Section 1 — Support from the EMFAF
Calculation of compensation
Compensation for additional costs or income foregone and other compensation provided under this Regulation shall be granted under any of the forms referred to in points (b) to (e) of Article 53(1) of Regulation (EU) 2021/1060.
Determination of co-financing rates
The maximum EMFAF co-financing rate per specific objective shall be 70 % of the eligible public expenditure, with the exception of the specific objective referred to in point (e) of Article 14(1), for which it shall be 100 %.
Intensity of public aid
1. Member States shall apply a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation.
2. By way of derogation from paragraph 1, specific maximum aid intensity rates are set out in Annex III.
3. Where one operation falls under several of the rows 2 to 19 of Annex III, the highest maximum aid intensity rate shall apply.
4. Where one operation falls under one or several of the rows 2 to 19 of Annex III and at the same time under row 1 of that Annex, the maximum aid intensity rate referred to in row 1 shall apply.
Section 2 — Financial management
Interruption of the payment deadline
1. In accordance with Article 96(4) of Regulation (EU) 2021/1060, the Commission may interrupt the payment deadline for all or part of a payment application in the case of non-compliance by a Member State with the rules applicable under the CFP, if the non-compliance is liable to affect the expenditure contained in a payment application for which the interim payment is requested.
2. Prior to the interruption referred to in paragraph 1, the Commission shall inform the Member State concerned about the non-compliance and give it the opportunity to present observations within a reasonable period of time.
3. The interruption referred to in paragraph 1 shall be proportionate to the nature, gravity, duration and repetition of the non-compliance.
4. The Commission may adopt implementing acts to define the cases of non-compliance referred to in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2).
Suspension of payments
1. In accordance with Article 97(3) of Regulation (EU) 2021/1060, the Commission may adopt implementing acts suspending all or part of the interim payments under the programme in the case of serious non-compliance by a Member State with the rules applicable under the CFP, if the serious non-compliance is liable to affect the expenditure contained in a payment application for which the interim payment is requested.
2. Prior to the suspension referred to in paragraph 1, the Commission shall inform the Member State concerned that the Commission considers that there is a case of serious non-compliance by that Member State with the rules applicable under the CFP and give it opportunity to present observations within a reasonable period of time.
3. The suspension referred to in paragraph 1 shall be proportionate to the nature, gravity, duration and repetition of the serious non-compliance.
4. The Commission may adopt implementing acts to define the cases of serious non-compliance referred to in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2).
Financial corrections by Member States
In the cases of the financial corrections referred to in Article 11(2),, Member States shall determine the amount of the correction, which shall be proportionate to the nature, gravity, duration and repetition of the serious infringements or offences by the beneficiary concerned and the importance of the EMFAF contribution to the economic activity of that beneficiary.
Financial corrections by the Commission
1. In accordance with Article 104(5) of Regulation (EU) 2021/1060, the Commission may adopt implementing acts making financial corrections by cancelling all or part of the Union contribution to the programme if, after carrying out the necessary examination, it concludes that:
(a)
expenditure contained in a payment application is affected by cases where any of the situations referred to in Article 11(2) of this Regulation has occurred and has not been corrected by the Member State concerned prior to the opening of the correction procedure under this paragraph;
(b)
expenditure contained in a payment application is affected by cases of serious non-compliance with the rules of the CFP by the Member State which have resulted in the suspension of payment under Article 43 of this Regulation and the Member State concerned still fails to demonstrate that it has taken the necessary remedial action to ensure compliance with, and the enforcement of, applicable rules of the CFP in the future.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2) of this Regulation.
2. The Commission shall decide on the amount of the correction taking into account the nature, gravity, duration and repetition of the serious non-compliance with the rules of the CFP by the Member State or beneficiary concerned and the importance of the EMFAF contribution to the economic activity of the beneficiary concerned.
3. Where it is not possible to quantify precisely the amount of expenditure linked to serious non-compliance with the rules of the CFP by the Member State, the Commission shall apply a flat rate or extrapolated financial correction in accordance with paragraph 4.
4. The Commission may adopt implementing acts to determine the criteria for establishing the level of financial correction to be applied and the criteria for applying flat rates or extrapolated financial corrections. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2).
Section 3 — Monitoring and reporting
Monitoring and evaluation framework
1. Common output and result indicators for the EMFAF, as set out in Annex I to this Regulation, and, where necessary, programme-specific indicators, shall be used in accordance with point (a) of the second subparagraph of Article 16(1), point (d)(ii) of Article 22(3) and point (b) of Article 42(2) of Regulation (EU) 2021/1060.
2. In compliance with its reporting requirement pursuant to paragraph (iii) of point (h) of Article 41(3) of the Financial Regulation, the Commission shall report to the European Parliament and the Council on the performance of the EMFAF. In that report, the Commission shall use the core performance indicators set out in Annex I to this Regulation.
3. In addition to the general rules set out in Article 42 of Regulation (EU) 2021/1060, the managing authority shall provide the Commission with relevant operation-level implementation data, which shall include key characteristics of the beneficiary (name, type of beneficiary, size of enterprise, gender and contact details) and of the operation supported (specific objective, type of operation, sector concerned, values of indicators, state of progress of the operation, common fleet register number, financial data and form of support). The data shall be provided by 31 January and 31 July of each year. The first transmission of those data shall be due by 31 January 2022 and the last one by 31 January 2030.
4. The Commission shall adopt implementing acts laying down rules further specifying the exact data referred to in paragraph 3 of this Article and its presentation. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2).
5. The Commission is empowered to adopt delegated acts, in accordance with Article 62, to amend Annex I by adding the core performance indicators in order to adapt to changes occurring during the programming period.
Reporting of the results of the funded operation
1. The beneficiaries shall report the value of relevant result indicators after the completion of the operation and no later than the final payment application. The managing authority shall review the plausibility of the value of result indicators reported by the beneficiary in parallel with the final payment.
2. Member States may postpone the timelines established in paragraph 1.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.