COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 441 final 
Brussels, 21.10.1994 
Proposal for a 
CQUNCIL REGULATION (EC) 
on aid which Norway, Austria and Finland may grant on 
stocks held by private operators on 1 January 1995 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
I. Introduction 
The transitional arrangements provided for in the Act of Accession of 
Norway, Austria, Finland and Sweden are based on the application of the CAP 
to the new Member States in the same way as to the present Member States 
from the first day of accession. 
Contrary to the arrangements in all previous Acts of Accession, this Act 
involves neither the progressive alignment of the agricultural prices in the 
new Member States on the common prices nor the abolition in stages of 
customs duties, other import charges, quantitative restrictions and measures 
having equivalent effect in trade between the present and the new Member 
States. The alignment will take place at one sweep on 1 January 1995. 
Similarly, in trade with third countries, the new Member States will apply 
as from that date the import charges applied by the other Member States. 
As a result of the arrangements thus introduced in Norway, Austria and 
Finland, the prices of most agricultural products, which were higher than 
those applying in the Community in 1994, should fall to the level of the 
latter in 1995. 
As a result, operators holding stocks in the three countries will suffer ' 
prejudice, which Article 150 of Act of Accession seeks to make good by 
providing that the Council, acting by a qualified majority on a proposal 
from the Commission, may permit the new Member States to grant aid equal at 
most to the difference in the abovementioned prices to persons holding 
stocks. 
II. Main points in the proposal 
In the appended proposal drawn up in accordance with the abovementioned 
provisions, the Commission follows the following guidelines: 
1. The authorization to grant aid must be restricted to those new Members 
where prices prior to accession were higher than the common prices (as 
explained in I), namely Norway, Austria and Finland, Sweden, where prices 
for agricultural products do not differ from the common prices, should 
accordingly be excluded; 
2. This authorization should apply to live animals and products which may be 
in storage in the new Member States on 1 January 1995. In accordance with 
normal CAP practice, compensation for products derived from such products 
should, where possible, be calculated by reference to the difference in 
prices of the basic agricultural products from which they are derived. 
A-
The Commission recognizes, however, that the latter approach cannot 
reasonably be applied to all processed products and that in certain cases 
(e.g. sugar) it is more reasonable to calculate the aid on the basis of 
the difference in the prices for the processed product itself. 
In the case of the most important agricultural products, it proposes to 
solve these problems by reference to a list of products showing the 
products on which the maximum aid for products derived therefrom is to be 
calculated. However, aid may also be granted on other product groups. 
3. The maximum aid is to be fixed in terms of the reduction in the wholesale 
prices or the prices at any other stage constituting the first stage of 
marketing in the three new Member States in question for a period which 
those Member States consider representative of the effects of the 
application of the Treaty of Accession on prices. 
Nevertheless, the Commission considers that, with a view to 
simplification, a calculation based on the prices as subsidized in the 
new Member States prior to accession and/or the prices as subsidized in 
the Community could be used where such subsidies exist. 
4. The maximum aid thus defined may bear interest which cannot exceed the 
normal market rate for the country in question for the period between 
1 January and the date of payment of the aid. The Commission considers 
that payment of interest is implicit in the idea of compensation for the 
prejudice suffered at a particular time. 
III. Other points in the proposal 
The other points in the proposal call for less comment. They may be 
summarized as follows : 
overcompensation and receipt in combination with aid provided for in 
Article 138 of Act of Accession are explicitly ruled out; 
aid is ruled out in the case of speculative stocks; 
aid may also be granted on products covered by the Regulation where they 
come from non-member countries or other Member States and are in free 
circulation on 1 January 1995 in Norway, Austria or Finland, but 
excluding products on which the applicable impprt charges have not been 
paid; 
the arrangements are to be implemented and the detailed rules for their 
application drafted by the new Member States themselves subject, however, 
to a procedure for notifying the Commission and for the latter to be able 
to make observations. 
Lastly, the Commission stresses that as the aid is financed solely from 
national funds, this proposal has no financial impact on the budget of the 
European Union. 
Mindful of the importance and urgency of the appended proposal for Norway, 
Austria and Finland and of the need to send a signal quickly to operators in 
those countries on the subject, the Commission calls on the Council to act 
on this proposal in the very near future. 
3 
Proposal 
for a 
COUNCIL REGULATION 
on aid which Norway, Austria and Finland may grant on stocks 
held by private operators on 1 January 1995 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to Treaty establishing the European Community, 
Having regard to the Act of Accession of Norway, Austria, Finland and 
Sweden, and in particular Article 150(3) thereof, 
Having regard to the proposal from the Commission, 
Whereas, in accordance with Article 150 of the Act of Accession, the 
Council, acting by a qualified majority on a proposal from the Commission, 
may make provision, under certain conditions, for national aid, 
corresponding at most to the difference between the price recorded in a new 
Member State prior to accession and that resulting from the application of 
the Treaty of Accession, to be granted to private operators holding, on 
1 January 1995, stocks of basic agricultural products or products processed 
therefrom; 
Whereas the abovementioned difference in prices may be observed in Norway, 
Austria and Finland only, prices in Sweden showing no difference with the 
common prices; 
Whereas it emerges from the abovementioned provision of the Act of Accession 
that, apart from specifying the maximum aid which may be granted and certain 
conditions covering the granting thereof, the Community measures 
contemplated should simply lay down a general framework within which the 
three new Member States in question, which are to bear the financial 
liability therefor, will have full latitude to make their decisions; 
Whereas, in accordance with that provision, the product groups concerned 
cover basic products and products processed therefrom; whereas, while live 
animals should be included, this Regulation should permit aid to be granted 
on any product which may be in storage in the three new Member States 
referred to above on 1 January 1995; 
Whereas the maximum aid on live animals and basic products must be equal to 
the fall in prices recorded in the new Member States as a result of the 
application of the Treaty of Accession; whereas, however, those Member 
States should be permitted to determine the period during which that fall 
has occurred and to make provision, with a view to simplification, for the 
maximum aid to be calculated on the basis of the institutional prices where 
such prices exist or have existed; 
tf 
Whereas, in accordance with the general practice of the CAP, the maximum aid 
on processed products must be based as far as possible on the level laid 
down for the basic products; whereas, however, the difficulty in applying 
this method in certain cases (and in particular where the basic product 
cannot be stocked or has no substantial impact on the prices of the 
processed products) means that the aid is to be calculated in those cases on 
the basis of the fall in prices for the processed products themselves and 
therefore makes it appropriate to drawn up a list specifying,for the most 
important agreicultural sectors, the products on which the maximum aid is to 
be calculated for products derived therefrom; whereas, however, provision 
should be made for the aid to be granted on other products too; 
Whereas the new Member States should be free to consider as part of the 
compensation provided for herein payment of interest at a rate equal at most 
to the normal rate on the market in the new Member States in question for 
the period between 1 January 1995 and the date of payment of the aid; 
Whereas the other conditions to be laid down must prevent any risk of 
overcompensation and of receipt in combination with other aid provided for 
in the Act of Accession and should rule out the granting of the aid on 
speculative stocks and products imported into the new Member States prior to 
1 January 1995 where the applicable import charges have not been paid; 
Whereas, subject to the abovementioned limits and conditions, the new Member 
States should be allowed to lay down the detailed rules for the application 
of the arrangements, providing that the latter are submitted to the 
Commission under a procedure reconciling the interests of suitable 
monitoring at Community level with the need for swift action in this area by 
the new Member States, 
6 
HAé ADOPTED THIS REGULATION: 
Article 1 
In order to offset, in full or in part, any fall in prices recorded as a 
result of the application of the Treaty of Accession, Norway, Austria and 
Finland may grant aid to private operators (producers, processors and 
traders) who, at 00.00 hours on 1 January 1995, own: 
(a) live animals covered by Chapter I of the CCT; 
(b) stocks of agricultural products listed in Annex I; 
(c) stocks of products derived from the products referred to in (b); 
(d) stocks of products listed in Annex II to the EC Treaty other than 
those referred to in (a) , (b) or (c) and products processed 
therefrom. 
Article 2 
1. The aid provided for in Article 1 may not exceed: 
(a) in the case of the products referred to in Article 1(a), (b) and 
(di, the fall in prices recorded in Norway, Austria or Finland, 
at the wholesale stage or any other stage constituting the first 
stage of marketing of the product in question, and 
for a period: 
considered by those States as representative of the effects of 
the application of the Treaty of Accession on prices, and 
not extending beyond the storage life of the product after the 
date of accession; 
* 
(b> in the case of products referred to in Article 1(c) and those 
processed from the products listed in Annex II to the EC Treaty as 
referred to in Article ltd), the maximum laid down in (a) tor t hi-
products from which they are derived, multiplied by: 
- a coefficient reflecting value in the case of meat; 
a processing coefficient reflecting the impact of the products from 
which they are derived in the case of other product groups. 
The coefficients provided for in (b) shall be determined by the Member State 
in question. • 
it 
t i: 
» j: 
S 
2. The maximum provided for in paragraph 1(a) may be replaced: 
in the case of products subject, prior to accession, in the Community and 
in Norway, Austria or Finland, to a price support system, by the 
difference between the prices as subsidized in December 1994 in the 
abovementioned Member States and the prices as subsidized by the 
Community in January 1995; 
in the case of products subject, prior to accession, to a price support 
system in Norway, Austria or Finland only, by the difference between the 
prices as subsidized in those Member States in December 1994 and the 
prices applying in those Member States at the marketing stage referred to 
in the first indent of paragraph 1(a) at a time in 1995 which they 
consider representative for the purposes of calculating the fall in 
prices as a result of the application of the Treaty of Accession; 
in the case of products which, prior to accession, were subject to a 
price support system in the Community but not in Norway, Austria or 
Finland, by the difference between the prices recorded in new Member 
States at the marketing stage referred to in the first indent of 
paragraph 1 (a) at a time in 1994 which they consider representative for 
the purposes of calculating the fall in prices as a result of the 
application of the Treaty of Accession and the prices as subsidized in 
the Community in January 1995. 
3. The maximums provided for in paragraphs 1 and 2 shall not preclude the 
right of the Member State in question to increase the aid by interest at 
a rate equal at most to the normal rate on the market in that Member 
State for the period between 1 January 1995 and the date of payment. 
3 
Article 3 
1. Products as referred to in Article 9(2) of the EC Treaty which are on 
the territory of Norway, Austria or Finland on 1 January 1995 shall be 
deemed to be stocks for the purposes of this Regulation. 
However, products in free circulation on the territory of those Member 
States shall qualify for the aid provided for herein only where import 
thereof took place after the applicable customs duties and charges having 
an equivalent effect were collected. 
2. Norway, Austria and Finland shall ensure that the aid provided for in 
Article li 
does not exceed the amount necessary to offset the fall in prices 
recorded as a result of the application of Treaty of Accession; 
is deducted from the aid provided for in Article 138 of the Act of 
Accession where the latter is granted on the same products, as such or 
after processing; 
is not granted on speculative stocks. 
.Article 4 
1. With a view to the application of this Regulation, Norway, Austria and 
Finland: 
(a) may undertake an inventory of stocks;; 
I#-
(b) shall record prices as provided for in Article 2(1) (a) on the basis, 
where possible, of quality standards comparable with those provided 
for in Community regulations; 
(c) shall adopt detailed rules on the granting of the aid provided for 
herein and on verification thereof. Such detailed rules shall 
include in particular suitable measures to prevent the aid being 
granted on speculative stocks. 
2. Before 31 March 1995, Norway, Austria and Finland shall notify the 
Commission of the quantities which are likely to qualify for the aid 
provided for herein. 
Article 5 
1. Norway, Austria and Finland shall forward to the Commission the draft 
measures to introduce the aids provided for herein. At the same time they 
shall specify: 
- the rate of aid contemplated; 
- the factors serving to determine it. 
2. The measures provided for in paragraph 1 may not enter into force before 
they are approved by the Commission. The Commission may make such 
approval subject to any condition it considers appropriate with a view to 
achieving the objectives and observing the provisions of this Regulation. 
3. Where, within one month of receipt of the draft measure referred to in 
paragraph 1, the Commission has not expressed any observations with 
regard thereto, those measures may be implemented. 
* 
Article € 
This Regulation snail enter into force on 1 January 1995. 
i 
Tnis Regulation shall be binding in its entirety and directly applicable in 
all Ifenber States. 
at Brussels, 
For tfee Council 
ANNEX 
CN code Description 
02011000 
and 
02021000 
02031110 
and 
02031124 
02041000 
and 
02043000 
02042100 
or 
02044100 
02045011 
and 
02045051 
02071015 
and 
02072210 
02071031 
and 
02072210 I. MEAT: 
A. Meat of bovine animals 
Carcases and half-carcases of bovine animals, fresh, 
chilled or frozen 
B. Meat of swine 
Carcases and half-carcases of domestic swine, fresh, 
chilled or frozen 
C. Meat of sheep or goats 
Carcases and half-carcases of lamb, fresh, chilled or 
frozen 
Carcases or half-carcases of sheep, fresh, chilled or 
frozen 
Carcases and half-carcases of goats, fresh, chilled or 
frozen 
D. Poultrymeat 
"70% chickens", fresh, chilled or frozen 
"80% turkeys", fresh, chilled or frozen 
- i\ 
CN code Description 
"70% ducks", fresh, chilled or frozen 
**75% geese% fresh* chilled or frozen 
E~ Reindeer 
Meat of reindeer 
II. EGGS 
Birdsr eggs in shell 
III- BEEUE Mm MILK PRODUCTS 
Long-life «ilk and créa» 
Milk in powder 
Butter 
IV. EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS 
Potatoes, fresh or chilled 
Dried leguminous vegetables, in particular peas and field 
beans 
V. EDIBLE FRESH AND PROCESSED FRUIT AND VEGETABLES 
Products listed in Article 1 of Council Regulation (EECÏ n* 1&35/72 of 
18.5.1972 on the common organisation of the markets of fruit and 
vegetables^* as last amended by Regulation CECI n* 3669/SK3 ^2* 02071055 
and 
02072311 
©2 ©71 ©7 3 
and 
02081090 
04Q7Q<J3Q 
ex G4Û1 
04021099 
G405QO 
©7ffl 
Q713 
Ut ©ffcJ. Bo Uft of 20f.5.ÏS?*2J» p. 1 
I2Ï Or.^ no 338 of 3I.I2.1S»3„ pv 36 
- 1«-
Products listed in Article 1 of Council Regulation (EEC) No 426/86 of 24 
February 1986 on the common organization of the market in products processed 
from fruit and vegetables^', as last amended by Commission Regulation (EC) 
No 1490/94 (4) . 
VI. CEREALS 
100110 
100190 
10020000 
100300 
100400 
1005 Durum wheat 
Wheat and meslin other than durum wheat 
Rye 
Barley 
Oats 
Maize (corn) 
VII. OILSEEDS AND OTHER PRODUCTS FALLING WITHIN CHAPTER 12 
OF THE CCT 
120100 
120500 
120600 
1209 
1210 
12092950 
1213 
ex 1214 Soya beans 
Rape or colza seeds 
Sunflower seeds 
Seeds, fruit and spores, of a kind used for sowing 
Hop cones, fresh or dried, whether or not ground, powdered 
or in the form of pellets; lupulin 
Lupine seed 
Cereal straw and husks, unprepared 
Swedes, mangolds, fodder roots, hay, clover, sainfoin, 
forage kale, lupines, vetches and similar forage products 
VIII.SUGAR 
17011110 
17011210 
17019910 Raw cane sugar for refining 
Raw beet sugar for refining 
White sugar 
IX.- WINE 
2204^21 ç 
and 
;2204£&-Wine of fresh grapes 
(3) OJ No L 49, 27.2.1986, p. 1. 
(4) OJ No L 161, 26.6.1994, p. 13 
*• 
ISSN 0254-1475 
COM(94) 441 final 
DOCUMENTS 
EN 11 «3 
Catalogue number : CB-CO-94-464-EN-C 
ISBN 92-77-81174-9 
Office for Official Publications of the European Conunonities 
L-2985 Luxembourg 
tr