Proposal for a COUNCIL REGULATION (EEC) transferring the financing of certain aids provided for in Council Regulations (EEC) Nos 1096/88 and 2328/91 from the EAGGF Guidance Section to the EAGGF Guarantee Section and amending Regulation (EEC) No 2328/91 as regards part-financing of the system to encourage the set-aside of arable land
Date: 1993-05-05
Institutions: European Commission
Subjects: EAGGF, agricultural productivity, co-financing, common agricultural policy, policy on agricultural structures, set-aside

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COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(93)  176 final 

Brussels,  5  May  1993 

Proposal  for a 

COUNCIL  REGULATION  rEECÏ 

transferring the financing of certain aids provided 

for in Council Regulations  (EEC) Nos 1096/88 and 2328/91 

from the EAGGF Guidance Section to the EAGGF Guarantee Section 

and amending Regulation  (EEC) No 2328/91 as regards part-financing 

of the system to encourage the set-aside of arable land 

(presented  by  the  Commission) 

A 

EXPLANATORY  MEMORANDUM 

In  its  communication  on  the  Community's  finances  between  now  and  1997 
(COM(92) 2001 final of 10 March 1992), the Commission proposed transferring 
certain  types  of  expenditure  currently  financed  under  heading  2  of  the 
financial perspective to heading 1, the EAGGF Guarantee Section guideline. 

The  transfer  requires  an amendment  to the budget  nomenclature, which  has 
already  been done  in the draft budget  for  1993, as well as amendments to 
the legal bases concerned.  This proposal concerns this second stage. 

In the case of the multiannual set-aside scheme provided for in Title I of 
Regulation  (EEC)  No  2328/9l(1),  half  of  the  expenditure  is  currently 
charged to the aforementioned heading No 2.  Under the proposed amendment, 
all expenditure  incurred by the Member States from  16 November  1992 on is 
to  be  charged  to  the  EAGGF  Guarantee  Section.  The  proposed  date 
corresponds  to  the  beginning  of  the  accounting  period  for  expenditure 
eligible  under  the  EAGGF  Guarantee  Section  and  chargeable  to  the  1993 
budget.  It does not involve any changes in the accounting practices of the 
Member  States because  the  financial  arrangements  currently  used  are those 
of the EAGGF Guarantee Section. 

In the case of measures which have been replaced by measures  accompanying 
the reform of the CAP, the position differs in two respects: 

1. The  rules  and  regulations  in  question  were  repealed  when  the  new 
Regulations  (EEC)  No  2078/92<2),  No  2079/92<3)  and  No  2080/92<4> 
entered  into  force.  An  ad-hoc  regulation  on  financing  alone  is 
accordingly proposed. 

2. The  current  financial  arrangements  are  those  applicable  to  the  EAGGF 
Guidance  Section,  which  means  that  eligible  expenditure  is  partially 
reimbursed in the year following that in which it was actually incurred. 
To  facilitate  administration  by  the  Member  States,  provision  should 
therefore be made to move to the EAGGF Guarantee Section at the start of 
the calendar year, i.e. 1 January 1993. 

In the case of this second expenditure category, standardizing the funding 
arrangements  for  all  similar  measures  (early  retirement,  environment  and 
afforestation of agricultural land) should greatly  simplify  administration 
for the Member States. 

(1) OJ No L 218, 6.8.1991, p. 1. 
(2) OJ No L 215, 30.7.1992, p. 85. 
(3) OJ No L 215, 30.7.1992, p. 91. 
(4) OJ No L 215, 30.7.1992, p. 96. 

I 

COUNCIL REGULATION  (EEC) No 

/93 

of 

1993 

*  transferring the financing of certain aids provided 

for in Council Regulations  (EEC) Nos 1096/88 and 2328/91 

from the EAGGF Guidance Section to the EAGGF Guarantee Section 

and amending Regulation  (EEC) No 2328/91 as regards part-financing 

of the system to encourage the set-aside of arable land 

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 proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

whereas new schemes financed by the EAGGF Guarantee Section were introduced by 

Council Regulations  (EEC) Nos 2078/92 of 30 June 1992 on agricultural production 

methods compatible with the requirements of the protection of the environment and 

the maintenance of the countryside^) and 2080/92 of 30 June 1992 instituting a 
Community aid scheme for forestry measures in agriculture(2) to replace the aid 

schemes provided for in Titles II, VII and VIII of council Regulation  (EEC) 

No 2328/91 of 15 July 1991 on improving the efficiency of agricultural 

stuctures(3); 

(1) OJ No L 215, 30.7.1992, p. 85. 

(2) OJ No L 215, 30.7.1992, p. 91. 

(3) OJ No L 218, 6.8.1991, p. 1. 

-h-

Whereas  new  schemes  financed  by  the EAGGF  Guarantee  Section  were  introduced  by 

Council  Regulation  (EEC) No 2079/92 of  30 June  1992  instituting  a Community  aid 

scheme  for  early  retirement  from  farming^4) to replace  the aid  schemes  provided 

for  in Council  Regulation  (EEC) No  1096/88 of  25 April  1988 establishing a 

Community  scheme  to encourage  the cessation of  farming^5), 

Whereas  the  1992 harvest  is the  last  for  which  new  applications  may  be made  to 

participate  in the set-aside  scheme  referred  to  in Article  2 of  Council 

Regulation  (EEC) 2328/91; whereas  this  scheme  is financed  equally  by  the 

Guarantee  and  Guidance  Sections  of  the  European  Agricultural  Guidance  and 

Guarantee  Fund  (EAGGF); 

Whereas  new  forms of  set-aside  have  been  introduced  by  Council  Regulations  (EEC) 

No  1765/92 of  30  June  1992 establishing  a support  system  for  producers of  certain 

arable  crops^6^,  No  2078/92  and  No 2080/92; whereas  these  new  forms of  set-aside 

are  financed  by  the Guarantee  Section of  the  EAGGF; 

Whereas  it  transpires  from  the  transitional  provisions  laid  down  for  Article  11 

of  Regulation  (EEC) No 2078/92, Article  11 of  Regulation  (EEC) No  2079/92  and 

Article  8(1) of  Regulation  (EEC) No 2080/92  that  expenditure  may  continue  to 

arise under  the old  schemes  provided  for  in Regulations  (EEC) Nos  2328/91  and 

1096/88 after  1 January  1993; 

Whereas  the  transfer  between  the old  and  new  schemes  should  be  facilitated  while 

preventing  the simultaneous  existence  of  two different  administrative  schemes; 

Whereas  provision  should  therefore  be made  for  financing  of  all  expenditure  on 

such  measures  effected  by  the Member  States  from  1 January  1993 by  the  EAGGF 

Guarantee  Sect ion, 

(4) OJ  No L 215, 30.7.1992, p. 91. 

(5) OJ  No L  110, 29.4.1988, p. 1. 

(6) OJ  No L  181,  1.7.1992,  p. 12. 

-4-

Whereas  all  expenditure  incurred  by  the Member  States  from  16 October  1992 on  in 

respect  of  the  various  set-aside  measures  should  be  placed  under  the same  heading 

in the  financial  perspective;  whereas  Regulation  (EEC) No  2328/91  should  be 

amended  accordingly, 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

Expenditure  incurred  by  the Member  States  from  1 January  1993 on  schemes provided 

for  in Titles  II, VII  and  V IM  of  Regulation  (EEC) No 2328/91  and  in Regulation 

(EEC) No  1096/88 shall  be eligible under  the  EAGGF  Guarantee  Section. 

Article 2 

Council  Regulation  (EEC) No 2328/91  is hereby  amended  as  follows: 

1.  The  following  sentence  is added  to  the  last  subparagraph  of  Article 1(2): 

"However,  for  expenditure  incurred  by Member  States on  this  scheme  from  16 

October  1992 on,  the Community  contribution  shall  be  covered  in  its entirety 

by  the EAGGF  Guarantee  Section on  the basis of  the rates  fixed  pursuant  to 

Article  31(2)." 

2.  The  fol lowing sentence  is added  to  the second  subparagraph  of  Article  31(1): 

"However,  expenditure  incurred  by  the Member  States  in respect  of  these 

measures  from  16 Octobre  1992 on  shall  be eligible  only  under  the  Guarantee 

Section of  the EAGGF." 

Article  3 

This Regulation  shall  enter  into  force on  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 all 

Member  States. 

Done  at Brussels, 

For  the Council 

The  President 

FINANCIAL STATEMENT 
for 
Draft Council Regulation 
transferring the financing from EAGGF Guidance to EAGGF Guarantee 
of certain aids provided for by 
Council Regulations  (EEC) Nos. 1096/88 and 2328/91 

1.  Budget heading;  Bl-500 ; accompanying measures 

(1993 nomenclature) 

2.  Legal basis  ; Art. 43 of Treaty. 

3.  Description; Move to the Guidance Section the financing of action under 

Regulations  (EEC) Nos. 1096/88 and 2328/91  (Arts. 3, 21, 25 and 26) up to now 
met from the Guidance Section by virtue of Objectives 1 and 5a. 

4.  For classification of expenditure;  compulsory expenditure 

5.  Nature of expenditure;  Co-financing of eligible national expenditure. 

non-differentiated appropriations 

6.  Implications for operating appropriations 

6.1.  Calculation of total costs 

The above amounts are not new expenditure from the Community budget since 
the proposal is merely to move between headings of the financial 
perspectives expenditure already budgeted for under Community co-financing 
arrangements.  They are new amounts for heading 1 of the financial 
perspectives following enlargement of its field of application as 
indicated in COM(92)2001.  It should also be pointed out that the change 
will involve a shift in the time at which expenditure is charged to the 
Community budget.  On average this will be nine and a half months earlier 
than before. 

The amounts are based on estimates of the commitments made and to be made 
by the Member states up to 31.12.1992 with financial implications at 
national level in 1993 and subsequent years.  The Community contribution 
rates are unchanged. 

6.2.  The indicative schedule of commitment and payment appropriations falling 

to the EAGGF Guarantee  (in m of ecus) 

1993 
1994 
1995 
1996 
1997 
Total  '93-97' 

R. 2328/91 
29 
34 
33 
25 
_T_ 
128 

R. 1096/88 
26 
19 
15 
14 
12. 
84 

Total 
55 
53 
48 
39 
II 
212 

é 

FINANCIAL STATEMENT 
concerning 
the proposal for a Council Regulation amending Regulation  (EEC) 
No 2328/91 as regards part-financing of the system to encourage 
the set-aside of arable land 

1.  Budget heading involved 

Bl-400: conventional set-aside scheme 

3.  Legal basis 

Article 43 of the EEC Treaty 

4.  Description of operation 

The proposal involves charging all expenditure on the multiannual set-aside 
scheme to the Guarantee Section of the EAGGF alone from 16 October 1992 on, 
whereas before that date the scheme was funded in equal measure by the 
Guarantee and Guidance Sections. 

4.  Classification of expenditure or revenue 

Compulsory expenditure 

5.  Type of expenditure or revenue 

Part-financing of eligible national expenditure 

7.  Financial impact on appropriations for operations 

The proposal will not have any impact on the Community budget. In accordance 
with the new financial perspectives proposed for 1993-99, it involves 
charging to heading 1 that part of the expenditure which was up to now 
charged to heading 2 of the financial perspectives. 

In the draft budget for 1993 a total of ECU 320 million  (the entire Community 
contribution) has been entered in item Bl-400 of the EAGGF Guarantee Section 
to finance the measure. 

This expenditure will tail off between now and 1997 as the contracts expire 
and as some farmers possibly withdraw with a view to joining the new scheme 
pursuant to the provisions of Article 14 of Regulation  (EEC) No 1765/92. 

? 

ISSN 0254-1475 

COM (93) 176 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-203-EN-C 

ISBN 92-77-55241-7 

Office for Official Publications of the European Communities 
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