EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 25.10.2004 
COM(2004) 710 final 
2004/0253 (CNS)   
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 1782/2003 estab lishing common rules for direct support 
schemes under the common agricultural policy  and establishing certain support schemes 
for farmers and Regulation (EC) No 1788/ 2003 establishing a levy in the milk and 
milk products sector 
 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
Due to the geographic location of the Kleinwal sertal (Community of Mittelberg) and the 
Community of Jungholz, which are situated with in the Austrian territ ory and only accessible 
by road from Germany, the milk of their produc ers (988 712 kg) has been delivered to German 
buyers. 
Since the start of the Community milk quota system in 1984 the milk marketed by these 
producers has been taken into account in the establishment of the German milk reference 
quantities. 
After Austria’s Accession to the European Union in 1995, direct payments under the 
prevailing common agricultural policy (head-age pr emiums, arable crops) have been granted 
to the milk producers in Kleinwalsertal (Co mmunity of Mittelberg) and the Community of 
Jungholz and administered by th e Austrian authorities. 
Regulation (EC) No 1782/2003 has introduced direct payment fo r the dairy sector (dairy 
premium) starting from the calendar year 2004. These payments are based on the individual 
reference quantities of producer s concerned which are administ ered by Germany whilst, under 
that Regulation the pa yment regarding the dairy premium should be carried out by the 
Austrian authorities within th e limit of their nationa l reference quantity and their budgetary 
ceiling. Both the reference quantity and the ceili ng have been calculated for Austria without 
taking into account the i ndividual reference quantit ies for those regions. 
To permit a practical and correct administration of  the dairy premium and its inclusion into the 
Single Payment Scheme (in Germany from  2005), Council Regulation (EC) No 1782/2003 
needs to be amended in such a way that the reference quantities and the budgetary ceiling for 
Germany and Austria take into account the milk reference quantities of the producers of the 
regions concerned. Consequently, the German reference quantities of producers concerned 
under Council Regulation (EC) No 1788/2003 have to  be converted into Austrian reference 
quantity as from milk  quota year 2004/05. 
The proposed amendments are clearly only technical  adaptations that beca me necessary due to 
the recent reform of  the milk sector. 
 
EN 3   EN 2004/0253 (CNS) 
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 1782/2003 estab lishing common rules for direct support 
schemes under the common agricultural policy  and establishing certain support schemes 
for farmers and Regulation (EC) No 1788/ 2003 establishing a levy in the milk and 
milk products sector 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the Eur opean Community, and in particular the third 
subparagraph of Article 37(2) thereof, 
Having regard to the proposal from the Commission, Having regard to the opinion of  the European Parliament, 
Whereas: (1) Due to the geographic location of the Klei nwalsertal (Community  of Mittelberg) and 
the Community of Jungholz, which are situated  within the Austrian territory and only 
accessible by road from Germany, the milk of their producers has been delivered to 
German buyers. 
(2) Since Regulation (EEC) No 804/68 of the Council of 27 June 1968
 on the common 
organisation of the market in milk and milk products1, as amended by Regulation 
(EEC) No 856/842, has introduced the Community milk quota system, the milk 
marketed by these producers has been taken into account in the establishment of the 
German milk reference quantities. 
(3) Council Regulation (EC) No 1782/20033 has introduced direct payment for the dairy 
sector starting from the calendar year 2004. These payments are based on the 
individual reference quanti ties of producers concerned which are administered by 
Germany whilst, under that Regulation, the payment of the dairy premium should be 
carried out by the Austrian authorities with in the limit of their national reference 
quantity for the 12-month period of 1999/2000 set out in Annex I to Council Regulation (EEC) No 3950/92
4 establishing an additional levy in the milk and milk 
                                                 
1 OJ L 148, 28.6.1968, p. 13. Regulation repealed by Regulation (EC) No 1255/1999 
(OJ L 160, 26.6.1999, p. 48). 
2 OJ L 90, 1.4.1984, p. 10. 
3 OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Regulation (EC) No 864/2004 
(OJ L 161, 30.4.2004, p. 48). 
4 OJ L 405, 31.12.1992, p. 1. Regulation repealed by Regulation (EC) No 1788/2003 
(OJ L 270, 31.12.2003, p. 123). 
 
EN 4   EN products sector and a budgetary ceiling provi ded for in Article 96(2) of Regulation 
(EC) No 1782/2003. Both the reference quantity  and the ceiling have been calculated 
for Austria without taking in to account the individual re ference quantities for the 
Kleinwalsertal (Community of Mittel berg) and the Community of Jungholz. 
(4) Article 47(2) of Regulation (EC) No 1782/2003 provides for the inclusion of dairy 
payments in the single payment scheme provided for by that Regulation in 2007. Article 62 of the same Regulation authorises however the Member States to anticipate 
the inclusion of such payments from 2005. The inclusion of th e dairy premium is 
foreseen in Germany as from 2005, while in Austria it will take pl ace at a later stage. 
(5) To permit a practical and correct administration of the dairy premium and its inclusion 
in the Single Payment Scheme, Regulati on (EC) No 1782/2003 should be amended in 
such a way that, for Germany and Austria,  the reference quantities and the budgetary 
ceiling, referred to in Articles 95(4) and 96( 2), take into account the milk reference 
quantities of the producers of the regions concerned. Consequently, it is also 
appropriate to modify the Annex I to Regulation (EC) No 1788/2003 in order to 
convert the reference quantities of produ cers concerned into Austrian reference 
quantities as from milk quota year 2004/05. 
(6) For the payments due in 2004, taking into account that the date for application has 
already expired, it is however appropriate to provide for a derogation to Article 2(b) of 
Regulation (EC) No 1782/2003 allowing Germany to pay the premium to farmers 
situated in the Austrian Kl einwalsertal (Community of Mittelberg) and the Community 
of Jungholz, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EC) No 1782/2003 is  hereby amended as follows: 
(1) In Article 95(4), the followi ng second subparagraph is added: 
"However, for Germany and Austria the ceili ng fixed on the basis of the reference 
quantities for the 12-month period of 1999/2000, shall be, respectively, 
27 863 827,288 and 2 750 389,712 tonnes." 
(2) Article 96(2) is amended as follows: 
(a) the row for Germany is replaced by the following: 
"Germany 101,99 204,52 306,78"; 
(b) the row for Austria is replaced by the following: 
"Austria 10,06 20,19 30,28". 
 
EN 5   EN Article 2 
Annex I to Regulation (EC) No  1788/2003 is amended in accordan ce with the Annex to this 
Regulation. 
Article 3 
By way of derogation from Article 2(b) of  Regulation (EC) No 1782/2003, Germany shall pay 
the dairy premium and additional payments for 2004 to farmers situated in the Austrian Kleinwalsertal (Community of Mittel berg) and the Community of Jungholz. 
Article 4 
This Regulation shall enter into force on the day of its publication in the Official Journal of the 
European Union . 
It shall apply as follows: (a) Article 1 shall apply from 1 January 2005; (b) Article 2 shall apply from 1 April 2004; (c) Article 3 shall apply from 1 January 2004. 
This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
Done at Brussels,  
 For the Council 
 The President 
 
EN 6   EN ANNEX  
Annex I to Regulation (EC) No 1788/2003 is amended as follows: 
(1) Point (a) is amended as follows: 
(a) the row for Germany is replaced by the following: 
"Germany 27 863 827,288"; 
(b) the row for Austria is replaced by the following: 
"Austria 2 750 389,712". 
(2) Point (b) is amended as follows: 
(a) the row for Germany is replaced by the following: 
"Germany 27 863 827,288"; 
(b) the row for Austria is replaced by the following: 
"Austria 2 750 389,712". 
(3) Point (c) is amended as follows: 
(a) the row for Germany is replaced by the following: 
"Germany 28 003 146,424"; 
(b) the row for Austria is replaced by the following: 
"Austria 2 764 141,661". 
(4) Point (d) is amended as follows: 
(a) the row for Germany is replaced by the following: 
"Germany 28 142 465,561"; 
(b) the row for Austria is replaced by the following: 
"Austria 2 777 893,609". 
(5) Point (e) is amended as follows: 
(a) the row for Germany is replaced by the following: 
"Germany 28 281 784,697"; 
(b) the row for Austria is replaced by the following: 
"Austria 2 791 645,558". 
 
EN 7   EN FINANCIAL STATEMENT  
  
1. BUDGET HEADING: 
05 03 01 10 and  
05 03 01 11 APPROPRIATIONS:
EUR 959 million 
EUR 431 million 
2. TITLE: 
Council Regulation amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for 
farmers and Regulation (EC) No 1788/2003 establishing a levy in the milk and milk products sector. 
3. LEGAL BASIS: 
Article 37(2)(3) of the Treaty 
4. AIMS: 
Transfer of quota and the corresponding premium payments from Germany to Austria. 
5. FINANCIAL IMPLICATIONS 12 MONTH 
PERIOD 
 
(EUR million) CURRENT 
FINANCIAL 
YEAR 2004 
(EUR million) FOLLOWING 
FINANCIAL 
YEAR 2005 
(EUR million) 
5.0 EXPENDITURE 
– CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
– NATIONAL AUTHORITIES 
– OTHER –  –  –  
5.1 REVENUE 
– OWN RESOURCES OF THE EC  (LEVIES/CUSTOMS DUTIES) 
– NATIONAL –  –  –  
  2006 2007 2008 2009 
5.0.1 ESTIMATED EXPENDITURE –  –  –  –  
5.1.1 ESTIMATED REVENUE – – – – 
5.2 METHOD OF CALCULATION: 
The measure has no impact on the budget for the EU, since it is a question of transfer of quota and the 
corresponding premium payments from Germany to Aust ria, for quota so far counted within the German 
milk quota but originating from Austrian territory. 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET?  
YES  
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 
THE CURRENT BUDGET?  
YES  
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? NO 
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? NO 
OBSERVATIONS: