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CRITERIA FOR THE CHOICE OF PROJECTS TO BE FINANCED UNDER REGULATION ( EEC ) NO 355/77 FOR THE YEAR 1980

I . CONDITIONS OF ELIGIBILITY

IN ACCORDANCE WITH REGULATION ( EEC ) NO 355/77 PROJECTS MUST SATISFY THE FOLLOWING CONDITIONS IN ORDER TO BE CONSIDERED FOR ASSISTANCE :

1 . THE PROJECT MUST RELATE TO BUILDINGS AND/OR EQUIPMENT FOR :

- RATIONALIZING OR DEVELOPING STORAGE , MARKET PREPARATION , PRESERVATION , TREATMENT OR PROCESSING OF AGRICULTURAL PRODUCTS ;

- IMPROVING MARKETING CHANNELS ;

- BETTER KNOWLEDGE OF THE FACTS RELATING TO PRICES AND TO THEIR FORMATION ON THE MARKETS FOR AGRICULTURAL PRODUCTS ( ARTICLE 6 ( 1 ) ) ( 1 ) .

2 . PROJECTS MUST NOT RELATE TO THE RETAIL TRADE ( ARTICLE 6 ( 2 ) ) .

3 . PROJECTS MUST RELATE TO THE MARKETING OF THE PRODUCTS SET OUT IN ANNEX II TO THE TREATY OR TO THE PRODUCTION OF THE PROCESSED PRODUCTS SET OUT IN THAT ANNEX ( ARTICLE 7 ( 1 ) ) .

4 . PROJECTS MUST FORM PART OF A SPECIFIC PROGRAMME WITHIN THE MEANING OF ARTICLE 2 OF REGULATION ( EEC ) NO 355/77 ; HOWEVER , UNTIL 31 DECEMBER 1980 , PROJECTS RELATING TO SECTORS AND GEOGRAPHICAL AREAS FOR WHICH PROGRAMMES HAVE NOT YET BEEN APPROVED MAY RECEIVE AID FROM THE FUND ( ARTICLE 10 ( A ) ; ARTICLE 12 ( 1 ) ) .

5 . THE PROJECT MUST HAVE BEEN APPROVED BY THE MEMBER STATE ON WHOSE TERRITORY IT IS TO BE CARRIED OUT ( ARTICLE 13 ( 3 ) ) .

6 . THE FINANCIAL CONTRIBUTION OF THE MEMBER STATE CONCERNED MUST BE AT LEAST 5 % OF THE COST OF THE PROJECT ( ARTICLE 17 ( 2 ) ( B ) ) .

7 . THE FINANCIAL CONTRIBUTION OF THE BENEFICIARY MUST BE NOT LESS THAN 50 % ( 2 ) ( ARTICLE 17 ( 2 ) ( A ) ) .

8 . THE PROJECT MUST NOT BE ELIGIBLE FOR AID UNDER OTHER COMMON MEASURES FINANCED BY THE FUND ( ARTICLE 15 ( 2 ) ) .

9 . REQUESTS FOR ASSISTANCE MUST CONTAIN THE INFORMATION INDICATED IN REGULATION ( EEC ) NO 219/78 .

10 . EXECUTION OF THE PROJECT MUST NOT HAVE BEGUN BEFORE THE SUBMISSION OF THE REQUEST TO THE COMMISSION .

II . GENERAL EVALUATION CRITERIA

1 . PROJECTS MUST CONTRIBUTE TO IMPROVING THE SITUATION OF THE BASIC AGRICULTURAL PRODUCTION SECTORS IN QUESTION . ( THE BENEFICIARY MUST FURNISH SUFFICIENT PROOF IN THIS MATTER , MORE PARTICULARLY AS REGARDS THE PARTICIPATION OF THE PRODUCERS OF THE BASIC PRODUCT IN THE ECONOMIC BENEFITS ) ( ARTICLE 9 ) .

2 . THE PROJECT MUST OFFER ADEQUATE GUARANTEES THAT IT WILL BE PROFITABLE ( ARTICLE 10 ( B ) ) .

3 . THE PROJECT MUST CONTRIBUTE TO THE LASTING ECONOMIC EFFECT OF THE AIMS PURSUED BY THE PROGRAMME ( IN SO FAR AS IT FORMS PART OF A PROGRAMME ) ( ARTICLE 10 ( C ) ) .

4 . THE GRANTING OF ASSISTANCE TO THE PROJECT MUST NOT AFFECT CONDITIONS OF COMPETITION IN SUCH A WAY AS TO BE INCOMPATIBLE WITH THE PRINCIPLES CONTAINED IN THE TREATY ( ARTICLE 18 ) .

III . SELECTION CRITERIA

1 . THE SELECTION CRITERIA ARE INTENDED TO INDICATE THE TYPES OF INVESTMENT WHICH , IF ALL OTHER CONDITIONS ARE SATISFIED ( SEE : CONDITIONS FOR ELIGIBILITY AND GENERAL EVALUATION CRITERIA ) , MAY QUALIFY , SO FAR AS AVAILABLE RESOURCES ALLOW , FOR PRIORITY IN THE GRANTING OF ASSISTANCE .

2 . HOWEVER , APART FROM A LIMITED NUMBER OF SECTORS WHERE , IN PRINCIPLE , ALL TYPES OF INVESTMENT ARE ELIGIBLE UNDER THE ABOVE CONDITIONS , THE RULES GOVERNING THE OPERATION OF THE MARKET AND THE STRUCTURAL CONDITIONS MAKE IT NECESSARY , IN RESPECT OF THE OTHER SECTORS , TO LAY DOWN A SERIES OF RESTRICTIVE CONDITIONS LIMITING THE TYPES OF INVESTMENT ELIGIBLE FOR ASSISTANCE , EVEN WHERE THE OTHER CONDITIONS ARE SATISFIED .

3 . CONSEQUENTLY , THE FOLLOWING LIST GIVES BOTH THE SECTORS IN RESPECT OF WHICH NO RESTRICTIONS ARE LAID DOWN , STATING WHAT TYPES OF INVESTMENT HAVE PRIORITY , AND ALSO IN RESPECT OF THE OTHER SECTORS , THE LIMITATIONS AND RESTRICTIVE CONDITIONS AND THE TYPES OF INVESTMENT WHICH MAY BE GIVEN PRIORITY .

4 . WITHIN THE FRAMEWORK OF THE APPROVAL OF SPECIFIC PROGRAMMES UNDER ARTICLE 2 , DEROGATIONS TO THE LIMITATIONS AND RESTRICTIVE CONDITIONS LISTED BELOW MAY BE ALLOWED IN SO FAR AS APPROVED PROGRAMMES DEMONSTRATE SPECIFIC STRUCTURAL DEFICIENCIES OR PARTICULAR SITUATIONS WHICH INDICATE THAT THE APPLICATION OF THESE RESTRICTIVE CONDITIONS TO PROJECTS INCLUDED IN THE PROGRAMMES CONCERNED WOULD NOT BE JUSTIFIED .

5 . THE PRIORITIES LAID DOWN IN ARTICLE 11 STILL APPLY .

6 . PROJECTS WHICH ARE INCLUDED IN AN APPROVED PROGRAMME HAVE PRIORITY OVER OTHER PROJECTS , ( ARTICLE 12 ( 2 ) ) . PRIORITY MAY ALSO BE GIVEN TO PROJECTS FALLING WITHIN THE FRAMEWORK OF INTEGRATED OPERATIONS .

A . SECTORS WITHOUT RESTRICTIONS

7 . ANY TYPE OF INVESTMENT MAY QUALIFY FOR ASSISTANCE IN THE FOLLOWING SECTORS :

- FRUIT , VEGETABLES AND FLORICULTURAL PRODUCTS ;

- POTATOES ;

- SHEEPMEAT .

8 . PRIORITY IS GRANTED TO THE FOLLOWING SECTORS AND TYPES OF INVESTMENT :

( A ) POTATOES : STORAGE , SORTING AND PACKING INSTALLATIONS ;

( B ) SHEEPMEAT : ANY INVESTMENT .

B . SECTORS SUBJECT TO RESTRICTIONS

I . AGRICULTURAL PRODUCTS

B1 . MILK AND MILK PRODUCTS

9 . INVESTMENTS INELIGIBLE FOR ASSISTANCE FROM THE FUND ARE AS FOLLOWS :

( A ) INVESTMENT RELATING TO THE PRODUCTION OR MARKETING OF :

BUTTER ( 3 ) , POWDERED MILK , WHEY POWDER , BUTTER OIL , LACTOSE , EVAPORATED CONDENSED MILK , CASEIN , CASEINATE , PROCESSED CHEESE AND ICE CREAM .

( B ) INVESTMENT AIMED AT INCREASING PRODUCTION CAPACITY OF :

UHT MILK IN ZONES WHERE PASTEURIZED MILK IS AVAILABLE , " BLUE CHEESE " , CAMEMBERT , MUNSTER , EMMENTHAL , " CHEDDAR " , USED IN THE MANUFACTURE OF PROCESSED CHEESE .

( C ) INVESTMENT INVOLVING AN INCREASE IN EXISTING MILK USE CAPACITY ( 3 ) .

10 . INVESTMENTS ARE ELIGIBLE FOR ASSISTANCE FROM THE FUND BY WAY OF DEROGATION FROM THE ABOVEMENTIONED RESTRICTIONS IF THEY ARE FOR :

( A ) THE RESTRUCTURING OF BUTTER PRODUCTION CAPACITY , PROVIDED THAT THE NEW CAPACITY DOES NOT EXCEED DISCONTINUED CAPACITY AND THAT THE LATTER WAS LESS THAN 50 TONNES PER YEAR PER UNDERTAKING ;

( B ) THE TRANSFER OF MILK USE CAPACITY TO OTHER PRODUCTS OR OTHER UNDERTAKING ;

( C ) PASTEURIZED DRINKING MILK OTHERWISE UNTREATED ;

( D ) THE USE OF LIQUID SKIMMED MILK AS FEED ON FARMS ;

( E ) THE PRODUCTION OF NEW PRODUCTS TO INCREASE COMMERCIAL OUTLETS FOR MILK ;

( F ) THE COLLECTION OF MILK IN LESS FAVOURED AREAS .

11 . PRIORITY IS GIVEN TO THE TYPES OF INVESTMENT UNDER ( C ) , ( D ) AND ( E ) IN PARAGRAPH 10 ABOVE .

B2 . MEAT ( PIGMEAT , BEEF AND VEAL , POULTRYMEAT )

12 . INVESTMENT IS INELIGIBLE FOR ASSISTANCE FROM THE FUND IF IT RELATES TO :

( A ) AN INCREASE OF POULTRYMEAT SLAUGHTERING CAPACITY ;

( B ) AN INCREASE IN PIGMEAT AND BEEF AND VEAL SLAUGHTERING CAPACITY , APART FROM THE REGIONAL EXCEPTIONS DESCRIBED IN PARAGRAPH 13 ( C ) .

13 . INVESTMENT IS ELIGIBLE FOR ASSISTANCE FROM THE FUND IF IT RELATES TO :

( A ) MODERNIZATION AND RATIONALIZATION ;

( B ) ADAPTATION TO COMMUNITY HYGIENE RULES ;

( C ) EXTENSION OF EXISTING CAPACITY OR CREATION OF NEW CAPACITY WHERE THE REGIONAL PRODUCTION SITUATION SHOWS CAPACITY TO BE INSUFFICIENT OR WHERE A CERTAIN AMOUNT OF UNRATIONLIZED PIGMEAT AND BEEF AND VEAL CAPACITY NEEDS TO BE CLOSED DOWN .

14 . PRIORITY IS GIVEN TO THE FOLLOWING FORMS OF INVESTMENT :

CUTTING AND PROCESSING INSTALLATIONS , PARTICULARLY IN PRODUCTION REGIONS WHERE AS YET LITTLE OR NO SUCH ACTIVITY IS CARRIED ON .

B3 . WINE

15 . INVESTMENT IS ELIGIBLE FOR ASSISTANCE FROM THE FUND ONLY FOR INSTALLATIONS CONCERNED WITH THE PRODUCTION , STORAGE , CONDITIONING AND MARKETING OF WINES OF A TYPE AND QUALITY WHICH ASSURE REASONABLE MARKETING PROSPECTS .

16 . PRIORITY IS GIVEN TO THE FOLLOWING TYPES OF INVESTMENT :

( A ) RESTRUCTURING THROUGH THE CLOSURE OF WINERIES WHICH ARE TOO SMALL AND THE CREATION OF COMPETITIVE UNITS .

( B ) SHARING OF OPERATIONS AND COOPERATION BETWEEN WINERIES , PARTICULARLY FOR MARKETING ACTIVITIES .

B4 . FEEDINGSTUFFS

17 . INVESTMENT IS INELIGIBLE IF IT IS INTENDED TO INCREASE PRODUCTION CAPACITY , APART FROM THE EXCEPTION DESCRIBED IN PARAGRAPH 18 .

18 . INVESTMENTS INVOLVING AN INCREASE IN CAPACITY ARE ELIGIBLE BY WAY OF DEROGATION FROM THE ABOVEMENTIONED RESTRICTION IN SO FAR AS THE ABANDONMENT OF CORRESPONDING CAPACITY IN OTHER PRODUCTION INSTALLATIONS IS DEMONSTRATED .

19 . NO SPECIAL PRIORITY IS ENVISAGED IN THIS SECTOR .

B5 . OLIVES

20 . THE INVESTMENTS EXCLUDED ARE THOSE WHICH INVOLVE AN INCREASE IN THE CAPACITY OF OIL CRUSHING FACILITIES ( SEE EXCEPTIONS UNDER 21 ( B ) ) .

21 . THE INVESTMENTS ALLOWED AND WHICH HAVE PRIORITY ARE THESE WHICH CONCERN :

( A ) FACILITIES FOR THE PROCESSING AND MARKETING OF EDIBLE OLIVES ;

( B ) RATIONALIZATION AND MODERNIZATION OF EXISTING OIL MILLS ; INCREASED CAPACITY IN AN OIL MILL IS ALLOWED IN SO FAR AS PROOF IS GIVEN THAT CORRESPONDING CAPACITY IS ABANDONED IN OTHER OIL MILLS .

B6 . CEREALS

22 . INVESTMENTS WHICH CONCERN MILLING AND MALTING , ( WITH THE EXCEPTION OF THOSE DEALING WITH STORAGE OF BARLEY ) , STARCH AND FECULA ARE EXCLUDED .

23 . ALL OTHER INVESTMENTS ARE ALLOWED .

24 . PRIORITY IS GIVEN TO INVESTMENTS WHICH CONCERN STORAGE FACILITIES .

B7 . SUGAR

25 . NO INVESTMENT IS ELIGIBLE IN THIS SECTOR .

II . FISHERY PRODUCTS

26 . INELIGIBLE INVESTMENTS ARE THOSE INSTALLATIONS TO BE USED PRINCIPALLY FOR THE MARKETING AND PROCESSING OF FISH PRODUCTS OTHER THAN THOSE FOR HUMAN CONSUMPTION . HOWEVER , CONSIDERATION MAY BE GIVEN TO INVESTMENTS CONCERNED EXCLUSIVELY WITH THE HANDLING , PROCESSING OR MARKETING OF WASTE FROM FISH PRODUCTS .

27 . A CASE BY CASE EXAMINATION WILL BE MADE AS REGARDS INVESTMENTS WHICH BRING ABOUT AN INCREASE IN THE USAGE OF SPECIES WHICH ARE ALREADY IN DEFICIT IN THE COMMUNITY BUT WHICH COULD BE IMPROVED IN THE FUTURE , OR WHICH CONCERN THE PRODUCTION OF PROCESSED PRODUCTS FOR WHICH MARKETING PROSPECTS ARE DIFFICULT .

28 . ALL OTHER INVESTMENTS ARE ELIGIBLE .

29 . INVESTMENT IS ELIGIBLE AND IS GIVEN PRIORITY IF IT RELATES TO :

( A ) PROJECTS BASED ON THE MARKETING AND PROCESSING OF SPECIES WHICH AT THE MOMENT ARE LITTLE USED OR WHICH ARE NOT WELL KNOWN TO CONSUMERS , PROVIDED THERE ARE SUFFICIENT OUTLETS FOR THE FINISHED PRODUCTS .

( B ) PROJECTS WHICH INVOLVE AN IMPORTANT ELEMENT OF TECHNOLOGICAL INNOVATION .

( C ) PROJECTS INVOLVING THE RECONVERSION OF FACTORIES FOR THE PROCESSING OF FISH PRODUCTS FOR PURPOSES OTHER THAN HUMAN CONSUMPTION TO OPERATIONS RELATING SPECIFICALLY TO HUMAN CONSUMPTION .

( D ) PROJECTS WHICH REDUCE THE SEASONALITY OR IRREGULARITY OF PRODUCTION OF PROCESSED FISH PRODUCTS .

( E ) PROJECTS WHICH IMPROVE HYGIENE CONDITIONS IN PRODUCTION FACILITIES .

C . RESTRICTIONS ON ALL SECTORS

30 . NO INVESTMENT IS ELIGIBLE WHICH RELATES TO THE MARKETING OR PROCESSING OF PRODUCTS FROM NON-MEMBER COUNTRIES .

31 . NO INVESTMENT IS ELIGIBLE FOR COLD STORAGE WITH THE EXCEPTION OF COLD STORES LINKED WITH MARKETING AND PROCESSING FACILITIES .

IV . VARIATION IN THE RATE OF AID

1 . THE NORMAL RATE IS 25 % OF ELIGIBLE COSTS ( 4 ) .

2 . THE RATE OF AID IS 30 % OF ELIGIBLE COSTS IN REGIONS SATISFYING THE CRITERIA OF ARTICLE 11 ( 1 ) ( C ) , WHERE THIS RATE IS NECESSARY EITHER TO ENSURE THE VIABILITY OF THE PROJECT OR WHERE THE PROJECT IS MEANT TO PROVIDE AN INCENTIVE OR DEMONSTRATION .

3 . AID IS LIMITED TO 2 1/2 TIMES NATIONAL AID WHERE THIS IS LESS THAN 8 ( 5 ) .

4 . AID IS LIMITED TO 15 % OF ELIGIBLE COSTS FOR PROJECTS NOT INCLUDED IN APPROVED SPECIFIC PROGRAMMES , ARTICLE 17 ( 3 ) ) . THIS LIMIT IS INCREASED TO 25 % FOR PROJECTS IN THE MEZZOGIORNO AND LANGUEDOC-ROUSSILLON AND FOR PROJECTS RELATING TO WINE IN THE DEPARTEMENTS OF VAR , VAUCLUSE , BOUCHES-DU-RHONE , ARDECHE AND DROME .

5 . IT IS CONFIRMED THAT , IN THE MILK SECTOR , AID IS LIMITED TO :

- 25 % FOR THE PRODUCTION OF NEW PRODUCTS ;

- 20 % FOR PROJECTS RELATED TO LIQUID MILK FOR HUMAN CONSUMPTION , THE PRODUCTION OF SPECIALITY PRODUCTS WITH A READY MARKET OUTLET , INVESTMENTS WHICH RESULT IN THE DELIVERY OF LIQUID SKIM MILK TO FARMERS , OR THE COLLECTION OF MILK IN LESS FAVOURED REGIONS ;

- 15 % FOR ALL OTHER ELIGIBLE INVESTMENT .

BY DEROGATION TO THE RATES CITED ABOVE THE PROJECTS :

- SATISFYING THE CRITERIA OF ARTICLE 11 - PARAGRAPH 1 C - MAY QUALIFY FOR 5 % MORE AID ;

- IN LANGUEDOC-ROUSSILLON MAY QUALIFY FOR 10 % MORE AID ;

- IN THE MEZZOGIORNO MAY QUALIFY FOR 25 % MORE AID .

( 1 ) THE ARTICLES FOR WHICH THE REGULATION IS NOT STARTED ARE FROM REGULATION ( EEC ) NO 355/77 .

( 2 ) THIS PERCENTAGE IS :

- 25 % FOR THE MEZZOGIORNO ;

- 35 % FOR LANGUEDOC-ROUSSILLON AND FOR PROJECTS CONCERNING WINE IN THE DEPARTMENTS OF VAR , VAUCLUSE , BOUCHES-DU-RHONE , ARDECHE AND DROME .

( 3 ) SEE EXCEPTIONS UNDER 10 .

( 4 ) THIS RATE IS INCREASED TO :

- 50 % FOR THE MEZZOGIORNO ;

- 35 % FOR LANGUEDOC-ROUSSILLON AND FOR PROJECTS RELATING TO WINE IN THE DEPARTMENTS OF VAR , VAUCLUSE , BOUCHES-DU-RHONE , ARDECHE AND DROME .

( 5 ) WRITTEN INTO THE COUNCIL MINUTES :

- 8 % IS TO BE REPLACED BY

- 16 % FOR THE MEZZOGIORNO ;

- 11 % FOR LANGUEDOC-ROUSSILLON AND PROJECTS RELATING TO WINE IN THE DEPARTMENTS OF VAR , VAUCLUSE , BOUCHES-DU-RHONE , ARDECHE AND DROME .