Article 2 — Amendments to Regulation (EU) 2021/2116

Regulation (EU) 2021/2116 is amended as follows: (1) in Article 9(3), first subparagraph, point (b) is replaced by the following: (b) the annual performance report referred to in Article 134 of Regulation (EU) 2021/2115 showing that the expenditure was effected in accordance with Article 37 of this Regulation; ; (2) in Article 10(1), point (b) is replaced by the following: (b) to supply the Commission with the annual performance report referred to in Article 134 of Regulation (EU) 2021/2115; ; (3) in Article 12(2), first subparagraph, point (c) is replaced by the following: (c) the performance reporting on output indicators and the performance reporting on result indicators for the multiannual performance monitoring referred to in Article 128 of Regulation (EU) 2021/2115, demonstrating that Article 37 of this Regulation has been complied with, is correct; ; (4) Article 21 is amended as follows: (a) paragraph 1 is replaced by the following: 1. Without prejudice to Articles 53 and 55, monthly payments shall be made by the Commission for expenditure effected by accredited paying agencies during the reference month. ; (b) in paragraph 2, the following subparagraph is added: However, expenditure referred to in Article 86(2) of Regulation (EU) 2021/2115 which cannot be declared to the Commission in the month concerned due to the pending approval by the Commission of an amendment to the CAP Strategic Plan in accordance with Article 119(10) of that Regulation may be declared in the subsequent months of the same financial year or, or at the latest, in the annual accounts of that financial year to be sent to the Commission in accordance with Article 90(1), point (c)(iii), of this Regulation. ; (5) in Article 32, paragraph 8 is replaced by the following: 8. Without prejudice to Articles 53 and 55, the Commission shall make interim payments within 45 days of registering a declaration of expenditure which meets the requirements laid down in paragraph 6 of this Article. ; (6) Article 40 is amended as follows: (a) paragraph 2 is deleted; (b) paragraph 4 is replaced by the following: 4. The implementing acts referred to in paragraph 1 of this Article shall be adopted in accordance with the advisory procedure referred to in Article 103(2). Before adopting the implementing acts referred to in paragraph 1 of this Article the Commission shall inform the Member State concerned of its intention and shall give the Member State the opportunity to submit its comments within a period which shall not be less than 30 days. ; (7) in Article 44(2), the second subparagraph is replaced by the following: Notwithstanding the first subparagraph, Member States may: (a) prior to 1 December, but not before 16 October, pay advances of up to 70 % for interventions in the form of direct payments and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013; (b) prior to 1 December pay advances of up to 85 % for the support granted under interventions for rural development referred to in Article 65(2) of this Regulation. ; (8) in Article 45(1), point (a) is replaced by the following: (a) as regards expenditure under both the EAGF and the EAFRD, sums under Articles 38 and 55 of this Regulation and Article 54 of Regulation (EU) No 1306/2013 applicable in accordance with Article 104 of this Regulation and, as regards expenditure under the EAGF, sums under Articles 53 and 56 of this Regulation which are to be paid into the Union budget, including interest thereon; ; (9) in Article 53(1), the second subparagraph is replaced by the following: Those implementing acts shall cover the completeness, accuracy and veracity of the annual accounts submitted and shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to Article 55. ; (10) Article 54 is deleted; (11) in Article 57, the following paragraph is added: 3. The bodies implementing financial instruments shall reimburse to Member States programme contributions affected by irregularities, together with interest and any other gains generated by those contributions. By way of derogation from paragraph 1, the bodies implementing financial instruments shall not reimburse to Member States the amounts referred to in the first subparagraph of this paragraph provided that those bodies demonstrate, for a given irregularity, that all the following conditions are fulfilled: (a) the irregularity occurred at the level of final recipients or, in the case of a holding fund, at the level of bodies implementing specific funds or final recipients; (b) the bodies implementing financial instruments carried out their obligations, in relation to the programme contributions affected by the irregularity, in accordance with applicable law and acted with the degree of professional care, transparency and diligence expected from a professional body experienced in implementing financial instruments; and (c) the amounts affected by the irregularity could not be recovered even though the bodies implementing financial instruments pursued all applicable contractual and legal measures with due diligence. ; (12) in Article 60(1), the following subparagraph is added: Where a beneficiary has been selected for an on-the-spot check on an aid application, on a payment claim or on the compliance with the rules on conditionality pursuant to Article 83, Member States shall, as far as possible and taking account of the associated risks, not select that beneficiary for a subsequent check and control sample for that year, except when circumstances require a further check in order to ensure the effective protection of the financial interests of the Union. This provision shall not reduce the level of checks. ; (13) in Article 67(1), the first subparagraph is replaced by the following: Member States shall record and keep any data and documentation on the annual outputs reported in the context of the reported progress towards targets set out in the CAP Strategic Plan and monitored in accordance with Article 128 of Regulation (EU) 2021/2115. ; (14) in Article 68, paragraph 3 is deleted; (15) Article 69 is amended as follows: (a) paragraph 6 is deleted; (b) the following paragraph is added: 7. Member States shall make it possible for the beneficiaries to opt out of the decision referred to in Article 4(3), point (c), second subparagraph, of Regulation (EU) 2021/2115. Member States shall ensure that the beneficiaries wishing to opt out do so at the latest in the claim year in which that decision is implemented. Where a Member State has taken the decision referred to in Article 4(3), point (c), second subparagraph, of Regulation (EU) 2021/2115, it shall ensure that beneficiaries who have already submitted the application referred to in paragraph 1 of this Article have a possibility to amend or withdraw, totally or partially, their application. If Member States fail to ensure that beneficiaries have that possibility, they shall not impose any penalty on the beneficiaries as a result of that decision. ; (16) in Article 70, paragraph 2 is deleted; (17) the following Article is inserted: Article 70a Quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system Member States shall annually assess the quality of the elements referred to in Articles 68, 69 and 70 in accordance with the methodology established at Union level. Where the assessment reveals deficiencies in the systems, the Member State concerned shall adopt appropriate remedial actions or, failing that, the Commission shall request that that Member State establish an action plan in accordance with Article 42. Following the assessment referred to in the first paragraph, Member States shall submit to the Commission an assessment report and, where appropriate, the remedial actions and the timetable for their implementation by 15 February following the calendar year concerned. ; (18) Article 72 is replaced by the following: Article 72 Control and penalty system Member States shall set up a control and penalty system referred to in Article 66(1), point (e). Member States, through the paying agencies or the bodies delegated by them, shall annually carry out administrative checks on the aid application and payment claims to verify legality and regularity in accordance with Article 59(1), point (a). Those checks shall be supplemented by on-the-spot checks, which may be executed remotely through the use of technology. However, Member States may choose not to carry out on-the-spot checks where the eligibility conditions of interventions are monitored under the area monitoring system referred to in Article 70. ; (19) in Article 74, point (a) is replaced by the following: (a) rules on the quality assessment referred to in Article 70a; ; (20) Article 75 is replaced by the following: Article 75 Implementing powers relating to Articles 68 to 70a The Commission may adopt implementing acts laying down rules on: (a) the form and content, and the arrangements for transmitting or making available to the Commission, of: (i) the assessment reports referred to in Article 70a; (ii) the remedial actions referred to in Article 70a; (b) basic features of, and rules on, the aid application system under Article 69 and the area monitoring system referred to in Article 70, including the parameters of the gradual increase of the number of interventions under the area monitoring system. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3). ; (21) Article 83 is amended as follows: (a) the following paragraph is inserted: 1a. By way of derogation from paragraph 1 of this Article, the control system for conditionality shall not apply to beneficiaries receiving payments referred to in Article 28 of Regulation (EU) 2021/2115. ; (b) paragraph 2 is replaced by the following: 2. The beneficiaries listed in paragraph 1 of this Article shall be exempt from controls under the system set up in accordance with that paragraph where the area eligible for the payments and the support referred to in that paragraph declared in the geo-spatial application referred to in Article 69(1) does not exceed 10 hectares. ; (c) the following paragraph is inserted: 2a. Farmers with a maximum size of holding not exceeding 30 hectares of agricultural area declared in accordance with Article 69(1) of this Regulation shall be exempt from controls of GAEC standard 7 requirements, as defined in Annex III to Regulation (EU) 2021/2115, under a system set up in accordance with paragraph 1 of this Article. ; (d) paragraph 3 is replaced by the following: 3. Member States may make use of their existing control systems and administration to ensure compliance with the rules on conditionality. Those systems shall be compatible with the control systems referred to in paragraph 1. ; (e) paragraph 4 is deleted; (f) paragraph 6 is amended as follows: (i) the introductory part is replaced by the following: 6. In order to comply with their control obligations laid down in paragraphs 1 and 3, Member States: ; (ii) point (d) is replaced by the following: (d) shall establish the control sample for the on-the-spot checks referred to in point (a) of this paragraph to be carried out each year on the basis of an annual risk analysis that includes a random component and covers at least 1 % of the beneficiaries listed in paragraph 1 of this Article; where, pursuant to Article 60(1), third subparagraph, they do not select a beneficiary for a check or control sample, they shall ensure that the minimum control rate is respected; ; (22) Article 84 is amended as follows: (a) the following paragraph is inserted: 1a. By way of derogation from paragraph 1 of this Article, the system of administrative penalties for conditionality shall not apply to beneficiaries receiving payments referred to in Article 28 of Regulation (EU) 2021/2115. ; (b) paragraph 4 is replaced by the following: 4. The beneficiaries listed in Article 83(1) shall be exempt from the penalties referred to in paragraph 1 of this Article where the area eligible for the payments and the support referred to in Article 83(1) declared in the geo-spatial application referred to in Article 69(1) does not exceed 10 hectares. ; (c) the following paragraph is added: 5. Farmers with a maximum size of holding not exceeding 30 hectares of agricultural area declared in accordance with Article 69(1) of this Regulation shall be exempt from the penalties of GAEC standard 7 requirements, as defined in Annex III to Regulation (EU) 2021/2115, as referred to in paragraphs 1, 2 and 3 of this Article and in Article 85 of this Regulation. ; (23) Article 102 is amended as follows: (a) paragraphs 2 and 3 are replaced by the following: 2. The power to adopt delegated acts referred to in Article 11(1), Article 17(5), Article 23(2), Article 38(2), Article 40(3), Article 41(3), Article 44(4) and (5), Article 47(1), Article 52(1), Article 55(6), Article 60(3), Article 64(3), Article 74, Article 76(2), Article 85(7), Article 89(2), Article 94(5) and (6), Article 95(2) and Article 105 shall be conferred on the Commission for a period of seven years from 7 December 2021. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the seven-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period. 3. The delegation of power referred to in Article 11(1), Article 17(5), Article 23(2), Article 38(2), Article 40(3), Article 41(3), Article 44(4) and (5), Article 47(1), Article 52(1), Article 55(6), Article 60(3), Article 64(3), Article 74, Article 76(2), Article 85(7), Article 89(2), Article 94(5) and (6), Article 95(2) and Article 105 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. ; (b) paragraph 6 is replaced by the following: 6. A delegated act adopted pursuant to Article 11(1), Article 17(5), Article 23(2), Article 38(2), Article 40(3), Article 41(3), Article 44(4) and (5), Article 47(1), Article 52(1), Article 55(6), Article 60(3), Article 64(3), Article 74, Article 76(2), Article 85(7), Article 89(2), Article 94(5) and (6), Article 95(2) and Article 105 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. ; (24) in Article 103(1), the second subparagraph is replaced by the following: For the purposes of Articles 11, 12, 17, 18, 23, 26, 32, 39 to 44, 47, 51 to 53, 55, 58, 59, 60, 64, 75, 82, 92, 95 and 100, as regards matters relating to interventions in the form of direct payments, interventions in certain sectors, interventions for rural development and the common organisation of markets, the Commission shall be assisted by the Committee on the Agricultural Funds, the Common Agricultural Policy Committee established by Regulation (EU) 2021/2115 and the Committee for the Common Organisation of the Agricultural Markets established by Regulation (EU) No 1308/2013, respectively..