COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(90) 397 final 
Brussels, 5 September 1990 
NINETEENTH FINANCIAL REPORT 
on 
THE EUROPEAN AGRICULTURAL GUIDANCE 
AND GUARANTEE FUND 
E.A.G.G.F. 
- 1989 -
GUARANTEE SECTION 
and 
FOOD AID AND ACCOUNTS CLEARANCE 
(presented by the Commission) 
Average conversion rates used for 1989 
(cf . Annex 18) 
i 1 ECU m 
EUROPEAN COMMUNITY (budgetary) 
Belgium 43,5263 BFR 
Denmark 8,04673 DKR 
Germany 2,07717 DM 
Greece 174,158 DRA 
Spain 132,534 PTA 
France 7,06493 FF 
I re land 0,776112 IRL 
Italy 1525,86 L IT 
Luxembourg 43,5691 LFR 
Netherlands 2,34321 HFL 
PortugaI 171,947 ESC 
United Kingdom 0,654745 UKL 

- I -
NTRODUCTORY NOTE 
a) Article 10 of Regulation (EEC) N° 729/70 on the financing of the common 
agricultural policy required the Commission to send each year to the Council 
and Parliament "a financial report on the administration of the Fund during 
the preceding financial year and, in particular, on the state of its 
resources and the nature of its expenditure and the conditions under which 
Community financing has been effected". 
This Report covers the operations of the EAGGF Guarantee Section and the 
clearance of accounts in respect of Community food aid for 1989. The 
Guidance Section is dealt with in a separate report. 
The Guarantee Section finances the expenditure arising from the common policy 
on agricultural markets and prices. Under Articles 2 and 3 of Regulation 
(EEC) N° 729/70, expenditure consists of refunds on exports to non-Community 
countries, paid under the EEC market organizations to bridge the gap between 
Internal EEC prices and the prices obtaining on world markets, and a wide 
range of market intervention measures (1) designed to stabilize the 
agricultural markets (price compensating aids, guidance premiums, storage, 
product withdrawals). 
b) Up to and including 1986, the financial year was always the same as the 
calendar year. The amendments made in 1987 to the regulations governing the 
financing of the comnon agricultural policy resulted, as regards the 
Guarantee Section, in adjustments in the dates of closure of the accounts for 
1987(2), 1988 (3) and subsequent (4), financial years, with a gap opening up 
between the calendar year and the Guarantee Section financial year. This may 
make it difficult to compare these years with previous years, and should be 
taken into account in examining the various tables and annexes. 
* 
* * 
N.B. : This Report was completed on 20 June 1990 
(1) The Annex to Regulation (EEC) N° 380/88 (OJ N° L 38 of 11.02.1988), as last 
updated by Regulation (EEC) N° 961/89 (0J N° L 102 of 14.04.1989) sets out, 
by way of declaration, the measures which are considered as market 
Intervention measures for the purpose of regulating the agricultural markets 
in accordance with Article 3(1) of Regulation (EEC) N° 729/70. 
(2) Financial year 1987: expenditure here covers a period of 10 months, from 
1 January 1987 to end October 1987. 
(3) Financial year 1988: expenditure here covers a period of 11 and a half 
months, from beginning November 1987 to 15 October 1988. 
(4) Financial year 1989 et seq.: expenditure here covers a period of 12 months 
from 16 October to 15 October. 
-II-
SUMMARY OF THE NINETEENTH FINANCIAL REPORT 
EAGGF - GUARANTEE SECTION 
A. Community expenditure on markets 
1. The appropriations available for the Guarantee Section of the EAGGF for 
1989 after transfers, covering, unlike the two previous financial years, a 
period of twelve months from 16 October 1988 to 15 October 1989, amounted 
to ECU 27,14.5 million (initial appropriations : ECU 28,247.3 million), in­
cluding the set-aside of arable land (Chapter 39 - ECU 20 million), the 
common organization of the market in fishery products (Chapter 40 -
ECU 27.3 million) and, finally, repayments to Member States of expenditure 
on the depreciation of agricultural stocks, on the one hand, and the spe­
cial disposal of public stocks of butter, on the other (Chapter 81 -
ECU 1,449.0 mi I I ion). 
Allowing for a reduction in expenditure resulting from the clearance of the 
accounts for 1986 of ECU 202.7 million, the financial contribution of ce­
real producers (ECU 799.3 million) and milk producers (ECU 890.3 million), 
total agricultural expenditure chargeable to the Guarantee Section for 1989 
stood at ECU 25,872.9 million. 
2. An examination of the breakdown of agricultural expenditure by economic 
category shows that, on the basis of total expenditure taken into conside­
ration for the 1989 budget excluding the consequences of the clearance of 
accounts (ECU 202.7 million) and miscellaneous payments (ECU 235.6 mil­
lion), i.e. ECU 25,840.0 million, export refunds amounted to ECU 9,714 mil­
lion (37.6 %) and market intervention measures to ECU 16,126 million 
(62.4 %). 
In the case of refunds, almost 57 % of total expenditure was taken up by 
milk products and cereals alone, followed by sugar (15 %). 
The product areas mainly responsible for expenditure on intervention were 
oilseeds (17 %) and milk products (13 %), followed by sheepmeat and goat-
meat (9 %) and olive oil (9 %). Price compensatory measures accounted for 
ECU 10,110 million whilst storage aid amounted to ECU 4,24 million (63 % 
and 26 % of total intervention respectively). 
3. The book value of public stocks fell very sharply during 1989, confirming 
the trend observed in the previous financial year. The value of stocks 
fell from ECU 4,663 million on 30 September 1988 to ECU 1,612 million on 
30 September 1989, a fall of ECU 3,051 million (65 %). This situation 
should be compared with the position on 30 September 1987 when the book 
value of stocks stood at ECU 10,575 million. 
This encouraging development Is not only the result of a more dynamic dis­
posal policy, but also of the depreciation measures taken during the 1988 
and 1989 financial years, the costs of which were ECU 2,598 million and 
ECU 1,826 million respectively. In 1989 these depreciation measures were 
used In the following sectors : cereals, milk products, tobacco, beef, oils 
and fats and alcohol. 
I -
The proportion of the book value of stocks accounted for by the major pro­
ducts changed between 1987 and 1989. The share of milk products fell from 
46.4 % in 1987 to 13.1 % in 1988 and then to 5.3 % in 1989. That of 
cereals rose from 27.8 % to 32.4 % and then to 53.8 %. That of oils and 
fats rose from 4.6 % to 15.9 % and then to 20.3 %. Finally, that of beef 
rose from 20 % in 1987 to 34.2 % in 1988 and then fell back to 15.3 % in 
1989. 
As regards the quantities in stock, between 1988 and 1989 there was : 
- a fail, varying in size from sector to sector, for cereals in general, 
oils and fats, milk products and beef; 
- an increase for alcohol and tobacco. 
B. Cash position and management of appropriations 
The 1989 budget was adopted in December 1988 and was implemented without any 
particular difficulties. 
The budget adopted covered all expenditure and produced a balance of unused 
appropriations of the order of ECU 1,291 million. 
For the Guarantee Section, twelve normal advances and one extraordinary 
advance were adopted during the year, including ECU 17 million for set-aside 
from the Guidance Section. 
As a result of the non-payment by Member States of the additional co-respons­
ibility levy in the milk sector, the Commission had to reduce the advances 
against entry in the accounts in July 1989 by a total of ECU 140.625 million. 
At the end of 1989 a balance of ECU 57.417 million which had been committed 
remained uncollected for the 1989 financial year. 
Following improvements in the arrangements for the monitoring of appropria­
tions (the Early Warning System) the Commission was able to make two trans­
fers between chapters before the appropriations were used up. A final 
transfer was made at year's end in the tobacco and hops sectors. 
C. Investigations and Irregularities 
The fight against fraud was a priority task for the Commission in 1989*1). 
Parliament and the Council paid special attention to the subject throughout 
the year. This political support produced some results. 
The Commission stepped up its on-the-spot investigations, particularly in 
those sectors regarded as sensitive, and in 1989 it carried out 24 
administrative enquiries in Member States covering cereals, beef and veal, 
sheepmeat, fruit and vegetables, olive oil, milk products and citrus fruits. 
The number of cases of irregularities notified by the Member States under Ar­
ticles 3 and 5 of Regulation (EEC) No 283/72 (except those relating to the 
premium for the non-marketing of milk) was 729 In 1989, as against 367 In 
1988. The amount Involved was ECU 154.321 million (ECU 154.944 million In 
1988) of which only ECU 10.71 million was recovered. It is worth noting that 
only 5 % of the cases represented 74 % of the total amount. 
(1) The fight against fraud: Report on work done and progress achieved in 1989 
- Document SEC (90) 156 final of 31 January 1990. 
- IV 
A breakdown by Member State of the number of irregularity cases shows that, 
while the differences pointed to on many occasions by the Commission persist, 
instead of one Member State alone notifying 40 % to 60 % of all cases as in 
the past, now, with the exception of Greece, Spain and Portugal, the number of 
cases notified by Member States Is proportionate to their size. The number of 
cases notified by Greece and Spain was rather small. Portugal was the only 
country not notifying any cases at all. 
At the end of 1989 4,487 irregularity cases notified by Member States since 
the entry into force of Regulation (EEC) No 283/72 were held on the COMA35 
computerized database. The database has been considerably improved and data 
has been corrected or supplemented, as the case may be. 
D. Clearance of accounts 
In November 1989 the Commission formally approved Member States' expenditure 
chargeable to the Guarantee Section for 1987. The amount involved was 
ECU 22,970 mi iI ion. 
The systems audit method was again used for checking expenditure for 1987. 
The method is clealrly explained in an EAGGF Guarantee Section audit manual 
and was developed in association with a consultancy firm. The financial 
benefit to the Community budget for 1990 was ECU 374.5 million. 
Two Member States (Greece and France) brought proceedings in the Court of 
Justice against Commission clearance decisions for 1987. 
In 1988 the Court delivered judgment in various cases in respect of old clea­
rance decisions. The Commission took note of these where appropriate and 
adapted its decisions. 
The verification of expenditure pertaining to 1988, amounting to 
ECU 27,500 million, was carried out by the paying agencies mainly in 1989. 
The memorandum used by Member States to standardize their annual claims (de­
clarations), with aii its technical explanations, was also amended in 1989 to 
accommodate, in particular, changes in the breakdown of the budget and in the 
rules governing the common agricultural policy. 
E. Accounts clearance in respect of Community food aid 
Commission Regulation (EEC) No 2200/87 laying down general rules for the mobi­
lization in the Community of products to be supplied as Community food aid 
took effect on 1 July 1987 and is the basis for the reform of the system of 
fInanc i ng Commun 11 y food aid. 
The reform means that financing for successful tenderers for aid schemes is 
provided directly by the Commission and not by the Member States. 
- V -
Financing for 1989 was therefore carried out directly by the Commission, apart 
from some amounts outstanding charged to food aid schemes under the old 
system. 
Presentation of data relating to the quantity supplied In tonnes and the ex­
penditure Incurred by the Commission Is now the responsibility of the Direc­
torate-General for Development. 
The Guarantee Section of the EAGGF will continue to be responsible for the 
clearance of accounts for budget years In which financing was carried out 
under the old system. 
- VI -
SUMMARY 
Pages 
TITLE I : COMMUNITY EXPENDITURE ON MARKETS 1 
1. General 1 
1.1. Financing of the common agricultural policy in 1989 1 
1.2. 1989 budget and original appropriations 1 
1.3. Transfers of appropriations and appropriations available 2 
1.4. Agricultural expenditure 3 
1.5. Fixing of farm prices and related measures for 1989/90 3 
1.6. Revision of the rules on sheepmeat and goatmeat 4 
1.7. Emergency operation in support of Poland 5 
1.8. Distribution of agricultural products to disadvantaged persons 
In the Community 6 
1.9. Set-aside measures 7 
1.10. The impact of agricultural stabilizers on budgetary expenditure 9 
1.11. Situation of intervention stocks In the Community 10 
2. Financing of the markets 15 
2.1. Comparison between original appropriations and expenditure In 1989 15 
2.2. The agri-monetary situation 24 
2.3. Breakdown of expend I ture by econom I c type 28 
2.4. Trend of pub 11 c stocks 32 
2.5. Corrections to be made to the breakdown of expenditure by Member 
States In connection with monetary compensatory amounts (MCas) 35 
2.6. Overall cost of Guarantee Section 36 
3. Adjustments to legislation governing the EAGGF Guarantee Section 39 
TITLE II : CASH POSITION AND MANAGEMENT OF APPROPRIATIONS 43 
4. System of advance payments and adjustment thereof 43 
5. Advance payments to the Member States 43 
5.1. Decisions on advance payments in respect of 1989 43 
5.2. Funds available and Member States' expenditure during the year 43 
5.3. Direct payments 43 
- VI I -
Pages 
6. Management of appropriations 44 
6.1. ApproprI at ions ava iIabIe 44 
6.2. Transfers of appropr iatIons 45 
6.3. Expenditure 46 
6.4. Carryover of appropriations 47 
6.5. Summary of execut Ion of 1989 budget 47 
TITLE III : INVESTIGATIONS, IRREGULARITIES AND RELATED WORK 50 
7.1. General remarks 50 
7.2. Special checks and investigations 50 
7.3. Select Ive checks 53 
7.4. Irregularities detected 53 
7.5. Recovery of amounts wrongly paid out 55 
7.6. Mutual information system 56 
7.7. Meetings of the EAGGF Irregularities Group 56 
7.8. Cont ro I agenc i es for o I i ve oil 57 
7.9. Régulât ion (EEC) No 4045/89 58 
7.10. Harmonizat ion of controls 59 
TITLE IV : CLEARANCE OF ACCOUNTS 60 
8.1. Verification of EAGGF Guarantee Section expenditure and clearance 
procedure - 1987 60 
8.2. 1988 61 
8.3. Systems audit - Verification procedure 62 
8.4. Memor andum -. , 63 
8.5. Appeals against accounts clearance decisions 64 
8.6. Legal national aid and "upstream" infringements 65 
TITLE V : CLEARANCE OF ACCOUNTS IN RESPECT OF COMMUNITY FOOD AID 
FOR PRODUCTS SUBJECT TO EEC MARKET ORGANIZATIONS 66 
9.1. Reform of the system of financing Community food aid 66 
9.2. Amounts outstanding from old system 66 
9.3. Accounts clearance 66 
- VI I I -
Pages 
INDEX OF TABLES 
1. Original appropriations in the 1989 budget, appropriations avail­
able fol lowing transfers and expenditure 13 
1a. Refunds : Comparison between initial transfers and expenditure 
(1989) 14 
2. Breakdown of Guarantee expenditure by product group 23 
3. MCAs appl led to trade 25 
4. EAGGF Guarantee expenditure by economic type 26 
5. Breakdown of agricultural expenditure by economic type 27 
6. Book va I ue of pub I i c stocks 31 
7. Breakdown of expenditure by Member State, allowing for the impact 
of Article 10 of Regulation (EEC) No 1677/85 35 
8. Overall trend of EAGGF (Guarantee Section) expenditure 36 
9. Revenue under the common agricultural policy accruing as own 
resources of the Community 38 
10. Funds available to and expenditure by Member States for 1989 48 
11. Expenditure recorded in the Member States against the 1989 budget 
by type of f i nanc i ng 49 
12. Dates of submissions of clearance claims by the Member States 62 
13. List of appeals filed by the Member States 64 
14. List of reservations still outstanding after the clearance of the 
1983 accounts 67 
INDEX OF ANNEXES 
1. Summary of implementation for 1989 68 
2. Expenditure charged against the 1989 budget from 69 to 98 
3. EAGGF Guarantee expenditure by sector from 99 to 101 
4. Breakdown of expenditure by sector and economic category - 1989 ....102 
5. Breakdown of expenditure by sector and economic category 
(1984-1989) 103 
6. EAGGF Guarantee expenditure by sector and as percentage 
(1983-1989) 104 
7. Breakdown of EAGGF Guarantee of expenditure by economic category 105 
8. Breakdown of expenditure by economic category 106 
9. Breakdown of intervention expenditure in the form of storage costs 107 
10. Breakdown of intervention expenditure in the form of price compen­
sât I ng a i ds 108 
11. Quantity and value of products in public storage 109 
12. Overall cost of the Guarantee Section as a percentage of gross 
domestic product (GDP) 110 
13. Revenue from the co-responsibility levy on milk and allocation of 
proceeds among varIous schemes 111 
- IX -
Pages 
14. Equalization of storage costs for sugar 112 
15. Revenue from levies in the sugar sector 113 
16. Self-financing system In the sugar sector 114 
17a.-b. Advance payments to Member States for 1989 115-116 
18. Exchange rates - 1989 117 
19. Amounts withheld from production and consumption aid In the olive 
oil, fibre flax and grape Juice sectors and their utilization 118 
20. Irregularities reported and recovery situation (1989) 119 
21. Irregularities reported and recovery situation 120 
22. Breakdown by sum Involved and by Member State of communications 
made pursuant to Article 3 of R. (EEC) No 283/72 121-122 
23. Financial results of work on clearing 1987 accounts (including 
milk non-marketing and dairy herd conversion premiums) 123 

- 1 -
TITLE I 
COMMUNITY EXPENDITURE ON MARKETS 
1. GENERAL 
1.1. Financing of the common agricultural policy (CAP) in 1989 
In the early part of the 1970s, the financing of the CAP took place 
against the background of the very difficult budget situation facing 
the Community; this state of affairs resulted from the growing 
Imbalance between the limits placed on budget funds allocated to the 
EAGGF Guarantee Section and the increase in the volume of 
agricultural expenditure. 
The process of reform of the CAP began in 1983 and 1984 and gathered 
pace during the following years, culminating in the conclusions of 
the Brussels European Council of February 1988. 
The 1988 reform, which took practical shape in the decisions of 
24 June 1988 and the Inter-Inst I tut ional agreement signed on 29 June 
1988 between Parliament, the Council and the Commission, established 
a reinforced budgetary discipline capable of imposing effective 
control on expenditure by setting in particular a series of ceilings 
for the period 1988-92. 
With particular respect to the CAP, several measures were taken to 
stem the increase in agricultural expenditure, as described in the 
previous Financial Report (pages 3 et seq). 
1.2. 1989 budget and original appropriations 
The preliminary draft budget for 1989, sent by the Commission to 
budget authority on 13 June 1988, reflects the conclusions of the 
February 1988 European Council and seeks to see implemented the main 
features of the 1988 financial reform. With the advent of new 
elements since the prepartion of the preliminary draft, from the 
point of view of both revenue and expenditure (downward revision of 
EAGGF Guarantee Section requirements reflecting the movement of 
world agricultural prices and the production levels of certain 
products), the Commission sent to the budget authority on 25 October 
1988 amending letter No 1/89 In respect of the preliminary draft. 
Concluding a budget procedure whose smooth conduct reflects the 
positive results of the Inter-Inst I tutIonal agreement which entered 
into force on 1 July 1988, the 1989 budget was finally adopted on 
15 December 1988 (1). 
(1) OJ No L 26. 30 January 1989. 
- 2 -
For the EAGGF Guarantee Section, this budget provides for 
appropriations which originally totalled ECU 28 247.3 million, 
broken down as follows : 
ORIGINAL BUDGET 1989 
ECU 
European Agricultural Guidance and Guarantee 26.741.000.000 
Fund, Guarantee Section (Titles 1 and 2) 
Set-aside of arable land (Item 3900) 20.000.000 
* 
Common organization of the market in fishery 37.300.000 
products (Chapter 40) 
Depreciation of stocks and disposal of butter 1.449.000.000 
(Chapter 81) 
Total for Guarantee Section 28.247.300.000 
Added to the ECU 26 741 million entered under Titles 1 and 2 of the 
budget are the additional funds totalling ECU 1000 million from the 
monetary reserve entered in Chapter 102. The appropriations in this 
chapter are to cover any supplementary expenditure due to large or 
unforeseeable fluctuations in the USD-ECU exchange rate compared 
with the rate used in the budget and which exceed a margin of ECU 
400 million; they may also be increased by transfers from Titles 1 
and 2 if the USD-ECU parity evolves favourably, as was the case in 
1989. 
Supplementary and amending budget No 1/89 
This budget, adopted by Parliament on 13 April 1989 (1), does not 
affect the agriculture side and Involves only the appropriations 
required to ensure the commencement of operation, in September 1989, 
of the Court of First Instance of the European Communities. 
1.3. Transfers of appropriations and appropriations available 
Greatly dependent on external factors (weather, monetary situation, 
trends in international trade, size of harvests in non-member 
countries, general economic conditions), agricultural expenditure 
often does not coincide with initial forecasts; these, indeed, are 
outlined some twelve months before the beginning of the budget year 
in quest ion. 
However, with the recent introduction of the early warning system 
(cf. 18th Report, page 4), the Commission can now monitor more 
closely the trend of agricultural expenditure, chapter by chapter, 
act accordingly and thus ensure adherence to the agricultural 
guideline. Hence, certain adjustments had to be made throughout the 
budget year, according to the rate of utilization of the 
appropr iatIons. 
(1) OJ No L 132. 16 May 1989. 
- 3 -
Consequently the budget authority decided to make a number of trans­
fers totalling ECU 1 099.8 million, details of which are given in 
Table 1 (see above). As a result, the total amount of appropr iat ions 
aval I able for the EAGGF Guarantee Section for 1989 was reduced from 
ECU 28 247.3 million to ECU 27 147.5 m iI Ii on. The figures for the 
appropriations available and the original appropriations are, as is 
appropriate, lower than the agricultural guideline, which for 1989 
was set at ECU 28 624 million. 
1.4. Agricultural expenditure 
Taking into account, firstly, the reduction In expenditure of 
202,7 million by virtue of the clearance of accounts for 1988 and, 
secondly, the financial contribution of cereals producers (ECU 
799.3 mill Ion) and of milk producers (ECU 890.3 mi I I Ion), the total 
agricultural expenditure chargeable to the EAGGF Guarantee Section 
for 1989 and to the budget for that year amounted to ECU 
25 872.9 mi I I ion. It should be noted here that, unlike the two 
previous budget years, the 1989 budget year covered a period of 
twelve months from 16 October 1988 to 15 October 1989. A detailed 
analysis of the financing of the different sectors is given below 
(cf. points 2.1. and seq.). 
1.5. Fixing of farm prices and related measures for 1989/90 
On 22 April 1989, the Ministers of Agriculture reached agreement, 
formalized on 27 April and 3 May, on a I I the proposals relating to 
the fixing of farm prices and related measures for 1989/90. 
This agreement - not since 1984 have the price negotiations been 
concluded so early in the year - was achieved unanimously; it does 
not differ, on the key points, from the Commission's proposals and 
reaffirms the policies adopted In the most recent past : full appli­
cation of agricultural stabilizers, pursuit of a market-oriented 
policy, adherence to budgetary discipline, progressive elimination 
of MCAs with a view to their total abolition in 1992. The 
agreement <*) includes a standstill for prices in ECU, except for 
sugar, citrus fruits and wheat, whose prices were reduced. 
(*) The details of this agreement are contained in a special edition of 
"Green Europe" (1/89) featuring the decisions of the Council on farm 
prices for 1989/90. 
- 4 -
The Council also decided to step up measures to assist small produc­
ers or farmers in less-favoured regions, In particular in the case 
of durum wheat (increased aid for traditional production regions and 
extension to new regions in the case of Spain and Greece), olive oil 
(modification of the definition of small producer) and milk 
(abolition of the co-responsibility levy for less-favoured areas 
and, in other areas, adjustment according to the quantities pro­
duced) . 
The decision also involved a scaling-down of intervention in the 
case of cereals, rice and oilseeds (one month reduction) and a fur­
ther phasing-out of monetary compensatory amounts; the stabilizers 
arrangements were extended to apples and cauliflowers. 
The reductions in the co-responsibility levies in the milk sector 
are offset notably by a reduction in the intervention price for but­
ter (- 2 %). 
The increases in prices In national currency determined by the phas­
ing-out of the negative MCAs remain, on the whole, below the rate of 
inflation in the various countries concerned. 
1.6. Revision of the rules on sheepmeat and goatmeat 
In connection with its communication sent to the Council in August 
1987 on the application of agricultural stabilizers, the Commission, 
In September of the same year, presented a report, accompanied by 
proposals, on the operation of the common organization of the market 
in sheepmeat and goatmeat. This report concluded that the rules in 
respect of sheepmeat had made for inevitably slow progress towards 
the achievement of a single market and that, in view of the 1992 
target date, it was important to accelerate this process. 
Finalizing, after adjustments and amendments, the options contained 
In this report, the Commission presented in August 1989 a proposal 
for a regulation on the common organization of the market in 
sheepmeat and goatmeat, formalized in September as Council Regula­
tion (CEE) n° 3013/89<1>. 
The approach adopted is to lead - at the end of an transitional pe­
riod terminating not later than 1 January 1993 - to a single market 
involving a system of premiums based on the two principal types of 
production in the Community; firstly, production of sheepmeat in 
the form of heavy lambs and, secondly, milk-related sheepmeat 
production resulting in light lambs. A distinction is ultimately 
drawn not between areas (or regions), but between production 
systems, with different procedures for calculating the premium. 
(1) O.J. No L 289, 07.10.1989. 
- 5 -
1.7. Emergency operation in support of Poland 
Following the Paris (Arche) summit held on 14-16 July 1989 which no­
tably included discussion of the question of East-West relations, 
the "General Affairs" Council meeting on 17 and 18 July approved the 
guidelines proposed by the Commission concerning the substance of 
the operations envisaged and Its coordinating role In this sphere. 
Included In the three types of operation concerned Is the supply of 
food products to Poland, which will incorporate an emergency food 
a Id component. 
Finalizing this agreement, the "Agriculture" Council adopted on 
24 July Regulation (EEC) No 2247/89 (1) on an emergency measure for 
the free supply of certain agricultural products to Poland. 
For the purposes of Implementing this measure, the Community has put 
up for sale at a fixed price products from Intervention stocks and 
has also made available products to be disposed of following buying-
in operatIons. 
Under this Regulation, provision Is made for the supply to Poland 
of : 
- 500.000 tonnes of wheat of bread-making quality, 
- 300.000 tonnes of fodder cereals (maize» barley, rye), 
10.000 tonnes of beef/veal, 
5.000 tonnes of oIi ve oil, 
20.000 tonnes of citrus fruits. 
The cost of this operation Is estimated at ECU 110 million plus a 
further ECU 15-20 million in transport costs, the entire sum to be 
covered by the EAGGF*2). 
(1) O.J. No L 216, 27.07.1989. 
(2) in 1990, this measure was supplemented by : 
- a further emergency aid operation for Poland Involving 300 000 tonnes 
of wheat of bread-making quality (Regulation (EEC) No 457/90 of 12 
February 1990); 
- two similar operations in support of Romania : 
. the first Involving 62 500 tonnes of maize, 62 500 tonnes of 
rye, 2 500 tonnes of butter, 2 500 tonnes of olive oil and 10 
000 tonnes of beef/veal (Regulation (EEC) No 282/90 of 23 
January 1990), 
. the second Involving the same products and the same 
quantities (Regulation (EEC) No 456/90 of 22 February 1990). 
- 6 -
1.8. Distribution of agricultural products to disadvantaged persons In 
the Community 
During 1989, the Commission pursued its programme, launched during 
the winter of 1986-87, of food aid for disadvantaged persons. Based 
at present on Regulation (EEC) No 3730/87 of 10 December 1987,<1). 
this operation involves the supply to certain charitable organiza­
tions of foodstuffs from Intervention stocks for distribution to the 
most deprived persons in the Community. Distribution is made on the 
basis of an annual plan drawn up by the Commission based on Informa­
tion supplied by the Member States. 
For 1989, the appropriations earmarked for this purpose total ECU 
150 million (compared with ECU 100 million for the previous year) 
and the plan, adopted for 1989 following Commission Decision 
89/19/EEC of 23 December 1988,<2> divides between the various Mem­
ber States the financial resources required and indicates the quan­
tity of each type of product that may be withdrawn from intervention 
stocks for distribution. 
This information is contained in the following table : 
Member 
States 
Be I g i um 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Nether lands 
Portugal 
United King­
dom 
SUBTOTAL 
Reserve for 
Intra-Com-
munlty trans­
port costs 
TOTAL Amount 
in 
ECU mi I I. 
2,22 
2,04 
12,08 
12,37 
31,67 
25,52 
3,83 
22,45 
0,11 
3,01 
8,80 
22,90 
147,00 
3,00 
150,00 Quantity in tonnes 
Common 
wheat 
550 
17.250 
4.500 
30 
750 
-
-
23.080 Durum 
wheat 
4.600 
6.000 
8.500 
550 
-
-
19.650 01 ive 
oi I 
4.025 
850 
725 
-
-
5.600 Butter 
70 
3.875 
2.875 
2.300 
50 
850 
25 
300 
375 
4.075 
-
-
14.795 Beef/ 
veal 
800 
550 
3.000 
3.450 
4.200 
1 .450 
5.500 
20 
600 
1.725 
2.975 
-
-
24.270 
(1) 0 J No L 352, 15 December 1987. 
(2) 0 J No L 8, 11 January 1989. 
- 7 -
1.9. Set-aside measures 
In order to stabilize production by limiting supply and to ensure 
compliance with budgetary discipline, the European Council In Feb­
ruary 1988 agreed, in its conclusions, to introduce set-aside measu­
res for agricultural land as a supplement to the stabilizer mecha­
nisms and other market policy measures. 
The set-aside programme, and other structural provisions (extensifl-
cation and diversification), was defined In Council Regulation (EEC) 
No 1094/88 of 25 April 1988(1), which Incorporates these structural 
measures into Regulation (EEC) No 797/85 of 12 March 1985 on impro­
ving the efficiency of agricultural structures*2). The detailed 
rules for aid arrangements to encourage the set-aside of arable land 
are laid down in Regulation (EEC) No 1272/88(3), enabling Member 
States to apply set-aside from 1988/89 onwards. 
It was therefore not until the second half of 1988 that most Member 
States could bring their national rules Into line with those of the 
Community and put forward set-aside programmes. The Netherlands, 
the United Kingdom and the Federal Republic of Germany began apply­
ing the scheme in August 1988, Belgium In October 1988, Ireland, 
France, Spain and Greece In December 1988, Italy in February 1989 
and Luxembourg in April 1989. Denmark has not yet (in April 1990) 
applied the measure. Portugal is exempt until the end of 1994. 
Taking the Community as a whole, Initial results are more modest 
than expected, not to say disappointing. A total of 365,746 hecta­
res were set aside during 1988/89 of which almost 85 % were In three 
Member States : Germany, Italy and the United Kingdom. 
A breakdown by Member state of the first year's figures Is given in 
the table below. 
(1) O.J. No L 106, 27.04.1988 
(2) O.J. No L 93, 30.03.1985 
(3) O.J. No L 121, 11.05.1988 
- 8 -
1988 - 1989 
Member Number of Areas In 
States applicat. hectares 
Belgium 36 352 
Germany 24.469 165.125 
Spain 518 34.229 
France 1.002 15.707 
Ireland 77 1.310 
Italy 5.991 (1) 91.617 (1) 
Luxembourg 1 6 
Netherlands 195 2.621 
U.K. 1.750 54.779 
TOTAL 34.039 365.746 
(1) Provisional figures 
There are several reasons for these modest results : 
- the late Introduction of the scheme; 
- the Inadequacy of Member States' efforts to explain the scheme 
and Its benefits to farmers; 
- the low levels of aid paid by certain Member States which were 
not sufficient to compensate for the loss of Income resulting 
from set-aside. 
In addition, the land left fallow in almost all Member States was of 
a very low productive level. 
- 9 -
To make the set-aside measures more attractive and to revive the 
Community's policy on the withdrawal of land, the rates of reimbur­
sement of Member States' expenditure by the EAGGF were therefore in­
creased by Regulation (EEC) No 752/90<1>, which also provides for 
appropriate publicity In the Member States. The three aid bands 
were reduced to two : 
1) not exceeding ECU 300 per hectare, with a Community contribution 
of 60 %; 
2) between ECU 300 and ECU 600 per hectare, with a Community contri­
bution of 25 %. 
Under the above-mentioned Regulation, these figures are valid until 
31 December 1989. After that date the rates of reimbursement will 
be fixed by the Commission. 
1.10. The Impact of agricultural stabilizers on budgetary expenditure 
The guidelines adopted by the European Council meeting in Brussels 
on 11, 12 and 13 February 1988 and the subsequent decisions taken by 
the Council of Ministers were concerned to a great extent with agri­
culture. 
In particular, the introduction of stabilizers involved important 
changes to the rules on the common agricultural policy with a view 
to better control of agricultural production and the resulting bud­
getary expenditure. 
Although the effect of stabilizers on production cannot be assessed 
for several years, they began to have an impact on agricultural ex­
penditure in the 1989 financial year. Savings in 1989 due to stabi­
lizers are estimated at around ECU 1,140 mi 11 ion. This is essen­
tially the result of a reduction In prices and aid for oilseeds, 
protein crops, cotton and sheepmeat after the relevant maximum gua­
ranteed quantities (MGQs) were exceeded. 
It should be pointed out that the effect on the 1989 budget of the 
3 % reduction in cereal prices after the 1988 harvest exceeded the 
maximum guaranteed quantity was very slight owing to the fact that 
this reduction applies to the prices for the following marketing 
year which essentially affects the 1990 financial year. 
To this figure of ECU 1,140 million should be added, for the cereals 
and milk products sectors, receipts of ECU 655 million from the 
additional co-responsibility levies and ECU 957 mi 11 ion from the 
basic co-responsiblIIty levies. 
(1) O.J. No L 83, 30.03.1990 
- 10 -
In addition, the stabilization of milk production resulting from the 
introduction of quotas in 1984 and the improvement of the stock si­
tuation in 1987 and 1988 changed the situation on the world milk 
products market, producing a world price increase and consequent 
budgetary savings on export refunds of an estimated ECU 440 million 
for 1989. 
Considered in their widest sense, the application of measures to 
stabilize the agricultural markets produced an overall saving to the 
Community budget of an estimated ECU 3,190 million, equal to 13.1 % 
of total EAGGF Guarantee Section expenditure during the 1989 finan­
cial year (ECU 24,406 million). 
In other words, EAGGF Guarantee Section expenditure would have 
reached ECU 27,596 million without the application of stabilizers, 
leaving a margin of ECU 1,028 million compared with the 1989 
agricultural guideline (ECU 28,624 mi I I ion). 
Since this margin is smaller than the savings of ECU 1,220 million 
resulting from the upward movement of the dollar compared to the 
rate used in the budget, it is clear that the 1989 agricultural gui­
deline would have been exceeded without the application of agricul­
tural stabilizers and the favourable movement of the ECU/US dollar 
rate. 
1.11. Situation of Intervention stocks in the Community 
The systematic depreciation of stocks of agricultural products sold 
Into public intervention continued in 1989. Initially a total of 
ECU 1,878 million was specifically allocated to headings under 
Titles 1 and 2 for depreciation. 
To enable the depreciation of existing stocks of agricultural pro­
ducts as in the previous year, the 1989 budget provided for an 
appropriation of ECU 1,449 mi I I ion under Chapter 81, i.e. outside 
the agricultural guideline. This appropriation is to cover, on the 
one hand, the depreciation of existing agricultural stocks 
(ECU 649 million) and, on the other hand, the reimbursement of ex­
penditure arising from the special disposal of butter in 1987 and 
1988 which was financed in advance by the Member States 
(ECU 800 mill ion). 
Within the framework of these appropriations, the Commission carried 
out the following depreciations during 1989 : 
- 11 -
a) on the basis of Titles 1 and 2 of the budget 
ECU ml II ion 
PRODUCTS I DECISIONSI EXPENDITURE 
Cereals 553,245 553,245 
Butter 1,183 1,183 
Beef 270,143 270,143 
Tobacco 81,533 81,533 
OlIve oiI 0,427 0,427 
Oilseeds 0,981 0,981 
Skimmed milk powder 
Alcohol (public) 116,740 116,740 
Alcohol (mixed) (*) 151,325 151,325 
TOTAL 1.175,577 1.175,577 
(*) Part-payment of disposal costs 
(Art.37(2) of Regulation (EEC) No 822/87) 
b) on the basis of Article 810 
ECU ml I I ion 
PRODUCTS DECISIONS I EXPENDITURE 
Cereals 230,175 230,175 
Butter 70,271 70,271 
Beef 234,385 234,385 
Tobacco 17,282 17,282 
01 Ive oI I 
Oilseeds 11,739 11,739 
Skimmed milk powder 2,441 2,441 
Alcohol (public) 34,899 34,899 
Alcohol (mixed) (*) 48,993 48,993 
TOTAL 650,185 650,185 
(*) Part-payment of disposal costs 
(Art.37(2) of Regulation (EEC) No 822/87) 
Thus, allowing for the reduction In the quantities in storage, 
In two years there was a large reduction In the value of public 
Intervention stocks which fell from ECU 10,000 ml 11 Ion at the 
end of the 1987 financial year to ECU 1,000 million at the end 
of 1989. 
- 12 -
This considerable financial effort has been achieved two years 
ahead of plan and the residual value of stocks is today equal to 
their value on the world market. 
Potential losses have therefore been totally absorbed and the 
disposal of the quantities now in storage will Involve no addi­
tional expenditure from the Community budget. The quantities 
and values of stocks at the end of the 1989 financial year are 
given In Annex 11. 
TABLE No 1 
Original appropriations in the 1989 budget. 
appropriations available following transfers and expenditure 
(ECU all I ion) 
BUDGET CHAPTERS 
PRODUCTS 
10 Cereals and rice 
11 Sugar 
12 Oils and fats 
13 Protein plants 
14 Fibre plants 
15 Fruit and vegetables 
16 Nine 
17 Tobacco 
18 Other products 
20 M Ilk products 
21 Beef/vea1 
22 Sheepieat and goatieat 
23 Pigaeat 
24 Eggs and poultry 
25 Non-Annex II products 
SUB-TOTAL 1, Including 
- refunds (excluding food 
aid) 
- Intervention 
27 ACAs 
28 MCAs 
29 Other expenditure 
SUB-TOTAL 2 
39 Set-aside (••) 
40 Fisheries 
81 Depreclat. + disposal 
TOTAL Orlg. 
approps. 
1989 (•) 
(a) 
4.086 
2.051 
4.709 
706 
646 
1.221 
1.466 
975 
77 
4.720 
2.589 
1.454 
237 
221 
624 
25.782 
8.935 
16.847 
45 
370 
544 
26.741 
20 
37,3 
1.449 
28.247,3 Transfers 
(b) 
- 624 
0 
- 312 
0 
0 
- 120 
- 158,1 
+ 165 
•+ 7 
+ 300 
80 
0 
+ 35 
• 30 
0 
- 757,1 
0 
0 
- 332,7 
- 1.089,8 
0 
10,0 
0 
- 1.099,8 Approps. avail­
able following 
transfers 
(c) 
3.462,0 
2.051,0 
4.397,0 
706,0 
646,0 
1.101,0 
1.307,9 
1.140,0 
84,0 
5.020,0 
2.509,0 
1.454,0 
272,0 
251,0 
624,0 
25.024,9 
9.936,0 
45,0 
370,0 
211,3 
25.651,2 
20,0 
27,3 
1.449,0 
27.147,5 Expenditure 
froi 16.10.88 
to 15.10.89 
(d) 
3.261,4 
1.979,9 
4.138,1 
642,9 
600,7 
1.018,6 
1.147,7 
1.138,8 
83,8 
4.987,0 
2.428,5 
1.452,8 
261,0 
234,1 
552,1 
23.927,4 
41,4 
322,8 
111,4 
24.403,0 
3.0 
24,0 
1.442,9 
25.872,9 X of expendi­
ture in rela­
tion to orlg. 
appropriations 
(e) 
79.8 X 
96,5 X 
87.9 X 
91,1 X 
93,0 X 
83.4 X 
78,3 X 
116.8 X 
108.8 X 
105,7 X 
93.8 X 
99.9 X 
110,1 X 
105.9 X 
88.5 X 
92.8 X 
92.0 X 
87,2 X 
20,5 X 
91,3 X 
15.0 X 
64,3 X 
99,6 X 
91,6 X Difference between original 
appropriations and expenditure 
ECU il II ion 
(f)-(d)-(a) 
824,6 
71,1 
570,9 
63,1 
45.3 
202,4 
318,3 
+ 163,8 
+ 6,8 
+ 267,0 
160,5 
1.2 
+ 24.0 
+ 13,1 
71,9 
- 1.854,6 
3,6 
47,2 
432,6 
- 2.338,0 
17,0 
13,3 
6,1 
- 2.374,4 X 
(g)-(f)/(a) 
- 20,2 X 
3,5 X 
- 12,1 X 
8,9 X 
7,0 X 
- 16,6 X 
- 21,7 X 
+ 16,8 X 
+ 8,8 X 
• 5,7 X 
6,2 X 
0,1 X 
+ 10,1 X 
• 5,9 X 
- 11,5 X 
7,2 X 
8,0 X 
- 12.8 X 
- 79,5 X 
8,7 X 
- 85,0 X 
- 35,7 X 
0,4 X 
8,4 X I 
(*) Appropriations entered in the 1989 budget (OJ No L 26, 30.1.1989) and supplementary and aiendlng Budget No 1 (OJ No L 132, 16.5.1989). 
(**) Devolving exclusively upon the EA6GF Guarantee Section. 
(•••) Including a transfer of ECU 819 ill I Ion to the lonetary reserve (Chapter 102) following the appreciation of the US dollar. 
TABLE 1A 
Refunds (excluding food aid and fisheries) 
Comparison between Initial transfers and expenditure 
(1989) 
(ECU il I I Ion) 
PRODUCT GROUP (budget Iteis) 
Cereals (100) 
Rice (1040) 
Sugar (110) 
Olive oil (120) 
Oilseeds (125) 
Fresh fruit and veg. (1500) 
Processed fruit and veg.(1510) 
Nine (160) 
Tobacco (170) 
Milk and illk products (200) 
Beef (210) 
Sheep and goat leat (220) 
PIgieat (230) 
Eggs and poultry (240+241) 
Prod, not In Annex 11(250+251) 
TOTAL Initial 
approp-
rlatIons 
1989 
(1) 
2.640 
59 
1.420 
125 
24 
69 
18 
45 
49 
2.255 
1.209 
p.l. 
177 
221 
624 
8.935 Approp-
r iat ions 
(2) 
+ 115 
9 
+ 75 
0 
15 
0 
0 
+ 0,3 
+ 13,7 
+ 614 
+ 152 
0 
+ 25 
+ 30 
0 
+ 1.001 Approprlat ions 
ava I lab le 
after 
transfers 
(3) 
2.775 
50 
1.495 
125 
9 
69 
18 
45,3 
62,7 
2.869 
1.361 
p.l. 
202 
251 
624 
9.936 1989 
expend­
iture 
(4) 
2.597,1 
45,2 
1.451,3 
93,2 
5,8 
63,4 
15,3 
45,3 
62,0 
2.868,6 
1.343,1 
0 
199,0 
234,1 
552,1 
9.575,5 CoiparIson 
(expendIture/budget) 
(5) - (4) - (1) 
42,9 
13,8 
+ 31,3 
31,8 
18,2 
5,6 
2,7 
+ 0,3 
+ 13,0 
+ 613,6 
+ 134,1 
0 
+ 22,0 
+ 13,1 
71,9 
+ 640,5 98.4 X 
76,6 X 
102,2 X 
74,6 X 
24,2 X 
91,9 X 
85,0 X 
100,7 X 
126,5 X 
127,2 X 
111,1 X 
0 
112.4 X 
105,9 X 
88.5 X 
107,2 X 4>* 
I 
- 15 -
2. FINANCING OF THE MARKETS 
2.1. Comparison between original appropriations and expenditure in 1989 
Table 1 above gives a comparison between the original appropriations 
entered in the 1989 budget, appropriations available following 
transfers and expenditure against the 1989 budget, broken down by 
product group. Unlike the situation in 1987 and 1988, such 
expenditure covers a period of 12 months from 16 October 1988 to 15 
October 1989. 
From total original appropriations of ECU 26 741 million for Titles 
1 and 2, agricultural expenditure for the 1989 budget year amounted 
to ECU 24 403.0 mi I I Ion. 
The difference between the original appropriations and actual 
expenditure Is therefore ECU 2 338 million; this figure is however, 
reduced to a balance of ECU 1 248.2 million as a result of transfers 
totalling ECU 1 089.8 million. 
Before making a more detailed analysis of this situation, it should 
be emphasized that agricultural expenditure depends greatly 
throughout the year on external factors (weather conditions, size of 
harvests in non-member countries, effect of these two factors on 
stocks of Community agricultural products; trends in international 
trade, movements in the US dollar/ECU exchange rate, general 
economic conditions) and, therefore, does not coincide with the 
initial forecasts. 
These differences between original appropriations and expenditure, 
which can now be detected more quickly using the early warning 
system set up in April 1988 following the European Council meeting 
In February 1988, made it necessary to make adjustments to the 
appropriations between chapters throughout the budget year. 
The differences between the original appropriations and expenditure, 
i.e. ECU 2 338 million In total, result from two types of factor : 
A) "non-market" factors, i.e. ECU 1 604.4 mi I I ion, which represent 
the Impact of variations In the US dollar/ECU exhange rate, the 
result of the clearance of accounts for previous years, and food 
aid, 
B) "market" factors, totalling ECU 733.6 million, which represent 
the Impact of factors affecting the markets, including monetary 
movements within the EMS. 
- 16 -
The pattern of gaps between the two types of factors is as 
fol Iowes : 
CHAPTER GAP NON-MARKET 
FACTORS MARKET 
FACTORS 
10. Cereals 
11. Sugar 
12. OlIs and fats 
13. Protein plants 
14. Fibre plants 
15. Fruit and vegetables 
16. Wine 
17. Tobacco 
18. Other sectors 
20. Milk products 
21. Beef/veaI 
22. Sheepmeat and goatmeat 
23. Plgmeat 
24. Eggs and poultry 
25. Non-Annex II products 825 
71 
571 
63 
45 
202 
318 
164 
7 
267 
161 
1 
24 
13 
72 471* 
257* 
73* 
37* 
262* 
57* 
24* 
38* - 354 
- 71 
- 314 
• 10 
8 
- 202 
- 318 
+ 164 
+ 7 
+ 529 
- 104 
1 
+ 48 
+ 51 
- 12 
Subtotal - 1.854 - 1.219 - 635 
27. ACAs 
28. MCAs 
29. Other expenditure 4 
47 
433 Food - 183 
aid 
Clear.- 203 
of accounts 4 
47 
47 
TOTAL - 2.338 - 1.605 - 733 
* Impact of US do Ilar 
- 17 -
A) "Non-market" factors" 
The "non-market" factors have the following three components : 
A1) Impact of variations In the US dollar/ECU exchange rate 
(ECU - 1 219 mi 11 ion) 
The total savings achieved during the year as a result of the 
difference between the actual average US dollar/ECU exchange 
rate and the conventional parity adopted in the budget were 
estimated at ECU 1 219 million*1). 
Under the rules on budgetary discipline the fraction of such 
savings exceeding the "franchise" of ECU 400 million, i.e. 
ECU 819 million, was transferred to the monetary reserve 
(Article 102). Only the sum of ECU 400 million, representing 
the "franchise", therefore goes to make up the balance of the 
unutilized appropriations. 
A2) Result of the clearance of accounts for the preceding years 
(ECU - 202.7 mi I lion) 
The Commission decisions on the clearance of accounts for the 
preceding years resulted in the sums recovered from the 
Member States, ECU 202.7 million, being set off against 
budget year 1989. This sum appears in its entirety in the 
end-of-year surplus. The ECU -202.7 million reflects 
- the decisions taken in 1989 concerning the clearance of 
accounts for 1986 involving ECU - 207.7 million; 
- the corrections made to the clearance of accounts for 
previous years involving ECU 5 million. 
A3) The Movements of appropriations In connection with food aid 
(ECU - 182.7 mi I lion) 
The rise In world prices, associated with a slowing down of 
the 1989 food programme In terms of volume during 1989 due to 
the non- availability of sufficient commitment appropriations 
in Title 9 of the budget, resulted in an underutiIization of 
the appropriations earmarked for food aid refunds. A 
proportion of the unutilized appropriations, i.e. ECU 
182.7 million, was transferred to Chapter 92 of the budget. 
B) "Market" factors" 
With respect to the original budget, "market" factors resulted In 
an appropriation surplus totalling ECU 733 million; this sum 
represents the difference between the surplus or deficit of the 
various budget chapters concerned. 
(1) Cf. report on the impact on EAGGF Guarantee Section expenditure of 
movements of the dollar/ECU exchange rate : SEC(89) 1626 final, 
9.10.1989. 
- 18 -
Deficit chapters Surplus chapters 
13. Protein crops + 10 
17. Tobacco + 164 
18. Other products + 7 
20. Milk products + 529 
23. Pigmeat + 48 
24. Eggs and poultry + 51 10. Cereals - 354 
11. Sugar - 71 
12. OiIs and fats - 314 
14. F ibre plants - 8 
15. Fruit and veget. - 202 
16. Wine - 318 
21 . Beef/veaI - 104 
22. Sheapmeat and 
goatmeat - 1 
25. Non-Annex II - 72 
products 
27. ACAs - 4 
28. MCAs - 47 
29. Other expenditure - 47 
+ 809 - 1.542 
Total : ECU - 733 mi I I ion 
B1) Deficit chapters 
13. Protein crops: ECU + 10 mi I I ion 
The production of dried fodder for which aid was paid 
(approx. 2.7 million tonnes) exceeded by approximately 35% 
the budget estimate (2 million tonnes). 
17. Tobacco : ECU +• 164 ml I I ion 
The additional appropriation requirements which have become 
apparent and necessitated an increase in the original 
appropriation are due to the concurrence of a number of 
factors : 
- an increase in expenditure resulting from the changed 
monetary circumstances of the two principal tobacco 
producers : Italy and Greece; 
- the upward revision, notified in 1989 by the Member States, 
of the 1988 production level, which Increased the amount of 
the premiums to be paid for this harvest, with consequent 
Impact for 1989; 
- 19 -
- a catching-up in the payment of the balances of the 
premiums for the previous years and an acceleration of 
payments for the 1988 harvest compared with the rate of 
payments recorded In the past; 
- an increase in the quantities bought into intervention, 
estimated at 38 000 t for the current budget year compared 
with an average of 27 OOOt for the last three years. 
18. Other products : ECU + 7 million 
The budget had made provision for the payment, during the 
budget year, of production aid for hops in respect of a 
single year, namely 1988/89. For several years, in fact, the 
payment of aid In respect of the new marketing years did not 
commencé before 15 October. However, the payment of aid for 
1989/90 began this year, against all expectation, before this 
date. Hence, budget year 1989 had to cover expenditure in 
excess of the level corresponding to a single marketing year. 
20. Milk products : ECU + 529 million 
The volume of exports of milk products, notably of butter, 
cheese and skimmed milk powder, consequent upon an above-
quota volume of milk production, caused an expenditure 
surplus relative to the budget figure. This surplus was not 
fully offset by the full payment of additional milk levies. 
In addition, the Commission, during the budget year, took 
various management measures, notably to reduce the rates of 
refund and of aid. In spite of these measures and the reduced 
requirement for appropriations caused by the dollar/ECU 
exchange rate, the original appropriations had to be 
increased through an appropriation transfer. 
Note should be taken of high expenditure in respect of aid 
for casein by virtue of the large quantities for which aid 
was provided in 1989 (approx. 6.4 million tonnes compared 
with the 5.5 million tonnes scheduled in the budget). The 
impact of this increase in quantities far exceeded the impact 
of the reduction in the rate of the aid. 
23. Plgmeat : ECU + 48 million 
This chapter, exclusive of the dollar effect, experienced an 
increase in appropriation requirements by virtue of an 
increase in the volume of exports, and this despite the 
successive reductions In the refund rates. 
The advance fixing procedure postponed the downward effects 
of the reductions in the rates. 
24. Eggs and poultry : ECU + 51 million 
In spite of the successive reductions in the export refund 
rates, the volume of exports in respect of which refunds were 
paid during the year led to an increase in expenditure. 
- 20 -
As in the case of plgmeat, the impact of the reduction in 
refund rates was deferred by virtue of the advance fixing 
mechanism. 
B2) Surplus chapter 
10. Cereals : ECU - 354 million 
The key factors giving rise to this situation are the level 
of the 1988 harvest, lower than the budget estimate, and the 
high volume of exports achieved during the year which reduced 
the volume of cereals bought in and thereby lessened both the 
depreciation on the bought-In goods and the public storage 
costs. 
11. Sugar : ECU - 71 mi I I Ion 
In spite of the payment of export refunds for quantités 
exceeding those originally specified, the relative stability 
of world prices over the same period made possible an overall 
decrease in the budget expenditure in respect of the exports 
concerned. 
12. Oils and fats : ECU - 314 million 
In spite of the increase in expenditure on aid to encourage 
olive oil consumption, connected with the increase in the 
quantities in receipt of such aid, this chapter has included 
unutilized appropriations. 
This situation may be attributed to the fact that the payment 
of production aid experienced a certain delay during the 
budget year compared with the programme adopted in the budget 
and the Intentions expressed by the Member States, and this 
despite a sharp acceleration recorded at the end of the year. 
14. Fibre plants : ECU - 8 million 
The world market price for cotton proved to be in excess of 
original estimates, thus resulting in lower expenditure in 
respect of this product. 
15. Fruit and vegetables : ECU - 202 million 
Appropriation requirements were lower In this sector on 
account of the fact that withdrawals, particularly of citrus 
fruits, proved to be well below the level forecast. 
Another, less important factor was the fact that the 
quantities of processed products in receipt of production aid 
were also below the levels forecast. 
- 21 -
16. Wine : ECU - 318 million 
The underutI IIzaton of appropriations is primarily the result 
of a level of production In 1988 well below the budget 
forecast. 
In addition was the fact that neither compulsory distillation 
expenditure in respect of 1988/89, nor the depreciation of 
the alcohol produced, could yet be paid out of the 1989 
budget. 
It will be noted that although the envisaged sale of alcohol 
during the year did not occur, the appropriations earmarked 
to cover sale losses were however used to cover an 
exceptional depreciation of some ECU 101.6 million, thereby 
avoiding transfer of the potential loss to budget year 1990. 
21. Beef/veaI : ECU - 104 mi I I ion 
This situation derived from two factors : 
1) the fact that exports during the year, intervention 
buying-In and, consequently, expenditure to cover the 
depreciation of bought-in goods fell short of the 
relevant appropriations; 
2) the appropriations for financing the reform of the market 
organization for beef and veal, in paricular those 
relating to the anticipated increase in the suck 1er cow 
premium and the special premium and notably the extension 
of the latter to new Member States, were not utilized 
since the Impact of the reform on payments took longer to 
occur than expected. 
The large volume of exports decided on by the Commission 
caused an increase in refund expenditure, albeit within the 
level of the appropriations. 
25. Non-Annex 11 products : ECU - 72 mi I I ion 
The high level of world prices for basic agricultural 
products in 1988 and 1989 reduced the rate of refunds on such 
products and, accordingly, the rates of refund on the non-
Annex II products Incorporating them. 
28. MCAs : ECU - 47 mi I I ion 
The lower expenditure recorded reflects both the Impact of 
the dismantling of MCAs at the beginning of the 1989/90 
marketing years and the Impact on MCAs of the monetary 
changes during the budget year. 
- 22 -
29. Other expenditure : ECU - 47 million 
This chapter covers the financing of different measures. The 
lower expenditure recorded results chiefly from the existence 
of unutilized appropriations for the payment of refunds for 
certain quantities of food aid. In addition, at the end of 
the budget year, the programme involving the removal from 
intervention storage of agricultural products for the benefit 
of deprived persons had not yet been completed. Payments made 
in respect of this operation therefore fell short of the 
appropriations allocated. 
In conclusion, taking into account the share (50 %) attributable to 
the EAGGF Guarantee Section in the payments made in respect of the 
set-aside of arable land (ECU 3 million), the expenditure covered by 
the agricultural guideline amounts to only ECU 24 406 million, i.e. 
ECU 4 218 million below the ceiling set for the 1989 budget year 
(ECU 28 624 mi I I ion). 
- 23 -
Tabla No 2 
2.2. The agr1-monetary situation 
When adopting Its decision on prices and related measures for 
1989/90, the Council took the first step towards dismantling the 
real monetary gaps (RMGs) : 
(a) Negative gaps 
France : reduction by 2 points of the real monetary 
gap for all products, except for pigmeat and 
beef/veal where the existing residual gap 
was wholly eliminated 
Denmark : total elimination of the remaining RMGs for 
a I I products 
Ireland : reduction of the RMGs by 2 points for ail 
products except beef/veal where the RMG is 
totally eliminated 
Italy : dismantling of half the existing RMGs on 
1 January 1989 
United Kingdom : dismantling of half the existing RMGs on 
24 April 1989, except for beef/veal where 
all is dismantled 
Greece : dismantling by 16.5 points of the RMGs for 
all products, except sheepmeat 
Portugal : complete dismantling of the existing RMGs on 
24 ApriI 1989 
(b) Posit ive gaps 
FRG : dismantling by 0.4 points of the RMGs for 
products of animal origin 
Nether lands abolition of the RMGs for all products, 
except cereals 
Spain : dismantling of 1/3 of the RMGs in force on 
1 January 1989 for rice, olive oil, 
oilseeds, wine, fruit and vegetables, dried 
fodder and silkworms 
In June 1989 the peseta joined the EMS with a margin of fluctuation 
around the central rate of 6 %. 
In addition, on 21 September 1989 the Spanish peseta and the 
Portuguese escudo Joined the currencies which make up the ECU. - 24 -
- 25 -
TABLE 3 : MCAs APPLIED TO TRADE 
CURRENCY 
DM 
BFR/LFR 
HFL 
FF 
LIT 
UKL 
IRL 
DKR 
DRA 
PTA 
ESC PRODUCT 
Milk 
Cerea Is 
Other 
AI 1 products 
Ml Ik 
Cerea Is 
Other 
Mi Ik 
PIgieat 
Eggs and poultry 
Other aniial products 
Nine 
Other plant products 
PIgieat 
Eggs and poultry 
Cerea Is 
Wine 
Ol Ive ol 1 
Other products 
Milk 
Beef 
PIgieat 
Eggs and poultry 
Olive ol 1 
Wine 
Other plant products 
Ml Ik 
Beef 
PIgieat 
Eggs and poultry 
Olive ol1 
Wine 
Other plant products 
PIgieat 
Eggs and poultry 
Other aniial products 
Wine Other plant products 
PIgieat 
Eggs and poultry 
Other anlia 1 products 
Wine 
01 Ive ol1 
Other plant products 
PIgieat 
Eggs and poultry 
Other aniial products 
Wine 
Other 
Sugar 
i RATE REFERRED TO FOR THE 
1989 BUD6ET 
(OCTOBER '88) 
FROM 
15.08.88 
TO 31.12.88 
0 
0 
0 
0 
0 
0 
0 
- 3,5 
0 
0 
- 1 
- 1 
- 3,5 
- 1.6 
- 3 
- 6,5 
- 2,6 
0 
- 5,5 
- 8,2 
+ 1.8 
- 2,4 
- 6,6 
- 1.8 
- 9,7 
- 3,5 
- 2 
- 2,1 
0 
0 
- 3.6 
0 0 0 0 0 
- 22,5 
- 14,1 
- 33 
- 14,1 
- 9,1 
- 17,6 
0 
0 
0 
0 
0 
0 FROM 
01.01.89 
TO 14.08.89 
0 
0 
0 
0 
0 
0 
0 
- 2 
0 
0 
- 1 
0 
- 2 
0 
0 
- 4 
0 
0 
- 3 
- 5,9 
- 2,1 
0 
- 4 
0 
- 7.5 
- 2 
- 2 
0 
0 
0 
- 2,1 
0 0 0 0 0 
- 22,5 
- 14,1 - 33 
- H.I 
- 9,1 
- 17,6 
0 
0 
0 
0 
0 
0 RATES RECORDED 
RELATING TO 
1989 
MINIMA 
0 
0 
0 
0 
0 
0 
0 
- 3,5 
0 
0 
- 1.0 
- 1.0 
- 3.5 
- 1.6 
- 3,0 
- 6,5 
- 2.6 
0 
- 5.5 
- 9,1 
- 2.1 - 2.7 
- 7,2 - 2.2 0 - 10.7 
- 3,5 
- 2,0 
- 2,1 
0 
- 0,8 
Ô 
0 0 0 0 0 
- 22.5 
- 18.1 - 37,5 
- 18.1 - 30.7 
- 21,6 
0 
0 
0 
0 
0 
- 1.1 MAXIMA 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
- 1.9 0 
0 0 0 0 
- 3,6 
0 
0 
0 
0 
0 
0 
0 0 0 0 0 
- 16,3 
0 
- 18,6 
- 11,9 
- !»9 
- 3.1 
0 
• 1.7 
• 6.1 
• 1.7 
• 5.2 
0 
- 26 -
Table No 4 
TABLE No 5 
Breakdown of agricultural expenditure by economic type (1) 
(ECU million) 
Chapter 
10 Cereals and rice 
11 Sugar 
120 Olive oil 
125 Oilseeds 
13 Protein crops 
14 Fibre plants 
15 Fruit and vegetables 
- fresh 
- processed 
16 Nine 
17 Tobacco 
18 Other products 
20 Milk products 
21 Beef/veal 
22 Sheepmeat and goatmeat 
23 Plgmeat 
24 Eggs and poultry 
25 Non-Annex 11 products 
40 Fisheries 
27 ACAs 
28 MCAs 
TOTAL 
X Export refunds 
a 
2.721,0 
1.451,3 
93,4 
5,8 
63,4 
15,3 
45,3 
62,0 
2.922,2 
1.343,1 
199,0 
234,1 
552,1 
0,1 
5,9 
9.714,0 
35,3 X of which 
food aid 
a' 
78,7 
0,2 
53,7 
132,6 
0,5 X Storage 
b 
787,4 
421,6 
54,6 
6,2 
1.4 
0,5 
438,2 
121,6 
1.445,4 
907,5 
p.m. 
62,0 
0,1 
4.246,5 
15,4 X of which 
depre­
ciation 
b' 
764,2(3) 
0,4 
11,6(3) 
202,7(3) 
98,5(3) 
- (4) 
875,0(3) 
514,6(3) 
2.467,0 
9,0 X Price 
compen­
sating 
aids 
c 
842,0 
106,9 
1.316,8 
2.672,2 
642,9 
599,3 
148,1 
506,3 
91,3 
972,4 
83,8 
1.661,3 
381,8 
1.452,8 
14,3 
41,5 
265,7 
11.799,4 
42,9 X Other Intervention 
d 
285,0 
658,9 
775,7 
40,6 
9,5 
1.769,7 
6,4 X of which 
guidance 
premiums 
d' 
157,9 
775,7 
40,6 
974,2 
3,5 X Gross 
total 
e*a+b+c+d 
4.350,4 
1.979,8 
1.464,8 
2.684,2 
642,9 
600,7 
496,5 
522,1 
1.233,7 
1.156,0 
83,8 
6.804,6 
2.673,0 
1.452,8 
261,0 
234,1 
552,1 
24,0 
41,5 
271,6 
27.529,6 
100 % Co-
respons­
ibility 
levy 
f 
- 799,3 
- 890,3 
- 1.689,6 
- 6,1 X Budget 
expendi­
ture 
(2) 
g-e-f 
3.551,1 
1.979,8 
1.464,8 
2.684,2 
642,9 
600,7 
496,5 
522,1 
1.233,7 
1.156,0 
83,8 
5.914,3 
2.673,0 
1.452,8 
261,0 
234,1 
552,1 
24,0 
41,5 
271,6 
25.840,0 
93,9 X 
(1) Expenditure against the 1989 budget. 
(2) Before clearance of the accounts and not Including "Interest following changes in the method of financing", "Distribution free of charge", "Set-asi 
"Portion of MCAs granted on Imports (Itei 2810)". 
(3) Including depreciation on the basis of Article 810 (ECU 650,2 million : cereals ECU 211,0 mi 11 ion, oilseeds ECU 10,6 million, alcohol ECU 86,0 mil 
ECU 17,0 mi 11 ion, milk powder ECU 2,1 mi 11 Ion, butter ECU 79,0 million and beef ECU 244,5 million). 
(4) of which ECU 792,7 million representing the 1st tranche of reimbursement under the special butter disposal programme. de" and 
I ion, tobacco 
i 
-M* I 
- 28 -
2.3. Breakdown of expenditure by economic type 
On the basis of the total expenditure set against the 1989 budget, 
I.e. ECU 25 840 million**), expenditure on export refunds amounted 
to ECU 9 714 million (37.6 %) and on intervention to ECU 16 126 mil­
lion (62.4%) (see Annexes 4 to 10). Last year, set against the 1988 
budget, out of total expenditure of ECU 27 555 million, expenditure 
on refunds amounted to ECU 9 929 million(36 %) and on intervention 
to ECU 17 626 million (64%). 
2.3.1. Refunds 
The breakdown by product group shows that milk products accounted 
for 29.5% of total expenditure on refunds (1988:30.3%), cereals for 
27.2% (1988:30%), sugar for 14.9% (1988:15.7%) and beef for 13.8% 
(1988:7.7%). 
2.3.2. Intervent ion 
On the basis of expenditure against the 1989 budget, expenditure on 
Intervention related mainly to the following product groups: 
1988 1989 
- OiIseeds 16,7 % 16,5 % 
- Milk products 16,5 % 13,1 % 
- Sheepmeat and goatmeat 7,3 % 9,0 % 
- 01Ive oiI 5,0 % 8,5 % 
- Wine 8,5 % 6,8 % 
- Beef 9,6 % 6,7 % 
- Tobacco 5,2 % 6,7 % 
- Cereals and rice 7,6 % 3,8 % 
Intervention, broken down by the economic nature of the scheme 
concerned, consists of aid to public or private storage, withdrawals 
and similar operations, price compensating aids (which are in fact 
aids for the internal market) and guidance premiums. 
(*) Excluding the balance of the clearance of the accounts for 1986 
(-ECU 203 million) and the items covering Interest payments 
following changes in the method used for financing EAGGF expenditure 
(+ECU 48 million), distribution free of charge to the less well-off 
(+ECU 133 million), set-aside (ECU 3 million) and the portion of 
MCAs granted on Imports - Item 2810 (ECU 51.2 million). 
- 29 -
Compared with the total for Intervention (ECU 16 126 million), price 
compensating aids came to ECU 10 110 million (62.7%), aids to 
storage to ECU 4 247 million (26.3%), withdrawals and similar 
operations to ECU 795 ml 11 Ion (4.9%) and guidance premiums to 
ECU 974 million (6.1%). 
2.3.2.1. Price compensating aids remain the most Important type of 
Intervention. This heading groups aids granted on the internal 
Community market so that the price offered for consumption Is 
lower than the production price and is competitive with products 
Imported from non-member countries (for example, production and 
consumption aids for olive oil, aids for skimmed milk, production 
aids for processed fruit and vegetable products, etc.). 
This type of aid accounts for 62.7% of total intervention 
(1988:58.3%) and 39.0% of total expenditure set against the 1989 
budget, excluding clearance of accounts and miscellaneous 
expenditure (1988:37.3%). 
For 1989, the product groups benefitting most from price 
compensating aids were the following: 
1988 1989 
Oilseeds 2.945 2.672 
Sheepmeat and goatmeat 1.293 1.453 
Olive oil 795 1.317 
Tobacco 895 972 
Milk and milk products 1.517 771 
Fruit and vegetables 473 654 
Protein crops 689 643 
Annex 10, which gives the breakdown of those aids, shows that 
production aids are mainly granted for oilseeds (rape and 
sunflower), sheepmeat and goatmeat, tobacco, olive oil and 
protein crops. However, aids for processing and final 
consumption are concentrated on milk products (skimmed milk), 
olive oil and fruit and vegetables. 
- 30 -
2.3.2.2. Storage intervention, ECU 4 246.5 million, covers both private 
and public storage costs. It accounts for 26.5% of total inter­
vention (1988:33%) and 16.4% of total expenditure against the 
1989 budget, excluding clearance and miscellaneous expenditure 
(1988:21%). 
Details of this kind of expenditure are given in Annex 9. Based 
on a total of ECU 3 446.7 million, that is excluding reimburse­
ments to Member States for expenditure incurred in disposing of 
public butter stocks (ECU 792.7 million) and aid to Poland 
(ECU 2.7 million in cereals and ECU 4.6 million in beef), private 
storage costs came to ECU 849.1 million and public storage costs 
were ECU 2 597.6 mi I I ion. 
The cost of private storage may be mainly put down to sugar 
storage (ECU 423 million) but this is covered by the collection 
of storage levies from sugar manufacturers (see Annex 14); then 
come storage costs for milk products (ECU 185 million), beef 
(ECU 102 million) and wine products (ECU 67 million). 
A detailed analysis of public storage is given in 2.4. and in 
Annex 11. 
2.3.2.3. Withdrawals and similar operations affect only a limited number 
of sectors. They account for 4.9% of total intervention booked 
to the 1989 budget and 3.1% of total expenditure, clearance and 
miscellaneous expenditure excluded, compared with 5.1% and 3.3% 
respectively for 1988. 
2.3.2.4. Guidance premiums are granted only in the wine, milk and beef 
sectors. They account for 6.1% of total intervention and 3.8% of 
total expenditure booked to the 1989 budget, clearance and 
miscellaneous expenditure excluded. 
In the wine sector premiums are granted for permanent abandonment 
of land under vines, in the milk sector they are granted for 
permanent abandonment of milk production and as compensation for 
temporary suspension of milk quotas; in the beef sector, a calf 
premium is granted. 
- 31 -
Table No 6 
- 32 -
2.4. Trend of public stocks (see Annexes 9 and 11) 
Between 30 September 1988 and 30 September 1989, the date on which 
public storage accounts are closed, the book value of public stocks 
declined very sharply from ECU 4 663 million in 1988 to ECU 
1 612 million in 1989, a drop of ECU 3 051 million (65 %). By 
comparison, the book value of stocks on 30 September 1987 was ECU 
10 575 million. This encouraging development is the result of both a 
more dynamic disposal policy and of the depreciation exercise 
undertaken in 1988 and 1989. Owing to a lack of budgetary resources, 
no such exercise had been possible for agricultural products in 
1987, but in 1988 and 1989 the sums of ECU 2 611 million and ECU 
2 527 million respectively were available and of these ECU 
2 598 million and ECU 1 826 million were utilized in 1988 and 1989 
respectively. 
An initial scrutiny shows that the proportion of total book value of 
stocks accounted for by each of the most important sectors changed 
between 1987 and 1989 : milk products fell from 46.4 % in 1987 to 
13.1 % in 1988 and subsequently to 5.3 % in 1989, while cereals rose 
from 27.8 % to 32.4 % and subsequently to 53.8 %, oils and fats from 
4.6 % to 15.9 % and subsequently to 20.3 % and beef from 20 % in 
1987 to 34.2 % in 1988, subsequently falling to 15.3 % in 1989. 
More detailed analysis of the 1988 and 1989 figures shows the 
fol lowing : 
(a) Cereals 
An overall drop In stocks of 18 % (1988 : 10 951 600 tonnes, 
1989 : 8 962 900 tonnes). Stocks of non-breadmak ing common 
wheat, durum wheat and sorghum fell sharply, with a moderate 
fall in the case of barley; by contrast, the rise in stocks 
was sharp in the case of maize, average for rye and small for 
common wheat. 
A drop in the book value of cereals stocks of 42 % (1988: ECU 
1 509 mi I I ion, 1989: ECU 868 mi I I ion). This results in part 
from the 1989 stock depreciation exercise, which reduced the 
value by ECU 783.4 million. 
- 33 -
(b) 01 Is and fats 
A 66 % drop in stock quant It les (1988: 593 300 tonnes, 1989: 
199 100 tonnes), affecting not only olive oil and sunflower 
seed but in particular stocks of rapeseed which disappeared 
almost completely from store (1988: 37 974 tonnes, 1989: 132 
tonnes). 
The book value of these products likewise fell between 1988 
and 1989, by 56 % from ECU 743 million to ECU 327 million. 
For 1989, the depreciation amounts to ECU 13.2 million. 
(c) AIcohoI 
Comparison of the 1988 and 1989 figures shows an increase in 
quant Ity from 2 892 000 to 3 381 700 hectolitres, but there 
was a sharp drop in book value from ECU 136 mi I I ion in 1988 
to ECU 37 million in 1989, the amount written off as 
depreciation amounting to ECU 352 million. 
(d) Tobacco 
Total stocks rose by nearly 67 % from 46 600 tonnes in 1988 
to 77 600 tonnes in 1989. The increase was particularly large 
for baled tobacco (1988: 39 800 tonnes, 1989: 66 400 tonnes) 
and leaf tobacco (1988: 1 200 tonnes, 1989: 7 800 tonnes), 
but this was counterbalanced by a fall in stocks of processed 
tobacco. 
Total book value felI, however, by nearly ECU 23 million to 
only ECU 49 million in 1989. In fact this fall applied to 
baled tobacco only (1988: ECU 68 million, 1989: ECU 46 
million), as the book value of leaf tobacco rose between 1988 
and 1989. This situation resulted from a financial 
depreciation in the book value of stocks in 1989 to ECU 99 
mi I I Ion. 
(e) Milk products 
Stocks, which had collapsed completely between 1987 and 1988, 
continued to fall in 1989 from 14 000 tonnes to 5 000 tonnes 
of skimmed milk powder and from 221 000 tonnes to 32 000 
tonnes of butter. 
The book value of stocks of these two products Iikewise 
dropped considerably, from ECU 612 million in 1988 to ECU 85 
million in 1989. The value of skimmed milk powder and butter 
stocks was written down by a total of ECU 73.9 million. 
- 34 -
(f) Beef 
Quantities in stock also fell sharply In 1989 by 572 000 
tonnes (79 %), from 723 000 tonnes In 1988 to 151 000 tonnes 
In 1989. 
Book value also fell substantially by 84 %, from ECU 1 593 
million In 1988 to ECU 247 million In 1989. Both types of 
products in question were written down In the same 
proportions and the financial depreciation in 1989 amounted 
to ECU 504.5 million. 
- 35 -
2.5. Corrections to be made to the breakdown of expenditure by Member 
State in connection with monetary compensatory amounts (MCAs) 
Article 10 of Regulation (EEC) N° 1677/85 relating to monetary 
compensatory amounts in the agricultural sector provides that, when 
a product exported from one Member State has been imported Into a 
Member State which has to grant a monetary compensatory amount upon 
Importation, the exporting Member State may, with the agreement of 
the importing Member State, pay the MCA which should be granted by 
the Importing Member State. 
TABLE 7 
Breakdown of expenditure by Member State, 
allowing for the impact of the arrangement 
whereby exporting Member States may pay intra-Community MCAs 
for importing Member States 
(Article 10 of Regulation (EEC) N° 1677/85) 
MEMBER STATES 
Be I g i um 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
TOTAL MEMBER STATES 
COMMUNITY (2) 
TOTAL EEC EXPEND­
ITURE 
(1) 
585,80 
1.015,10 
4.191,70 
1.650,90 
1.903,20 
4.810,50 
1.241,30 
4,621,80 
1,80 
3.749,90 
174,40 
1,917,00 
25.863,40 
12,60 
25.876,00 IMPACT OF 
ARTICLE 10 
OF REG 
(EEC) 
N° 1677/85 
- 11,30 
- 23,50 
- 48,40 
0,00 
0,00 
- 120,70 
- 30,50 
161,40 
0,00 
- 27,10 
0,00 
100,10 
0,00 
0.00 
0,00 TOTAL 
574,50 
991,60 
4.143,30 
1.650.90 
1.903,20 
4.689,80 
1.210,80 
4.783.20 
1,80 
3.722,80 
174,40 
2.017.10 
25.863,40 
12.60 
25.876,00 
(1) Expenditure for 1989 Including impact of clearance of the 
accounts for 1986 and the cost to the EAGGF, Guidance 
Section of the set-aside of arable land (ECU 2.99 million). 
(2) Direct payments to recipients for Information and promotion 
schemes relating to olive oil, flax and hemp, and milk 
products. 
- 36 -
2.6. Overall cost of Guarantee Section 
2.6.1. Overall trend of expenditure 
TABLE 8 
OVERALL TREND OF EAGGF (GUARANTEE SECTION) EXPENDITURE 
TOTAL ANNUAL 
YEAR EXPENDITURE GROWTH 
* RATE 
ECU liI I Ion X 
1983 15.811,6 27.5 
1984 18.346,4 16.0 
1985 19.744,2 7,6 
1986 22.137.4 12,1 
1987 (1) 22.967.7 3,8 
1988 (2) 
Expenditure financed within the guideline (3) [26.400.4] [14,9] 
(ECU 27,500 li I I Ion) 
Total expenditure 27.687,3 20,5 
1989 
Expenditure financed within the guideline [24.406,0] [-7.6]** 
(ECU 28,624 ail Hon) 
Total expenditure 25.872,9 -6,6 
* Including lipact of clearance of accounts 
** Coipared with the 1988 guideline 
(1) Budget year 1987 (10 aonths) 
(2) Budget year 1988 ( 11 1/2 aonths) 
(3) The guideline Includes all agricultural expenditure charged to the EAGGF 
Guarantee Section, ilnus expenditure under Chapter 40 (coaion organiza­
tion of the aarket In fishery products) and Chapter 81 (depreciation of 
stocks and disposal of butter) 
- 37 -
2.6.2. Revenue of agricultural origin 
The common agricultural policy is also a source of revenue arising 
from charges made under the market organizations. These charges, 
which count as own resources of the Community, consist of : 
levies which are variable charges on imports, under the market 
organizations, of agricultural products from non-member countries; 
these charges are intended to offset the difference between world 
market prices and the price levels agreed for the Community-, 
levies imposed under the sugar market organization-, these levies 
consist of sugar and isoglucose production levies, sugar storage 
levies, sugar and isoglucose elimination levies and an additional 
elimination levy; they provide a means whereby farmers and sugar 
manufacturers finance the cost of the support measures in this 
market, and especially the cost of disposing of Community produce 
which is surplus to internal consumption requirements. 
Other receipts of agricultural origin are classed as intervention to 
stabilize agricultural markets and are accordingly directly deducted 
from expenditure for the year in the sector concerned. 
These receipts arise in the milk and milk products and cereals 
market organizations, producers making a financial contribution 
termed "co-responsibility levy" and, if milk production quotas or 
maximum guaranteed quantities are overrun, paying an additional 
levy. These receipts, which do not count as own resources of the 
Community, are considered a form of intervention to stabilize the 
agricultural markets and are charged within the budget chapter in 
which the expenditure has occurred. These funds help reduce the cost 
of disposing of surpluses and are also used, in the case of milk 
products, for financing specific measures. In 1989 these producers' 
contributions amounted to ECU 890 million in the milk sector and ECU 
799 million in the cereals sector. 
- 38 -
TABLE 9 
REVENUE UNDER THE COMMON AGRICULTURAL POLICY 
ACCRUING AS OWN RESOURCES OF THE COMMUNITY 
(ECU million) 
NATURE OF THE CHARGE 
Iiport levies 
Sugar levies, 
of which : 
- production (1) 
- storage costs 
TOTAL 1984 
1.260,0 
1.176,4 
708,4 
468,0 
2.436,4 1985 
1.121,7 
1.057,4 
548,5 
508,9 
2.179,1 1986 
1.175,5 
1.111,5 
612,3 
499,2 
2.287,0 1987 
1.626,1 
1.471,7 
924,6 
547,1 
3.097,8 1988 
1.504,6 
1.390,7 
845,9 
544,8 
2.895,3 1989 
1.282,5 
1.381,6 
• 
912,4 
469,2 
2.664,1 
(1) Including the elimination levy (ECU 68.3 million in 1986, ECU 87 million in 1987, 
ECU 94.1 million in 1988 and ECU 89.3 million in 1989) and the special elimination 
levy (ECU 234.2 million in 1987, ECU 110.8 million in 1988 and ECU 175.5 million in 
1989. 
Import levies, which mainly affect cereals, after rising in 1987 
fell more sharply in 1989 than in 1988 owing to an upward movement 
in world prices, which reduced their rates. 
The sugar levies were slightly lower in 1989 than in 1988, 
essentially because of a reduction in the unit amount of storage 
costs. 
2.6.3. Guarantee costs compared with GDP 
In a wider economic context, comparison of the overall cost of 
guarantee expenditure with the most significant economic indicator, 
viz. the Community's gross domestic product at market prices (GDP), 
shows (Annex 12) that, with due account taken of the relative 
durations of the 1987 and 1988 financial years, the gross cost of 
the Guarantee Section amounted to 0.59 % of GDP in 1989 against 
0.69 % in 1988 and 0.62 % in 1987. 
- 39 -
3. ADJUSTMENTS TO LEGISLATION GOVERNING THE EAGGF GUARANTEE SECTION 
During 1989, a number of adjustments were made to the legislation 
directly concerning the EAGGF Guarantee Section : 
- on 22 February the Commission adopted Regulation (EEC) No 439/89 
(1) amending Regulation (EEC) No 411/88 (2) of 12 Feburary 1988 
on the method to be used and the interest rates to be applied for 
the calculation of the cost of financing intervention in the form 
of buying-in, storage and disposal. This Regulation reflects the 
previously observed evolution of the interest rates. It fixes the 
uniform interest rate applicable to the Member States at 7.7 % 
instead of 7 %. However, for the period from 1 January to 
30 September 1989, the specific interest rate is fixed at 6 % for 
the Federal Republic of Germany instead of 5 %, and at 6,5 % for 
Luxembourg and the Netherlands instead of 7 % and 5.5 % 
respect ively; 
- on 20 March the CounciI adopted : 
Regulation (EEC) No 787/89 (3) amending Regulation 
(EEC) No 1883/78 (4) of 2 August 1978 laying down general 
rules for the financing of Interventions by the EAGGF 
Guarantee Section. As a result of this amendment, costs 
arising from special measures designed to guarantee the 
utilization and/or destination of products held by 
intervention agencies will in future be financed by the 
Community by means of standard amounts uniform throughout the 
Communi ty, 
Regulation (EEC) No 788/89 (3) amending Regulation 
(EEC) No 3247/81 (5) of 9 November 1981 on the financing by 
the EAGGF Guarantee Section of certain intervention measures, 
particularly those involving the buying-in, storage and sale 
of agricultural products by intervention agencies. This 
Regulation adjusts, inter alia, the method of calculating the 
prices to be repaid to the EAGGF Guarantee Section should the 
agricultural product taken into storage by an intervention 
agency have deteriorated or been destroyed; 
- on 13 April the Comlssion adopted Regulation (EEG) No 961/89 (6) 
amending Regulation (EEC) No 380/88 (7) drawing up the list of 
measures which comply with the concept of intervention Intended 
to stabilize the agricultural markets, within the meaning of 
Article 3(1) of Council Regulation (EEC) No 729/70 of 
21 April 1970.(8) This amendment consists of updating the list of 
the measures concerned; 
(1) 0J L 51, 23.02.1989, 
(2) 0J L 40, 13.02.1988, 
(3) 0J L 85, 30.03.1989, 
(4) 0J L 216, 05.08.1978 
(5) 0J L 327, 14.11.1981 
(6) OJ L 102, 14.04.1989 
(7) 0J L 38, 11.02.1988 
(8) 0J L 94, 28.04.1970 
- 40 -
on 19 April the Commission also adopted Regulation 
(EEC) No 1019/89 (1) amending Regulation (EEC) No 2275/88 (2) of 
7 September 1988 laying down detailed rules for the application 
of Article 5a of Council Regulation (EEC) No 729/70.(3) This 
Regulation increases the rates of interest repaid to the four 
least prosperous Member States of the Community (Greece, Spain, 
Ireland and Portugal) from 6.8 % to 7.7 X with effect from the 
beginning of budget year 1989; 
on 12 June the Commission adopted two Regulations concerning the 
public storage of agricultural products and its financing : 
Regulation (EEC) No 1643/89 (4) defining the standard amounts 
to be used for financing material operations arising from the 
public storage of agricultural products; it sets out various 
Improvements to the system, namely definition of the 
operations covered and a new rule concerning the method of 
calculation based on a weighting of the lowest real costs, 
with a view to aligning them with modern warehouse management 
costs; 
. Regulation (EEC) No 1644/89 (4) amending Regulation 
(EEC) No 411/88 on the method and the rate of interest to be 
used for calculating the costs of financing intervention 
measures comprising buying-in, storage and disposal; it 
establishes the rate for the ecu as the reference for fixing 
the uniform interest rate and lays down rules for applying 
weightings In respect of the different forward rates. 
These two Regulations were adopted following a detailed 
examination by a group of experts of the financing conditions for 
storage operations. 
on 24 July the CounciI adopted Regulation (EEC) No 2277/89 (5) 
amending Regulation (EEC) No 3247/81 (6) as regards the financing 
of the costs of disposal of alcohol provided for in Article 37(2) 
of Regulation (EEC) No 822/87 on the common organization of the 
market in wine. This amendment specifies the rules applicable in 
respect of the drawing-up of accounts for the disposal of 
a Icohol. 
on 8 September the Commission adopted the following three 
Regulations : 
. Regulation (EEC) No 2734/89 (8) on the factors to be taken 
Into consideration for determining expenditure pursuant to 
Article 37(2) of Council Regulation (EEC) No 822/87 (7) to be 
financed by the EAGGF Guarantee Section. This Regulation 
determines the cost of measures to dispose of the products of 
the distillation operations carried out under the common 
organization of the market in wine with effect from 
1 October 1987; 
(1) OJ L 109, 20.04.1989 
(2) OJ L 249, 08.09.1988 
(3) 0J L 94, 28.04.1970 
(4) OJ L 162, 13.06.1989 
(5) OJ L 218, 28.07.1989 
(6) 0J L 327, 14.11.1981 
(7) OJ L 84, 27.03.1987 
(8) OJ L 263, 09.09.1989. 
- 41 -
Regulation (EEC) No 2735/89 (1) amending Regulation 
(EEC) No 2776/88 (2) on data to be sent in by the Member 
States with a view to the booking of expenditure financed 
under the Guarantee Section of the EAGGF. This amending 
Regulation determines the detailed rules on the financing of 
the products of the distillation referred to in Article 37 of 
Regulation (EEC) No 822/87 (3) on the common organization of 
the market in wine and of the food products intended for 
distribution to the most deprived persons in the Community. It 
also specifies the period within which the material operations 
to be covered in the declaration of intervention expenditure 
must falI ; 
Regulation (EEC) No 2736/89 (1) amending Regulation 
(EEC) No 3744/87 (4) on the supply of food from intervention 
stocks to designated organizations for distribution to the 
most deprived persons in the Community. This Regulation 
stipulates that if an intervention price has not been fixed 
for a Member State the book value of the product intended for 
distribution is the intervention price for the Community of 
Ten-, 
on 29 September the Commission adopted the following two 
Regulations : 
Regulation (EEC) No 2963/89 (5) on the rate of interest to be 
used for calculating the costs of financing intervention 
measures comprising buying-in, storage and disposal. This 
measure, which replaces Regulation (EEC) No 439/90 of 
22 February (see above), fixes, before the beginning of 
financial year 1990, the uniform Interest rate for the 
financing of public storage; this rate Is 9.1 X compared with 
7.7 X for the previous year. However, in view of the evolution 
of interest costs in certain Member States, a specific 
interest rate has been fixed for them; this rate is 8.1 X for 
the Federal Republic of Germany instead of 6 X and 7.2 X for 
the Netherlands instead of 6.5 X; it is maintained at 6.5 X 
for Luxembourg and fixed at 8.7 X for France compared with 
7.7 X previously; 
Regulation (EEC) No 2964/89 (5) fixing depreciation 
percentages to be applied when agricultural products are 
bought in. The rules laid down provide for a systematic 
depreciation of agricultural products In two stages. This 
Regulation fixes, for 1990, the depreciation coefficients for 
each product, which will enable an initial depreciation 
instalment to be effected when the products are bought In. 
(1) OJ L 263, 09.09.1989. 
(2) 0J L 249, 08 09.1988. 
(3) 0J L 84, 27.03.1987. 
(4) 0J L 352, 15.12.1987. 
(5) 0J L 281, 30.09.1989. 
- 42 -
on 30 October, in the framework of Council Regulation 
(EEC) No 1883/78 of 2 August 1978 (1) laying down general rules 
for the financing of interventions by the EAGGF Guarantee 
Section, the Commission adopted Regulation (EEC) No 3271/89 (2) 
concerning the prices to be used for calculating the value of 
agricultural products in intervention storage, to be carried over 
to financial year 1990. The purpose of this Regulation, based on 
Article 7 of the abovementioned Council Regulation, is to 
organize the end-of-the year closure of accounts in respect of 
pub Iic storage; 
on 11 December the CounciI adopted Regulation (EEC) No 3757/89 
(3) amending Regulation (EEC) No 3247/81 on the financing by the 
EAGGF Guarantee Section of certain intervention measures, 
particularly those involving the buying-in, storage and sale of 
agricultural products by intervention agencies. With a view to 
the proper management of intervention, it is necessary to 
establish inventories of products stored at regular intervals in 
order to compare them with stock and financial accounts. This 
Regulation creates the legal basis for such inventories; 
lastly, on 21 December, the Council adopted Regulation (EEC) 
No 4045/89 on scrutiny by the Member States of transactions 
forming part of the system of financing by the EAGGF Guarantee 
Section. This Regulation replaces Directive 77/435/EEC (5) which 
provided for the same type of scrutiny. It forms part of the 
initiatives taken by the Commission in the context of measures to 
combat fraud and irregularities prejudicial to the Community 
budget and involves scrutiny, following payment, of the 
commercial documents of entitles receiving or making payments to 
the EAGGF Guarantee Section, with special emphasis on the 
prevention and detection of fraud and irregularities. 
(1) OJ L 216, 05.08.1978. 
(2) OJ L 317, 31.10.1989. 
(3) 0J L 365, 15.12.1989. 
(4) OJ L 388, 30.12.1989. 
(5) OJ L 172, 12.07.1977. 
- 43 -
TiTLE li 
CASH POSITION AND MANAGEMENT OF APPROPRIATIONS 
4. System of advance payments and adjustment thereof 
Council Regulation (EEC) No 2048/88 of 24 June 1988 amending Regulation 
(EEC) No 729/70 made permanent the system of monthly advances on entry of 
expenditure in the accounts and altered the cut-off date for the expenditure 
booked to each financial year. 
As a result the 1989 budget covered the payments entered in the accounts as 
made to recipients during the period 16 October 1988 to 15 October 1989. 
Unlike in the two previous years, it covers expenditure over twelve months. 
5. Advance payments to the Member States 
5.1. Decisions on advance payments In respect of 1989 
The Commission adopted 13 decisions, 12 of which were routine. 
An extraordinary advance to adjust the advances granted to total expenditure 
chargeable to the year was passed in December. 
5.2. Funds available and Member States' expenditure during the year 
Funds placed at the disposal of the Member States for expenditure chargeable 
to 1989 amounted to ECU 25,863.3 million : ECU 25,860.3 million for the Gua­
rantee Section and ECU 3.0 million for the Guidance Section. 
The extraordinary advance in December 1989 adjusted the advances granted to 
total expenditure chargeable to the year 
5.3 Direct payments 
In certain cases the Commission makes direct payments to operators in 
connection with certain schemes that are not conventional market measures 
but are intended to increase the scope for disposal of products, particular­
ly in the olive oil, flax, grape juice and dairy products sectors. They are 
financed by withholding a proportion of the aid to be paid to producers. 
Thus In 1989 the Commission paid directly to operators : 
a) ECU 6,050,416.93 from appropriations carried over from 1988; 
b) ECU 6,418,859.53 from appropriations for 1989. In addition, the sum of 
ECU 6,191,785.44 was committed in 1989 and carried over to 1990. 
- 44 -
Annex 19 gives for the various schemes an overall picture of the amounts 
withheld from producers in relation to expenditure and commitments. 
Other schemes are financed from sums withheld from aid and although the 
expenditure is financed by the paying agencies and does not therefore take 
the form of direct payments by the Commission it has been thought useful to 
include It in the Annex to make the position as regards amounts withheld and 
used clear. 
6. Management of appropriations 
The 1989 budget was adopted in December 1988 and was implemented without any 
significant problems. 
In July 1989, however, the Commission had to reduce the advances on entry of 
expenditure by ECU 140,625,158.89 following the non-payment of the additio­
nal co-responsibility levy in the milk sector by Member States. 
At the end of 1989 ECU 83,207,330.96 of this had been collected by Member 
States. 
The remaining total of ECU-57,417,827.93 was only committed and therefore 
carried forward automatically to be released as the 1989 levy was collected. 
6.1. Appropriations available 
The 1989 budget amounted to ECU 28,267.3 million including ECU 20 million 
under Chapter 39 for the Guidance Section and ECU 1,449 million under Chap­
ter 81 to cover losses of previously formed stock. 
Appropriations available 
Titles 1 and 2 26,741,000,000.0 ECU 
Chapter 39 including 50 X 
for the Guidance Section 40,000,000.0 ECU 
Fisheries (Chapter 40) 37,300,000.0 ECU 
Chapter 81 1,449,000,000.0 ECU 
TOTAL 28,267,300,000.0 ECU 
Transfers outside the EAGGF 
Food aid - 192,700,000.0 ECU 
Repayments to Spain and Portugal - 88,128,930.0 ECU 
Transfer to the monetary reserve - 819,000,000.0 ECU 
Total appropriations available 27,167,471,070.0 ECU 
- 45 -
6.2. Transfers of appropriations 
Pursuant to the conclusions of the European Council of 11 and 13 February 
1988 the Commission has improved its "Early Warning System" In connection 
with the surveillance of utilization of EAGGF Guarantee Section approprIa-
tIons. 
In its anxiety wherever possible to adjust appropriations before exhaustion 
of one or more chapters, the Commission on two occasions. In June and Sep­
tember 1989, proposed transfers of appropriations from chapter to chapter so 
that appropriations would be available before payment of advances against 
entry In the accounts. 
A final transfer In November 1989 was made necessary, however, by unforeseen 
developments in the tobacco sector and certain early payments In the hop 
sector. 
Transfer to the monetary reserve 
Council Decision 88/377/EEC of 24 June 1988 concerning budgetary discipline 
lays down an annual monetary reserve of ECU 1,000 million to cover the con­
sequences of significant and unforeseen movements In the US do Mar/ECU rate 
compared to the rate used In the budget. 
Movements In the rate produced a saving of ECU 1,219 million in EAGGF Gua­
rantee Section expenditure during the 1989 financial year. 
After taking account of the franchise of ECU 400 million provided for in the 
Decision on the monetary reserve, a transfer of ECU 819 million was made In 
Chapter 102. 
Transfers totalling ECU 537 million were made within Titles 1B and 2B during 
the 1989 financial year. The following transfers outside the EAGGF Guaran­
tee Section were also made : 
- ECU 192.7 million to Chapter 92, of which 
ECU 10.0 million were from Chapter 40, 
- ECU 88.13 million to Chapter 86, 
- ECU 819.0 million to the monetary reserve, 
making a total of ECU 1,099.83 million. 
Significant additional amounts were required for the dairy products, 
tobacco, plgmeat and eggs and poultry sectors (see above 2.1.B1.). 
Expenditure was considerably lower in the cereals, oils and fats, wine, 
fruit and vegetables and beef and veal sectors (see above 2.1.B2.). 
- 46 -
6.3. Expenditure 
A total of ECU 25,875,9 million was charged to 1989 (of which 
ECU 2,992 million were charged to the Guidance Section under Chap­
ter 39). 
This sum breaks down as follows : 
- expenditure claimed by the Member 
States (including ECU 1,442.8 million 
for depreciation of old Intervention 
stocks and disposal of butter) ECU 26,066.0 million 
- impact of clearance of accounts 
for 1986 and earlier years ECU - 202.7 million 
- direct payments ECU 12.6 million 
ECU 25.875,9 mi I I ion 
The breakdown in Table 10 below can in no circumstances be treated as a 
reliable indication of the actual shares of the Member States, since 
payment deadlines can vary widely from one Member State to another and 
since expenditure by paying agencies in any given Member State is not 
necessarily attributable to that State, the Community being a unified 
economic area for agricultural products. This, for example, certain 
export refunds for products from one Member State are in fact paid by 
another Member State. 
6.3.1 Budget operat ions 
6.3.1.1. Commitments 
- Global provisional commitments corres­
ponding to advance payments made to 
Member States in respect of 1989^1) 
- Commitments for the abandonment 
premium (wine) 
- Commitments for direct payments 25,705,414,044.36 ECU 
157,911,583.07 ECU 
12,610,644.97 ECU 
25,875,936,272.40 ECU 
6.3.1.2. Sums charged as payments 
The sums charged as payments totalled ECU 25,927,162,314.89. The dif­
ference of ECU 51,226,042.49 vis-à-vis the itemized commitments corres­
ponds, on the one hand, to the appropriations committed to direct 
expenditure by the Commission that had not yet occurred by the end of 
the year and, on the other hand, to the balance of the milk levy al­
ready entered for the 1989 financial year but not yet received by the 
Member States. 
(1) Including the impact of the clearance of the accounts for 1986 and the 
advances withheld owing to the non-receipt of the additional milk levy. 
- 47 -
6.4. Carryover of appropriations 
The following appropriations committed for the 1989 financial year were 
automatically carried over to 1990. 
Direct payments 
Item 1221 (olive oil) 4,557,412.44 ECU 
Item 1401 (fibre flax) 1,634,373.00 ECU 
6,191,785.44 ECU 
Collection of the additional milk levy 
Item 2071 - 57,417,827.93 ECU 
Of these ECU 11,223,740.40 of 1988 appropriations automatically carried 
over to 1989, ECU 6,050,416.93 were used. The balance of 
ECU 5,173,323.47 lapsed. 
6.5. Summary of execution of 1989 Budget 
The 1989 financial year closed with a balance of ECU 1,291,534,797.60 of 
unused appropriations lapsing. 
Three factors need to be considered : 
1) the effect of a stronger US dollar than foreseen in the budget; 
2) transfers of appropriations connected with food aid. The 1989 
Implementation programme was executed slowly as regards volume; 
3) the budgetary impact of the clearance of the accounts. 
Execution of the EAGGF Guarantee appropriations in the 1989 budget, 
including fisheries, can be summarized as follows : 
Original budget 28,267,300,000.00 ECU 
Transfers outside the EAGGF-Guarantee - 1,099,828,930.00 ECU 
Appropriations available 27,167,471,070.00 ECU 
Sums charged as payments 25,927,162,314.89 ECU 
1.240,308,755.11 ECU 
Appropriations committed and automati­
cally carried forward to 1990 - (-) 51,226,042.49 ECU 
Appropriations lapsed 1,291,534,797.60 ECU 
TABLE 10 
FUNDS AVAILABLE TO AND EXPENDITURE BY MEMBER STATES FOR 1989 
(In ECU) 
Member States 
Belglui 
Deniark 
Geriany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxeibourg 
Netherlands 
Portugal 
United KIngdoi 
TOTAL EEC Advance payients 
In 1989 
(a) 
585.838.047 
1.015.081.252 
4.191.659.824 
1.647.176.728 
1.889.793.946 
4.739.050.001 
1.241.333.226 
4.552.589.816 
1.845.570 
3.749.891.719 
174.365.375 
1.916.935.825 
27.705.581.327 Exchange differences 
(1) 
(b) 
24 
70 
615 
149.497 
34.771 
10.679 
11.890 
11.959 
72 
1.934 
26 
28.737 
147.283 Total ava I lable for 
1989 
Cc) • (a) + (b) 
585.838.071 
1.015.081.322 
4.191.659.209 
1.647.027.231 
1.889.759.174 
4.739.080.680 
1.241.321.335 
4.552.601.775 
1.845.498 
3.749.889.785 
174.365.402 
1.916.964.562 
25.705.414.044 Expenditure charged 
to 1989 
(d) 
585.838.071 
1.015.081.322 
4.191.659.209 
1.647.027.231 
1.889.759.174 
4.739.060.680 
1.241.321.335 
4.552.601.775 
1.845.498 
3.749.889.785 
174.365.402 
1.916.964.562 
25.705.414.044 (2) 
(1) For each Meiber State there Is a discrepancy between the balance at the end of each aonth as converted Into ecus at that 
•onth's rate and the saie balance as converted Into ecus at the following lonth's rate. This table shows the sui of the 
exchange differences recorded for each Meiber State for the whole of 1989. 
(2) Not including direct payient of ECU 12,610,644.97, or the payient of ECU 157,911,583.07 (to Greece, Spain, France and Italy) 
as permanent abandonment preiluis In respect of areas under vines. 
- 49 -
TABLE 11 
EXPENDITURE RECORDED IN THE MEMBER STATES AGAINST THE 
1989 BUDGET BY TYPE OF FINANCING 
MEMBER STATES 
Be I g Ium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Nether lands 
Portugal 
Untd Kingdom 
TOTAL M.S. 
DIRECT 
PAYMENTS 
MCAs third 
country imports 
(2) 
TOTAL EEC REFUNDS 
198,1 
710,6 
1.635,9 
97,5 
322,0 
2.156,1 
540,5 
615,8 
1,5 
2.774,8 
5,0 
656,0 
9.713,8 
0,0 
51,2 
9.765,0 INTERVENTION 
395,6 
304,1 
2.581,7 
1.591,2 
1.580,5 
2.742,9 
702,4 
4.087,4 
0,3 
976,4 
169,3 
1.166,2 
16.298,0 
12,6 
0,0 
16.310,6 
(1) TOTALS 1989 
ECU 
mi I I ion 
593,7 
1.014,7 
4.217,6 
1.688,7 
1.902,5 
4.899,0 
1.242,9 
4.703.2 
1,8 
3.751,2 
174,3 
1.822,2 
26.011,8 
12,6 
51,2 
26.075,6 
(3) % 
2,28 
3.89 
16,17 
6,48 
7,29 
18,79 
4,77 
18,04 
0,01 
14,38 
0,67 
6,99 
99,75 
0,05 
0,20 
100,00 
(1) Including "interest accrued as a result of the reform of the 
financing method (ECU 48.5 million), "free distribution of 
Intervention products" (ECU 132.9 million) and "set-aside 
"(ECU 3 mi I lion)". 
(2) MCAs granted on imports - Item 2810 (ECU 51,2 million) 
(3) This does not take into account the financial impact of the 
clearance of accounts for 1986 and previous years 
(-ECU 202.7 mil lion). 
- 50 -
TITLE HI 
INVESTIGATIONS, IRREGULARITIES AND RELATED WORK 
7.1. General remarks 
The application of Community rules is the responsibility of national ad­
ministrations. It is their task to check that operations financed by the 
EAGGF Guarantee Section did actually take place and in accordance with 
requirements, and to forestall and pursue Irregularities and recover sums 
wrongly paid out. 
The Commission's role is to encourage, coordinate and monitor. It supple­
ments the control work of the national administrations on the basis of 
legal instruments (see point 7.2.) that, apart from checks for clearance 
of accounts purposes, allow it to ask Member States to open administrative 
enquiries, to proceed itself to verification, and to organize selective 
checks (these ge/ierally cover all Member States and are connected with the 
problems of a particular sector - see point 7.3.). 
Member States inform the Commission of irregularities uncovered by their 
national agencies (see point 7.4.), of the financial implications and of 
the progress of national procedures for recovery (see point 7.5.). 
Arrangements for contact between the Member States and between them and 
the Commission exist in order to increase the effectiveness of the fight 
against fraud (see points 7.6. and 7.7.). 
Controls have been stepped up In the olive oil sector by the establishment 
of special agencies in the producer Member states (see point 7.8.). 
Regulation (EEC) No 4045/89^1^ steps up a posteriori controls by Member 
States of measures financed by the EAGGF Guarantee Section (see 
point 7.9.). 
Within the framework of measures to prevent fraud and irregularities, the 
controls laid down in Community rules on the CAP were examined with a view 
to their harmonization (see point 7.10.). 
7.2. Special checks and Investigations 
The Commission has two legal instruments under which checks and investi­
gations may be made : 
a) Article 9 of Regulation (EEC) No 729/70 enabling It to make any checks 
that it deems necessary, Including on-the-spot checks. Officials of 
the Member State concerned may take part In these checks; 
(1) OJ No L 318, 30.12.1989, p. 18 
- 51 -
b) Article 6 of Regulation (EEC) No 283/72 enabling It to request the Mem­
ber State to investigate a specific matter If It considers that Irregu­
larities may have or have in fact occurred In the course of operations 
financed by the EAGGF Guarantee Section. Commission officials may par­
ticipate in the investigation. 
The Commission may also ask the Member States concerned for Information 
and make Information visits In that connection. 
7.2.1. In 1989, 16 cases of detected or presumed Irregularities gave rise to 
24 investigations carried out in the Member States by Commission staff : 
1) In Spain and Italy Into measures In the olive oil sector; 
2) In Italy Into refunds for the export of beef to Malta; 
3) In Germany, France and Ireland into private storage aid for beef; 
4) In Spain and the United Kingdom into export aid for sheepmeat (Inclu­
ding clawback); 
5) in Spain and Greece into ewe premiums; 
6) in Italy Into processing aid for butter and butteroll; 
7) in Italy into aid to the citrus fruit sector; 
8) in Italy and Germany into the set-aside of arable land; 
9) In Ireland and Germany Into exports of beef to Togo and Zaire; 
10) In France and the Netherlands Into exports of agricultural products; 
11) In Greece into durum wheat Intended for export to Madeira but diverted 
to Portugal ; 
12) in Greece Into production aid for durum wheat; 
13) In the Netherlands Into the public storage of butter by NIZO; 
14) In Italy into the quality of beef bought in; 
15) In Italy into aid for the withdrawal of fruit and vegetables; 
16) In France into the export of cereals to several African countries. 
As a resuit of the findings of the Investigations in Italy Into Interven­
tion In the olive oil sector (point 1), the Commission's departments 
refused to finance the measure for part of 1987 and for almost the whole 
of 1988. 
Checks in France and the Netherlands on the procedures for the export of 
agricultural products receiving refunds (point 10) showed that existing 
checks are insufficient to guarantee that these operations have actually 
taken place In a correct manner and contain serious deficiencies which 
should be corrected as soon as possible. 
It should be pointed out that on 12 February 1990 the Council adopted 
Regulation (EEC) No 386/90(1) laying down a minimum number of physical 
checks to be carried out at the time of export of agricultural products 
receiving refunds or other amounts (minimum number of checks based on the 
number of export declarations : 1990 - 3 X; 1991 - 4 X; from 01.01.1992 -
5 X). 
(1) 0J No L 42, 16.02.1990, p. 6 
- 52 -
The results of the on-the-spot checks In Greece on production aid for 
durum wheat (point 12) showed that the system of checks set up by the 
Greek authorities cannot guarantee that the areas for which Community aid 
has been applied for have In fact been sown. 
In numerous cases the Community inspectors found that the areas declared 
did not exist and that the areas declared tended to be larger than the 
areas actually cultivated. 
The failures of the inspection arrangements were so marked that, in addi­
tion to the measures to be taken by the Member State on detected cases of 
fraud, the EAGGF is to propose to the Commission that financial 
adjustments be made when the accounts are cleared. 
The other Investigations are continuing and the financial consequences 
cannot yet be calculated. 
7.2.2. A certain number of investigations begun by Member States before 1989 were 
cont inued. 
In view of their importance, the action taken with regard to the following 
investigations carried out by Commission staff is given below : 
- Intervention buying of wine containing methanol, 
- soya production aid, 
- premiums for the maintenance of suck 1er herds. 
Wine containing methanol - various Member States (1987 EAGGF Report, p. 42 
and 1988 EAGGF Report, p. 47) 
This affair began in Italy in 1986. In 1986 and 1987 the EAGGF organized 
numerous on-the-spot checks Involving the taking of wine samples which 
were analysed In laboratories designated by the Commission. 
The results were as follows : 
- almost all the adulterated wines had left the production stage and were 
therefore no longer eligible for the EAGGF aid intended for producers; 
the total of ECU 159,100 of aid wrongly paid out was recovered; 
- the analyses were unable to show any definite cases of wine not in 
accordance with the requirements; 
- as a result of the checks the Italian authorities considerably improved 
their control arrangements. 
Soya investigations - Italy (1988 EAGGF Report, p. 47) 
The conclusions of the investigations were sent to the Italian authorities 
In May 1989. Following their reply, a meeting was organized in the con­
text of the clearance of the accounts. The EAGGF is awaiting a response 
from the Italian authorities to clear up some of the points discussed at 
the meeting before drawing up a proposal for an adjustment within the 
clearance of accounts procedure. 
- 53 -
The new Commission Regulation (EEC) No 2537/89 on the special measures for 
soya makes extensive amendments to the control arrangements In the soya 
sector on the basis of experience gained during the Investigations. 
Suck 1er cows - Italy (1988 EAGGF Report, p. 48) 
The results of the investigations were sent to the Italian authorities at 
the same time as the EAGGF request for a considerable strengthening of the 
control arrangements in this sector. At the same time, It was decided 
that, In those regions where there was a discrepancy between statistics on 
eligible livestock and the total applications for payment of the premium, 
payments would be limited to a maximum calculated from the I STAT statis­
tics. 
During discussions held with the Italian authorities In the context of the 
clearance of the accounts the Italian delegation expressed their intention 
of strengthening and intensifying controls In this sector. The EAGGF 
wrote requesting details of the new arrangements and is awaiting a reply. 
A proposal for a financial adjustment under the clearance of accounts 
procedure will be drawn up shortly. 
7.2.3. As well as continuing national Investigations the Member States concerned 
were requested In 1989 to open Investigations Into the export of beef to 
South Africa, of dairy products and cereals to several African countries 
and of olive oil of Greek origin. 
7.2.4. Finally, at the end of 1989, an inspection and fact-finding mission to 
Poland was organized in connection with the food aid programme decided 
upon by the Community. 
7.3. SelectIve checks 
Between May and November 1989 Financial Control carried out selective 
checks on the granting of the premium for sheepmeat producers. The aim 
was to verify that the various types of on-the-spot checks actually took 
place, with particular attention to the problems of counting and Identi­
fying sheep. 
Visits were made to all the Member states, accompanied by the responsible 
staff of the EAGGF Guarantee Section in three of them. 
The summary report on these checks Is being drawn up. 
7.4. Irregularities detected 
These are notified quarterly to the Commission pursuant to Articles 3 and 
5 of Regulation (EEC) No 283/72. Details of notifications in 1989 are 
given In Annex 20. 
- 54 -
7.4.1. Irregularities detected and notified 
ECU 
mi I I ion 
of which 
recovered 1971-1979 
16,63 
5,45 1980-1984 
85,91 
18,06 1985 
22,25 
2,49 1986 
29,84 
4,38 1987 
91 ,35 
3,25 1988 
154,94 
3,44 1989 
154,30 
10,71 
7.4.2. Attention is also drawn to the fact that the sums involved in individual 
cases notified by the Member States vary very widely and it is therefore 
necessary to break them down by category. Some 5 X of the cases accoun­
ted for 74 X of the amounts wrongly paid whereas 40 X accounted for 1 X. 
This variance arises from the fact that communications pursuant to Ar­
ticle 3 of Regulation (EEC) No 283/72 cover all irregularities, ranging 
from simple cases with no financial implications, or involving an amount 
already recovered at the time of notification, to fraud on a massive 
scale. The figures are broken down in the table in Annex 21. 
7.4.3. For 1989, the breakdown by Member State of irregularity cases affecting 
EAGGF funds is : 
Nuaber 
of cases 
Anount 
in ECU 
• il I ion 
Average/ 
case 
(In ECU 
• III ion) B 
6 
0,023 
0,004 D 
71 
18,064 
0,254 DK 
27 
13,096 
0,485 EL 
3 
0,043 
0,014 ES 
13 
0,341 
0,026 F 
121 
6,247 
0,052 IRL 
11 
0,212 
0,019 1 
242 
99,311 
0,410 L 
1 
-
-NL 
73 
12,584 
0,172 P 
-
-
-UK 
161 
4,400 
0,027 TOTAL 
729 
154,321 
0,213 
A preliminary critical analysis of the reliability of the figures provided 
by each Member State can be made by comparing the number of irregularities 
notified by them and the amounts involved. It seems unlikely that the 
differences in the figures notified by the Member States reflect the 
actual situation as regards fraud and irregularities. The EAGGF will pay 
particular attention to this problem. 
7.4.4. In 1989, the number of Irregularity cases Increased considerably compared 
with 1988, although the amount paid out wrongly was unchanged. 
- 55 
During 1989, 118 cases each involving more than ECU 100,000 were notified, 
accounting for 93 X (ECU 144,267,000) of the total sum Involved in all 
notified cases together. Since most of these cases unmistakably involve 
fraud It Is on them that the Commission will concentrate In 1990. 
The detailed breakdown Is given In the table In Annex 22. 
7.5. Recovery of amounts wrongly paid out 
As shown in Annex 20, by the end of the 1989 financial year there had been 
recoveries in 287 cases, 40 X of the total number notified during the 
year. The amount of ECU 10.7 million recovered was only 7 X of the total 
amount to be recovered for the year. The reason for this Is that, where 
the sums involved are large, operators normally explore all legal defences 
and the recovery procedure Is generally suspended pending the outcome. 
Annex 21 gives, for 1971-1989 Inclusive, a breakdown of wrongly incurred 
expenditure and recoveries effected. 
The amounts declared as recovered In 1989 were much greater than In pre­
vious years, mainly due to the initiatives taken by the EAGGF to encou­
rage Member States to follow up all their outstanding cases. 
Particular attention was given to closing old files for which recovery and 
legal procedures (generally very long) were completed. When, for these 
cases, the sums lost following irregularities had not been able to be 
recovered either in total or in part, a decision had to be made pursuant 
to Article 8 of Regulation (EEC) No 729/70 on whether the Member State or 
the Community had to bear the financial implications. 
Under Article 8(2) of Regulation (EEC) No 729/70, the cost of fraud and 
Irregularities is normally met by the Community, except where the loss 
arises from administrative error or negligence on the part of the natio­
nal administration, when it falls to the Member State. 
When a Member State declares that an amount Is not recoverable it must, 
under Article 5(3) of Regulation (EEC) No 283/72, Inform the Commission In 
detail (by means of an explanatory memorandum) of the circumstances and of 
the reasons why recovery is Impossible. 
- 56 -
The Commission has agreed to meet the costs of 67 (involving a total of 
ECU 2,166,724) of the 74 cases already closed without recovery. In an­
other 7 cases (Involving ECU 400,364) the financial Implications have been 
accepted by the Member States. 
A total of 92 cases In which there is no possibility of recovery have been 
Identified and decisions on final acceptance of the expenditure by the 
Community are being prepared. These will be preceded by consultations 
with the Member States concerned. 
7.6. Mutual Information system 
This arrangement, used by the Member States and Commission officials, has 
two aspects. 
Under Article 4 of Regulation (EEC) No 283/72 information is rapidly cir­
culated on irregularity cases where there is likely to be an effect out­
side the Member State of discovery or where a new fraudulent practice has 
appeared. 
Regulation (EEC) No 1468/81 makes provision for mutual assistance between 
the administrative authorities of the Member States and cooperation 
between the latter and the Commission to ensure correct application of the 
customs and agricultural rules. 
The notification of cases of irregularity between Member States and 
between the latter and the Commission as provided for in Article 4 of 
Regulation (EEC) No 283/72 is supplemented by information transmitted on 
the basis of Regulation (EEC) No 1468/81. 
The breakdown of cases from 1972 to 1989 is as follows : 
YEARS 
1972-1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 B 
25 
4 
1 
1 
1 
0 
0 
0 0 
12 
0 
0 
1 
1 
0 
0 
0 DK 
0 
0 
0 
0 
1 
0 
0 
1 EL 
0 
3 
1 
1 
0 
0 
0 
0 ES 
0 
0 
0 
1 F 
15 
1 
1 
1 
0 
0 
0 
1 IRL 
14 
3 
0 
0 
0 
0 
0 
0 1 
2 
0 
0 
0 
0 
0 
0 
0 L 
0 
0 
0 
0 
0 
0 
0 
0 NL 
3 
0 
0 
0 
0 
3 
1 
2 P 
0 
0 
0 
0 UK 
59 
2 
0 
1 
1 
0 
0 
1 COM 
12 
0 
3 
2 
4 
7 
3 
0 TOTAL 
142 
13 
6 
7 
8 
10 
4 
6 
7.7. Meetings of the EAGGF Irregularities Group 
These meetings, held pursuant to Article 7 of Regulation (EEC) No 283/72, 
bring together, with an EAGGF official in the chair, Commission officials 
and Member States' representatives responsible for control and investiga­
tion work. 
- 57 -
In 1989, 5 plenary meetings were held at which numerous presumed or known 
irregularity cases, some of which had serious financial implications, were 
discussed and the action to be taken In each case was considered. There 
were also 20 restricted meetings at which many specific cases were exa­
mined. 
7.8. Control agencies for olive oil 
Pursuant to Council Regulation (EEC) No 2262/84*1) and Commission Regu­
lation (EEC) No 27/85**) control agencies for olive oil were set up in 
four producer Member States : Italy, Greece, Spain and Portugal (see 
pages 53-54 of the 1988 EAGGF Report). 
During 1989 the progress of the agencies varied according to their state 
of development, which differed from country to country. 
The agencies set up in Italy and Greece, which were already operational, 
continued their inspections in line with the programmes of activity and 
budget approved by the authorities of the Member States and the Commission 
for the 1988/89 marketing year. 
The Portuguese agency consolidated its organization and the agency set up 
in Spain began to operate. 
In Italy : the agency continued to carry out checks during the 1988/89 
marketing year. Since beginning operations it has carried out checks on 
1,944 mills (30 X of approved mills), all six associations of recognized 
producers' organizations (several times), 172 recognized producers' 
organizations and more than 18,000 olive growers. The agency has also 
begun checks into consumption aid, carrying out 191 checks on packaging 
plants. It has also helped in determining oil yields in more than 
500 communes. 
As regards penalties, the agency has to date proposed the withdrawal of 
recognition from 23 producers' organizations and the withdrawal of appro­
val from more than 300 mills. The situation of a total of more than 
6,000 producers has been found to be irregular and their dossiers have 
been sent to the paying agency so that the paying of production aid can be 
blocked. 
In addition, more than 1,000 mills, more than 250 cases involving recogni­
zed producers' organizations and several hundred olive growers have been 
reported to various national authorities (legal authorities, Guardia di 
Finanza). 
In Greece : the agency continued its work during the 1988/89 marketing 
year, carrying out checks at more than 530 mills. It helped in the deter­
mination of the homogenous production zones for calculating oil yields in 
15 departments covering 82 of the 229 zones concerned. 
(1) 0J No L 208, 03.08.1984 
(2) 0J No L 4, 05.01.1985 
- 58 -
It carried out checks on 76 recognized producers' organizations and seve­
ral checks on the single association of recognized producers' organiza­
tions. It examined the files of more than 26,000 olive growers and car­
ried out almost 600 checks in the field. 
The agency also proposed penalties against 6 producers' organizations and 
around 20 producers belonging to organizations in connection with the 
1987/88 marketing year and against more than 100 mills for the 1987/88 and 
1988/89 marketing years. 
In Portugal : in 1988/89 the agency increased its capacity for carrying 
out checks. It presently employs 32 people, of whom more than half are 
directly involved in the checking operations. 
The agency carried out checks at 90 mills (100 X of the mills approved for 
the marketing year). It checked the cultivation declarations for 1986/87 
and carried out on-site checks on around 400 olive growers, most of whom 
were members of recognized producers' organizations. The checks revealed 
that in some cases the number of olive trees declared was inflated. The 
agency has reported this to INGA so that the necessary adjustments can be 
made when production aid for the next marketing year is paid. 
The agency did not carry out any checks on recognized producers' organi­
zations owing to delays in the recognition procedure. Checks are planned 
for the 1989/90 marketing year. 
In Spain : the agency began operations in 1988/89, essentially working to 
develop its organization (premises, recruitment and, above all, staff 
tra ining). 
The agency presently employs 46 people, 60 X of whom are involved in 
carrying out checks. It has its own premises and is aquiring the material 
required for its checks : office equipment, means of transport. It drew 
up and sent to the Commission a pian for the installation of computing 
equipment which is now being implemented. 
It began actual checking operations in June 1989 and checks were made on 
44 of the 77 presently recognized producers' organizations, on the single 
association of organizations and on-site on olive growers. 
The agency was involved in determining oil yields in all production zones 
and drew up a number of legal standards for the application of the produc­
tion aid scheme. 
7.9. Regulation (EEC) No 4045/89 
Acting on a proposal from the Commission, on 21 December 1989 the Council 
adopted Regulation (EEC) No 4045/89<1) on scrutiny by Member States of 
transactions forming part of the system of financing by the Guarantee 
Section of the European Agricultural Guidance and Guarantee Fund. This 
Regulation repeals Directive 77/435/EEC<2) which laid down the same type 
of checks. 
(1) 0J No L 388, 30.12.1989, p. 18 
(2) OJ No L 172, 12.07.1977, p. 17 
- 59 -
This Regulation forms part of the Commission's actions against fraud and 
Irregularities to the detriment of the Community budget*1). It provides 
for checks on the commercial documents of beneficiaries and debtors of the 
EAGGF Guarantee Section after payment, with particular emphasis on the 
prevention and detection of fraud and irregularities. 
The new Regulation differs in several important respects from the Direc­
tive mentioned above : the number of checks Is considerably greater, na­
tional scrutiny programmes are submitted to the Commission enabling har­
monization at Community level, and in each Member State a special depart­
ment Is made responsible for the checks and their coordination. 
It was decided that the additional expenditure on the remuneration and 
training of staff and the setting up of the new departments required for 
these extra checks would be part-financed by the Community for five years. 
7.10. Harmonization of controls 
As part of the procedure for the clearance of the 1986 accounts, on 
26 October 1988 the Commission set up an interdepartmental working party 
(DG VI, XIV, XIX, XX, the Legal Service and the Unit for the Coordination 
of Fraud Prevention) on the harmonization of controls connected with the 
common agricultural policy. 
Work continued through 1989 to draw up, for each category of measure, 
standard control provisions which could be incorporated into proposals for 
new regulations or into regulations already in force where these could be 
amended. 
An interim report from the working party [SEC(89)191] was adopted by the 
Commission during the first quarter of 1990. 
(1) The fight against fraud: Report on work done and progress achieved In 1989 
- Document SEC (90) 156 final of 31 January 1990. 
- 60 -
TITLE IV 
ACCOUNTS CLEARANCE 
8.1. Verification of EAGGF Guarantee Section expenditure and clearance 
procedure - 1987 
On 25 September 1989 the Commission, as provided for In Article 5(2)(b) of 
Commission Regulation (EEC) No 729/70, after consulting the EAGGF Commit­
tee, cleared the accounts for 1987 (Decision 89/627/EEC). 
This clearance covered claimed expenditure of ECU 22,972 million. The 
following table shows how this amount breaks down by Member State. 
EAGGF Guarantee Section : expenditure claimed (1987) 
[Excluding premiums for non-marketing of milk and milk products and con­
version of dairy herds (Regulation (EEC) No 1078/77)] 
Member State In national currency In ECU 
Belgium 35.355.008.415 819.277.248 
Denmark 8.445.886.493,05 1.063.101.778 
Germany 8.297.323.175,84 4.027.162.107 
Greece 206.447.861.073 1.255.131.905 
Spain 89.379.391.464 635.853.560 
France 39.266.318.811,07 5.622.848.463 
Ireland 744.392.600,36 956.940.588 
Italy 5.807.192.426.385 3.816.353.473 
Luxembourg 65.512.485 1.513.085 
Netherlands 6.429.253.259,86 2.774.075.672 
Portugal 22.267.141.756 131.395.149 
United Kingdom 1.301.835.357,14 1.868.324.391 
E.E.C. - 22.971.977.419 
8.1.2. The 1987 financial year Is the second to which the systems audit method 
applies In accordance with the methods described In the EAGGF Guarantee 
Section audit manual. Its Introduction, however, involves a very heavy 
workload in the first few years, in view of the time limits laid down for 
clearance of accounts. A transitional period of several years Is there­
fore to be expected before the new system is comprehensively applied. 
- 61 -
The verifications made are indicated in the summary report, which also 
sets out the main results of the dialogue with the Member States, and in 
particular the final position adopted by the EAGGF and the financial out­
come. 
The EAGGF adopted its final position on the basis of the information it 
received up to 15 June 1989, the date set by Commission decision for 
expiry of the time limit. 
8.1.3. As in previous operations the EAGGF worked in close cooperation, during 
the various stages of the procedure, with the Legal Service and the 
Directorate-General for Financial Control; the latter took part in several 
inspection visits. 
The financial corrections were carried out in accordance with the rules 
laid down by the Commission in its Decision of 20 December 1985. These 
concern EAGGF action both in conventional cases of formal and substantive 
failure to observe Community law and in all cases of granting of illegal 
national aid and of infringements in regard to clearance of accounts. The 
figures for 1987 are set out in detail In Annex 23 to this report. 
8.1.4. The Commission decided to amend the Decision clearing the accounts for 
1987 after consulting the EAGGF Committee on 20 March 1990. There were 
two main reasons for this amendment : 
- the Commission decided to delay clearance of certain expenditure clai­
med by Member States for 1987 so it could examine it in the light of 
additional information to be supplied by Member States before 31 Decem­
ber 1989; 
- the Commission refused to finance some expenditure but was to reexamine 
the cases in question in the light of further information supplied by 
Member States. The expenditure arising from this amendment amounts to 
ECU 142.3 million and is chargeable to the Community budget. 
8.2. 1988 
The clearance for 1988 relates to expenditure claimed amounting to 
ECU 27,516 million. The dates on which the figures for 1988 expenditure 
were communicated to the Commission staff are given in Table 12. Several 
Member States again failed to meet the deadlines for forwarding claims, 
often providing further information several months later. This has com­
plicated the work considerably and seriously delayed completion. 
- 62 -
TABLE 12 
I SUBMISSION OF CLEARANCE CLAIMS 
MEMBER STATE DATE I 1988 
(Deadline : 31.3.89) Amount In nat. curr. 
Belgium 10.05.1989 31.242.058.323 
Denmark 30.03.1989 9.707.246.246,92 
Germany 29.05.1989 10.152.712.681,85 
Greece 14.04.1989 215.292.459.926 
Spain 12.05.1989 246.462.149.588 
France 26.05.1989 43.548.342.550,09 
Ireland 20.10.1989 822.438.852,16 
Italy 26.09.1989 6.714.737.597.462 
Luxembourg 10.04.1989 129.591.267 
Netherlands 16.05.1989 8.894.749.689,45 
Portugal 16.05.1989 26.370.942.141 
United Kingdom 16.05.1989 1.348.115.030,62 
8.3. Systems audit - Verification procedure 
As indicated In point 8.4. of last year's Financial Report, the systems 
audit method was Introduced in 1987 when 30 systems covering 18 different 
schemes were audited. In 1988 another 25 systems covering 16 schemes were 
audited. 
In 1989, the following schemes were audited for the first time : 
public storage of cereals 
withdrawal of fruit and vegetables 
production aid (tomatoes) 
consumptIon aid for o11ve oil 
production aid for rape and 
sunflower seed 
production aid for peas and 
field beans 
dlst11latIon of wine 
distillation of the by-products 
of wine-making 
taking over of alcohol 
tobacco premium 
public storage of tobacco Belgium, Germany, Italy 
Greece 
Portugal 
Greece, Italy 
: Denmark, Portugal 
: France 
: Germany 
Spain, France 
Spain, France, Italy 
France 
Greece, France, Italy 
- 63 -
aid for skimmed milk powder 
(calves) 
aid for casein 
public storage of butter 
private storage of cheese 
milk for schoolchildren 
co-responslblIity levy (m Ik) 
- public storage of beef 
- suck 1er cow premium 
- special premium 
- calf premium 
- ewe premium Germany 
Denmark 
Spain 
Italy 
United Kingdom 
Belgium, Germany, France, 
Ireland, Italy, Netherlands, 
United Kingdom 
France, United Kingdom 
Belgium, Ireland, Italy 
Luxembourg 
Belgium, Denmark, Ireland, 
Luxembourg 
Ireland, Italy 
Belgium, France, Ireland, Italy, 
Luxembourg, Portugal 
As regards export refunds, the EAGGF audited the systems of customs autho­
rities for the following products : 
cereals 
sugar 
beef and veal Germany, France, Netherlands 
Germany, France 
Germany, France 
8.4 As regards measures and Member States not listed above, the EAGGF used 
previous years' systems audits and, where appropriate, additional selec-
t ive checks. 
For all expenditure, the EAGGF verified that the annual claims submitted 
by the Member States were complete, arithmetically exact and consistent. 
The EAGGF also examined the correspondence between these claims and the 
accounts of the paying agencies. 
Memorandum 
The memorandum on the uniform presentation of expenditure claims (or "de­
clarations") by the Member States has been amended on many occasions since 
Its consolidation In 1983, partly to accommodate changes In schemes and 
partly to provide the Member States with all the guidance they need for 
preparation of the annual claim relating to EAGGF guarantee expenditure. 
For the first part of 1989, the memorandum Is divided into two parts, 
Part I covering solely annual claims for first category Intervention 
(direct aids, etc.) and Part II covering monthly and annual claims for 
second category Intervention (public storage). 
- 64 -
8.5. Appeals against accounts clearance decisions 
Since the last Financial Report, the Court of Justice has handed down two 
Judgments in cases filed by Member States against clearance decisions. 
On 19 October 1989 the Court handed down a Judgment in Joined Cases 
258/87, 337/87 and 338/87 concerning sales of skimmed milk powder from 
public storage, the processing of oranges and lemons and the special 
carry-over premium for fish in Italy in the 1983, 1984 and 1985 financial 
years. The three appeals Involved a total of around ECU 18 million. The 
Court rejected the Member State's appeal. 
In connection with the 1984 and 1985 clearances, the Court gave Judgment 
on 16 November 1989 in a case Involving special aid for liquid milk (farm 
butter) in Germany (Case 333/87). The Member State's appeal, Involving 
around ECU 2 mi I I ion, was rejected. 
The appeals made by Member States with regard to the 1987 clearance adop­
ted on 19 November 1989 are given in Table 13. 
TABLE 13 
List of appeals filed by the Member States 
In connection with the clearance of accounts for 1987 
CASE 
C-385/89 
C-22/90 MEMBER 
STATE 
Greece 
France SUBJECT 
Refunds 
Cereals -
Co-responsibi-
lity levy 
Tobacco 
Ml Ik -
Additional 
levy REFERENCE 
TO SUMMARY 
REPORT 
4.1.4.1/87 
4.1.4.2/87 
4.2.2.2/87 
4.2.2.2/87 
Add.2 Rev.1 
4.9.1/87 
4.9.1/87 
Add.2 Rev.1 
4.3.11.4/87 
Add.2 Rev.1 AMOUNT IN 
NATIONAL 
CURRENCY 
590.204.259 
258.108.000 
1.391.045.367 
10.569.874 
- 65 -
It should be noted that appeals filed In respect of a financial year may 
have financial Implications for the following financial years, in view of 
the general reservation provided to that end In each clearance decision. 
The reservation is made In order to avoid unnecessary repetition of 
appeals on the same point. 
It should also be pointed out that Greece applied for Interim measures to 
suspend execution of the accounts clearance decision for 1987. The appli­
cation was dismissed by Order of 23 February 1990 (C-385/89 R). 
8.6. Legal national aid and "upstream" infringements 
The general lines of the Commission's approach to the scrutiny of Incompa­
tible national aid or Infringements, from the point of view of any Impact 
they may have on agricultural expenditure, were described In point 8.3. of 
the 1985 Financial Report. That approach continued to be followed, when 
the 1987 accounts were cleared. The following cases where financing was 
disallowed may be quoted as examples : 
- KYDEP monopoly In Greece (contracts for programmes for meal and the 
management of animal feedingstuffs), 
- non-application of Regulation (EEC) No 3143/85 on concentrated butter 
In Italy. 
- the additional premium In the milk sector, 
- failure to respect catch quotas In the fishery sector. 
- 66 -
TITLE V 
CLEARANCE OF ACCOUNTS IN RESPECT OF COMMUNITY FOOD AID 
FOR PRODUCTS SUBJECT TO EEC MARKET ORGANIZATIONS 
9.1. Reform of the system of financing Community food aid 
This reform came into force on 1 July 1987. From that date, the mobiliza­
tion and financing of Community food aid takes place in accordance with Com­
mission Regulation (EEC) No 2200/87 of 8 July 1987 laying down general rules 
for the mobilization in the Community of products to be supplied as Commu­
nity food aid, which is based on Council Regulation (EEC) No 3972/86 on 
food-aid policy and food-aid management. 
Financing pursuant to the above-mentioned Regulation (EEC) No 2200/87 is 
therefore carried out directly by the Commission, and not via the Member 
States. 
Financial and budgetary management is the responsibility of the Directorate-
General for Development, which also makes payment to entitled parties. 
The EAGGF Guarantee Section remains responsible for clearance of the ac­
counts of expenditure by the Member States and for payment/recovery of 
amounts outstanding from operations covered by the old system. 
9.2. Amounts outstanding from old system 
In 1989 the EAGGF Guarantee Section charged a number of payments to Chap­
ter 92 and likewise entered a number of receipts, on the basis of settle­
ments notified by the Member States under the old system. 
The transactions will be covered in the statistics and reports of the Di­
rectorate-General for Development, which is taking over management of Chap­
ter 92 (Food aid) of the Community budget. 
9.3. Accounts clearance 
Preparatory work on the aggregated clearance for 1980, 1981, 1982 and 1983 
continued In 1989. The Commission was thus able, by Decision 89/255/EEC of 
28 March 1989, to clear the food aid expenditure accounts for 1980, 1981, 
1982 and 1983 for Belgium, Italy, the United Kingdom, France and the Nether­
lands. The decisions covering the other Member States for these years were 
taken in 1988. Preparatory work has begun on clearing the 1984, 1985, 1986 
and 1987 accounts. 
Also a number of reservations have been entered and are given in annexes to 
the decisions published In the Official Journal of the European Communities 
The opportunity is taken in this Report of listing below the reservations 
still outstanding after clearance of the 1983 accounts. 
- 67 -
TABLE 14 
List of reservations still outstanding after 
the clearance of the 1983 accounts 
MEMBER STATEIYEAR AMOUNT 
Be I g Ium 
R. 2269/76 - Zambia 1978 BFR 15.809.835 
R. 2494/79 - Egypt 1980 DM 16.532 
R. 2936/81 - China 1982 BFR 6.374.970 
R. 2936/81 - China 1982 BFR 7.685.613 
R. 93/82 - Djibouti 1982 BFR 14.080.665 
R. 3611/81 - ICRC 1982 BFR 1.667.050 
R. 2600/81 - Somalia 1983 BFR 1.269.659 
Germany 
R. 588/81 - Ethiopia 1981 security 
R. 1644/81 - Guinea 1981 security 
R. 812/82 - Burundi 1982 DM 132.720,48 
R. 2831/83 - ICRC/UNRWA 1983 securities provided for 
consignments K, Q, R and S in Article 26(5) of 
R. 1354/83 
! ' - , , „,, 
France 
1982 butteroiI - general re­
servation for comparison 
of intervention with 
the Guarantee Section 
R. 2186/82 - Zaire 1982 DM 181.308,18 
R. 298/83 -Guinea-Bissau 1983 FF 31.535 
R. 1530/83 - WFP/Morocco 1983 investigation 
R. 2433/83 - Tunisia 1983 Investigation 
R. 2434/83 - Tunisia 1983 investigation 
R. 1630/82 - UNHCR 1983 FF 743.476,80 
R. 2779/83 - Egypt 1983 FF 447.866,88 
R. 1611/83 - Mozambique 1983 problem of general 
qua Iity 
Italy 
Dec. 76/748 rice/Nigeria 1976 case before the Court 
United Kingdom 
R. 30/83 - Nicaragua 1983 expenditure claimed 
R. 516/83 - ICRC/Nicaragua 1983 expenditure claimed 
These reservations will be the subject of scrutiny in connection with future 
accounts clearances and will be withdrawn as far as possible. 
ANNEX 1 
Suaaary of lapleaentatIon for 1989 
APPROPRIATIONS 
A. 1988 appropriations 
1. Original appropriations 
2. Transfers of appropriations 
3. Appropriations available 
B. 1987 appropriations 
Automatic carryover froa 1988 
TOTAL ECU Million 
28.267,300 
- 1.099,829 
27.167,471 
11,224 
27.178,695 IMPLEMENTATION 
C. Coaaltaents 
1. Appropriations available 
2. Sua not coaaltted 
3. Coaaltaents 
4. Remainder froa total 
5. Coaaltaents detailed 
0. Payaents 
1. Suis coaaltted In detail 
2. Payaents 
3. Aaount coaaltted to be carried 
over autoaatleal ly 
4. Appropriations to be carried 
over (non-autoaatIc) 
5. Appropriations lapsed (1) 
TOTAL ECU il 1 1 ion 
27.178,695 
1.291,535 
25.887,160 
25.887,160 
25.887,160 
25.933,213 
51,226 
1.296,708 
27.178,695 o 
00 
(1) of which: - froa automatic carryover froa 1988: 5,173 
- froa 1989 appropriations: 1.291,535 
ANNEX 2 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 
KLCIQUE DANMARK OEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
1000 REFUNDS ON COMMON WHEAT GRAIN AND FLOUR 24,442 17,401 178.225 1,150 17,(59 747,*J* 40,492 — 35.343 — 94,579 1.157.147 
1001 REFUNDS ON BARLEY GRAIN AND MALT 57,475 73,825 74,047 0,452 92,189 244,«<4 2,474 0,001 — 39,087 — 213,047 — 799,482 
1002 REFUNDS ON DURUM WHEAT AND ON DURUM 2,554 0,228 38,918 13.077 8.024 195,194 0,001 257,999 
WHEAT FLOUR, GROATS AND MEAL 
1003 REFUNDS ON OTHER CEREALS 12,309 4,344 34,111 3,794 182.118 0.199 33,143 — 103.419 — 4,780 — 382,241 
100 REFUNDS ON CEREALS 94.983 97,591 288.411 40,520 124.721 1.184,442 2.874 249.033 — 177,848 — 312,427 — 2.597,049 
1010 CARRYOVER PAYMENTS — --- — — — — 0.004 — — — — — 0,004 lO 
1011 TECHNICAL COSTS OF PUBLIC STORAGE 1.080 4.433 90,084 — 18,332 29,853 1.075 48,740 0,014 0,040 — 15,779 209.474 
1012 FINANCIAL COSTS OF PUBLIC STORAGE 0,443 1,913 21,944 -0.074 2,995 5.894 0,040 18,485 0.008 0,024 7,893 59.411 
1013 OTHER INTERVENTION STORAGE -1,147 -4.587 -84,382 -0.124 3,730 -49.109 -1,334 -29,928 -0,002 -0,088 -0,328 -58,403 -245,903 
1014 DEPRECIATION OF CEREALS STOCKS 4.871 4,149 254,444 75,450 139.048 1.104 73,890 — 0,243 553,242 
101 INTERVENTION STORAGE OF CEREALS 5,244 5,908 282,097 -0.199 100.507 105.710 0.908 111,212 0,022 -0,002 -0,328 -34.448 — 574.431 
1020 PRODUCTION AID FOR OURUM WHEAT — — — 87,518 4,744 19,423 — 253.281 — — — — — 344.948 
1021 PRODUCTION REFUNDS FOR POTATO STARCH 0.334 2,299 8,249 — 0,004 8.734 1,885 — 33,014 — 4.534 — 41,081 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU mit Lion) 
BELGIQUE DANMARK DEUTSCH-
LAND ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE 
KINGDOM TOTAUX 
1022 OTHER PRODUCTION REFUNDS 
1029 OTHER INTERVENTION 10.370 7,434 57,492 0,572 14,927 78.524 1.418 24,473 
-0.441 -0.005 19.250 
-0,015 23,429 240,099 
-0,480 
102 INTERVENTION, OTHER THAN STORAGE, OF 
CEREALS 10,704 9,733 45.280 88.090 19,475 104.484 1,418 281,439 54,258 27,984 «45,448 
1030 «RESPONSIBILITY LEW 
1031 AID TO SMALL PRODUCERS 
1032 ADDITIONAL CORESPONSIBILITY LEVY 
1033 REIMBURSEMENT OF THE ADDITIONAL 
CORESPONSIBILITY LEVY -14,714 -24,744 -54,539 -13.918 -71,743 -195.134 -5,445 -44,053 -0,304 -7,872 
1,411 5,115 1,770 5.745 
-0,218 -15.745 -50.149 12.717 1.098 
-133.948 -5.151 0,130 1,129 
-0,170 
0.430 33.748 1.982 1.834 4.780 3.037 9.809 0.049 -77,812 
1.918 
-41.339 
21.122 •532.502 
31.233 
-244,740 
78,812 O 
103 CORESPONSIBILITY LEVY AND AID TO SMALL -12.891 -35.394 -47,149 -4,190 -49,909 -311,407 -4.481 -54.245 -0,297 -4.743 
PRODUCERS -114,111 -489,217 
1040 REFUNDS ON RICE 
1041 INTERVENTION FOR RICE 0,147 0,042 0,918 1,321 4.143 0,077 
0,954 14,024 7.274 34.733 
41.804 1.910 
0.004 0.017 0,070 43,234 
44,230 
104 RICE 0,147 0,042 0,918 2,275 20.189 7.353 78.539 1.914 0.017 0.070 111.444 
10 CEREALS AND RICE 100,211 77,881 549,754 124,495 197,1B2 1.092.583 -1,201 484.178 -0,275 227,295 -0,311 189,701 3.241,414 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 
BELGIQUE DANMARK DEUTSCH-
LANO ELLAS" ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
KINGDOM 
110 REFUNDS ON SUGAR AND ISOGLUCOSE 11,171 52,152 345.735 0.549 45,247 92.109 5.455 20,114 804,413 44,145 1.451,330 
1110 REIMBURSEMENT OF STORAGE COSTS 
1111 PUBLIC STORAGE 
1112 REFUNDS ON SUGAR USED IN THE CHEMICAL 
INDUSTRY 
1113 MEASURES TO AID THE DISPOSAL OF RAW 
SUGAR 
1119 OTHER INTERVENTION 25,213 13,204 89,494 4.709 29,844 125.935 7,144 54,857 
13.559 
9,228 -1,352 
0,902 2,154 10.570 0,259 9,505 22,095 1,250 2,482 32.490 0.853 34.994 
8,351 0.282 11,222 
1.542 
3.528 9,745 422,944 
-1.352 
49.271 
15,121 
22,521 I 
111 INTERVENTION FOR SUGAR 24,115 15.340 100,244 4.948 39,371 170,817 8,395 58,184 40,841 4.225 57,981 528.525 
11 SUGAR 37.284 47,511 444.002 5.517 104.430 242.924 13.851 84,300 847,454 4.225 102.144 1.979.854 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 
BELGIQUE DANMARK DEUTSCH-
LAND ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE 
KINGDOM TOTAUX 
120 REFUNDS ON OLIVE OIL 0,002 0.007 0,043 1.B57 37.157 0.437 48.970 0,100 4,342 0.004 93,138 
1210 PRODUCTION AID 
1211 SPECIFIC PRODUCTION MEASURES 140,324 120.197 3,048 
4,135 0,445 503.481 
22.043 3,354 
0,518 790,404 
27,142 
121 PRODUCTION AID AND SCHEHES RELATED TO 
PRODUCTION OF OLIVE OIL 144,459 120.443 3.048 525,724 3.872 817,744 
1220 CONSUMPTION AID 
1221 SCHEMES RELATED TO CONSUMPTION 0,009 0.122 54.948 17,253 345,282 2.144 
9,781 441,781 
9,781 ^1 
122 CONSUMPTION AID AND SCHEMES RELATED TO 
CONSUMPTION OF OLIVE OIL 0,009 0,122 54,948 17,253 345,282 2,144 9,781 451.542 
1230 TECHNICAL COSTS OF PUBLIC STORAGE 
1231 FINANCIAL COSTS OF PUBLIC STORAGE 
1232 OTHER PUBLIC STORAGE COSTS 
1233 DEPRECIATION OF OLIVE OIL STOCKS 
1239 OTHER STORAGE MEASURES 27,970 
24,421 
-20,718 
0.012 
0,222 7,144 12,070 
12,255 
-4,542 
0,414 
0.010 0,798 
0.570 
-4,205 
0,001 
0,033 
123 STORAGE MEASURES FOR OLIVE OIL 0.222 39,031 20,148 40.838 
37,424. 
-31,485 
0,427 
7.411 
54,417 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 5. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
124 OTHER INTERVENTION FOR OLIVE OIL 0,017 0.273 3.035 1.240 40.204 2,474 47.444 
125 REFUNDS ON OIL SEEDS 0,541 5,193 0.001 3.755 
1240 PRODUCTION AID FOR COLZA AND RAPE SEED 124.400 95.228 530.221 0.205 245.408 12,395 41.402 0,043 214,743 1.288.245 
1241 PRODUCTION AID FDR SUNFLOWER SEEO 40.879 92.429 13,110 173.795 241,310 118.841 94.521 74,331 23,553 892.770 
1242 PRODUCTION AID FOR SOYA BEANS 
1243 PRODUCTION AID FOR FLAX SEEO 0.529 1.105 
3,401 0.384 0,508 43.574 395.149 
14.247 0.017 0,048 1.949 7.224 440.377 
30.001 
1249 OTHER AID 0.788 0.788 
124 PRODUCTION AIO FOR OIL SEEDS 190,481 95,812 423,487 14,215 174,000 547,547 0.017 524,453 157,873 74,373 247.522 2.472.180 
1270 TECHNICAL COSTS OF PUBLIC STORAGE 0,001 1,078 1.099 0,001 2.179 
1271 FINANCIAL COSTS OF PUBLIC STORAGE 0,001 1.328 1.217 0,001 -0,003 2,543 
1272 OTHER PUBLIC STORAGE COSTS -0.009 -4.522 -5.447 -0,043 -0,045 -10,088 
1273 DEPRECIATION OF OIL SEEO STOCKS 0,981 0.981 
127 STORAGE MEASURES FOR OIL SEEDS -0,007 -1.133 -3.132 -0,044 -0,047 -4.314 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 6. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX ! 
LAND KINGDOM I 
I 12 OILS AND FATS 190,492 95.837 423,844 237,974 373.312 591.787 0.017 1.524.801 157.974 80.413 249,445 9.781 4.138.097 ! 
I 
t 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 7. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLANO PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
130 PRODUCTION AID FOR PEAS AND FIELO BEANS 31,340 30,453 90,133 — 5,014 157,454 1.349 2.421 0.075 44.327 0.352 38,122 423.444 
131 PRODUCTION AIO FOR DRIED FODDER 0,298 19.139 17,145 0.848 28.021 98.724 0.349 31.483 — 14.444 0.038 4.214 218.904 
132 PRODUCTION AID FOR LUPINS — — 0.001 — 0.520 — — — 0.521 
13 PROTEIN PLANTS 31,437 49,792 107,279 0,848 33,034 234,700 1.718 34.104 0.075 02.973 0.390 44,334 442.889 
U1 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
1400 PRODUCTION AID FOR FIBRE FLAX 4,044 0,074 0.525 17.740 0,003 1.444 0.014 23.848 
1401 SPECIFIC MEASURES 2,829 2.829 
1402 PRODUCTION AID FOR HEMP 0,017 1,015 1.032 
1409 OTHER INTERVENTION 0,431 0,747 0,004 1.404 
140 FIBRE FLAX AND HEMP 4,494 0.074 0.525 0.017 19.522 0,003 1.452 0,014 2.829 29.133 
141 COTTON 329.485 241,401 0,040 570.944 ^1 
142 SILKWORMS 0.144 0,013 0,397 0,575 
14 TEXTILE PLANTS AND SILKWORMS 4,494 0,074 0,525 329,449 241,418 19,534 0,003 0,457 1,452 0,014 2,829 400,453 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 9. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
1500 EXPORT REFUNDS 0.133 0,181 0,782 22.448 4.927 30.031 2,452 0,032 43,388 
1501 COMPENSATION FOR WITHDRAWALS AND BUYING 
IN AND FOR FREE DISTRIBUTION OPERATIONS 1,154 4,418 100,908 8.523 49,820 0,058 114,389 2,780 1.504 283,734 
1502 COMPENSATION TO PROMOTE COMMUNITY CITRUS 
FRUITS 8.590 11.158 19.748 
1503 COMPENSATION TO ENCOURAGE PROCESSING OF 
CITRUS FRUITS 10.140 3.424 114,325 0.242 128.371 
1509 OTHER INTERVENTION 1.224 1,224 
130 FRESH FRUIT AND VEGETABLES 1,287 0,181 4.425 142.307 12.147 54,747 0,038 249.902 5.433 0,242 1.538 494,487 
1510 EXPORT REFUNDS 0,302 2.240 0.493 5.103 1.408 1.354 0.048 1.082 1.025 0.043 2.004 15,305 
1511 PRODUCTION AID FOR TOMATO-BASED PRODUCTS 44.042 24.543 18.119 204.024 18,434 313,385 
1512 PRODUCTION AID FOR FRUIT-BASED PRODUCTS 0,024 103.994 14.907 34.173 28.390 0.010 1,040 104,540 
1513 PRODUCTION AID FOR TINNEO PINEAPPLE 8.048 8,040 
1519 OTHER INTERVENTION 0.723 0.040 0.791 
151 PROCESSED FRUIT AND VEGETABLES 0,302 2.240 0.720 155.139 43.401 41.494 0.048 235.498 1.035 19.805 2.004 522,088 
15 FRUIT AND VEGETABLES 1.589 2,421 7,345 297,444 35,748 118.443 0.103 305.400 4,447 20.0*8 3,544 1.018,575 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 10. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITEO COMMUNAUTE TOTAUX 
LAND KINGDOM 
140 REFUNDS ON PRODUCTS OF THE WINE-GROWING 0.040 
SECTOR 0.384 1,537 27,419 7.744 7,949 43,297 
1410 INTERVENTION STORAGE OF WINE AND GRAPE 
NUST(R. 822/87) 0,124 4,477 14,895 21,247 24,445 47,410 
1411 DISTILLATION OF WINE (REG. 822/87) 3.439 7,179 27,457 100.784 283.444 422,505 
1412 COMPULSORY DISTILLATION OF THE BY­
PRODUCTS OF WINE-MAKING (ART.35 822/87) 0,047 23,838 31,174 23.445 78.524 
141 INTERVENTION FOR PRODUCTS OF THE 
WINE-GROWING SECTOR 3.545 11.903 44.190 153.208 333,574 548,440 
100 
1420 (ART.40) TECHNICAL COSTS OF PUBLIC 
STORAGE 2.221 1.400 3.435 7,254 
1421 (ART.40) FINANCIAL COSTS OF PUBLIC 
STORAGE 2,457 1,524 4,470 8.453 
1422 OTHER PUBLIC STORAGE COSTS 57,882 54,444 37.958 152,303 
1423 DEPRECIATION OF ALCOHOL STOCKS 24,255 18.559 71,927 114.741 
142 BUYING-IN OF ALCOHOL FROM COMPULSORY 
DISTILLATI0N(ARTS.37 AND 40 OF R.822/87) 88,814 77,950 117,989 284,753 
1430 0,045 8.200 2.829 29.094 45,797 0,128 84,094 
143 AID FOR THE USE OF NUST 0.045 8,200 2,829 29,094 45,797 0,128 84,094 
FEOGA GARANTIE 
EXPENDITURE CHARGEDAGAINST THE 1989 BUDGET (ECU miLLion) 11 
BELGIQUE DANMARK DEUTSCH-
LANO ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITEO COMMUNAUTE 
KINGDOM TOTAUX 
144 PERMANENT ABANDONMENT PREMIUMS IN 
RESPECT OF AREAS UNDER VINES 3,898 13.433 71,431 49,150 157,912 
1450 1.548 1,882 1,549 0,225 0,023 5,248 
145 OTHER INTERVENTION 1,548 1,882 1,549 0.225 0,023 5.248 
14 PRODUCTS OF THE WINE-GROWING SECTOR 0.040 5.542 25.539 200,747 341.021 574,485 0,151 1.147,744 
-J 
O 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU miLLion) 12. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
170 REFUNDS ON TOBACCO 0,744 3,253 17.820 1,459 0.787 37.505 0.114 0.040 41.941 
1710 4,972 43,750 241,129 57,453 «4.510 545.354 10,943 972,315 
171 PREMIUMS FOR TOBACCO 4,972 43,750 241,129 57,453 44,510 545,354 10.943 972.313 
1720 TECHNICAL COSTS OF PUBLIC STORAGE 0.028 3,1 0.171 4.389 8,455 
1721 FINANCIAL COSTS OF PUBLIC STORAGE 
1722 OTHER PUBLIC STORAGE COSTS 0.025 1.231 
3,512 0,008 
0.042 2.550 
7.214 3,815 
10.749 ,00 
O 
1723 DEPRECIATION OF TOBACCO STOCKS 3.400 10,473 -0,024 47,484 81.534 
172 INTERVENTION STORAGE OF TOBACCO 3,433 19.283 0.198 81.439 104,573 
17 TOBACCO 7,734 50,457 278,232 59.312 47,495 444.500 0,114 11.003 1.138,849 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 13. 
BELGIQUE DANMARK OEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
1800 2.254 18,434 3,533 1.270 4,854 9,733 0,074 0,145 0,109 0.873 0.134 4.584 42.244 
180 SEEDS 2,254 18,434 3,533 1.270 4,854 9,733 0.074 0.145 0,109 8.873 0,154 4.584 42,244 
181 HOPS 0,531 15,470 0.425 0.340 0.014 0.071 3.895 20.944 
185 TRANSHUMANCE 0,«21 0,421 
IB OTHER AGRICULTURAL SECTORS OR PRODUCTS 2,785 18,434 19.003 1.891 5.481 10.093 0.090 8.145 0.109 0.873 0.227 8.479 83.834 
I 
oo 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 14. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
2000 REFUNDS ON BUTTER AND BUTTEROIL 4,131 37,540 143,745 0,014 0,885 44,433 21,585 0,315 0.079 441.187 7.740 903.474 
2001 REFUNDS ON SKIMMED-HILK POWDER 4.090 2,091 134,992 0,113 2,118 44.304 0.013 0,001 180.424 24,059 398,204 
2002 REFUNDS ON CHEESE 1,304 148.455 47,475 1,739 3,041 45,031 2,892 32,480 0,070 139,000 19,244 483,374 
2003 REFUNDS ON OTHER NILK PRODUCTS 11,418 125,153 124,104 0.003 14,433 112,811 35,097 0.287 1,213 543.452 94.947 1.083,317 
200 REFUNDS ON MILK AND MILK PRODUCTS 23,343 313,238 472.514 1.758 20,491 224,393 103,878 33.294 1,343 1.524,243 148.030 2.848.571 
2011 TECHNICAL COSTS OF PUBLIC STORAGE 0,142 0.023 0,101 0,002 0,288 00 
rv) 
2012 FINANCIAL COSTS OF PUBLIC STORAGE 0.434 0,048 0,845 0,012 1,580 
2013 OTHER PUBLIC STORAGE COSTS -0,002 -1.241 2.577 -1,230 0.217 0,301 
201 INTERVENTION STORAGE OF SKIMMED-MILK 
POWDER -0,002 -0,445 2,448 -0,244 0,232 2,149 
2020 AID FOR SKIMMED-MILK FOR USE AS FEEO FOR 
CALVES 9,843 2,181 144.554 241.593 10,078 4,735 0,315 124.722 9,946 551.989 
2021 AID FOR LIQUID SKIMMEO MILK FOR USE AS 
FEEO FOR CALVES 9,014 9,740 23,021 3.527 0.812 4,831 0,240 2,540 55.745 
2023 AID FOR LIQUID SKIMMED MILK FOR USE AS 
FEED FOR ANIMALS OTHER THAN CALVES 0.004 0.042 0,559 0.042 4,418 0,024 0,011 7,099 
2024 AID FOR SKIMMED MILK PROCESSED INTO 
CASEIN 40,499 71,773 142,412 103.749 t,013 3,048 445,494 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 15. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
202 AID FOR SKIMMED MILK 18,841 72,418 241,390 388.291 114,481 17.984 0,315 210,999 15.587 1.080,527 
2030 PRIVATE STORAGE 13,358 1,248 14,852 0,092 14.444 5.413 0.334 0,114 13,743 3.392 71.413 
2031 TECHNICAL COSTS OF PUBLIC STORAGE 0,038 0,002 1,444 1,214 0,445 2.171 0,247 0,001 1,798 2.223 9,804 
2032 FINANCIAL COSTS OF PUBLIC STORAGE 2,490 0,879 45,099 2,451 14,503 24.487 1,435 0,001 41,911 35,378 171,034 
2033 OTHER STORAGE COSTS (BUTTER) -0.997 -0,011 95.053 -4,478 2,978 12,297 9,734 -0.070 44,443 -0,944 24,741 202.988 
2034 DEPRECIATION OF BUTTER STOCKS 1,183 1.183 
00 
OJ 
203 INTERVENTION STORAGE OF BUTTER AND 
CREAM 15.289 2.138 158,446 0,444 34,572 44.549 11.972 0.044 122,115 -0,944 45.753 454.422 
2040 CONSUMPTION AIO FOR BUTTER AND FOR THOSE 
RECEIVING SOCIAL ASSISTANCE 10.844 10,844 
2049 OTHER MEASURES 39,434 4,991 85,494 0,544 4,224 121.720 3.726 8.329 0,272 43,405 29,702 344.044 
204 OTHER MEASURES RELATING TO BUTTERFAT 39,434 4,991 65,494 0.344 4,224 121.720 14.572 8.329 0,272 43,405 29,702 354.909 
2050 STORAGE OF CHEESE 0,037 0,730 7.084 0,132 105.004 112.990 
205 INTERVENTION FOR OTHER MILK PRODUCTS 0,037 0,730 7,084 0.132 105,004 112.990 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 16. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
2040 FINANC.CONTRIBUT.BV THE GUARANT.SECTION 
TO NON-MARKETING AND CONVERSION PREMIUMS 
2041 SCHOOL MILK 
2042 MARKET DEVELOPMENT MEASURES 
2043 IMPROVEMENT OF MILK QUALITY 
2044 OTHER MEASURES UNDER THE PROGRAMME TO 
EXPAND THE MARKET FOR MILK PRODUCTS 
2044 PREMIUM FOR DEFINITIVE CESSATION OF 
NILK PRODUCTION 
2047 COMPENSATION FOR TEMPORARY SUSPENSION OF 
QUOTAS -0,005 -0.042 -0.005 -0.028 -0.025 
7,488 5,303 35.352 0,020 20.884 43.165 2.805 11,213 0.139 5.188 3,454 44,337 
0.963 2.143 10,143 0.454 0.930 0,674 1,391 3,434 0,193 2.791 
0,316 
4,086 10.265 49,042 
19,556 29,022 149,023 3.244 0.824 -0.010 
14.074 49,092 10.085 
24.242 146,001 30,988 0,520 45.277 
1,405 75,444 7,450 
0.912 
27,727 
85,502 -0,104 
181.570 
36.966 
4,376 
0.912 
212.192 
343.404 
00 
204 OTHER MEASURES IN THE MILK AND MILK 
PRODUCTS SECTOR 34,433 44,751 243.519 3,718 40.131 249.147 44.046 14.440 2.457 126.919 3,454 148,103 1.001,539 
2070 LINEAR LEVY -15,722 -24,754 -88.477 
2071 SUPER LEVYUO-RESPONSIBILITV - R.654/84) -26.566 -17,013 -46.628 -10.239 -94.944 -19.092 -37.783 -0,903 -41.556 
-149.013 -8.744 -31,064 -2,444 -117.119 -48.235 
-23,444 -423,730 
-444,327 
207 FINANCIAL CONTRIBUTION BY NILK 
PRODUCERS -44,310 -41,770 -157,304 -10,239 -245,978 -27,656 -48.849 -3,350 -178.477 -91.901 -690,254 
2080 0,111 -0.025 0.004 0.090 
208 MEASURES TO ASSIST SMALL PRODUCERS 0,111 -0,025 0,004 0.090 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 17. 
BELGIQUE DANMARK OEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX t 
LAND KINGDOM I 
I 20 MILK AND MILK PRODUCTS 
I 67,143 397,747 1.043,809 9,438 74,809 741.231 298.041 122,355 1,103 1.851.029 2.709 335.504 4.984,940 I 
I 
t 
! 
I 
00 U1 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 18. 
BELGIQUE DANMARK OEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
210 REFUNDS ON BEEF/VEAL 15,508 29,479 344,510 0.052 4.253 387.639 385.592 54.173 42.590 32,904 1.343.102 
2110 PRIVATE STORAGE 1.694 0,919 21,484 0,014 14.172 54,228 3.801 1,399 2,544 102.455 
2111 TECHNICAL COSTS OF PUBLIC STORAGE 0.944 1,653 45,443 1,852 22,390 15,895 7,357 4.718 4,748 109,420 
2112 FINANCIAL COSTS OF PUBLIC STORAGE 0,481 1,554 14,444 0,823 14.545 7.620 3,234 2.081 3,123 49.109 
2113 OTHER PUBLIC STORAGE COSTS 
2114 DEPRECIATION OF BEEF STOCKS -3,153 -1,444 14,042 -1.043 2,771 79.728 31.348 19,955 -0,035 -17,214 -3,245 8,429 
0,453 0,528 142,914 3.045 6.522 41,755 2.291 3.277 27,335 131,899 
270,142 00 
O 
211 INTERVENTION STORAGE OF BEEF 0,419 3,193 240,749 -1,043 8,524 141.357 171.044 34,440 -0,035 -2,939 -3,245 48,179 443,025 
2120 PREMIUMS FOR SUCKLER COWS 4,101 0,818 0.950 4,834 21,390 72.211 23,433 7,577 0,184 0.247 44,341 182,309 
2121 SPECIAL PREMIUM 4,951 5,440 34,958 2,715 7,213 48,805 14,423 0,399 2.410 32.531 156.044 
2122 CALF PREMIUMS 15.800 20.952 3,884 40.434 
2123 PREMIUMS FOR THE SLAUGHTER OF ADULT 
CATTLE OTHER THAN COWS 41,392 41,392 
212 INTERVENTION OTHER THAN STORAGE OF 
BEEF 11,052 4,278 35,907 7,552 28.403 121.014 34.054 28.529 0.583 2.477 124,148 422.401 
! 1 
! 21 KEF/VEAL 
1 
1 
1 
1 
1 •ELGIQUE 
27,17» D*™ 
39.130 DEUTSCH-
LAND 
443,145 ELLAS 
4.541 ESPANA 
43,382 FRANCE 
450.212 IRELAND 
412.714 ITALIA 1 
121,342 LUXEMBOURG 
0.541 NEOERLAND 
42.32* PORTUGAL 
-3.243 UNITED 
KINGDOM 
205.233 COMHUNAUTE TOTAUX ! 
! 
2.428.52ft 1 
1 
! 
t 
! ! rEOSA CARANTXE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGETCECU million) 19. 
rtU6A WWAKTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 20. 
! 2210 PREMIUMS 
1 2211 STORAGE 
1 221 INTERVENTION FOR SHEEPNEAT AND 
1 GOATNEAT 
1 22 SHEEPNEAT AND GOATNEAT •ELGIQUE 
1.433 
— 
1,433 
1,433 DANNARK 
0.342 
... 
0,342 
0,342 OEUTSCH- • 
LAND 
25.845 
— 
25.845 
25,845 ELLAS 
184.415 
184.415 
184,415 ESPANA 
350.205 
— 
350,205 
350,205 FRANCE 
194,248 
194,248 
194.248 IRELAND 
88.384 
88.384 
•8,384 ITALIA 
122.705 
122.705 
122.705 LIMCMMURG 
0.040 
0.048 
0,048 NEDCRLAND 
14.533 
— 
14.533 
14.533 PORTUGAL 
42,438 
0,002 
42.440 
42.440 UNITED 
KINGDOM 
423.722 
423,722 
423.722 CONNUNAUTE 
... 
— TOTAUI 1 
1.452.818 1 
0.002 t 
1.452,820 1 
1.452.820 1 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 21. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLANO PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
230 REFUNDS ON PIGMEAT 2,492 139.633 4,026 0,002 9,707 12.457 2.644 3.457 0.097 19.405 2.250 196.973 
231 INTERVENTION FOR PIGMEAT 9,235 11,507 4,984 8,522 12,410 0.304 5,350 7.172 0.354 42,042 
23 PIGMEAT 11.727 131,340 13,012 0.002 18.230 25.247 3.131 8,808 0.097 24.774 2.404 241,015 
00 
>o 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 22. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLANO PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
240 REFUNDS ON EGGS 1,939 0,364 8,544 0,004 2,048 3,844 0,191 0.005 30.414 0,798 48,395 
241 REFUNDS ON POULTRYNEAT 11,427 24.490 8,403 0.096 3,090 114.524 0.142 0,442 14.144 4.358 185,741 
24 EGGS AND POULTRYNEAT 13,544 24,874 17,147 0,105 5,138 120.370 0.142 0,833 0.005 44.778 5,154 234,134 
O O 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 23. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
2500 0.373 0.072 30,176 30.421 
250 REFUNDS ON CEREALS EXPORTED IN THE FORM 
OF CERTAIN SPIRITUOUS BEVERAGES 0.373 0.072 30,176 30,621 
251 REFUNDS ON CERTAIN GOODS OBTAINED BY 27.559 50,807 72,809 3,074 15,494 59,159 39.329 45.046 0,084 129.399 0.549 78,140 — 521.449 
PROCESSING AGRICULTURAL PRODUCTS 
25 REFUNDS ON CERTAIN GOODS OBTAINED BY 27,559 50.607 72,809 3.074 15,494 59.159 39.703 45.046 0,064 129.471 0,549 108,316 — 552,070 
PROCESSING AGRICULTURAL PRODUCTS 
I 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 24. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
270 ACCESSION COMPENSATORY AMOUNTS GRANTED 0.140 -0,249 -1,555 0.959 14.144 13,834 -0.032 7,407 — 0.311 5.483 0,403 41,444 
IN INTRA-COMHUNITY TRADE 
27 ACCESSION COMPENSATORY AMOUNTS GRANTED 0.140 -0,249 -1,555 0.959 14.144 13.836 -0.032 7.607 — 0.311 5.483 0,403 41,444 
IN INTRA-COMMUNITY TRADE 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 25. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
2800 N.C.A.ON IMPORTS GRANTED BY IMPORTING 
MEMBER STATES (WITH A OEPREC.CURRENCY) 212.957 0,275 30.721 0.077 11.467 0.257 9.220 244,993 
2601 M.C.A.ON INPORTS GRANTED BY EXPORT.MEMB. 
STAT.ON BEFALF OF IMP.MEMB.ST.(DEP.CUR.) 11.257 23,496 46,344 120.731 34.685 0,013 27.102 7,929 273,778 
2802 M.C.A.ON INPORTS LEVIED BY IMPORTING 
MEMBER STATES (WITH AN APPREC.CURREN.) -0.143 0.088 -0.004 -0,059 
2603 M.C.A.ON EXPORTS GRANTED BY EXPORTING 
MEMBER STATES (WITH AN APPREC.CURREN.) 0.292 7,903 0,001 0.093 0,074 8,343 
2804 M.C.A.ON EXPORTS LEVIED BY EXPORTING 
MEMBER STATES (WITH A OEPREC.CURRENCY) 0.007 0.008 -42.891 -0,008 -112.239 -20.455 -14,228 -0.131 -71.203 -281.340 
260 MONETARY COMPENSATORY AMOUNTS IN 
INTRA-COMMUNITY TRADE 11,243 23,504 48.514 150.044 8,170 39.213 14.304 -2,740 0.013 27.283 0.124 -53.985 245,735 
2610 PART.OF M.C.A.GRANTED ON IMP.(INTO MEMB. 
STAT.WITH A OEPREC.CURRJEXC.IMPORT LEVY 2.721 0,138 48,345 OJ 
51.204 
2811 M.C.A.ON EXPORTS GRANTED BY EXPORTING 
MEMBER STATES (WITH AN APPREC.CURRENCY) 3,709 0,006 1.781 0.382 5.879 
261 MONETARY COMPENSATORY AMOUNTS IN TRADE 
WITH NON-MEMBER COUNTRIES 3.709 2.721 0,004 0,138 1.781 48.727 57,082 
28 MONETARY COMPENSATORY AMOUNTS LEVIED OR 11,243 23,504 52.223 152,767 8.177 39.213 14.304 -2,402 0,013 29.044 0,124 -5,256 — 322.817 
PAID IN TRADE IN AGRICULTURAL PRODUCTS 
SOUSTOTAL 
10 - 26 
INCL 554,700 999,713 3.714,246 1.(59,113 1.802,472 4.424,130 1.070.913 4.510.484 1.624 3.494.691 144,477 1.473.901 12.411 24.291.707 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 26. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLANO PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
290 CLEARANCE OF PREVIOUS YEARS'ACCOUNTS AND -7,836 0,383 -28,910 -40,433 0,749 -88,528 -1,597 -81,595 -0.021 -1.361 0.041 46,400 -202.689 
RESIDUAL APPROPRIATIONS 
2920 REFUNDS IN CONNECTION WITH COMMUNITY 
FOOD AID (CEREALS) 4,191 3,054 1.103 0,325 50,397 2,062 0.319 63,452 
2921 REFUNDS IN CONNECTION WITH COMMUNITY 
FOOD AID (RICE) 15,253 15,253 
2923 REFUNDS IN CONNECTION WITH COMMUNITY 
FOOD AID (VEGETABLE OIL/OLIVE OIL) 0,230 0,230 
2924 REFUNDS IN CONNECTION WITH COMMUNITY 
FOOD AIO (SKIMMED-MILK POWDER) 
2925 REFUNDS IN CONNECTION WITH COMMUNITY 
FOOD AIO (BUTTEROIL) 31,307 
22,378 0,005 31.312 
22,376 O 4> 
292 REFUNDS IN CONNECTION WITH COMMUNITY 
FOOD AIO 4,191 36,742 1.103 0,325 50.397 17,545 0,324 132,425 
294 INTEREST PAYMENTS TO M.S..AFTER CHANGES 
IN METHOD OF FINANC.EAGGF GUAR.EXPEND. 14.094 18,554 12.151 1,708 46.507 
2970 2,192 0,456 3,319 1.063 31,687 25.522 4.268 42,947 0,041 2.464 5.391 13,141 132.929 
297 DISTRIBUTION OF AGRICULT.PRODUCTS TO THE 2.192 0,454 3.519 1.043 31,687 25,522 4,268 42,947 0,041 2.444 5,391 13,141 
MOST DEPRIVED PERSONS IN THE COMMUNITY 132,929 
29 OTHER EXPENDITURE 0,547 0,839 31,350 -22.174 51,314 -12,409 14.642 -21,063 0,019 1,303 7,140 59,844 111.372 
I 
! SOUSTOTAL 
! TITRE I FEOGA GARANTIE ! 
I EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 27. \ 
I ! 
I BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX I 
I LAND KINGDOM 1 
I 142 557,247 1.000,551 3.747,618 1.636,939 1.853,787 4.613.529 1.065.755 4.469,601 1,845 3.496,194 173,637 1.733,766 12,611 24.403,080 ! 
vO 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 28, 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
3900 SET-ASIOE OF FARMLAND 5,818 0.167 5,985 
390 SET-ASIDE OF FARMLAND AND INCOME AIDS 5,818 0.167 5,985 
39 SET-ASIOE OF FARMLAND AND INCOME AIDS 5,818 0,167 5,985 
(1) 
(1) This amount is charged, in equal proportions, to the Guarantee and Guidance sections of the EAGGF. The sum charged 
to the Guarantee section is therefore ECU 5,985 - 2,992 millions 
2 
o o 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 29. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
400 REFUNDS ON FISHERY PRODUCTS 0.065 0.045 
4010 0,304 1,598 0.267 0.429 8.679 6,124 0.914 2,282 0,215 0.728 2,389 23,933 
401 INTERVENTION FOR FISHERY PRODUCTS 0,304 1,598 0.267 0,429 8.479 6.124 0,914 2.282 0.215 0.728 2,389 23.933 
40 COMMON ORGANIZATION OF THE HARKET IN 0.304 1,598 0,267 0.429 8,679 6.124 0,914 2,287 
FISHERY PRODUCTS 0,260 0,728 2,389 23.996 
FEOGA GARANTIE 
EXPENDITURE CHARGED AGAINST THE 1989 BUDGET (ECU million) 30. 
BELGIQUE DANMARK DEUTSCH- ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND PORTUGAL UNITED COMMUNAUTE TOTAUX 
LAND KINGDOM 
610 REPAYMENT TO N.S.OF COSTS FOR DEPRECIAT. 16.094 8.827 185.947 13,557 40,727 128,902 53,471 124,231 — 43,177 — 35,253 — 650.188 
OF STOCKS OF AGRICULTURAL PRODUCTS 
__._.__..._._..___.____...__..--..__.._.___ . ........ .. ... . . . ..* ..... . . . .... ....... .—.. 
811 REPAYNENT TO M.S.OF COSTS UNDER SPECIF. 12,188 4.105 252.009 — — 41.934 101.015 5.437 — 210,239 — 145,557 — 792,686 
MEASURES OF BUTTER FROM PUBLIC STOCKS 
81 REPAYN.TO M.S.OF COSTS OEPREC.OFSTOCKS 28,285 12,932 437,956 13,557 40.727 190,839 154.485 129,869 — 253,416 —- 180,810 — 1.442.674 
4 SPECIF.MEAS.BUTTER FROM PUBLIC STOCKS 
TOTAL GENERAL 565,638 1.015.061 4.191,459 1.450.925 1.903,192 4.010.491 1.241.321 4.421,752 1,645 3.749.890 174,345 1.914.945 12.411 25.875.934 
>o 
00 
ANNEX 3 : EAGGF GUARANTEE EXPENDITURE BY SECTOR (1) s 
(ECU ml 11 Ion) 
NATURE OF EXPENDITURE 1984 1 985 1 986 19 8 7 (8) 19 8 8 (9) 19 8 9 (10) 
CEREALS 
Refunds 
Intervention, of which : 
- prediction refunds 
. - aid for duTUi «heat 
-storage 
Refunds 
Intervention 
SUGAR 
Refunds 
Intervention, of which : 
- reiitursannt storage costs 
OLIVE OIL 
Refunds 
Intervention 
OILSEEDS 
PROTEIN PLANTS Refunds 
Intervention, of which : 
- rape and sunflower seed 
-soya 
•JN_ 
Refunds 
Intervention, of which : 
- peas and field beans 
FIBRE PUWSAJC SILKWORMS, of which 
- f lax and heap 
cotton 
mIT AM) VEGETABLES 
Refunds 
-fresh 
-pn 
Intervention 
-fresh r m 
Refunds 
Intervention, of which : 
- private storage aid 
- cctrjulsory dlsti I lat ion of by-products 
of wins-Kking 
-distillation 
TOBACCO 
Refunds 
Intervention 1.650,0 
918,3 
731,7 2.310,2 3.391,2 4.137,6 4.264,4 3.150,0 
175,5 
200,3 
355,8 1.076,7 
1.233,5 
180.8 
242,5 
810,1 1.711,7 
1.679,5 
47,8 
1,631,5 
1.096,4 
655,6 
215,6 
108,0 
1.454,6 26,9 
20,9 
1.190,0 
441,5 
8,1 
1.068,3 
0,4 
655,2 
215,6 429,8 
58,6 
1.396,0 
1.222,6 
18,6 
1.204,0 
776,4 613,1 
32,7 
7,2 
139,4 
76,1 
19,2 
88,2 
50,1 
8,5 
569,1 
826,9 
135,6 
88,6 
852,4 50,1 
1.804,5 
692,2 
1.110,6 
372,5 
240,6 
1.230,7 36,6 
13,5 
1.352,8 
451,7 
19,2 
673,0 
3,4 
1.107,2 
372,5 440,1 
74,5 
1.156,2 
921,4 
36,5 
739,9 862,9 18,9 
902,5 
32,0 
830,9 982,8 
115,5 
9,4 
255,5 
116,9 
27,2 
212,7 
63,0 
11,5 
338,9 
817,3 
87,6 
65,3 
599,0 93,7 
1.725,5 
604,3 
2.027,5 
460,0 
565,0 
966,0 177,7 
210,8 
1.347,4 
-56,4 3.070,6 
1.067,0 
91,9 
1,8 
1.238,4 
487,2 
29,4 
574,9 
2,3 
2.025,2 470,8 
1.801,8 
200,2 
23,1 
460,0 
630,8 
782,2 77,0 
909,0 
11.2 
619,6 
32,1 
750,1 305,4 
154,1 
32,2 
532,2 
65,0 
12,0 
491,8 
417,2 
70,5 
55,8 
406,1 99,0 
2.035,6 
1.139,2 
2.687,4 
587,2 
306,4 
967,1 235,6 
256,2 
937,2 
-378,7 2.924,6 
1.339,8 
95,0 
4.0 
1.515,8 
519,8 
23,2 
1.116,0 
64,0 
2.623,4 469,0 
2.189,0 
405,3 
29,7 
587,2 
800,3 
803,6 66,8 
900,3 
20,4 
779,9 
43,1 
760,5 419,4 
167,3 
21,2 
284,7 
52,3 
14.5 
533,7 
366,6 
57,2 
91,4 
508,0 72.8 
2.081,8 
945,0 
2.971,8 
689,3 
454,2 
708,2 393,3 
275,1 
1.274,7 
-677,5 2.597,1 
552,9 
61,0 
11,8 
1.566,2 
515,6 
64,2 
880,8 
24,9 
2.946,9 428,9 
2.341,0 
570,2 
33,3 
689,3 
64,6 
643,6 
1.545,6 
43,5 
1.502,1 
966,1 471,1 
217,5 
25,5 
428,2 
48,5 
16,1 
234,0 
409,6 
85,5 
96,9 
627,5 111,5 
1.979,8 
1.464,5 
2.673,6 
642,9 
600,7 
1.018,6 301,2 
365,0 
576,4 
-799,3 
45,3 
66,2 
1.451,3 
528,5 
93,1 
1.371,4 
5,8 
2.667,8 421,6 
2.176,6 
460,4 
30.0 B 
642,9 
78,7 
939,9 
1.147,7 
45,3 
1.102,4 
1.138,8 423,5 
218,9 
29,1 
570,9 
63,4 
15,3 
433,1 
506,8 
67,4 
78,5 
422.5 
43,1 
923,0 61,9 
1.076,9 
NATURE OF EXPENDITURE 
OTHER SECTORS, of which : 
- 9wds 
- hoos 
MILK AND MILK PRODUCTS 
Refunds 
IntervBrrtlon, of which : 
-aid for sklnedillk 
-storage of skinned al Ik 
- storage of butter 
- disposal of butter 
- partlclp. by illk producers 
- ooanslon of the nrkets 
BEErTVEAL 
Refunds 
Intervention, of which : 
- publIc and private storage 
-calf preiluFjs 
SHEEPMEATAICQOAMAT 
Refunds 
„ Intervention 
PlGkEAT 
Refunds 
.Intervention^. 
EGGS AM) POULTRY 
Refunds 
.Refunds 
FISHERIES 
Refunds 
Intervention 
TOTAL AGRICULTURAL EXTOOITURE 
Accession oo>pensatory ararts 
Ifenetary onuensatory aunts 
Depreciation of Intervention stocks 
QoMiilty copensatlcn •assures 
Food aid refunds (•) 
Interest following changes In financing 
•ethod 
Free distribution of Intervent. products 
Set-aside 
TOTAL EXTOOITURE EAflGF GUARANTEE SECTION 1 984 
51,5 
42.4 
8,4 
5.441,7 
1.943,4 
3.498.3 
1.841,3 
819.5 
830,9 
450,1 
-749,2 
183,7 
2.546,8 
1.392,7 
1.154,1 
814,5 
152,4 
433,5 
433,5 
196,9 
157,0 
38,9 
69,8 
69,8 
20,4 
49,4 
382,4 
382,4 
15,6 
0,9 
14,7 
17.995,7 
0,3 
375,9 
18.371,9/18.346,4 (2) 1985 
54,6 
46,4 
8.2 
5.933,2 
2.028,2 
3.905,0 
1.827,1 
580,0 
1.325,8 
403,0 
-637,3 
210.0 
2.745.8 
1.338.6 
1.407,2 
1.094,1 
116,6 
502,4 
502,4 
165,4 
102,9 
62,5 
63.2 
63.2 
18,2 
45,0 
440,8 
440,8 
16,1 
-0,1 
16,2 
19.517,2 
0,2 
189,6 
136,4 
19.843,4/19.744,2 (3) 1 986 
56,4 
46.5 
8,6 
5.406.8 
2.154,9 
3.250.9 
1.950,3 
384.0 
1.035,4 
201.7 
-717.1 
204.7 
3.481,7 
1.214,3 
2.267.4 
2.030.5 
72,2 
616.9 
616,9 
151,8 
75,3 
76,5 
97,8 
97,8 
27,3 
70,5 
502.9 
502.9 
18.0 
18.0 
21.597,5 
5,8 
475,9 
113,5 
22.192,7/22.137,4 (4) 19 8 7 (8) 
44,5 
41.9 
1,5 
5.013,0 
2.257.9 
2.755.1 
1.743,0 
244,4 
705,5 
252,5 
-601,3 
310,9 
2.148,7 
877,9 
1.270,8 
1.050,3 
19.4 
573,8 
573,8 
158,6 
111,5 
47,1 
152,0 
152,0 
29,1 
122,9 
590,3 
590.3 
17.4 
17,4 
22.261.6 
18.0 
636,9 
259,4 
23.175,9/22.967,7 (5) 19 8 8 (9) 
59,8 
50,4 
8,5 
5.915,1 
3.013,9 
2.901,2 
1.623,3 
-10,5 
708.1 
241,5 
-535,6 
782,3 
2.475,8 
768,7 
1.707,1 
1.245,6 
42.4 
1.293,7 
1.293,7 
215,6 
172,3 
43,3 
194,1 
194,1 
33,3 
160,8 
602.4 
602.4 
46.9 
-0,1 
47,0 
25.502,6 
64,3 
505,2 
1.240,0 
242,7 
37,5 
65,8 
27.658,1 / 27.687,3 (6) 19 8 9 (10) 
83,8 
62,2 
21,0 
4.987,0 
2.868.6 
2.118,4 
1.080,5 
2,2 
456,4 
354,9 
-890.3 
1.001,5 
2.428,5 
1.343,1 
1.085,4 
663,0 
40,6 
1.452,8 
1.452,8 
261,0 
199,0 
62,0 
234,1 
234,1 
48,4 
185,7 
552,1 
552,1 
24,0 
0,1 
23,9 
23.951,4 
41,5 
322,8 
1.442,9 
132,6 
48,5 
132,9 
3,0 
26.075,6/25.872,9 (7) (ECU ml11 ion; 
(1) The expenditure Is based on the c I a ins by the Member States under the advance payaents arrangements and charged to each 
year in accordance with Article 97 of the Financial Regulation. 
(2) Allowing for the reduction In expenditure of ECU 25.5 ni I I Ion when the 1978/79 accounts were cleared. 
(3) Allowing for the reduction In expenditure of ECU 99.2 million when the 1980/81 accounts were cleared. 
(4) Allowing for the reduction In expenditure of ECU 55.3 million when the 1982 accounts were cleared. 
(5) Allowing for the reduction In expenditure of ECU 208.2 million when the 1983/85 accounts were cleared. 
(6) Including the balance outstanding for the clearance of accounts for 1985 and previous years (+ ECU 29.2 Million). 
(7) Allowing for the reduction in expenditure of ECU 202.7 million when the 1986 accounts were cleared. 
(8) Expenditure charged against the 1987 budget (1 January 1987/end of October/beginning of November 1987). 
(9) Expenditure charged against the 1988 budget (beginning of November 1987/15 October 1988). 
(10) Expenditure charged against the 1989 budget (16 October 1988/15 October 1989). 
(*) Before 1987 such refunds were Incorporated In the heading "Refunds" for the different sectors. o 
i 
ANNEX 4 
BREAKDOWN OF EXPENDITURE BY SECTOR AND ECONOMIC CATEGORY - 1989 (1) 
(2) SECTOR TOTAL EXPENDITURE 
ECU million EXPORT REFUNDS 
ECU mi ion INTERVENTION (3) 
ECU million 
10 
11 
120 to 
125 to 
13 
14 
15 
16 
17 
18 
20 
21 
22 
23 
24 
25 
40 
27 
28 
292 
81 CEREALS, of which 
- rice 
SUGAR 
124 OLIVE OIL 
128 OILSEEDS, of which 
- rape and sunflower seed 
PROTEIN PLANTS, of which 
- peas and field beans 
- dried fodder 
FIBRE PLANTS, of which 
- flax and hemp 
- cotton 
FRUIT AND VEGETABLES, of which 
- processed fruit and vegetables 
WINE PRODUCTS 
TOBACCO 
OTHER SECTORS, of which 
- seeds 
- hops 
MILK PRODUCTS, of which 
- skimmed ml Ik 
- butter and cream 
BEEF/VEAL 
SHEEPMEAT AND GOATMEAT 
PIGMEAT 
EGGS AND POULTRY 
NON-ANNEX II PRODUCTS 
FISHERIES 
ACCESSION COMPENSATORY AMOUNTS 
MONETARY COMPENDATORY AMOUNTS 
FOOD AID REFUNDS 
DEPRECIATION OF STOCKS 
SUBTOTAL 
290 
TOTAL CLEARANCE PREVIOUS YEARS 
OTHER 3.261,5 
1.979,8 
1.464.5 
2.673,6 
642,9 
600,7 
1.018,6 
1.147,7 
1.138,8 
83,8 
4.987,0 
2.428,5 
1.452,8 
261,0 
234,1 
552,1 
24,0 
41,5 
271,6 
132,6 
1.442,9 (111.5) 
(2.182,4) 
(423,5) 
(218,9) 
(29,1) 
(570,9) 
(522,1) 
(62,2) 
(21,0) 
(1.480,9) 
(1.715,0) 12.6 
7.7 
5,7 
10,3 
2.5 
2.3 
3,9 
4,4 
4.4 
0,3 
19,3 
9,4 
5,6 
1.0 
0,9 
2,1 
0,1 
0,2 
1.1 
0,5 
5,6 2.642,4 
1.451.3 
93,1 
5,8 
78,7 
45,3 
61,9 
2.868,6 
1.343,1 
199,0 
234,1 
552,1 
0,1 
5,9 
132,6 (45.3) 
(5.8) 
(-) 
(-) 
(-) 
(-) 
(15,3) 27,2 
14,9 
1.0 
0.1 
(398,2) 
(903,7) 0,8 
0,5 
0,6 
29,5 
13.8 
2,0 
2,4 
5,7 
0,1 
1.4 
25.840,0 
- 202,7 
235,6 (4) 99,9 
-0,8 
0,9 
25.872,9 100 9.714,0 
.e. 37,6 X 619,1 
528,5 
1.371,4 
2.667,8 
642,9 
600,7 
939,9 
1.102,4 
1.076,9 
83,8 
2.118,4 
1.085,4 
1.452,8 
62,0 
23,9 
41,5 
265,7 
1.442,9 (66,2) 
(2.176,6) 
(423,5) 
(218,9) 
(29,1) 
(570,9) 
(506,8) 
(62,2) 
(21,0) 
(1.082,7) 
(811,3) 
100 16.126,0 
i.e. 62,4 X 3,8 
3.3 
8,5 
16,5 
4,0 
3,7 
5,8 
6,8 
6,7 
0,5 
13,1 
6,7 
9,0 
0,4 
0,2 
0,3 
1.7 
9,0 
100 
of agricultural expenditure (25.840,0) 
(1) Expenditure charged against 1989 budget. 
(2) Budget chapters or articles. 
(3) The breakdown of Intervention by economic category is shown in Annex 8. 
(4) Including ECU 51,2 million in MCAs granted on Imports (Item 2810) 
o 
i 
Total expenditure (including CAs) 
Refunds (R)(**) 
Intervention and siniiar (1) 
neasures 
Cereals (excl. rice) 
R (••) 
1 
Sugar 
R 
1 
Fruit and vegetables 
R 
1 
Milk and milk products 
R (*•) 
1 
Beef/veal 
R 
1 
Other products or headings (3) 
R (••) 
1 19 8 4 
ECU mill. 
18.371.9 
6.619.1 
11.752,8 
1.650.0 
918.3 
731,7 
1.631,5 
1.190,0 
441,5 
1.454,6 
58.6 
1.396,0 
5.441,7 
1.943,4 
3.498,3 
2.546,8 
1.392,7 
1.154,1 
5.647,3 
1.116,1 
4.531,2 X 
100,0 
36,0 
64,0 
9,0 
5.0 
4,0 
8.9 
6,5 
2.4 
7.9 
0,3 
7,6 
29,6 
10,6 
19,0 
13,9 
7,6 
6,3 
30,7 
6.1 
24,6 19 8 5 
ECU mill. 
19.707,0 
6.716,1 
12.990,9 
2.310,2 
1.076.7 
1.233,5 
1.804,5 
1.352,8 
451,7 
1.230.7 
74.5 
1.156.2 
5.933,2 
2.028,2 
3.905,0 
2.745.8 
1.338,6 
1.407,2 
5.682,6 
845,3 
4.837,3 X 
100,0 
34,1 
65,9 
11.7 
5,5 
6,2 
9,2 
6,9 
2,3 
6,3 
0,4 
5,9 
30,1 
10,3 
| 19,8 
13,9 
6,8 
7,1 
28,8 
4,3 
24,5 19 8 6 
C) 
ECU mill. 
22.079,2 
7.409,2 
14.670,0 
3.391,2 
1.711,7 
1.679,5 
1.725,6 
1.238,4 
487,2 
986,0 
77,0 
909,0 
5.405,7 
2.154,9 
3.250,8 
3.481,7 
1.214,3 
2.267,4 
7.089,0 
1.012,9 
6.076,1 X 
100,0 
33.6 
66,4 
15,4 
7,8 
7,6 
7,8 
5,6 
2.2 
4,4 
0,3 
4.1 
24,5 
9,8 
14,7 
15,8 | 
5,5 
10,3 
32,1 
4,6 
27,5 19 8 7 
(D(*) ECU mill. 
23.175,9 
9.374,8 
13.801.1 
4.223,9 
3.156,8 
1.067,1 
2.035,6 
1.515,8 
519,8 
967,1 
66,8 
900,3 
5.182,3 
2.427,2 
2.755,1 
2.148,7 
877,9 
1.270,8 
8.618,3 
1.330,3 
7.288,0 j X 
100,0 
40,4 
59,6 
18,2 
13,6 
4,6 
8,8 
6,6 
2,2 
4,2 
0.3 
3,9 
22,3 
10,4 
11,9 
9,3 
3,8 
5,5 
37,2 
5,7 
31,5 19 8 8 
(2)(*) 
ECU mill. 
27.554,8 
9.928,8 
17,626,0 
4.422,8 
3.083,0 
1.339.8 
2.081,8 
1.566,1 
515,7 
708,2 
64.5 
643.7 
5.983,5 
3.082,3 
2.901,2 
2.475.8 
768,7 
1.707,1 
11.882,7 
1.364,2 
10.518,5 X 
100,0 
36,0 
64,0 
16,1 
11,2 
4,9 
7.6 
5.7 
1.9 
2,5 
0,2 
2.3 
21.7 
11,2 
10.5 
9,0 
2,8 
6,2 
43,1 
4,9 
38,2 19 8 9 
(*) 
ECU mill. 
25.840,0 
9.714,0 
16.126,0 
3.213,5 
2.660,6 
552,9 
1.979,8 
1.451,3 
528,5 
1.018.6 
78,7 
939,9 
5.040,7 
2.922,3 
2.118,4 
2.428,5 
1.343,1 
1.085,4 
12.158,9 
1.258,0 
10.900,9 X 
100,0 
37,5 
62,5 
12,4 
10.2 
2,2 
7,7 
5.6 
2,1 
3,9 
0,3 
3,6 
19,5 
11,3 
8,2 
9,4 
5,2 
4,2 
47,1 
4,9 
42,2 ANNEX 5 : BREAKDOWN OF EXPENDITURE BY SECTOR AND ECONOMIC CATEGORY (1984-1989) 
(*) Not Including consequences of accounts clearance, Community compensation measures, set-aside or miscellaneous measures (interest following change in 
financing method, free distribution etc.). 
(••) Including refunds for food aid operations. 
(1) Expenditure charged against 1987 budget. 
(2) Expenditure charged against 1989 budget. 
(3) Including "Depreciation of stocks" (1.240,0 in 1988 and 1.442,9 in 1989). 
SECTOR 
Cereals 
Rice 
Sugar 
Olive oil 
Oilseeds 
Protein plants 
Fibre plants & sllkwons 
Fruit and vegetables 
Nine 
Tobacco 
Other sectors 
Milk products 
Beef/vea 1 
Sheepieat and goatieat 
Plgieat 
Eggs and poultry 
Non-Annex II products 
Fisheries 
TOTAL AGRICULT. EXPENDITURE 
Accession coipens. aiounts 
Monetary coipens. aiounts 
Couun. coipensat. leasures 
Deprec. Intervention stocks 
Food aid refunds (*) 
Interest following changes 
In financing lethod 
Free distribution of Inter­
vention products 
Set-aside 
TOTAL AGRICULT. EXPENDITURE 
EAGGF GUARANTEE SECTION 19 8 3 
ECU llll. 
2.411,2 
92,9 
1.316,2 
675,3 
945,6 
142,3 
160,0 
1.196,1 
659,2 
671,3 
55,6 
4.396,1 
1.736,5 
305,6 
145,0 
123,3 
343,2 
25,7 
15.431,1 
0,3 
488,3 
15.919,7 
15.811,6 X 
15,3 
0.6 
8,3 
4.3 
5,9 
0,9 
1.0 
7.5 
4.1 
4.2 
0.3 
27,6 
10,9 
1,9 
0,9 
0.8 
2,2 
0,2 
96,9 
0,0 
3,1 
100,0 
(2) 19 8 4 
ECU llll. 
1.650,0 
47,8 
1.631,5 
1.096.4 
655,6 
215.6 
108.0 
1.454.6 
1.222,6 
776,4 
51,5 
5.441,7 
2.546,8 
433,5 
195,9 
69,8 
382,4 
15,6 
17.995,7 
0,3 
375,9 
18.371,9 
18.346,4 X 
9,0 
0,3 
8,9 
5,9 
3,6 
1,2 
0,6 
7,9 
6,6 
4,2 
0,3 
29,6 
13,9 
2,3 
1,1 
0,4 
2,1 
0,1 
98,0 
0,0 
2.0 
100,0 
(2) 19 8 5 
ECU llll. 
2.310,2 
50,1 
1.804,5 
692,2 
1.110,6 
372.5 
240.7 
1.230,7 
921,4 
862,9 
54.7 
5.933,2 
2.745,7 
502,4 
165,3 
63,2 
440,9 
16,1 
19.517,4 
0,2 
189,6 
136,4 
19.843,4 
19.744,2 ( X 
11.7 
0,3 
9,1 
3,5 
5,6 
1,9 
1.2 
6.2 
4.7 
4,3 
0.3 
29,9 
13,8 
2.5 
0.8 
0.3 
2,2 
0.1 
98,4 
0,0 
0,9 
0,7 
100,0 
2) 19 8 6 
ECU llll. 
3.391,2 
93,7 
1.725,5 
604,3 
2.027,5 
460,0 
565.0 
986,0 
630,8 
782.2 
56,4 
5.405,8 
3.481,7 
616,9 
151,8 
97,8 
502,9 
18,0 
21.597,5 
5,8 
475,9 
113,5 
22.192,7 
22.137,4 X 
15,3 
0.4 
7.8 
2,7 
9.1 
2.1 
2.5 
4.4 
2.8 
3,5 
0.3 
24.4 
15,7 
2,8 
0.7 
0,4 
2,3 
0.1 
97,3 
0.0 
2,2 
0.5 
100.0 
(2) 19 8 7 (3) 
ECU llll. 
4.137.6 
99,0 
2.035,6 
1.139,2 
2.687,4 
587.2 
306.4 
967,0 
800,3 
803.6 
44,5 
5.013,0 
2.148,7 
573,8 
158.6 
152,0 
590.3 
17.4 
22.261,6 
18.0 
636.9 
259.4 
23.175,9 
22.967.7 < X 
17,8 
0.4 
8.8 
4.9 
11.6 
2.5 
1.3 
4.2 
3.5 
3.5 
0,2 
21.6 
9,3 
2.5 
0.7 
0.7 
2,5 
0,1 
96.1 
0.1 
2,7 
1,1 
100,0 
I2) 19 8 8 (4) 
ECU llll. 
4.264.4 
72,8 
2.081,8 
945,0 
2.971,8 
689,3 
454,2 
708.2 
1.545,6 
966.1 
59.8 
5.915.1 
2.475.8 
1.293,7 
215,6 
194,1 
602,4 
46,9 
25.502,6 
64.3 
505,2 
1.240.0 
242,7 
37,5 
65,8 
27.658,1 
27.687,3 X 
15,4 
0,3 
7,5 
3.4 
10,7 
2.5 
1.6 
2.5 
5,6 
3,5 
0,2 
21,4 
9,0 
4,7 
0,8 
0.7 
2.2 
0.2 
92,2 
0.2 
1.9 
4.5 
0,9 
0.1 
0.2 
100.0 
(2) 19 8 9 (5) 
ECU llll. 
3.150,0 
111,5 
1.979,8 
1.464,5 
2.673,6 
642,9 
600,7 
1.018,6 
1.147.7 
1.138.8 
83.8 
4.987.0 
2.428,5 
1.452,8 
261,0 
234,1 
552,1 
24,0 
23.951,4 
41,5 
322,8 
1.442,9 
132,6 
48,5 
132,9 
3,0 
26.075,6 
25,872,9 X 
12,1 
0,4 
7,6 
5,6 
10,3 
2,5 
2,3 
3.9 
4,4 
4,4 
0,3 
19,1 
9,3 
5,6 
1,0 
0,9 
2.1 
0,1 
91,9 j 
0.2 
1.2 
5,5 
0,5 
0.2 
0,5 
p.i. 
100,0 
[2) 
(1) The expenditure Is based on the clalis by the Meiber States under the advance payients arrangeients and charged to each year In accordance with Article 97 
of the Financial Regulation. 
(2) Including the consequences of the clearance of accounts for previous years. 
(3) Expenditure charged against the 1987 budget (1 January 1987 - 31 October 1987). 
(4) Expenditure charged against the 1988 budget (1 Noveiber 1987 - 15 October 1988) 
(5) Expenditure charged against the 1989 budget (16 October 1988 - 15 October 1989) 
(•) Before 1987, such refunds were Incorporated In the heading "Refunds" for the different sectors. ANNEX 6 : EAGGF GUARANTEE EXPENDITURE BY SECTOR AND AS PERCENTAGE (1983-1989) (1) 
- 105 -
Annex 7 
ANNEX 8 ; BREAKDOWN OF EXPENDITURE BY ECONOMIC CATEGORY 
BUDG. 
CHAP./ 
ART. 
10 
11 
120/124 
125/128 
13 
14 
15 
16 
17 
18 
20 
21 
22 
23 
24 
25 
40 
27 
28 
81 SECTOR 
CEREALS, of which 
- rice 
SUGAR 
OLIVE OIL 
OILSEEDS, of which 
- rape and sunflower 
PROTEIN PLANTS, of which 
- peas and field beans 
- dried fodder 
FIBRE PLANTS, of which 
- flax and heip 
- cotton 
- siIkworis 
FRUIT & VEGETABLES, of which 
- processed fruit & veget. 
NINE 
TOBACCO 
OTHER SECTORS, of which 
- seeds 
- hops 
MILK PRODUCTS, of which 
- skilled il Ik 
- butter and créai 
BEEF/VEAL 
SHEEPMEAT AND GOATMEAT 
PIGMEAT 
EGGS -AND POULTRY 
NON-ANNEX 11 PRODUCTS 
FISHERIES 
ACCESSION COMPENS. AMOUNTS 
MONETARY COMPENS. AMOUNTS 
( intra-Conunity trade) 
DEPRECIATION OF STOCKS 
AND DISPOSAL OF BUTTER 
TOTAL 
X TOTAL 
INTERVENTION 
(1) 
619,1 
(66,2) 
528,5 
1.371,4 
2.667,8 
(2.176,6) 
642,9 
(423,5) 
(218,9) 
600,7 
(29,1) 
(570,9) 
(0,6) 
939,9 
(506,8) 
1.102,4 
1.076,9 
83,8 
(62,2) 
(21,0) 
2.118,4 
(1.082,7) 
(811,3) 
1.085,4 
1.452,8 
62,0 
23,9 
41,5 
265,7 
1.442,9 
16.126,0 
100 X STORAGE 
(2) 
576,4*(6) 
(-) 421,6 
54,6 
-4,4* 
(-4,4)* 
1,4 
(1,4) 
0,5 
(0,5) 
352,2* 
104,6* 
571,6* 
(2,2)* 
(456,4)* 
663,0*(6) 
p.l. 
62,0 
Ô.1 
1.442,9** 
4.246,5 
26,3 X WITH­
DRAWALS 
AND SIMILAR 
OPERATIONS 
285,0 
(-) 501,0 
9,5 
795,5 
4,9 X (ECU mill Ion) 
PRICE 
COMPENSATING 
AIDS 
(3) 
42,7(4) 
(66,2) 
106,9 
1.316,8 
2.672,2 
(2.181,0) 
642,9 
(423,5) 
(218,9) 
599,3 
(27,7) 
(570,9) 
(0,6) 
654,4 
(506,3) 
91,3 
972,3 
83,8 
(62,2) 
(21,0) 
771,1(5) 
(1.080,5) 
(354,9) 
381 ,8 
1.452,8 
14,3 
41,5 
265,7 
10.109,8 
62,7 X GUIDANCE 
PREMIUMS 
157,9 
775,7 
(-) 
(-) 
40,6 
974,2 
6,1 X 
(1) Expenditure charged against the 1989 budget. 
(2) Details of expenditure on storage are given In Annex 9. 
(3) The breakdown of expenditure on Intervention in the fori of price compensating aids Is given In Annex 10. 
(4) This aiount takes into account the collection of the co-responsibility levy and additional co-responsibility levy 
(- ECU 799,3 illllon) ( I teas 1030 and 1032). 
(5) This aiount takes account of the financial contribution of illk producers (- ECU 890,3). 
(6) Including aid to Poland (cereals : ECU 2,7 union and beef : ECU 4.6 illllon). 
* Not including depreciation under Chapter 81. 
*• Of which ECU 230.2 illllon for cereals. ECU 11.7 illllon for oilseeds. ECU 83.9 illllon for alcohol. ECU 17.3 illllon 
for tobacco. ECU 70.3 illllon for butter. ECU 2.4 illllon for illk powder and ECU 234.4 illllon for beef/veal; the 
sui of ECU 792,7 illllon has also lade up the first Installent of reimbursement under the special butter disposal 
prograne. o o 
ANNEX 9 
Breakdown of Intervention expenditure In the form of storage costs 
(1989) 
(ECU million) 
(1) Sugar storage costs are covered by charging storage levies to sugar manufacturers. 
(2) This figure does not take account of compensatory aid of ECU 8.06 million to cover losses on sales of goods In private storage. 
(3) The amount of the depreciation is broken down as follows: "mixed" alcohol ECU 200.32 million and "public" alcohol ECU 151.64 million. 
(*) Including reimbursements to Member States of expenditure in connection with the depreciation of agricultural product stocks (Art. 810:ECU 650.2 
million) but excluding reimbursements to Member States for expenditure incurred in disposing of public butter stocks (Art. 811: ECU 792.7 million) 
and aid to Poland (ECU 2.7 million In cereals and ECU 4.6 million in beef). PRODUCTS 
Cereals 
Rice 
Sugar 
Olive oil 
Oilseeds (rape and sunflower) 
Fibre flax and hemp 
Figs and dried grapes 
Wine/alcohol 
Tobacco 
Ml Ik products 
- skimmed milk powder 
- butter and cream 
- cheese 
Beef 
Sheep and goatmeat 
Pigmeat 
Fisheries 
TOTAL Total 
a * b + c 
803,87 
0,22 
421,61 
54,62 
7,35 
1,40 
0,49 
436,05 
121,85 
644,29 
4,61 
526,69 
112,99 
892,77 
0,00 
62,04 
0,11 
3.446,70 (*) Private 
storage 
b 
0,00 
0,22 
422,96 
7,41 
0,00 
1,40 
0,49 
67,41 
0,00 
184,58 
0,00 
71,59 
112,99 
102,46 
0,00 
62,04 
0,11 
849,09 of which 
Public 
storage 
c=d+e+f+g+h 
803,87 
0,00 
1,35 
47,21 
7,35 
0,00 
0,00 
368,64 
121,85 
459,72 
4,61 
455,11 
0,00 
790,32 
0,00 
0,00 
0,00 
2.597,61 Technical 
costs 
d 
209,48 
0,00 
1,35 
40,84 
2,18 
0,00 
0,00 
7,26 
8,46 
10,09 
0,29 
9,80 
0,00 
109,42 
0,00 
0,00 
0,00 
386,36 Financing 
costs 
e 
59,61 
0,00 
0,00 
37,43 
2,54 
0,00 
0,00 
8,45 
3,82 
172,61 
1,58 
171,03 
0,00 
49,11 
0,00 
0,00 
0,00 
333,57 Difference 
between 
buying-in and 
selIing prices 
f 
- 248,64 
0,00 
0,00 
31,49 
10,09 
0,00 
0,00 
0,98 
10,77 
203,12 
0,30 
202,82 
0,00 
127,26 
0,00 
0,00 
0,00 
51,92 Depreciation 
g 
783,42 
0,00 
0,00 
0,43 
12,72 
0,00 
0,00 
351,96 
98,82 
73,90 
2,44 
71,46 
0,00 
504,53 
0,00 
0,00 
0,00 
1.825,76 (1) 
(2) 
(3) 
- 108 -
ANNEX 10 
Breakdown of Intervention expenditure In the form 
of price compensating aids 
(ECU mil I ion) 
SECTOR TOTAL Product ion 
aid Aid for 
processing 
and final 
consumption 
CEREALS, of which 
- rice 
- co-responsiblIIty 
SUGAR 
OLIVE OIL 
OILSEEDS. Of which 
- rape and sunflower 
PROTEIN PLANTS, of which 
- peas and field beans 
- drled fodder 
FIBRE PLANTS, Of which 
-flax and hemp 
- cotton 
- siIkworms 
FRUIT AND VEGETABLES, of which 
- processed fruit and vegetabl. 
WINE 
TOBACCO 
OTHER SECTORS, of which 
- seeds 
- hops 
MILK PRODUCTS, of which 
- skimmed milk 
- butter and cream 
- co-responsiblIIty 
BEEF/VEAL 
SHEEPMEAT AND GOATMEAT 
FISHERIES 
ACAs 
MCAs (Intra-Communlty trade) 42,7 
(66,2) 
(- 799,3) 
106,9 
1.316,8 
2.672,2 
(2.181,0) 
642,9 
599,3 
654,4 
91,3 
972,3 
83,8 (423,5) 
(218,9) 
(27,7) 
(570,9) 
(0.6) 
(506,3) 
(62,2) 
(21,0) 
771,1 
(1.080,5) 
(354,9) 
(- 890,3) 
381,8 
1.452,8 
14,3 
41,5 
265,7 - 324,2 (1) 
(-) 
(- 799,3) 
817,8 
2.672,2 
(2.181,0) 
642,9 
(423,5) 
(218,9) 
599,3 
(27,7) 
(570.9) 
(0,6) 
(-) 19,7 
972,3 
83,8 
(62,2) 
(21,0) 
- 890,2 
(-) 
(-) 
(- 890,3) 
381,8 
1.452,8 366,9 
106,9 
499,0 (66,2) 
(-) 
634,7 
91,3 (-) 
(-) 
(-) 
(-) 
(-) 
(-) 
(506,3) 
(-) 
(-) 
1.661,3 
(1.080,5) 
(354,9) 
(-) 
14,3 
41,5 
265,7 
TOTAL 10.109,8 6.428,2 3.681,6 
(1) Production aid for durum wheat - + ECU 365,0 million. 
ANNEX 11 
QUANTITY AND VALUE OF PRODUCTS IN PUBLIC STORAGE 
PRODUCT 
Coiion wheat 
Coiion wheat not suitable 
for bread-iaklng 
Barley 
Rye 
Durui wheat 
Maize 
Sorghui 
Sugar 
Olive oil 
Rape 
Sunflower 
Alcohol 
Tobacco - leaf 
Tobacco - processed 
Tobacco - baled 
Skilled illk powder 
Butter 
Beef (quarters) 
Boned beef 
PIgieat 
TOTAL Situation at 30.09.1987 (1) 
Quantity 
(tonnes) 
3.406.150 
3.417.301 
4.326.100 
1.055.059 
1.529.732 
22.297 
8.205 
0 
325.225 
0 
142 
1.091.601 hi 
3.369 
20.146 
5.231 
721.753 
1.058.353 
483.973 
207.125 Book 
value 
(2) 
(ECU illllon) 
750,1 
659,2 
856,3 
231.5 
434.3 
4.1 
1,6 
491,3 
0.1 
102.2 
2,2 
15,2 
6.3 
1.380,1 
3.523,6 
1.355,6 
760.9 
10.574,6 Situation at 30.09.1988 (1) 
Quantity 
(tonnes) 
2.381.683 
1.756.038 
3.572.186 
876.367 
2.336.107 
18.357 
10.885 
0 
408.197 
37.974 
147.108 
2.891.986 hi 
1.155 
5.660 
39.777 
14.116 
221.079 
558.605 
164.320 Book 
value 
(3) 
(ECU ill I ion) 
325,7 
219,2 
415,4 
109,2 
436,4 
1.5 
1,2 
656,6 
15,2 
70,7 
135.9 
1,0 
2,8 
67,8 
27.7 
584.0 
1.147.4 
445.1 
4.662,8 Foreseeable 
sales value 
(4) 
(ECU ill I ion) 
168.5 
89.3 
201,1 
33.8 
228,5 
0.8 
0.4 
656.6 
6,4 
26.1 
20,2 
0,2 
1.2 
8.4 
20.8 
298,1 
388.3 
286,0 
2.434,7 Situation at 30.09.1989 (1) 
Quantity 
(tonnes) 
2.386.290 
263.773 
3.210.852 
1.087.886 
1.231.022 
780.350 
2.680 
0 
190.998 
132 
7.924 
3.381.714 hi 
7.821 
3.355 
66.407 
4.811 
32.055 
127.386 
23.586 Book 
value 
(5) 
(ECU illllon) 
246,1 
25,4 
276,2 
95,0 
191,0 
34,0 
0,2 
323,9 
p.l. 
3,5 
36,5 
2.2 
1.3 
45,7 
10,3 
74,5 
193,8 
52,8 
1.612,4 Foreseeable 
sales value 
(4) 
(ECU illllon) 
169.4 
15,0 
183,0 
62,0 
113,2 
34,0 
0.2 
242,8 
P.l. 
1.7 
27,1 
2.2 
1.0 
19,0 
4,4 
35.1 
117,5 
43,1 
1.070,7 
(1) Article 6(1) of Regulation (EEC) No 3184/83, as aiended by Regulation (EEC) No 3188/87, provides that second-category expenditure to be clalied for a given 
year Is to be calculated on the basis of the operations carried out during the period froi October of one year to Septeiber of the next year. 
(2) The value expressed In ECU has been obtained by applying to the carryover value in national currency the budgetary rates valid for the conversion of 
expenditure In Septeiber 1987. 
(3) The value expressed In ECU has been obtained by applying to the carryover value in national currency the budgetary rates valid for the conversion of 
expenditure in Septeiber 1988. 
(4) These aiounts correspond to the book values less the potential costs resulting from losses foreseeable on disposal. 
(5) The value expressed In ECU has been obtained by applying to the carryover value In national currency the budgetary rates valid for the conversion of 
expenditure In September 1989. o 
ANNEX 12 
Overall cost of the Guarantee Section as a percentage of 
gross doiestlc product (GDP) 
Year 
a 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 EAGGF Guarantee 
expend I ture 
(ECU billion) 
Gross 
(1) 
b 
8,673 
10,441 
11,315 
10,980 
12,406 
15.812 
18.346 
19,744 
22,137 
22,968 (•) 
27,687 (*•) 
25,873 Conunlty gross domestic 
product at market prices 
(current rates and prices) 
(ECU billion) 
(Source : Cronos-secl) 
(2) 
c 
1.613,2 
1.815,4 
2 . 050, 1 
2 . 285, 3 
2 . 489, 4 
2.681,5 
2.887,3 
3 . 097 , 0 
3.535,7 
3.720,1 
4.021,6 (3) 
4.376,6 (3) EAGGF Guarantee expendi­
ture as X of Community 
gross domestic product 
Gross 
d - 100 b/c 
0,54 
0 , 58 
0, 55 
0,48 
0 , 50 
0. 59 
0 , 64 
0, 64 
0. 63 
0. 62 
0. 69 
0. 59 o 
I 
(1) 
(2) 
(3) 
<•> Including consequences of accounts clearances 
1978 to 1980 - EUR 9 
1981 to 1985 - EUR 10 
from 1986 - EUR 12 
Est I mate 
1987 f I nanc I a I yea r 
1988 f I nanc I a I year 
- 111 -
ANNEX 13 
REVENUE FROM THE CO-RESPONSIBILITY LEVY ON MILK AND ALLOCATION OF PROCEEDS AMONG VARIOUS SCHEMES 
(ECU million) 
MEASURE 
A. REVENUE FROM CO-RESPONS­
IBILITY (3) 
B. TOTAL EXPENDITURE 
a) School!ilk 
(R.1080/77) 
b) Butter for the manu­
facture of Ice-cream 
(R.232/75, R.262/79, 
R.1932/81, R.570/88) 
c) Butter for pastry 
manufacture 
(R.262/79, R.1932/81, 
R.442/84, R.570/88) 
d) Concentrated butter 
for direct consumption 
(R.349/73, R.649/78, 
R.3143/85) 
e) Promotion, advertising 
and market research 
In the Community 
(R.723/78) 
f) Market research out­
side the Community 
(R.1993/78, R.1024/78) 
g) Improvement of the 
quality of milk 
(R.1271/78, R.382/89) 
h) Disposal for pig and 
poultry feed (R.368/77, 
R.443/77, R.1844/77) 
I) Other butter destock-
Ing schemes 
J) Financing of priority 
schemes FROM 
16.09.1977 
TO 
31.12.1982 
1.513,1 
1.513,1 
176,5 
130,8 
26,2 
134,9 
38,8 
88.2 
917,7 1983 
527,4 
527,4 
59,8 
30,9 
5,4 
60,0 
10,6 
168.4 
192,3 1984 
699,7 
699,7 
88,3 
28,4 
125,7 
7,4 
51,6 
11.7 
237,5 
149,1 1985 
639,4 
639,4 
103,5 
36,0 
95,1 
4,6 
59,5 
9.3 
244.3 
87.1 1986 
551,6 
551,6 
112,5 
27,9 
135,8 
37,0 
45,2 
9,0 
53,5 
152.7 
-22,0 1987 
(1) 1988 
(2) 
447,6 | 487,3 
447,6 
99,3 
40,6 
122,3 
pm (4) 
40,7 
5.2 
102,1 
37.4 487,3 
112,7 
49,6 
117,2 
pm (4) 
35,1 
1.5 
2,3 
168,9 1989 
423,7 
423,7 
136,2 
32,0 
120,1 
57,7 
39,0 
5.3 
33,4 FROM 
16.09.1977 
TO 
15.10.1989 
5.289,8 
5,289,8 
888,8 
376,2 
716,2 
138,3 
466,0 
91.4 
791,9 
290.5 
1.530,5 
(1) Revenue from co-responsibility levy and expenditure against the 1987 budget (approximately 10 months). 
(2) Revenue from co-responsiblIIty levy and expenditure against the 1988 budget (approximately 11 1/2 months). 
(3) Excluding appropriations carried over from one year to the next. 
(4) Expenditure In the Member States on the disposal of concentrated butter was ECU 67,4 mi 11 ion In 1987 and 
ECU 162,8 million In 1988. That expenditure is being reimbursed to the Member States in four instalments 
from 1989 pursuant to Regulation (EEC) No 801/87. 
AHHEX 14 
EQUALIZATION OF STORAGE COSTS FOR SUGAR 
COMMUNITY SUGAR (PBUD/EN/0050) 
Situation at 31.01.1990 
(a) X of annual levies. 
(b) % of cumulative annual levies. Sugar 
year 
1968/69 
1969/70 
1970/71 
1971/72 
1972/73 
1973/74 
1974/75 
1975/76 
1976/77 
1977/78 
1978/79 
1979/80 
1980/81 
1981/82 
1982/83 
1983/84 
1984/85 
1985/86 
1986/87 
1987/88 
1988/89 Total levies 
(ECU A) 
64.844.437,00 
65.226.052,11 
69.029.052,44 
97.151.231,54 
91.067.000,23 
101.755.638,48 
104.267.684,38 
109.434.959,31 
201.167.705,37 
233.088.196,54 
248.919.064,38 
239.233.167,49 
326.426.745,59 
407.407.510,45 
478.721.551,25 
448.951.270,25 
482.847.708,67 
476.418.365,75 
499.310.626,40 
515.046.181,40 
445.284.798,42 Total 
reimbursements 
(ECU A) 
63.916.054,19 
69.848.500,70 
65.111.106,99 
92.680.188,23 
90.747.372,33 
92.645.695,20 
97.929.484,41 
160.690.227,31 
184.974.731,36 
230.545.532,13 
239.524.266,97 
251.107.813,79 
316.364.823,82 
432.967.580,24 
540.741.567,87 
465.605.840,64 
407.845.639,18 
435.685.542,82 
486.328.930,19 
414.901.554,17 
385.915.945,99 Annual balance 
abso lute 
(ECU A) 
+ 928.382,81 
4.622.448,59 
• 3.917.945,45 
+ 4.471.043,31 
+ 319.627,90 
+ 9.109.943,28 
+ 6.338.199.97 
- 51.255.268,00 
+ 16.192.974,01 
• 2.542.664,41 
+ 9.394.797,41 
- 11.874.646,30 
+ 10.061.921,77 
- 25.560.069,79 
- 62.020.016,62 
- 16.654.570,39 
+ 75.002.069,49 
+ 40.732.822,93 
+ 12.981.696,21 
+ 100.144.627,23 
+ 59.368.852,43 X 
(a) 
+ 1.43 
- 7,09 
+ 5,68 
• 4,60 
+ 0,35 
+ 8,95 
• 6,08 
- 46,84 
+ 8,05 
+ 1,09 
• 3,77 
- 4,96 
• 3,08 
- 6,27 
- 12,96 
- 3,71 
+ 15,53 
+ 8,55 
+ 2,60 
+ 19,44 
+ 13,33 CumulatIve ba lance 
absolute 
(ECU A) 
+ 928.382,81 
3.694.065,78 
+ 223.879,67 
+ 4.694.922.98 
• 5.014.550.88 
+ 14.124.494.16 
+ 20.462.694.13 
- 30.792.573,87 
- 14.599.599,86 
- 12.056.935.45 
2.662.138,04 
- 14.536.784,34 
4.474.862,57 
- 30.034.932,36 
- 92.054.948,98 
- 108.709.519,37 
- 33.707.449,88 
+ 7.025.373,05 
+ 20.007.069,26 
+ 120.151.696,49 
+ 179.520.548,92 X 
(b) 
• 1 ,43 
- 2,84 
+ 0,11 
+ 1 .58 
+ 1,29 
+ 2,89 
+ 3,45 
- 4,38 
- 1,62 
- 1,06 
- 0,19 
- 0,89 
- 0,23 
- 1.27 
- 3,24 
- 3,31 
- 0,89 
+ 0,17 
+ 0,42 
• 2,28 
+ 3,15 Durat Ion 
of 
storage 
(months) 
5,63 
6,13 
5,38 
5,94 
5,81 
4,80 
4,64 
6,24 
5,99 
5,84 
6,35 
6,17 
6,09 
6,50 
7,62 
7,73 
6,77 
7,33 
7,35 
6,58 
6,19 
-113-
ANNEX 15 
REVENUE FROM LEVIES IN THE SUGAR SECTOR 
(Situation at 31.01.1990) 
Financial year 1989 
BUDG. 
HEAD, TITLE AMOUNT 
IN ECU (B) 
110 I Sugar production levies (1) 
112 Isoglucose production levies (1) 
118 Additional levy (2) 
115 Elimination levy (3) 
111 Sugar storage levies 
113 Amounts charged on production of sugar 
and isoglucose C not exported 642.191.925 
5.437.206 
175.456.094 
89.285.854 
469.183.724 
46.924 
TOTAL REVENUE BUDGET CHAPTER 11 1.381.601.727 
(1) Basic production levies and B levies in respect of market­
ing year 1988/89, pursuant to Article 28 of Council Regu­
lation (EEC) No 1785/81. 
(2) Additional levy to cover fully that part of the overall 
loss in respect of marketing year 1988/89 not covered by 
the receipts from the basic production levies and B levies, 
pursuant to Article 28a of Council Regulation (EEC) 
No 1785/81. 
(3) Designed to eliminate, during the period covering marketing 
years 1986/87 to 1990/91, the deficit of ECU (A) 400 million 
recorded following application of the quota arrangements 
for marketing years 1981/82 to 1985/86, pursuant to 
Article 32a of Council Regulation (EEC) No 1785/81. 
- 114 -
ANNEX 16 
SELF-FINANCING SYSTEM IN THE SUGAR SECTOR (1)(2)(3) 
A. EXPENDITURE CHARGED TO COMMUNITY 
SUGAR AND ISOGLUCOSE PRODUCERS 
1. Production of A and B sugar 
and of A and B Isoglucose 
2. Quantity of sugar and Isoglucose 
disposed of for consumption 
within the Community 
3. Surplus charged to Community 
producers (1-2) 
4. Average loss per tonne 
5. Overall loss in marketing year 
charged to Community producers 
(3x4) 
Cumulative adjustment due to 
rectification of 1 to 4 
6. Total overalI loss 
B. LEVIES IMPOSED 
7. Basic production levies 
8. B levies 
9. Special elimination levies (market­
ing years 1986/87 and 1987/88) 
10. Additional levy (marketing 
years 1988/89 to 1990/91) 
11. Total levies MARKETING YEAR 
1986/87 
tonnes 
12.790.202,8 
10.949.629,6 
1.840.573,2 
ECU (A)/t 
446.38 
ECU (A) 
821.595.065 
- 10.546.099 
811.048.966 
ECU (A) 
136.921.227 
447.100.841 
227.026.898 
811.048.966 1987/88 
tonnes 
12.667.698.8 
11.139.051,7 
1.528.647,1 
ECU (A)/t 
447,48 
ECU (A) 
684.039.004 
- 3.728.570 
680.310.434 
ECU (A) 
135.572.995 
443.094.495 
101.642.944 
680.310.434 1988/89 
tonnes 
12.774.015,1 
10.874.653,7 
1.899.361,4 
ECU (A)/t 
385,79 
ECU (A) 
732.754.635 
+ 14.274.669 
747.029.304 
ECU (A) 
136.688.216 
451.743.614 
158.597.474 
747.029.304 AGGREGATE 
1986/87 to 
1988/89 
tonnes 
38.231.916.7 
32.963.335,0 
5.268.581,7 
ECU (A)/t 
ECU (A) 
2.238.388.704 
2.238.388.704 
ECU (A) 
409.182.438 
1.341.938.950 
328.669.842 
158.597.474 
2.238.388.704 
(1) Application of Articles 28 and 28a of Council Regulation (EEC) No 1785/81. 
(2) All the quantities are expressed as white sugar (sugar) or dry matter (Isoglucose). 
(3) Situation at the fixing in October 1989 of the amounts of the levies for the marketing year 1988/89 
(Commission Regulation (EEC) No 3098/89). 
ANNEX 17a 
ADVANCE PAYMENTS TO MEMBER STATES FOR 1989 
DATE OF DECISION 
21.12.88 
31.01.89 (1) 
28.02.89 
29.03.89 
27.04.89 
30.05.89 
29.06.89 
28.07.89 
30.08.89 
27.09.89 
26.10.89 
28.11.89 
21.12.89 
D Iff.Chang. 
TOTAL ADVANCE 
PAYMENTS 
TOTAL IN ECU (2) BELGIUM 
BFR 
3.653.000.000,00 
1.117.000.000,00 
2.572.000.000,00 
2.054.000.000,00 
1.984.000.000,00 
3.058.000.000,00 
1.922.000.000,00 
3.269.000.000,00 
1.064.000.000,00 
1.503.000.000,00 
2.144.000.000,00 
1.159.000.000,00 
389.380,00 
25.499.389.380,00 
585.838.071,20 DENMARK 
DKR 
1.019.600.000.00 
672.000.000,00 
1.102.600.000,00 
813.000.000,00 
869.400.000,00 
709.300.000.00 
552.900.000.00 
525.300.000.00 
509.000.000.00 
549.100.000.00 
574.000.000,00 
271.800.000,00 
81.643,90 
8.168.081.643,90 
1.015.081.321,91 GERMANY 
DM 
2.118.900.000,00 
680.400.000.00 
688.600.000.00 
525.200.000.00 
592.300.000,00 
1.011.500.000.00 
566.600.000.00 
578.100.000,00 
602.000.000.00 
453.000.000.00 
525.000.000.00 
364.700.000,00 
489.567,49 
8.706.789.567,49 
4.191.659.208,86 GREECE 
DRA 
39.230.000.000.00 
15.930.000.000.00 
38.640.000.000.00 
25.480.000.000.00 
21.790.000.000,00 
10.910.000.000,00 
23.660.000.000,00 
29.940.000.000,00 
18.251.000.000,00 
17.410.000.000,00 
26.580.000.000,00 
19.020.000.000,00 
1.465.120,00 
286.842.465.120,00 
1.647.027.230,59 SPAIN 
PTA 
27.240.000.000,00 
33.160.000.000,00 
17.950.000.000,00 
19.590.000.000,00 
21.510.000.000,00 
19.090.000.000,00 
20.470.000.000,00 
20.580.000.000,00 
22.528.000.000,00 
19.800.000.000,00 
17.290.000.000,00 
11.240.000.000,00 
9.543.712.00 
250.457.543.712.00 
1.889.759.174,43 FRANCE 
FF 
5.129.000.000,00 
2.039.000.000,00 
3.200.000.000,00 
2.133.000.000,00 
3.635.000.000,00 
3.866.000.000,00 
2.684.000.000.00 
2.995.000.000.00 
2.301.000.000.00 
2.162.000.000,00 
2.094.000.000.00 
1.242.000.000,00 
1.113.796,54 
33.481.113.796,54 
4.739.060.679,96 
(1) Including the corrections to the 1986 clearance. 
(2) Allowing for exchange rate difference. 
l 
ANNEX 17b 
ADVANCE PAYMENTS TO MEMBER STATES FOR 1989 
DATE OF DECISION 
21.12.88 
31.01.89(1) 
28.02.89 
29.03.89 
27.04.89 
30.05.89 
29.06.89 
28.07.89 
30.08.89 
27.09.89 
26.10.89 
28.11.89 
21.12.89 
Diff. Chang. 
TOTAL ADVANCE 
PAYMENTS 
TOTAL IN ECU (2) IRELAND 
IRL 
258.300.000.00 
113.200.000,00 
106.150.000.00 
64.350.000.00 
43.850.000.00 
62.500.000,00 
34.050.000,00 
67.100.000,00 
53.000.000,00 
70.800.000,00 
69.560.000,00 
21.500.000,00 
54.666,89 
963.404.665.89 
1.241.321.335.35 ITALY 
LIT 
802.000.000.000,00 
840.100.000.000,00 
400.400.000.000,00 
649.500.000.000,00 
857.000.000.000.00 
588.900.000.000,00 
501.700.000.000,00 
507.600.000.000,00 
425.192.000.000,00 
237.100.000.000,00 
615.900.000.000,00 
521.200.000.000,00 
45.596.082,00 
6.946.637.598.082,00 
4.552.601.775,48 LUXEMBOURG 
LFR 
520.000,00 
6.110.000,00 
- 1.560.000,00 
- 780.000,00 
34.030.000.00 
- 1.550.000,00 
29.590.000,00 
10.000.000,00 
- 16.000.000,00 
- 1.490.000,00 
17.330.000,00 
4.200.000,00 
6.656.00 
80.406.656.00 
1.845.497,77 NETHERLANDS 
HFL 
2.029.700.000,00 
743.500.000,00 
683.300.000,00 
629.300.000,00 
798.900.000,00 
871.000.000,00 
708.100.000,00 
527.700.000,00 
386.000.000,00 
637.100.000,00 
416.500.000,00 
355.600.000,00 
82.694,16 
8.786.782.694,16 
3.749.889.785,25 PORTUGAL 
ESC 
4.209.093.000,00 
4.532.000.000,00 
1.769.000.000,00 
1.370.000.000,00 
1.381.003.000,00 
1.416.000.000,00 
1.109.000.000,00 
1.787.000.000,00 
1.385.000.000.00 
7.466.003.000.00 
2.109.000.000,00 
1.448.000.000.00 
671.709,00 
29.981.671.709.00 
174.366.401,51 UNITED KINGDOM 
UKL 
292.150.000,00 
98.550.000,00 
124.050.000.00 
78.000.000,00 
124.900.000,00 
129.550.000,00 
106.900.000,00 
77.400.000,00 
34.000.000,00 
59.850.000.00 
73.900.000,00 
55.850.000,00 
23.466.80 
1.256.123.466.80 
1.916.964.562,06 TOTAL EEC 
ECU 
4.581.063.883,53 
2.247.309.677,40 
2.224.029.481,25 
1.898.320.426.50 
2.400.201.767,96 
2.443.261.304,01 
1.903.396.637,88 
1.944.135.266,55 
1.551.725.781,91 
1.530.786.770,24 
1.753.625.509,71 
1.227.045.012.83 
670.807,57 
- 147.282.98 
25.706.414.044,36 
(1) Including the corrections to the 1986 clearance. 
(2) Allowing for exchange rate difference. 
o 
i 
ANNEX 18 
EXCHANGE RATES - 1989 
1) Conversion of monthly expenditure Into ecus - Budget rates 
Expenditure 
for 
NOVEMBER 88 
DECEMBER 88 
JANUARY 89 
FEBRUARY 89 
MARCH 89 
APRIL 89 
MAY 89 
JUNE 89 
JULY 89 
AUGUST 89 
SEPTEMBER 89 
OCTOBER 89 Rate on: O.J. 
20.09.88 - C 247/88 
20.10.88 - C 272/88 
18.11.88 - C 295/88 
20.12.88 - C 328/88 
20.01.89 -C 17/89 
20.02.89 - C 42/89 
20.03.89 - C 73/89 
20.04.89 - C 100/89 
19.05.89 - C 125/89 
20.06.89 - C 153/89 
20.07.89 - C 184/89 
18.08.89 - C 213/89 B 
43.4650 
43,4893 
43,4284 
43,5789 
43,6354 
43,6879 
43,6163 
43,5423 
43,5807 
43,3732 
43,4303 
43,4037 DK 
7,95166 
7,99934 
7,99938 
8,03517 
8,08513 
8,10910 
8,12184 
8,09880 
8,10898 
8,05889 
8,05471 
8,06110 D 
2,07309 
2,07403 
2,07199 
2,07814 
2,08452 
2,08379 
2,08286 
2,08011 
2,08193 
2,07230 
2,07343 
2,07515 EL 
168,133 
170,030 
172,115 
172,759 
173.021 
174,390 
174,932 
177,433 
176,862 
178,383 
179,195 
178,511 ES 
138,280 
136,491 
136,543 
134,392 
130,247 
129,820 
129,638 
129,107 
130,034 
131,721 
130,280 
129,532 F 
7,04884 
7,08602 
7,08234 
7,10173 
7,10589 
7,09631 
7,05225 
7.03986 
7.04961 
7,02721 
7,03480 
7,00740 IRL 
0,771921 
0,775993 
0,776275 
0.777452 
0,779229 
0,781922 
0,779150 
0.779805 
0,778470 
0,776880 
0,775238 
0,777387 1 
1544,94 
1544,81 
1541,32 
1530,66 
1528,73 
1528.51 
1528.02 
1525.32 
1517,23 
1502,30 
1499,41 
1490.41 LUX 
43.4650 
43.4893 
43.4284 
43.5789 
43.6354 
43.6879 
43.6163 
43.5423 
43.5807 
43,3732 
43.4303 
43.4037 NL 
2.33922 
2.33859 
2.33590 
2.34606 
2,35312 
2.35214 
2.34986 
2.34632 
2.34680 
2.33406 
2.33984 
2.33950 P 
170.738 
171,212 
172,247 
171,831 
170,832 
171,104 
171,566 
172,133 
171,977 
172,752 
173,425 
173,225 UK 
0,660001 
0,652908 
0,656851 
0,647913 
0,639898 
0,640604 
0,648004 
0,653959 
0,653155 
0,674575 
0,671537 
0,676954 
2) Average rates 
Average 
rate -
In ECU Total expend. In N.C. 
Total expend. In ECU 43,5263 8,04673 2,07717 174,158 132,534 7,06493 0.776112 1525,86 43.5691 2,34321 171,947 0,654745 
ANNEX 19 
AMOUNTS WITHHELD FROM PRODUCTION AND CONSUMPTION AIO IN THE OLIVE OIL, 
FIBRE FLAX AND GRAPE JUICE SECTORS AND THEIR UTILIZATION 
(ECU) 
YEAR 
Until 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
TOTAL SCHEMES RELATED TO OLIVE 
OIL CONSUMPTION 
(Art.11(6) - R.136/66/EEC) 
INFORMATION AND PROMOTION 
SCHEMES 
WITHHELD 
314.321,72 
3.002.586,67 
2.450.464,92 
6.186.243,27 
164.078,70 
- 61.379,87 
(1) 
7.385.033,94 
16.814.428,88 
1.904.138,18 
27.526.160,69 
24.056.213,57 
89.742.290,67 UTILIZATION 
186.053,42 
228.892,06 
2.637.599,46 
178.195,52 
3.908.825,34 
4.469.155,87 
1.415.568,83 
(2) 
1.529.034,59 
(2) 
10.499.219,91 
9.781.271,97 
34.833.816.97 SCHEMES RELATED TO OLIVE 
OIL PRODUCTION 
(Art.5(2) & (4) - R.136/66/EEC) 
ESTABLISHMENT OF a IVE 
CULTIVATION REGISTER 
WITHHELD 
11.596.900,13 
1.913.256,21 
2.478.668,31 
2.790.594,51 
7.269.762,53 
15.922.258,52 
9.841.270,28 
5.703.249,46 
14.574.601,04 
10.967.980,65 
27.264.704,88 
110.323.246,52 UTILIZATION 
154.567,06 
10.217.221,94 
2.533.410,95 
10.560.376,47 
16.652.197,17 
13.510.537,03 
22.024.203,03 
16.887.665,33 
22.847.681,56 
23.026.555,69 
138.414.416,23 SCHEMES RELATED TO OLIVE 
OIL PRODUCTION 
(Art.5(4) -R.136/66/EEC) 
IMPROVEMENT OF THE 
QUALITY OF OLIVE OIL 
WITHHELD 
3.508.292,70 
8.468.414,24 
962.664,57 
13.276.843,19 
26.216.206.74 UTILIZATION 
4.135.328,86 
4.135.328,86 SCHEMES RELATED TO OLIVE 
OIL PRODUCTION 
(Art.20d(1) - R.136/66/EEC) 
CONTRIBUTIONS TO COSTS OF 
RECOGNIZED ORGANIZATIONS 
AND ASSOCIATIONS 
WITHHELD 
5.840.300,57 
4.240.522,52 
11.758.761,54 
5.753.277,19 
14.975.002,43 
42.567.864,25 UTILIZATION 
477.095,54 
10.022.033,99 
9.709.384,11 
6.609.141,86 
5.033.263,47 ; 
31.850.918,97 SPECIFIC SCHEMES CONCER­
NING FIBRE FLAX 
(Art.2- R.(EEC) 1308/70) 
INFORMATION AND PROMOTION 
SCHEMES 
WITHHELD 
300.380,92 
637.351,43 
949.915,85 
1.218.505,93 
1.146.908,53 
1.698.561,64 
1.787.948,82 
2.015.516,92 
2.367.324,23 
2.646.533,36 
14.768.947,63 UTILIZATION 
537.151,00 
996.896,74 
244.931,36 
1.154.500,00 
1.073.341,64 
3.274.836,39 
500.500,00 
1.316.663,61 
2.829.373,00 
11.928.193,74 SCHEMES RELATED TO THE CONSUkPTION OF 
GRAPE JUICE 
Art.4(2) -
R.2275/85/EEC 
WITHHELD 
2.720.876,01 
3.156.544,66 
5.965.430,20 
5.601.457,10 
17.444.307,97 Art.4(2) -
R.2275/85/EEC 
PROMOTION 
SCHEMES 
UTILIZATION 
3.901.558,94 
2.314.470,42 
5.293.256,82 
11.509.286,18 Art.2a(1) 
and 
Art.3(4) 
R.3461/ 
85/EEC 
FINANC. OF 
RESEARCH 
UTILIZ. 
82.041,14 
8.092,65 
90.133,79 Art. 4 
(4) 
R.3461, 
85/EEC 
OVER­
HEADS 
UTILIZ 
-
-
(1) The aiount Is negative because of securities forfeited on quantities Imported from non-member countries 
(2) Commitments 
00 
i 
ANNEX 20 
GUARANTEE SECTION 1989 (3) 
IRREGULARITIES REPORTED AND RECOVERY SITUATION 
(ECU million) 
SECTOR (2) 
CEREALS AND RICE 
SUGAR AND ISOGLUCOSE 
OILS AND FATS 
PROTEIN CROPS 
FRUITS AND VEGETABLES 
VINE PRODUCTS 
TOBACCO 
OTHER AGRIC. SECTORS 
MILK PRODUCTS 
BEEF AND VEAL 
SHEEPMEAT/GOATMEAT 
PIGMEAT 
EGGS AND POULTRY 
NON-ANNEX II PRODUCTS 
MONET. COMP. AMOUNTS 
FISHERIES 
OTHER SECTORS 
TOTAL 
AMOUNTS RECOVERED 
AMOUNTS LOST 
AMOUNTS BEING 
RECOVERED BELGIUM 
(3) 0,001 
(3) 0,022 
(6) 0,023 
(5) 0,023 
(1) -GERMANY 
(1) 0,506 
(3) 1,583 
(1) 0,003 
(53) 1,526 
(12) 14,374 
(1) 0,072 
(71) 18,064 
(14) 1,580 
(57) 16,484 DENMARK 
(1) 0,737 
(4) 0,759 
(14) 11,572 
(5) 0,010 
(D -
(2) 0,018 
(27) 13,096 
(9) 2,332 
(1) 0,002 
(17) 10,762 FRANCE 
(5) 0,591 
(22) 0,195 
(1) 0,021 
(4) 0,518 
(6) 0,009 
(33) 0,533 
(23) 3,303 
(6) 0,975 
(4) 0,014 
(2) 0,018 
(6) 0,019 
(8) 0,031 
(1) 0,020 
(121) 6,247 
(73) 2,922 
(48) 3,325 GREECE 
(D -
(1) 0,013 
(1) 0,030 
(3) 0,043 
-
(3) 0,043 SPAIN 
(1) 0,040 
(D 0,181 
(1) 0,030 
(6) 0,070 
(4) 0,020 
(13) 0,341 
(2) 0,030 
(11) 0,311 IRELAND 
(1) 0,140 
(8) 0,029 
(2) 0,043 
(11) 0,212 
(2) 0,140 
(9) 0,072 ITALY 
(8) 0,057 
(125) 49,245 
(24) 35,505 
(4) 0,447 
(4) 5,837 
(64) 6,954 
(11) 0,036 
(2) 1,230 
(242) 99,311 
(28) 1,582 
(214) 97,729 LUXEMBOURG 
(1) -
(D -
(D -NETHERL. 
(25) 0,231 
(2) 0,003 
(D 0,167 
(9) 0,063 
(13) 0,810 
(10) 10,991 
(3) 0,008 
(3) 0,281 
(7) 0,030 
(73) 12,584 
(46) 1,433 
(27) 11,151 U.K. 
(2) 
(115) 0,318 
(37) 1,164 
(1) 0,005 
(1) 0,157 
(1) 0,014 
(3) 2,738 
(1) 0,004 
(161) 4,400 
(108) 0,668 
(6) 0,473 TOTAL EEC 
(43) 1,059 
(25) 0,935 
(129) 50,120 
(20) 2,195 
(31) 35,527 
(39) 0,603 
(4) 0,447 
(1) 0,003 
(104) 12,277 
(231) 45,243 
(52) 1,214 
(13) 1,271 
(4) 0,438 
(16) 0,135 
(15) 2,830 
(1) 0,020 
(1) 0,004 
(729) 154,321 
(287) 10,710 
(7) 0,475 
(47) 3,259 (435) 143,136 
N.B. : (1) Figures In brackets are the number of cases reported. 
(2) No cases reported by Portugal. 
(3) All figures from C0MA35 database; amounts updated using ECU rate of exchange valid on 1.12.1989. 
i 
ANNEX 21 
GUARANTEE SECTION 
IRREGULARITIES REPORTED AND RECOVERY SITUATION (PBUD/EN/0060) 
(ECU million) 
MEMBER 
STATES 
B 
D 
OK 
EL 
ES 
F 
IRL 
I 
L 
NL 
P 
UK 
EEC 1971 -
1979 
(12) 1,413 
(1) 0,240 
(90) 6,919 
(64) 4,035 
(18) 0,128 
(16) 0,036 
~ 
-
(12) 1.168 
(12) 0,071 
(7) 0,115 
(7) 0,115 
(32) 2,500 
(9) 0,010 
-
(36) 1,204 
(35) 0,033 
"" 
(183) 3,183 
(71) 0,906 
(399) 16,630 
(215) 5,446 
(26) 1,037 1980 -
1984 
(10) 5,315 
(7) 0,712 
(494) 42,104 
(355) 11,915 
(58) 0,311 
(56) 0,299 
~ 
*™ 
(55) 0,779 
(51) 0,686 
(13) 0,536 
(13) 0,536 
(76) 33,481 
(25) 2,068 
-
(58) 2,394 
(54) 1,079 
-
(83) 0,994 
(63) 0,760 
(847) 85,914 
(624) 18,055 
(24) 0,096 1985 
(12) 1,529 
(0) -
(116) 4,735 
(87) 1,050 
(17) 0,409 
(17) 0,409 
~ 
-
(28) 0,544 
(27) 0,544 
(D -(D -
(40) 14,224 
(5) 0,017 
-
(3) 0 
(3) 0 
-
(15) 0,806 
(9) 0,474 
(232) 22,247 
(149) 2,494 
(12) 0,051 1986 
(26) 5,972 
(1) -
(124) 1,053 
(94) 0,659 
(19) 0,311 
(18) 0,307 
-
-
(57) 1,463 
(53) 1,378 
(3) 1,020 
(1) -
(50) 19.468 
(4) 1,501 
~ 
(13) 0.054 
(11) 0,049 
-
(21) 0,494 
(13) 0,481 
(313) 29,835 
(195) 4,375 
(4) 1,020 1987 
(13) 2,663 
(2) 0,231 
(64) 0,442 
(42) 0,223 
(12) 0,137 
(12) 0,137 
(D -
-
(75) 3,823 
(65) 1,308 
(8) 1,907 
(0) 0,497 
(133) 80,831 
(25) 0,422 
-
(90) 0,339 
(84) 0,262 
«. 
(93) 1,207 
(66) 0,166 
(489) 91,349 
(296) 3,246 
(5) 0,308 1988 
(4) 0,100 
(1) 
(43) 41.180 
(27) 0.416 
-(16) 0,807 
(8) 0,309 
— 
(6) 0,046 
(4) 0,003 
(65) 3,509 
(40) 0,462 
(14) 2,718 
(7) 0,035 
(81) 103,507 
(19) 1,891 
-
(41) 0,315 
(38) 0,052 
•" 
(97) 2,762 
(57) 0,275 
(367) 154,944 
(201) 3,443 
(1) 0,494 1989 
(6) 0,023 
(5) 0,023 
(71) 18,064 
(14) 1,580 
(27) 13,097 
(9) 2,332 
(3) 0,043 
(13) 0,341 
(2) 0,030 
(121) 6,247 
(73) 2,922 
(11) 0,211 
(2) 0,140 
(242) 99,311 
(28) 1,582 
(1) 
(73) 12,584 
(48) 1,433 
"" 
(161) 4,400 
(108) 0,669 
(729) 154,321 
(287) 10,711 
(7) 0,475 TOTAL PER 
MEMBER STATE 
(83) 17,015 
(17) 1,206 
(1002) 114,497 
(683) 19,878 
(167) 15,200 
(136) 3,829 
(4) 0,043 
(19) 0,387 
(6) 0,033 
(422) 17,533 
(321) 7,371 
(57) 6,507 
(31) 1,323 
(654) 353,322 
(115) 7,491 
(1) 
(314) 16,890 
(271) 2,908 
-
(653) 13,846 
(387) 3.731 
(3376) 555,240 
(1967) 47,770 
(79) 3,481 
Remarks : (1) The first line shows the number of cases reported and the amount Involved and the second the recoveries already made 
(number of cases and aiount). The third line of the EEC total shows the number of cases and the amounts declared 
Irrecoverable of which the Commission has accepted the financial consequences. 
(2) Where cases from before 1980 are concerned, only files still open when C0MA35 was set up are Included In the table. 
(3) Amounts converted at the ECU rate valid on 1.12.1989. o 
ANNEX 22 
Breakdown by sum Involved and by Member State of communications made pursuant to 
Article 3 of Regulation (EEC) No 283/72 
1. Breakdown of communications (cases and amounts) (ECU '000) (1) 
GERMANY FRANCE ITALY BELGIUM LUXEM. NETHER­
LANDS DENMARK IRELAND UNITED 
KINGDOM GREECE SPAIN PORTUG. TOTAL EEC 
Insignlfic. 
Recov. made 
- 5000. ECU 
5-10 
10 - 50 
50 - 100 
100 - 500 
500 - 1000 
+ 1 M. ECU 
TOTAL 0 0 
14 191 
29 
8 
3 
1 63 
50 
88 
64 
7 1770 
3 2378 
6 13460 
71 18064 5 0 
70 2356 
18 48 
9 64 
10 192 
2 131 
4 901 
2 1448 
1 1107 
121 6247 12 0 
26 1457 
87 167 
6 41 
23 629 
6 447 
43 11800 
14 9798 
25 74972 
242 99311 4 0 
2 23 
0 0 
6 23 13 0 
34 1377 
19 48 
4 28 
8 131 
60 
0 
0 0 
1375 
23 
7 
33 
0 
672 
0 6 0 
1 140 
0 0 5 0 
107 354 
2 10992 
81 12636 3 10991 
28 13101 18 
72 
0 
0 
0 
0 40 
2 
4 
1 
3 79 
14 
85 
84 
481 1 0 
0 0 
0 0 
0 0 
2 43 
12 230 1 579 
1 2736 
164 4412 3 43 2 0 
1 30 
5 18 
2 18 
1 41 
1 53 
1 181 
0 0 
0 0 
13 341 0 0 
0 0 
0 0 
0 0 
0 0 
0 0 
0 0 
0 0 
0 0 
0 0 51 0 
264 7303 
207 
34 446 
240 
56 1314 
12 839 
60 15805 
20 14203 
38 114258 
742 154408 
(1) By Member State (and total EEC) : Column 1 = number of cases 
Column 2 = amount 
i 
—X 
I 
2. Breakdown of communications (percentages) (2) 
GERMANY FRANCE ITALY BELGIUM LUXEMBOURG NETHER­
LANDS DENMARK IRELAND UNITED 
KINGDOM GREECE SPAIN PORTUGAL TOTAL EEC 
Inslgnlfic; 
Recov. made 
- 5000. ECU 
5-10 
10 - 50 
50 - 100 
100 - 500 
500 - 1000 
• 1 M. ECU 
TOTAL 0.0 0.0 
19.7 1.1 
40.8 0.3 
11.3 0.3 
4.2 0.5 
1.4 0.4 
9.9 9.8 
4.2 13.2 
8.5 74.4 
100.0 100.0 4.1 0.0 
57.8 37.7 
14.9 0.8 
7.4 1.0 
8.3 3.1 
1.7 2.1 
3.3 14.4 
1.7 23.2 
0.8 17.7 
100.0 100.0 5.0 0.0 
10.6 1.5 
36.0 0.2 
2.5 0.0 
9.5 0.6 
2.5 0.4 
17.8 11.9 
5.8 9.9 
10.3 75.5 
100.0 100.0 66.7 0.0 
33.3 100.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
100.0 100.0 0.0 0.0 
100.0 0.0 
0.0 100.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
100.0 100.0 16.0 0.0 
42.0 10.9 
23.5 0.4 
4.9 0.2 
9.9 1.0 
1.2 0.5 
0.0 0.0 
0.0 0.0 
2.5 87.0 
100.0 100 10.7 0.0 
32.2 10.5 
28.6 0.2 
3.6 0.1 
7.1 0.3 
0.0 0.0 
7.1 5.1 
0.0 0.0 
10.7 83.8 
100.0 100.0 50.0 0.0 
8.3 60.9 
0.0. 0.0 
16.7 7.7 
25.0 31.4 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
100.0 100.0 3.0 0.0 
65.2 8.0 
24.4 1.8 
1.2 0.3 
2.4 1.9 
0.6 1.9 
1.8 10.9 
0.7 13.1 
0.7 62.1 
100.0 100 33.3 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
66.7 100.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
100.0 100.0 15.4 0.0 
7.7 8.8 
38.4 5.4 
15.4 5.4 
7.7 11.9 
7.7 15.5 
7.7 53.0 
0.0 0.0 
0.0 0.0 
100.0 100.0 0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
0.0 0.0 
100.0 100.0 6.9 0.0 
35.6 4.7 
27.9 0.3 
4.6 0.2 
7.5 0.9 
1.6 0.5 
8.1 10.2 
2.7 9.2 
5.1 74.0 
100.0 100.( 
(2) By Member State (and total EEC) : Column 1 - percentage of total cases notified 
Column 2 • percentage of total amount notified by size band 
ANNEX 23 
FINANCIAL RESULTS OF WORK ON CLEARING 1987 ACCOUNTS (1) 
(Including milk non-marketing and dairy herd conversion premiums) 
(ECU million) (2) 
DK DE EL ES IR IT NL PO UK EC TOTAL 
a) 1987 expenditure claimed 
b) Expenditure excluded 
from 1987 clearance 
c) Expenditure claimed In 
previous years and ex­
cluded from clearance 
for those years 
d) Expenditure coming under 
clearance (a-b+c) 
e) Expenditure disallowed 
f) Expenditure disallowed 
In respect of a previous 
year but accepted In 
respect of 1987 clear­
ance 
g) Total expenditure en­
dorsed (d-e+f) 
h) Expenditure charged, 
subject of present 
clearance (to be com­
pared with d)) 
I) Financial result of 
clearance (h-g) 811,4 
811,4 
0,3 
811,3 
- 0,9 1.051,9 3.993,1 1.194,0 
1.051,9 
- 4,9 3.993,1 
- 194,5 1.194,0 
- 5,4 
0,5 
812,2 1.047,0 8,4 
3.790,2 8,0 
1.180,6 
1.055,0 
8.0 3.988,6 
198,4 1.194,0 
13,4 672,6 
672,6 
- 24,2 
648,4 
673,8 
25,4 5.532,0 
5.532,0 
- 44,6 
1,5 
5.485,9 
5.525,2 
39,3 956,3 
956,3 
• 1.4 
954,9 
955,4 
0,5 3.792,8 
3.792,8 
- 96,4 
8,3 
3.704,7 
3.781,7 
77,0 1.5 
1.5 
1,5 
1.5 2.740,7 
2.740,7 
- 5,5 
2.735,2 
2.740,7 
5,5 129,7 
129,7 
- 0,2 
129,5 
129,8 
0,3 2.007,3 22.883,3 
2.007,3 
- 7,9 
0,1 
1.999,5 
2.007,1 
7,6 22.883,3 
- 384,7 
9,0 
22.489,6 
22.864,1 
374,5 
(1) Based on Decision 89/627/EEC, as amended by Decision 90/213/EEC 
(2) Conversion rate at 30.12.1988. 
l 


ISSN 0254-1475 
COM(90) 397 final 
DOCUMENTS 
EN 03 
03.09.1990 
Catalogue number : CB-CO-90-429-EN-C 
ISBN 92-77-63841-9 
PRICE 1 - 30 pages: 3.50 ECU per additional 10 pages: 1.25 ECU 
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