WRITTEN QUESTION E-1863/98

by Alexandros Alavanos (GUE/NGL) to the Commission

(16 June 1998)

Subject: Abolition of the Greek Olive Oil Aid Monitoring Agency

The Greek Olive Oil Aid Monitoring Agency was established by Regulation (EEC) 2262/84(1) which has also funded its operations.

The Commission has made very positive remarks about this agency and the equivalent agencies operating in Italy, Spain and Portugal, emphasizing that they are independent from the national administrations, since they play a leading role in carrying out controls (COM(96) 571 final, 12.11.1996)(2).

The Greek Government has now adopted a law abolishing the Olive Oil Aid Monitoring Agency. The Greek Minister of Agriculture told the Greek Parliament that "the Commission services at all levels had been notified " about the abolition of the agency.

Will the Commission say:

1. Has it accepted the abolition of the agency, and if so, when and by what procedures?

2. Will Regulation 2262/84 be amended accordingly

3. Will the equivalent agencies in the other Member States also be abolished?

4. Does it consider that entrusting controls on the olive oil sector to the payments agency, as the Greek Government is proposing, will ensure the independence of controls from the national administration?

5. Will funding for the agency be transferred to the payments agency or will it cease?

Answer given by Mr Fischler on behalf of the Commission

(30 July 1998)

The Commission has recently been informed unofficially that the ministry of Agriculture has forwarded for adoption to the Greek Parliament a draft law relating to the creation of an "agency for payments and control of Community aids of the guidance and the guarantee section of EAGGF (Opekepe)". The draft has not been communicated officially to the Commission. Current information indicate that the draft provides for the abolition of the Greek control agency for olive oil (OEEE) and its re-establishment within the framework of the new agency for payments which is under creation.

The Commission has recently notified to the Greek authorities that any change relating to the form, the competences and the functioning of OEEE could only be possible following a modification of the relevant Community legislation (Council Regulation (EEC) 2262/84 of 17 July 1984 laying down special measures in respect of olive oil) which of course refers to all Member States concerned. At present the Commission does not intend to propose to the Council any such modification of the Regulation. The Commission does not have any information referring to the abolition of the equivalent agencies in the other Member States.

Regulation (EEC) 2262/84 provides that olive oil producing Member States are obliged to set up a specific agency with specific tasks relating to controls on the olive oil sector. It provides also that the agency shall be given full administrative autonomy, shall have the autonomous power to recruit its personnel and carry out controls and other activities within the framework of a specific activity programme referring exclusively to controls in the olive oil sector. This programme is submitted to the Commission for further comments before its final adoption by the Member State. The Commission considers that it will be difficult to ensure this administrative autonomy of OEEE if it is incorporated within a general payments agency responsible for controls in all sectors of the guarantee and guidance section of the European agricultural guidance and guarantee fund (EAGGF).

Community financial participation in the expenditure of OEEE depends on specific rules which allow the Commission to recognise the eligibility of the advances paid to the agency out of the Community budget. These rules oblige the Member State to submit to the Commission a specific draft budget containing data referring in particular to the planning of staff use, administrative expenditure, the investments as well as the receipts coming separately from Community and national funds. Moreover, the Member State has to submit to the Commission a specific control report relating exclusively to the financial management of the agency, on the basis of which the Commission recognises the Community expenditure. It is evident that the funding of OEEE by the Community budget is only possible under these conditions.

(1) OJ L 208, 3.8.1984, p. 11.

(2) OJ C 378, 13.12.1996, p. 16.