ifc-COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92) 151 final 
Brussels, 13 April 1992 
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rase*'-; V^Jy-'" !'i-: 
IP Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1637/91 fixing compensation with regard 
to the reduction of the reference quantities referred to in 
Article 5c of Regulation (EEC) No 804/68 and compensation 
for the definitive discontinuation of milk production 
(presented by the Commission) 
ill 
EXPLANATORY MEMORANDUM 
Council Regulation (EEC) No 1637/91 Introduces In particular a Community scheme 
to fund the definitive discontinuation of milk production In order both to make 
it easier to reduce quantities of milk marketed in line with the 2% reduction in 
the total quantities decided for 1991/92 and to mobilize the quantities needed 
for the allocation of the SLOM II quotas. Council Regulation (EEC) No 1637/91 
thus allocates total funding allowing 3% of national total quantities to be freed 
thanks to compensation of ECU 10/100 kg per year while granting each Member State 
substantial latitude in using the funds. 
It also provides that the target reduction/mobilization of reference quantities 
may be achieved through compensation of less than ECU 10/100 kg or, where the 
total funds are not exhausted either because the Member State has decided not to 
implement the programme or because the programme has not met with the success 
anticipated, that the amounts available are allocated to producers whose 
reference quantities have been reduced and remain so, in the form of compensation 
of ECU 10/100 kg per year. 
However, in certain Member States the target reduction/mobilization has been 
attained and even exceeded with compensation of less than ECU 10/100 kg without 
the Community funds being exhausted. This proposal for a Regulation covers this 
eventuality, which was not anticipated, and proposes that the Member States be 
authorized in that event to continue the scheme for an additional six-month 
per iod. 
In addition, in view of the regional development needs in certain Member States 
and with a view to safeguarding structural adjustments and developments 
accomplished, this proposal grants the Member States the possibility of offering 
producers who have not been able to resume milk production at 1 April 1992 to 
apply within a short space of time for the compensation for the definitive 
discontinuation of milk production up to the financial ceiling allocated to those 
States. 
Proposal for a 
COUNCIL REGULATION (EEC) No /92 
Of 
amending Regulation (EEC) No 1637/91 fixing compensation with regard 
to the reduction of the reference quantities referred to in 
Article 5c of Regulation (EEC) No 804/68 and compensation 
for the definitive discontinuation of milk production 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the common 
organization of the market In milk and milk products*1), as last amended by 
Regulation (EEC) No 816/92*2>, and in particular Article 5c(6) thereof, 
Having regard to the proposal from the Commission*3^, 
Whereas Council Regulation (EEC) No 1637/91*4) Introduces In particular a 
Community scheme to finance the definitive discontinuation of milk production in 
respect of up to 3% of the guaranteed total quantities, deliveries and direct 
sales, 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 provides that 
the target reduction set by the Member State may be met by means of compensation 
of less than ECU 10 per 100 kg and per year; 
Whereas the target reduction has been reached, and even exceeded, In certain 
Member States by means of compensation of less than ECU 10 per 100 kg and per 
year without the available Community funds being exhausted; whereas, this being 
the case and so that the necessary structural adjustments can be continued, the 
Member States should be authorized to continue the scheme for the definitive 
discontinuation of milk production for a further six-month period; 
(1) OJ No L 148, 28.6.1968, p. 13. 
(2) OJ No L 86, 1.4.1992, p. 83. 
(3) OJ No C 
(4) 0J No L 150, 15.6.1991, p. 30. 
_ 2 -
y 
Whereas In addition, In view of the extension of the additional levy arrangements 
and of regional development needs in certain Member States, in order to safeguard 
the structural adjustments and developments the Member States should be granted 
the possibility of offering producers who have not resumed milk production at 
1 April 1992 the chance of applying for compensation, within the limits laid down 
In the Annex to Regulation (EEC) No 1637/91, for the definitive discontinuation 
of milk production provided for In Article 2 of that Regulation; whereas 
paragraph 5 of that Article should therefore be amended accordingly without, 
however, the consequences of these new provisions being Imposed on producers who 
elect to receive the compensation as originally provided for, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The following subparagraphs are hereby added to Article 2(5) of Regulation (EEC) 
NO 1637/91: 
"However, without prejudice to the first subparagraph, Member States may use the 
amounts available to continue the scheme referred to in paragraph 1 until 
30 September 1992 at the latest. In that case, Member States shall forward to 
the Commission the Information provided for in Article 4 before 31 December 1992. 
In addition, the Member States may offer producers who have not resumed milk 
production at 1 April 1992 the chance of submitting applications before 
1 June 1992 In accordance with this Article. The quantities thus freed shall be 
re-allocated in accordance with paragraph 4 unless the producers concerned elect 
to receive the compensation as originally provided for in the first subparagraph. 
In that case, the Member States shall include the additional information to be 
forwarded In accordance with Article 4 before 31 December 1992." 
3 -
Article 2 
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 
£ 
FINANCIAL STATEMENT 
DATT. 
1. BUDGET HEADING: Article 206 APPROPRIATIONS: ECU 871 ml 11 Ion 
2. TITLE: 
Proposal for a Council Regulation amending Regulation (EEC) ND 1637/91 fixing compensation with regard 
to the reduction of the reference quantities referred to in Article 5c of Regulation (EEC) ND 804/68 and 
compensation for the definitive discontinuation of milk production. 
3. LEGAL BASIS: Article 5c(6) of Regulation (EEC) No 804/68 
4. AIMS OF PROJECT: 
To extend possibilities for qualifying under the definitive discontinuation arrangements within the 
ceiling laid down. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/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 ml 11 ion Current Financial Year 
1992 
ECU ml 11 Ion Following Financial Year 
1993 
ECU ml 11 Ion 
1994 1995 1996 1997 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YES/ND 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
YES/ND 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
ND 
OBSERVATIONS: 
Since the measure extends the possibi I ities for qual ifying under the definitive discontinuation arrangements 
within the eel Iing laid down there is no additional expenditure over the budget. 
ISSN 0254-1475 
COM(92) 151 final 
DOCUMENTS 
EN 03 
Catalogue number: CB-CO-92-170-EN-C 
ISBN 92-77-43335-3 
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