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COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 176 final 
Brussels, 5 May 1993 
mm m 
Proposal for a 
COUNCIL REGULATION rEECÏ 
HH transferring the financing of certain aids provided 
for in Council Regulations (EEC) Nos 1096/88 and 2328/91 
from the EAGGF Guidance Section to the EAGGF Guarantee Section 
and amending Regulation (EEC) No 2328/91 as regards part-financing 
of the system to encourage the set-aside of arable land 
(presented by the Commission) 
A 
EXPLANATORY MEMORANDUM 
In its communication on the Community's finances between now and 1997 
(COM(92) 2001 final of 10 March 1992), the Commission proposed transferring 
certain types of expenditure currently financed under heading 2 of the 
financial perspective to heading 1, the EAGGF Guarantee Section guideline. 
The transfer requires an amendment to the budget nomenclature, which has 
already been done in the draft budget for 1993, as well as amendments to 
the legal bases concerned. This proposal concerns this second stage. 
In the case of the multiannual set-aside scheme provided for in Title I of 
Regulation (EEC) No 2328/9l(1), half of the expenditure is currently 
charged to the aforementioned heading No 2. Under the proposed amendment, 
all expenditure incurred by the Member States from 16 November 1992 on is 
to be charged to the EAGGF Guarantee Section. The proposed date 
corresponds to the beginning of the accounting period for expenditure 
eligible under the EAGGF Guarantee Section and chargeable to the 1993 
budget. It does not involve any changes in the accounting practices of the 
Member States because the financial arrangements currently used are those 
of the EAGGF Guarantee Section. 
In the case of measures which have been replaced by measures accompanying 
the reform of the CAP, the position differs in two respects: 
1. The rules and regulations in question were repealed when the new 
Regulations (EEC) No 2078/92<2), No 2079/92<3) and No 2080/92<4> 
entered into force. An ad-hoc regulation on financing alone is 
accordingly proposed. 
2. The current financial arrangements are those applicable to the EAGGF 
Guidance Section, which means that eligible expenditure is partially 
reimbursed in the year following that in which it was actually incurred. 
To facilitate administration by the Member States, provision should 
therefore be made to move to the EAGGF Guarantee Section at the start of 
the calendar year, i.e. 1 January 1993. 
In the case of this second expenditure category, standardizing the funding 
arrangements for all similar measures (early retirement, environment and 
afforestation of agricultural land) should greatly simplify administration 
for the Member States. 
(1) OJ No L 218, 6.8.1991, p. 1. 
(2) OJ No L 215, 30.7.1992, p. 85. 
(3) OJ No L 215, 30.7.1992, p. 91. 
(4) OJ No L 215, 30.7.1992, p. 96. 
I 
COUNCIL REGULATION (EEC) No /93 
of 1993 
* transferring the financing of certain aids provided 
for in Council Regulations (EEC) Nos 1096/88 and 2328/91 
from the EAGGF Guidance Section to the EAGGF Guarantee Section 
and amending Regulation (EEC) No 2328/91 as regards part-financing 
of the system to encourage the set-aside of arable land 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 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 new schemes financed by the EAGGF Guarantee Section were introduced by 
Council Regulations (EEC) Nos 2078/92 of 30 June 1992 on agricultural production 
methods compatible with the requirements of the protection of the environment and 
the maintenance of the countryside^) and 2080/92 of 30 June 1992 instituting a 
Community aid scheme for forestry measures in agriculture(2) to replace the aid 
schemes provided for in Titles II, VII and VIII of council Regulation (EEC) 
No 2328/91 of 15 July 1991 on improving the efficiency of agricultural 
stuctures(3); 
(1) OJ No L 215, 30.7.1992, p. 85. 
(2) OJ No L 215, 30.7.1992, p. 91. 
(3) OJ No L 218, 6.8.1991, p. 1. 
-h-
Whereas new schemes financed by the EAGGF Guarantee Section were introduced by 
Council Regulation (EEC) No 2079/92 of 30 June 1992 instituting a Community aid 
scheme for early retirement from farming^4) to replace the aid schemes provided 
for in Council Regulation (EEC) No 1096/88 of 25 April 1988 establishing a 
Community scheme to encourage the cessation of farming^5), 
Whereas the 1992 harvest is the last for which new applications may be made to 
participate in the set-aside scheme referred to in Article 2 of Council 
Regulation (EEC) 2328/91; whereas this scheme is financed equally by the 
Guarantee and Guidance Sections of the European Agricultural Guidance and 
Guarantee Fund (EAGGF); 
Whereas new forms of set-aside have been introduced by Council Regulations (EEC) 
No 1765/92 of 30 June 1992 establishing a support system for producers of certain 
arable crops^6^, No 2078/92 and No 2080/92; whereas these new forms of set-aside 
are financed by the Guarantee Section of the EAGGF; 
Whereas it transpires from the transitional provisions laid down for Article 11 
of Regulation (EEC) No 2078/92, Article 11 of Regulation (EEC) No 2079/92 and 
Article 8(1) of Regulation (EEC) No 2080/92 that expenditure may continue to 
arise under the old schemes provided for in Regulations (EEC) Nos 2328/91 and 
1096/88 after 1 January 1993; 
Whereas the transfer between the old and new schemes should be facilitated while 
preventing the simultaneous existence of two different administrative schemes; 
Whereas provision should therefore be made for financing of all expenditure on 
such measures effected by the Member States from 1 January 1993 by the EAGGF 
Guarantee Sect ion, 
(4) OJ No L 215, 30.7.1992, p. 91. 
(5) OJ No L 110, 29.4.1988, p. 1. 
(6) OJ No L 181, 1.7.1992, p. 12. 
-4-
Whereas all expenditure incurred by the Member States from 16 October 1992 on in 
respect of the various set-aside measures should be placed under the same heading 
in the financial perspective; whereas Regulation (EEC) No 2328/91 should be 
amended accordingly, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Expenditure incurred by the Member States from 1 January 1993 on schemes provided 
for in Titles II, VII and VIM of Regulation (EEC) No 2328/91 and in Regulation 
(EEC) No 1096/88 shall be eligible under the EAGGF Guarantee Section. 
Article 2 
Council Regulation (EEC) No 2328/91 is hereby amended as follows: 
1. The following sentence is added to the last subparagraph of Article 1(2): 
"However, for expenditure incurred by Member States on this scheme from 16 
October 1992 on, the Community contribution shall be covered in its entirety 
by the EAGGF Guarantee Section on the basis of the rates fixed pursuant to 
Article 31(2)." 
2. The fol lowing sentence is added to the second subparagraph of Article 31(1): 
"However, expenditure incurred by the Member States in respect of these 
measures from 16 Octobre 1992 on shall be eligible only under the Guarantee 
Section of the EAGGF." 
Article 3 
This Regulation shall enter into force on the third day following 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 
The President 
FINANCIAL STATEMENT 
for 
Draft Council Regulation 
transferring the financing from EAGGF Guidance to EAGGF Guarantee 
of certain aids provided for by 
Council Regulations (EEC) Nos. 1096/88 and 2328/91 
1. Budget heading; Bl-500 ; accompanying measures 
(1993 nomenclature) 
2. Legal basis ; Art. 43 of Treaty. 
3. Description; Move to the Guidance Section the financing of action under 
Regulations (EEC) Nos. 1096/88 and 2328/91 (Arts. 3, 21, 25 and 26) up to now 
met from the Guidance Section by virtue of Objectives 1 and 5a. 
4. For classification of expenditure; compulsory expenditure 
non-differentiated appropriations 
5. Nature of expenditure; Co-financing of eligible national expenditure. 
6. Implications for operating appropriations 
6.1. Calculation of total costs 
The above amounts are not new expenditure from the Community budget since 
the proposal is merely to move between headings of the financial 
perspectives expenditure already budgeted for under Community co-financing 
arrangements. They are new amounts for heading 1 of the financial 
perspectives following enlargement of its field of application as 
indicated in COM(92)2001. It should also be pointed out that the change 
will involve a shift in the time at which expenditure is charged to the 
Community budget. On average this will be nine and a half months earlier 
than before. 
The amounts are based on estimates of the commitments made and to be made 
by the Member states up to 31.12.1992 with financial implications at 
national level in 1993 and subsequent years. The Community contribution 
rates are unchanged. 
6.2. The indicative schedule of commitment and payment appropriations falling 
to the EAGGF Guarantee (in m of ecus) 
R. 2328/91 R. 1096/88 Total 
1993 29 26 55 
1994 34 19 53 
1995 33 15 48 
1996 25 14 39 
1997 _T_ 12. II 
Total '93-97' 128 84 212 
é 
FINANCIAL STATEMENT 
concerning 
the proposal for a Council Regulation amending Regulation (EEC) 
No 2328/91 as regards part-financing of the system to encourage 
the set-aside of arable land 
1. Budget heading involved 
Bl-400: conventional set-aside scheme 
3. Legal basis 
Article 43 of the EEC Treaty 
4. Description of operation 
The proposal involves charging all expenditure on the multiannual set-aside 
scheme to the Guarantee Section of the EAGGF alone from 16 October 1992 on, 
whereas before that date the scheme was funded in equal measure by the 
Guarantee and Guidance Sections. 
4. Classification of expenditure or revenue 
Compulsory expenditure 
5. Type of expenditure or revenue 
Part-financing of eligible national expenditure 
7. Financial impact on appropriations for operations 
The proposal will not have any impact on the Community budget. In accordance 
with the new financial perspectives proposed for 1993-99, it involves 
charging to heading 1 that part of the expenditure which was up to now 
charged to heading 2 of the financial perspectives. 
In the draft budget for 1993 a total of ECU 320 million (the entire Community 
contribution) has been entered in item Bl-400 of the EAGGF Guarantee Section 
to finance the measure. 
This expenditure will tail off between now and 1997 as the contracts expire 
and as some farmers possibly withdraw with a view to joining the new scheme 
pursuant to the provisions of Article 14 of Regulation (EEC) No 1765/92. 

? ISSN 0254-1475 
COM (93) 176 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-203-EN-C 
ISBN 92-77-55241-7 
Office for Official Publications of the European Communities 
L-2985 Luxembourg