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Article 285

1 . ( a ) Where , in accordance with Article 260 ( 1 ) , the second stage is of five years' duration , the prices to be applied in Portugal shall be fixed , until the first of the moves towards alignment referred to in paragraph 2 of this Article , at the same level as that resulting from application of Article 265 ( 1 ) .

( b ) Where , in accordance with Article 260 ( 2 ) , the second stage is of seven years' duration , the prices to be applied in Portugal shall be , until the first of the moves towards alignment referred to in paragraph 2 of this Article , the prices , expressed in ECU , fixed in accordance with the rules provided for under the common organization of the markets in the sector concerned , at the level reached on 31 December 1988 in accordance with the rules for prices discipline set out in point 1 of Article 265 .

2 . If application of paragraph 1 results in Portugal in a price level which is different from that of the common prices , the prices for which reference is made in Section V to this Article shall , subject to paragraph 6 , be aligned on the common prices , each year at the beginning of the marketing year pursuant to paragraphs 3 and 4 .

3 . Where , for a given product , the price in Portugal is lower than the common price , the move towards alignment shall be carried out :

- in five years , when the second stage is of five years' duration ; in this case , the price in Portugal shall be increased during the four first moves to alignment successively by one-fifth , one-quarter , one-third and by one-half of the difference between the level of the Portuguese price and the level of the common prices which are applicable before each move to alignment ,

- in seven years , when the second stage is of seven years' duration ; in this case , the price in Portugal shall be increased during the first six moves to alignment successively by one-seventh , one-sixth , one-fifth , one-quarter , one-third and by one-half of the difference between the level of the Portuguese price and the level of the common prices which are applicable before each move to alignment .

The price resulting from the calculation carried out under one of the foregoing two indents shall be increased or decreased in proportion to the increase or decrease , if any , in the common price for the marketing year to come .

The common price shall be applied in Portugal in 1995 at the beginning of the marketing year for the product concerned .

4 . ( a ) Where , for a given product , the price in Portugal is higher than the common price , the price in that Member State shall be maintained at the level referred to in paragraph 1 , with the move to alignment resulting from the development in common prices , as the case may be , over the five or seven years respectively of the second stage .

However , the price in Portugal shall be adjusted to the extent necessary to avoid any increase in the variation between this price and the common price .

Without prejudice to paragraph ( b ) , the common price shall be applied in Portugal in 1995 , at the beginning of the marketing year for the product concerned .

( b ) Before the end of the eighth year following the date of accession , the Council shall carry out an analysis of the development in the moves to price alignment . To this end , the Commission shall forward to the Council , within the framework of the reports referred to in Article 264 ( 2 ) ( c ) , an opinion accompanied , where appropriate , by adequate proposals .

If this analysis shows :

- that the variation between the Portuguese prices and the common prices , while being too great to be absorbed over the period still to be run for the move to the alignment of prices pursuant to paragraph 2 , nevertheless appears capable of being made up within a limited period of time , the period of the move towards alignment of prices , as originally envisaged , may be extended ; in this case , the prices shall be maintained at their previous level in accordance with the rule provided for in paragraph ( a ) ,

- that the variation between the Portuguese prices and the common prices is too great to be made up solely by extending the period of the move towards alignment of prices , as originally envisaged , a decision may be taken that , in addition to this extension , the move towards alignment will take place by a progressive lowering of the Portuguese prices , expressed in real terms , accompanied , if necessary , by indirect , temporary and degressive aid in order to mitigate the effect of the phased price reduction . Such aid shall be financed by the Portuguese budget .

The Council , acting on a qualified majority on a proposal from the Commission and after consulting the Assembly , shall adopt the measures referred to in the previous subparagraph .

5 . When , at the beginning of the second stage , it is noted that the variation between the level of the price for a product in Portugal and that of the common price does not exceed 3 % of the common price , the common price may be applied to Portugal for the product concerned .

6 . In the interests of the harmonious operation of integration , it may be decided that , by way of derogation from paragraph 3 , the price of one or more products for Portugal shall vary , for one marketing year , as compared with the prices resulting from application of this paragraph .

Such variation may not exceed 10 % of the amount of the price movement to be carried out .

In this case the price level for the following marketing year shall be that which would have resulted from application of paragraph 3 had variation not been decided upon . However , for this marketing year , a new variation may be decided upon as compared with this level , under the conditions provided for in the first and second subparagraphs .

The derogation provided for in the first subparagraph shall not apply to the last move to alignment referred to in paragraph 3 .