Proposal for a COUNCIL REGULATION ( EEC ) on temporary compensation for the impact of the situation in Yugoslavia on transport of fresh fruit and vegetables from Greece
Date: 1992-01-09
Institutions: European Commission
Subjects: Greece, Yugoslavia, carriage of goods, compensatory financing, fresh fruit, fresh vegetable

COMMISSION OF THE EUROPEAN  CŒvMDNÏTÎES 

C0M(91) 557 final 

Brussels,  9 January  19S2 

Proposal  for a 

COUNCIL  REGULATION (EEC) 

on  temporary  compensation  for the impact of the situation 
in Yugoslavia on transport of fresh  fruit  and vegetables 
from  Greece 

(presented by the Commission) 

'6 

Explanatory  Memorandum 

Subject :  Proposal  for  a Council  Regulation  on  temporary  compensation  for 
the  impact  of  the situation  in Yugoslavia  on  transport  of  fresh 
fruit  and  vegetables  from  Greece 

The events  in Yugoslavia  in 1991, of  a  type unprecedented  since 
introduction  of  the common  agricultural  policy,  have  seriously  affected 
consignment  of  Greek  fruit  and  vegetables  to  the other  Member  States.  Most 
of  this normally  goes  by  road  across Yugoslavia  and  have  had  to be 
rerouted,  by  rail  or  road, either  via Bulgaria, Romania, Hungary  and 
Czechoslovakia or  via  Italy. 

This  has  substantially  increased  transport  costs  and  has  also  lengthened 
transport  times, which  given  the perishable  nature of  the products  has a 
marked  impact  on  its quality  and  hence  value. 

Fruit  and  vegetables  account  for  20% of  final  production  in Greek 
agriculture  and  consignments  to other  Member  States  produce  covered  by  the 
market  organization  amounted  to 336 000  tones on  average  for  the  period 
1987-1990.  It  is accordingly  necessary  to grant  to the operators  concerned 
compensation  for  their  additional  consignment  costs  in 1991  in order  to 
permit  them  to adjust  to the new situation  as  rapidly  as possible.  This  is 
the purpose of  the attached  proposal  for  a Regulation  that  the  Commission 
submits  to  the  Council. 

Proposal  for a 

Council  Regulation  (EEC) No 

of 

on temporary  compensation  for  the  impact of  the situation 
in Yugoslavia on transport of  fresh  fruit  and  vegetables 
from Greece 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to the Treaty establishing  the European Economic Community, 
and  in particular  Article 43(2) thereof, 

Having  regard  to the proposal  from  the Commission1, 

Having  regard  to the opinion of  the European Parliament2, 

Whereas  the state of war  that  has arisen  in Yugoslavia  in 1991  has caused 
sudden and prolonged  blockage of  the road and  rail  routes normally  used for 
transport of  fresh  fruit  and vegetables  from Greece  to Member  States other 
than  Italy; 

Whereas  this situation, unprecedented  since  the common agricultural  policy 
was  introduced,  is  liable, given  its duration, the highly  perishable  nature 
of  the products and  the need  to ensure  that quality standards are observed 
throughout  the distribution process, to have a damaging  impact on  the Greek 
fruit and vegetables sector, which  is an  important  part of  that Member 
State's economy; 

Whereas the operators concerned must  be given  temporary  assistance  to 

1  OJ No C, 
2  OJ No C, 

-4-

-2-

permit  them  to adopt  as rapidly  as possible  to the new situation; whereas 
none of  the existing  instruments of common organization of  the sector  can 
be used; 

Whereas special  temporary  compensation should  therefore  be granted, equal 
to the  increased  road and  rail  transport  costs  incurred  in avoiding 
Yugoslavia,  for consignments made by  lorry or  refrigerated  wagon  in 1991 
from Greece  to other Member  States except  Italy of  fresh  fruit  and 
vegetables as  listed  in Article  1 of Council  Regulation  (EEC) No  1035/72 of 
18 May  1972 on  the common organization of  the market  in fruit  and 
vegetables3, as  last amended  by Regulation  (EEC) No  1623/914; whereas 
compensation  under  the present  measure  should  be  limited  to ECU 4 million; 

Whereas  the present  measure  is  in  line with  the objectives of Article  39 of 
the Treaty; whereas  it should  therefore  financed  by  the Guarantee  Section 
of  the European Agriculture Guidance and Guarantee  Fund  (EAGGF), 

HAS ADOPTED THIS REGULATION: 

Article 1 

Financial  compensation  shall  be given, for  the additional  costs  incurred by 
the need  to avoid Yugoslavia, on consignments made  in 1991  by  lorry or 
refrigerated  wagon  from Greece  to Member  States other  than  Italy of  fresh 
fruit  and vegetables  as  listed  in Article  1 of Regulation  (EEC) No 1035/72. 

3  OJ  No L 118 of  20.5.1972, p.1, 
4  OJ No L 150 of  15.6.1991, p.8, 

-3-

Article 2 

1. The Community  expenditure  required on  financial  compensation  as specifed 

in Article  1  is estimated  at  ECU 4 million. 

2. The budget  authority  shall  determine  the appropriations available for 

each  financial  year. 

Article 3 

Compensation  shall  be paid  to the consignor  on presentation  to the 
consequent  authorities of documents substantiating  his claim. 

The Commission,  in accordance with  the procedure  referred  to  in Article 4, 
shall  determine what  documents are  required. 

Article  4 

The Commission  in accordance with  the procedure  laid down  in Article 33 of 
Regulation  (EEC) No 1035/72, shall  adopt  rules for  application of  this 
Regulation,  including  the amount  of  the compensation. 

Article 5 

For  the purposes of Article  3 of Council  Regulation  (EEC) No 729/70 of 
21 April  1970 on  the financing of  the common  agricultural  policy5, as  last 
amended  by Regulation  (EEC) No 2048/886, compensation  paid under  this 
Regulation  shall want  as  intervention  intended  to stabilise the 
agricultural  markets and  shall  be financed  by  the EAGGF  Guarantee  Section. 

5  OJ  No L 94, of  28.4.1970, p. 13 
6  OJ NO L 185, of  15.7.1988. P. 1 

Article  6 

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

This  Regulation  shall  be  binding  in  its entirety  and  directly  applicable  in 
a 11 Member  States. 

Done  at  Brussels, 

For  the  Council 
The  President 

£-

FINANCIAL  STATEMENT 

1. BUDGET HEADING: 1509 

APPROPRIATIONS: p.m. ECU mi 11 ion 

DATE: 29 November 1991 

2. TITLE: 
Draft  Oouncil Regulation concerning compensation for the effects of the current situation in Yugoslavia on 
the transport of certain fresh fruit and vegetables from Greece 

3. LEGAL BASIS: 
Article 43(2) of the Treaty of Rome 

4. AIMS OF PROJECT: 

To compensate for the extra cost of transporting certain fruit and vegetables from Greece to the rest of 
the Oonmunity as a result of the current situation  in Yugoslavia 

5.  FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

Period of 12 months 

Current Financial Year 
1992 

Following Financial Year 

1993 

- CHARGED TO THE EC BUDGET 

ECU 4.4 mi 11 ion 

ECU 4.4 mi 11 ion 

(INTERVENTION) 

5.1 REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

- NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

1994 

1995 

1996 

1997 

Article 2 provides for expenditure of ECU 4 mi 11 ion. 
ECU 4 mi 11 ion (A) x 1.092 (DR) - ECU 4.368 mi 11 ion (B) 

6.0 CAN THE PROJECT BE FINANCED FRCM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2  IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVATIONS: 

YES 

xxxxxx 

ND 

ND 

This  is an exceptional measure.  Appropriations are available in chapter 15 of the draft budget for 1992. 

BSN 0254-1475 

COM (91) 557 final 

DOCUMENTS 

EN 

11 07  03 

Catalogue number : CB-CO-91-614-EN-C 

ISBN 92-77-79432-1 

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