COUNCIL REGULATION (EEC) No 3577/90 of 4 December 1990 on the transitional measures and adjustments required in the agricultural sector as a result of German unification
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and in particular Articles 42 and 43 thereof,
Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the common organization of the market in milk and milk products(1), as last amended by Regulation (EEC) No 3879/89(2), and in particular Articles 5c (6),
6 (6) and 7 (4) thereof,
Having regard to Council Regulation (EEC) No 2759/75 of 29 October 1975 on the common organization of the market in pigmeat(3), as last amended by Regulation (EEC) No 1249/89(4),
Having regard to Council Regulation (EEC) No 822/87 of 16 March 1987 on the common organization of the market in wine(5), as last amended by Regulation (EEC)
No 1325/90(6), and in particular Articles 13 (1) and (4), 16 (7) and 80 thereof,
Having regard to the proposal from the Commission(7),
Having regard to the opinion of the European Parliament(8),
Having regard to the opinion of the Economic and Social Committee(9),
Whereas the Community has adopted a body of rules implementing the common agricultural policy;
Whereas, from the date of German unification onwards, Community law will be fully applicable to the territory of the former German Democratic Republic;
Whereas to facilitate the integration of farming in the territory of the former German Democratic Republic into
the common agricultural policy, the former German Democratic Republic has been applying, in an autonomous capacity, some of the common agricultural rules since
1 July 1990;
Whereas certain adjustments must however be made to Community agricultural legislation in order to take into account the particular circumstances of the said territory;
Whereas the derogations provided for in this connection should as a general rule be temporary and cause the least possible disturbance to the operation of the common agricultural policy and the pursuit of the objectives of Article 39 of the Treaty;
Whereas measures are applied in several sectors to stabilize the markets for products in surplus; whereas the extent to which such arrangements apply to the territory of the former German Democratic Republic should be specified;
Whereas the maximum guaranteed quantities applicable in most of the sectors concerned expire not later than the end of the 1991/92 marketing year; whereas, as the figures currently available for actual consumption in the territory of the former German Democratic Republic are incomplete, the maximum guaranteed quantities should be left unchanged for the remaining period of applicability; whereas, therefore, no account should be taken of production of the said territory when Community production is being determined; whereas, however, total German production in each sector concerned must be subject to the specific rules applicable in the case of an overrun of the maximum guaranteed quantity laid down for the said sector;
Whereas certain conditions of intervention must be adjusted to take account of the specific conditions of production and farm structure in the territory of the former German Democratic Republic;
Whereas the application of the arrangements to control milk production must not jeopardize the restructuring of agricultural holdings in the territory of the former German Democratic Republic; whereas some flexibility should be introduced into the said arrangements; whereas, however, such flexibility must apply solely to holdings in the territory of the former German Democratic Republic; whereas, similarly, steps must be taken to ensure that the additional sugar quotas allocated to Germany apply solely to agriculture in the territory of the former German Democratic Republic;
Whereas, when the guaranteed total quantities for milk for the territory of the former German Democratic Republic are fixed, provision must be made for a 3 % reduction similar to that effected in the Community in 1986 to take account of the trend of the milk market; whereas the producers concerned must be granted compensation for such a reduction similar to that granted to the other Community producers by Council Regulation (EEC) No 1336/86 of 6 May 1986 fixing compensation for the definitive discontinuation of milk production(10), as last amended by Regulation (EEC) No 841/88(11);
Whereas Regulation (EEC) No 775/87(12), as last amended by Regulation (EEC) No 3882/89(13), provides for the temporary suspension of part of the reference quantities referred to in Article 5c (1) of Regulation (EEC) No 804/68; whereas, when the compensation was fixed in this connection in the Community, allowance was made for the fact that the suspension was to take effect after three years of operation of the system and over a period of two years; whereas producers in the territory of the former German Democratic Republic must be subjected to a corresponding suspension of reference quantities; whereas, however, such suspension will take effect in that territory in a single step in the first year of application of the system in order to prevent additional milk product disposal expenditure;
Whereas this major saving should be taken into consideration when the level of compensation for suspension of the reference quantities in the territory of the former German Democratic Republic is fixed;
Whereas to facilitate structural change in the agricultrual sector in the territory of the former German Democratic Republic, involving both the creation of family farms and the reorganization of cooperative farms, provision must be made for some temporary adjustments to the rules on the acceleration of structural adjustment in the context of the reform of the common agricultural policy (objective 5a); whereas the necessary adjustments to the rules on other structural objectives are provided for in a separate Regulation;
Whereas the measures aimed at improving the efficiency of agricultural structures in the territory of the former German Democratic Republic will in some cases have to be adopted gradually in order to prevent sudden conflicts relating both to social issues and employment and to rural and regional balance;
Whereas the restructuring of agriculture in the territory of the former German Democratic Republic requires special measures designed not only to re-organize the cooperatives but also to facilitate access by farmers to ownership of the
means of production; whereas, however, these measures must be based as far as possible on Community concepts and criteria so as to encourage free competition and prevent the creation of monopolies;
Whereas the adoption of the principles of the common agricultural policy in the territory of the former German Democratic Republic has had the effect of reducing sharply and severely the incomes of the producers concerned; whereas the Federal Republic of Germany should be authorized, temporarily, to implement a system of national aid to partially offset the income losses;
Whereas, pursuant to Council Regulation (EEC) No 855/84 of 31 March 1984 on the calculation and the dismantlement of the monetary compensatory amounts applying to certain agricultural products(14), as amended by Regulation (EEC) No 1004/84(15), the Federal Republic of Germany is authorized to award special aid to German producers to compensate for a fall in income due to the adjustment of the representative rate in 1984;
Whereas the rules applicable to stocks of products existing in the territory of the former German Democratic Republic on the day of German unification should be laid down; whereas it is appropriate that the Community should take over public intervention stocks at a value depreciated in accordance with the principles set out in Article 8 of Council Regulation (EEC) No 1883/78 of 2 August 1978 laying down general rules for the financing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section(16), as last amended by Regulation (EEC) No 787/89(17); whereas the cost of such depreciation will be borne by the Federal Republic of Germany; whereas, as regards existing private stocks, any stock exceeding the normal quantity of stock must be disposed of by the Federal Republic of Germany at its own expense; whereas the Commission will ensure that these stock levels are determined on the basis of objective criteria and with the greatest possible transparency;
Whereas information on the farming situation in the territory of the former German Democratic Republic is insufficient to permit the extent of the adjustment and derogations to be laid down definitively; whereas, to take into account developments in the situation, provision should be made for a simplified procedure in accordance with the third indent of Article 145 of the Treaty so that the measures provided for in this Regulation may be adjusted and supplemented where necessary;
Whereas the integration into the Community of the territory of the former German Democratic Republic,
which requires the adoption of urgent transitional measures in the agricultural sector, will cause new and serious difficulties for certain Member States still in a period of transition and whereas this problem should therefore be resolved;
Whereas protective measures may have to be taken in the event of serious difficulties liable to jeopardize the objectives of Article 39 of the Treaty; whereas the conditions in which such measures may be taken should be specified;
Whereas this Regulation does not cover legislation on plant products, animal feedingstuffs, veterinary and zootechnical matters, Directives on the harmonization of agricultural legislation of fisheries rules which will form the subject of separate rules;
Whereas it is necessary to compile accurate statistics relating to agriculture in the territory of the former German Democratic Republic and in particular to production potential, quality and possible outlets,
HAS ADOPTED THIS REGULATION:
Article 1
1. To ensure the harmonious integration of farming in the territory of the former German Democratic Republic into the common agricultural policy, this Regulation lays down transitional provisions and the adjustments required to the common agricultural rules.
2. This Regulation shall apply to:
agricultural products listed in Annex II to the Treaty,
goods derived from the processing of agricultural products and referred to in Regulation (EEC) No 3033/80(18), as last amended by Regulation (EEC) No 1436/90(19), and Regulation (EEC) No 2783/75(20), as last amended by Regulation (EEC) No 4001/87(21).
It does not cover
the Directives on plant health, seeds, propagating material and animal feedingstuffs, and the veterinary and zootechnical legislation covered by Directive 90/654/EEC(22),
the Directives on the harmonization of agricultural legislation covered by Directive 90/650/EEC(23),
products covered by Council Regulation (EEC) No 3796/81 of 29 December 1981 on the common organization of the market in fishery products(24), as last amended by Regulation (EEC) No 2886/89(25).
Article 2
The adjustments and transitional measures referred to in Article 1 are set out in the Annexes I to XVI hereto.
Article 3
1. In order to achieve the objective of Article 1 (1), measures to supplement and adjust those provided for in this Regulation may be adopted in accordance with the procedure laid down in Article 8.
2. Supplementing and adjusting measures must be designed to ensure the coherent application of the agricultural rules in the territory of the former German Democratic Republic, with due regard for the specific circumstances and the special difficulties which are encountered in practice.
They must be consistent with the general scheme and basic principles of the agricultural rules and the provisions of this Regulation.
3. The measures referred to in paragraph 1 may be taken until 31 December 1992. They shall only apply until that date.
Article 4
By way of derogation from Council Regulation (EEC)
No 768/89 of 21 March 1989 establishing a system of transitional aids to agricultural income(26), the Commission may authorize the Federal Republic of Germany to introduce in the territory of the former German Democratic Republic, a system of aid to compensate for agricultural income losses in that territory as a result of the changeover to the common agricultural policy. The aid must be degressive and limited in time. It shall be repealed not later than 31 December 1993.
The rules of procedure laid down in Article 93 (3) of the Treaty shall apply to aid introduced pursuant to the first subparagraph. In appraising such aid, the Commission will ensure that its effect on trade is as minimal as possible and that a harmonious transition to the common agricultural policy is assured.
This Article shall apply solely to aid notified to the Commission not later than 30 June 1992.
Article 5
1. Until 31 December 1992, in the event of serious difficulties liable to jeopardize the objectives of Article 39 of the Treaty or difficulties liable to cause a serious deterioration in a regional economic situation as a result of German unification, any Member State may apply for authorization to adopt protective measures in order to restore stability to the situation or to adjust the sector concerned.
2. If a situation as referred to in paragraph 1 should arise, the Commission, at the request of a Member State or on its own initiative, may decide, subject to compliance with the Treaty, to take the necessary measures, which shall be notified to the Member States and shall be applicable forthwith. If the Commission receives a request from a Member State which is suffering or likely to suffer serious disturbances it shall take a decision thereon within 24 hours of receipt of the request.
3. Any Member State may refer to the Council the measure taken by the Commission within three working days after the date of notification. The Council shall meet without delay. It may, by a qualified majority, amend or revoke the measure in question.
4. The measures provided for in paragraphs 1, 2 and 3 shall only apply until 31 December 1993.
Article 6
1. The Community shall take over the stocks held by the intervention agency of the former German Democratic Republic on the date of German unification at the value determined in accordance with Article 8 of Regulation (EEC) No 1883/78.
2. The said stocks shall be taken over only on condition that public intervention for the products in question is provided for in the Community rules and that the stocks meet the Community quality requirements as amended by this Regulation.
3. Detailed rules for applying this Article shall be adopted in accordance with the procedure laid down in Article 8.
Article 7
1. Any private stock of a product which is covered by a regulation on a common market organization for agricultural products, which is in free circulation in the territory of the former German Democratic Republic on the date of German unification and which exceeds the quantity which may be regarded as representing a normal carry-over stock, must be disposed of by the Federal Republic of Germany at its own expense in accordance with provisions to be laid down in accordance with the procedure referred to in paragraph 2. The concept of a normal carry-over stock shall be defined for each product in the light of the criteria and objectives specific to each market organization.
2. Detailed rules for applying this Article shall be adopted in accordance with the procedure laid down in Article 8.
Article 8
Where this Article is referred to, measures shall be adopted in accordance with the procedure laid down in:
Article 38 of Regulation 136/66/EEC(27), as last amended by Regulation (EEC) No 2902/89(28), or, as appropriate, the corresponding Articles of the other Regulations on the common organization of agricultural markets,
the Article providing for the adoption of detailed rules of application in another common agricultural provision, or
Article 13 of Regulation (EEC) No 729/70(29), as last amended by Regulation (EEC) No 2048/88(30), for the case referred to in Article 6 (3).
Article 9
1. The national arrangements for limiting milk production adopted by the former German Democratic Republic must be maintained until 31 March 1991.
Article 5c of Regulation (EEC) No 804/68 shall not apply to the territory of the former German Democratic Republic until 1 April 1991. The reference quantities may be allocated provisionally for the eighth period of 12 months, provided that the amount thus allocated is not modified during the said period.
Regulation (EEC) No 1079/77(31) shall not apply to the territory of the former German Democratic Republic
during the 1990/91 marketing year. The national system of collection of the co-responsibility levy set up by the former German Democratic Republic must be maintained during the said marketing year.
2. Articles 27 to 51 of Regulation (EEC) No 822/87 shall only apply to the territory of the former German Democratic Republic as from 1 September 1991.
Article 10
The Federal Republic of Germany shall notify to the Commission, at the earliest opportunity, the measures
taken pursuant to the authorizations provided for in this Regulation. The Commission shall inform the Member States within the appropriate fora.
On the expiry of the periods of application of the transitional measures the Federal Republic of Germany shall draw up a report on their application; this report shall be submitted to the Commission, which shall forward it to the other Member States.
Article 11
This Regulation shall enter into force on 1 January 1991.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 4 December 1990.