Proposal for a Council Regulation (EC) amending Regulation (EEC) No 2328/91 on improving the efficiency of agricultural structures (96/C 300/12) COM(96) 422 final - 96/0213(CNS)

(Submitted by the Commission on 31 July 1996) THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas the beef market has been seriously disturbed as a result of consumer concerns over bovine spongiform encephalopathy (BSE); whereas this situation has resulted in a rapid and continuous deterioration of the market; whereas forecasts indicate that, despite the many measures taken by the Community in this regard, consumption is unlikely to return rapidly to its former level; whereas measures must therefore be taken to restore market equilibrium; whereas to this end it is necessary to bring production more closely into line with consumption;

Whereas the measures to restore market equilibrium should therefore be accompanied by corresponding action regarding the structural measures provided for in Council Regulation (EEC) No 2328/91 (1); whereas the sectoral limits for investment aid in the beef sector must be redefined, the same limits must be applied to setting-up aid for young farmers and the maximum density at which compensatory allowances can be granted should be reduced to 1,2 LU/ha so that they go only to extensive holdings,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 2328/91 is hereby amended as follows:

(a) The first subparagraph of Article 6 (5) is replaced by the following:

'5. The aid granted for investments in the beef sector, with the exception of investments aimed at protecting the environment, hygiene on holdings or animal welfare where there is no increase in capacity, shall be restricted to livestock holdings run by young farmers within the meaning of Article 10 (1) of this Regulation, where the beef-cattle stocking rate does not exceed 3, 2 and 2,5 livestock units (LU) per hectare of forage area used for feeding the cattle in the final year of the plans ending in 1994, 1995 and 1996 or later, respectively. The limits of 2,5 and 2 LU shall apply only to applications lodged on or after 1 January 1994.` (b) The following paragraph is added to Article 10:

'4. The conditions laid down in Article 6 (5) must be complied with in the case of young farmers who are setting up in beef production.` (c) The following paragraph is added to Article 11:

'Where the beef-cattle stocking density does not exceed 1,2 LU per hectare of forage in the last year of the material improvement plan, the percentage referred to in the above paragraph may be increased to 30 %.` (d) The third subparagraph of Article 19 (1) (a) is replaced by the following:

'Grant of the compensatory allowance shall be limited to 1,2 LU per hectare of total forage on the holding.`

Article 2

This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Communities.

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

(1) OJ No L 218, 6. 8. 1991, p. 1. Regulation as last amended by Regulation (EC) No 2387/95 (OJ No L 244, 12. 10. 1995, p. 50).