EXPLANATORY MEMORANDUM

CONTEXT OF THE PROPOSAL |

110 | Grounds for and objectives of the proposal The immediate objective of this proposal is to enable the Council to discharge its regulatory obligation to determine the guide prices and the Union producer price for the fishing year 2012. The wider objective of this proposal is thus to ensure the functioning of the price support and intervention mechanisms laid down in Council Regulation (EC) No 104/2000 during the fishing year in question. |

120 | General context Council Regulation (EC) No 104/2000 establishes a Common Organisation of the Markets in Fishery and Aquaculture Products, which pertains to the market- and trade-related aspects of the Common Fisheries Policy and thus also serves to implement the objectives enshrined in Article 39 of the Treaty on the Functioning of the European Union. Specific price support and intervention mechanisms are one important component of the Common Market Organisation. In this context, Article 43(3) of the Treaty obliges the Council to adopt, upon a proposal from the Commission, measures on the fixing of prices. This concerns the guide prices for a specified number of fishery products of EU importance as well as the Union producer price for specified tuna products. The guide prices form the reference for the subsequent fixing, by way of Commission regulations, of the different technical parameters needed for the operation of the intervention mechanisms. The Union producer price is of relevance for the compensatory allowance for tuna delivered to the processing industry, which might be triggered when prices on the world markets fall below a specified trigger level. Pursuant to Council Regulation (EC) No 104/2000, the relevant prices shall follow both the development of market prices during the three preceding fishing years as well as trends in production and demand. In line with that, the proposal is for increases between +1% and +3% for most whitefish species; for increases between +1.5% and +3% for pelagic species such as herring, mackerel, Spanish mackerel and whole albacore, as well as reductions between -0.5% and -2% for sardines, anchovies and gutted albacore; and for increases between +1% and +3% for most crustaceans. In the field of frozen species, the proposal reflects increases between +1% and +3% for a majority of products. Finally, the proposal is for increasing the Union producer price for tuna products by +2%. |

130 | Existing provisions in the area of the proposal Council Regulation (EC) No 1258/2010 fixing for the 2011 fishing year the guide prices and Union producer prices for certain fishery products pursuant to Regulation (EC) No 104/2000. |

140 | Consistency with the other policies and objectives of the Union The functioning of the Common Market Organisation set up by Council Regulation (EC) No 104/2000 and the discharge of the regulatory obligations pertaining thereto also serve to implement the objectives enshrined in Article 39 of the Treaty on the Functioning of the European Union. |

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT |

Consultation of interested parties |

211 | Consultation methods, main sectors targeted and general profile of respondents The Management Committee for Fishery Products and the Advisory Committee on Fisheries and Aquaculture. |

212 | Summary of responses and how they have been taken into account The views of both Committees have provided valuable input to the Commission's market analysis. |

Collection and use of expertise |

221 | Scientific/expertise domains concerned Markets in fishery products. |

222 | Methodology used Open consultation. |

223 | Main organisations/experts consulted Experts representing the Member States at the Management Committee for Fishery Products. Experts representing all major groups of EU stakeholders at the Advisory Committee for Fisheries and Aquaculture. |

2249 | Summary of advice received and used The existence of potentially serious risks with irreversible consequences has not been mentionned. |

225 | Advices are usually reflected in the proposal fixing the guide prices and Union producer prices. |

226 | Means used to make the expert advice publicly available Minutes of the meetings of the Management Committee for Fishery Products and the Advisory Committee for Fisheries and Aquaculture. |

230 | Impact assessment Considering the specific nature of the proposal, namely the annual determination of relevant prices pursuant to the provisos of the Common Market Organisation in its present version, an impact assessment is not required. The proposal is nevertheless based on a regular monitoring on interventions in the preceding fishing years and a thorough analysis of the market situation for each one of the relevant fishery products. |

LEGAL ELEMENTS OF THE PROPOSAL |

305 | Summary of the proposed action Proposal for a Council Regulation fixing for the 2012 fishing year the guide prices and Union producer prices for certain fishery products. |

310 | Legal basis Article 43(3) of the Treaty on the Functioning of the European Union. |

329 | Subsidiarity principle The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply. |

Proportionality principle The proposal complies with the proportionality principle for the following reason(s). |

331 | The attainment of the Single Market in the field of fisheries products requires the fixation of guide prices. The Common Market Organisation provides for specific intervention mechanisms but forces none of the relevant actors (producer organisations) to have recourse to intervention. |

332 | The Common Market Organisation has considerably decreased both the attractiveness of intervention in the form of wasteful withdrawals as well as the corresponding financial means. |

Choice of instruments |

341 | Proposed instruments: regulation. |

342 | Other means would not be adequate for the following reason(s). The guide prices and Union producer prices shall be fixed by the Council acting on a qualified majority on a proposal from the Commission. A regulation is required to ensure direct applicability and uniformity throughout the EU. |

BUDGETARY IMPLICATION |

401 | Since this is a price-fixing exercise, the impact on expenditure is indirect and will largely depend on developments in the market situation and on quantities of fishery products landed. |

E-4220 |

2011/0336 (NLE)

Proposal for a

COUNCIL REGULATION

on fixing for the 2012 fishing year the guide prices and Union producer prices for certain fishery products pursuant to Regulation (EC) No 104/2000

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(3) thereof,

Having regard to the proposal from the European Commission,

Whereas:

1. According to Article 43(3) of the Treaty, the Council, on a proposal from the Commission, is to adopt measures on the fixing of prices.

2. Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products[1] requires that guide prices and Union producer prices for each fishing year be fixed in order to determine price levels for intervention on the market for certain fisheries products.

3. It is incumbent upon the Council to fix the guide prices for each of the products and groups of products listed in Annexes I and II to Regulation (EC) No 104/2000, and the Union producer prices for the products listed in Annex III to that Regulation.

4. On the basis of the data currently available on the prices for the products concerned and the criteria referred to in Article 18(2) or Regulation (EC) No 104/2000, the guide prices should be increased, maintained or reduced for the 2012 fishing year depending on the species.

5. It is appropriate to establish the Union producer price for one of the products listed in Annex III to Regulation (EC) No 104/2000 and calculate the Union producer prices for the others by means of the conversion factors established by Commission Regulation (EC) No 802/2006 of 30 May 2006 fixing the conversion factors applicable to fish of the genera Thunnus and Euthynnus[2] .

6. On the basis of the criteria laid down in the first and second indent of Article 18(2) and in Article 26(1) of Regulation (EC) No 104/2000, the Union producer price should be adjusted for the 2012 fishing year,

HAS ADOPTED THIS REGULATION:

Article 1

For the fishing year from 1 January to 31 December 2012, the guide prices as provided for in Article 18(1) of Regulation (EC) No 104/2000 shall be as set out in Annex I to this Regulation.

Article 2

For the fishing year from 1 January to 31 December 2012, the Union producer prices as provided for in Article 26(1) of Regulation (EC) No 104/2000 shall be as set out in Annex II to this Regulation.

Article 3

This Regulation shall enter into force on 1 January 2012.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

ANNEX I

Annexes | Species Products listed in Annexes I and II to Regulation (EC) No 104/2000 | Commercial presentation | Guide price (EUR/tonne) |

I | 1. Herring of the species Clupea harengus | Whole fish | 282 |

2. Sardines of the species Sardina pilchardus | Whole fish | 568 |

3. Dogfish (Squalus acanthias) | Whole fish or Gutted fish with head | 1123 |

4. Spotted dogfish (Scyliorhinus spp.) | Whole fish or Gutted fish with head | 711 |

5. Redfish (Sebastes spp.) | Whole fish | 1230 |

6. Cod of the species Gadus morhua | Whole fish or gutted fish with head | 1613 |

7. Saithe (Pollachius virens) | Whole fish or gutted fish with head | 823 |

8. Haddock (Melanogrammus aeglefinus) | Whole fish or gutted fish with head | 975 |

9. Whiting (Merlangius merlangus) | Whole fish or gutted fish with head | 902 |

10. Ling (Molva spp.) | Whole fish or gutted fish with head | 1176 |

11. Mackerel of the species Scomber scombrus | Whole fish | 328 |

12. Mackerel of the species Scomber japonicus | Whole fish | 294 |

13. Anchovy (Engraulis spp.) | Whole fish | 1268 |

14. Plaice (Pleuronectes platessa) | Whole fish or gutted fish with head from 1.1.2011 to 30.4.2011 | 1005 |

Whole fish or gutted fish with head from 1.5.2011 to 31.12.2011 | 1389 |

15. Hake of the species Merluccius merluccius | Whole fish or gutted fish with head | 3235 |

16. Megrim (Lepidorhombus spp.) | Whole fish or gutted fish with head | 2365 |

17. Dab (Limanda limanda) | Whole fish or gutted fish with head | 791 |

18. Common flounder (Platichthys flesus) | Whole fish or gutted fish with head | 493 |

19. Albacore or longfinned tunas (Thunnus alalunga) | Whole fish | 2343 |

Gutted fish with head | 2388 |

20. Cuttlefish (Sepia officinalis and Rossia macrosoma) | Whole | 1817 |

21. Monkfish (Lophius spp.) | Whole fish or gutted fish with head | 2879 |

Without head | 5955 |

22. Shrimp of the species Crangon crangon | Simply boiled in water | 2350 |

23. Northern prawn (Pandalus borealis) | Simply boiled in water | 6868 |

Fresh or chilled | 1638 |

24. Edible crab (Cancer pagurus) | Whole | 1693 |

25. Norway lobster (Nephrops norvegicus) | Whole | 5196 |

Tails | 4039 |

26. Sole (Solea spp.) | Whole fish or gutted fish with head | 6911 |

II | 1. Greenland halibut (Reinhardtius hippoglossoides) | Frozen, in original packages containing the same products | 1954 |

2. Hake of the genus Merluccius spp. | Frozen, whole, in original packages containing the same products | 1257 |

Frozen, filleted, in original packages containing the same products | 1528 |

3. Sea bream (Dentex dentex and Pagellus spp.) | Frozen, in lots or in original packages containing the same products | 1461 |

4. Swordfish (Xiphias gladius) | Frozen, whole, in original packages containing the same products | 4139 |

5. Cuttlefish (Sepia officinalis) (Rossia macrosoma) (Sepiola rondeletti) | Frozen, in original packages containing the same products | 1963 |

6. Octopus (Octopus spp.) | Frozen, in original packages containing the same products | 2226 |

7. Squid (Loligo spp.) | Frozen, in original packages containing the same products | 1191 |

8. Squid (Ommastrephes sagittatus) | Frozen, in original packages containing the same products | 961 |

9. Illex argentinus | Frozen, in original packages containing the same products | 899 |

10. Prawn of the family Penaeidae - Prawn of the species Parapenaeus longirostris | Frozen, in original packages containing the same products | 4153 |

- Other species of the family Penaeidae | Frozen, in original packages containing the same products | 7813 |

ANNEX II

Species Products listed in Annex III to Regulation (EC) No 104/2000 | Weight | Commercial specifications | Community producer price (EUR/tonne) |

Yellowfin tuna (Thunnus albacares) | weighing more than 10 kg each | Whole | 1224 |

Gilled and gutted |

Other |

weighing not more than 10 kg each | Whole |

Gilled and gutted |

Other |

Albacore (Thunnus alalunga) | weighing more than 10 kg each | Whole |

Gilled and gutted |

Other |

weighing not more than 10 kg each | Whole |

Gilled and gutted |

Other |

Skipjack (Katsuwonus pelamis) | Whole |

Gilled and gutted |

Other |

Bluefin tuna (Thunnus thynnus) | Whole |

Gilled and gutted |

Other |

Other species of the genera Thunnus and Euthynnus | Whole |

Gilled and gutted |

Other |

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

1.2. Policy area(s) concerned in the ABM/ABB structure

1.3. Nature of the proposal/initiative

1.4. Objective(s)

1.5. Grounds for the proposal/initiative

1.6. Duration and financial impact

1.7. Management method(s) envisaged

2. MANAGEMENT MEASURES

2.1. Monitoring and reporting rules

2.2. Management and control system

2.3. Measures to prevent fraud and irregularities

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

3.2. Estimated impact on expenditure

3.2.1. Summary of estimated impact on expenditure

3.2.2. Estimated impact on operational appropriations

3.2.3. Estimated impact on appropriations of an administrative nature

3.2.4. Compatibility with the current multiannual financial framework

3.2.5. Third-party participation in financing

3.3. Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

FRAMEWORK OF THE PROPOSAL/INITIATIVE

Title of the proposal/initiative

Proposal for a Council Regulation fixing for the 2012 fishing year the guide prices and Union producer prices for certain fishery products pursuant to Regulation (EC) No 104/2000

Policy area(s) concerned in the ABM/ABB structure [3]

Policy Area 11: Fisheries and Maritime Affairs

Nature of the proposal/initiative

( The proposal/initiative relates to a new action

( The proposal/initiative relates to a new action following a pilot project/preparatory action[4]

( The proposal/initiative relates to the extension of an existing action

( The proposal/initiative relates to an action redirected towards a new action

Objectives

The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

Resource efficient Europe

Specific objective(s) and ABM/ABB activity(ies) concerned

Specific objective No 1

To contribute to the objectives laid down by the Treaty (Article 39) by increasing the sustainability of fishing activities, ensuring minimum incomes for the producers, stabilisation of the market, availability of supply and reasonable prices for the consumers, and compensating the additional costs incurred in the marketing of fishery products from the outermost regions.

ABM/ABB activity(ies) concerned

Activity ABB 11 02: Fisheries markets

Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

Prevalence of carry-over operations over withdrawals

Guide price fluctuations remain limited (between +3% and -3%).

Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

Level of carry-over operations and withdrawals of fishery products

Evolution of guide prices of fishery products

Grounds for the proposal/initiative

Requirement(s) to be met in the short or long term

The interventions concerning fishery products are carried out under the Common Fisheries Policy (CFP) in accordance with Article 40 of the TFEU. They aim at providing stability to the EU markets by preventing possible risks of crisis. In this context, appropriate price and supply policies are of utmost importance. The interest of the production and marketing chain and the need to strengthen the competitiveness of the sector in a context of globalisation must be taken into account. The objective of market stability together with the support to producers’ income can essentially be achieved through the different mechanisms of intervention on the markets, e.g. withdrawals, carry-over, compensatory allowance. The interest of the consumers must also be considered

Added value of EU involvement

The question of subsidiarity is not relevant to this proposal since intervention falls within the exclusive competence of the EU. The added value of EU intervention is directly related to the underlying arguments of the existence of a Common Organisation of the Markets in fishery and aquaculture products

Lessons learned from similar experiences in the past

The yearly fixation of the guide prices and the Union producer price contribute to the attainment of the Single Market in the field of fisheries products

The Common Market Organisation has considerably decreased both the attractiveness of intervention in the form of wasteful withdrawals as well as the corresponding financial means

Coherence and possible synergy with other relevant instruments

Price support and intervention mechanisms are one important component of the Common Market Organisation. The guide prices provide the basis for the subsequent fixing of the different parameters needed for the operation of the intervention mechanisms for the fishing year concerned. Similarly, the Union producer price forms the basis for the granting of the compensatory allowance for tuna which might be triggered depending on the development of prices on the world markets

Duration and financial impact

( Proposal/initiative of limited duration

- ( Proposal/initiative in effect from 01/01/2012 to 31/12/2012

- ( Financial impact from YYYY to YYYY

( Proposal/initiative of unlimited duration

- Implementation with a start-up period from YYYY to YYYY,

- followed by full-scale operation.

Management mode(s) envisaged [5]

( Centralised direct management by the Commission

( Centralised indirect management with the delegation of implementation tasks to:

- ( executive agencies

- ( bodies set up by the Communities[6]

- ( national public-sector bodies/bodies with public-service mission

- ( persons entrusted with the implementation of specific actions pursuant to Title V of the Treaty on European Union and identified in the relevant basic act within the meaning of Article 49 of the Financial Regulation

( Shared management with the Member States

( Decentralised management with third countries

( Joint management with international organisations (to be specified)

If more than one management mode is indicated, please provide details in the "Comments" section.

Comments

As of 16 October 2006, the measures financed under the budget heading 11.02.01 are implemented in a centralised manner pursuant to Council Regulation (EC) No 1290/2005 on the financing of the common agricultural policy. Furthermore, the management of data notified by the Member States in accordance with Commission Regulation (EC) No 248/2009 is the sole responsibility of the Commission

MANAGEMENT MEASURES

Monitoring and reporting rules

Specify frequency and conditions.

The monitoring of the envisaged measures is ensured through the collection and the analysis of data notified by the Member States by way of the FIDES system in accordance with Commission Regulation (EC) No 248/2009

Management and control system

Risk(s) identified

Control method(s) envisaged

The proposal is based on regular monitoring of interventions in previous fishing years and thorough analysis of the market situation for the relevant products

Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

The anti-fraud measures are in conformity with the provisions laid down in Regulation (CE) No 104/2000 and, in particular, with the provisions laid down in Regulation (EEC) No 595/91 concerning irregularities and the recovery of sums wrongly paid

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

- Existing expenditure budget lines

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution |

Number [Description………………………………..] | DA/NDA ([7]) | from EFTA[8] countries | from candidate countries[9] | from third countries | within the meaning of Article 18(1)(aa) of the Financial Regulation |

2 | 11 02 01 01 Interventions in fishery products | DA/DNA | YES/NO | YES/NO | YES/NO | YES/NO |

- New budget lines requested

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution |

Number [Heading……………………………………..] | Diff./non-diff. | from EFTA countries | from candidate countries | from third countries | within the meaning of Article 18(1)(aa) of the Financial Regulation |

[XX.YY.YY.YY] | YES/NO | YES/NO | YES/NO | YES/NO |

Estimated impact on expenditure

Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: | Number | 2 |

EUR million (to 3 decimal places)

-

Estimated requirements of human resources

- ( The proposal/initiative does not require the use of human resources

- ( The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full amounts (or at most to one decimal place)

Year 2012 | Year N+1 | Year N+2 | Year N+3 | … enter as many years as necessary to show the duration of the impact (see point 1.6) |

( Establishment plan posts (officials and temporary agents) |

External personnel |

Compatibility with the current multiannual financial framework

- ( Proposal/initiative is compatible the current multiannual financial framework.

- ( Proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts.

- ( Proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework[20].

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.

Third-party contributions

- ( The proposal/initiative does not provide for co-financing by third parties

- The proposal/initiative provides for the co-financing estimated below:

Appropriations in EUR million (to 3 decimal places)

Year N | Year N+1 | Year N+2 | Year N+3 | … enter as many years as necessary to show the duration of the impact (see point 1.6) | Total |

Year N | Year N+1 | Year N+2 | Year N+3 | … insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6) |

Article …………. | | | | | | | | | |For miscellaneous assigned revenue, specify the budget expenditure line(s) affected.

Specify the method for calculating the impact on revenue.

[1] OJ L 17, 21.1.2000, p. 22.

[2] OJ L 144, 31.5.2006, p. 15.

[3] ABM: Activity-Based Management – ABB: Activity-Based Budgeting.

[4] As referred to in Article 49(6)(a) or (b) of the Financial Regulation.

[5] Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[6] As referred to in Article 185 of the Financial Regulation.

[7] DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations

[8] EFTA: European Free Trade Association.

[9] Candidate countries and, where applicable, potential candidate countries from the Western Balkans.

[10] Year N is the year in which implementation of the proposal/initiative starts.

[11] Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research.

[12] Year N is the year in which implementation of the proposal/initiative starts.

[13] Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

[14] As described in Section 1.4.2. "Specific objective(s)…"

[15] Year N is the year in which implementation of the proposal/initiative starts.

[16] Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research.

[17] CA= Contract Agent; INT= agency staff (" Intérimaire") ; JED= " Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;

[18] Under the ceiling for external personnel from operational appropriations (former "BA" lines).

[19] Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[20] See points 19 and 24 of the Interinstitutional Agreement.

[21] As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25% for collection costs.