No C 236/8 Official Journal of the European Communities 2.9.87 
Proposal for a Council Regulation establishing a framework system for national aids to agri­
cultural income 
COM(87) 166 final 
(submitted by the Commission to the Council on 15 April 1987) 
(87/C 236/05) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, HAS ADOPTED THIS REGULATION: 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 42 and 
43 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Council Regulation (EEC) No.. 787 of 
1987 (') introduces a Community system of aids 
to agricultural incomes intended to make it easier, by 
granting income aids on a transitional and degressive 
basis, for main-activity farmers and their families to 
reach a situation where they can pursue their activity in 
satisfactory economic conditions; 
Whereas, as regards the category of holdings in difficulty 
which are unable or consider themselves unable to 
achieve such a situation, it is incumbent upon the 
Community to lay down clear rules to ensure that action 
taken by the Member States with regard to aids to agri­
cultural income does not jeopardize the bases of the 
common agricultural policy; whereas a positive 
indication should be given of those situations in which, 
outside the abovementioned Community system, national 
aids to agricultural income may prove necessary to 
maintain a fair standard of living for the farming 
community, in view of the present general economic 
situation and in particular of the limited opportunities 
for finding work outside agriculture for the farmers 
concerned; 
Whereas, to that end, in order to ensure that national 
measures have the necessary transparency and that the 
Community conditions designed to safeguard the 
Community's objectives as regards the readjustment of 
markets in particular are complied with, the grant of the 
income aids in question should be made subject to prior 
approval by the Commission of income aid programmes 
drawn up by the Member States which plan to 
implement such measures, 
O See page 4 of this Official Journal. Article 1 
Member States may be authorized on the conditions laid 
down in this Regulation to grant aids to agricultural 
income, as defined in Article 1 (2) of Regulation (EEC) 
No . . ./87, which do not come within the scope of the 
Community system introduced by the abovementioned 
Regulation. 
Article 2 
1. Articles 92 to 94 of the Treaty shall not apply to 
the aids covered by this Regulation, with the exception 
of those referred to in Article 92 (2). 
2. The provisions of this Regulation shall apply 
without prejudice to other specific or sectoral 
Community provisions. 
Article 3 
1. Aids to agricultural income shall be authorized only 
if 
(a) they are covered by a programme drawn up by the 
Member State concerned in accordance with Article 
4; 
(b) the recipients fulfil the conditions set out in Article 5 
(1); and 
(c) they do not exceed in amount the level determined 
in accordance with Article 5 (2) of this Regulation. 
2. Aids to agricultural income are prohibited, the 
amount of which is determined by reference to: 
— prices, 
— quantities of agricultural products, or 
— inputs, with the exception of labour. 
Article 4 
The programme referred to in Article 3 (1) (a), herein­
after called 'PAIA II': 
— may be introduced as a part of a PAIA within the 
meaning of Regulation (EEC) No .. ./87 or as a 
separate programme, 
2.9.87 Official Journal of the European Communities No C 236/9 
— shall meet the requirements established in Article 3 of 
that Regulation, complying however, as far as the 
detailed conditions for granting the aids are 
concerned, with the provisions of this Regulation, 
and in particular Article 5 thereof, 
— shall warrant conformity with the objective that aids 
within the scope of this Regulation may not stimulate 
agricultural production. 
Article 5 
1. Farmers and members of their families working on 
the holding may receive income aid only where overall 
family income from the holding is less, per work unit, 
than the average income for the area or, at the option of 
the Member State concerned, 80 % of the average 
national income. 
2. The level of the income aid per work unit shall be 
determined: 
(a) by farmer and by family member working on the 
holding; and 
(b) in such a way as to cover, at most, the difference 
between: 
— the existing overall family income from the 
holding divided by the number of recipients on 
the holding, and 
— the average regional income, but in no case 
exceeding 90 % of the average national income. 
3. As regards the definitions of the incomes referred 
to in this Article, the second to fourth subparagraphs of 
Article 4 (1) (b) of Regulation (EEC) No .. ./87 shall 
apply. 
Article 6 
1. "Where a Member State is planning to introduce or 
amend a programme of national income aids in 
accordance with this Regulation, its shall submit to the 
Commission a draft of the PAIA II or of its amendment. 
The submission must include the information necessary 
to determine whether the conditions set out in this Regu­
lation are met. 
At the request of the Commission, the Member State 
concerned shall submit any further information required. 
2. The Member States may not implement the 
measures planned before the Commission has approved 
the PAIA II concerned. The Commission shall examine in particular whether the 
planned measures: 
(a) comply with the provisions of this Regulation, taking 
into account the objectives thereof; and 
(b) are consistent with the Community's objectives as 
regards the readjustment of markets. 
3. Within six months from receipt of a draft PAIA II 
or the amendments thereto, the Commission shall adopt 
a decision relating to their approval, provided that all the 
particulars referred to in Article 4 and, where appro­
priate, the further information referred to in the second 
subparagraph of paragraph 1 of this Article have been 
supplied. 
Article 7 
The Member States shall adopt the measures required to 
adapt to the provisions of Articles 1 to 6, within six 
months of the entry into force of this Regulation, their 
existing agricultural income aid schemes, in so far as the 
latter are not authorized by other specific or sectoral 
Community provisions. 
Article 8 
Detailed rules for the application of this Regulation shall 
be adopted in accordance with the procedure laid down 
in Article 9 of Regulation (EEC) No .. ./87. 
Article 9 
1. By the end of a three years' period after entry into 
force of this Regulation, the Commission shall submit to 
the Council and the European Parliament, on the basis 
of the information provided by the Member States, a 
report on the operation of the framework system 
provided for in this Regulation. 
2. After examination of that report, the Council, 
acting in accordance with the procedure laid down in 
Article 43 (2) of the Treaty may decide, in the light of 
experience and changes in economic conditions and in 
agricultural incomes, to amend this framework system. 
Article 10 
This Regulation shall enter into force on 1987. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.