Commission Regulation (EC) No 1423/2006 of 26 September 2006 establishing a mechanism for appropriate measures in the field of agricultural spending in respect of Bulgaria and Romania

• CELEX: Regulation (EC) No 1423/2006
• Articles: 5

Article 1

1.   By the end of the third month following the accession, Bulgaria and Romania shall each make a declaration at ministerial level to the Commission stating whether:

(a)

the elements of the integrated administration and control system, hereinafter IACS, referred to in Article 18 of Regulation (EC) No 1782/2003 have been set up within their respective territories in accordance with the relevant Community legislation, to the extent that they relate to the management and control of the aid regimes applicable in Bulgaria and Romania;

(b)

the IACS and the other elements necessary to ensure the correct payment of the support referred to in Article 3 of this Regulation are operational within their respective territories.

2.   The declaration provided for in paragraph 1 shall be made on the basis of a report established by a body which has the necessary expertise and is independent from the paying agency and the coordinating body referred to in, respectively, Article 6(1) and 6(3) of Regulation (EC) No 1290/2005. Bulgaria and Romania shall each nominate the body delivering the report.

The report shall express an opinion on whether the requirements provided for in paragraph 1 are fulfilled. It shall be made available to the Commission.

Article 2

1.   The Commission shall take a Decision provisionally reducing the monthly and intermediate payments referred to in Articles 14 and 26 of Regulation (EC) No 1290/2005 by 25 % if it concludes, either on the basis of the declaration or the report referred to in Article 1 of this Regulation or its own audit findings, and after giving the Member State concerned opportunity to submit its comments within a reasonable period of time, that:

(a)

Bulgaria or Romania does not comply with its obligations under Article 1(1) and (2);

(b)

the elements referred to in Article 1(1)(a) have not been set up;

(c)

although the elements referred to in Article 1(1)(a) have been set up, the IACS or the other elements necessary to ensure the correct payment of the support referred to in Article 3 are so seriously deficient as to affect the proper functioning of the overall system.

Bulgaria and Romania shall take all the necessary measures to remedy immediately any deficiencies identified.

2.   The provisional reduction shall be applied in respect of the monthly and intermediate payments made from 1 December 2007 up to 30 November 2008.

3.   The Commission shall prolong the provisional reduction for further periods of 12 months if one or more of the conditions referred to in paragraph 1 continue to be fulfilled.

4.   The provisional reduction shall be without prejudice to any reductions or suspensions pursuant to Articles 17 and 27 of Regulation (EC) No 1290/2005.

Article 3

The provisional reduction provided for in Article 2 shall be applied in respect of support granted under the following measures:

(a)

the transitional simplified income support for farmers in the new Member States provided for in Article 143b of Regulation (EC) No 1782/2003 or the aid regimes referred to in Titles III and IV of that Regulation;

(b)

the complementary national direct payments provided for in Article 143c of Regulation (EC) No 1782/2003, financed under subsection E of section I of Annex VIII to the Act of Accession;

(c)

the payments provided for in points (i) to (v) of Article 36(a) and in points (i) to (v) of Article 36(b) of Council Regulation (EC) No 1698/2005  ( 3 ) with the exception of those relating to the measures referred to in Article 39(5) of that Regulation and the measures pursuant to Article 36(b)(i) and (iii) as far as establishment costs are concerned.

Article 4

Any decision taken on the basis of this Regulation or the absence of such a decision shall be without prejudice to the conformity clearance referred to in Article 31 of Regulation (EC) No 1290/2005.

Article 5

This Regulation shall enter into force subject to and on the date of the entry into force of the Treaty of Accession of Bulgaria and Romania to the European Union.