Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 1696/71 on the common organisation of the market in hops

(presented by the Commission)

EXPLANATORY MEMORANDUM

The present proposal concerns a modification of Council regulation (EEC) n° 1696/71 aiming to extend the application of the production aid arrangement for hops for the harvest year 2004.

Indeed, the Commission has to submit an evaluation report to the Council by 31 December 2003, relating to all the provisions of the common market organisation. This report will consist of reform proposals which should not enter into force until 2005. Therefore, in a transition context, it is indispensable to provide for an extension of the Hops production aid arrangement of one year.

2003/0216 (CNS)

Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 1696/71 on the common organisation of the market in hops

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the third subparagraph of Article 37(2),

Having regard to the proposal from the Commission [1],

[1] OJ C ..., ..., p. ...

Having regard to the opinion of the European Parliament [2],

[2] OJ C ..., ..., p. ...

Having regard to the opinion of the European Economic and Social Committee [3],

[3] OJ C ..., ..., p. ...

Having regard to the opinion of the Committee of the Regions [4],

[4] OJ C ..., ..., p. ...

Whereas:

(1) Article 12(5)(a) of Council Regulation (EEC) No 1696/71 [5] fixes the aid per hectare for hops produced in the Community for a period of eight years, from the 1996 to the 2003 harvests.

[5] OJ L 175, 4.8.1971, p. 1. Regulation as last amended by Regulation (EC) No 1514/2001 (OJ L 201, 26.7.2001, p. 8.).

(2) The assessment report that the Commission must present to the Council by 31 December 2003 under the second paragraph of Article 18 of Regulation (EEC) No 1696/71, will cover all provisions relating to the common organisation of the market, in particular the production aid scheme. The assessment can be accompanied by proposals. It is advisable in this context to provide for a detailed debate of the entire sector. In order to ensure a thorough debate, the period for which the aid has been fixed should be extended by one year.

(3) A producer group can withhold up to 20% of the aid to finance special measures for adjusting to the market and the amounts withheld can accumulate for a period of three years. As it is proposed to extend the aid scheme for a year, the maximum accumulation period should also be extended for a year.

(4) Regulation (EEC) No 1696/71 should be amended as a result,

HAS ADOPTED THIS REGULATION:

Article 1

Article 12(5) of Regulation (EEC) No 1696/71 is hereby amended as follows:

1) point (a) is replaced by the following:

"(a) The aid per hectare for hops shall be the same for all groups of varieties. For nine years from the 1996 harvest it shall amount to EUR 480/ha."

2) point (d) is replaced by the following:

"(d) The aid withheld may be accumulated for a maximum period of four years; at the end of that period all aid withheld must have been spent."

Article 2

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

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

Done at Brussels,

For the Council

The President

>TABLE POSITION>