The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019

Made: 28th March 2019

Coming into force in accordance with regulation 1

The Secretary of State makes these Regulations in exercise of the powers conferred by section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 .

In accordance with paragraph 1(3) of Schedule 7 to the European Union (Withdrawal) Act 2018, a draft of this instrument has been laid before Parliament and approved by a resolution of each House of Parliament.

PART 1 — Introductory

Citation and commencement

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These Regulations may be cited as the European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 and come into force on exit day.

PART 2 — Amendment to subordinate legislation

Amendment to the Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014

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In regulation 2(1) of the Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 , at the end of the definition of “the Common Provisions Regulation” insert “ as amended by the European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019; ”.

PART 3 — Amendments to retained direct EU legislation

Amendment of Regulation (EU) No 1303/2013

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Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund, to the extent that it applies to support for rural development and support under Regulation (EU) No 508/2014, is amended in accordance with the following provisions of this Part.

Amendment of Part 1

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• (1) In Article 1—

• (a) for the first paragraph substitute—

This Regulation lays down the common rules applicable to support for rural development .... It also lays down the provisions necessary to ensure the effectiveness of the support and co-ordination with other retained direct EU legislation. The common rules that apply are set out in Part Two.

• (b) omit the second paragraph;

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) in the fourth paragraph—

• (i) omit points (1) to(4);

• (ii) for point (5), substitute—

(5) “Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (‘Regulation (EU) No 1305/2013’)

• (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) for the fifth paragraph substitute—

Part Two of this Regulation applies to support for rural development except when it explicitly allows for derogations. The Fund-specific Regulations may establish complementary rules to Part Two of this Regulation. The complementary rules in the Fund-specific Regulations must be read consistently with Part Two of this Regulation. In case of doubt about the application between provisions, Part Two of this Regulation prevails over the Fund-specific Regulations.

• (2) In Article 2—

• (a) omit point (1);

• (b) for point (4) substitute—

(4) “Fund-specific rules” means the provisions laid down in, or established on the basis of, ...Regulation (EU) No 1305/2013 ...

• (c) for point (5) substitute—

(5) “programming” means the process of organisation, decision-making and allocation of financial resources in several stages, with the involvement of partners in accordance with Article 5, intended to implement, on a multi-annual basis, action by the relevant authority;

• (d) for point (6) substitute—

(6) “programme” means a ‘rural development programme’ as referred to in Regulation (EU) No 1305/2013;

• (e) for point (8) substitute—

(8) “priority”, in Part Two of this Regulation, means a priority for rural development referred to in Regulation (EU) No 1305/2013 ...;

• (f) in point (10), for “Member State” substitute “ relevant authority ”;

• (g) for point (15) substitute—

(15) “public expenditure” means any public contribution to the financing or operations the source of which is the budget of national, regional or local public authorities, the budget of the Union related to the European Agricultural Fund for Rural Development ..., the budget of public law bodies or the budget of associations of public authorities or of public law bodies;

• (h) for point (16) substitute—

(16) “public law body” means any body governed by public law within the criteria in paragraphs (a) to (c) of point 9 of Article 1 of Directive 2004/18/EC of the European Parliament and of the Council

• (i) in point (19) omit “and which contributes to achieving the Union strategy for smart, sustainable and inclusive growth,”;

• (j) omit points (20), (22) and (23);

• (k) in point (21), at the end insert “ as it had effect immediately before IP completion day ”;

• (l) in point (28), at the end, insert “ as it had effect immediately before IP completion day”;

• (m) in points (29) and (30) omit “Part Three and”;

• (n) omit points (31) and (32);

• (o) in points (33) and (34), for “Union priority”, in each place it occurs, substitute “ priority for rural development ...”;

• (p) omit point (35);

• (q) for point (36) substitute—

(36) ”irregularity” means any breach of the law as it applies in the constituent nation resulting from an act or omission by an economic operator involved in the implementation of support for rural development ..., which has, or would have, the effect of charging an unjustified item of expenditure to a programme budget;

• (r) for point (37) substitute—

(37) ”economic operator” means any natural or legal person or other entity taking part in the implementation of support for rural development ..., with the exception of a relevant authority exercising its prerogatives as a public authority;

• (s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (t) at the end insert—

(40) ‘Financial Regulation’ means Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union as it had effect immediately before IP completion day; (41) “CMO support” means financial support granted under Regulation (EU) No 1308/2013 or any of the delegated or implementing acts adopted on the basis of that regulation or of Commission Regulation (EU) No 1234/2007; (42) “direct payment support” means financial support granted under any of the support schemes listed in Annex I to Regulation (EU) No 1307/2013; (43) “constituent nation” means England, Wales, Scotland or Northern Ireland, as the case may be; ... (44) “relevant authority” means— (a) in respect of support under rural development (i) in England, the Secretary of State, (ii) in Northern Ireland, the Department of Agriculture, Environment and Rural Affairs, (iii) in Scotland, the Scottish Ministers, (iv) in Wales, the Welsh Ministers, (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (45) “support for rural development” means financial support granted under Title 3 of Regulation (EU) No 1305/2013 or Title 3, Chapter 2 of this Regulation; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (u) Omit Article 3.

Amendment of Title 1 of Part Two

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• (1) For the heading to Part Two substitute “ Common Provisions applicable to support for rural development ... ”.

• (2) For the heading to Title I substitute “ Principles of support for rural development ... ”.

• (3) In Article 4 —

• (a) for paragraph 1 substitute—

(1) Support for rural development ... must be provided through multi-annual programmes that complement national, regional and local intervention, as well as the Fund-specific missions, including economic, social and territorial cohesion.

• (b) for paragraph 2 substitute—

(2) The relevant authority must ensure, taking account of the specific context of each constituent nation, that support for rural development ... is consistent with the horizontal principles referred to in Articles 5, 7 and 8 and that it is complementary to CMO support and direct payment support and support under other retained direct EU legislation.

• (c) omit paragraph 3;

• (d) for paragraph 4 substitute—

(4) for the words from “Member States” to “by them” substitute “The relevant authority, in accordance with its institutional, legal and financial framework, and the bodies designated by it

• (e) in paragraph 5, for “the ESI Funds” substitute “ support for rural development ... ”;

• (f) omit paragraphs 6, 7 and 8;

• (g) in paragraphs 9 and 10—

• (i) for “The Commission and Member States” substitute “ The relevant authority and Managing Authority ”;

• (ii) for “the ESI Funds” substitute “ support for rural development ... ”.

• (4) In Article 5 —

• (a) in paragraph 1, for the words from the beginning to “Member State” substitute “ The relevant authority ”;

• (b) in point (a), omit “urban and other”;

• (c) in paragraph 2—

• (i) for “Member States” substitute “ the relevant authority ”;

• (ii) omit “Partnership Agreements and”;

• (d) omit paragraphs 5 and 6.

• (5) For Article 6 substitute—

Operations receiving support for rural development ... must comply with the law as it applies in the constituent nation relating to its application (“the law as it applies in the constituent nation”).

• (6) In Article 7, for “Member States and the Commission” in each place it occurs, substitute “ relevant authority ”.

• (7) In Article 8 —

• (a) in the first paragraph—

• (i) for “ESI Funds”, substitute “ support for rural development ... ”;

• (ii) omit “Union's promotion of the”;

• (b) for the second paragraph substitute—

(2) The relevant authority must ensure that environmental protection requirements, resource efficiency, climate change mitigation and adaptation, biodiversity, disaster resilience, and risk prevention and management are promoted in the preparation and implementation of programmes. The relevant authority must provide information on the support for climate change objectives using a methodology based on the categories of intervention, focus areas or measures, as appropriate, for support for rural development .... That methodology must consist of assigning a specific weighting to the support provided at a level which reflects the extent to which such support makes a contribution to climate change mitigation and adaptation goals. The specific weighting assigned must be differentiated on the basis of whether the support makes a significant or a moderate contribution towards climate change objectives. Where the support does not contribute towards those objectives of the contribution is insignificant, a weighting of zero shall be assigned. In the case of support for rural development weightings shall be attached to focus areas set out in Regulation (EU) No 1305/2013 ... .

Amendment of Title 2 of Part Two

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• (1) In Article 9 —

• (a) for the first paragraph substitute—

In order to contribute to the Fund-specific missions, support for rural development ... must support the following thematic objectives:

• (b) in point (3), for “(for the EAFRD)” substitute “ “(for support for rural development)” ...;

• (c) in the second and third paragraphs, for “each of the ESI Funds” substitute “ support for rural development ...”;

• (d) in the third paragraph, for “each ESI Fund”, substitute “ support for rural development ... ”.

• (2) In Article 10—

• (a) for paragraph 1 substitute—

(1) In order to promote harmonious, balanced and sustainable development, a Common Strategic Framework (“CSF”) is hereby established as set out in Annex I. The CSF establishes strategic guiding principles to facilitate the programming process and the sectoral and territorial coordination of intervention through support for rural development ..., taking into account the key territorial challenges of the various types of territories.

• (b) for paragraph 2 substitute—

(2) The strategic guiding principles as set out in the CSF shall be established in line with the purpose and within the scope of the support for rural development ..., and in line with this Regulation and the Fund-specific rules. The CSF shall not impose additional obligations upon constituent nations beyond those set out within the framework of the relevant sectorial policies.

• (c) in paragraph 3 omit “the Partnership Agreement and”.

• (3) In Article 11 —

• (a) omit point (a);

• (b) for “the ESI Funds”, in each place it occurs, substitute “ support for rural development ...”;

• (c) in point (c), for the words from “other relevant Union” to “for co-operation” substitute “ direct payment support and CMO support ”;

• (d) in point (e) omit “as referred to in Article 174 TFEU and the specific challenges of outermost regions within the meaning of Article 349 TFEU”;

• (e) in point (f) omit the words from “taking account” to “strategies”.

• (4) In Article 12 omit the first paragraph.

• (5) Omit Articles 13 to 18.

• (6) For Article 19 substitute—

The relevant authority must assess in accordance with its institutional and legal framework and in the context of the preparation of it programmes whether the ex ante conditionalities laid down in the respective Fund-specific rules and the general ex ante conditionalities set out in Part II of Annex XI are applicable to the specific objectives pursued within the priorities of their programmes and whether the applicable ex ante conditionalities are fulfilled.

• (7) Omit Articles 20 to 25.

Amendment of Title 3 of Part Two

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• (1) For Article 26 substitute—

Support for rural development ... must be implemented through programmes. Each programmes shall cover the period from 1 January 2014 to 31 December 2020.

• (2) In Article 27—

• (a) omit the first subparagraph of paragraph 1;

• (b) in the second subparagraph of paragraph 1, for “the ESI Funds” substitute “ support for rural development ...”;

• (c) in paragraph 2—

• (i) for “from the ESI Funds” substitute “ for rural development ... ”;

• (ii) omit “, including amounts related to the performance reserve,”;

• (d) omit paragraph 3;

• (e) in paragraph 4, for “For each ESI Fund, the” substitute “ The ”;

• (f) in paragraph 7, for “Member States”, substitute “ The authority with responsibility for preparing the programme ”.

• (3) Omit Articles 28 and 29.

• (4) For Article 30 substitute—

Programmes may be amended by the relevant authority as set out in the Fund-specific regulations. The relevant authority must take into account this Regulation, the Fund-specific rules, the horizontal principles referred to in Article 5-7 and the expected impact of the changes to the programme on the programme's objectives.

• (5) Omit Article 31.

• (6) In Article 32 —

• (a) for paragraph 1 substitute—

(1) Support for rural development must be provided by the relevant authority for community-led led local development. ....

• (b) for the first sentence of paragraph 3, substitute “ Where support for rural development is made available to community-led local development it must be done so in a consistent and coordinated way. ”;

• (c) omit paragraph 4;

• (d) for paragraph 5 substitute—

(5) Community-led local development funded by support for rural development must be carried out under one or more priorities of the relevant programme or programmes in accordance with the Fund-specific rules.

• (7) In Article 33—

• (a) in paragraph 1—

• (i) for the last sentence of point (c) substitute “ The strategy shall be consistent with the relevant programmes. ”;

• (ii) in point (g), for “each of the ESI Funds concerned” substitute “ support for rural development ”;

• (b) in paragraph 2, for “Member States” substitute “ The relevant authority ”;

• (c) omit paragraph 4;

• (d) in paragraph 5, for “of each of the ESI Funds concerned” substitute “ from the relevant programmes ”;

• (e) in paragraph 6 omit the second sentence.

• (8) In paragraph 1 of Article 34, for “Member States” substitute “ The relevant authority ”.

• (9) In the heading to Article 35 omit “from the ESI Funds”;