ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)203
Vol.1978/0067

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COMMISSION OFTHEEUROPEANCOMMUNITÎE
COM(78)203final
Brussels,22May1978
\
Proposalfora
COUN'TCREGULATION ^UEO)
amendingRegulationNo136/oS/EEContheestablishment ofacommon,
organization ofthemarketinoilsandfats
(submittedtotheCouncilbytheCommission)
cc:;(78)203final

EXPLANATORY MEMORANDUM
TheCourtofJusticeofthe^EuropeanCommunities,initsJudgementof8November
1977(AIMAversusCRECO,36/77),statedthattheterm'producerofoliveoil'
withinthemeaningofArticle10ofRegulation No136/66/EECmustbeinterpre­
tedasreferringtotheproducersoftheprocessedproductasconstituted by
oliveoil,andthatconsequentlyitistheselatterwhomustreceivethesubsidy.
Nowsince1November1973,pursuanttoCouncilRegulation (EEC)No2309/73on
thesubsidyforoliveoil,theapplication forasubsidyissubmittedbythe
oliveproaLcerswhohavelodgedadeclarationofcultivation .Consequently ,as
fromtheabovementioneddate,thesubsidyhasbeengrantedtotheseproducers.
FollowingtheCourtJudgement,thereisariskthatthesubsidymaybeclaimed
byoilproducers whowerenotalsotheproducersoftheolives.Suchaclaimwouldnotbejustified,since
theoilproducerswillalreadyhavebenefittedindirectly fromthesubsidysince
thepurchasepricepaidbythemfortheolivestakesaccountofthesubsidy
receivedbytheoliveproducers.
Consequently,topreventsuchasituation,Article10ofRegulation No136/66/EEC
shouldbeamendedretroactively ,whileprovidingfortransitional measures
whichtakeaccountofthespecialsituationexistinginFrance.

ProposaLfora
COUNCILRE6ULATI0N (EEC)No/78
amendingRegulation No!i6/66/EEContheestablishment ofacommonorganization of
themarketinoilsandfats
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,andin
particularArticle43thereof.
HavingregardtotheproposalfromtheCommission,
HavingregardtotheOpinionoftheEuropeanParliament,
Whereas Article10(1)ofCouncilRegulation No136/66/EECof22September 1966
(1)ontheestablishment ofacommonorganization ofthemarketinoilsandfats
(2)aslastamendedbyRegulation (EEC)No2560/77,providesthatwheretheproduction
targetpriceishigherthanthemarkettargetpricerulingatthebeginningofthe
marketingyear,asubsidyequaltothedifference' betweenthesetwopricesshallbe
grantedtoproducersofoliveoilextractedwithintheCommunityfromolives
harvestedwithintheCommunity;'
WhereastheCourtofJusticeoftheEuropeanCommunities,inits
judgment of8November1977CAIMAversusGRECO,36/77),heldthatt.heexoression
'producersofoliveoil'withinthemeaningofArticle10ofRegulation (EEC)
No136/66/EECistobeinterpreted asreferringtotheproducersoftheprocessed
productconstituted bytheoliveoilandthat,consequently ,itistotheselatter
thatthesubsidymustbegranted;
WhereasCouncilRegulation (EEC)No3209/73of27November1973onthesubsidyfor
oliveoil^,aslastamendedbyRegulation(EEC)No2363/77^,providesthat,with
effectfrom1November1973,theapplication forthesubsidyistobepresentedby
producersofoliveswhohavesubmitted adeclaration ofcultivation ;
WhereasitispursuanttothisRegulationthatthesubsidyhasbeengrantedtoolive
producerssince1November1973;whereas,however,inviewoftheinterpretation given
bytheCourtintheabovementioned Judgment,itistobeexpectedthatthe
(1)0JNo172,30.9.1966,p.3025/66
(2)0JNoL303,28.11.1977,p.1
(3)NotyetpublishedintheCourtCaseBook/1977/ECR2059.
(4)0JNoL327,28.11.1973>D.1
(5)'0JNoL277,29.10.1977,p.4

-2-
subsidywillbeclaimedbyoilproducers whowerenotalsotheproducersofthe
olives;whereassuchapplications wouldnotbejustified economically,
sincetheoilproducershavealreadybenefitedindirectly fromthesubsidythrough
havingpurchasedtheolivesatapricewhichtakesaccountofthesubsidyreceived
bytheoliveproducer;
WhereasitisthereforenecessarytoamendArticle10ofRegulation No136/66/EEC
witheffectfrom1November1973soastoavoidasituationwher.ebyoilproducers,
havingenjoyedtheadvantagereferredtoabove,alsoreceivethesubsidydirectlyin
respectofthesameproduction;
Whereas,however,inFrance,whentheoliveispurchasedbythemiller
andtheoliveresiduebyindustry,itistotheoilproducerthatthesubsidyhas
beenpaidorpromised;whereasthepriceprovidedforincontractsassumesthatthe
subsidyispaidtotheoilproducer;whereasprovisionshouldconsequently bemade
forappropriatetransitional measures.
HASADOPTEDTHISREGULATION

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Article 1
Article10C1)ofRegulation No136/66/EECisherebyamendedtoreadasfollows
witheffectfrom1November1973:
'Article10
"1.Wheretheproductiontargetpriceishigherthanthemarkettargetpriceruling
atthebeginningofthemarketingyear,asubsidyequal,tothedifference
betweenthesetwopricesshallbegrantedtoproducersofolivesharvestedin
theCommunityinrespectofthequantityofoilextractedtherefrom."
Article2
Bywayofderogation fromArticle 1,thesubsidyprovidedforinArticle10of
Regulation No136/66/EECshallbegrantedtoproducersofoilinrespectofoil
extractedfromolivesharvestedbefore1November1978,wherethisisprovidedfor
bythelegislation oftheMemberStateconcerned.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable'inall
MemberStates.
Doneat FortheCouncil