The report covers both 2006 and 2007 due to the limited activities under Sapard during in particular 2006, the completion of the programmes of the eight new Member States and problems encountered with the implementation of Sapard in Bulgaria  and Romania, which started in 2007. Implementation in Bulgaria and Romania will be further dealt with in the Sapard annual report 2008, which is under preparation.

Beginning in 2000, the EU reinforced its pre–accession assistance for the rural development of ten candidate countries of Central and Eastern Europe by creating Sapard, the Special Accession Programme for Agriculture and Rural Development. For its implementation a unique approach was chosen: the national authorities in the applicant countries assumed the entire responsibility through fully "decentralised management" thus enabling the realisation of Sapard.

Overall results of implementation and assessment of the objectives of Sapard

Under Sapard a total of €2 963,7 million was allocated to the beneficiary countries from 2000 to 2006, of which €1 334,2 million was allocated to the eight Member States that joined EU in 20042 and €1 629,5 million to Bulgaria, Romania and Hungary. During this period a total amount of €2 016,8 million3 was actually paid by the Commission, representing 95,3% of the total amount allocated to the eight new MS and 45,7% for Bulgaria, Romania and Hungary.

At the end of 2007 the total amount paid increased to €2 301,9 million and the percentages to respectively 96,5% and 62,3%. In all eight MS that joined EU in 2004 the amount contracted under Sapard to the final beneficiaries went well beyond the 100% of the funds available under Sapard.

The assessment focuses on the implementation results as compared to the Sapard objectives. It assesses the state of implementation of the investment measures for farms and the food industry, which contribute, in particular, to the attainment of EU standards. It also assesses the investment measures for diversification of economic activities, rural infrastructure and, for Bulgaria, renovation and development of villages. These measures mainly contribute to sustainable economic development and the creation of job opportunities in rural areas.

Future development and cooperation with international organisations in rural development

The reform of the external aid policies proposed by the Commission in the Financial Perspective 2007-201311 resulted in the elaboration of the new single Instrument for Pre-accession Assistance (IPA) replacing the five former instruments PHARE, ISPA, Sapard, CARDS and the Turkey pre-accession assistance.

IPA supports the candidate countries in five areas (components), one of them being rural development. The IPA Rural Development component (IPARD) helps the countries to prepare for implementation of the acquis communautaire of the CAP and to align to EU structures, through the provision of financial assistance under multi-annual rural development programmes, provided that the candidate countries have set up the required institutions and management capacity.

The EC has increasingly developed cooperation with International Financing Institutions (IFIs) in the field of pre–accession assistance to rural development in recent years. The result has been a better understanding of the functioning of Sapard and the potential areas of collaboration between the IFIs and the EC services in this field. These activities continue under the IPA rural development component.

The EC has also been in close contact with other international donors, such as the World Bank or  UNDP to better coordinate the respective rural development activities. The EC is furthermore a member of the East–Agri group which is a network of agricultural and agri–business institutions working in the region of Central and Eastern Europe under FAO coordination.