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be an important tool for boosting EU agriculture.
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Investments, in a variety of forms, will help create a modern, dynamic agri-food
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Glossary

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Title Term Definition
Securitisation

A transaction or scheme, whereby the credit risk associated with an exposure or pool of exposures is tranched, having both of the following characteristics:
(a) payments in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures;
(b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme.
For ESIF, securitisation is possible under the SME initiative (Article 39 CPR) only i.e. for ERDF and EAFRD contributions to the SMEI.

Seed Capital

Seed Capital is the financing provided to study, assess and develop an initial concept. The seed phase precedes the start-up phase. The two phases together are called the early stage.

Shared Management

Refers to funds whose management is shared between the EU and the Member States, e.g. the Structural Funds and the Cohesion Fund. The EU entrusts management of the latter to the Member States. The bulk of EU spending involves funds which come under shared management by the EU Member States. For funds in 'shared management', the Commission currently entrusts the Member States with implementing programmes at national level. Member States then allocate these funds to end recipients (e.g. companies, farmers, municipalities, etc.). The Member State has primary responsibility for setting up a management and control system which complies with the requirements of the Regulations, ensuring that this system functions effectively and also preventing, detecting, and correcting irregularities. The Commission plays a supervisory role by satisfying itself that the arrangements governing the management and control system are compliant. It does so by verifying the effective functioning of this system and making financial corrections, where necessary.

Start-up Capital

Capital provided to enterprises for product development and initial marketing. Enterprises may be in the process of being set up or may exist but have yet to sell their product or service commercially.

State aid

'State aid' means aid falling under Article 107 (1) of the Treaty, which shall be deemed for the purpose of this Regulation, to also include de minimis aid within the meaning of Commission Regulation (EC) No 1407/213 of 18 December 2013 on the application of Articles 87 and 88 of the Treaty to de minimis aid, Commission Regulation (EC) No 1408/2013 of 18 December 2013 on the application of Articles 87 and 88 of the EC Treaty to de minimis aid in the sector of agricultural production and Commission Regulation (EC) No 875/2007 f 24 July 2007 or its successor Regulation on th application of Aricless 87 and 88 of the Treaty to de minimis aid in fisheries sector and amending Regulation (EC) No 1860/2004.

Subsidiarity principle

The subsidiarity principle aims to ensure that decisions are taken as closely as possible to the citizen. Except in cases where the EU has exclusive competence, action at European level should not be taken unless it is more effective than action taken at national, regional or local level. Susbsidiarity is closely bound up with the principles of proportionality and necessity, meaning that any action by the Union should not go beyond what is necessary to achieve the objectives of the Treaty.

Support from the ESI

Support from the ESI Funds means support from one or more of the following funds: European Regional Development Fund, European Social Fund, Cohesion Fund, European Agriculture Fund for Rural Development, European Maritime and Fisheries Fund. Support from the ESI Funds does not include the national co-financing.