Proposal for a COUNCIL REGULATION (EEC) on measures adjusting certain sectors of the Portuguese food industry
Date: 1993-03-09
Institutions: European Commission
Subjects: Portugal, agro-industry, aid to industry, modernisation of industry, sectoral aid, transitional period (EU)

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(93)  79  final 

B r u s s e l s,  9  March  1993 

Proposal  for a 

milKiniL  REGIIIATIQN  (EEC) 

on measures adjusting certain sectors of the Portuguese  food  industry 

(presented by the Commission) 

S', J int.*  | 

I» 9*0 vv| 

- M i* 
fjfcr'V 
ilkC  - 

il 
i 
i 

ÈSS:/!M:M 

EXPLANATORY  MEMORANDUM 

£ 

In the opinion of both  the Commission  and  the Council,  the  integration of  the new 
Member  States  into the single market  Is a major  politicial  objective. 

As a result  of  the proposals submitted  to this end  by  the  Commission 
(COM  (92) 275  final),  to all  intents and purposes Spanish  integration was 
completed  on  1 January  1993. 

By contrast,  the considerable  challenge posed  by  the abolition of  accession 
mechanisms  to Portuguese  agriculture  has meant  that  it has not  been possible to 
integrate Portugal  by  the same date.  It has become apparent  that  Portuguese 
integration will  not  be possible unless more account  is taken of  the  interests of 
certain  farming sectors  In that  country. 

This proposal  takes account  of  the  interests of  the Portuguese  food  industry, 
whose structures  are  In many  cases weak.  When  the accession mechanisms are 
abolished, this  industry will  be exposed  to  increased  competition  from  the other 
Member  States and will  therefore  have  to make considerable  efforts  to modernize. 

This proposal  encourages  this effort  by granting, over  a period of  three years 
and up to a maximum global  amount of  ECU 60 million, EAGGF  aid under  conditions 
to be  laid down primarily by the Portuguese  authorities. 

3 

COUNCIL REGULATION  (EEC) No 

of 

on measures adjusting  certain sectors of  the Portuguese  food  industry 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to the Treaty establishing  the European Economic Community, and  in 

particular  Article 43 thereof, 

Having  regard  to the Act of Accession of Spain and Portugal, 

Having  regard  to the proposal  from  the Commission, 

Having  regard  to the opinion of  the European Parliament, 

Whereas completion of  the single market  presupposes  the elimination of obstacles 

to trade, not only between  the Member  States of  the Community  in  its composition 

at 31 December  1985 but also, as far as possible, between  these Member  States and 

the new Member States; 

Whereas,  in this context, the majority of  transitional  mechanisms  for  Portuguese 

accession  have been demobilized before  the time  limit provided  for  in the Act of 

Accession; whereas for certain sectors of Portuguese  industry, whose  structures 

are still weak, this demobilization represents a considerable  challenge  in view 

of  the  increased  competition  from  the other Member  States and  third countries; 

whereas, therefore, the adjustment  of  these sectors should  be encouraged  with a 

view to making  it possible  to modernize  them; whereas, to this end,  it is 

appropriate  to grant  businesses  in these sectors an aid  in terms of  capacities 

established on the basis of  the amount produced  during  a historic  reference 

period, the amount of which  is to be determined  by  the Portuguese  authorities, to 

be gradually  reduced over  three years, 

HAS ADOPTED THIS REGULATION: 

' 

Art icle 1 

1.  Structural  adjustment  aid  intended  to accelerate  its modernization  is hereby 

instituted  to the benefit of businesses  in the Portuguese  food  industry 

sectors affected  by  the premature demobilization of  transitional  measures for 

accession meeting  the criteria  laid down by the Portuguese  authorities 

pursuant  to paragraph  3. 

2.  The aid provided  for  in paragraph  1 shall  be granted  to businesses  in the 

sectors concerned: 

-  gradually decreasing over  three years; and 

in terms of capacities established  on  the basis of  the amount  produced 

during a historic  reference period. 

3.  The Portuguese authorities shall  determine: 

-  the sectors meeting  the requirements provided  for  in paragraph  1, 

-  the criteria to be met  by  the beneficiary  businesses.  These shall  be 

established on an objective basis. 

-  the amount of aid.  This amount  shall  be determined on  the basis of 

objective criteria,  in particular  the degree of difficulty  created  for 

each sector  by  the premature abolition of  transitional  accession 

mechanisms; 

-  the reference period provided  for  in paragraph  2, which  in no case may go 

beyond  31 December 1992. 

4.  The  aid  provided  for  in  this Article  shall  be  limited  to  ECU  60 million.  It 

shall  constitute  an  intervention  measure  within  the meaning  of  Article  1(2) 

of  Council  Regulation  (EEC) No 729/70. 

Article  2 

The  Portuguese  author ities  shall  inform  the  Commission  of  the  factors  determined 

pursuant  to Article  1(3) as  soon  as  they  are  adopted  and  on  1 June  1993  at  the 

latest. 

Article  3 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its 

publication  of  the Official  Journal  of  the  European  Communities. 

This  Regulation  shall  be  binding  in  its entirety  and  directly  applicable  in all 

Member  States. 

Done  at  Brussels, 

For  the  Council 

FINANCIAL  STATEMENT 

€ 

1. BUDGET HEADING: 390 Other aid 

AFFflÛPftlATIONS: PDS££ ECU 24 ml 11 Ion 

2. TiTLE: 

Î council Regulation on measures adapting certain sectors of the Portuguese food Industry 

3.  LEGAL BASIS: 
Article  43 of  the  Treaty  and  the  Act  of  Accession of  Spain and Portugal 

4.  AIMS OF  PROJECT: 
To grant  to  certain  sectors  of  Portugjes©  indjcstry  a cfegresslv® structura!  adaptation  aid n&iklng  it  possible 
for  than to  faca  the  increased  competition  resulting  frcm  the  cat^Ietîm  of  the  singt©  madsèt. 

Period of 12 months  Current Financial Year 

Following  Financial  Year 

1994 

ECU  36  ml 11 Ion 

ECU  24 ml 11 ion 

ECU 28 ml 11 Ion 

5.  FINANCIAL  IMPLICATION 

5.0 EXPEhDITURE 

- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 

5.1  REVEHJE 

-  OWN RESOURCES  OF THE EC 
-NATIONAL 

1995 

1996 

1997 

199B 

5 . 0 .1  ESTIMATED  EXPENDITURE 
5 . 1 .1  ESTIMATED  REVEMJE 

ECU 16 mi 11 Ion 

i  ECU  4 mi 11 ion 

i 

5.2  ICTHDD OF  CALCULATION: 
Anrsunt granted  :  BU  60 mil Hon  CÂ)  x  1.205  (tt?)  -  ECU 72 mi I lien CB3 
Planned period  of  appl leal ion:  March  1963 -  February 1998 
Assunsd  aid  amonts  per  year:  March  1993 -  February  1994 «  ECU 38 ml 11 Ion 
March 1994 -  February  1^  •  ECU  24 mi 11 Ion. 
fcferen  1S95 -  February  1995 «  ECU  12 raî fl ion 

Conséquences per  budget  year:  1993:  ECU 3$ mi I lion  x 8 / 1 2- 

ECU 24 mi I lion 

1994:  ECU 36 mi 11 ion x 4/12 »  ECU  12 mi 11 ion)  ECU 28 mil I Ion 

ECU  24 ml 11 ion  x  8/12 -  ECU  16 mi 11 ion) 

1995:  ECU 24 mi I lion  x 4/12 «ECU  8  mi 11 Ion)  ECU 16 mi I lion 

1 2 m i i l l c nx  8/12 -ECU  8  mi I lien) 

1996:  ECU 12 ml 11 Ion X 4/12 « 

ECU  4 ml 11 Ion 

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

6 .1  CAN  TFE  PROJECT  BE FINANCED  BY TRANSFER  BEDffiEN  CHAPTERS  OF T tC  CURRENT  BUDGET? 

6 .2 

IS A  SUPPLEMENTARY  BUDGET  t€CESSARY? 

6 .3  WILL  FUTURE  BUDGET  APPROPRIAT I ONE BE hGCESSARY? 

OBSERVATIONS: 

YESXXX 

XXXXXX 

XXXXXX 

YES 

ISSN 0254-1475 

COM(93) 79 final 

DOCUMENTS 

EN 

15 03 

Catalogue number : CB-CO-93-100-EN-C 

ISBN 92-77-53359-5 

Office for Official Publications of the European Communities 
L2985 Luxembourg