ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)359
Vol.1975/0145

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COMMISSION OFTHEEURQiSAIÎOGMMUMISES
COM(75)359final.
Brussels,11July1975
Proposaifora
REGULATION (EEG)(FTHECOUNCIL
emendingRegulationHo17/64/^EContheconditionsfor
grantingaidfromtheEuropeanAgricultural Guidance
andGuaranteeFund
(submitted ,totheCouncilbytheCommission)
CCIîi75)359final.

4605/VI/74
EXPLA1TAT0RY MMORAEDUM
1.Ithasbeennotedforsometimethatanincreasingnumberofprojects
forwhichaidhasbeengrantedbytheGuidanceSectionoftheE.A.G.G.F.
underRegulation 2To.17/64/EEChavehotbeencarriedoutorhavebeen
onlypartiallycompleted.Inthemaintheseprojectsareforregions
oftheCommunityinwhichtheagricultural structureisextremely
unsatisfactory andinwhichthereisthereforeaparticularneedfor
investmentinagriculture.
2.Oneeffectofsuchfailuretouseallorpartofthefundsallocated
forprojectsinrespectofwhichtheCommissionhasdecidedtograntaid
isthattheappropriations havetobewithdrawn,eitherbecausethe
beneficiary hasNotifiedtheCommissionofhisintentiontoabandon
theprojectorbecause,inaccordancewithArticle6(5)ofthefinancial
regulation,afteraperiodoffiveyearstheappropriations areno
longercarriedforward.Thus,notonlycantheappropriations inquestion
nolongerbeusedforprojectstowhichtheCommissionwishedto
contribute,theyarealsopermanentlylostforallpurposesofimproving
agricultural structures.
3«AccordingtoinformationreceivedbytheCommissionthesituationis
gettingworse,mainlyasaresultoftheeconomicsituationand,,in
particular,ofpriceincreasesandtheveryhighinterestratesv
prevailingonthemoneymarket.Moreover,itisparticularlyinthose
regionswhichareleastdevelopedfromtheeconomicpointofview,
whereagricultureisofmorethanaverageimportanceintheCommunity
andwheretheagriculturalstructureismostinneedofimprovement,
thattheeffectsofthattrendareincreasingly beingfelt.
4*Itseemsnecessarythereforetopreventthesituationarisinginwhich
partoftheappropriations intendedfortheimprovementofagricultural
structures,andaneverincreasingpart,arenotexpendedforthat
purpose.Provisionsshouldthereforebeadoptedsuchastoensurethat,
asfaraspossible,fundsallocatedareinfactused.

-2- 4605/VI/74
UndferRegulationNo.45/64/EECapplicantsfo.raidmustspecifyintheir
applications thedatesonwhichtheworkinquestionisexpectedto
beginandtobecompleted..If,however,theworkdoesnotbeginwithin
acertainperiodoftimefollowingtheCommission'sdecisiontogrant
theaid,thechancesoftheprojectbeingcompletedareconsiderably
reduced.Itwouldthereforeseemneoessary,ifthebeneficiaryisnot
inapositiontogivethenecessaryguaranteesthattheprojectwill
beexecuted,tosuppressthegrantandtoassignthecommunity
contribution toanotherproject whoseexecutionis
assured,andsosafeguardthecreditsengagedfortheimprovementof
theagricultural structure.
ItisthereforeproposedtoprovideinRegulation No.that
theCommission maysuppresstheaidandinsteadutilisethefundsfor
otherprojectswhere:
–thebeneficiary abandonstheproject5
–thebeneficiarycarriesoutonlyapartoftheproject(inthiscase,
onlytheaidinrespectofthepartnotoarriedoutistobe
transferred)y
–thebeneficiaryhasnotstartedworkwithintwo.■yearsfollowingthe
dateofthenotificationofthe.decision,contrarytotheinformation
containedinhisapplication andintheCommissiondecision,andhas
beenunabletoprovideadequateassurancesbeforetheendofthis
periodthattheprojectbecompleted.
Inordertoadaptthesystemtotakeaccountofthedifferentcategories
ofproject,ithasforseveralyearsbeenfoundnecessaryincertain
specificcasestodepart,forthepurposesofprovisionsconcerningthe
financialcontribution ofthebeneficiary andthepercentageofaidfrom
theFund,fromtheprovisionsofRegulationHo.17/64/EHJC.
Theseadjustments haveproveduseful.Itseemsappropriatetherefore
toincorporate theminthebodyoftheRegulationandthusobviatethe
needtograntfreshderogations eachyear.

-3- 4605AI /74
Proposal fora
REGULATION (EEC )OFTHECOUNCIL
amending Regulation No,17 /54/li!EContheconditions forgranting aid
from theEuropean Agricultural Guidance andGuarantee Fund
THECOUNCIL OPTI-IEEUROPEAN COMMUNITIES ,
Having regard totheTreat ;*establishing theEuropean Economic Community ,
andinparticular Articles 43and 209there of5
Having regard totheproposal from theCommission !
Having regard totheOpinion oftheEuropean Parliament ;
Whereas ,inorder totake account ofthedifficulties experienced incertain
sectorr ,thenaximum amount ofaidfrom theEuropean Agricultural Guidance
andGuarantee Fund forprojects relating toproduction structure ,being
projects submitted inaccordance withCouncil Regulation No.17/64/EEC^^of5
February I964 ontheconditions forgranting aidfrom theEuropean Agricultural
л1
Guidance andGuarantee Fund ,aslast amended byRegulation (EEC)No.2684 /74 »
should beraised to45$5 whereas ,however ,itisonly inthecase ofcertain
projects that these difficulties justify aidbeing granted inexcess of257°
ofthetotal amount oftheinvestment |
Whereas provision should also bemade forthefinancial contribution bythe
beneficiary tovary according towhether thoproject relates tomarketing
structures ortoproduction structures ?
3)Whereas under Article 5oftheFinancial Regulation of25April 1973 appli­
cable tothegeneral budget oftheEuropean Communities (73/9l/CECA ,EEC ,
Euratom )appropriations committed forthefinancing ofprojects shall lapse
iftherelevant payments have notbeen made bytheendofacertain period ;
T-Jhereas provisions should bemade toensure asfaraspossible that appropri­
ations allocated for theimprovement oftheagricultural structure arenot
lost toagriculture }whereas ,therefore ,where itappears doubtful whether a
project orpart ofaproj ctwill becarried out ,th3aidshould ,after a
certain period ,becancelled orreduced andassigned toanother project ,thus
enabling theappropriations concerned tobeutilised within theperiod pre­
scribed bytheFinancial Regulation 5
l)O.J.No34127February 1264 ,p«586/64
2)O.J. NoL288 ,25October 1974 ,p.5
3)O.J. NoL116 ,1May1973 ,p.1

–4- 4605Ai/74
HAS ADOPTED THIS REGULATION :
Article 1
Thetext ofthefirst subparagraph ofArticle I8(l )ofRe"illation No.17/c4/EEC
isreplaced bythefollowing !
"Foragiven project ,inrelation totheinvestment made :
-thesubsidies granted bytheFund maynotexceed 25$»however ,inthecase
ofcertain projects satisfying therequirements ofArticle ll(l)(a )or(b)
subsidies ofupto45$naybegranted bytheFund }
-thefinancial contribution oftheparty benefiting from theimprovement
shall not beless than : •
–20$ ,inthecase ofprojects satisfying therequirements ofArticle
ll(l)(a )or(b),or
-38$ ,inthecase ofprojects satisfying therequirements ofArticle
ll(l)(c )or(d)".
Article 2
1.InArticle 22ofRegulation No.I7/64/EECanewparagraph 3asfollows is
inserted ?
"Without prejudice totheprinciples ofArticle 6(5)oftheFinancial Regulation ,
aidawarded bytheFund maybecancelled orreduced andthecorresponding credits
utilised tofinance other projects :
-ifthebeneficiary abandons theproject ,or,
-ifthebeneficiary ,contrary totheinformation ascontained inhis
application and setoutinthedecision togrant aid ,hasnotwithin two
years from thedate ofnotification ofthat decision commenced thework
furnished assurances sufficient toensure that theproject will becarried
out ,or
-ifthebeneficiary reduces theinvestment provided forinthedecision to
grant aid .
Adecision under thepreceding subparagraph tocancel orreduce aidshall be
taken inaccordance with theprocedure laid down inArticle 19(1 )|thedecision
shall bemade bytheCommission ,after consultation with theFund Committee on
thefinancial aspects .Thedecision shall benotified totheMember State con­
cerned and tothe beneficiaries ."
2. -Paragraph 3ofArticle 22ofRégulation No.I7/64/EECbecomes paragraph 4«

-5- 4605Ai/74
Article 3
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Conmurities ,
This Regulation shall "be "binding initsentirety anddirectly applicable in
all Member States .
Done atBrussels , Forthe Council
The President