the European Parliament and the Council on the operation of the Regulation by 31 December 2000 and every two years thereafter.
It presented its first two-yearly report in February 2001, and the second in December 2002.

Context

Since the common market organisation (CMO) in bananas was established in 1993, ACP states have benefited from a preferential trade regime for exporting bananas to the EU. As such:

from 1993 to 2005 imports of bananas from non-ACP states were subject to quotas and customs duties. ACP states were not subject to customs duties within quota and benefited from reduced customs duties for imports above the quota;
in 2006 the general imports system was replaced by a system based only on customs duties, except for ACP states which benefited from a quota system exempt from customs duties;
since 2008, the ACP states which have negotiated an Economic Partnership Agreement (EPA) have benefited from access to the market without quotas or customs duties. The EPAs replace the trade provisions of the Cotonou Agreement which expired on 31 December 2007;
since 15 December 2009 customs duties applicable to imports from third countries (non-ACP states) have been EUR 148/tonne.

The special framework of assistance for ACP suppliers established in 1999 came to an end in 2008; however a number of projects are still underway.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 2686/94	5.11.1994		OJ L 286 of 5.11.1994
Regulation (EC) No 856/1999	30.4.1999	–	OJ L 108 of 27.4.1999

Related Acts

Council Decision 2010/314/EU of 10 May 2010 on the signing and provisional application of the Geneva Agreement on Trade in Bananas between the European Union and Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru and Venezuela and of the Agreement on Trade in Bananas between the European Union and the United States of America.

Commission Regulation (EC) No 1609/1999 of 22 July 1999 laying down the detailed rules for the implementation of Council Regulation (EC) No 856/1999 [Official Journal L 190 of 23.7.1999].
This Regulation lays down the detailed rules for the implementation of the special framework of assistance, for example the deadlines, the methods for calculating the reference price, the reference quantities and the competitivity gap.
Requests for assistance should be based on a coherent long-term strategy for the banana sector. Programmes submitted should be drawn up on the basis of this strategy and take the form of annual action plans. Funds allocated to countries which have not presented a request for assistance within the specified deadline shall be distributed to other countries.

REPORTS

Communication from the Commission to the Council and the European Parliament of 17 March 2010 – Biennial Report on the Special Framework of Assistance for Traditional ACP suppliers of Bananas [COM(2010) 103 final – Not published in the Official Journal].

The special framework of assistance (SFA) came to an end on 31 December 2008. Its implementation enabled traditional ACP suppliers of bananas to make progress in terms of:

competitiveness and adaptation to the needs of the European market and to EU standards and policies with the aim of sustainable economic development;
diversifying agricultural production and including it in the planning of the development of the country in a more integrated and strategic way.

However, the majority of these states remain vulnerable to external crises and must still overcome significant challenges to adapt to the constraints of world trade.

Communication from the Commission to the Council and the European Parliament –Special Framework of Assistance for traditional ACP Suppliers of Bananas (Council Regulation No 856/1999): Biennial Report from the Commission 2006 [COM(2006) 806 – Not published in the Official Journal].

Communication from the Commission to the Council and the European Parliament – Special Framework of Assistance for Traditional ACP Suppliers of Bananas (Council Regulation (EC) No 856/1999): Biennial Report from the Commission – 2004 [COM(2004) 823 final – Not published in the Official Journal].
The EU trade regime has not changed since the last report and measures have been taken as part of enlargement.

Communication from the Commission to the Council and the European Parliament of 23 December 2002 – Special Framework of Assistance for Traditional ACP Suppliers of Bananas (Council Regulation (EC) No 856/1999): Biennial Report from the Commission – 2002 [COM(2002) 763 final – Not published in the Official Journal].
In April 2001 the Community prepared a new regime in order to comply with WTO rules, putting an end to the “banana conflict” between the United States and the European Community. The amended regime is a compromise and contains major, phased changes to EU banana import arrangements:

the quota system should be replaced by a tariff-only system;
in the meantime, the EU market in bananas will continue to be managed through a quota system based on historical reference, which has also been discussed with the ACP countries.

In particular, the Commission notes that between 1999 and 2002 the amounts used to boost the productivity of banana plantations have declined, compared with those aimed at supporting diversification. These changes correspond to the Commission’s desire to improve the management of funds, in particular regarding transparency, security and identification of the various stakeholders’ responsibilities.

Communication from the Commission to the European Parliament of 7 February 2001 – Special Framework of Assistance for Traditional ACP Suppliers of Bananas (Council Regulation No 856/1999) – Biennial Report from the Commission 2000 [COM(2001) 67 final – Not published in the Official Journal].
Market conditions were difficult for the traditional ACP suppliers of bananas in 1999 and 2000. The market is dominated by cheaper bananas from Latin America. In addition, banana prices fell in 1999 and plummeted to an exceptional low in 2000. Furthermore, following the WTO’s unfavourable conclusions on the Commission’s import regimes in 1999, the Commission made significant changes to the import regime.

Specific measures for the outermost regions

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Specific measures for the outermost regions

Outline of the Community (European Union) legislation about Specific measures for the outermost regions

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

Specific measures for the outermost regions

Document or Iniciative

Council Regulation (EC) No 247/2006 of 30 January 2006 laying down specific measures for agriculture in the outermost regions of the Union [See amending acts].

Summary

The Outermost Regions (OR) are listed in Article 349 of the Treaty on the Functioning of the EU:

the French Overseas Departments (OD): Guadeloupe, French Guiana, Martinique, Réunion, Saint-Barthélemy, Saint-Martin;
the Azores and Madeira (Portugal);
the Canary Islands (Spain).

These regions are called ‘outermost’ due to their geographical remoteness from Europe. The OR generally have a small surface area and are exposed to difficult climates. All these factors present difficulties for the agricultural development of the OR.

This Regulation lays down measures specific to the OR in the area of agriculture. The objective is to meet the additional costs related to the supply arrangements and agricultural activities of these regions.

Specific supply arrangements

Some agricultural products (listed in Annex I to the Treaty), considered to be essential for human and animal consumption or for the production of other products, are covered by specific support arrangements (or SSAs). Under this system, limited amounts of these products may be introduced from the EU with the granting of aid to cover a part of the additional costs related to remoteness or from third countries without being subject to any kind of import duty.

The maximum amounts of products covered by these arrangements are established in a forecast supply balance produced by Member States before being approved by the Commission.

The products covered by these arrangements can only be exported following the payment of import duties and the reimbursement of aid received under these arrangements. This condition does not apply to products which are exchanged between French overseas departments nor to products processed in the outermost regions using products which have benefited from the special arrangements, if they are:

exported to third countries or dispatched to the rest of the EU within the limits of dispatches or exports as part of traditional trade flows;
exported to third countries as part of regional trade flows;
dispatched from the Azores to Madeira or vice versa;
dispatched from Madeira to the Canary Islands or vice versa.

Under the specific supply arrangements, no import duty is due on certain types of sugar imported into Madeira and the Canary Islands and certain products from the rice sector imported into Réunion. Aid is also paid for supplies of milk-based preparations imported into the Canary Islands, which are not included in Annex I to the Treaty.

Support for local agricultural production

Community support programmes promote local agricultural production. They are prepared by the competent authorities appointed by the Member States concerned. Their preparation should take EU legislation and policy into account.

The Regulation stipulates that the Community support programmes should indicate:

a quantified description of the agricultural production situation in the regions in question;
a description of the strategy proposed and an appraisal showing the expected economic, environmental and social impact;
a description of the measures contemplated;
a schedule for the implementation of the measures and a general indicative financing table showing the resources to be deployed;
proof of the compatibility and consistency of the various measures under the programmes and a definition of the criteria and quantitative indicators to be used for monitoring and evaluation;
the steps taken to ensure the programmes are implemented effectively and appropriately, the definition of quantified indicators for use in programme evaluation and the provisions for checks and penalties;
the designation of the competent authorities and bodies responsible for implementing the programme, the designation of associated bodies and socio-economic partners, and the results of the consultations held.

Annual financial resources

The specific supply arrangements and the measures to promote local agricultural production benefit from the following annual financial allocations (in EUR million):

	2007 financial year	2008 financial year	2009 financial year	2010 financial year	2011 financial year
French overseas departments	126.6	262.6	269.4	273.0	278.41
Azores and Madeira	77.9	86.98	87.08	87.18	106.21
Canary Islands	127.3	268.4	268.4	268.4	268.42

As regards the specific supply arrangements, financing should not exceed the following amounts:

For the French overseas departments: EUR 20.7 million
Azores and Madeira : EUR 17.7 million
Canary Islands: EUR 72.7 million

Accompanying measures

In addition to the specific supply arrangements and the Community support programmes, this Regulation also introduces other types of derogating measures promoting the agricultural development of the OR.

First, the Regulation provides for the option of increasing European financial aid provided to the OR under the Common Agricultural Policy. The OR benefit from derogations with regard to the maximum eligible amounts of financing from the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD).

In addition, the Regulation provides for the option for Member States of granting State aid for the production, processing and marketing of agricultural products listed in Annex I to the Treaty. However, this State aid remains subject to authorisation by the Commission.

Furthermore, France and Portugal may present programmes to the Commission for the control of organisms harmful to plants or plant products (with the exception of bananas) in their respective outermost regions. The EU contributes to the financing of these programmes on the basis of a technical analysis of the circumstances at the regional level, up to 60 % of eligible expenditure for the French overseas departments and 75 % for the Azores and Madeira.

Lastly, this Regulation makes provisions for derogations and exemptions that are specific to the outermost regions in four sectors:

wine: the Azores, Madeira and the Canary Islands benefit from derogations to Regulation (EC) No 1234/2007 for abandonment premiums, aid for release from storage and measures concerning distillation.
milk: only producers in the Azores are regarded as having participated in the overrun of the reference quantity for the purposes of sharing the additional levy under Regulation (EC) No 1788/2003. Madeira (within a local production limit of 4 000 tonnes of milk) and the French overseas departments are exempt from the additional levy scheme applicable to producers of cow’s milk laid down by Regulation (EC) No 1788/2003. Madeira is permitted to produce, solely for local consumption purposes, UHT milk reconstituted from Community milk powder, by derogation from Council Regulation (EC) No 2597/97.
livestock farming: the French overseas departments and Madeira may import bovine animals from third countries without applying the customs duties. This practice is allowed until the herd of local young male bovine animals reaches a sufficient level to ensure the continuation and development of local animal production.
tobacco: Spain may grant aid for the production of tobacco in the Canary Islands up to the limit of 10 tonnes per year. In addition, no customs duties are applied to direct imports into the Canary Islands of certain raw and semi-manufactured tobaccos.

Context

Agriculture in the outermost regions has benefited from the POSEI system (Programme of Options Specifically Relating to Remoteness and Insularity) since 1991 for the French OD (POSEIDOM) and since 1992 for the Canary Islands (POSEICAN), the Azores and Madeira (POSEIMA). The objective of the POSEI system consisted of taking into consideration the geographical and economic handicaps of these regions.

This Regulation therefore reforms the POSEI system and repeals Regulations No 1452/2001, No 1453/2001 and No 1454/2001.

REFERENCES

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 247/2006	15.2.2006	–	OJ L 42, 14.2.2006

Amending Act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 318/2006	3.3.2006		OJ L 58, 28.2.2006
Regulation (EC) No 2013/2006	1.1.2007	–	OJ L 384, 29.12.2006
Regulation (EC) No 1276/2007	31.10.2007	–	OJ L 284, 30.10.2007
Regulation (EC) No 674/2008	24.7.2008	–	OJ L 189, 17.7.2008
Regulation (EC) No 72/2009	1.2.2009	–	OJ L 30, 31.1.2009
Regulation (EC) No 73/2009	1.2.2009	–	OJ L 30, 31.1.2009
Regulation (EC) No 641/2010	24.7.2009	–	OJ L 194, 24.7.2010

The successive amendments and corrections to Regulation (EEC) No 247/2006 have been incorporated into the original text. This consolidated versionis of documentary value only.

Related Acts

Rules for application

Commission Regulation (EC) No 793/2006 of 12 April 2006 laying down certain detailed rules for applying Council Regulation (EC) 247/2006 laying down specific measures for agriculture in the outermost regions of the Union [Official Journal L 145 of 31.5.2006].

See consolidated version .

Community support for combating harmful organisms

Commission Decision 2007/609/EC of 10 September 2007 on the definition of the measures eligible for Community financing in the programmes for the control of organisms harmful to plants and plant products in the French overseas departments, in the Azores and in Madeira [Official Journal L 242 of 15.9.2007].

Commission Decision 2009/126/EC of 13 February 2009 on the Community’s financial contribution to a programme for the control of organisms harmful to plants and plant products in the French overseas departments for 2009 [Official Journal L 44 of 14.2.2009].

Notification of information

Commission Regulation (EC) No 792/2009 of 31 August 2009 laying down detailed rules for the Member States’ notification to the Commission of information and documents in implementation of the common organisation of the markets, the direct payments’ regime, the promotion of agricultural products and the regimes applicable to the outermost regions and the smaller Aegean islands [Official Journal L 228 of 1.9.2009].

Partnership with the United Nations: development assistance and humanitarian aid

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Partnership with the United Nations: development assistance and humanitarian aid

Outline of the Community (European Union) legislation about Partnership with the United Nations: development assistance and humanitarian aid

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Humanitarian aid

Partnership with the United Nations: development assistance and humanitarian aid

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 20 May 2001 – Building an effective partnership with the United Nations in the fields of development and humanitarian affairs [COM(2001) 231 final – Not published in the Official Journal].

Summary

The European Union (EU) and the United Nations (UN) conduct joint actions at a global level. Their cooperation extends to the majority of the areas covered by the EU’s external policy and to all of the areas provided for by the Charter of the United Nations (peace, security, human rights, economic and social affairs, development, humanitarian aid and trade policy). In addition, the EU is one of the main donors to the UN’s specialised agencies, funds and programmes.

This Communication analyses the means for reinforcing their partnership in the areas of humanitarian aid and development assistance, in particular for implementing the Millennium Development Goals (MDGs).

Improving cooperation: the objectives

The partners can adapt their framework for cooperation through:

examining the possibilities for cooperation between the EU and the UN during the drawing up of the per-country multiannual programming instruments of European external policy;
recasting the Financial Regulation of the EU for greater flexibility in terms of participating in UN activities;
reforming the framework agreement between the EU and the UN concerning the financial management, control and audit of UN programmes and projects.

In addition, the Communication recommends increasing the representation and defence of EU interests within the UN. It is therefore necessary to increase policy dialogue with UN agencies, funds and programmes, and to improve EU participation in the system of multilateral governance.

Operational cooperation: recommendations

The EU, the UN and their partners conduct joint ground operations in the areas of humanitarian aid and development assistance. This cooperation can be improved by respecting two core principles:

the division of labour must be made according to the added value or comparative advantage brought by each partner;
development assistance activities should focus on combating poverty.

In addition, the coordination of donors must be improved, as well as the internal coordination of the UN, and the strategic planning of operations based on common objectives.

Concerning the UN’s partner organisations, the Commission recommends:

supporting those organisations whose mandate corresponds to European policy priorities, and strengthening policy dialogue and exchanges with these organisations;
prioritising multi-annual financial programmes and coordinating the funding from different donors, as well as combating financial fraud.

State aid for SMEs in the fisheries sector

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State aid for SMEs in the fisheries sector

Outline of the Community (European Union) legislation about State aid for SMEs in the fisheries sector

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Competition > Rules applicable to specific sectors > Competition in agriculture and fisheries

State aid for SMEs in the fisheries sector

Document or Iniciative

Commission Regulation (EC) No 736/2008 of 22 July 2008 on the application of Articles 87 and 88 of the Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products.

Summary

This Regulation applies to aid granted to small and medium-sized enterprises (SMEs) in the fisheries sector. This aid is exempt from a case-by-case assessment on the condition that it complies with the previsions of the European Fisheries Fund (EFF) and the fisheries guidelines .

The categories of aid exempted pursuant to this Regulation are:

aid for cessation of fishing activities;
aid for financing socioeconomic measures;
aid for productive investments in aquaculture;
aid for aqua-environmental measures;
aid for public health and animal health measures;
aid for inland fishing;
aid for processing and marketing fisheries products and aquaculture;
aid for collective actions. This aid is for the financing of measures of common interest which are supported by operators, producer organisations or other organisations recognised by the Member States.
aid for measures intended to protect and develop aquatic fauna and flora;
aid for investments in fishing ports, landing sites and shelters;
aid for development of new markets and promotional campaigns;
aid for pilot projects;
aid for modification for reassignment of fishing vessels;
aid for technial assistance.

This Regulation does not cover:

aid the amount of which is fixed on the basis of price or quantity of products put on the market;
aid to export-related activities;
aid favouring domestic products over imported products;
aid granted to undertakings in difficulty to rescue and restructure them;
aid granted to an undertaking which is subject to an outstanding recovery order following a decision by the Commission declaring an aid illegal and incompatible with the common market.

Member States must ensure that the aid it wishes to grant does not affect trading conditions in a way contrary to the general interest. Aid granted is not subject to the notification requirement of Article 88, paragraph 3 of the Treaty establishing the European Community (EC Treaty). However, Member States must send a form of summary information detailed in Annex I of this Regulation in electronic format to the Commission for publication in the Official Journal of the European Union.

The amount of aid cannot exceed a maximum of EUR 1 million per beneficiary, per year or EUR 2 million per eligible project.

Cumulation of exempted aid under this Regulation with other aid of the same type is possible if the cumulated aid concerns different eligible costs within the maximum amounts detailed above.

Only aid with an incentive effect will benefit from the exemption of the aforementioned Regulation. Aid has an incentive effect when it enables beneficiaries to carry out activities or projects which they would not have undertaken under normal market conditions. For the incentive effect to be recognised, the beneficiary must submit an application for aid before the launch of the project or activities start.

Each year Member States must send a report in electronic format to the Commission. The information submitted must enable the Commission to verify that the exempted aid complies with transparency and exemption criteria.

References

Act	Entry into force – expiry date	Deadline for transposition into the Member States	Official Journal
Regulation (EC) No 736/2008	18.8.2008 – 31.12.2013	–	OJ L 201 of 30.7.2008

Instrument for Stability

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Instrument for Stability

Outline of the Community (European Union) legislation about Instrument for Stability

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Relations with third countries > Asia

Instrument for Stability (2007 – 2013)

Document or Iniciative

Regulation (EC) No 1717/2006 of the Parliament and of the Council of 12 November 2006 establishing an Instrument for Stability.

Summary

The Instrument for Stability finances cooperation actions for development and for financial, economic and technical cooperation led by the European Union (EU) in partnership with third countries. These actions aim to:

re-establish stability in emergency situations, situations of crisis or emerging crisis in order to enable the effective implementation of development and cooperation policies;
strengthen the capacity of third countries to prepare for crises and global and transregional threats.

In the case of crisis or emerging crisis situations, including situations which could evolve into armed conflict, the Instrument for Stability contributes to protecting democracy, law and order, the safety of individuals, human rights and fundamental freedoms.

The cooperation actions can also support:

the technical and logistical measures of state and non-state actors, and regional and international organisations;
establishing interim administrations;
the development of democratic public institutions and independent judiciaries;
national and international criminal courts and national reconciliation commissions;
the demobilisation and reintegration of former combatants into civil society and measures to address the situation of child soldiers and the rehabilitation of victims;
the development of civil society and the promotion of independent media;
reducing the impact on the civilian population of anti-personnel landmines and unexploded ordnance or explosive remnants of war;
the promotion of equal access to natural resources;
the response to natural or man-made disasters and threats to public health.

In cases where the situation of the country offers stable cooperation conditions, the Instrument for Stability can contribute, in particular, to:

improving the preparedness for crisis, in terms of response and rehabilitation;
strengthening the public institutions and infrastructures, including with regard to combating terrorism and organised crime and improving the security of critical infrastructure and public health;
mitigating the risks connected to chemical, biological, radiological or nuclear material or agents.

Implementing the aid

The aid provided must take into account the actions led by the other European instruments for external assistance.

The implementation of the fund is based on geographical and thematic strategy documents, and on the multi-annual indicative programmes for each country. Special measures may also be adopted in response to exceptional crises or situations.

Beneficiaries of the funding

Several types of actors can receive funding from the Instrument for Stability, whether they are in the EU or in third countries. They may be local, regional or national authorities in the partner countries, international organisations, public or private organisations, non-governmental organisations and natural persons.

Context

The provisions of the Instrument for Stability repeal and replace the regulations concerning the rapid reaction mechanism and the different regulations concerning combating anti-personnel landmines.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 1717/2006	14.12.2007	–	OJ L 327, 24.11.2006

Related Acts

Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1717/2006 establishing an Instrument for Stability [COM(2009) 195 final – Not published in the Official Journal].
This Proposal extends the application of the regulation for combating the illicit use of small arms and light weapons, in compliance with the aims of the Community’s cooperation policies.
Codecision procedure: (COD/2009/0058)