EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 26.10.2004 
COM(2004) 712 final 
2004/0254 (CNS) .
 
Proposal for a 
COUNCIL REGULATION 
amending Regulations (EEC) No 2759/ 75, (EEC) No 2771/75, (EEC) No 2777/75,  
(EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001  
as regards exceptional market support measures 
. 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
In the case of serious market disturbances du e to restrictions imposed by the veterinary 
authorities in the case of outbreaks of animal diseases like Foot and Mouth Disease (FMD) or 
Classical Swine Fever (CSF), exceptional mark et support measures can be introduced by the 
Commission in order to support the farmers aff ected by these restrictions. In each of the 
following basic regulations, th e legal provisions for such measures are laid down in: 
– Article 20 of Council Regulation (EEC) No 2759/75 on the common organisation of 
the market in pigmeat, 
– Article 14 of Council Regulation (EEC) No 2771/75 on the common organisation of 
the market in eggs, 
– Article 14 of Council Regulation (EEC) No 2777/75 on the common organisation of 
the market in poultrymeat, 
– Article 39 of Council Regulation (EC) No 1254/1999 on the common organisation of 
the market in beef and veal, 
– Article 36 of Council Regulation (EC) No 1255/1999 on the common organisation of 
the market in milk and milk products and 
– Article 22 of Council Regulation (EC) No 2529/2001 on the common organisation of 
the market in sheepmeat and goatmeat. 
These articles provide for support measures wh ich can be adopted; however the articles do not 
specify how they are to be financed. 
In view of the absence of precise rules conc erning the financing of those measures, 100% of 
the expenditure for the measures was financed  by FEOGA in the late 80’s and early 90’s, 
especially for measures applied in the pigmeat se ctor which was confronted from time to time 
with outbreaks of CSF. 
In 1994, provisions regarding co -financing of the e xpenditure for exceptional market support 
measures were introduced for the first tim e in a Commission regul ation opening such 
measures in the pigmeat sector in Germany. 
At this time, the co-financing rate for measures in the pigmeat sector was set at 70% for the 
Community budget and at 30% for the national budget. Later, the same rate was used for measures in the beef sector due to BSE and FMD. 
In the Court case C-239/01, several Member States  lodged a complaint against the system of 
co-financing for special market support measures in the beef sector. In its ruling in 2003, the 
European Court of Justice stated that a nati onal co-financing of exceptional market support 
measures is not in line with the current wo rding of the corresponding Council regulation; only 
a 100% financing by the Community budget would be possible. 
It is obvious that this ruling applies to all market organisatio ns for animal products, because 
the articles in the different market or ganisations are more or less the same. 
 
EN 3   EN For the European Commission a co-financing syst em in the framework of exceptional market 
support measures is of utmost importance. Memb er States are responsible for the application 
of such measures but they are also responsible for measures ta ken to combat the disease. If 
they share the financial responsib ilities for the support measures, they will do their best in the 
veterinary and sanitary field to  stamp out the disease as quickl y as possible and to minimise 
the costs. An additional argument is the fact that the co-financing system is already used for the compensation paid to farmers for veterinary slaughterings of their animals in the case of 
an outbreak of a disease. In its special report No 1/2000 on classical swine fever, the 
European Court of Auditors recommended a stri ct parallelism regardin g the co-financing of 
veterinary measures and market support measures. 
In order to be able to continue  co-financing, after the ruling of  the Court, it is proposed to 
amend the corresponding articles in the differe nt Council regulations  by introducing clear 
legal provisions for such a system. This amen dment should concern all market organisations 
referred to above. 
 
EN 4   EN 2004/0254 (CNS) 
Proposal for a 
COUNCIL REGULATION 
amending Regulations (EEC) No 2759/ 75, (EEC) No 2771/75, (EEC) No 2777/75,  
(EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001  
as regards exceptional market support measures 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing th e European Community, and in particular 
Articles 36 and 37 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of  the European Parliament, 
Having regard to the opinion of the Eu ropean Economic and Social Committee, 
Whereas: (1) Some common market orga nisations include exceptional market support measures to 
take account of restrictions on free circ ulation resulting from the application of 
measures to combat the spread of animal diseases. These measures are contained in 
– Article 20 of Council Regulation (EEC) No 2759/75 of 29 October 1975 on the 
common organisation of the market in pigmeat
1, 
– Article 14 of Council Regulation (EEC) No 2771/75 of 29 October 1975 on the 
common organisation of the market in eggs2, 
– Article 14 of Council Regulation (EEC) No 2777/75 of 29 October 1975 on the 
common organisation of the market in poultrymeat3, 
– Article 39 of Council Regulation (EC)  No 1254/1999 of 17 May 1999 on the 
common organisation of the market in beef and veal4, 
– Article 36 of Council Regulation (EC)  No 1255/1999 of 17 May 1999 on the 
common organisation of the market in milk and milk products5 and 
                                                 
1 OJ L 282, 1.11.1975, p. 1. Regulation as la st amended by Regulation (EC) No 1365/2000 
(OJ L 156, 29.6.2000, p. 5). 
2 OJ L 282, 1.11.1975, p. 49. Regulation as last amended by Regulation (EC) No 806/2003 
(OJ L 122, 16.5.2003, p. 1). 
3 OJ L 282, 1.11.1975, p. 77. Regulation as last amended by Regulation (EC) No 806/2003 
(OJ L 122, 16.5.2003, p. 1). 
4 OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC) No 1782/2003 
(OJ L 270, 21.10.2003, p. 1). 
5 OJ L 160, 26.6.1999, p. 48. Regulation as last amended by Regulation (EC) No 186/2003 
(OJ L 29, 3.2.2004, p. 6). 
 
EN 5   EN – Article 22 of Council Regulation (EC) No 2529/2001 of 19 December 2001 on 
the common organisation of the market in sheepmeat and goatmeat6. 
(2) As a result of outbreaks of disease in the Community there have been some very 
serious crises on the markets in livestock pr oducts, meats in particular. In order to 
avoid serious disruption on the markets con cerned, the Commission has been forced to 
adopt exceptional support meas ures for them in the affect ed Member States, resulting 
in significant expense to  the Community budget. 
(3) The Member States in this regard have prime responsibility for preventing an outbreak 
of disease and its spread. In the light of th e situation, the extent of the disease, its 
duration, and accordingly the scale of the ma rket-support efforts required, the cost of 
the aid actually paid to th e producers should be shared be tween the Community and the 
Member State concerned. 
(4) Adoption of the support measures should be  dependent on the adoption by the Member 
States of health and veterinary measures to  quickly stamp out any outbreaks of disease. 
(5) The rules on State aid should not apply to  the Member States’ financial contribution 
towards the exceptional market support measures, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Article 20 of Regulation (EEC) No 2759/75 is replaced by the following: 
"Article 20 
1. In order to take account of the restrictions  on intra-Community and third-country 
trade which may result from the application of measures for combating the spread of 
diseases in animals, exceptional measures of support for the market affected by those 
restrictions may be taken in accordance w ith the procedure laid down in Article 24. 
These measures may be taken only if the Member States have taken health and 
veterinary measures to quickly stamp out the disease and only to the extent and for 
the duration strictly necessary to support the market concerned. 
2. The Community shall provide part-finan cing for the measures referred to in 
paragraph 1 equivalent to 50% of th e expenditure borne by Member States. 
3. Articles 87, 88 and 89 of the Treaty shall not  apply to the Member States’ financial 
contribution towards the measures  referred to in paragraph 1." 
Article 2 
Article 14 of Regulation (EEC) No 2771/75 is replaced by the following: 
                                                 
6 OJ L 341, 22.12.2001, p. 3. Regulation as last amended by Regulation (EC) No 1782/2003 
(OJ L 270, 21.10.2003, p. 1). 
 
EN 6   EN "Article 14 
1. In order to take account of the restrictions on free circul ation which may result from 
the application of measures for combati ng the spread of diseases in animals, 
exceptional measures of support for the market  affected by those restrictions may be 
taken in accordance with the procedure re ferred to in Article 17. These measures may 
be taken only if the Member States have taken health and vete rinary measures to 
quickly stamp out the disease and only to the extent and for the duration strictly 
necessary to support th e market concerned. 
2. The Community shall provide part-finan cing for the measures referred to in 
paragraph 1 equivalent to 50% of th e expenditure borne by Member States. 
3. Articles 87, 88 and 89 of the Treaty shall not  apply to the Member States’ financial 
contribution towards the measures  referred to in paragraph 1." 
Article 3 
Article 14 of Regulation (EEC) No 2777/75 is replaced by the following: 
"Article 14 
1. In order to take account of the restricti ons on free circulation which may result from 
the application of measures for combati ng the spread of diseases in animals, 
exceptional measures of support for the market  affected by those restrictions may be 
taken in accordance with the procedure referred to in Ar ticle 17. These measures may 
be taken only if the Member States have taken health and vete rinary measures to 
quickly stamp out the disease and only to the extent and for the duration strictly 
necessary to support th e market concerned. 
2. The Community shall provide part-finan cing for the measures referred to in 
paragraph 1 equivalent to 50% of th e expenditure borne by Member States. 
3. Articles 87, 88 and 89 of the Treaty shall not  apply to the Member States’ financial 
contribution towards the measures  referred to in paragraph 1." 
Article 4 
Article 39 of Regulation (EEC) No 1254/1999 is replaced by the following: 
"Article 39 
1. In order to take account of the restricti ons on free circulation which may result from 
the application of measures for combati ng the spread of diseases in animals, 
exceptional measures of support for the market  affected by those restrictions may be 
taken in accordance with the procedure referred to in Ar ticle 43. These measures may 
be taken only if the Member States have taken health and vete rinary measures to 
quickly stamp out the disease and only to the extent and for the duration strictly 
necessary to support th e market concerned. 
2. The Community shall provide part-finan cing for the measures referred to in 
paragraph 1 equivalent to 50% of th e expenditure borne by Member States. 
 
EN 7   EN 3. Articles 87, 88 and 89 of the Treaty shall not  apply to the Member States’ financial 
contribution towards the measures  referred to in paragraph 1." 
Article 5 
Article 36 of Regulation (EEC) No 1255/1999 is replaced by the following: 
"Article 36 
1. In order to take account of the restricti ons on free circulation which may result from 
the application of measures for combati ng the spread of diseases in animals, 
exceptional measures of support for the market  affected by those restrictions may be 
taken in accordance with the procedure referred to in Ar ticle 42. These measures may 
be taken only if the Member States have taken health and vete rinary measures to 
quickly stamp out the disease and only to the extent and for the duration strictly 
necessary to support th e market concerned. 
2. The Community shall provide part-finan cing for the measures referred to in 
paragraph 1 equivalent to 50% of th e expenditure borne by Member States. 
3. Articles 87, 88 and 89 of the Treaty shall not  apply to the Member States’ financial 
contribution towards the measures  referred to in paragraph 1." 
Article 6 
Article 22 of Regulation (EEC) No 2529/2001 is replaced by the following: 
"Article 22 
1. In order to take account of the restricti ons on free circulation which may result from 
the application of measures for combati ng the spread of diseases in animals, 
exceptional measures of support for the market  affected by those restrictions may be 
taken in accordance with the procedure refe rred to in Article 25(2). These measures 
may be taken only if the Member States have  taken health and veterinary measures to 
quickly stamp out the disease and only to the extent and for the duration strictly 
necessary to support th e market concerned. 
2. The Community shall provide part-finan cing for the measures referred to in 
paragraph 1 equivalent to 50% of th e expenditure borne by Member States. 
3. Articles 87, 88 and 89 of the Treaty shall not  apply to the Member States’ financial 
contribution towards the measures  referred to in paragraph 1." 
 
EN 8   EN Article 7 
This Regulation shall enter into force on the se venth day following that of its publication in 
the Official Journal of  the European Union . 
This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
Done at Brussels, […] 
 For the Council 
 The President 
 
EN 9   EN FINANCIAL STATEMENT  
  
1. BUDGET HEADING:  
05 03 Animal products  (in particular the lines :05030199, 05030209, 05030399, 05030403 and 
05030408) APPROPRIATIONS: 
Budget 2004: €239 million 
2. TITLE: 
Council Regulation amending Regulations (EEC) No 2759/75, (EEC) No 2771/75, (EEC) No 2777/75, 
(EC) No 1254/1999, (EC) No 1255/1999 and (EC) No 2529/2001 as regards exceptional market support 
measures 
3. LEGAL BASIS: 
 Articles 36 and 37 of the Treaty 
4. AIMS: 
To ensure that the Community, by sharing with the Member States the financial responsibilities, reinforces the measures whic h the Member States take to stop epizootic outbreaks. 
5. FINANCIAL IMPLICATIONS 12 MONTH 
PERIOD 
 
(EUR million) CURRENT 
FINANCIAL 
YEAR 2004 
(EUR million) FOLLOWING 
FINANCIAL 
YEAR 2005 
(EUR million) 
5.0 EXPENDITURE 
– CHARGED TO THE EC BUDGET 
REFUNDS/INTERVENTIONS) 
– NATIONAL AUTHORITIES 
– OTHER (1) (1) (1) 
5.1 REVENUE 
– OWN RESOURCES OF THE EC  
(LEVIES/CUSTOMS DUTIES) 
– NATIONAL – – – 
  2006 2007 2008 2009 
5.0.1 ESTIMATED EXPENDITURE (1) (1) (1) (1) 
5.1.1 ESTIMATED REVENUE – – – – 
5.2 METHOD OF CALCULATION: 
– 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET?  
YES / NO 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 
THE CURRENT BUDGET?  
YES / NO 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? YES / NO 
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? YES / NO 
OBSERVATIONS: 
(1) The cost of the measure cannot be estimated, since it will depend on the importance of any outbreaks 
which may occur.