WORLD TRADE G/SCM/N/25/EEC
12March 1998
ORGANIZATION(98-0806)
Original:English/French/Spanish Committee onSubsidies
andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI:1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies and
Countervailing Measures
EUROPEAN COMMUNITIES
Thefollowing communication, dated 18September 1997, hasbeenreceived fromthePermanent
Delegation oftheEuropean Commission.
_______________G/SCM/N/25/EEC
Page2
TABLE OFCONTENTS
Page
Chapter I: European Community Subsidies .........................5
PartI: European Community 'sstructural actions ...................6
PartII: Agriculture ......................................13
PartIII: Industry sectors ...................................49
(i) R&D Subsidies ..............................49
(ii) AidtotheCoalIndustry .........................49
Chapter II: Subsidies granted byindividual member States oftheEC
Austria ..................................................51
Belgium .................................................129
Denmark ................................................144
Finland .................................................216
France ..................................................250
Germany ................................................275
Greece ..................................................292
Ireland ..................................................308
Italy ...................................................317
Luxembourg ..............................................337
Netherlands ...............................................340
Portugal .................................................358
Spain ...................................................362
Sweden .................................................656
United Kingdom ............................................742G/SCM/N/25/EEC
Page3
EUROPEAN COMMUNITYG/SCM/N/25/EEC
Page4
1. Structure ofnotification
Subsidies intheEuropean Community aregranted bothatCommunity level i.e.outofthe
Community budget, andbymember States, atthelevelofnational, regional orlocalgovernment.
Inviewofthis,thenotification isdivided intotwoparts. Part1deals withsubsidies granted
bytheEuropean Community andgeneral information onaidgranted within theCommunity 'sterritory,
Part2covers subsidies granted byindividual member States.
2. Period covered
Asfaraspossible, thisnotification relates tosubsidies granted during theupdate period and
tosubsidy programmes which arecurrently inforce, andprovides statistical information atleastup
totheendof1996.
3. Presentation ofnotification
Theinformationprovidedinthisnotificationincludes,asfaraspossible,alltheelementsrequired
byArticle 25.3oftheSubsidies Agreement andinmost cases follows thepresentation required by
thesubsidies questionnaire. Inviewofthediverse nature ofthesources oftheindividual contributions,
ithasstillnotinafewcases beenpossible forthepresentation tocorrespond exactly totheformat
ofthisquestionnaire. TheCommunity willcontinue tomake strenuous efforts toharmonize the
presentation intimeforthefullnotification in1998.
4. Status ofsubsidies
Inpreparing thisupdating notification, theCommunity hasattempted toachieve themaximum
transparency withregard toaidandsupport measures granted within itsterritory. Thefactthatsuch
aidhasbeennotified doesnot,inaccordance withAricle 25.7oftheSubsidies Agreement, prejudge
itslegalstatus under GATT 1994orthisAgreement, nordoesitprejudge itseffects under theAgreement
orthenature ofthemeasure itself. Inviewofthediverse nature ofmany oftheprogrammes notified,
itmaybethatonlypartofaprogramme 'sfunding involves asubsidy element, which mayormay
notbespecific. Consquently, theappearance ofaprogramme inthisnotification doesnotinanyway
imply thatthewhole orpartofitsexpenditure amounts toaspecific subsidy.
Furthermore, thenotification doesnotprejudge thenon-actionable nature ofcertain programmes
under theprovisions offootnote 35toArticle 10oftheSubsidies Agreement orthenon-actionable
status thataprogramme would haveunder Article 8oftheSubsidies Agreement, haditbeennotified
according totheprovisions ofArticle 8.3.
5. Coverage ofupdate notification
TheCommunityhasendeavouredtomakethisupdatenotificationmorecompletethanitsprevious
notifications. Inorder toprovide afullpicture fortheCommunity, itshould bereadinconjucntion
withtheprevious notifications (G/SCM/N/3/EEC andG/SCM/N/16/EEC) andwiththeanswers to
questions onitsfullnotification for1995 submitted totheWTO on18October 1996
(G/SCM/Q2/EEC/10).G/SCM/N/25/EEC
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CHAPTER I:EUROPEAN COMMUNITY SUBSIDIES
(a) Subsidies granted outoftheEuropean Community budget
In1996, totalexpenditure bytheEuropean Community amounted toECU 89.1billion.
Thetwolargest areasofexpenditure wereagriculture andstructural operations, which accounted
for46.3% and35.6% offinancial commitments respectively. Another notable areaofexpenditure
isresearch, which tookup3.9% oftotalexpenditure. Allthese aredescribed inmore detail inthis
partofthenotification.
(b) State aidinthemember States
(i) TheEuropean Commission isresponsible forexamining allstateaidgranted within
theCommunity inorder todetermine itsconformity withArticle 92oftheECTreaty,
(andArticle 95oftheECSC Treaty, forcoalandsteelproducts), Member States are
required tonotify allaidschemes totheCommission, which maydecide either not
toraiseanyobjection oropenaninvestigation procedure. Iftheaidscheme isultimately
found nottoconform toArticle 92,theCommission issues anegative decision which
prevents theaidbeing granted. IftheMember State hasalready granted suchaid,
theCommission canorder theaidtoberepaid.
(ii) Details ofmember States 'aidschemes canbefound inPart2ofthisnotification.G/SCM/N/25/EEC
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PART I:THE EUROPEAN COMMUNITY 'SSTRUCTURAL ACTIONS
Introduction
1. TheCommunity 'sstructural actions (comprising thestructural funds andthecohesion fund)
areintended tostrengthen theeconomic andsocial cohesion oftheCommunity, inparticular byreducing
disparities between thelevels ofdevelopment ofthevarious regions andthebackwardness oftheleast-
favoured regions, including rural areas. Revised Regulations concerning thestructural funds were
adopted on20July1993, andcover theperiod 1994-1999. In1996, ECU 29.3billion wasbudgeted
forallstructural actions, thefigure for1997 isECU 31.5billion.
2. Thethree main structural funds (European Regional Development Fund (ERDF), European
Social Fund (ESF), European Agricultural Guidance andGuarantee, Guidance Section (EAGGF)) are
described indetail intheattached annexes. Inaddition, thefunds include theFinancial Instrument
forFisheriesGuidance(FIFG),whichassistsintherestructuringofthefisheriessector(ECU0.45billion
wasbudgeted forthisin1996, ECU 0.49billion in1997). Thetotalbudget ofthestructural funds
amounted toECU 26.5billion in1996, andECU 28.6billion in1997.
Theremainder oftheCommunity 'sstructural spending involves theCohesion Fund, which
isintended tocontribute toprojects inthefields ofenvironment andtrans-European networks inthe
areaoftransport infrastucture, andforwhich ECU 2.44 billion wasbudgeted in1996, and
ECU 2.75billion in1997, plusvarious reserves. Those member States whose GDPpercapita isless
than90%oftheEUaverage (Greece, Ireland, Portugal andSpain) areeligible tobenefit.
3. Total expenditure from thestructural funds (ERDF, ESF, EAGGF andFIFG) isdevoted to
anumber ofobjectives asfollows, allofwhich arecofinanced bymember States:
Objective 1: Development andstructural adjustment oftheregions whose development islagging
behind (GDP oflessthan75%oftheCommunity average).
Objective 2: Conversion ofregions seriously affected byindustrial decline.
Objective 3: Combattinglong-termunemploymentandintegratingyoungpeopleandthosethreatened
withexclusion intothelabour market.
Objective 4: Facilitating theadaptation ofworkers ofeither sex,especially those threatened with
unemployment toindustrial change andtochanges inproduction systems.
Objective 5a: Speeding upadjustment ofstructures inagriculture andfisheries inlinewiththereform
oftheCommon Agricultural Policy.
Objective 5b: Economic diversification offragile rural areas.
Objective 6: Combatting problems faced bythinly populated regions oftheNordic countries.
Inaddition, ECU 2.97million wasbudgeted forCommunity initiative in1996, ECU 3.27billion in
1997.
4. ThesestucturalactionsarerequiredtoconformstrictlytotheCommunity'srulesontheprovision
ofstateaid(Article 92oftheECTreaty).G/SCM/N/25/EEC
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5. Thestructural actions arenotified inaspirit oftransparency vis-à-vis other Members ofthe
WTO. Theaidinvolved islargely devoted totheleast-developed areas oftheCommunity, andthe
great majority ofitgoestofinance infrastructure ortoassist individuals directly, without necessarily
benefiting commercial enterprises. Consequently, asstated atthebeginning ofthisdocument, the
notification ofaparticular funddoesnotprejudge thestatus oftheaidinvolved. Inparticular, only
asmall partofthestructural fundisusedtoassist investment.G/SCM/N/25/EEC
Page8
European Regional Development Fund
1. Titleoftheprogramme
European Regional Development Fund (ERDF)
2. Period covered bythenotification
January 1996-June 1997
3. Policy objective and/or purpose oftheprogramme
TheERDF isintended tohelpredress themainregional imbalances intheCommunity through
participation inthedevelopment andstructural adjustment ofregions whose development islagging
behind (objectives 1and5(b)) andintheconversion ofdeclining industrial regions (objective 2)and
asregards thinly populated Nordic regions (objective 6).
4. Background andauthority fortheprogramme
Article 130(c) oftheECTreaty: Council Regulations (EEC) Nos. 2081/93, 2082/93 and
2083/93.
5. Form ofassistance granted -Grants from Community budget for:
- Productive investment,
- Thecreation ormodernization ofinfrastucture which contributes tothedevelopment
orconversion oftheregions concerned, and
- Measures toexploit thepotential forinternally generated development oftheregions
concerned.
6. Towhom andhowtheassistance isprovided
ERDF aidiscofinanced withthemember States; theERDF provides aminimum of25%of
thetotalpublic expenditure involved, except inobjective 1regions, where aminimum of50%applies.
Member States submit multi-annual operation programmes, covering acoherent setofregional
development measures, andareresponsible fortheimplementation oftheprogramme andtheselection
ofindividual projects.
Asregards productive investment, theERDF participates infinancing (national) investment
aidwitharegional aim. Theaidisgoverned bytheprinciples ofcoordination adopted bythe
Commission within thecontext ofitscompetition policy andwhich, interalia,differentiate aidceilings
according tothelevels ofdevelopment oftheassisted regions.
Aidisnormally intheform ofgrants orloans.
7. Total expenditure under theprogramme
ECU 11.9billion wasbudgeted for1996, excluding Community initiatives; ECU 13.0billion
in1997.G/SCM/N/25/EEC
Page9
8. Duration oftheprogramme
1994-99 (Revised Regulations).
9. Trade effects
BecausetheprogrammeisdesignedtoalleviatedisparitiesbetweenregionswithintheCommunity,
andbecause theaidispaidoutonahorizontal basis, itisconsidered thatthetradeeffects areminimal.G/SCM/N/25/EEC
Page10
European Social Fund
1. Titleoftheprogramme
European Social Fund (ESF)
2. Period covered bythenotification
1January 1996-30 June1997
3. Policy objective and/or purpose oftheprogramme
TheEuropean Social Fund wassetupbytheEECTreaty in1957toimprove theemployment
opportunities forworkers andtohelpraisetheirliving standards. Itisbased onArticles 123-125,
130(a)-130(e) oftheEECTreaty, according towhich itsmain tasks aretorender theemployment of
workers easier andtoincrease geographical andoccupational mobility within theCommunity. Itis
provided onageneral basis under objectives 3and4,andwithin theother regional objectives.
4. Background andauthority fortheprogramme
Above Articles ofECTreaty: Council Regulations (EEC) Nos.2081/93, 2082/93 and2084/93.
5. Form ofassistance granted -Grants from Community budget for:
- Vocational training;
- Start-up aid;
- Innovative measures.
6. Towhom andhowtheassistance isprovided
TheESFprovides cofinanced support inmember States forvocational training, aidsfor
employment andinnovate actions. Theaidisnormally devoted topeople, nottoenterprises.
Operational programmes, onceapproved bytheCommission, aremanaged bythecompetent
authorities inthemember States. Identification ofindividual projects istheresponsibility ofthemember
State.
Aidisnormally intheform ofgrants orloans.
7. Total expenditure under theprogramme
ECU 7.1billion wasbudgeted for1996, excluding Community initiatives; ECU 7.6billion
for1997.
8. Duration oftheprogramme
1994-99 (Revised Regulations).G/SCM/N/25/EEC
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9. Trade effects
Since aidisgranted forthebenefit ofindividuals, notenterprises andismainly directed to
less-developed regions, theESFisnotconsidered tohaveanyappreciable impact ontrade.G/SCM/N/25/EEC
Page12
European Agricultural Guarantee andGuidance
Fund (EAGGF) -Guidance Section
1. Titleoftheprogramme
European Agricultural Guarantee andGuidance Fund (EAGGF) -Guidance Section.
2. Period covered bythenotification
1January 1996-30 June1997
3. Policy objective and/or purpose oftheprogramme
(a) Speeding uptheadjustment ofagricultural structures intheframework ofthereform
ofthecommon agricultural policy (objective 5(a));
(b) Promoting ruraldevelopment andstructural adjustments inregions whose development
islagging behind, including underdeveloped agricultural regions, (objective 1and5(b)).
4. Background andauthority fortheprogramme
CouncilRegulations(EEC)Nos.2081/93,2082/93and2085/93.TheEAGGFGuidanceSection
wasestablished in1972.
5. Form ofassistance granted -Grants from Community budget for:
(a) Adjustment ofagricultural structures (objective 5(a));
(b) Agricltural development measures (objectives 1and5(b)).
6. Towhom andhowtheassistance isprovided
Aidiscofinanced withthemember States onthebasisofmulti-annual operation programmes
based ontheaimsoftheEAGGF Guidance Section assetoutabove. TheMember States areresponsible
fortheimplementation oftheprogramme andtheselection ofindividual projects.
Aidisnormally intheform ofgrants orloans.
7. Total expenditure under theprogramme
ECU 3.8billion wasbudgeted for1996, excluding Community initiatives; ECU 4.0billion
in1997.
8. Duration oftheprogramme
1994-99 (Revised Regulations).
9. Trade effects
Because theaimsoftheprogramme itisconsidered thatthetrade effects areminimal.G/SCM/N/25/EEC
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PartII:AGRICULTURE
A. GENERAL REMARKS
1. ThemeasuresnotifiedconcernonlyproductswhicharesubjectofaCommonAgriculturalPolicy,
namely thefollowing sectors:
-Cereals
-Rice
-Dairy products
-Oilsandfats
-Sugar andisoglucose
-Bovine meat
-Pigmeat
-Sheepmeat
-Goatmeat
-Fruit andvegetables andproducts processed from fruitandvegetables
-Bananas
-Wine
-Tobacco
-Fishery products
-Dehydrated fodder
-Textiles fibres (cotton, fibreflaxandhemp, silkworms)
-Peas, broad beans andfieldbeans usedinanimal feed
-Seeds
-Hops
-Eggs andpoultry
-Products oftheagri-foodstuff industries (products “notinAnnex II”)
2. Themeasures notified include allthepricesupport measures introduced bythecommon market
organizations thatcaninvolve participation rather bytheCommunity 'sfinancing organisation orby
thegovernment ofamember State, totheextend thatsuchmeasure derive from theCommunity
regulations.
3. With respect tothetotalamount ofaidforeachsector, itshould benoted thatthedatarelate
topayments made bytheEuropean Agricultural Guidance andGuarantee Fund (EAGGF) inthecourse
ofthebudgetary yearconcerned.
B. MEASURES
1. EXPORT REFUNDS
Forcertain ofthesectors governed byacommon market organisation, theCommon Agricultural
Policy provides forthepossibility ofgranting export refunds.
Thepurpose ofexport refunds istocover thedifference between Community prices and
international trade prices inorder toenable exports tobeeffected atinternational trade prices.
Therefunds isthesameforthewhole oftheCommunity; adifferential maybeapplied according
todestination ortime(months ofdelivery). Theamount oftherefund isfixed periodically bythe
Commission. Theperiodicity ofthefixing isdifferent foreach sector because ofthespecialG/SCM/N/25/EEC
Page14
characteristics ofeachsector. Inorder tofacilitate export operations, inthecaseofthemajority of
products asystem hasbeenintroduced whereby refunds canbefixed inadvance. Therefund ispaid
totheexporter.
Thetotalamount ofexport refunds financed bytheEAGGF during thepastfewyears, and
foreachsector, isasfollows:
(ECU million)1
Products Refunds
1993Refunds
1994Refunds 1995 Refunds
1996
Cereals
Rice
Sugar2
Olive oil
Oilsandfats
High-protein products
Flaxandhemp
Cotton
Silkworms
Fruits andvegetables
Wine
Tobacco
Seeds
Hops
Dairy products
Bovine meat
Sheepmeat andgoatmeat
Pigmeat
Eggs andpoultry
Products oftheagri-foodstuffs
industries
Fishery products
Total expenditure2,878.8
75.4
1.0
68.8
-
-
-
-
-
187.5
100.2
36.2
-
-
2,340.8
1,711.2
-
193.5
290.9
743.5
0.1
8,627.91,571.6
23.6
0.7
52.8
-
-
-
-
-
216.7
80.4
49.9
-
-
1,949.2
1,708.4
-
259.1
239.6
631.4
-
6,783.41,129.3
65.1
1.9
38.2
-
-
-
-
-
239.4
36.7
35.1
-
-
2,290.2
1,761.0
-
118.2
200.5
574.3
-
6,489.9320.2
42.6
1.6
59.3
-
-
-
-
-
98.4
40.8
2.4
-
-
1,615.8
1,559.4
-
101.4
139.2
493.9
-
4,475
1Includes "food aid"refunds.
2Starting withmarketing year1981/1982, theexport refunds ondomestic sugar have been entirely financed out
ofproducer contributions byproducers ofsugar andisoglucose andsugar beetandsugar caneproducers oftheCommunity.
Theamounts for1992, 1993, 1994 and1995 represent food aid.
II. MEASURES ONTHE INTERNAL MARKET
1. Inorder tostabilize markets andassure theagricultural population ofanequitable standard
ofliving, theCommon Agricultural Policy provides, inthemarket organisation regulations forthe
different products, intervention andaidmeasures which varyaccording tothenature oftheproduct
andthespecial characteristics ofthemarket.
2. Thecostofthese intervention andaidmeasures is,asageneral rule,financed bytheEAGGF.
During thepastfewyears, byproduct sector, theyhaveamounted to:G/SCM/N/25/EEC
Page15
(ECU million)1
Products Intervention
1993Intervention
1994Intervention
1995Intervention1
996
Cereals1
Rice
Sugar2
Olive oil
Oilsandfats1
High-protein products1
Flaxandhemp
Cotton
Silkworms
Fruits andvegetables
Wine
Tobacco
Seeds
Hops
Other plant products
Dairy products
Bovine meat
Sheepmeat andgoatmeat
Pigmeat
Fishery products
Other products3
Total expenditures3,748.7
10.2
83.6
2,395.4
3,063.4
1,083.8
29.6
830.8
0.2
1,476.5
1,409.4
1,127.6
70.4
24.5
-
2,923.8
2,275.1
1,800.4
2.4
32.3
-
22,388.111,130.5
4.0
59.2
1,758.9
-
-
33.2
830.2
0.2
1,309.8
1,095.8
1,007.6
75.5
3.7
-
2,291.5
1,758.1
1,279.8
21.9
33.0
378.4
23,071.313,924.5
1.1
49.7
767.8
-
-
78.6
797.2
0.2
1,543.2
820.8
957.9
76.4
14.3
1.8
1,739.9
2,256.6
1,780.9
17.9
28.2
342.0
25,199.016,065.6
-
40.7
1930.7
-
-
88.7
762.7
0.2
1,483.1
737.5
1,024.1
91.8
24.1
-
1,849.3
5,244.4
1,682,4
23,7
25.3
366,1
31,440.4
1Since 1994, expenditure oncereals, oilsandfatsandhigh-protein products hasbeenconsolidated under thesame
budgetary heading: "Arable crops".
2Notincluding storage costs andthepartcomprising production refunds (chemical industry).
3Dried fodder anddried vegetables; until1994expenditures onthese wasincluded under expenditure onhigh-protein
products (fordried fodder) andfruits andvegetables (fordried vegetables).
ANALYSIS BYSECTOR
"ARABLE CROPS" SECTOR (Cereals, oilseeds andprotein plants)
Thissection covers the"classical market organization forcereals aswellasthecompensatory
payment scheme forproducers inthearable cropsector (cereals, non-fibre flax,oilseeds andprotein
crops).
(a) Thecommon market organization forcereals
Thecommon market organization came intoforce on1July1967. Itisregulated byCouncil
Regulation (EEC) No.1766/92 andcovers thefollowing products:
- Grain cereals: common wheat, durum wheat, barley, rye,oats,maize, buckwheat,
canary seed, millet, others;
- processed products: flours, groats andmeal ofwheat, malt, starch, glucose,
cereal-based preparations, bran, wheat gluten, manioc andpotato starch.
Thecereal marketing yearrunsfrom 1Julyto30June.G/SCM/N/25/EEC
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1. Operation ofthemarket
Price arrangements
TheCouncil fixes theintervention price forcereals. Atthisprice theintervention
agencies must, atcertain periods oftheyear, buyinthecereals theyareoffered that
havetherequisite quality characteristics.
There isoneintervention price forwheat, maize, barley, sorghum, ryeanddurum
wheat; there isnolonger anobligation tobuyinfeedwheat.
Theintervention price isincreased eachmonth fromNovember toMaytocover storage costs
(technical andfinancing costs) andthushelptoimprove thedisposal ofcereals inlinewithmarket
requirements.
Theintervention price fixed bytheCouncil forallcereals isECU 119.19/t.
Specific market instruments
(a) Border regime
Where theprice ofcereals within theCommunity ishigher thantheworld price, arefund
calculated interms ofthedifference isgranted onexports. Iftheworld price exceeds thecommon
price, alevymaybeimposed onexports.
Community foodaidoperations alsoattract refunds.
(b) Stocks
Twotypes ofintervention measures areinvolved:
Buying-in andsubsequent operations involving public stocks: thisconcerns buying-in
bytheintervention agencies andtherelated disposal operations. They giveriseto
technical andfinancial costs andtolosses orgains onsalesofstocks.
Special measures: these aremeasures provided forinArticle 6ofthebasic regulation
(No1766/92) toavoid situations inwhich theintervention agencies areforced tobuy
inexcessively large quantities ofcereals. TheCommission hasbroad discretionary
powers fortheapplication ofspecial measures andmay, ifnecessary, alsoadopt
measures equivalent tocarryover payments.
(c) Other intervention
Production refunds forpotato andother starch
1. Aproductionrefundisgrantedforstarchobtainedfrommaize,wheat,barleyorpotatoes
tocompensate starch users producing nonprotected industrial products forthepricedifference existing
between theECandtheworld market.
2. Theprice andsupport policy forstarch potatoes consists oftwomeasures:
- aminimum price payable bytheprocessor totheproducer
- aspecial premium payable totheprocessor.
- acompensatory payment payable tothepotato grower.G/SCM/N/25/EEC
Page17
Theminimum price established aspartofthereform oftheCAP remains aligned onthe
institutional prices forcereals, giving risetopayment oftheabove-mentioned compensatory aid.The
special premium provides compensation forcertain structural disadvantages suffered bythepotato starch
industrycomparedwiththecerealstarchindustry.ThispremiumwasfixedatECU22.25.Since1995/96
starch production issubject toaceiling arrangement which linksthepayment ofthepremium andof
export refunds totheobservance ofquotas.
Thesystem ofcompensatory payments hasalsobeenestablished, following thereduction in
cereals prices, forfarmers growing potatoes forthestarch industry. Theamount ofthepayment applies
tothequantity ofpotatoes needed tomanufacture onetonne ofstarch. Since themarketing year
1995/1996 itisfixed atECU 86,94.
InJuly1994, quotas were introduced inorder tolimitthestarch production.
Other intervention
These headings cover expenditure onvarious measures, inparticular special aidforPortuguese
cereal producers.
Aidsperhectare forarable crops andset-aside
Thereform ofarable crops entered intoforce on1July1993. It'sgoverned byRegulation
(EEC) No1765/92, which covers allcereals, oilseeds, protein plants andnon-fibre flaxseeds.
Asfarascereals areconcerned, theinstitutional prices havebeensubstantially reduced asfrom
the1993/94 marketing yeartobring themcloser toworld prices. Theresulting lossofincome isoffset
byacompensatory payment, paidperhectare andcalculated onaregional basis toproducers sowing
cereals andsubmitting applications, subject tocertain conditions, inparticular thatofsetting asideland
inthecaseofcommercial producers.
Foroilseeds andprotein crops (peas, fieldbeans andsweet lupines), theprevious support
arrangements havebeenabolished withtheintroduction ofthereform or,inthecaseofrape, sunflower
ansoya, since theintroduction ofatransitional support scheme consisting ofpayments perhectare
fromthe1992/93 marketing year. Withtheintegration oftheseproducts intothereform, prices dropped
andoilseeds aswellasprotein crops arenowsoldontheEuropean markets atworld prices.
1. Regionalization plan
Inorder toreflect thediversity ofagricultural structures intheCommunity, compensatory
payments varyfrom region toregion onthebasis oftheyields perhectare recorded inthepast.
TheMember States havetoestablished aregionalisation planinaccordance withthecriteris
setoutinArticle 3ofRegulation (EEC) No1765/92 which aimstodefine, insofar asispossible, distinct
homogeneous areas. Theaverage yields maybemodulated inorder totakeaccount ofpossible structural
differences between production regions. Theregionalisation planmust, however, guarantee thatthe
average yield (fixed foragiven period) ofeachmember State concerned isrespected.
Asarule,foreachareaan"allcereals" yieldshould beapplied. Onaccount ofthesometimes
substantial differences inyield, twodistinct arrangements areprovided for:
- formaize ayield different from thatfrom cereals maybeapplied;G/SCM/N/25/EEC
Page18
- yields forasingle region maybebroken down intodifferent yields forirrigated and
non-irrigated land(mixed areas).
Even where these twoexceptions areapplied, however, theyield recorded forallcereals in
therelevant region during thereference period must notbeexceeded.
2. Expenditure stabilisation mechanism
Thecompensatory payment isgranted onlyonanareanotexceeding aregional basearea.
Thisisestablished astheaverage number ofhectares sown toarable crops (cereals, oilseeds andprotein
plants) or,asthecasemaybe,setaside under apublic aidscheme in1989, 1990and1991inagiven
region.
Aswiththeregionalisation plan, member States arerequired todetermine theregion, which
maycover anentire member Stateorseveral areas within amember State. Itcannot besmaller than
ayield area.
Abaseareamustbeestablished separately formaize orirrigated crops where ayield higher
thanthatforother cereals isapplied tothese products. Inaddition, thecompensatory payment on
irrigated areas isgranted onlyuptoaceiling foreachproduction areaoraseparate basearea.
Themember States arealsoauthorized toapply anindividual baseareasystem. However,
nomember State tookupthatoption.
Production andexpenditure arecontrolled byestablishing thisbaseareas oraceiling inthe
caseofirrigated production.
Ifthesumoftheareas inrespect ofwhich thecompensatory payment isapplied for(including
thatonset-aside) plusthe"COP" (cereals, oilseeds andprotein plants) areas declared asfodder areas
isgreater thantheregional basearea, thefollowing measures apply intheregion inquestion:
(a) basearea:
- during oneandthesamemarketing year,theeligible areaperproducer istobereduced
proportionately foralltypes ofaid.
- during thefollowing marketing year, producers qualifying under thegeneral scheme
must, bywayofanextraordinary measure, setaside landwithout receiving any
compensation;
(b) ceiling:
- during oneandthesame marketing year, compensatory payments onirrigated areas
arereduced by1.5times therateofoverrun. Iftheoverrun isequal toorgreater than
10%, theyield tobeusedisthatapplicable tonon-irrigated crops.
Inaddition, where amember Statechooses toestablish production regions notcorresponding
totheregional baseareas andwhere theaverage yield under theregionalisation planapplied in1993
isexceeded, allcompensatory payments tobepaidtothatmember State inrespect ofthefollowing
marketing yeararetobereduced inproportion totheobserved overrun, except where thequantity
applied forislessthantheproduct ofthebaseareaofthemember Statemultiplied bytheabovementioned
average yield.G/SCM/N/25/EEC
Page19
3. Compensatory payment
Cereals
Asthecutincereals prices wasstaggered overthree years, theamount ofthecompensatory
payment alsochanged overthesame period. Since themarketing year1995/1996 thecompensation
reached itsfullrateinthe1995/96 anditamounts toECU 54.34 pertonne ofyield fortheregion of
production concerned.
Asregards durum wheat, thealignment ofitsintervention price onthatforother cereals has
ledtoanadditional price cutand,consequently, adecrease inproducer 'sincomes. Forthisreason,
anadditional compensatory payment ispaidfortheareasown todurum wheat inthetraditional
production areas. Thissupplement issetatECU 358.6/ha. Thiscovers boththeolddurum wheat
aidandthepartoftheprice cutnotcovered bythecompensatory payment.
Payment ofthesupplement wasinitially restricted tothenumber ofhectares sown todurum
wheat andeligible fortheoldaidduring themarketing years 1988/89 to1991/92. Theproducer decides
which marketing yearistoserve asthereference.
Since theintroduction ofthisadditional payment, thesystem hasbeenamended asfollows:
- anextension ofpayment tocertain areas inFrance, Spain,Portugal andItaly;
- apayment tocertain non-traditional areas inFrance andAustria ofanadditional payment of
ECU138.9/ha inrespect ofanareanotexceeding 50,000 hectares innorthern producer regions
ofFrance and5,000 hectares inAustria. Thatamount reflects lossofincome duesolely to
thefallintheguaranteed price fordurum wheat.
Oilseeds, protein plants andnon-fibre flaxseed
Theproducts covered are:
- rape, sunflower, soya
- dried peas, excluding chick peas, dried beans andsweet lupines
- non-fibre flaxseed.
TheCommunity market isessentially free.Imports arefreeofcustoms duties, apart from a
lowrateofcustoms dutyonpeas. Exports donotattract refunds.
Compensatory payments aregranted toproducers, calculated -inthecaseofprotein plants and
flax-onaregional basisaccording tothecereals yields recorded during theperiod 19986/87 to1990/91.
Compensation forrape, sunflower andsoyamayberegionalised either onthebasisofoilseed yields,
subject tocertain restrictions, oronthebasis ofcereal yields.
Payments arereduced where thebaseareaisexceeded. Inaddition, thefollowing adjustments
must bemade foroilseeds:
- areduction inthecompensatory payment where themaximum guaranteed areais
exceeded (Regulation (EC) No232/94 amending Regulation (EEC) No.1765/92);
- anadaptation ofthefinalreference amount incases where anyvariation recorded in
themarket price exceeds 8%oftheforecast reference price.G/SCM/N/25/EEC
Page20
Reference amounts
Description
Rape, sunflower andsoyaseed
Peas, beans andsweet lupines1
Non-fibre flaxseed11996/97
ECU 433.5/ha
ECU 78.4/t
ECU 105.1/t
1These amounts havetobemultiplied bytheregional yields forcereals toobtain theregional reference amounts.
Set-aside
Set-aside linked withaidsperhectare
(a) General scheme opentoallproducers
Each producer claiming compensatory payments under thegeneral scheme isrequired toset
aside acertain percentage ofthelandonhisholding.
Forthe1995/96 and1996/97 marketing year, theset-aside obligation hasbeenfixed at12%
and10%respectively. Forthe1997/98 marketing yeartheset-aside obligation hasbeenreduced to
5%.
Thecompensation fortheset-aside obligation isfixedatECU 68.83 multiplied bytheregional
cereals yields.
Thiscompensation isalsopayable onlandvoluntarily setaside inexcess oftheobligation,
subject however toaceiling setbythemember State(which maynotexceed theareasown toeligible
crops covered bypayment applications).
However, notwithstanding thatprinciple, producers whounder Regulation (EEC) No2328/91
havesetlandinexcess oftheareawhich theyintend tosowtoarable crops eligible fortheaidand
whohavenotreplanted suchlandmayoptforthecontinuation ofset-aside onallthislandforafurther
sixty-month period against payment ofreduced aidofECU 48.30/tonne ontheareasetaside inexcess
oftheareasown toarable crops.
Land setaside maybeusedforproducing rawmaterial forthemanufacture ofproducts not
directly intended forhuman oranimal consumption.
Clause 7oftheMemorandum ofUnderstanding oncertain oilseeds between theECandthe
USstipulates thatby-products maynotexceed onemillion tonnes perannum, interms ofsoyabean
meal equivalent, foranimal orhuman consumption produced onset-aside landfrom rape, colza,
sunflower andsoya.
Within oneandthesame Member State andunder certain conditions, farmers maytransfer
set-aside obligations toanother producer.
(b) Simplified scheme, opentosmall producers
Small producers areproducers applying forcompensatory payments foranareanotexceeding
thatneeded toproduce 92tonnes ofcereals. Theyields tobetaken intoconsideration tocalculate
thistonnage arethose fixed bytheregionalisation plan.G/SCM/N/25/EEC
Page21
Thesimplified scheme applicable tosmall producers:
- imposes noset-aside obligation;
- provides forthegrant ofthecompensatory payment attherateapplicable tocereals
forallareas sown toarable crops, i.e.alsotooilseeds andprotein plants.
Five-year orstandard set-aside
Standard set-aside isgoverned byTitle IoftheCouncil Regulation (EEC) No2328/91 of
15July1991. This scheme was abolished byCouncil Regulation (EC) No3669/93 of
22December 1993.
Ithadbeendesigned toadapt thevarious sectors ofproduction, particularly thosewithsurpluses,
tomarket requirements. Itwasavailable toproducers during theperiod 1988 to1992. When the
five-year contracts terminate, landwithdrawn from theproduction mayqualify under thevoluntary
set-aside scheme pursuant toRegulation (EEC) No1765/92.
Description ofscheme
Themember States arerequired tointroduce ascheme whereby farmers sowishing mayset
aside atleast20% oftheir arable landforaperiod ofatleastfiveyears, withthepossibility of
cancellation ofthecontract onthepartofthebeneficiary afterthree years.
Farmers aregranted compensation intheformofpremiums perhectare, tobedetermined on
thebasis oflosses inincome.
Themember States determine theamount ofaidtobepaidperhectare oflandsetaside. The
maximum amount oftheaidissetatECU 731.75 perhectare peryear, saveinexceptional cases.
Thearable landsetaside mayeither beusedfornon-food purposes ortaken outofproduction,
i.e.
- leftfallow, withthepossibility ofrotation;
- afforested;
- used fornon-agricultural purposes.
Landsetasideunder thisscheme cannot beincluded intheset-aside obligation referred tounder
thetitle"set-aside linked withaidsperhectare.
TheCommunity contribution towards theaiddepends ontheamount oftheaidandontheuse
oftheland. Thepercentage isfixed byAnnex IIItotheRegulation (EEC) No223/90 of
26January 1990, aslastamended byRegulation (EEC) No2929/93.
"RICE" SECTOR
On22December1995,theCouncilformallydecidedtoreformthecommonmarketorganization
forrice.
Thereform includes thefollowing points:G/SCM/N/25/EEC
Page22
(a) Intervention measures
Theintervention priceforpaddy riceshallbereduced by15%from351ECU/t. forthe1996/97
marketing yearto298,35 ECU/t. forthe1999/2000 marketing year. Community riceproducers may
claim compensatory payments fixed perhectare oflandunder ricesown which shallbedifferentiated
according totheyield (to/ha).
Theintervention agencies areobliged tobuyinanyriceharvested intheCommunity andoffered
tothem,providedoffersaremadeduringtheopenperiod(April-July)andcomplywithcertainconditions,
inparticular inrespect ofquality andquantity.
Theintervention buying-in price isfixed foragiven standard quality. Ifthequality offered
differs fromthestandard quality, thepriceisadjust bytheapplication ofpriceincreases orreductions.
Itisapplicable inalltheCommunity intervention centres fixed atthebeginning ofthemarketing year.
Theintervention price isincreased eachmonth during theopenperiod totakesome account
ofwarehousing andinterest costs forstorage ofcereals intheCommunity.
Theinterventionbuying-inpricesfixedatthebeginningofmarketingyearshavebeenasfollows:
(ECU/t.)
Product
Paddy rice1991/92
294.831992/93
294.831993/94
291.021994/95
291.021995/96(1)
351.401996/976
351.00
1Asfrom February 1995, theprices were converted onthebasis ofthemonetary coefficient of1.207509.
Spanish prices havebeenaligned withCommunity prices asfrom marketing year1990/91.
Portuguese prices havebeenaligned withCommunity prices from April 1993.
Anational baseareaforeachproducer member State isestablished:
-Spain: 104,973 ha.
-France
-metropolitan territory: 24,500 ha.
-French Guyana 5,500 ha.
-Greece: 24,891 ha.
-Italy: 239,259 ha.
-Portugal: 34,000 ha.
Incasenationalareasinagivenyearexceedoneofthebaseareasindicated,progressivepenalties
willbeapplied intheform ofareduction ofthecompensatory payments.
(b) Production refund
Aproductionrefundispaidtousersofricestarchfortheproductionofcertainnon-foodproducts
thatarenotprotected uponimport byalevyortariffsystem. Themainbeneficiary industry comprises
thechemical, paper andpharmaceutical sector. Therefund isvariable andiscurrently calculated so
astoalign prices ofCommunity rawmaterials withtheworld market level.G/SCM/N/25/EEC
Page23
"DAIRY PRODUCT" SECTOR
(a) Intervention measures
Eachyearanintervention price isfixed forbutter andskimmed milkpowder andthenational
intervention agencies buyinatthisprice anysuchproducts oftheCommunity origin which comply
withcertain quality andpackaging conditions.
Theintervention prices fixed forthelastfewmarketing years were asfollows:
Intervention price valid for Milk marketing year
1994/95* 1995/96 1996/97
1.Butter 271.80 328.20 328.20
2.Skimmed milkpowder 170.20 205.52 205.52
*Asfrom 1.2.1995, theprices were converted onthebasis ofthemonetary coefficient of1.207509.
Under theintervention mechanism, asamended inMarch 1987 andtoapply untiltheendof
theadditional levysystem, intervention buying-in maybelimited when certain conditions aremet.
Since July1987, intervention butter hasbeenbought inunder atendering procedure. Butter isbought
inatamaximum price which isfixed inrelation withthebidsreceived bytheCommission, butnot
lower than90%ofthefullintervention price. Skimmed milkpowder canonlybebought between
1March and31August eachyear. Purchases canbesuspended when theannual quantity offered reaches
109,000 tonnes.
(b) Aidtoprivate storage
Aidforprivate storage ofmilkpowder, butter andcertain cheeses produced intheUnion is
granted:
- fortopquality skimmed milkpowder: onlywhen intervention purchasing issuspended
from 1March to31August. Noexpenditure isscheduled for1997;
- forbutter stored foratleastthree months between 15March and15August;
- forcertain cheeses :Grana Padano agedatleastninemonths old,Parmigiano-Reggiano
agedatleast15months oldandProvolone atleastthree months old.Inyears where
aserious imbalance canbereduced oreliminated byseasonal storage aidcanbegranted
forprivate storage ofthelong-keeping cheeses Emmental andGruyère andofcertain
ewemilkcheeses.
(c) Aidforskimmed milkforanimal feed
Aidisgranted forskimmed milkandskimmed milkpowder manufactured intheCommunity
andintended foranimal feed.
Themilkorpowder must beeither directly denatured orincorporated insome compound
feedingstuff intended forlivestock.
(d) Aidforskimmed milkprocessed intocasein
AidisgrantedforskimmedmilkproducedintheCommunityandprocessedintocasein,provided
boththemilkandthecasein produced from itcomply withcertain conditions.G/SCM/N/25/EEC
Page24
(e) Other measures
- Measures maybetaken, inyears inwhich theyarefound necessary, tosupport the
market forlong-keeping cheeses andgoat’smilkcheeses, ifsuchcheeses comply with
certain conditions. These measures aretaken, inparticular, intheform ofprivate
storage aid.
- When surpluses ofdairy products develop, orthreaten todevelop, measures other than
theabove maybetaken tofacilitate theirdisposal ortoprevent thedevelopment of
newsurpluses. Anumber ofmeasures arecurrently inforcetofacilitate butter disposal
ontheCommunity market; interalia,aidisgranted foruseintheformofconcentrated
butter forcooking, incorporation incertain foodstuffs andfordirect consumption by
certain categories ofpersons orinstitutions.
- Inorder toencourage consumption byyoung people, aidisgranted toMember States
which operate anaidprogramme formilkdistributed inschools sothatpupils canobtain
milkatareduced rate.
(f) Additional levypayable byproducers orpurchasers ofcows'milk
Anadditional levywasintroduced in1984onquantities ofmilkexceeding those delivered in
1981 plus1%. TheCouncil hasfixed thecorresponding quantities foreachmember State. Inthis
connection, theCouncil adopted aRegulation (EEC) No.856/84 (O.J. No.L90of1April 1984) and
Regulation (EEC) No.857/84 (same O.J.).
Thetotalquantity of"deliveries" envisaged fortheCommunity (including Spain andthe
Community reserve) was104,382 million tonnes for1986/87. Inparallel, theCouncil fixed atotal
quantity fordirect salestoconsumers intheamount of4.0million tonnes. Within thetotalquantity
fordeliveries, themember Statedetermines reference quantities (quotas) either forindividual producers
(formula A),orfordairies (formula B).Onanyquantities exceeding those quotas, alevyisapplied
during thefirstthree years ofoperation ofthesystem, equivalent to75%ofthetarget price formilk
forformula Aand100% forformula B.
Thetotalquantities were reduced by2%asfrom 1April 1987 andbyafurther 1%on
1April 1988. Inorder tofacilitate thedecline indeliveries anddirect salesresulting fromthereduction
oftotalquantities, aCommunity system hasbeensetuptofinance definitive cessation ofproduction
(Regulation (EEC) No.1336/86, O.J.No.L119of8May1986, page19)providing forthegrant
ofanallowance toproducers whosorequest, inreturn foranundertaking ontheirparttocease milk
production definitively andthecancellation oftheirreference quantities.
InDecember 1986 andMarch 1987, theCouncil extended thesystem until31March 1992
andadopted aseries ofadditional measures designed toadjust production tomarket needs. Theyinclude
atemporary suspension of4%ofthereference quantities in1987/88 and5.5% (anadditional 1.5%)
in1988/89, withpayment ofanallowance totheproducers concerned, together withanincrease of
thelevyattheproducer level(thelevelrateforformula Ahasbeenraised to100%, while forformula
Bthemodalities forsharing outthelevypaidbythedairy havebeenadjusted), soastoreduce deliveries
byafurther 1%.
FollowingthejudgementsoftheCourtofJustice,on28April1988,oncases120/86and170/86,
theCouncil adopted aseries ofmeasures inMarch 1989 providing interaliafortheallocation ofaG/SCM/N/25/EEC
Page25
special reference quantity toSLOM1producers and,forthatpurpose, anincrease oftheCommunity
reserve by600,000 tonnes (Regulations (EEC) Nos.764/89 and766/89; O.J.L84of29March 1989,
page2).
In1992,theCouncildecidedtosimplifyandcodifytheregulationsontheadditionallevysystem.
Ifthenational reference quantity isexceeded, alevyof115% oftheindicative price isimposed on
producers exceeding theirownreference quantity.
ThenewrulesarecontainedinCouncilRegulation(EEC)No.3950/92whichretainstheprinciple
oftheexisting provisions butwithcertain adjustments, suchas:
- Theeliminationofhistoricalreferencequantities,sothatindividualquantitiesarederived
from quantities available onholdings at31March 1993;
- thelevyisequal to115% ofthetarget price forbothdeliveries anddirect sales;
- definitive transfers maybemade between twotypesofquota attherequest ofproducers;
- theCommunity reserve isabolished anditsvarious partsdistributed between Member
States andincorporated intototalquantities;
- theprinciple ofthetemporary lease ofunused quantities isestablished, withcertain
derogation;
- theprinciple oflinking quotas toholdings isretained, butgreater flexibility isallowed
incertain cases;
- theprovisions oncontrol arestrengthened, asaretherulesenforcing payment ofthe
levy.
In1991, totakeintoaccount theGerman reunification, thequantity wasincreased by6,599,880
tonnes.
In1993, theCommission implemented aCouncil decision concerning afinancial contribution
ofECU 40million tonational buy-up schemes. TheECcontribution isofamaximum amount of
ECU 50per100kilosofnonproduced quantities. Member States maypayasubsidy below ECU 50
per100kilosandusetheremaining amount tobuyupsupplementary quantities. Theymayalsoincrease
thesubsidy using national funds.
In1993, theCouncil decided toincrease, atfirstonaprovisional basis andsubsequently on
adefinitive basis, thequantities allocated toItalyby900,000 tonnes, toSpain by500,000 tonnes and
toGreece by100,000 tonnes.
In1994, thefollowing quantities wereallocated tothenewmember States: Austria: 2,572,000
tonnes, Finland: 2,352,000 tonnes andSweden: 3,303,000 tonnes. Furthermore, theCouncil decided
toallocate aSLOM reserve toAustria of180,000 tonnes andtoFinland 200,000 tonnes.
1SLOM: Slacht-en Omschakelingsrgeling =premiuns fornon-marketing andconversion.G/SCM/N/25/EEC
Page26
Inthefourlastyears, thetotalquantities available were:
(million tonnes)
1993/94 1994/95 1995/96 1996/97
106.5 117.3 117.4 117.5
"OILS AND FATS" SECTOR
Olive oil
Themarket organisation system forolive oilismade upasfollows:
1. Anintervention price isfixed forolive oilbefore thebeginning ofthemarketing year
(1November). Theintervention agencies areobliged tobuyinatthisprice anyolive oilofthe
Community origin which maybeoffered tothem during thelastfourmonths ofthemarketing year.
Theintervention price isfixed foragiven standard quality. Ifthequality ofoliveoiloffered
differs from thestandard quality, theprice isadjusted inaccordance withascale ofprice increases
orreductions.
Asfrommarketing year1990/91, theCouncil hasintroduced astabilising mechanism forthe
intervention price. Ifinanymarketing yearproduction exceeds theguaranteed maximum quantity
(GMQ) (1.35 million tonnes), theintervention price fortheensuing marketing yearisreduced byup
to3%onacumulative basis.
2. Aidtoproducers isalsogranted inrespect ofoliveoilproduced intheCommunity fromolives
harvested intheCommunity. However, ifinanymarketing yearproduction exceeds theGMQ
(1.35 million tonnes), theamount ofaidisreduced proportionately totheoverrun. Thisaidisdesigned
tocontribute toestablishing afairincome forproducers. Increased aidisalsogranted forsmall
producers whoareexempt from theco-responsibility scheme.
3. Arepresentative market price isfixed bytheCouncil before thebeginning ofeachmarketing
yearatalevelpermitting disposal ofolive oilproduction.
4. Consumption aidisgranted, equal tothedifference between theproduction target price, less
theproduction aidandtherepresentative market price. Thisaidisdesigned tofacilitate themarketing
oftheCommunity olive oil.
5. Export refunds aregiven topermit theCommunity firms toexport oliveoiltothirdcountries.
Thevarious elements mentioned above were fixed atthefollowing levels:
(ECU/100 kg)
1994/95 1995/96 1996/97
Intervention price
Production aid
Production aidforsmall producers
Representative market price
Consumption aid191.92
142.20
151.48
229.50
12.07186.17
142.20
151.48
229.50
12.07180.58
142.20
151.48
229.50
12.07G/SCM/N/25/EEC
Page27
6. Productionrefundforoliveoilusedinthemanufactureofpreserves(vegetables,fish,crustaceans)
Thepurpose ofthisrefund istoenable beneficiaries tobuyontheCommunity market, atprices
closetoworld market prices, thequality ofoilwhich theyusemostfrequently fortheirmanufacturing.
Production refunds
(ECU/100 kg)
1994/95 1995/96 1996/97
-Olive oilproduced intheCommunity
-Olive oilother thanreferred toabove62.18
50.1167.18
55.1867.18
-
*From the1995/96 marketing yearon,thesame amounts areapplicable forolive oilinthe
Community andforimported olive oil.
Note: These amounts represent average refunds.
"SUGAR" SECTOR
1. Prices
(a) Sugar
Each year, anintervention price forwhite sugar isfixed forthenon-deficit areas ofthe
Community;theinterventionagenciesarerequiredtobuyinthesugarconcernedatthatpricethroughout
themarketing year.
Intervention prices derived from thatprice arealsofixed foreachofthedeficit areas.
Theintervention price isfixed forastandard quality; ifthequality ofsugar isdifferent, the
price isadjusted inaccordance withascale ofincreases orreductions.
Inaddition, anintervention price derived fromtheintervention price forwhite sugar isfixed
forrawsugar ofastandard quality afterallowing forauniform refining margin andnational yield.
Intervention prices
(ECU/100 kg.)
1992/93 1993/94 1994/95*1995/96 1996/97
White sugar 53.01 52.33 52.33 63.19 63.19 63.19
Rawsugar 43.94 43.37 43.37 52.37 52.37 52.37
*Since 01.02.1995, intervention prices arecalculated onthebasis of"new" ECUs, obtained bymultiplying the
"old" ECUs bytheagromonetary coefficient of1.207509.
(b) Beet
Forbeet, abasic price isfixed eachyearvalid foraspecific delivery stage andaspecified
standard quality. Thisprice isfixed taking account oftheintervention price forwhite sugar andof
national values representing inparticular theprocessing margin, yield, andundertakings 'receipts fromG/SCM/N/25/EEC
Page28
salesofmolasses. Inaddition aminimum price isfixed forAbeet2equal to98%ofthebasic price
andaminimum price forBbeet3equal to68%or60.5% ofthebasic price.
These percentages areindirect relation withtheproduction levies charged onAsugar and
Bsugar. Manufactures arerequired topayatleastthese prices.
Inaddition, inareas forwhich aderived intervention priceofwhite sugar hasbeenfixed, these
minimum prices areincreased byanamount representing theeffects ofregionalization ofprices.
2. Production levies
Asfrom 1July1981, theprinciple inforce isthatproducers should bearthefullamount of
anyfinancial losses resulting from disposal ofsurplus production ofCommunity sugar inrelation to
consumption intheCommunity. Practical implementation ofthisprinciple isensured through alevy
which maybecharged atarateofupto2%oftheintervention price onallproduction under quotas
AandB(whereas hitherto onlyBsugar wassubject toalevy).
Ifthisfirstlevydoesnotsuffice tocover thefinancial losses inquestion, thenasecond levy,
which initially maynotexceed 30%andsubsequently 37.5%, ifnecessary, oftheintervention price,
ischarged butonlyonBquota production (i.e.atotalof2%plus37.5% =39.5%, which represents
aminimum priceforbeetof60.5% ofthebasic price). Thispossibility hasbeenusedsince marketing
year1982/83. Anyremaining losses notcovered bythese levies havebeenabsorbed since marketing
year1986/87 byadditional levies. These newlevies wereintroduced during therevisions ofthequota
system from 1986 to1988, initially toabsorb theaccumulated negative balance notcovered during
thefivemarketing years from 1981/82 to1985/86, andsecondly toavoid anyfurther accumulation
during thefive-year period (from 1986/87 to1990/91) forwhich ithasbeendecided toextend the
quota system. Thus, formarketing years 1986/87 and1987/88 aspecial absorption levywasintroduced,
aswellasanadditional levyfortheremaining threemarketing years soastoabsorb annually thelosses
notcovered bythenormal production levies. These levies arecalculated bymultiplying thetotalamount
owed bytheenterprise byafactor representing therelation between thetotallossrecorded andthe
receipts from thenormal levies, i.e.thebasic levyforAandBsugar andtheBlevyforBsugar.
Theintegral self-financing system onanannual basis hasbeenextended whenever thequota system
hasbeenextended.
3. Reimbursement ofstorage costs
Provisions hasbeenmade forreimbursement ofstorage costs inrespect ofsugar produced
under quotas AandB.Thereimbursement iscalculated onthebasisoftheintervention priceforwhite
sugar andastandard fixed-rate interest rateforthewhole Community. Itisaimed atequalizing storage
costs intheCommunity. Itisameasure designed toensure regular disposal ofsugar inthemarket
throughout themarketing year,toprevent thesaleofexcessive tonnage during themanufacturing period
andinparticular toavoid theoffering ofsugar tointervention agencies solely inorder toavoid storage
costs. Thisreimbursement isfinanced outofalevyonmanufacturers, based ontheprinciple ofequality,
attheCommunity level, between thetotalsumreimbursed andthetotalsumlevied.
2Abeetisbeetintended forprocessing intoAsugar, i.e.intosugar included inproduction quota A.
3Bbeetisbeetintended forprocessing intoBsugar, i.e.intosugar included inproduction quota B.G/SCM/N/25/EEC
Page29
4. Intervention measures
(a) Production refunds aregranted onsugar usedinthechemical industry, ofwhich 60,000
tonnes arecharged tothebudget, thatbeing thequantity eligible forrefunds before
anewsystem came intoeffect on1July1986under which allquantities overandabove
thatceiling arecharged totheproducers andcovered bythelevies theypay.
(b) Disposal aid(transport, refining) isgranted onrawsugar produced intheFrench
overseas departments inorder toensure thatithasthesameconditions ofrefinery access
aspreferential sugar (ACP countries andIndia).
Variable refining aidorcorresponding tariff adjustment isgranted onallrawsugar refined
intheCommunity (including, uptoendJune1995, alsosugar imported intoPortugal andFinland with
areduced levy) inorder tomaintain arefining margin thatisnecessary fromtheeconomic aspect and
thusensure, inparticular, thedisposal ofpreferential sugar.
"BOVINE MEAT" SECTOR
1. Inthebovine meatsector anintervention priceisfixedeachyearvalidforthereference quality
forslaughtered adult malebovine animals.
Market price quotations andpublic intervention buying-in arebased ontheCommunity scale
forclassification ofadult bovine carcasses.
Inthelastthree marketing years theintervention prices havebeenasfollows:
Intervention price (ECU/100 kgcarcass
weight)
Marketing year1994/95
Marketing year1995/96
Marketing year1996/76367.94
347.50
347.50
Inaddition topublic intervention, aidtoprivate storage maybegranted. Theamount ofsuchaidis:
- Either established under atendering procedure;
- orfixed inadvance onalump sumbasis.
2. Price support regime
TheEuropean Community hasintroduced measures tolinkmanagement oftheinternal market
more closely tomarket price trends.
Under thenewregime:
- Forthedetermination ofbuying-in prices under thetendering procedures, onlyoffers
notexceeding market prices bymore thanareasonable margin areeligible;
- thethresholds fortheactivation ofintervention buying-in havebeenfixed asfollows
(tendering procedure):G/SCM/N/25/EEC
Page30
Market price asapercentage of
theintervention price equal to
347.50 ECU/100 kg.carcassUnder regular tendering
proceduresUnder safety net
Community market price
Member State market price84%
80%78%
60%
Toimprove fattening ofbovine animals, carcasses classified as0quality intheCommunity
scale aretobeexcluded gradually from public intervention asfrom 1993.
Lastly, anECU 120.8 premium peryoung maledairy calfwithdrawn fromproduction before
theageof20dayswasgranted in1996. In1997 thispremium amounts toECU 120peryoung male
dairy calfandtoECU 150pernon-dairy calf.These amounts canhowever bemodified atanymoment.
Furthermore, in1997and1998anadditional earlymarketing premium ofECU 50toECU 80
isgranted inthecasewhere thevealweight is15%lower thanthenational average weight registered
inthepast.
Thereorientation measures adopted inthebovine meatsector alsoinclude asubstantial reduction
inthelevelofprice support. Thisisoffset bythegrant ofdirect income support, which isnottied
tothelevelofproduction, applicable asfrom 1January 1993, andsubject to:
- atfarmlevel, adensity threshold inlivestock units(LSU) perhectare offorage area;
and
- atCommunity level, aceiling onthenumber ofanimals eligible forpremium.
3. Premiums
Payment ofpremiums inthebovine meatsector issubject toadensity requirement inLSU/ha.
offorage area, which hasbeenfixed asfollows:
In1994: 3.0LSU/ha.
In1995: 2.5LSU/ha.
From 1996: 2.0LSU/ha.
Thedensity requirement doesnotapply, however, toholdings withlessthan15LSU.
Inaddition, asupplementary extensification premium ofECU 36.23 pereligible headmay
begranted when thestocking density islower than1.4LSU/ha. In1997, thissupplementary premium
amounts toECU 36andtoECU 54when thestocking density islower than1,0LSU/ha.
(i) Special premium foryoung malebovine animals
Thespecial premium foryoung malebovine animals applicable toeachoftheagegroups over
10months andover22months, issetat:
ECU 75for1994
ECU 90for1995
ECU 108.7 for1996 (only at10months)
ECU 135forbulls andECU 108.7 forsteers for1997G/SCM/N/25/EEC
Page31
Inacountry where thepercentage ofmalebovine animals slaughtered during the"offgrass" period
(IX-XI) exceeds 35%ofthetotalnumber slaughtered during theyear, anadditional deseasonalization
premium ofadecreasing amount ofECU 72.45 toECU 18.11 perheadmaybegranted forbovine
maleanimals slaughtered between 1January andtheendofMayofthefollowing year.
(ii) Premium forthemaintenance ofsuckler cowherds
Thesuckler cowpremium isgranted tobreeders whodonotdeliver milkordairy products
orwhose milkproduction islower thanareference quantity of120,000 kg.
Thepremium issetat:
ECU 95for1994
ECU 120for1995
ECU 144.9 for1996
Anadditional premium ofECU 30.19 percentpercowmaybegranted atnational level(of
which ECU 24.15 aresupplied bytheEAGGF) inregions where development inthesector islagging
(Greece, Ireland andNorthern Ireland, Portugal andcertain regions ofSouthern Italy, Spain andFrance).
4. Other provisions
ForthenewGermanBundesländerwhicharestillrestructuringtheirlivestocksectors,thenumber
ofanimals eligible forpremium issetasfollows:
- 235,316 young bovine males forthespecial premium for1997;
- 306,048 eligible suckling cows for1997;
- 1,000,000 eligible ewes
"PIGMEAT" SECTOR
1. Each yearabasic price isfixed formeat ofdomestic swine, presented incarcasses orhalf
-carcasses ofastandard quality. Thebasic prices forrecent years havebeenasfollows:
Asfrom 1July1994
Asfrom 1July1995
Asfrom 1July1996ECU 130.00/100 kg
ECU 150.94/100 kg
ECU 150.94/100 kg1
1Foragrimonetary reasons, theprice hasbeenadjusted (divided by1.013088, thenmultiplied by1.207509); new
standard quality.
2. Intervention measures maybetaken when, ontherepresentative markets intheCommunity,
theaverage price forpigcarcasses islessthan103% ofthebasic price.
Where intervention measures aretobetaken, theproducts forwhich private storage aidis
tobegranted and,where appropriate, theproducts ofadefined quality which aretobebought-in are
determined, andlikewise theprices atwhich theintervention agencies aretobuy-in products andthe
amount ofprivate storage aidarefixed.
Thebuying-in prices forpigcarcasses ofstandard quality maynotbemore than92%norless
than78%ofthebasic price.G/SCM/N/25/EEC
Page32
Thebuying-in prices forpigcarcasses ofstandard quality maynotbemore than92%norless
than78%ofthebasic price.
Forproducts otherthanpigcarcasses ofstandard quality, thebuying-in prices arederived taking
intoaccount differences inproduct value.
Public intervention hasnotbeenusedsince more than20years.
3. Because ofcyclical andseasonal variations inpigmeat prices, aswellasveterinary restrictions
ontrade, andtoprivate storage granted inrespect ofseveral products inthesector, asindicated in
thefollowing summary:
Year Period Number of
weeksContracts concluded for
frozen meats (tons)Region of
application
1993
1994
1995
199622.03-14.06.93
-
06.02-17.03.95
27.11.95-16.02.9612
-
6
1283,000
-
69,000
48,000EC
-
EC
EC
Duetotheoutbreak ofclassical swine fever inGermany, theNetherlands andSpain exceptional market
support mechanisms havebeenintroduced early 1997 inthese countries. Fattened pigsandpiglets
aredelivered totheauthorities andanaidispaidforthese animals.
"SHEEPMEAT AND GOATMEAT" SECTOR
Themarket organisation forsheepmeat andgoatmeat isgoverned byRegulation (EEC)
No.3013/89.
Theproducts covered arethefollowing:
- liveanimals;
- meat: fresh, chilled orfrozen;
- processed products: meat andoffal ofsheep andgoats, salted, dried orsmoked,
preserved, other;
- offal
Themarketing yearrunsfrom thefirstMonday inJanuary totheendoftheprevious dayof
thefollowing year.
Expenditure inthissector accounted in1996for4.3% oftotalEAGGF Guarantee expenditure.
A. Operation ofthemarket insheepmeat
Price arrangements
Every yeartheCouncil fixesthebasicpriceforfreshorchilled sheep carcasses. Itisthesame
fortheentire Community.
Thebasic price isseasonally adjusted bytheCouncil onaproposal from theCommission,
totakeaccount ofseasonal variations onthismarket.G/SCM/N/25/EEC
Page33
Theinstitutional prices forthe1996marketing yearwerefixed inthe1995/96 prices package.
Forthe1997 marketing year, theCouncil decided tomaintain thebasic price attheleveldecided for
the1996 marketing year.
Price decision inECUs
Product 1997
(Period ofapplication) Amounts %
ECU/t change
(6.1.1997-4.1.1998)
Sheepmeat andgoatmeat 5,040.7 0
Basic price (carcass weight)
B. Specific market instruments
Import andexport arrangements
Thearrangements forimports varyaccording totheproduct imported. Forsome products,
i.e.offal, theCommon Customs Tariff duties arechargeable.
Forothers, i.e.liveanimals otherthanpure-bred breeding animals, andmeat, chilled orfrozen,
imports attracted alevy. Thelevymatched thedifference between thebasicprice, seasonally adjusted,
andtheCommunity free-at-frontier priceestablished onthebasisofthemostrepresentative purchasing
possibilities, asregards quality andquantity, recorded during aperiod tobefixed, preceding the
determination ofthelevy.
However, forproducts bound under GATT, i.e.fresh andfrozen meat, thelevies could not
exceed theamount bound (20% advalorem ).
Aspecial levycould befixed forproducts originating inorcoming from oneormore
non-member countries, ifsuchexports wereeffected atabnormally lowprices. Inpractice, however,
under voluntary restraint arrangements concluded in1980withthemainnon-member supplier countries,
theimport levies were limited to10%advalorem .Infact,since 1989 formeat and1990 forlive
animals, every import inthecontext ofthevoluntary restraint arrangements oranalogous autonomous
regime wasexempt duties andlevies. Thissituation existed until30June1995 when, following the
GATT arrangements, thelevies were replaced byfixed duties.
Exports ofsheepmeat may, where necessary, could attract arefund matching thedifference
between theprices oftheproducts ontheworld market andthose intheCommunity. Itmaybevaried
according tointended use/destination. Thus far,theinstrument inquestion hasnever beenapplied.
Private storage
When theCommunity market price andthemarket price ofagiven quotation areaareless
than90%oftheseasonally adjusted basic price andlikely toremain so,private storage aidsmaybe
decided onbytheCommission forthequotation areainquestion.
Premiums
(a) Eweandgoatpremium
Thelossofincome, which represents thedifference between thebasicpriceandthearithmetical
mean ofthemarket prices recorded during themarketing year, iscalculated attheendofthemarketingG/SCM/N/25/EEC
Page34
year. Theamount ofthepremium payable pereweisobtained bymultiplying thelossofincome by
theaverage annual production oflamb perewe.
Themember States areauthorized topayalltheirproducers twosix-monthly advances of30%
oftheforeseeable amount ofthepremium. Theamount ofthefinalpremium isfixed attheendof
themarketing year, andthebalance ispaidaccordingly.
Insomeclearly defined regions oftheCommunity, eligibility forthepremium hasbeenextended
toshe-goats. Inthiscase, theunitamount corresponds to80%oftheewepremium.
Adistinction ismade between ewesproducing heavy lambs andthose producing lightlambs.
Thecalculation ofthelossofincome andtheproductivity coefficient arelimited totheproduction of
heavylambs.Theresultingamountisgrantedonewesproducingheavylambs,whileforewesproducing
lightlambs theamount isreduced by20%.
Inviewoftheincrease inexpenditure onthissector, theCouncil, acting onaproposal ofthe
Commission, decided inJune1992 onanindividual limit onguarantees, eachproducer being able
toreceive theewe/goat premium onlywithin thelimitofthequantities received forthe1991marketing
year(after deduction ofbetween 1and3percenttoresource anational reserve). Where thenumber
ofewes inamember State increased between 1989 and1991, theincrease would beadded tothe
individual limitofeachproducer.
(b) Variable slaughter premium
Uptotheendofthe1991 marketing year, theUnited Kingdom could grant asheep slaughter
premium intheregion ofGreat Britain. Theewepremium payable inGreat Britain wasreduced to
takeaccount ofthevariable premiums actually granted.
Stabilizer
From 23May1988, where thetotalewenumber recorded foramarketing yearexceeds a
maximum guaranteed quantity, thepremiums arereduced bytheimpact onthebasicpriceofacoefficient
representing a1%cutinthebasicpriceforeach1%tranche bywhich themaximum guaranteed quantity
isexceeded. Since 1993, thestablizer hasbeenfrozen at7%.
"FRUIT AND VEGETABLE" SECTOR
(a) Measures topromote theformation ofproducers 'organisations
Inorder toencourage theformation ofproducers 'organisations andfacilitate theiroperation,
aidcanbegranted tosuchorganisations established, ontheinitiative ofproducers, inorder topromote
theconcentration ofsupply andtheregularization ofprices attheproducer stage andtomake suitable
technical means available forpresenting andmarketing products.
Thefollowing maybegranted:
- Initial aidduring thefiveyears following thedateofrecognition oftheorganisation.
Theamount ofthisaidforthefirst,second, third, fourth andfifthyears is,respectively,
5,5,4,3and2percentofthevalue ofproduction marketed, provided thattheresulting
amounts donotexceed theactual costs ofestablishing andadministering the
organisation;G/SCM/N/25/EEC
Page35
- aidintheform ofloans onspecial terms tocover partoftheforeseeable costof
withdrawal measures, suchaidbeing granted onlyduring thefiveyears following the
dateofestablishment oftheorganization.
(b) Intervention measures
Forcertain fruitandvegetables (Cauliflowers, tomatoes, sweet oranges, mandarins, lemons,
table grapes, apples (other thancider apples), pears (other thanperry pears), peaches, aubergines,
apricots, nectarines, clementines andsatsumas twomeasures areprovided inorder toavert aprice
slump intheCommunity market, i.e.:
- Withdrawal byproducers 'organisations4,
- buying-in bodies ornatural orlegalpersons appointed bythemember States forthis
purpose.
Producers 'organisations taking withdrawal measures inaccordance withtheprovisions ofthe
regulations, inparticular asregards thelevelofwithdrawal prices andtheompensation ofassociated
producers andlikewise asregards theutilisation ofproducts withdrawn, obtain financial compensation
equivalent tothecompensation paidbythemtoassociate producers, afterdeduction ofthenetreceipts
derived from theproducts withdrawn from themarket.
Buying-in bybodies ornatural orlegalpersons appointed bythemember States forthispurpose
takes place onlywhere aserious crisis isfound toexistfortheproduct concerned orwhere therules
regarding withdrawal applied byarepresentative producers 'organisation inaneconomic district are
extended toproducers inthedistrict whoarenotmembers oftheorganisation.
(c) Special measures forcitrus fruit
(i) Measures forthemarketing offresh citrus fruit
TheCommunityparticipatesinpromotiondrivesorganisedincollaborationwithvariouseconomic
operators inthissector.
(ii) Measures toencourage recourse toprocessing
Inorder toencourage recourse toprocessing, there isasystem ofprocessing aidconsisting
offinancial compensation fortherawmaterial forthebenefit ofcitrus fruitprocessors whohave
concluded contracts withproducers undertaking topurchase theproducts attheminimum price fixed
bytheCommunity.
(d) Special measures fornuts
Inorder toencourage thenutssector (almonds, hazelnuts, walnuts, pistachios andcarobs) to
modernize existing production andmarketing conditions, provision hasbeenmade forthefollowing
forthebenefit oforganizations ofnutproducers:
- Special aidfortheirestablishment;
4Foranumber offruits andvegetables, theCommunity hasintroduced athreshold forintervention.
Ifthethreshold isexceeded, thewithdrawal price forthenextmarketing yearisreduced accordinglyG/SCM/N/25/EEC
Page36
- aidfortheestablishment ofaworking capital fundtoallow storage andimprove
marketing;
- aidtoimprove varieties andcultivation andmodernize marketing under aplantobe
presented byproducers 'organizations;
- participation inpromotion drives organised incollaboration withthevarious economic
operators inthissector.
Thisaidisgrantedtotheproducers'organisationsonlytotheextentthattheyfurnishasubstantial
proportion ofthefunds usedtopromote these activities.
(e) Special measures fortableapples
TheCommunity participates inpromotion drives:
- Toencourageconsumptionoffreshapples,includingresearchforvarietydiversification;
- toencourageconsumptionofproductsprocessedfromapplesharvestedintheCommunity.
OnOctober 1996, theCouncil oftheEuropean Union adopted areform oftheCommon Market
Organization forthefruitandvegetable sector, applicable asfrom1January 1997. Thisreform aims
toreinforce theeconomic roleoftheproducers organisations andtoavoid theriskofstructural
withdrawals.
"BANANAS" SECTOR
(a) Measures topromote theformation ofproducers 'organisations
Inorder toencourage theformation ofproducers 'organisations andfacilitate theiroperation,
aidcanbegranted tosuchorganizations established ontheinitiative ofproducers, inorder topromote
theconcentration ofsupply andthecontrol ofprices attheproducer stage andtoprovide members
withappropriate technical facilities forpacking andmarketing bananas.
Start-up assistance maybegranted during thefirstfiveyears following recognition ofthe
organisation, amounting to5%,5%,4%,3%,and2%ofthevalue oftheproduction marketed, for
eachsuccessive year, provided thattheactual costofestablishing andadministering theorganization
arenotexceeded.
(b) Compensatory aidtoproducers
Acompensatory aidispayable toallproducers whoaremembers ofarecognised producers '
organisation, andalsotoindividual producers whoareunable tojoinsuchanorganization, onvolumes
marketed uptoamaximum of854,000 tonnes.
Thiscompensation iscalculated asthedifference between the"flat-rate reference income" of
ECU 592.9/tonne ex-packing station, andthe"average production income" atex-packing station stage
obtained ontheCommunity market during therelevant yearforbananas produced andmarketed within
theCommunity.G/SCM/N/25/EEC
Page37
"PROCESSED FRUIT AND VEGETABLES" SECTOR
Production aid
(a) Asystem ofproduction aid,intheform ofdirect aidtoprocessors, hasbeenestablished for
pineapples preserves, Community production ofwhich islocated intheFrench overseas
departments.
Thesystem isdesigned tocompensate thedifference between theCommunity priceandprices
prevailing inthirdcountries.
Thegrant ofthisaidisconditional onpayment ofaminimum price topineapple producers.
(b) Since marketing year1978/79, aCommunity system ofproduction aidhasbeenineffect for
prunes prepared from dried Enteplums, processed tomato products andpeaches insyrup.
Thissystem wasextended toWilliam pears insyrup witheffect frommarketing year1979/80.
Lastly, Community aidinrespect ofdried grapes anddried figswasgranted forthefirsttime
formarketing year1981/82.
Grant ofthisaidisconditional onpayment ofaminimum price toagricultural producers.
Theamount oftheaidissetsoastocompensate thedifference between theprice level of
Community rawmaterial resulting fromtheminimum producer priceandthatofthird-country
products.
Asfrom marketing year1990/91, until1993/94 aidperhectare ofspecialized dried grapes
areahasbeenprogressive inparallel withaprogressive reduction ofthenominal producer
price which would affect thelevelofaidtobepaidtoprocessors. Asfrom marketing year
1994/95, there isnomore aidtoprocessors. Theaidperhectare isgranted within anarea
limitof53,000 ha.
(c) In1982 theCommission introduced aguarantee threshold forindustrial tomatoes.
Asfrom1985, thethreshold system wassupplemented byasystem ofproduction quotas. This
dualsystem wasapplied untilmarketing year1991/92.
Forthe1992/93 marketing yearthethreshold system wasagain inforce. TheCouncil decided
on17March 1993 toreintroduce, asfrom the1993/1994 marketing year, thequota system
asoperated during marketing years 1990/91 and1991/92. Thesystem provides foratotal
quota of6,596,787 tonnes.
Thisamount isdistributed asfollows:
- 4,317,339 tonnes fortomato concentrate;
- 1,543,228 tonnes forwhole peeled tomatoes;
- 736,220 tonnes forother tomato-based products.G/SCM/N/25/EEC
Page38
(d) Asfrom marketing year1990/91, aidforpeaches insyrup isalsogranted withathreshold
limitof582,000 tonnes interms ofnetweight, fortheCommunity.
(e) Asfrommarketing year1989/90, production aidhasbeenextended toother tomato products,
peaches andpears preserved innatural fruitjuiceandRocha pears. Thisextension hasbeen
made without anyincrease intheexisting guarantee threshold and/or quota.
(f) Theproduction quota foraidinrespect ofWilliam pears insyrup hasbeenconverted intoa
guarantee threshold foraidinrespect ofWilliam andRocha pears insyrup and/or natural fruit
juice. Theguarantee threshold isfixed at102,805 tonnes.
Amount ofaid
Product ECU/100kg net1*
ECU/ha1
1994/95ECU/100 kgnet1*
ECU/ha1
1995/96ECU/100 kgnet1*
ECU/ha1
1996/97
Tomato concentrate 25,289 30,155 29,612
S.Marzano whole peeled tomatoes
-preserved
-frozen9,305 10,843 10,648
Roma whole peeled tomatoes 6,562 7,647 7,509
.preserved
.frozen
Non-whole tomatoes, peeled and
frozen4,594 5,353 5,256
Tomato juice (CN Heading 2002
90)
-7/8%
-8/10%
-10/12%6,693
8,031
9,8167,799
9,359
11,4387,658
9,190
11,232
Tomato juice (CN Heading 2009
50)
-4.5/5%
-5/7%4,239
5,3544,939
6,2394,850
6,127
Tomato flakes 86,115 100,344 98,537
Peaches insyrup/juice 7,174 8,663 8,663
Prunes 61,094 76,146 82,505
William pears insyrup/juice 17,232 19,319 18,087
Sultanas
-aidtoprocessors
-aidperhectare-
2,306*-
2,785*-
2,785*
Dried figs-Cquality 27,556 33,552 33,552
Pineapple 125,565 165,646 166,871
1Deletion ofthe“switch over”factor from 1February 1995. Therefore, theamounts for1995/96 and1996/97
must bedivided by1.207509 tobecomparable tothose for1994/95.
OnOctober 1996, theCouncil oftheEuropean Union adopted areform oftheCommon Market
Organization fortheprocessed fruitandvegetable sector, applicable asfrom 1January 1997. This
reform maintains thegeneral framework oftheexisting regime, increases theroleoftheproducerG/SCM/N/25/EEC
Page39
organisations andmodifies theregime forprocessed tomatoes inorder tofacilitate theadaptation of
thissector totheevolution ofthemarket.
"WINE" SECTOR
1. Each year, before 1August, aguide price isfixed foreachtypeoftablewinerepresentative
ofCommunity production. Athreshold price activating anintervention mechanism, termed the
"activating price" isapplicable during eachwineyearforeachtypeofwineforwhich aguide price
isfixed. Thisprice isapplicable atthesame stage astheguide price andcorresponds to92%ofthe
latter.
Guide prices forwineyear1996/97 havebeensetasfollows:
Type ofwine
RI
RII
RIII
AI
AII
AIII(ECU/% vol./hl.)
(ECU/% vol./hl.)
(ECU/hl.)
(ECU/% vol./hl.)
(ECU/hl.)
(ECU/hl.)3,828
3,828
62,150
3,828
82,810
94,570
Asannounced when prices werefixed forthepreceding wineyear, prices oftablewines AI,
RIandRIIhavebeenfixed atthesame levelasin1994/95, taking intoaccount themonetary factor.
Spanish prices havebeenfixed soastotakeaccount ofthealignment ofprices forredandwhite wines
andtheapproximation ofprices totheEC-Ten levelasprovided forinthetreaty ofaccession.
2. Aidforprivate storage oftablewines andgrape must
Theaimofprivate storage aidistoencourage wineproducers tousestorage tofreeze existing
surplus supplies onthemarket foracertain period. There aretwopossibilities forconcluding private
storage contracts:
- longtermcontracts where thesupplies ofwineavailable atthebeginning ofthe
marketing yearexceed foreseeable requirements byfourmonths. Storage formust
isavailable when longtermstorage forwineisdecided on.Aidisconditional onthe
conclusion ofstorage contracts validforaperiod ofninemonths. Contracts mustbe
concluded between 16December and15February.
- when longtermcontracts expire butmarket prices failtomatch theactivating price
forthree successive weeks, fourmonth contract maybeconcluded.
3. Aidtoconcentrated grape mustandrectified concentrated grape mustusedinthewine-making
Aidisgranted inrespect ofconcentrated grape must andrectified concentrated grape must
usedtoincrease thealcoholic strength ofwines. Theamount oftheaidisfixed inthelightofthe
difference between thecostofenrichment bymeans ofgrape must andsucrose, respectively.
Forwineyear1995/96, theaidisfixed, perdegree ofpotential alcoholic strength byvolume
perhectolitre ofconcentrated grape must andrectified concentrated grape must used, asfollows:G/SCM/N/25/EEC
Page40
- ECU 1,699 intheECforconcentrated grape mustprepared fromgrapes originating
inthewine-growing zones CIII(a)andCIII(b);
- ECU 1,446 intheECforconcentrated grape must other thanthatreferred tointhe
firstindent;
- ECU 2,206 intheECforrectified concentrated grape must prepared from grapes
originating inthewine-growing zones CIII(a)andCIII(b)orproduced outside the
saidzones infacilities which began production prior to30June1982, andprior to
1January 1986 inSpain, regardless oftheorigin ofthegrapes;
- ECU 1,953 intheECforrectified concentrated grape must other thanthatreferred
tointhethirdindent.
4. Aidtograpes, grape must andconcentrated grape must used forpurposes other than
wine-making
Inorder toencourage theuseofwineproducts ofCommunity origin forpurposes other than
wine-making, asystem ofaidhasbeenestablished.
(a) Forgrapes, grape mustandconcentrated grape mustintended forthepreparation ofgrape juice,
theamount oftheaidforwineyear1995/1996 hasbeenfixed fortheentire Community at:
- ECU 6,603 perquintal ofgrapes;
- ECU 8,257 perhectolitre ofgrape must;
- ECU 28,873 perhectolitre ofconcentrated grape must.
virtually corresponding tothelevelforthepreceding wineyear. Only 75percentoftheaid
ispaidtotheprocessor, theremainder being withheld tofinance campaigns topromote grape
juiceconsumption.
(b) Forconcentrated grape mustintended fortraditional preparation intheUnited Kingdom and
Ireland ofcertain products falling within CNHeading 22.06.00 ("British andIrishwines"),
theamount oftheaidforwineyear1995/96 hasbeenfixedatthesame levelasintheprevious
wineyearbutwiththeapplication ofthemonetary coefficient, i.e.0,2374 ECU/kg. Theproduct
must beobtained entirely from grapes produced inwine-growing zones CIII(a)andCIII
(b)oftheCommunity.
(c) Forconcentrated grape must usedastheprincipal element inagroup ofproducts marketed
intheUnited Kingdom andinIreland withvisible instructions forpreparing abeverage imitating
wine("home-made wine"), theamount ofaidhasbeensetatthesame levelasinpreceding
wine years butwiththeapplication ofthemonetary coefficient, i.e.ECU 0,3103/kg. of
concentrated grape must used.
(d) Forwine year1995/96, theCommission hasnotfixed aidfortheuseinanimal feedof
concentrated grape must.G/SCM/N/25/EEC
Page41
5. Distillation
(a) Preventive distillation
Where necessary, taking intoaccount harvest forecasts orinorder toimprove thequality of
wines marketed, theCommission mayopenthepossibility, ineachwineyear,ofpreventive distillation
oftablewines at65%oftheguide pricefrom1September untiladatetobedetermined (inmostcases
untilJanuary/February). Thedistillation hastotakeplace during thewinemarketing year(thatmeans
notlaterthan31August) concerned. Thequantity oftablewines delivered forpreventive distillation
byeachproducer istaken intoaccount fordischarge ofobligations deriving from anycompulsory
distillation subsequently decided on.Forwineyear1995/96, theeligible quantities arelimited to12hl.
perhectare. ForGermany andAustria these quantities arelimited to2and3hl.perhectare,
respectively. Forthefirsttime, theCommission fixed amaximal quantity at6.3million hectolitre
ofwineforthisdistillation, shared between producer member States.
(b) Compulsory distillation
TheCommission orders compulsory distillation:
- When stocks exceed fourmonths 'normal requirements;
- orwhen market prices remain below 82%oftheguide price during arepresentative
period;
TheCommission determines foreachregion thequantities tobedelivered forcompulsory
distillation inorder toeliminate surpluses, andrestore anormal market situation. Thisvolume is
allocated:
- Asbetween theregions oftheCommunity, grouped byMember States, proratato
theproduction volumes inexcess ofaspecific levelforeachofthem, equal toauniform
percentage oftheiraverage harvest calculated onthebasis ofthe1981/82, 1982/83
and1983/84 wineyears;
- ineachregion, among producers according toaprogressive scale based onyield per
hectare which mayvarywiththeregion andtaking account ofpastyields.
Forwinemarketing year1995/96, nocompulsory distillation wasforeseen.
(c) Distillation atguaranteed minimum price, termed support distillation
Whenever compulsory distillation isdecided on,theCommission atthesame timemakes
provision fordistillation ataprice equivalent to82%oftheguide price foreachtypeoftablewine.
Even inthecourse ofwineyears during which nocompulsory distillation isdecided on,the
Commission may, ifthemarket situation fortablewinesorequires, make provision fordistillation
atthebuying-in price of82%. Distillation measures maybelimited tocertain tablewines determined
having regard tothetypeconcerned, ortooneormore wine-producing zones. Forthemarketing
year1995/96, theCommission doesnotforesee thismeasure.G/SCM/N/25/EEC
Page42
(d) Compulsory distillation under system ofwinedeliveries
Theaimistoavoid overpressing ofgrapes andtoensure thatwine-making by-products are
notreused forthemanufacture ofpoorquality wines.
Thebuying-in price fortheproducts concerned hasbeenset,forwine year1995/96, at26
percentoftheguide price setforAItablewineforthatwineyear.
(e) Compulsory distillation ofwines made fromgrapes normally intended forusesother thanin
tablewine
Thismeasure, already established since 1976 forwines made from table grapes, hasbeen
extended toallother cases ofproduction surpluses likely tooverburden themarket fortable wines
(caseofCharentes products inFrance, ofgrapes intended fordrying inGreece ortablegrapes inItaly).
Thebuying-in price ofthewines concerned forwineyear1995/96 isequivalent to35%ofthelowest
guide price forwineyear(AIwhite wine).
(f) Access tointervention measures
Access toprice-support intervention measures isreserved toproducers whohavefulfilled their
obligations regarding compulsory distillation andthemeasures referred tounder (e)and,where relevant,
(f)above. They mustshow proof ofhaving fulfilled those compulsory distillation obligations inthe
most recent wineyearinwhich suchdistillation wasdecided.
6. Other support measures
(a) Totheextent necessary tosupport themarket fortablewines, intervention measures maybe
taken inrespect ofproducts covered bythewineregulations otherthantablewine. Thismeasure
haspractically never beenapplied.
(b) Ifitisfound thatprices haveincreased inthewine market oftheCommunity soastobe
substantially above theguide pricefixedforaparticular typeofwine, thatthesituation islikely
tocontinue andthatasaresult themarket isbeing disrupted, thenecessary measures maybe
taken.
(c) TheCouncil mayadopt derogation measures thatmaybenecessary toremedy anyexceptional
situation resulting from natural disasters.
"TOBACCO" SECTOR
Thereform ofthesector, adopted bytheCouncil on3June1992radically changed thesystem
regulating tobacco, suppressing theintervention andexport subsidies andreplacing target price bya
system ofpremium andguarantee thresholds.
Thereformed market organisation regulated byCouncil Regulation (EEC) No.2075/92 covers
rawtobacco divided intoeight group ofvarieties (Flue cured, Light aircured, Dark aircured, Fire
cured, Suncured, Basmas, Katerini, Kaba Koulak classical).
(a) Premium
- TheCouncil fixesevery yeareightlevels ofpremiums corresponding totheeightgroups
oftobacco varieties mentioned above.G/SCM/N/25/EEC
Page43
Theamount ofthepremium forthe1996 crophasbeenfixed asfollows:
(ECU/Kg.)
I
Flue
curedII
Light
air
curedIII
Dark
air
curedIV
Fire
curedV
Sun
curedVI
BasmasVII
KateriniVIII
Kaba
Koulak
2,70965 2,16748 2,16748 2,38362 2,16748 3,75415 3,18541 2,27615
- Premiums arepaiddirectly totobacco producers unless theMember State optfor
payment through firstprocessors.
- Producers andgroups ofproducers must haveconcluded aEuropean cropcontract
inorder tobeeligible forthepremium.
- Asupplementary amount tothepremium isgiven tothenorthern tobacco producer
countries (France, Germany, Belgium) inorder tocompensate thedifference in
production costwithproducers ofthesouthern member States. Thesupplementary
amount tothe1996 premium hasbeenfixed asfollows:
Varieties
Badischer Geudertheimer, Pereg, Korso
Badischer Burley Eanditshybrids
Virgin Danditshybrids, Virginia andits
hybrids
Paraguay anditshybrids, Dragon vertandits
hybrids
Phillippin, PetitGrammont (Flobecq), Semois,
Appelterre Nijkerk
Misionero anditshybrids, RioGrande andits
hybridsEcus/kg.
0.4238
0.6786
0.3876
0.3163
0.1847
0.2016
(b) Guarantee thresholds
In1992, theCouncil replaced theglobal guaranteed maximum quantity system byaguarantee
thresholds fixed bygroup ofvarieties andbymember State.
Thequantities produced inexcess ofthethresholds arenoteligible forthepremium.G/SCM/N/25/EEC
Page44
Theguarantee thresholds forthe1996 crophasbeenfixed asfollows:
I II III IV V Others Total
Fluecured Light air Dark airFirecured Suncured VIBasmas VIIKaterini VIIIKaba
cured cured Koulak
Italy 48,000 46,500 17,900 6,900 13,500 132,800
Greece 30,700 12,400 15,700 26,100 22,250 19,550 126,700
Spain 29,000 2,470 10,800 30 42,300
Portugal 5,500 1,200 6,700
France 9,000 6,600 12,000 27,600
Germany 3,000 4,500 4,500 12,000
Belgium 2001,700 1,900
Austria 30470 500
Total 125,230 74,340 46,900 6,930 29,200 26,100 22,250 19,550 350,500
(c) Producer groups
Inorder toconcentrate supply andadapt ittothequalitative requirements ofthemarket, a
specialaidamountingto10%ofthepremiumisgiventoproducersgroupswhentheyconcludecultivation
contracts.
"TEXTILE FIBRES" SECTOR
1. COTTON
Theaidsystem fortheproduction ofunginned cotton production hasbeenmodified witheffect
fromthe1995/96 marketing year, interaliawiththeaimofimproving thefunctioning ofthestabilizer
system. TheCommunity aidsystem fixesaguide price (106.30 ECU/100 kg.asfrom the1995/95
marketing year)andaidequal tothedifference between thispriceandtheworld market priceforginning
enterprises thattheypayproducers aminimum price. Iftheproduction ofunginned cotton exceeds
theguaranteed maximum quantity (GMQ) (1,031,000 tonnes), theguide price andtheamount ofthe
aidareproportionally reduced.
Ineachmember Statethereduction oftheaidisproportional totheamount bywhich itexceeds
itsGMQ, fixedat782,000 tonnes forGreece and249,000 tonnes forSpain. Thisreduction (abatement)
isunlimited, butifworld prices allow thecostoftheaidsystem tobelimited, itisreduced.
On1September 1996, when the1996/97 marketing yearbegan, theCommission fixed the
world market priceatECU 32.1381/100 kg.,corresponding toaidofECU 62.4/100kg. forSpain and
ECU 31.9/100 kg.forGreece (provisional amount). These amounts werecalculated onthebasis of
estimated production ofaround 264,000 tonnes ofunginned cotton forSpain and1,220,000 tonnes
forGreece.
2. FIBRE FLAX AND HEMP
Community regulations include thefollowing measures:
(1) Production aid
Aidforfibreflaxandhemp produced intheCommunity hasbeenestablished inorder togive
theproducers concerned afairincome. Theamount ofthisaidisfixed eachyearforevery hectare
sown andharvested. Asfromthe1997/98 marketing year, thecontracts withprocessors areobligatory
forflax.G/SCM/N/25/EEC
Page45
Forhemp, theaidisgiven totheproducer. Forfibreflax,onequarter oftheaidisgiven to
theproducer ofthestraw flaxandthreequarters totheperson whobuysthestraw toprocess intofibre.
Iftheproducer processes thestraw orhasitprocessed onhisbehalf, hereceives thetotalamount of
theaid.
Aid(ECU/ha.) Area (ha.)
Fibre flax
1996/97 marketing year 865.48 132,000
Hemp
1996/97 marketing year 774.74 13,700
(2) Aidforprivate storage offlaxfibrebundle andhemp
Theowners ofbundle mayconclude storage contracts when there isatemporary market
imbalance inorder toprevent orreduce anysignificant dropinprices. In1991, forexample, this
condition wasmetandthepossibility wasutilized.
(3) Aidtopromote theuseofflaxfibrebundle
Community measures havebeentaken since the1980/81 marketing yeartopromote theuse
offlaxintheCommunity. Itwasdecided toinclude inthebasic regulations thepossibility oftaking
measures topromote theuseofflaxfibrebundle asfromthe1987/88 marketing year. These measures
areentirely financed byadeduction from production aid.
Anamount of49,62 ECU/ha., equal toaround 6%ofthefixed-rate aidforfibreflaxisset
aside tofinance these measures.
3. SILKWORMS
Community regulations inthesilkworm-rearing sector include thefollowing measures:
(a) Production aid
Aidforsilkworms reared intheCommunity hasbeenestablished inorder toprovide
silkproducers withafairincome. Theamount ofthisaidisfixed annually foreach
boxofsilkutilised. Theaidisgiven totherearer whosuccessfully rears silkworms.
In1996/97, aidamounting to133.26 ECU/box wasgranted.
(b) Aidtoimprove quality
Community measures maybetaken toimprove thequality ofsilkworms andsilkworm
eggs. However, nosuchmeasure hasbeentaken todate.
"DRIED FODDER" SECTOR
Thecommon organisation ofmarkets inthedried fodder sector covers thefollowing products:
dehydrated fodder, theprincipal leguminous vegetables, sun-dried andground, andprotein concentrates
obtained from alfalfa andgrass juice.G/SCM/N/25/EEC
Page46
From 1April 1995, beginning ofthe1995/1996 marketing year, theCouncil hasmodified
some basic points ofthissector.
Council Regulation (EC)No.603/95 hasestablished asystem based onaflatrateaidforboth
dehydrated andsundried fodder within thelimits ofMaximum Guaranteed Quantities (MGQ) forboth
types offodder.
These MGQs arethefollowing:
- Dehydrated fodder: 4,412,000 tonnes
- Sun-dried fodder: 443,500 tonnes
TheMGQ isthesumoftheNational Guaranteed Quantities (NGQ).
TheNGQs arethefollowing:
Member States National Guaranteed Quantities (intonnes)
Dehydrated fodder Sun-dried fodder
UEBL 8,000 -
Denmark 334,000 -
Germany 421,000 -
Greece 32,000 5,500
Spain 1,224,000 101,000
France 1,455,000 150,000
Ireland 5,000 -
Italy 523,000 162,000
Netherlands 285,000 -
Austria 4,400 -
Portugal 5,000 25,000
Finland 3,000 -
Sweden 11,000 -
United Kingdom 102,000 -
Total 4,412,400 443,500
Within theMGQs, theamounts oftheaidare:
- Dehydrated fodder ECU 68.83/tonne
- Sun-dried fodder ECU 38.64/tonne
If,inanymarketing year, thequantities forwhich theaidisgranted exceed theMGQ, the
amount oftheaidisreduced asfollows:
- Iftheexcess islessorequal to5%percentofthecorresponding MGQ, theamount
oftheaidisreduced accordingly inallmember States;
- Iftheexcess ismore that5%ofthecorresponding MGQ, theamount oftheaidis
reduced by5%inallmember States; moreover, supplementary reductions areapplied
inthose member States where theeligible production exceeds theNGQ increased by
5%.G/SCM/N/25/EEC
Page47
"SEEDS" SECTOR
Under theCommunity Regulations inforce since1May1972andapplied asfrom1July1972,
aproduction aidisgranted forcertain types ofseeds.
Itconcerns thefollowing products:
riceandseeds ofspeltwheat, maize andsorghum hybrid, linseeds, leguminosae, andgraminae.
When themarket situation andtheprices don'tensure anequitable income totheproducer,
anaidcanbegranted. Itconsists ofauniform amount foreachspecies orgroups ofvarieties. Itis
fixed byquintal ofproduced seeds, considering themarket situation andconsidering theprices ofthe
products ontheexternal market.
Aidisfixed fortwoyears withthepossibility tomodify therateforthelatter before its
beginning, iftheCommunity market islikely tobedisturbed.
Theamount ofaidformarketing years 1994/95 to1997/98 hasbeenfixed asfollows:
(ECU/100 kg..)
Products
1.Cereals (rice, spelt)
2.Oilseeds
3.Graminae
4.Leguminosae1994/95 and1995/96
between 11.9and14.3
between 17.0and23.5
between 15.9and62.9
between 0and62.21996/97 and1997/98
between 14.37 and17.27
between 20.53 and28.38
between 19.2and75.95
between 0and75.11
"HOPS" SECTOR
Inorder toensure afairincome forhopproducers, theCommunity regulations provide for
asystem ofaidperhectare andpergroup ofhopvarieties.
Theamount oftheaidisfixed bytheCouncil eachyearforthepreceding year'sharvest, on
thebasis ofproceeds from theharvest concerned, production costs andtheworld market situation.
Itisgranted inrespect ofthethree groups ofvarieties:
- aromatic
- bitter
- otherG/SCM/N/25/EEC
Page48
Theamounts perhectare were asfollows:
(ECU/ha.)
Aromatic
Bitter
Other1993 harvest
395
435
3071994 harvest
495
532
3681995 harvest
444
416
298
Because ofdurable disposal difficulties formost bitter varieties inrecent years, theCouncil
adopted Regulation (EEC) No.2997/87 providing forspecial aidattherateofECU 2,500 perhectare
forrecognised producer groups, subject toamaximum surface areaof1,000 hectares permember
State, inorder toencourage aswitch ofcultivation from biterhopstothearomatic andsuper-alpha
varieties.
Thismeasure wasapplicable untiltheendof1996.G/SCM/N/25/EEC
Page49
PART III
INDUSTRY SECTORS
(i) R&D Subsidies
The1996update notification (G/SCM/N/16/EEC), pages 49-50) ontheCommunity Framework
Programmes intheFieldofResearch covered theperiod 1994-98. Thenotification oftheseprogrammes
istherefore included inthe1996update notification. These programmes havenotincurred anychanges.
(ii) AidtotheCoalIndustry
On1January 1994, Commission Decision No.3632/93/ECSC(1) ontheCommunity rulefor
State aidtothecoalindustry entered intoforce andwillcontinue tooperate untiltheexpiry ofthe
ECSC Treaty inJuly2002.
Article 1ofthisDecision clearly defines whatisconsidered tobeanaid:
1. Allaidtothecoalindustry, whether specific orgeneral, granted bymember States orthrough
StateresourcesinanyformwhatsoevermaybeconsideredCommunityaidandhencecompatible
withtheproper functioning ofthecommon market onlyifitcomplies withArticles 2to9.
2. Theterm"aid" covers anydirect orindirect measure orsupport bypublic authorities linked
toproduction, marketing andexternal tradewhich, evenifitisnotaburden onpublic budgets,
gives aneconomic advantage tocoalundertakings byreducing thecosts which theywould
normally havetobear.
3. Theterm"aid" alsocovers theallocation, forthedirect orindirect benefit ofthecoalindustry,
ofthechanges rendered compulsory asaresult ofStateintervention, without anydistinction
being drawn between aidgranted bytheState andaidgranted bypublic orprivate bodies
appointed bytheState toadminister suchaid.
4. Theterm"aidalsocovers aidelements contained infinancing measures taken bymember States
inrespect ofcoalundertakings which arenotregarded asriskcapital provided toacompany
under standard market-economy practice.
Inaddition tothespecific criteria applicable toeachcategory ofaid,theDecision allows aid
tobeconsidered compatible withtheproper functioning ofthecommon market ifithelps toachieve
atleastoneofthefollowing objectives:
- tomake, inthelightofcoalprices oninternational markets, further progress towards economic
viability withtheaiMofachieving adegression ofaids;
- tosolve thesocial andregional problems created bythetotalorpartial reductions intheactivity
ofproduction units;
- tohelpthecoalindustry adjust toenvironmental protection standards.
TheDecision alsocontains provisions designed tomake existing aidschemes moretransparent.
Article 9(7)allows foratransitional period notexceeding 3years (which therefore ended on
31December 1996) afterwhich aidwould onlybeauthorized ifitwasentered inthenational, regionalG/SCM/N/25/EEC
Page50
orlocal public budgtets ofmember States orchannelled through strictly equivalent mechanisms
(Article 2(2)). Inaddition, from thebeginning of1994, allaidreceived byundertakings hastobe
shown together withtheirprofit-and-loss accounts asaseparate itemofrevenue, distinct fromturnover
(Article 2(3)).
Member States intending togrant aidtocoalundertakings during theperiod 1994to2002are
required tosubmit totheCommission inadvance amodernization, rationalization andrestructuring
plantoimprove theeconomic viability oftheundertakings concerned byreducing production costs
(Article 3(2)). Forundertakings unable toachieve this,aidwillonlybeconsidered iftheyaresubject
toaclosure planwithadeadline occurring before theexpiry ofDecision No.3632/93/ECSC or,in
exceptional social andregional circumstances, iftheclosure occurs aftertheexpiry oftheDecision.
Aidtothecoalindustry under Decision 3632/93/ECSC
State AidAuthorized in1996, 1995 and1994
Inmillion ECU
1996 1995 1994
Aidtocurrent production
Article 3(operating aid)
Article 4(aidforthereduction ofactivity)
Total
ECU pertonne
Aidnotlinked tocurrent production
Article 5(inherited liabilities)
Articl 6(aidforresearch anddevelopment)
Article 7(aidforenvironmental
proTECTION)
Total
Total5,680.5
508.2
6,188.7
47.66
1,337.3
2.6
0.6
1340.5
7,529.35,081.0
492.0
5,573.0
40.94
2,474.5
2.6
0.6
2,477.7
8,050.77,894.0
781.6
8,675.6
65.49
1,812.7
2.3
0.0
1,815.0
10,490.6
Notes:
Aidauthorized under temporary mechanisms permitted byArticle 9(7)havebeenincluded
inArticles 3and4.
Theaidunder Article 3for1994 includes anexceptional aidofDM5,350 million
(ECU 2,779 million) toclear thedebts oftheGerman compensation fundentered under theThird
Electricity-from-Coal Law. Thiswasauthorized under theprovisions ofArticle 9(7).