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 Council is asked to adopt the attached proposal for a Regulation amending Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organisation of the market in hops.

The purpose of the proposal is to extend for two years, i.e. up to and including the 2002 harvest, the current flat-rate aid of EUR 480/ha to hops producers.

Extending the current system for two years will permit decisions on aid to producers to be taken at the same time as decisions on special aid measures relating to temporary set-aside or permanent grubbing-up.

At the end of that period the Commission will present a report which will also cover the special measures and will make suitable proposals, taking account of the impact on the sector of the accession to the Union of certain applicant countries which are significant producers of hops.

2000/0330 (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 Articles 36 and 37 thereof,

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

[1] OJ C ...

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

[2] OJ C ...

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

[3] OJ C ...

Whereas:

(1) Article 12(5) of Council Regulation (EEC) No 1696/71 [4] stipulates that the amount of aid for hops produced in the Community is fixed for a period of five years from the 1996 to the 2000 harvests.

[4] OJ L 175, 4.8.1971, p. 1. -Regulation as last amended by Regulation (EC) No 191/2000 (OJ L 23, 28.1.2000, p. 4.).

(2) As laid down in Article 18 of the above Regulation, the Commission presented to the Council a report assessing the hops sector in the European Union. The report shows that production is gradually being adapted to the requirements of demand, from the points of view of quantity, by means of a reduction in land under hops and in quantities produced, and quality, by moving towards the varieties most in demand by the brewing industry.

(3) In view of current developments in the sector and of the expiry of the period of application of the special measures in 2002, and taking account of the accession to the European Union of certain major producer countries, the amount of aid currently valid should be continued for a period of two years and the overall operation of the common organisation of the market should be reviewed before 31 December 2002.

(4) The measures required to implement this Regulation are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [5], so they should be adopted in accordance with the management procedure laid down in Article 4 of that Decision,

[5] OJ L 184, 17.7.1999, p. 23.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 1696/71 is amended as follows:

1. Article 12(5)(a) is replaced by the following:

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

2. Article 12(5)(d) is replaced by the following:

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

3. In the second paragraph of Article 18, "1 September 2000" is replaced by "31 December 2002".

4. Article 19 is deleted.

5. Article 20 is replaced by the following:

"Article 20

1. The Commission shall be assisted by a management committee, the Management Committee for Hops, composed of representatives of the Member States and chaired by the representative of the Commission.

2. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply and Article 7(3) of that Decision shall be complied with.

3. The period laid down in Article 4(3) of Decision 1999/468/EC shall be one month."

Article 2

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

It shall apply from 1 January 2001.

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>