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21.12.2011 Official
Journal
of
the
European
Union
L
339/1
I
(Legislative acts)
REGULATIONS
REGULATION (EU) No 1312/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 19 December 2011
amending Council Regulation (EC) No 1698/2005 as regards certain provisions relating to financial
management for certain Member States experiencing or threatened with serious difficulties with
respect to their financial stability
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
pressure through the maximal and optimal use of the
EUROPEAN UNION,
funding from the European Agricultural Fund for Rural
Development (EAFRD).
Having regard to the Treaty on the Functioning of the European
Union, and in particular Articles 42 and 43 thereof,
(3)
Based on Article 122(2) of the Treaty on the Functioning
of the European Union, which provides for the possibility
Having regard to the proposal from the European Commission,
of granting Union financial assistance to a Member State
in difficulties or seriously threatened with severe
difficulties caused by exceptional occurrences beyond its
After transmission of the draft legislative act to the national
control, Council Regulation (EU) No 407/2010 of
parliaments,
11 May 2010 establishing a European financial stabili
sation mechanism ( 3 ) established such mechanism with a
Having regard to the opinion of the European Economic and
view to preserving the financial stability of the Union.
Social Committee ( 1 ),
Acting in accordance with the ordinary legislative procedure (
(4) By
Council
Implementing
Decisions
2011/77/EU
( 4 ) and

2 ),
2011/344/EU ( 5 ) respectively, Ireland and Portugal were
granted such Union financial assistance. Greece was
Whereas:
experiencing serious difficulties with respect to its
financial stability before the entry into force of Regu
lation (EU) No 407/2010 and received financial
(1) The
unprecedented
global
financial
crisis
and
the
assistance, inter alia, from other euro area Member States.
unprecedented economic downturn have seriously
damaged economic growth and financial stability and
provoked a strong deterioration of financial and
economic conditions for several Member States. In
(5) Council
Regulation
(EC)
No
332/2002
of
18
February
particular, certain Member States are experiencing, or
2002 establishing a facility providing medium-term
are threatened with, serious difficulties, notably those
financial assistance for Member States’ balances of
connected with problems in their economic growth
payments ( 6 ) established an instrument providing that
and financial stability and with a deterioration in their
the Council is to grant medium-term financial assistance
deficit and debt position, due to the international
where a Member State, which has not adopted the euro,
economic and financial environment.
is in difficulties or is seriously threatened with difficulties
as regards its balance of payments.
(2)
Whilst important actions to counterbalance the negative
effects of the crisis have already been taken, including
amendments to the legislative framework, the impact of
(6) By
Council
Decisions
2009/102/EC
( 7 ), 2009/290/EC ( 8 )
and 2009/459/EC (
the financial crisis on the real economy, the labour

9 ) respectively, Hungary, Latvia and
Romania were granted such financial assistance.
market and the citizens is being widely felt. The
pressure on national financial resources is increasing
and further steps should now be taken to alleviate that
( 3 ) OJ L 118, 12.5.2010, p. 1.
( 4 ) OJ L 30, 4.2.2011, p. 34.
( 5 ) OJ L 159, 17.6.2011, p. 88.
( 1 ) Opinion of 27 October 2011.
( 6 ) OJ L 53, 23.2.2002, p. 1.
( 2 ) Position of the European Parliament of 13 December 2011 (not yet
( 7 ) OJ L 37, 6.2.2009, p. 5.
published in the Official Journal) and decision of the Council of
( 8 ) OJ L 79, 25.3.2009, p. 39.
15 December 2011.
( 9 ) OJ L 150, 13.6.2009, p. 8.

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L 339/2
EN
Official Journal of the European Union
21.12.2011
(7) The
period
during
which
financial
assistance
is
available (13) The
temporary
increase
in
co-financing
rates
should
also
to Ireland, Hungary, Latvia, Portugal and Romania is set
take account of the budgetary restraints facing all
out in the respective Council Decisions. Assistance to
Member States, and those budgetary restraints should
Hungary expired on 4 November 2010.
be reflected appropriately in the general budget of the
European Union. In addition, since the main purpose of
the mechanism is to address specific current difficulties,
(8) For
Greece,
the
Inter-creditor
Agreement
concluded
its application should be limited to expenditure incurred
together with the Loan Facility Agreement entered into
by the paying agencies until 31 December 2013.
force on 11 May 2010. The Inter-creditor Agreement
provides that the availability period is to expire on the
third anniversary of the date of that agreement.
(14) Regulation
(EC) No 1698/2005 should therefore be
amended accordingly.
(9)
On 11 July 2011, the finance ministers of the 17 euro
area Member States signed the Treaty establishing the
(15) Due to the urgent need to address the economic crisis,
European Stability Mechanism (ESM). That Treaty
this Regulation should enter into force immediately on
follows the European Council Decision 2011/199/EU of
publication,
25 March 2011 amending Article 136 of the Treaty on
the Functioning of the European Union with regard to a
stability mechanism for Member States whose currency is
HAVE ADOPTED THIS REGULATION:
the euro ( 1 ). It is anticipated that, by 2013, the ESM will
assume the tasks currently assumed by the European
Article 1
Financial Stability Facility (EFSF) and the European
Financial Stabilisation Mechanism (EFSM).
In Article 70 of Regulation (EC) No 1698/2005 the following
paragraph is inserted after paragraph 4b:
(10) In
its
conclusions
of
23
and
24
June
2011,
the
European
Council welcomed the Commission’s intention to
‘4c. By way of derogation from the ceilings set out in
enhance the synergies between the loan programme for
paragraphs 3, 4 and 5, the EAFRD contribution may be
Greece and the Union funds and supported all efforts to
increased up to a maximum of 95 % of eligible public expen
increase Greece’s capacity to absorb Union funds, in
diture in the regions eligible under the Convergence Objective
order to stimulate growth and employment, by refo
and the outermost regions and the smaller Aegean Islands,
cusing on improving competitiveness and employment
and 85 % of eligible public expenditure in other regions.
creation. Moreover, the European Council welcomed
These rates shall apply to the eligible expenditure newly
and supported the preparation by the Commission,
declared in each certified declaration of expenditure
together with the Member States, of a comprehensive
incurred during the period in which a Member State
programme of technical assistance to Greece. This
complies with one of the following conditions:
amendment to Council Regulation (EC) No 1698/2005
of 20 September 2005 on support for rural development
by the Agricultural Fund for Rural development
(a) financial assistance is made available to it under Council
(EAFRD) (
Regulation (EU) No 407/2010 of 11 May 2010 estab

2 ) contributes to such efforts to enhance
synergies.
lishing a European financial stabilisation mechanism (*) or
is made available to it by other euro area Member States
before the entry into force of that Regulation;
(11) In
order
to
facilitate
the
management
of
Union
funding,
to help accelerate the investments in Member States and
regions concerned and to increase the impact of the
(b) medium-term financial assistance is made available to it
funding on the economy, it is necessary to allow the
in accordance with Council Regulation (EC) No
EAFRD contribution rate to increase up to 95 % of
332/2002 of 18 February 2002 establishing a facility
eligible public expenditure in the regions eligible under
providing medium-term financial assistance for Member
the Convergence Objective and to increase up to 85 % of
States’ balances of payments (**);
eligible public expenditure in other regions which are
facing serious difficulties with respect to their financial
(c) financial assistance is made available to it in accordance
stability.
with the Treaty establishing the European Stability
Mechanism.
(12) In accordance with the general principles applicable
under Regulation (EC) No 1698/2005, the increased
A Member State wishing to make use of the derogation
co-financing rates are to apply only to payments to be
provided for in the first subparagraph shall submit a
made after the respective rural development programmes,
request to the Commission to modify its rural development
including the new financial plans, have been approved by
programme accordingly. The derogation shall apply from the
the Commission. It is therefore also necessary to
approval, by the Commission, of the modification of the
determine the procedure under which the Member
programme, and shall cease to apply once the Member
States may use that possibility as well as the
State no longer fulfils any of the conditions set out in
mechanism through which it will be ensured.
points (a), (b) or (c) of the first subparagraph. In any event,
the derogation provided for in the first subparagraph shall
( 1 ) OJ L 91, 6.4.2011, p. 1.
apply only to expenditure incurred by the paying agencies
( 2 ) OJ L 277, 21.10.2005, p. 1.
until 31 December 2013.

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21.12.2011 Official
Journal
of
the
European
Union
L
339/3
When the derogation provided for in the first subparagraph
comply with the maximum rates laid down in paragraphs 3,
ceases to apply, the Member State shall send the Commission
4 and 5, those rates shall become automatically applicable
a proposal for modification of the programme, including a
from that date.
new financing plan that complies with the maximum rates
applicable before the derogation.
___________
(*) OJ L 118, 12.5.2010, p. 1.
(**) OJ L 53, 23.2.2002, p. 1.’.
If a Member State does not submit to the Commission a
proposal for modifying its rural development programme,
Article 2
including a new financing plan, on the date that the dero
gation ceases to apply in accordance with the second
This Regulation shall enter into force on the day of its publi
subparagraph, or if the financing plan notified does not
cation in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 19 December 2011.
For the European Parliament
For the Council
The President
The President
J. BUZEK
M. KOROLEC

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