Commission Implementing Decision (EU) 2024/2866of 13 November 2024excluding from European Union financing certain expenditure incurred by the United Kingdom under the European Agricultural Fund for Rural Development (EAFRD)(notified under document C(2024) 7808)(Only the English text is authentic)

Commission Implementing Decision (EU) 2024/2866 of 13 November 2024 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(2024) 7808) (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) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 OJ L 435, 6.12.2021, p. 187, ELI: http://data.europa.eu/eli/reg/2021/2116/oj. , and in particular Article 104 thereof, Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on 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 OJ L 347, 20.12.2013, p. 549, ELI: http://data.europa.eu/eli/reg/2013/1306/oj. , 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) Article 104(1), second subparagraph, point (a)(iv), of Regulation (EU) 2021/2116 provides that Article 4(1), point (b), Article 5, Article 7(3), Articles 9, 17, 21 and 34, Article 35(4), Articles 36, 37, 38, 40 to 43, 51, 52, 54, 56, 59, 63, 64, 67, 68, 70 to 75, 77, 91 to 97, 99 and 100, Article 102(2) and Articles 110 and 111 of Regulation (EU) No 1306/2013 continue to apply, as regards the European Agricultural Fund for Rural Development (EAFRD), in relation to expenditure incurred by the beneficiaries and payments made by the paying agency in the framework of the implementation of rural development programmes pursuant to Regulation (EU) No 1305/2013 of the European Parliament and of the Council Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, p. 487, ELI: http://data.europa.eu/eli/reg/2013/1305/oj). . (2) 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. (3) The United Kingdom has had an opportunity to request the launch of a conciliation procedure. That opportunity has not been used.

(4) 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. (5) 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. (6) 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 24 months before the Commission’s written notification of the results of the verifications to the United Kingdom, except where otherwise provided for in Article 52(4), points (b) and (c), and Article 52(5) of Regulation (EU) No 1306/2013. (7) 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. (8) As regards the cases covered by this Decision, the Commission notified the assessment of the amounts to be excluded on grounds of non-compliance with Union law to the United Kingdom in a summary report on the subject Ares(2024)6628762. . (9) 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 23 August 2024, 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, 13 November 2024. For the Commission Janusz Wojciechowski Member of the Commission

Annex

ANNEX Financial Corrections EAFRD Financial corrections - excluding cross-compliance Budget Item: 08030102 Member StateMeasureFYReasonTypeCorrection %CurrencyGross AmountDeductionsNet DecidedGBRural Development EAFRD investment - private beneficiaries2023RESONABLENESS OF COSTS - M 4 FOR 2023FLAT RATE5,00%EUR6177,530,006177,53Rural Development EAFRD Measures with flat-rate support2023RESONABLENESS OF COSTS - M 6 FOR 2023FLAT RATE5,00%EUR68,010,0068,01Total GB:EUR6245,540,006245,54CurrencyGross AmountDeductionsNet DecidedEUR6245,540,006245,54 Budget Item: 6201 Member StateMeasureFYReasonTypeCorrection %CurrencyGross AmountDeductionsNet DecidedGBRural Development EAFRD measures subject to IACS202008/06/2020 - 15/10/2020FLAT RATE15,00%EUR–213798,030,00–213798,03Rural Development EAFRD measures subject to IACS202316-10-2022 31-12-2022FLAT RATE15,00%EUR–5060,950,00–5060,95 Rural Development EAFRD Measures with flat-rate support20192nd hand equipement - M6ONE OFFEUR–106766,630,00–106766,63Rural Development EAFRD Measures with flat-rate support20202nd hand equipement - M6ONE OFFEUR–188753,250,00–188753,25Rural Development EAFRD Measures with flat-rate support20212nd hand equipement - M6ONE OFFEUR–89565,210,00–89565,21Rural Development EAFRD Measures with flat-rate support20222nd hand equipement - M6ONE OFFEUR–7598,310,00–7598,31Rural Development EAFRD Leader20202nd hand equipemnt - M19ONE OFFEUR–370365,19–1756,90–368608,29Rural Development EAFRD Leader20212nd hand equipemnt - M19ONE OFFEUR–146275,810,00–146275,81Rural Development EAFRD investment - public beneficiaries20202nd hand equipment - M7ONE OFFEUR–18777,58–504,34–18273,24Rural Development EAFRD Leader2018aid rate granted higher than requested - M19ONE OFFEUR–22494,010,00–22494,01Rural Development EAFRD Leader2019aid rate granted higher than requested - M19ONE OFFEUR–5039,860,00–5039,86

Rural Development EAFRD investment - public beneficiaries2020aid rate granted higher than requested - M7ONE OFFEUR–413325,22–11101,30–402223,92Rural Development EAFRD investment - public beneficiaries2021aid rate granted higher than requested - M7ONE OFFEUR–60797,390,00–60797,39Rural Development EAFRD Knowledge and innovation2020Appropriate evaluation of the reasonableness of costs M01-M16ONE OFFEUR–22757,800,00–22757,80Rural Development EAFRD Knowledge and innovation2021Appropriate evaluation of the reasonableness of costs M01-M16ONE OFFEUR–23348,860,00–23348,86Rural Development EAFRD investment - private beneficiaries2021Appropriate evaluation of the reasonableness of costs M04ONE OFFEUR–21167,990,00–21167,99Rural Development EAFRD investment - public beneficiaries2020Appropriate evaluation of the reasonableness of costs M07-M20ONE OFFEUR–3204,000,00–3204,00Rural Development EAFRD investment - public beneficiaries2021Appropriate evaluation of the reasonableness of costs M07-M20ONE OFFEUR–8185,620,00–8185,62Rural Development EAFRD Leader2020Appropriate evaluation of the reasonableness of costs M19ONE OFFEUR–3814,990,00–3814,99Rural Development EAFRD Leader2021Appropriate evaluation of the reasonableness of costs M19ONE OFFEUR–25957,110,00–25957,11 Rural Development EAFRD Knowledge and innovation2020Controls on payment claims delegated to a third party - actual disbursement not verifiedONE OFFEUR–10400,900,00–10400,90Rural Development EAFRD Knowledge and innovation2021Controls on payment claims delegated to a third party - actual disbursement not verifiedONE OFFEUR–15261,750,00–15261,75Rural Development EAFRD investment - private beneficiaries2020Controls on payment claims of projects approved on the basis of a generic list of cost headingsONE OFFEUR–152742,770,00–152742,77Rural Development EAFRD investment - private beneficiaries2021Controls on payment claims of projects approved on the basis of a generic list of cost headingsONE OFFEUR–158715,740,00–158715,74Rural Development EAFRD investment - private beneficiaries2022Controls on payment claims of projects approved on the basis of a generic list of cost headingsONE OFFEUR–178535,450,00–178535,45Rural Development EAFRD measures subject to IACS2022EAFRD IACS: known errors identified by CB (substantive testing)ONE OFFEUR–7178,200,00–7178,20Rural Development EAFRD measures subject to IACS2022EAFRD IACS - most probable financial risk above materialityONE OFFEUR–2068375,830,00–2068375,83Rural Development EAFRD Knowledge and innovation2022EAFRD NIACS: known error identified by CB (compliance testing)ONE OFFEUR–805627,840,00–805627,84 Clearance of Accounts - Financial Clearance2022EAFRD NIACS: most probable financial riskONE OFFEUR–768046,800,00–768046,80Rural Development EAFRD Knowledge and innovation2020Eligibility of costs incurred before the date of the application for support, and of costs found ineligible by previous controls, and then claimed againONE OFFEUR–1628649,040,00–1628649,04Rural Development EAFRD Knowledge and innovation2021Eligibility of costs incurred before the date of the application for support, and of costs found ineligible by previous controls, and then claimed againONE OFFEUR–231039,970,00–231039,97Rural Development EAFRD measures subject to IACS2021FY2021-2022FLAT RATE15,00%EUR–944774,85–89,11–944685,74Rural Development EAFRD measures subject to IACS2022FY2021-2022FLAT RATE15,00%EUR–920972,580,00–920972,58Rural Development EAFRD measures subject to IACS2022IACS - Weaknesses in Administrative checks FY2022ONE OFFEUR–219732,920,00–219732,92Rural Development EAFRD measures subject to IACS2022Known errors identified by CB (compliance testing)ONE OFFEUR–47313,370,00–47313,37Rural Development EAFRD investment - public beneficiaries2020M20 Public procurementONE OFFEUR–4537,97–121,88–4416,09Rural Development EAFRD investment - private beneficiaries2022NIACS - Weaknesses in Administrative checks FY2022ONE OFFEUR–16463,480,00–16463,48

Rural Development EAFRD Leader2020Projects below the threshold - M19ONE OFFEUR–48354,13–229,38–48124,75Rural Development EAFRD investment - private beneficiaries2020projects financed despite being below the threshold - CPSG - M4ONE OFFEUR–151738,740,00–151738,74Rural Development EAFRD Leader2017RESONABLENESS OF COSTS - M19FLAT RATE5,00%EUR–28152,020,00–28152,02Rural Development EAFRD Leader2018RESONABLENESS OF COSTS - M19FLAT RATE5,00%EUR–117164,650,00–117164,65Rural Development EAFRD Leader2019RESONABLENESS OF COSTS - M19FLAT RATE5,00%EUR–908284,560,00–908284,56Rural Development EAFRD Leader2020RESONABLENESS OF COSTS - M19FLAT RATE5,00%EUR–1484845,90–797614,67–687231,23Rural Development EAFRD Leader2021RESONABLENESS OF COSTS - M19FLAT RATE5,00%EUR–537908,500,00–537908,50Rural Development EAFRD Leader2022RESONABLENESS OF COSTS - M19FLAT RATE5,00%EUR–185598,870,00–185598,87Rural Development EAFRD Leader2023RESONABLENESS OF COSTS - M 19 FOR 2023FLAT RATE5,00%EUR–197334,630,00–197334,63Rural Development EAFRD investment - private beneficiaries2017RESONABLENESS OF COSTS - M4FLAT RATE5,00%EUR–25631,05–726,75–24904,30Rural Development EAFRD investment - private beneficiaries2018RESONABLENESS OF COSTS - M4FLAT RATE5,00%EUR–83545,710,00–83545,71 Rural Development EAFRD investment - private beneficiaries2019RESONABLENESS OF COSTS - M4FLAT RATE5,00%EUR–1515062,40–489,46–1514572,94Rural Development EAFRD investment - private beneficiaries2020RESONABLENESS OF COSTS - M4FLAT RATE5,00%EUR–1731328,25–930017,59–801310,66Rural Development EAFRD investment - private beneficiaries2021RESONABLENESS OF COSTS - M4FLAT RATE5,00%EUR–825535,600,00–825535,60Rural Development EAFRD investment - private beneficiaries2022RESONABLENESS OF COSTS - M4FLAT RATE5,00%EUR–874059,350,00–874059,35Rural Development EAFRD Measures with flat-rate support2017RESONABLENESS OF COSTS - M6FLAT RATE5,00%EUR–5779,060,00–5779,06Rural Development EAFRD Measures with flat-rate support2018RESONABLENESS OF COSTS - M6FLAT RATE5,00%EUR–63561,960,00–63561,96Rural Development EAFRD Measures with flat-rate support2019RESONABLENESS OF COSTS - M6FLAT RATE5,00%EUR–401710,750,00–401710,75Rural Development EAFRD Measures with flat-rate support2020RESONABLENESS OF COSTS - M6FLAT RATE5,00%EUR–592848,60–318460,48–274388,12Rural Development EAFRD Measures with flat-rate support2021RESONABLENESS OF COSTS - M6FLAT RATE5,00%EUR–552174,800,00–552174,80 Rural Development EAFRD Measures with flat-rate support2022RESONABLENESS OF COSTS - M6FLAT RATE5,00%EUR–652633,600,00–652633,60Rural Development EAFRD investment - public beneficiaries2018RESONABLENESS OF COSTS - M7FLAT RATE5,00%EUR–1475,180,00–1475,18Rural Development EAFRD investment - public beneficiaries2019RESONABLENESS OF COSTS - M7FLAT RATE5,00%EUR–63317,05–36,91–63280,14Rural Development EAFRD investment - public beneficiaries2020RESONABLENESS OF COSTS - M7FLAT RATE5,00%EUR–295081,51–158742,40–136339,11Rural Development EAFRD investment - public beneficiaries2021RESONABLENESS OF COSTS - M7FLAT RATE5,00%EUR–291009,630,00–291009,63Rural Development EAFRD investment - public beneficiaries2022RESONABLENESS OF COSTS - M7FLAT RATE5,00%EUR–189686,450,00–189686,45Rural Development EAFRD investment - public beneficiaries2023RESONABLENESS OF COSTS - M 7 FOR 2023FLAT RATE5,00%EUR–20134,950,00–20134,95Total GB:EUR–21779381,17–2219891,17–19559490,00CurrencyGross AmountDeductionsNet DecidedEUR–21779381,17–2219891,17–19559490,00