31.12.86 OfficialJournaloftheEuropeanCommunities NoL382/3
COUNCILDECISION
of16December1986
onthegrantofanationalaidintheformofapaymentonaccountofthepremiumforewesin
thesheepmeatsectorinFrance
(86/648/EEC)
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularthethird
subparagraphofArticle93(2)thereof,
HavingregardtotherequestsubmittedbytheFrench
Governmenton2December1986,
WhereasArticles92,93and94oftheTreaty,whichconcern
nationalaid,weremadeapplicabletotheproductionand
marketingofthesheepmeatandgoatmeatproductsreferred
toinArticle23ofCouncilRegulation (EEC)No1837/80of
27June1980onthecommonorganizationofthemarketin
sheepmeatandgoatmeat(');
Whereasthetwoconsecutiveperiodsofdroughtinthe
summerof1985andthesummerof1986resultedinserious
feedingproblemsinthesheepmeatsectorinFrance;whereas
farmershavebeenobligedtoslaughteralargeproportionof
theirherdsandtoincurdebtstobuyreplacementfodderas
feedfortheanimalswhichwerenotslaughtered ;marketpricesinFrenchfrancswhicharecomparabletothose
of1981;whereastheturnoverofthefarmersconcernedis
currentlydroppingveryconsiderablyasaresult;
WhereastheCommission ,inviewofthehighlevelof
indebtednessofthefarmersandoftheensuingcashflow
difficulties,hasauthorizedtheFrenchGovernment ,asan
exceptionalmeasure,tomakeapaymentonaccount
amountingto75%ofthepremiumforewestofarmers
whoseholdingsaresituatedintheless-favouredareasof
France;
Whereas,however,thesameacutecashflowproblemsarea
burdenonallFrenchsheepfarmerswhetherornottheir
holdingsaresituatedinaless-favouredarea;whereasthe
relevantrulesprovideforthepossibilityofmakingapayment
onaccountonlytoholdingssituatedinless-favoured
areas;
WhereastheFrenchGovernment hasdecidedtocometothe
aidofthosefarmerswhoseholdingsaresituatedinanarea
whichisnotless-favoured ;whereas,tothisend,theFrench
Governmenthasconsideredadvancingtothemalso,but
fromnationalfunds,asumcorresponding to75%ofthe
premiumforeweswhichthosefarmersmayclaimattheend
ofthemarketingyear,i.e.inMarch1987;
WhereastheFrenchGovernmentnotifiedthisprojected
nationalaidtotheCommission inaccordancewithArticle93
(3)oftheTreaty;
WhereastheCommissionconsideredthattheprojectedaid
wasnotcompatiblewiththecommonmarket,and
particurlarlywiththecommonorganizationprovidedforby
Regulation (EEC)No1837/80;
WhereasthedroponthesheepmeatmarketinFranceisthe
resultoftheunforeseeable andabnormalcombination oftwo
factorsforeigntothenormaloperationofthatmarket,and
whereasthisdroprepresentsaheavyburdenontheincomeof
thefarmersinquestion;
Whereastherearethereforeexceptionalcircumstances to
justifyconsideringthenationalaidinquestionasa
derogation,totheextentandfortheperiodstrictlynecessary
inordertorelievethecashflowproblemsoftheFrench
farmersinquestion,ascompatiblewiththecommon
market,Whereastheadditionalsupplyofmeatresultingfromthis
abnormalslaughterofherdshasresultedinaconsiderable
dropinthemarketpricesofsheepmeatinFrance;whereas,
furthermore ,thedebtsincurredbyfarmerstopurchase
fodderwhichotherwisewouldhavebeenunnecessaryweigh
heavilyonthecashflowoffarmersandeventhreatenthe
survivalofsomeholdings;
Whereastheconsiderabledropinthepoundsterlingonthe
exchangemarketsasfromAugust1986hasstimulated
UnitedKingdomexportsofsheepmeattotheFrenchmarket;
whereasthismeatmaybesuppliedatrelativelylowpricesin
Frenchfrancsasaresultoftheexchangeratetrends;whereas
thisadditionallow-pricedsupplyhasalsoaffectedthelevelof
Frenchprices,whichwerealreadyfallingasaresultofthe
effectsofthedrought;
Whereasthecombinationofthesetwofactorsforeigntothe
normaloperationofthesaidmarkethasresultedincurrent
(MOJNoL183,16.7.1980,p.1.

NoL382/4 OfficialJournaloftheEuropeanCommunities 31.12.86
HASDECIDED ASFOLLOWS : Article2
ThisDecisionisaddressedtothe"FrenchRepublic.
DoneatBrussels,16December1986.Article1
ThenationalaidgrantedbytheFrenchGovernmentinthe
formofapaymentonaccountofthepremiumforewes,to
Frenchsheepfarmerswhoseholdingsaresituatedinareas
whicharenotless-favoured areasofFrance,shallbe
considered,uptoarateof75%oftheestimatedpremium
anduntiltheendofthe1985/86marketingyear,as
compatiblewiththecommonmarket.FortheCouncil
ThePresident
M.JOPLING