Proposal for a COUNCIL REGULATION (EC) No . . .

of . . .

amending Regulation No 136/66/EEC on the establishment of a common organization of the market in oils and fats (94/C 83/10)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 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 Economic and Social Committee,

Whereas, given the changing situation on the olive oil market, a single aid scheme is necessary; whereas experience has shown that the abolition of consumption aid would not adversely affect the level of olive oil consumption in the Community and would make verification procedures simpler and more effective; whereas the consumption aid scheme should accordingly be abolished;

Whereas abolition of consumption aid will result in abolition of the representative market price and require new rules determining the threshold price to be drawn up;

Whereas, following abolition of consumption aid, provision should be made for special measures to promote olive consumption;

Whereas such measures are intended to introduce better balance on the olive oil market; whereas expenditure incurred as a result of such measures should therefore be considered intervention within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (1), as last amended by Regulation (EEC) No 2048/88 (2);

Whereas Council Regulation No 136/66/EEC (3), as last amended by Regulation (EEC) No 3179/93 (4), should be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation No 136/66/EEC is hereby amended as follows:

1. The first subparagraph of Article 4 (1) is replaced by the following:

'A production target price, an intervention price and a threshold price for olive oil shall be fixed each year for the Community.`;

2. The first sentence of the fourth subparagraph of Article 5 (1) is deleted;

3. Article 7 is deleted;

4. Article 9 is replaced by the following:

'Article 9

The threshold price shall be fixed in such a way that the selling price for the imported product at a Community crossing point shall be the same as production target price less the production aid. The frontier crossing point shall be determined in accordance with the procedure laid down in Article 38.`;

5. Article 11 is replaced by the following:

'Article 11

1. The Community shall set in motion, directly or indirectly, information measures and other measures to promote the consumption of olive oil produced in the Community.

2. Expenditure incurred as a result of measures referred to in paragraph 1 shall be considered intervention within the meaning of Article 3 of Regulation (EEC) No 729/70.

3. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 38 of this Regulation.`;

6. Article 11a is replaced by the following:

'Article 11a

Member States shall, in so far as they are concerned, take the necessary measures to provide for penalties in the event of infringements of the aid arrangements laid down in Article 5. They shall notify the Commission of the measures as soon as they are adopted.`

Article 2

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

It shall apply from 1 November 1994.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at . . .

For the Council

. . .

(1) OJ No L 94, 28. 4. 1970, p. 13.

(2) OJ No L 185, 15. 7. 1988, p. 1.

(3) OJ No L 172, 30. 9. 1966, p. 3025/66.

(4) OJ No L 285, 20. 11. 1993, p. 9.