Introductory text

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007^f1, and in particular Article 220(1)(a) thereof,

Whereas:

Between 30 April 2016 and 28 September 2017, 43 outbreaks of highly pathogenic avian influenza of subtype H5 and H7 were confirmed and notified by Italy. The species affected are ducks, turkeys, Guinea fowls, and Gallus domesticus chicks, chickens, pullets and laying hens.

Italy immediately and efficiently took all the necessary animal health and veterinary measures required in accordance with Council Directive 2005/94/EC^f2.

In particular, Italy took control, monitoring and preventive measures and established protection and surveillance zones (‘the regulated zones’) pursuant to Commission Implementing Decisions (EU) 2016/697^f3, (EU) 2017/155^f4, (EU) 2017/247^f5 (EU) 2017/263^f6, (EU) 2017/417^f7, (EU) 2017/554^f8, (EU) 2017/696^f9, (EU) 2017/780^f10, (EU) 2017/977^f11, (EU) 2017/1397^f12, (EU) 2017/1415^f13, (EU) 2017/1484^f14, (EU) 2017/1519^f15 and (EU) 2017/1593^f16.

Italy informed the Commission that the necessary health and veterinary measures, which had been applied to contain and eradicate the spread of the disease, had affected a very large number of operators and that those operators suffered income losses not eligible for Union financial contribution under Regulation (EU) No 652/2014 of the European Parliament and of the Council^f17.

On 9 March 2018, the Commission received a formal request from Italy for part-financing of certain exceptional measures pursuant to Article 220(3) of Regulation (EU) No 1308/2013 for the outbreaks confirmed between 30 April 2016 and 28 September 2017. On 1 June 2018, 14 June 2018, 22 June 2018 and 11 July 2018 Italian authorities clarified and documented their request.

As a result of the animal health and veterinary measures referred to in recital 3, fallowing periods were prolonged, placing of birds was prohibited and movements were restricted on holdings of all types of poultry in the regulated zones established following outbreaks of highly pathogenic avian influenza of subtype H5 and H7. This concerned the following species: ducks, turkeys, Guinea fowls, and Gallus domesticus chicks, chickens, pullets and laying hens. This led to a loss of production of hatching eggs, consumption eggs and poultry meat in these holdings. It is therefore appropriate to compensate the losses due to destructed, processed and downgraded eggs as well as non-produced animals, longer rearing or culling.

In accordance with Article 220(5) of Regulation (EU) No 1308/2013, the Union part-financing has to be equivalent to 50 % of the expenditure borne by Italy for the exceptional market support measures. The maximum quantities eligible for financing in respect of each exceptional market support measure should be fixed by the Commission after scrutinising the request related to outbreaks confirmed between 30 April 2016 and 28 September 2017 received from Italy.

To avoid any risk of overcompensation, the flat rate amount of part-financing should be based on technical and economic studies or accounting documents and fixed at an appropriate level for each animal and product according to categories.

To avoid any risk of double funding, losses suffered should not have been compensated by state aid or insurance and the Union part-financing under this Regulation should be limited to eligible animals and products for which no Union financial contribution has been received under Regulation (EU) No 652/2014.

The extent and duration of the exceptional market support measures provided for in this Regulation should be limited to what is strictly necessary to support the market. In particular, the exceptional market support measures should apply only to the production of poultry and eggs in the holdings located in the regulated zones and for the duration of the animal health and veterinary measures laid down in the Union and Italian legislation relevant to the 43 outbreaks of highly pathogenic avian influenza confirmed between 30 April 2016 and 28 September 2017, and to the respective regulated zones.

To ensure flexibility in case the numbers of animals or eggs eligible for compensation differ from the maximum numbers set in this Regulation which are based on estimates, compensation may be adjusted within certain limits, as long as the maximum amount of expenditure part-financed by the Union is respected.

For the sake of a sound budgetary management of these exceptional market support measures, only those payments made by Italy to beneficiaries by 30 September 2019 at the latest, should be eligible for Union part-financing. Article 5(2) of Commission Delegated Regulation (EU) No 907/2014^f18 should not be applicable.

In order to ensure the eligibility and the correctness of the payments, Italy should carry out ex-ante checks.

To allow the Union to perform its financial control, Italy should communicate to the Commission the clearance of payments.

In order to ensure an immediate implementation of the measures laid down in this Regulation by Italy, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

HAS ADOPTED THIS REGULATION: