Commission Regulation (EC) No 2035/2005 of 12 December 2005 amending Regulation (EC) No 1681/94 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies and the organisation of an information system in this field
Commission Regulation (EC) No 2035/2005of 12 December 2005amending Regulation (EC) No 1681/94 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies and the organisation of an information system in this fieldTHE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural FundsOJ L 161, 26.6.1999, p. 1. Regulation as last amended by Regulation (EC) No 173/2005 (OJ L 29, 2.2.2005, p. 3)., and in particular Article 53(2) thereof,After consulting the committee established under Article 147 of the Treaty, the Committee on Agricultural Structures and Rural Development and the Standing Management Committee on Fisheries Structures,Whereas:(1)Article 54 of Regulation (EC) No 1260/1999 repealed Council Regulation (EEC) No 4253/88 of 19 December 1988 laying down provisions for implementing Regulation (EEC) No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instrumentsOJ L 374, 31.12.1988, p. 1..(2)Article 54 of Regulation (EC) No 1260/1999 provides that references to the repealed Regulation (EEC) No 4253/88 should be construed as references to Regulation (EC) No 1260/1999. Accordingly, Commission Regulation (EC) No 1681/94OJ L 178, 12.7.1994, p. 43. applies to the measures adopted under Regulation (EC) No 1260/1999.(3)Regulation (EC) No 1681/94 should be updated in order to enhance the effectiveness of the system for reporting irregularities.(4)For reasons of legal certainty, it is necessary to clearly specify that the provisions of Regulation (EC) No 1681/94 must also apply to all forms of financial assistance under Regulation (EC) No 1260/1999 as they are described in Regulation (EC) No 1783/1999 of the European Parliament and of the Council of 12 July 1999 on the European Regional Development FundOJ L 213, 13.8.1999, p. 1., in Regulation (EC) No 1784/1999 of the European Parliament and of the Council of 12 July 1999 on the European Social FundOJ L 213, 13.8.1999, p. 5., in Council Regulation (EC) No 1263/1999 of 21 June 1999 on the financial instrument for fisheries guidanceOJ L 161, 26.6.1999, p. 54., and in Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain RegulationsOJ L 160, 26.6.1999, p. 80. Regulation as last amended by Regulation (EC) No 2223/2004 (OJ L 379, 24.12.2004, p. 1)..(5)It is necessary to clarify to what extent a Member State participating in cross-border transnational and interregional cooperation under Article 20(1)(a) of Regulation (EC) No 1260/1999, known as the "Interreg" programmes, or in any other programmes having a transnational character, are required to notify irregularities.(6)It is necessary to specify that the definition of "irregularity" used for the purposes of Regulation (EC) No 1681/94 is taken from Article 1(2) of Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities’ financial interestsOJ L 312, 23.12.1995, p. 1..(7)It is necessary to define the term "suspected fraud", taking account of the definition of fraud contained in the Convention of 26 July 1995 on the protection of the European Communities’ financial interestsOJ C 316, 27.11.1995, p. 49..(8)It is necessary to establish that the definition of "First administrative or judicial finding of fact" is taken from Article 35 of Council Regulation (EC) No 1290/2005 relating to the financing of the common agricultural policyOJ L 209, 11.8.2005, p. 1..(9)It is also necessary to define the terms "bankruptcy" and "economic operator".(10)In order to enhance the added value of the reporting system, the obligation to report cases of suspected fraud for the purposes of risk analysis should be more closely determined, and for this purpose the quality of the information supplied should be ensured.(11)It should be clearly stated that Regulation (EC) No 1681/94 will remain applicable to cases of irregularities of less than EUR 10000 already reported.(12)It is necessary to clarify the question as to the charging of unrecovered amounts in connection with the forms of assistance governed by Regulation (EC) No 1260/1999 and to specify the information needed for dealing with such cases.(13)In order to reduce the burden imposed by reporting on the Member States and to improve efficiency, it is necessary to increase the minimum threshold above which irregularities have to be reported by Member States and to determine those cases in which no reporting obligation arises.(14)Regulation (EC) No 1681/94 should apply without prejudice to Article 8 of Commission Regulation (EC) No 438/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the management and control systems for assistance granted under the Structural FundsOJ L 63, 3.3.2001, p. 21. Regulation as amended by Regulation (EC) No 2355/2002 (OJ L 351, 28.12.2002, p. 42)..(15)Account must be taken of the obligations arising out of Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such dataOJ L 8, 12.1.2001, p. 1. and Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such dataOJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation (EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1)..(16)Conversion rates should be established for Member States outside the euro zone.(17)Regulation (EC) No 1681/94 should be amended accordingly.(18)The measures provided for in this Regulation are in accordance with the opinion of the Advisory Committee on the Development and Conversion of Regions,HAS ADOPTED THIS REGULATION: