Proposal for a Council Regulation amending Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)

Summary:

Article 69(6) of Regulation (EC) No 1698/2005 fixes the ceiling of annual appropriations of Community structural spending in the regions eligible under the Convergence Objective (the so-called “capping provision”) and Article 70(3) and (4) of that Regulation sets down the EAFRD contribution rates.

In the agreement of the European Council on the Financial Perspective 2007–2013 the ceilings of annual appropriations of Community structural spending in the regions eligible under the Convergence Objective which shall be applicable to each individual Member State concerned were fixed, these ceilings being different from the ceiling fixed in Article 69(6) of Regulation (EC) No 1698/2005.

According also to this agreement, an amount of EUR 320 million was allocated to the Republic of Portugal, which may not be subject to the national co-financing requirement as provided for in Article 70(3) and (4) of Regulation (EC) No 1698/2005.

In order to bring the “capping provision” in line with the European Council agreement and also with the relevant provision in the Community legislation governing the Structural Funds and the Cohesion Fund for the period 2007–2013, and to exempt Portugal from the application of the co-financing requirement for the amount of EUR 320 million, it is necessary to amend Regulation (EC) No 1698/2005.