S', J int.* | 
I» 9*0 vv| COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 79 final 
Brussels, 9 March 1993 
-Mi* il 
fjfcr'V i 
ilkC - i Proposal for a 
milKiniL REGIIIATIQN (EEC) 
on measures adjusting certain sectors of the Portuguese food industry 
ÈSS:/!M:M (presented by the Commission) 
£ 
EXPLANATORY MEMORANDUM 
In the opinion of both the Commission and the Council, the integration of the new 
Member States into the single market Is a major politicial objective. 
As a result of the proposals submitted to this end by the Commission 
(COM (92) 275 final), to all intents and purposes Spanish integration was 
completed on 1 January 1993. 
By contrast, the considerable challenge posed by the abolition of accession 
mechanisms to Portuguese agriculture has meant that it has not been possible to 
integrate Portugal by the same date. It has become apparent that Portuguese 
integration will not be possible unless more account is taken of the interests of 
certain farming sectors In that country. 
This proposal takes account of the interests of the Portuguese food industry, 
whose structures are In many cases weak. When the accession mechanisms are 
abolished, this industry will be exposed to increased competition from the other 
Member States and will therefore have to make considerable efforts to modernize. 
This proposal encourages this effort by granting, over a period of three years 
and up to a maximum global amount of ECU 60 million, EAGGF aid under conditions 
to be laid down primarily by the Portuguese authorities. 
3 
COUNCIL REGULATION (EEC) No 
of 
on measures adjusting certain sectors of the Portuguese food industry 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Article 43 thereof, 
Having regard to the Act of Accession of Spain and Portugal, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas completion of the single market presupposes the elimination of obstacles 
to trade, not only between the Member States of the Community in its composition 
at 31 December 1985 but also, as far as possible, between these Member States and 
the new Member States; 
Whereas, in this context, the majority of transitional mechanisms for Portuguese 
accession have been demobilized before the time limit provided for in the Act of 
Accession; whereas for certain sectors of Portuguese industry, whose structures 
are still weak, this demobilization represents a considerable challenge in view 
of the increased competition from the other Member States and third countries; 
whereas, therefore, the adjustment of these sectors should be encouraged with a 
view to making it possible to modernize them; whereas, to this end, it is 
appropriate to grant businesses in these sectors an aid in terms of capacities 
established on the basis of the amount produced during a historic reference 
period, the amount of which is to be determined by the Portuguese authorities, to 
be gradually reduced over three years, 
HAS ADOPTED THIS REGULATION: ' 
Art icle 1 
1. Structural adjustment aid intended to accelerate its modernization is hereby 
instituted to the benefit of businesses in the Portuguese food industry 
sectors affected by the premature demobilization of transitional measures for 
accession meeting the criteria laid down by the Portuguese authorities 
pursuant to paragraph 3. 
2. The aid provided for in paragraph 1 shall be granted to businesses in the 
sectors concerned: 
- gradually decreasing over three years; and 
in terms of capacities established on the basis of the amount produced 
during a historic reference period. 
3. The Portuguese authorities shall determine: 
- the sectors meeting the requirements provided for in paragraph 1, 
- the criteria to be met by the beneficiary businesses. These shall be 
established on an objective basis. 
- the amount of aid. This amount shall be determined on the basis of 
objective criteria, in particular the degree of difficulty created for 
each sector by the premature abolition of transitional accession 
mechanisms; 
- the reference period provided for in paragraph 2, which in no case may go 
beyond 31 December 1992. 
4. The aid provided for in this Article shall be limited to ECU 60 million. It 
shall constitute an intervention measure within the meaning of Article 1(2) 
of Council Regulation (EEC) No 729/70. 
Article 2 
The Portuguese author ities shall inform the Commission of the factors determined 
pursuant to Article 1(3) as soon as they are adopted and on 1 June 1993 at the 
latest. 
Article 3 
This Regulation shall enter into force on the seventh day following its 
publication of 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 
1. BUDGET HEADING: 390 Other aid AFFflÛPftlATIONS: PDS££ ECU 24 ml 11 Ion 
2. TiTLE: 
Î council Regulation on measures adapting certain sectors of the Portuguese food Industry 
3. LEGAL BASIS: 
Article 43 of the Treaty and the Act of Accession of Spain and Portugal 
4. AIMS OF PROJECT: 
To grant to certain sectors of Portugjes© indjcstry a cfegresslv® structura! adaptation aid n&iklng it possible 
for than to faca the increased competition resulting frcm the cat^Ietîm of the singt© madsèt. 
5. FINANCIAL IMPLICATION 
5.0 EXPEhDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1 REVEHJE 
- OWN RESOURCES OF THE EC 
-NATIONAL Period of 12 months Current Financial Year 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVEMJE ECU 36 ml 11 Ion ECU 24 ml 11 ion Following Financial Year 
1994 
ECU 28 ml 11 Ion 
1995 1996 1997 199B 
ECU 16 mi 11 Ion i ECU 4 mi 11 ion 
i 
5.2 ICTHDD OF CALCULATION: 
Anrsunt granted : BU 60 mil Hon CÂ) x 1.205 (tt?) - ECU 72 mi I lien CB3 
Planned period of appl leal ion: March 1963 - February 1998 
Assunsd aid amonts per year: March 1993 - February 1994 « ECU 38 ml 11 Ion 
March 1994 - February 1^ • ECU 24 mi 11 Ion. 
fcferen 1S95 - February 1995 « ECU 12 raî fl ion 
Conséquences per budget year: 1993: ECU 3$ mi I lion x 8/12- ECU 24 mi I lion 
1994: ECU 36 mi 11 ion x 4/12 » ECU 12 mi 11 ion) ECU 28 mil I Ion 
ECU 24 ml 11 ion x 8/12 - ECU 16 mi 11 ion) 
1995: ECU 24 mi I lion x 4/12 «ECU 8 mi 11 Ion) ECU 16 mi I lion 
12miillcnx 8/12 -ECU 8 mi I lien) 
1996: ECU 12 ml 11 Ion X 4/12 « ECU 4 ml 11 Ion 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YESXXX 
6.1 CAN TFE PROJECT BE FINANCED BY TRANSFER BEDffiEN CHAPTERS OF TtC CURRENT BUDGET? XXXXXX 
6.2 IS A SUPPLEMENTARY BUDGET t€CESSARY? XXXXXX 
6.3 WILL FUTURE BUDGET APPROPRIAT I ONE BE hGCESSARY? 
OBSERVATIONS: YES 
ISSN 0254-1475 
COM(93) 79 final 
DOCUMENTS 
EN 15 03 
Catalogue number : CB-CO-93-100-EN-C 
ISBN 92-77-53359-5 
Office for Official Publications of the European Communities 
L2985 Luxembourg