Date: 2023-11-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Implementing Decision (EU) 2023/2492 of 15 November 2023 excluding from European Union financing certain expenditure incurred by the United Kingdom under the European Agricultural Fund for Rural Development (EAFRD) (notified under document C(2023) 7606)
Issued by European Commission
· Directorate-General for Agriculture and Rural Development
Executive Summary:
This Commission Implementing Decision (EU) 2023/2492 excludes certain expenditures incurred by the United Kingdom under the European Agricultural Fund for Rural Development (EAFRD) from EU financing. The decision is based on verifications carried out by the Commission and bilateral discussions with the UK. It was adopted on November 15, 2023, and is addressed to the United Kingdom of Great Britain and Northern Ireland.
Key Points / Main Content:
* **Basis for Decision:**
* The decision is made according to Article 52 of Regulation (EU) No 1306/2013, in conjunction with Articles 131 and 138 of the Agreement on the withdrawal of the United Kingdom from the European Union.
* The decision follows verifications, bilateral discussions with the UK, and consideration of comments from the UK.
* **Exclusion of Expenditure:**
* Amounts related to expenditure incurred by the UK's accredited paying agencies and declared under the EAFRD, as detailed in the Annex, are excluded from Union financing.
* The excluded amounts do not relate to expenditure incurred more than twenty-four months before the Commission's written notification of the verification results to the UK.
* The decision takes into account any reductions or suspensions in accordance with Article 41 of Regulation EU No 1306/2013.
* **Financial Corrections (Annex):**
* A total of EUR 895,356.68 is excluded from EAFRD financing due to financial corrections.
* This includes corrections for:
* Absence of sanction (flat rate) for Rural Development measures subject to IACS in 2019 and 2021.
* Administrative checks (one-off) for Clearance of Accounts in 2021.
* Financial and known errors detected by the CB for Clearance of Accounts in 2020 and 2021.
* Deductions of EUR 75.57 were made.
* **Other Considerations:**
* The decision does not prejudice any financial conclusions from pending cases before the Court of Justice of the European Union on 17 August 2023.
Impact Analysis:
* **United Kingdom of Great Britain and Northern Ireland:**
* Impact: The UK will not receive EU funding for the specified expenditures under the EAFRD, resulting in a financial loss of EUR 895,356.68
* Action Required: The UK needs to acknowledge the decision and adjust its financial records accordingly.
* **European Commission:**
* Impact: The Commission ensures compliance with Union law and proper management of the EAFRD.
* Action Required: The Commission must implement and monitor the exclusion of the specified expenditures from EU financing.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
United Kingdom of Great Britain and Northern Ireland: A sovereign country located off the north-western coast of continental Europe.
European Agricultural Fund for Rural Development (EAFRD): A fund within the European Union used to support rural development projects.
European Commission: An institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Treaty on the Functioning of the European Union: One of the primary treaties upon which the European Union is founded.
Regulation EU No 1306/2013: A regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy.
European Parliament: The directly elected parliamentary assembly of the European Union.
Brussels: The capital of Belgium and a major center of European politics, where the decision was made.
Official Journal EN
of the European Union L series
2023/2492 17.11.2023
COMMISSION IMPLEMENTING DECISION (EU) 2023/2492
of 15 November 2023
excluding from European Union financing certain expenditure incurred by the United Kingdom
under the European Agricultural Fund for Rural Development (EAFRD)
(notified under document C(2023) 7606)
(Only the English text is authentic)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013on
the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC)
No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008(1), and in
particular Article 52 thereof, in conjunction with Articles 131 and 138 of the Agreement on the withdrawal of the United
Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community,
After consulting the Committee on the Agricultural Funds,
Whereas:
(1) In accordance with Article 52 of Regulation (EU) No 1306/2013, the Commission is to carry out the necessary
verifications, communicate to the United Kingdom the results of those verifications, take note of the comments
provided by the United Kingdom, initiate a bilateral discussion so that an agreement may be reached and formally
communicate its conclusions to the United Kingdom.
(2) The United Kingdom has had an opportunity to request the launch of a conciliation procedure. That opportunity has
not been used.
(3) In accordance with Regulation (EU) No 1306/2013, only agricultural expenditure, which has been incurred in a way
that has not infringed Union law may be financed.
(4) In the light of the verifications carried out and the outcome of the bilateral discussion, part of the expenditure
declared by the United Kingdom does not fulfil this requirement and cannot therefore be financed under the EAFRD.
(5) The amounts that are not recognised as being chargeable to the EAFRD should be indicated. Those amounts do not
relate to expenditure incurred more than twenty-four months before the Commission’s written notification of the
results of the verifications to the United Kingdom.
(6) The amounts excluded from Union financing by this Decision should also take into account any reductions or
suspensions in accordance with Article 41 of Regulation (EU) No 1306/2013 due to the fact that such reductions or
suspensions are of a provisional nature and without prejudice to decisions taken pursuant to Articles 51 or 52 of
that Regulation.
(7) As regards the cases covered by this Decision, the assessment of the amounts to be excluded on grounds of non-
compliance with Union law was notified by the Commission to the United Kingdom in a summary report on the
subject(2).
(8) This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments
of the Court of Justice of the European Union in cases pending on 17 August 2023,
(1) OJ L 347, 20.12.2013, p. 549.
(2) Ares(2023)6489779.
ELI: http://data.europa.eu/eli/dec_impl/2023/2492/oj 1/4EN
OJ L, 17.11.2023
HAS ADOPTED THIS DECISION:
Article 1
The amounts set out in the Annex and related to expenditure incurred by the United Kingdom’s accredited paying agencies
and declared under the EAFRD shall be excluded from Union financing.
Article 2
This Decision is addressed to the United Kingdom of Great Britain and Northern Ireland.
Done at Brussels, 15 November 2023.
For the Commission
Janusz WOJCIECHOWSKI
Member of the Commission
2/4 ELI: http://data.europa.eu/eli/dec_impl/2023/2492/ojELI:
http://data.europa.eu/eli/dec_impl/2023/2492/oj
3/4
ANNEX
Financial corrections
EAFRD
Financial corrections – excluding cross-compliance
Budget Item: 6201
Member
Measure FY Reason Type Correction % Currency Gross Amount Deductions Net Decided
State
GB Rural Development 2019 Absence of sanction FLAT RATE 10,00% EUR – 196 923,19 – 75,57 – 196 847,62
EAFRD measures subject system 2019
to IACS
Rural Development 2021 Absence of sanction FLAT RATE 10,00% EUR – 89,00 0,00 – 89,00
EAFRD measures subject system 2021
to IACS
Clearance of Accounts – 2021 Administrative checks ONE OFF EUR – 663 520,79 0,00 – 663 520,79
Financial Clearance FY2021
Clearance of Accounts – 2020 Financial and known ONE OFF EUR – 27 534,76 0,00 – 27 534,76
Financial Clearance errors detected by the CB
FY 2021
Clearance of Accounts – 2021 Financial and known ONE OFF EUR – 7 364,51 0,00 – 7 364,51
Financial Clearance errors detected by the CB
FY 2021
Total GB: EUR – 895 432,25 – 75,57 – 895 356,68
Currency Gross Amount Deductions Net Decided
EUR – 895 432,25 – 75,57 – 895 356,68
OJ
L,
17.11.2023
EN4/4
ELI:
http://data.europa.eu/eli/dec_impl/2023/2492/oj
Financial corrections Total Net Decided
EAFRD Financial corrections – excluding cross-compliance – 895 356,68
TOTAL: – 895 356,68
Reimbursements Total Net Decided
TOTAL: 0,00
EN
OJ
L,
17.11.2023