Article 2General provisions

1.

Any expenditure eligible in accordance with this Regulation, paid by or on behalf of the beneficiary, shall relate to the costs of initiating or initiating and implementing an operation or part of an operation

2.

The following costs are not eligible:

(a)

fines, financial penalties and expenditure on legal disputes and litigation;

(b)

costs of gifts, except those not exceeding EUR 50 per gift where related to promotion, communication, publicity or information;

(c)

costs related to fluctuation of foreign exchange rate.