# CE2004084EN.01052702.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/527 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/527

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(2004/C 84 E/0603)

WRITTEN QUESTION E-0033/04

by Jan Mulder (ELDR) to the Commission

(20 January 2004)

Subject:   Distortion of competition by the introduction of regional premiums

Subject:

Chapter 5 of the new Council Regulation (EC) No 1782/2003 (1) concerning direct support schemes gives Member States the option of introducing regional premiums. Denmark and Germany are reported to be about to introduce such an arrangement.

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| 1. | What premium per hectare will be paid in regions where this arrangement is introduced? Can the Commission provide its own overview of payments by land-area on the basis of comparable (temporary) arrangements in the new Member States? |
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1.

What premium per hectare will be paid in regions where this arrangement is introduced? Can the Commission provide its own overview of payments by land-area on the basis of comparable (temporary) arrangements in the new Member States?

| 2. | Does the Commission share the view that the option, under this arrangement, of using subsidised land to grow crops that are not covered by the rules for direct support schemes will damage fair competition and return European agricultural policy to national control? |
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2.

Does the Commission share the view that the option, under this arrangement, of using subsidised land to grow crops that are not covered by the rules for direct support schemes will damage fair competition and return European agricultural policy to national control?

| 3. | In Article 60 of Regulation (EC) No 1782/2003 restrictions are imposed on growing vegetables, fruit and potatoes in such regions. How does the Commission intend to monitor the production of crops growers are normally free to produce? What reductions and fines will be imposed on producers and regions if these de facto quotas are exceeded? |
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3.

In Article 60 of Regulation (EC) No 1782/2003 restrictions are imposed on growing vegetables, fruit and potatoes in such regions. How does the Commission intend to monitor the production of crops growers are normally free to produce? What reductions and fines will be imposed on producers and regions if these de facto quotas are exceeded?

| 4. | What action will the Commission take to guarantee fair competition for other market-gardening products and for other agricultural products that are not covered by the direct support scheme? |
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4.

What action will the Commission take to guarantee fair competition for other market-gardening products and for other agricultural products that are not covered by the direct support scheme?

| 5. | Having regard to the foregoing, how can the Commission reconcile these regional premiums with the principle of a single European agricultural policy, as laid down in the Treaty? |
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5.

Having regard to the foregoing, how can the Commission reconcile these regional premiums with the principle of a single European agricultural policy, as laid down in the Treaty?

Answer given by Mr Fischler on behalf of the Commission

(2 March 2004)

(2 March 2004)

| 1. | In accordance with Article 58(1) of Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, the Member States may decide to apply the single payment scheme (SPS) at a regional level until 1 August of the year preceding the first year of application of the SPS. At the present stage, the Commission does not know exactly under what conditions the Member States will apply the single payment scheme on a regional level.
  Nor can the Commission indicate the expected per hectare premiums for the new Member States at the present stage. The transitional Single Area Payment Scheme (SAPS) payments are defined as the total budget for direct payments in a year divided by the eligible area. Neither the national envelopes nor the eligible areas under SAPS have been established yet. |
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1.

In accordance with Article 58(1) of Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, the Member States may decide to apply the single payment scheme (SPS) at a regional level until 1 August of the year preceding the first year of application of the SPS. At the present stage, the Commission does not know exactly under what conditions the Member States will apply the single payment scheme on a regional level.

Nor can the Commission indicate the expected per hectare premiums for the new Member States at the present stage. The transitional Single Area Payment Scheme (SAPS) payments are defined as the total budget for direct payments in a year divided by the eligible area. Neither the national envelopes nor the eligible areas under SAPS have been established yet.

| 2. | The Commission does not think that decoupled support will lead to unfair competition in the agriculture sector or that such support would lead to a re-nationalisation of the agricultural policy. Instead, the decoupling of support will encourage farmers to produce crops or products that are best suited to the (local) conditions and for which they have the best market opportunities. |
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2.

The Commission does not think that decoupled support will lead to unfair competition in the agriculture sector or that such support would lead to a re-nationalisation of the agricultural policy. Instead, the decoupling of support will encourage farmers to produce crops or products that are best suited to the (local) conditions and for which they have the best market opportunities.

| 3. | The control of the respect of the limits set in Article 60 of the above-mentioned Council Regulation will be similar to existing control procedures for coupled direct payments. |
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3.

The control of the respect of the limits set in Article 60 of the above-mentioned Council Regulation will be similar to existing control procedures for coupled direct payments.

| 4. | Most horticultural production is characterised by a high value output per hectare. Even under the regionally applied single payment scheme direct support for horticulture will be relatively low. Therefore, the Commission does not expect significant competitive effects. However, if necessary, the Commission will make appropriate proposals to remedy any disturbance of the markets in accordance with Article 60(8) of the above Council Regulation.
  The reformed Common Agricultural Policy (CAP) creates a common framework to support the agricultural sector in all its diversity across Europe. To that end, the necessary flexibility has been left to the Member States in the application of this common framework in specific local circumstances. |
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4.

Most horticultural production is characterised by a high value output per hectare. Even under the regionally applied single payment scheme direct support for horticulture will be relatively low. Therefore, the Commission does not expect significant competitive effects. However, if necessary, the Commission will make appropriate proposals to remedy any disturbance of the markets in accordance with Article 60(8) of the above Council Regulation.

The reformed Common Agricultural Policy (CAP) creates a common framework to support the agricultural sector in all its diversity across Europe. To that end, the necessary flexibility has been left to the Member States in the application of this common framework in specific local circumstances.

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(1)  OJ L 270, 21.10.2003, p. 1.

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