ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)316
Vol.1978/0112

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)316 final
Brussels,30june1978
Proposalfora
COUNCILREGULATION (EEC)
providingforanaidfordegermingmaize^
C0MC78)316final

EXPLANATORY MEMORANDUM
Atitsmeetingof8–12May1978,theCouncilnoted,thattheCommission
intended ,toexaminethepossibilityofgrantinganaid.forthedegemination
ofcorn,withtheexceptionofdegeminsttioncarried ,outwithintheframework
ofthestarchindustry,andifiappropriate ,topresentproposalstotheCouncil
before1July1978.ThisintentionwasreiteratedbytheCommissionatthe
Councilmeetingof20June1978.
Inspiteofthelackofavailabletime,theCommissionhasexaminedthe
situationontheCommunitycornoilmarket,andhasconcludedthatthemarket
ischaracterized byastrongdemandforthisoil,whichissoughtbyconsumers
becauseofitsquality,andbyalackofsupplyoftherawmaterial(corngerms,-
fromwhichtheoilisextracted). ..
MostofthecornusedintheCommunityisnotfirstdegerminated ."Moreover,
giventhesizeableinvestmentwhichwouldbenecessaryandthecurrentcosts
ofdegermination ,itisnotpossibletoanticipateavailibilityofcornoil
ontheCommunitymp„rketunlessmeasuresofencouragement aretaken.
Finally,itshouldbepointedoutthattheCoomunityalreadyimportsthesmall
quantityofcornoilavailableontheworldmarket..
Comsumptionofcornoilcurrentlyamountstosome130000tannuallyinthe
Community,whichrepresentsonly3%oftotalconsumptionofvegetableoils
excludingoliveoil. -
Fromtheabovepointsitcanbededucedthatsuppliesofcornoilwouldbe
increasedintheCommunitywithouteitherdisturbingthemarketorchanging
significantly theglobalbalancesheetfortheCommunityforvegetableoils.
However,itshouldnotbeforgottenthatsomeindustrieswhichcurrentlycarry
outthedegermination ofcornalreadybenefitfromanoilsystem(starch,corn
groatsfor.breweries).Itshouldalsoberecalledthatitsisdifficulttoestimate
whatquantitiesofcornoilcouldbeabsorbedbytheCommujciitymarketwithout
causingdifficulties . '-
TheCommissionthereforeconsidersthatwhileanaidforcorndegermination appears
tobeeconomicallyjustifiedinviewofthecurrentmarketsituation,-itshould
bereservedfortheseindustrieswhichdonotbenefitalreadyfromaCommunity
aidsystemandshouldbelimitedtoanamountwhichwouldnotbelikelytogive
usetosinexcessiveincreaseoftheproductioninquestion.•
Thelevelofaidproposedtakesaccountoftheobjectivespursued,thecostof
aegermination ,andtheeffectofthesupportsysteminothersectorswhex-e

degermination iscarried out .
Inorder toassess theaffectivenass ofthis system itisproposed tolimit
itsperiod ofapplication tothree years .
Λ

Prooosal fnr a
COUNCIL REGULATION (EEC )
providing foranaidfordeger ming rr.aize
TH3COUNCIL OFT5EEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Article 43thereof .
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament ^, - -
Having regard tothe Opinion oftheEconomic andSocial Committee ,
Whereas maize germ oil isingreat demand ontheCommunity seed oil market ;
whereas available supplies ofmaize germ areatpresent considerably
lower than thequantity that could "beused intheCommunity ;whereas in
order toimpress theCommunity market supply theuseofmaize germ forproducing
oilshould "beencouraged "byproviding forthegranting ofanaid "based onthe
cost ofdegerming ;
Whereas this system ofaidshould belimited tomaize germ towhich the
support measures laid down inArticle ll(l )ofCouncil Regulation (EEC)'No
2727/75of29October 1975onthecommon organization ofthemarket incereals^
donotapply ;
Whereas this system ofaidshould apply onty for aperiod long enough for its
effectivenes sto "beassessed ;
Whereas theexpenditure incurred "byMember States asaresult oftheobligations
under this Regulation will beborne bytheCommunity ,in
accordance with Articles 2and3ofCouncil Regulation (EEC)No729/70of
C'A
21April 1970 onthefinancing ofthecommon agricultural policy HJ,aslast
amended byRegulation (SEC)No2788/72^,
HAS ADOPTED THIS REGULATION :
Q)0JNo
C2)CJNo
(3)0JNoL281,1.11.1975 ,P.1.
(4)CJNoL94,28.4.1970 ,p.13.
(5)0JNoL295 »30.12.1972 ,p.1.

-2-
Article 1
1. Daring theperiod 1January 1979 "to31December 1981 aidshall hegranted for
jnaize germ faL.li'ng within subheading 11.02 GIIoftheCommon Customs
Tariff toheused intheCommunity foroilproduction .Aid shall not
•however hegiven formaize germ which iseligible fortherefund
under Article 11(1 )ofRegulation (EEC )No2727 /75.
2,. Not later than 31December 1981 ,the Council acting byqualified majority
onaproposal from theCommission shall decide whether tocontinue ,
and ,ifnecessary ,whether toamend ,thesystem ofaid .
Article 2
The amount ofthe «.idshall be1.7 units ofaccount per100 kilograms ofmaize germ .
Article 3
1. Theaidshall hegranted toundertaki ngswhich degerm maize .
2. Theaid shall hegranted formaize germ removed during theperiod
referred toin Article 1.
Article 4
Member States shall introduce acontrol system designed toensure that !
i
aidisgranted only .to,undertakings entitled toit. c
I
• , i
The said control system shall ensure that ,when germ leaves adegerming
plant intheunaltered state ,theMember State concerned shall ensure
that itisprocessed toproduce oilinanoilmill' Located inthe
\
""Community .
1
Article 5 - i
TheCouncil ,acting byqualified majority onaproposal from theCommission ,
shall adopts ,
–general rules onthegranting ofaid
–general rules onthechecking ofentitlement ofaid .
Article 6 i
Detailed rules fortheapplication ofthis Regulation shall beadopted in
I

accordancewiththeprocedurelaiddowninArticle26of-Regulation
{EEC)No2727/75withthatlaiddowninArticle38ofCouncilRegulation
NoI36/66/EECof22September1^66ontheestablishmentofacommonorganization
ofthemarketinoilsandfats•
Article7
ThisRegulationshallenterintoforceonthethirddayfollowingits
publicationintheOfficialJournaloftheEuropeanCommunities.
It:'shallapplywitheffectfrom1January1979.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
MemberStates.
Doneat FortheCouncil
• <
(1)0JNo172,30.9.1966.p.3025

FiftlA^GSAL STATEMENT
» 23.6.1978
1.BUDGET LIKE CONCERNED IChap .63 CRKDITS :
2.ACTION iDraft Counci lRegulation providing foranaid formaize degerming
3*ÎJ5GAI# BAJIS S
4»OBJECTIVES lArt .43ofthe Treaty
Encourage maize degerming fortheproduction ofoil
5.FINANCIAL CONSEQUENCE
5.0EXPENDITURE
–CHARGED TOTKB ECBUDGET
@8519 BSTINTERVENTI ONS)
«ssasa BB qmm
££35£1£ΒPERIOD OP12MONTHS
1,1-1,5MEUACURRENT FINANCIAL TEAR
(13FOLLOWINC FINANCIAL YEAR
(1979 )
1,1MEUA
YEAR ••• »••• -YSAÍÍ •••••• ••••
5.0.1 PLURIANNUAL PATTE8H OPEXPENDITURE . 1,1MEUA 1,3MEUA
5-x.i PKsaflSMfissîaifittgiaBSBsaTEAH ....^ VSl .
1,5MEUA
5.2METHOD OFCALCULATION
Production of
corn germs
receiving aid1979 =60000 tx17ua/t=1020000ua=1,1MEUA -
1980 =70000 tx17ua/t=1190000 ua=1,3MEUA
1981 =80000 tx17ua/t=1360000ua=1,5MEUA
6.0FINANCING POSSIBLE WITH CREDITS INSCRIBED INRELEVANT CHAPTEROPCURRENT BUDCBP ? E&S/NO
6.1 Ε&ϋΒ&ΞΒ
6.3 CREDITS TOBEWRITTEN INTO FUTURE BUDGETS ? YESfla
COKKENTS I
.Aid Limited tothree vears -terminates 31.12.1981
(1)Measure enters into force on1.1.1978