(1)

Pursuant to Article 104(1), second subparagraph, point (a), of Regulation (EU) 2021/2116, 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 of the European Parliament and of the Council (2) 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 (3) for the financial year 2025.

(2)

Pursuant to Article 64, second paragraph, point (a), of Commission Implementing Regulation (EU) 2022/128 (4), Article 2, Article 3(1), first subparagraph, Article 3(2), Article 4(1), point (b), Article 5, Article 6, Article 7, Articles 21 to 25, Article 27, Article 28, Article 29, Article 30(1), points (a), (b) and (c), Article 30(2), (3) and (4), and Articles 31 to 40 of Commission Implementing Regulation (EU) No 908/2014 (5) continue to apply, as regards the 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 for the financial year 2025.

(3)

Pursuant to Article 53 of Regulation (EU) 2021/2116, the Commission, on the basis of the annual accounts submitted by the Member States, accompanied by the information required for the clearance of accounts and an audit opinion regarding the completeness, accuracy and veracity of the accounts and the reports established by the certification bodies, is to clear the accounts of the paying agencies referred to in Article 9 of that Regulation prior to 31 May of the year following the budget year in question.

(4)

In accordance with Article 35 of Regulation (EU) 2021/2116, the financial year begins on 16 October of year N-1 and ends on 15 October of year N. When clearing the accounts for the financial year 2025, for the purpose of aligning the reference period for the EAFRD expenditure with that of the European Agricultural Guarantee Fund, account should be taken of expenditure incurred by the Member States between 16 October 2024 and 15 October 2025, in accordance with Article 11(1) of Implementing Regulation (EU) 2022/128.

(5)

This Decision concerns the clearance of accounts of the paying agencies of Member States regarding expenditure within the CAP Strategic Plan financed by the EAFRD in the period 2023-2027 for the financial year 2025. Expenditure related to the last execution year (from 16 October 2024 to 31 December 2025) of the EAFRD 2014-2022 programming period will, in line with Article 37(1) of Regulation (EU) No 1306/2013, be subject to a clearance decision after 30 June 2026.

(6)

Article 35(2), second subparagraph, of Implementing Regulation (EU) 2022/128 provides that the amounts that are recoverable from, or payable to, each Member State, in accordance with the accounts clearance decision referred to in Article 35(1) of that Implementing Regulation, are to be established by deducting the intermediate payments for the financial year concerned from the expenditure recognised for that year in accordance with that Article 35(1). According to Article 35(2), third subparagraph, of that Implementing Regulation the Commission is to deduct that amount from or add it to the next intermediate payment.

(7)

The Commission has checked the information submitted by the Member States and has communicated the results of its checks to the Member States, together with the amendments it proposes.

(8)

For all paying agencies, the annual accounts and the accompanying documents permit the Commission to take a decision on the completeness, accuracy and veracity of the annual accounts submitted.

(9)

The rules on payment deadlines for measures under rural development in the context of the integrated administration and control system provided for in Article 44(2) of Regulation (EU) 2021/2116 apply from the claim year 2023. The reductions for non-compliance with the latest payment deadlines, calculated in accordance with Article 5 of Commission Delegated Regulation (EU) 2022/127 (6), follow the procedure laid down in Article 39 of Regulation (EU) 2021/2116 and are to be taken into account in this Decision for the financial year 2025. Those reductions may be examined, where appropriate, under conformity clearance proceedings pursuant to Article 55 of Regulation (EU) 2021/2116.

(10)

Pursuant to Article 54(2) of Regulation (EU) No 1306/2013, in respect of debts arising from irregularities related to expenditure referred to in Article 104(1) of Regulation (EU) 2021/2116, 50 % of the financial consequences of the non-recovery of irregularities is to be borne by the Member State concerned, if the recovery has not taken place within four years from the date of the recovery request, or within eight years where the recovery is taken in the national courts. Article 54(4) of Regulation (EU) No 1306/2013 requires Member States to attach to the annual accounts that they are to submit to the Commission, pursuant to Article 29 of Implementing Regulation (EU) No 908/2014, a certified table reflecting the amounts to be borne by them under Article 54(2) of Regulation (EU) No 1306/2013. Rules on the application of the Member States’ obligation to report the amounts to be recovered are laid down in Implementing Regulation (EU) No 908/2014. Annex II to Implementing Regulation (EU) No 908/2014 sets out the model of the table that Member States are to use to provide information about amounts to be recovered. On the basis of the tables completed by the Member States, the Commission should decide on the financial consequences of the non-recovery of irregularities older than four or eight years respectively.

(11)

Pursuant to Article 54(3) of Regulation (EU) No 1306/2013, in respect of debts arising from irregularities related to expenditure referred to in Article 104(1) of Regulation (EU) 2021/2116, on duly justified grounds, Member States may decide not to pursue recovery. Such a decision may be taken only if the costs already incurred, and likely to be incurred, total more than the amount to be recovered, or if the recovery proves impossible owing to the insolvency, recorded and recognised under national law, of the debtor or the persons legally responsible for the irregularity. If the decision has been taken within four years from the date of the recovery request, or within eight years where the recovery is taken in the national courts, 100 % of the financial consequences of the non-recovery should be borne by the Union budget. The amounts for which a particular Member State decided not to pursue recovery and the grounds for its decision are to be included in the annual accounts referred to in Article 54(4) of that Regulation. Therefore, such amounts should not be charged to the Member States concerned and are consequently to be borne by the Union budget.

(12)

This Decision should also take into account the amounts that are still to be charged to the Member States in relation to the 2007-2013 and 2014-2022 programming periods for the EAFRD, for which Article 54(2) of Regulation (EU) No 1306/2013 continues to apply pursuant to Article 104(1), second subparagraph, point (c), of Regulation (EU) 2021/2116.

(13)

In accordance with Article 53 of Regulation (EU) 2021/2116, this Decision should be without prejudice to the decisions the Commission may take subsequently pursuant to Articles 54 and 55 of that Regulation,