COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 07.05.1998 
COM(1998) 287 final 
COMMUNICATION FROM THE COMMISSION 
on compensation for certain producers of milk and milk products temporarily 
prevented from carrying on their trade ("SLOM producers") - follow-up to the 
implementation of Council Regulation (EEC) N° 2187/93 

COMMUNICATION FROM THE COMMISSION 
on compensation for certain producers of milk and milk products temporarily 
prevented from carrying on their trade ("SLOM producers") - follow-up to the 
implementation of Council Regulation (EEC) N° 2187/93 
1. On 28 April 1995, the Commission transmitted a communication (COM(95)I50 
final) to the Council on the implementation of Council Regulation (LLC) N° 
2187/93 ("the Regulation"), which was considered by the Special Committee on 
Agriculture at its 989th meeting on 6th June 1995. In addition to reporting on the 
execution of the Regulation, it proposed that the Commission should proceed to 
settle, on the same financial basis as the Regulation, the cases of certain categories of 
SLOM producers who had beeen unable or who had failed to take advantage of the 
provisions of the Regulation. These categories were : 
- producers who obtained a SLOM reference quantity as a result of legal action 
against national authorities after the cut-off date in the Regulation; 
- producers who failed to meet certain time-limits set out in the Regulation; 
- cases offeree majeure, or which should be treated as such. 
2. Following the approval given to this course of action at the above-mentioned 
meeting of the Special Committee on Agriculture, and the necessary information on 
the cases having subsequently been obtained from the Member States, the 
Commission approved a communication (SEC(96)987/2 and 3) on 5 June 1996 to 
implement the procedure to compensate these producers, which was referred to as 
the "clearing up" action. Under the procedure, offers of compensation were made by 
the Member States concerned to the producers identified as falling into the specific 
categories, which could be accepted within a time limit in full and final settlement of 
their claims as under the Regulation. Almost 200 further cases of SLOM producers 
were settled under the "clearing up" action. 
3. The communication to the Council of 1995 identified a further category of producers 
whose claims it had not been possible to settle under the Regulation, namely those 
who contested the legality of Article 8 of the Regulation relating to the application to 
the producers' claims of the provisions of Article 43 of the Statute of the Court of 
Justice on the limitation of actions, in its judgment of 16 April 1997 in the case T-
20/94 (Hartmann against Council and Commission), the Court of First Instance 
construed Article 43 of the Statute in a way which was entirely in conformity with 
the approach followed in Article 8 of the Regulation As a conséquence the legality 
of Article 8 of the Regulation must be considered as having been confirmed by this 
judgment. Accordingly a settlement of the llartmann-type cases could now be 
envisaged. The Commission considers to be Hartmann-type cases those cases in 
which 
- the applicant is a SLOM I or II produc«r and 
- the applicant had received an o&er of compensation pursuant to the Regulation 
and 
- the applicant refused to accept the offer not because of the amount of annual 
compensation laid down by the regulation but for the sole reason that, pursuant to 
the application of Article 8 of the Regulation concerning the time bar rules, the 
period for which compensation was offered had been reduced. 
It is estimated that there are about 55 producers in this group whose cases are 
pending before the Court of First Instance. It is proposed that the direct settlement 
of these claims should be carried out following a similar procedure to that under the 
"clearing up" action referred to in paragraph 2. 
4. The settlement would be based on the financial parameters of the Regulation, but the 
rate of interest to be paid would be adapted in order to avoid the consequence that 
this category of producers should benefit financially from having pursued their cases 
before the Court of First Instance. The Commission believes that the settlement of 
these cases is appropriate given that the only point of the Regulation contested was 
the application of the limitation rules, and that it will result in a significant further 
reduction in the remaining outstanding claims. 
It is foreseen that within the framework of this further "clearing-up" action, it would 
also be possible to take into account a few additional cases of producers who 
received a SLOM reference quantity after the cut off date in the first "clearing up" 
action, as well as some remaining "force majeure" type cases. There are about 10 
such cases to the knowledge of the Commission. 
5. Following the judgment of the Court of First Instance of 9 December 1997 in joined 
cases T-195/94 and T-202/94 (Quiller and Heusmann) which decided that the 
Community is, as a matter of principle, liable to compensate the damages suffered by 
SLOM III producers, the Commission will shortly present to the Council a proposal 
for a regulation providing for arrangements for the settlement of the claims of this 
group of producers. It is anticipated that in its proposal the Commission will provide 
for a general legal base permitting the settlement of the claims of producers which 
fall outside the strict conditions of the arrangements adopted, but whose 
circumstances satisfy the conditions for non-contractual liability of the Community as 
laid down in the judgments of the Court of Justice and the Court of First Instance 
This would provide a basis for the settlement of the categories of cases covered by 
the first "clearing up" action and that which is now foreseen 
6. The Commission therefore asks the Council to acknowledge this communication and 
its conclusions. 
FINANCIAL STATEMENT (fiche/98/007.doc)l 
DATE :5/05/98 
BUDGET HEADING : Bl-2090 APPROPRIATIONS: p.m. 
TITLE : 
Communication from the Commission to the Council on compensation for certain producers of milk and milk products temporarily 
prevented from carrying on their trade ("SLOM producers") follow-up to the implementation of Council Regulation (EEC1) n" 
2187/93 
LEGAL BASIS : Article 215 of the Treaty 
4. AIMS: 
To notify progress as regards the settlement of outstanding claims of SLOM producers and in particular to inform the Council of 
the Commission's intention to compensate certain further categories of those entitled by means of direct transactions. 
•TNANCIAL IMPLICATIONS PERIOD OF 
12 MONTHS CURRENT 
FINANCIAL YEAR 
(190S) FOLLOWING 
FINANCIAL YEAR 
(1999) 
5.0 EXPENDITURE 
- CI IARGED TO THE EC BUDGE 
(REFUNDS/INTERVENTION) 
- NATIONAL AUTHORITIES 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL ECU 2,4 million i ECU :. I million p.m. 
2000 2001 2002 2003 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 
5.2 METHOD OF CALCULATION : 
The cases referred to in paragraph 3 
Number of cases : 55 
Average : ECU 24.000 
Cost: 55 x ECU 24.000 - ECU (A) 1,3 million 
The cases referred to in paragraph 4 
Estimation : ECU (A) 0,7 million 
TOTAL COST .ECU 1,3 million I 0,7 million : ECU 2 million x 1,191 (DR) 2,4 Mio ECU (B) 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET ? YES 
CAN 11 IE PROJECT BE FINANCED BY TRANSFER BETWEEN CI IAPTERS OF TI IE CURRENT BUDGET ? 
o..! WILL A SUPPLEMENTARY BUDGET BE NECESSARY'' 
WILL II! I URE BUDGET APPROPRIA ÏÏONS BE NECESSARY NO 
OBSERVATIONS 
ISSN 0254-1475 
COM(98) 287 final 
DOCUMENTS 
EN 03 15 10 
Catalogue number : CB-CO-<)8-30(vKN-C 
ISBN 92-78-35999-8 
Office for Official Publications of the European Communities 
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