COMVIISSION OF THE EUROPEAN COMMUNITIES 
C0MC93) 675 final 
Brussels, 14 December 1993 
Proposal for a 
COUNCIL RFfiULATION (EC) 
derogating from Regulation (EEC) No 1637/91 as regards the 
payment of compensation to milk producers for the 
reduction of reference quantities 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
In June 1993 the Council allocated a contribution of ECU 40 million to the 
financing of national programmes for the discontinuation of milk production in 
order to support the Member states' efforts in this field. In the present 
situation it is advisable to allow this contribution to be increased by the 
amount remaining available under the Community financing provided for the payment 
of compensation to all producers under Regulation (EEC) No 1637/91. 
1 
Draft 
COUNCIL REGULATION (EC.) No /9 3 
Of 
derogating from Regulation <EEC) No 1637/91 as regards tfae 
payment of compensation to milk producers for the 
reduction of reference quantities 
THE COUNCIL OF THE EUROPEAN «NION, 
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(^)f 
Whereas Regulation (EEC) No 1637/91<3), as amended by Regulation (EEC) No 
1188/92(4), introduces in particular a Community scheme to finance the 
definitive discontinuation of milk production and provides, where certain 
eligibility requirements are met, for compensation to be paid after the 
definitive discontinuation of all milk production not later than 31 March 1992; 
whereas that Regulation contains in its Annex a financial amount per Member 
State; 
Whereas Article 2(5) of Regulation (EEC) No 1637/91 provides that, in cases where 
the financial amounts are not entirely used up, the amount remaining available is 
to be used for the payment of compensation to all of the producers whose 
reference quantity has been reduced; whereas in certain Member States, this 
provision has prevented Community financing from continuing to be allocated to 
the scheme for the definitive discontinuation of milk production; 
(1) OJ No 
(2) OJ No 
(3) OJ No L 150, 15.6.1991, p. 30 
(4) OJ No L 124, 9.5.1992, p. 1. 
I 
Whereas in Regulation (EEC) No 3950/92 establishing an additional levy in the 
milk and milk products sector(-*), as last amended by Council Regulation (EEC) No 
1560/93(6), the Council allocated a contribution of ECU 40 million to the 
national programmes for the definitive discontinuation of milk production; 
whereas the present situation requires, in several respects, that the national 
reserve be replenished; whereas, as a result, provision should be made for the 
possibility of derogating from Article 2(5) of Regulation (EEC) No 1637/91 in 
order to re-allocate to the national programmes for the definitive 
discontinuation of milk production the amount remaining available under Community 
financing provided for the payment of compensation to all producers, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Notwithstanding the first subparagraph of Article 2(5) of Regulation (EEC) 
No 1637/91, the Member States concerned may also use the amounts remaining 
available to pay, in accordance with the first indent of the first subparagraph 
of Article 8 of Regulation (EEC) No 3950/92 and at the request of interested 
producers, compensation the maximum amount of which that may be covered by 
Community financing shall be ECU 10 per 100 kilograms and per year. The 
quantities thus freed shall be re-allocated to the producers referred to in 
Article 1 of Regulation (EEC) No 1637/91, unless they elect to receive the 
compensation as originally provided for in the first subparagraph of Article 2(5) 
of that Regulation. 
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. 
Done at Brussels, For the Council 
(5) OJ No L 405, 31.12.1992, p. 1 
(6) OJ No L 154, 25.6.1993, p. 30 
T 
FINANCIAL STATEMENT 
1. BUDGET HEADING: B1-2065 APPROPRIATIONS: ECU 314 million 
2. TITLE: Proposal for a Council Regulation derogating fro» Regulation (EEC) No 1637/91 as regards 
payment of compensation to milk producers for the reduction ef reference quantities 
3. LEGAL BASIS: Article 43 of the Treaty 
4. AIMS OF PROJECT: 
To make provision for the possibility of derogating from Article 2(5) of Regulation (EEC) No 1637/91 
in order to re-allocate the amount remaining available under Community financing to national programmes 
for the definitive discontinuation of milk production 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (RE FUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
• OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE Period of 12 months 
(ECU m) Current Financial Year 
1994 
(ECU m) Following Financial Year 
1995 
(ECU m) 
1996 1997 1998 1999 
5.2 METHOD Of CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YESxxx 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
COMMENTS: 
Since it introduces the possibility of reallocating funds already provided for, the measure has no 
effect on the budget. 
V 
EN ISSN 0254-1475 
COM(93) 675 final 
DOCUMENTS 
03 
Catalogue number : CB-CO-93-729-EN-C 
ISBN 92-77-62923-1 
O&ce for Officiai Publications of the European Communities 
L-2985 Luxembourg 
£