Proposal for a COUNCIL REGULATION correcting Regulation (EC) No 2200/96 relative to the starting date of the transitional period for the recognition of producer organisations

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Background

Article 58 of Regulation (EC) No 2200/96 sets dates for the entry into force (21.11.1996) and the date of application (1.1.1997) of this Regulation.

The reason for setting two distinct dates relates in particular to Article 13 of this Regulation, concerning producer organisations (POs) recognised under Regulation (EEC) No 1035/72 but which are unable to qualify for recognition immediately under Article 11 Regulation (EC) No 2200/96. Article 13 allows these POs to continue operating for a transitional period of two years (brought to five if the PO submits an action plan).

Regulation (EEC) No 1035/72 was still technically in force until 31 December 1996. The two-to-five-year transitional periods should begin after the expiry of Regulation (EEC) No 1035/72, i.e. on 1.1.1997. The two- and five-year periods refer in any case to calendar years, tying in with the calendar year format of operational programmes. This was the original intention of the initial draft legislation, as seen in the proposal of the Commission to the Council of 4.10.1995 [1], which specified that the 1.1.1996 was the date of entry into force of the new Common Market Organisation.

[1] COM(95) 434 final, Article 54.

The final drafting of Regulation (EC) No 2200/96 recognised a potential risk of 'last minute' applications for recognition under Regulation (EEC) No 1035/72, motivated by the eligibility of two years' Community support for intervention. It was thus sought to close the recognition 'window' as soon as possible. To do this, the entry into force of the Regulation was brought back from 1.1.1997 to 21.11.1996. This ensured that only the more 'bona-fide' recognition applications were made for POs which intended to operate according to the philosophy of Regulation (EC) No 2200/96.

The date of 1.1.1997 thus became the 'date of application' of Regulation (EC) No 2200/96.

However, in error, the text of Article 13 of Regulation (EC) No 2200/96 was not modified accordingly to state that the two- and five-year periods began at the date of application of the Regulation of 1.1.1997.

2. Consequences

Beginning the transitional period of two and five years on 21.11.1996 is superfluous because POs were recognised under Regulation (EEC) No 1035/72 until 31.12.1996. This leads to the following problems:

1. The period of two years to which POs were entitled under Article 13(1) of Regulation (EC) No 2200/96 is effectively shortened by 41 days, ending on 20.11.1998 instead of 31.12.1998. Withdrawals carried out after the date of 20.11.1998 are therefore not eligible for Community withdrawal compensation under Title IV of Regulation (EC) No 2200/96.

2. The period of five years to which POs were entitled under Article 13(2) of Regulation (EC) No 2200/96 in order to comply with the requirements for recognition is effectively shortened by 41 days, ending on 20.11.2001 instead of 31.12.2001. Operations under action plans, including withdrawals, carried out after the date of 20.11.2001 are therefore not eligible for Community financial assistance under Article 15 of Regulation (EC) No 2200/96 or Community withdrawal compensation under Title IV.

In both these cases, the shortening by 41 days of the two- and five-year transitory periods may have had negative effects on the attempts of POs to qualify for recognition within the permitted timeframe. Logistical problems may also have arisen due to the lack of continuity between the action plans and operational programmes.

3. This Proposal

It is proposed to correct Article 13 of Regulation (EC) No 2200/96 so that the starting date for the transitional periods of two and five years begins on 1.1.1997.

2002/0111 (CNS)

Proposal for a COUNCIL REGULATION correcting Regulation (EC) No 2200/96 relative to the starting date of the transitional period for the recognition of producer organisations

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof,

Having regard to the proposal from the Commission [2],

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

Having regard to the opinion of the European Parliament [3],

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

Having regard to the opinion of the Economic and Social Committee [4],

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

Whereas:

(1) Pursuant to Article 13(1) of Council Regulation (EC) No 2200/9696 of 28 October 1996 on the common organisation of the market in fruit and vegetables [5], a transitional period of two years, starting from its date of entry into force, in which the provisions of title IV of the aforementioned Regulation would apply, was granted to producer organisations recognised under Council Regulation (EEC) No 1035/72 of 18 May 1972 on the common organisation of the market in fruit and vegetables [6], who did not meet the requirements for recognition of Regulation (EC) No 2200/. This two-year transitional period could be extended to five years upon acceptance by the relevant Member State of an action plan presented by the producer organisation in order to comply with all requirements provided for by Regulation (EC) No 2200/96 for being granted recognition by the Member State.

[5] OJ L 297, 21.11.1996, p. 1. Regulation last amended by Regulation (EC) No 545/2002 (OJ L 84, 28.3.2002, p. 1).

[6] OJ L 118, 20.5.1972, p. 1. Regulation last amended by Commission Regulation (EC) No 1363/95 (OJ L 132, 16.6.1995, p. 1).

(2) Regulation (EC) No 2200/96 defines in Article 13(1) the beginning date of the two- and five-year transitional periods as the period of entry into force of the Regulation (21.11.1996). This date is the result of an error; as a matter of fact, eligibility for transitional measures as from the date of entry into force of Regulation (EC) No 2200/96 would have been meaningless since Regulation (EEC) No 1035/72 was still in force until 31 December 1996 and, in lieu, the beginning date for said periods should have been the date of application of Regulation (EC) No 2200/96.

(3) It is therefore appropriate to correct said error in Article 13(1) of Regulation (EC) No 2200/96. Since the effects of the error in Article 13(1) could have negatively affected producer organisations having benefited from said transitional periods, it is appropriate to apply the corresponding provisions as from the date of entry into force of Regulation (EC) No 2200/96,

HAS ADOPTED THIS REGULATION:

Article 1

Article 13(1) of Regulation (EC) No 2200/96 is replaced by:

"1. Producer organisations recognised under Regulation (EEC) No 1035/72 before the entry into force of this Regulation and which are unable to qualify for recognition under Article 11 of this Regulation without a transitional period may continue to operate under the provisions of Title IV for two years as from 1 January 1997, provided that they remain in compliance with the requirements of the said articles of Regulation (EEC) No 1035/72."

Article 2

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

It shall apply as from the date of entry into force of Regulation (EC) No 2200/96.

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>