1962R0025 — EN — 01.05.1970 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B REGULATION No 25
on the financingof the common ag ricultural policy
(OJ P 30, 20.4.1962, p. 991)
Amended by:
Official Journal
No page date
►M1Regulation No 49 of the Council P 53 1571 1.7.1962
►M2Regulation No 130/66/EEC of the Council of 26 July 1966 P 165 2965 21.9.1966
►M3Regulation (EEC) No 741/67 (SIC! No 741/67/EEC) of the Council of 24
October 1967 P 258 2 25.10.1967
►M4Regulation (EEC) No 728/70 of the Council of 21 April 1970 L 94 9 28.4.1970
Corrected by:
►C1Corrigendum, Special Edition 1959-62, p. 4 (62/25)
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REGULATION No 25
on the financingof the common ag ricultural policy
THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY,
Having regard to the Treaty establishing the European Economic
Community, and in particular Articles 40, 43 and 199 to 209 thereof;
Having regard to the proposal from the Commission;
Having regard to the Opinion of the European Parliament;Whereas the operation and development of the common market for
agricultural products require the concurrent development of a commonagricultural policy comprising in particular a common organisation ofagricultural markets;
Whereas, to enable that common organisation to attain its objectives, a
European Agricultural Guidance and Guarantee Fund should be set up
and the conditions under which that Fund shall operate should be laid
down;
Whereas, in connection with the setting up of that Fund and the
implementation of a common agricultural policy, it has clearly become
necessary to adopt certain common rules of financial and budgetarypolicy;
HAS ADOPTED THIS REGULATION:
Article 1
In order to enable the common organisation of agricultural markets to
attain its objectives, a European Agricultural Guidance and Guarantee
Fund (hereinafter called the ‘Fund’) is hereby set up. The Fund shall
form part of the Community budget.
TITLE I
Single market stage
Article 2
1. Revenue from levies on imports from third countries shall accrue
to the Community and shall be used for Community expenditure so that
the budget resources of the Community comprise those revenuestogether with all other revenues decided in accordance with the rules ofthe Treaty and the contributions of Member States under Article 200 ofthe Treaty. The Council shall, at the appropriate time, initiate the
procedure laid down in Article 201 of the Treaty in order to implement
the above-mentioned provisions.
2. Since at the single market stage price systems will be standardised
and agricultural policy will be on a Community basis, the financial
consequences thereof shall devolve upon the Community.
The Fund shall accordingly finance:
(a) refunds on exports to third countries;
(b) intervention aimed at stabilising markets;
(c) common measures adopted in order to attain the objectives set out in
Article 39 (1) (a) of the Treaty, including the structural modifica-tions required for the proper working of the common market,provided that those measures do not encroach upon the work of theEuropean Investment Bank and the European Social Fund.1962R0025 — EN — 01.05.1970 — 001.001 — 2
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TITLE II
Transitional period
Article 3
1. The following expenditure shall be eligible for aid from the Fund:
(a) Refunds on exports to third countries granted in accordance with the
provisions laid down in the Regulations on individual products:
however until the end of the 1966/67 accounting period, such
refunds shall be calculated on the basis of the net quantities exportedand the rate of refund of the Member State whose average refund isthe lowest.
(b) intervention on the ►
C1internal◄market the aim and function
of which is identical with that of the refunds referred to in
subparagraph (a); the Council, acting unanimously during the secondstage and by a qualified majority thereafter on a proposal from theCommission, shall establish that these are identical;
(c) other intervention on the ►
C1internal◄market effected in
accordance with Community rules; the conditions governing the
eligibility of the expenditure relating thereto shall be determined bythe Council, acting unanimously during the second stage and by aqualified majority thereafter on a proposal from the Commission;
(d) action undertaken in accordance with Community rules for attaining
the objectives set out in Article 39 (1) (a) of the Treaty including
structural changes necessitated by the development of the common
market; the conditions governing the eligibility of the expenditurerelating thereto shall be determined by the Council, actingunanimously during the second stage and by a qualified majoritythereafter on a proposal from the Commission.
2. The Commission shall submit initial proposals in pursuance of
paragraph 1 (b), (c) and (d) not later than 30 September 1962 to enable
the Community to finance the transactions referred to in those
subparagraphs as from the year 1962/63.
3. From the first year, the Council shall each year, on the basis of a
report from the Commission, examine how the Community financing ofexport refunds provided for in paragraph 1 (a) has affected guidance ofproduction and development of outlets.
The Council, acting unanimously during the second stage at the request
of one of the Member States or of the Commission, and by a qualifiedmajority thereafter on a proposal from the Commission, may amend thecriteria adopted for the Community financing of those refunds.
The Council shall also, on the basis of a report from the Commission,
examine every year the effect on the common agricultural policy of the
Community financing provided for in paragraph 1 (b), (c) and (d).
Article 4
Before the end of the third year, the Council shall, on the basis of a
report from the Commission, carry out a comprehensive examination of
the development of the transactions of the Fund as a whole, the nature of
expenditure from the Fund, the conditions governing the eligibility ofthat expenditure, the apportionment of the revenue of the Fund, and theprogress made in implementing the common agricultural policy, and inparticular the guidance of agricultural production in Member States,price harmonisation, and the development of intra-Community trade.
This examination shall precede the decisions to be taken in pursuance of
Articles 5 (1) and 7 (2).
Article 5
1. For expenditure eligible under Article 3 (1) (a), (b) and (c), the
contribution from the Fund shall, as regards the first three years, be fixed1962R0025 — EN — 01.05.1970 — 001.001 — 3
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at one-sixth for 1962/63, two-sixths for 1963/64, and three-sixths for
1964/65.
From 1 July 1965 and until the end of the transitional period,
contributions from the Fund shall increase regularly so that, at the end
of the transitional period, all eligible expenditure shall be financed bythe Fund. In the light of the results of the comprehensive examinationprovided for in Article 4, the necessary decision shall be taken by theCouncil according to the voting procedure laid down in Article 43 of theTreaty.
2. The contribution from the Fund to the expenditure eligible under
Article 3 (1) (d) shall, as far as possible, correspond to one third of the
amount fixed in pursuance of paragraph 1 of this Article.
However, from the accounting period 1967/68, the contribution of the
Fund to expenditure eligible under Article 3 (1) (d) of this Regulation,determined in accordance with the above subparagraph, may not exceed
an annual amount of 285 000 000 units of account. This amount may be
increased by the Council acting in accordance with the procedure laiddown in Article 43 of the Treaty.
For the ‘second half of 1969’ accounting period, the contribution from
the Fund to expenditure eligible for aid under Article 3 (1) (d),
determined in accordance with the first subparagraph, may not exceed
an amount of 142·5 million units of account.
Article 6
1. The total amount allocated to the Fund to enable it to meet the
expenditure defined above shall be fixed every year by the Council inaccordance with budgetary procedure.
2. The sums fixed every year may be increased by a decision of the
Council acting according to the same procedure.
Article 7
1. The revenue of the Fund shall consist, for the first three years, of
financial contributions from Member States calculated for the first partaccording to the scale laid down in Article 200 (1) of the Treaty and forthe second part in proportion to net imports from third countries effectedby each Member State.
The two parts of the contributions from Member States shall constitute
the total receipts of the Fund in the following proportions:
1962/63 % 1963/64 % 1964/65 %
According to the scale laid down in
Article 200 (1)100 90 80
In proportion to net imports — 10 20
2. Before the end of the third year and in the light of the results of the
comprehensive examination provided for in Article 4, the Council,acting in accordance with the procedure laid down in Article 200 (3) of
the Treaty, and with the aim of ensuring that progressive advance is
made towards a single market system, shall draw up rules concerning therevenue of the Fund which shall be valid from 1 July 1965 until the endof the transitional period.
Article 8
This Regulation, under the conditions laid down in the Regulations
relating to each of the individual products, shall apply to the markets incereals, pigmeat, eggs and poultrymeat from ►
M130 July 1962 ◄,t o1962R0025 — EN — 01.05.1970 — 001.001 — 4
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▼M4
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the market in milk and milk products from 1 November 1962, and where
necessary, to other markets from dates to be determined by the Council.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1962R0025 — EN — 01.05.1970 — 001.001 — 5