Proposal for a COUNCIL REGULATION (EEC) amending Regulations (EEC) Nos 2328/91, 866/90, 1360/78, 1035/72 and 449/69 with a view to expediting the adjustment of production, processing and marketing structures as part of the reform of the common agricultural policy
Date: 1993-06-16
Institutions: European Commission
Subjects: State aid, Structural Funds, agricultural structure, aid to agriculture, co-financing, reform of the CAP

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(93)  270  final 
Brussels,  16 June  1993 

Proposal  for  a 
COUNCIL  REGULATION  (EEC) 

amending  Regulations  (EEC)  Nos  2328/91,  866/90,  1360/78,  1035/72 
and  449/69  with  a view  to  expediting  the  adjustment  of 
production,  processing  and  marketing  structures  as  part 
of  the  reform  of  the  common  agricultural  policy 

(presented  by  the  Commission) 

SMiUMtrumam 

EXPLANATORY  MEMORANDUM 

Objective  5(a)  of  the  reform  of  the  Structural  Funds  was  designed  to  expedite  the 
adjustment  of agricultural  structures  throughout  the Community  as part of  the reform  of 
It  was  implemented  through  the  recasting  and 
the  common  agricultural  policy. 
strengthening  of  the  existing  socio-structural  horizontal  measures  and  included,  up  to 
1992, when  the reform  of the common  agricultural  policy  came into force,  the  following 
measures: 

(a) 

improvement  of  the  structures  of  production: 

aid  for  investments  in  agricultural  holdings, 
setting-up  aid  for  young  farmers, 
aid  for  accounting  on  agricultural  holdings, 
aid  for  mutual  assistance,  relief  and  management  services, 
aid  for  vocational  training  in  agriculture, 
aid  for  mountain  and  hill  farming  and  farming  in  other  less-favoured  areas, 

(b) 

a  contribution  to  improving  the  situation  on  agricultural  markets: 

aid  for  the  set-aside  of  arable  land, 
aid  for  more  extensive  production, 
aid  for  the  early  retirement  of  farmers; 

(c) 

protection  for  environmentally  sensitive  areas; 

(d) 

forestry  measures  for  agricultural  land; 

(e) 

improvement of the structures for  the processing and marketing of agricultural  and 
forestry  products: 

start-up  aid  for  producer  groups  marketing  agricultural  products, 
investment  aid for  the food  industry  and firms engaged  in the marketing  and 
first  processing  of  wood  (before  industrial  factory  sawing). 

The measures  under  Objective  5(a) are unique  in  that  they  are the only  measures  under 
the reform  of  the Structural  Funds for  which  there exist Council  regulations  defining  in 
detail the conditions which beneficiaries  have to satisfy  in order to qualify  for  aid which 
is part-financed  by the Community.  These conditions are essential  if the common  policy 
on  agricultural  structures  is  to  be  fully  integrated  into  the  common  agricultural  policy 
and  they  ensure  a  high  degree  of  transparency  in  the  use  of  Community  funds.  They 
also  provide objective  yardsticks  for  monitoring  operations. 

The retention of horizontal  structural  measures for  agriculture is justified  by the fact  that 
the policy on price support  and agricultural  markets applies throughout  the  Community. 
This  requires  a  common  policy  on  agricultural  structures  with  horizontal  instruments 
which  permit  holdings  and  the  food  industry  to  adjust  to  changes  in  the  common 
organization  of  the  agricultural  markets. 

The present  regulations  concerned  with  Objective  5(a) are: 

Regulation (EEC) No 2328/91, which covers measures for farmers (see  1(a) to (d) 
above); 

Regulations  (EEC)  Nos  1360/78,  1035/72,  866/90  and  867/90,  which  cover 
measures  for the processing  and marketing  of  products  (see  the first and second 
indents  respectively  of  1(e) above). 

3.  The Commission  believes that the coherence and effectiveness  of all  regional  and rural 
development operations should be improved and that this can be achieved only  through 
integrating the horizontal  measures to improve agricultural  structures more closely  into 
the existing  procedures for programming  and partnership. 

That  is  why  recent  Commission  proposals  on  assistance  from  the  Structural  Funds 
provide  for  an adjustment  of  the rules on  common  measures financed under Objective 
5(a). 

It should be noted that some integration has already taken place.  Aid for the marketing 
and processing of agricultural products is covered by sectoral plans, Community support 
frameworks and programmes.  Measures under Objective 5(a) in Objective  1 regions are 
fully  integrated  into  the  Objective  1 procedures  for  programming  and  partnership,  at 
least  as far as the  determination  of  the total financial resources available  for  Objective 
5(a)  in those  regions  is concerned. 

Nevertheless,  the  Commission  would  like  to  see  greater  clarity  in  budget  planning  at 
both  Community  and national  level.  Indicative financial envelopes  for  the  Objective 
5(a)  measures  should  be  adopted through  partnership for the six-year  planning period. 

The Member States could also indicate more clearly their programming priorities among 
the measures to be implemented, the financing rates to be applied and the objectives in 
view.  These  indications  could  be  adjusted  in  the  light  of  changing  circumstances  by 
following  the procedures  used for  all  structural  measures. 

4.  The  procedure  for  programming  measures  under  Objective  5(a)  is  set  out  in  the 
proposals for Council regulations amending the framework  and coordinating regulations 
for the  reform  of  the  Structural  Funds0\  The  main stages  are as follows: 

(a) 

(b) 

the  Member  States  submit  to  the  Commission  their  plans  for  measures  under 
Objective  5(a)  at the  appropriate geographical  level; 

the  Commission  considers  these  plans  and  draws  up  the  Community  support 
frameworks  (CSFs), in partnership with the Member  State,  as  follows: 

in  the  case  of  the  Objective  1 regions,  measures  under  Objective  5(a)  are 
included in the CSFs for that Objective.  Those  CSFs are then presented to 
the  Committee  on the Development  and Conversion  of  Regions; 

(i)  COM(93)  67  and COM(93)  124. 

- 

in  other  cases, measures  under  Objective  5(a)  relating  to 
agricultural  structures  are  included  in  a  single  CSF  for 
each  Member  State  which  distinguishes  the  measures  to  be 
implemented  in Objective  5(b) areas  from those  for the  rest 
of  the  territory.  That  CSF  is  presented  to  the  Committee 
on Agricultural  Structures  and Rural Development. 

(c)  The  Commission  takes  a  decision  on  the  applications  for 
assistance  submitted  by  the  Member  States,  which  relate  to  the 
forms of assistance provided  for by the Community rules. 

This  form  of  programming  for  measures  under  Objective  5(a), based  on 
CSFs with  indicative  financial envelopes, is designed  to reconcile  the 
requirements  for  budgetary  clarity,  coherence  between  the  various 
measures  and  flexibility  in implementation. 

5. 

This  proposal  for  a  single  Council  Regulation  is  intended  primarily 
to  introduce  into  the  regulations  mentioned  on  page  2  the  methods  of 
programming  laid  down  in  the  proposals  for  Council  Regulations 
amending  the  framework  Regulation  and  the  coordinating  Regulation  of 
the  reform  of  the  Structural  Funds.  Reference  is  made  in  the 
Objective  5(a)  Regulations  to  the  rules  and  procedures  of  those 
regulations  in order to avoid  any repetition. 

The Articles concerned  are as follows: 

|  Reference  to 

2328/91  |  866/90  |  1360/78  |  1035/72 

Regulations  (EEC) Nos. 

-  Programming 

Art.1(3) 

Art.2(1) 

Art.12(2) 

Art.36(2) 

-  Plans 

-  CSF 

Art.29(1) 

Art.2(2) 

Art.14(1) 

Art.36a(l) 

Art.29(2) 

Art.2(3) 

Art.14(2) 

Art.36a(2) 

- Applications  for 

Art.30(l) 

Art.10 

Art.l4a(l) 

Art.36b(l) 

assistance 

- Granting  of  assistance 

Art.30(2) 

Art.15(1) 

Art.l4a(2) 

Art.36b(2) 

- Payment of  assistance 

Art.33 

Art.17 

Art.15 

Art.36c 

-  Checks 

Art.36 

Art.18 

-  (*) 

-  (*) 

(*)  : In  the  absence  of  provisions,  those  of  Regulation  (EEC)  No  4253/88 

apply. 

It  should  be  noted  that  the  proposed  revision  of  the  Objective  5(a)  regulations  will 
greatly  simplify  procedures  and  result  in  greater  flexibility  than  is  available  under  the 
existing  system. 

The main  elements of  simplification  concern  the various stages of programming  and  are 
as  follows: 

The  plans 

Of  the  five  instruments  under  which  Objective  5(a)  assistance  is  currently 
provided, the two concerning aid for processing and marketing require the Member 
States  to  draw  up  two  sectoral  plans  and  result  in  the  adoption  of  two  sectoral 
CSFs. 

Under  the  system  proposed  by  the Commission, there would  be one plan  and  one 
CSF  to  cover  all  Objective  5(a)  assistance.  The  sectoral  plans  will  be 
discontinued.  Furthermore, the content of an Objective  5(a) plan would be simpler 
than  that  of  the  present  sectoral  plans. 

Consideration  of  aid  schemes  proposed  for  Community  part-financing 

Under the current procedure, the Commission  considers the aid schemes proposed 
for  Community  part-financing  in two stages: first the draft  national  rules and then 
the  final  text  of  the  rules. 

The  Commission  is  proposing  that  in  future  the  aid  schemes  will  be  considered 
only  once, when  the  CSF  is  approved. 

The  forms  of  assistance 

At  present  assistance  is  financed: 

in the case of aid granted  at the level  of the holdings, by the repayment  each 
year  of  part  of  the  public  expenditure  disbursed  during  the  previous  year; 

in  the  case  of  aid  to  processing  and  marketing  firms,  by  the  part-financing 
of  operational  programmes. 

The Commission  will  leave the Member  States to  choose  the forms  of  assistance. 
For  those  Member  States  which  so  wish,  there  could  be  a  single  operational 
programme  covering  all  Objective  5(a)  assistance  for  the  period  1994-99. 
Furthermore,  those Member  States which  so wish  will  be  able  to  submit the  plan 
and  the programme  in  a single  document. 

The  content  of  applications  for  assistance 

Assistance  to  processing  and  marketing  firms  is  currently  covered  by  two  very 
detailed  operational  programmes,  in many  cases composed  of  individual  projects. 
Over  recent  years,  this  has  led  to  the  submission  of  almost  60  operational 
programmes  per  year,  each  for  an  average  amount  of  only  a  few  million  ecus. 

In  future,  the  structure  of  these  operational  programmes  will  be  aligned  on  the 
much  more  simple  structure  of  the  other  Objectives  (description  of  measures, 
conditions  for  eligibility,  financing  plan).  This  should  result  in  one  programme 
per Member  State  covering  the whole  of  the period  1994-99. 

The  Commission  considers  that  the  Member  States  are  familiar  with  the  measures  as 
such under Objective  5(a) and the related conditions for eligibility  and that these should 
therefore  be  retained.  Hence  the  proposed  changes  (see  next  paragraph)  have 
deliberately  been  kept to the  absolute  minimum. 

The new system will  introduce into the financial procedures a flexibility  which does not 
exist  at present.  As  soon  as  Community  appropriations  for  Objective  5(a)  have  been 
brought together under a single Objective 5(a) Community support framework, the rules 
in  force  will  permit  any  transfers  between  instruments  which  prove  necessary  in  the 
course  of  implementation  following  the  simple  procedures  which  already  apply  to  the 
other Objectives  (in  general,  a decision  by  the Monitoring  Committee).  Similarly,  the 
system  of  advances  will  in  future  apply  to  all  Objective  5(a)  instruments  whereas 
hitherto  it has applied to only  some of them. 

7.  This proposal  also  comprises  some  technical  adjustments,  as  well  as a limited  number 

of changes to Regulations  (EEC) Nos 2328/91  and 866/90. 

The proposed  amendments  to Regulation  (EEC)  No  2328/91  are intended  to take  into 
account the reform  of  the common  agricultural  policy: 

(a) 

(b) 

(c) 

all  the  provisions  concerning  set-aside,  extensification,  forestry  measures  on 
agricultural holdings  and the environment are deleted because these measures are 
now financed by the Guarantee Section  of the EAGGF (amendments of  Article 1 
and Titles I, II, VII  and VIII of  Regulation  (EEC) 2328/91); 

the new provisions governing the common organization of the beef/veal  market lay 
down  stocking  rates  which,  for  the  sake  of  consistency,  should  also  apply  to 
investment  aid (amendment of  Article 6); 

greater flexibility  is proposed for investments which are not aimed at agricultural 
production,  in order to facilitate  diversification  of farmers' activities  (amendment 
of  Article  12); 

(d)  aid  for  the  management  of  agricultural  holdings  should  be  extended  to  include 

administrative  support for  farmers  (amendment of  Article  16); 

(e) 

there  has  been  a  new  definition  of  the  areas  in  which  durum  wheat  has  been 
traditionally  produced  within  the framework  of  the  common  organization  of  the 
market; in order to  avoid a shift  in  where this crop is  grown,  it is undesirable to 
continue the compensatory  allowance  for  natural  handicaps which  could hitherto 
be granted outside the traditional  areas of production (amendment of Article  19); 

8.  There  is  also  reason  to extend  certain  special  provisions  adopted  for  the application  of 
investment  aid to  agricultural  holdings  in Portugal  and the former  German  Democratic 
Republic  (GDR)  where the situation  as regards agricultural  structures  has not  changed 
sufficiently  since  their integration  into the  Community. 

It is therefore  proposed  (Articles  37  and 38): 

(a) 

in the case of Portugal, to continue to authorize more flexible  conditions under the 
aid schemes  for  agricultural  holdings  as regards: 

fixing  the  reference  income, 
aid to group-operated  holdings, 
granting  of  the  compensatory  allowance, 

which have also been extended through the derogations adopted by the Council in 
its Regulation  (EEC) No  1600/92  of  15 June  1992  introducing  specific  measures 
for  the  Azores  and Madeira  relating  to certain  agricultural  products(2) (Poseima); 

(b) 

in  the  case  of  the  former  GDR, to  extend  for  three years  the  derogations  still  in 
force  pursuant to  Regulation  (EEC) No  2328/91. 

9.  Finally, with regard to Regulation (EEC) No  866/90, it is proposed explicitly to include 
organic  farming  products among the priorities for  assistance (amendment of  Article  10 
of  Regulation  (EEC) No  866/90), to remove fishery and aquaculture products from the 
scope  of  the  Regulation  following  the  creation  of  the  FIFG {Financial  Instrument  for 
Fisheries Guidance) but to include products similar to agricultural products which cannot 
be  taken  into  account  at present  because  they  are not  listed  in  Annex  II  to  the  EEC 
Treaty,  for  example  perfume  plants  (amendment  of  Article  12). 

10.  In  conclusion,  the  draft  amendments  to  Regulations  (EEC)  Nos  2328/91,  866/90, 
1360/78  and  1035/72  follow  the  Commission  guidelines  adopted  at  the  time  of  its 
proposals on the framework  regulation and the coordinating regulation of the Structural 
Funds,  as well  as the EAGGF  Guidance  Section  Regulation. 

Their essential  features  are the  restriction  to the  strict minimum  of  the  amendments to 
the Objective  5(a)  measures and conditions  for  eligibility,  a very  considerable  effort  to 
simplify  procedures  and greater flexibility.  It should therefore prove possible to carry 
out this  exercise  rapidly  and concisely. 

(2)  OJNoL  173, 27.6.1992, p.  1. 

Proposal  for  a 
COUNCIL  REGULATION  (EEC) 

amending  Regulations  (EEC)  Nos  2328/91,  866/90,  1360/78,  1035/72 
and  449/69  with  a  view  to  expediting  the  adjustment  of 
production,  processing  and  marketing  structures  as  part 
of  the  reform  of  the  common  agricultural  policy 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

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(1), 

Having  regard  to  the opinion  of  the  European  Parliament^, 

Having  regard  to  the  opinion  of  the  Economic  and  Social  Committee(3), 

Whereas  Council  Regulation  (EEC)  No  2052/88  of  24  June  1988  on  the  tasks  of  the 
Structural  Funds  and  their  effectiveness  and  on  coordination  of  their  activities  between 
themselves  and  with  the operations  of  the European  Investment  Bank  and  the  other  existing 
financial  instruments(4)  has  been  amended  by  Regulation  (EEC)  No  ..../..(5),  particularly  as 
regards  the  programming  of  assistance  from  the  Funds; 

Whereas Council Regulation (EEC) No 4253/88 of  19 December  1988 laying down provisions 
for  implementing  Regulation  (EEC)  No  2052/88  as  regards  coordination  of  the  activities  of 
the  different  Structural  Funds  between  themselves  and  with  the  operations  of the  European 
Investment  Bank  and  the  other  existing  financial  instrumenta}  has  been  amended  by 
Regulation  (EEC) No  ..../..(7), particularly  as regards the programming  of  assistance from  the 
Funds; 

Whereas Council Regulation (EEC) No 4256/88 of  19 December  1988 laying down provisions 
for  implementing  Regulation  (EEC) No  2052/88  as regards the EAGGF  Guidance  Section(8) 
has  been  amended  by  Regulation  (EEC)  No  ..../..(9),  particularly  in  order  better  to  integrate 
measures  under  Objective  5(a)  into  the  programming  of  assistance  from  the  Funds  and 
because  certain  measures  are now  being  financed  by  the  EAGGF  Guarantee  Section; 

(,)  OJ  No 
(2)  OJ  No 
(3)  OJ  No 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

OJNo  185,  15.7.1988, p. 9. 
OJNo 
O J N oL  374,  31.12.1988, p.  1. 
O J N oL 
OJ  No  L  374,  31.12.1988, p. 25. 
O J N oL 

12) 

Whereas  under  Article  2  of  Council  Regulation  (EEC)  No  ..../..(10)  the  Council  must,  by 
31  December  1993, decide on the adjustment of common measures financed  under Article  2 
of  Regulation  (EEC)  No  4256/88  with  a  view  to  attaining  the  objectives  laid  down  in 
Regulation  (EEC)  No  2052/88,  and  in  accordance  with  the  rules,  particularly  those  on 
programming, laid down in Regulations (EEC) Nos 2052/88  and 4253/88, and in accordance 
with  Regulation  (EEC)  No  4256/88; 

Whereas steps should be taken to ensure that the measures envisaged are compatible with the 
reform  of  the  common  agricultural  policy  and  that,  in  particular,  they  do  not  result  in  an 
overall  increase  in  production  in sectors  which  are already  in surplus; 

Whereas, in this regard, the aid to agricultural holdings should be adjusted with regard to the 
set-aside  of  arable  land and the fixing of  a stocking  rate for  beef  cattle on holdings; 

Whereas special  rules have been adopted for the application of investment aid on agricultural 
holdings in Portugal and in the territory of the former German Democratic Republic; whereas 
the  situation  as  regards  agricultural  structures  in  these  parts  of  the  Community  has  not 
evolved  sufficiently;  whereas,  therefore,  certain  of  the  provisions  intended  to  improve  the 
situation  can justifiably  be extended  in an appropriate form; 

Whereas  the  rates  for  part-financing  by  the  Community  are  now  fixed  as  part  of  the 
programming  of  assistance  from  the  Structural  Funds; whereas, however,  in the  case  of  aid 
for the adjustment of production structures, the procedure applicable until 31  December  1992 
to the fixing of these rates for regions not covered by Objective  1 should be applied until the 
Community support frameworks including such aid take effect  in accordance with Article  11 
of  Regulation  (EEC)  No  2052/88; 

Whereas Council Regulation (EEC) No 2328/91 of  15 July  1991 on improving the  efficiency 
of  agricultural  structures01},  as  last  amended  by  Regulation  (EEC)  No  870/93°2),  Council 
Regulation  (EEC) No  866/90 of  29 March  1990 on improving the processing  and marketing 
conditions  for  agricultural  products(13),  as  amended  by  Regulation  (EEC)  No  3577/90°4% 
Council  Regulation  (EEC) No  1360/78 of  19 June  1978 on producer groups and associations 
thereof°5),  as last amended by Regulation (EEC) No 746/9306), Council Regulation (EEC) No 
1035/72 of  18 May  1972 on the common organization of the market in fruit and vegetables0 ^ 
as last amended by Regulation  (EEC) No  746/93, and Council  Regulation  (EEC) No  449/69 
of  11 March  1969  on the  reimbursement of  aid granted by  Member  States to  organizations 
of  fruit  and vegetable producers0 8), 

(io: 

(12 

( B: 

(M: 

(is: 

de: 

07 

(is: 

OJNoL 
OJNoL  218,  6.8.1991,  p.  1. 
OJNoL  91,  15.4.1993, p.  10. 
OJNoL  91, 6.4.1990,  p.  1. 
OJ No  L 353,  17.12.1990,  p. 23. 
OJNoL  166, 23.6.1978,  p.  1. 
OJNoL  77,  31.3.1993, p.  14. 
OJNoL  118,  20.5.1972,  p.  1. 
OJNoL  61,  12.3.1969, p. 2. 

HAS ADOPTED  THIS  REGULATION: 

Article  1 

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

1. 

In Article  1, 

(a)  paragraph  2, first subparagraph,  is amended  as follows: 

(i) 

the  introductory  text  is  replaced by the  following. 

"2. 

In  accordance  with  Articles  5(2)(b)  and  11  of  Regulation  (EEC)  No 
2052/88, the EAGGF, hereinafter  called 'the Fund', Guidance Section, 
shall,  acting  under  the  common  measure  referred  to  in  paragraph  1, 
provide  part-financing  for national  aid schemes  concerning:" 

(ii)  points  (a), (f)  and (g)  are deleted; 

(iii)  point  (h) is  replaced by  the  following: 

"(h)  vocational  training measures connected  with the measures referred  to 

in points (b),  (c)  and (d)." 

(b) 

the second  subparagraph  is deleted. 

(c) 

the following  paragraph 3  is added: 

"3.  The  common  measure  referred  to  in  paragraph  1  shall  be  the  subject  of 
programming  under  the  conditions  referred  to  in  Article  11  of  Regulation 
(EEC) No  2052/88. 

Applicants shall be entitled to aid as provided for in this Regulation only  if 
all  the  conditions  of  this  Regulation  are  met  and  the  financial  resources 
provided  by  the  programming  defined 
in  Article  29  have  not  been 
exhausted." 

2.  Articles 2,  3  and 4  are deleted. 

3.  The second  subparagraph  of  Article  5(1) is  deleted. 

4.  Article  6  is  amended  as follows: 

(a)  The following  is added to the first indent of paragraph  1 : "and, where necessary, 

with  Community  quality  standards," 

(b)  The first five subparagraphs of  paragraph 4  are replaced by the  following: 

10 

"Aid may not be granted for investments  as referred to in paragraph  1 which have 
the effect  of  increasing  pig places. 

The  place  required  by  one  breeding  sow  shall  correspond  to  6.5  fattening  pig 
places." 

(c)  Paragraph  5 is  replaced  by  the  following: 

"5.  The aid referred to in paragraph  1 and granted for investments relating to the 
beef  sector  shall  be  restricted  to livestock  enterprises  where the  beef-cattle 
stocking  rate  does  not,  in  the final year  of  the  plan,  exceed  the  following 
number of  livestock  units (LU) per hectare of  forage  area used for  feeding 
the  cattle:  3,  2.5  and  2 LU/ha  for  the  plans  ending  respectively  in  1994, 
1995  and  1996  or later. 

The  LU  conversion  table  is given  in  Annex I". 

5.  The fifth subparagraph  of  Article  7(2)  is deleted. 

6. 

In the second subparagraph of Article  9(4) the second and third indents are replaced by 
the  following: 

"- 

three  times  the  amount  per  holding  referred  to  in  the  first  subparagraph  of 
Article 7(2)," 

7.  The following  indent  is  inserted  after  the last  indent of  Article  12(5): 

"- 

aid  for  investments  in  agricultural  holdings  not  relating  to  field  crops  or 
stockfarming," 

8.  The heading  of  Title  V  is  replaced  by  the  following: 

"Title V 

Other measures  to  assist  agricultural  holdings". 

9.  Article  16 is  amended  as follows: 

(a)  Paragraphs  1 and 2 are replaced  by the  following: 

"1.  Member States may, on request, grant aid to agricultural associations for the 
purpose  of  creating  or  developing  services  to  assist  farm  management  and 
which  is to help  cover  their management  costs. 

2. 

The aid referred to in paragraph  1 shall  be granted in respect of the work of 
staff  responsible  for  providing  individual  assistance  in  the  technical, 
economic, financial and administrative management of agricultural holdings." 

11 

(b)  Paragraph  5  is  replaced  by  the  following: 

"5.  Member  States shall fix the amount of the aid  referred  to in paragraph  1 per 
member  of  staff  employed  on  a  full-time  basis  on  the  work  specified  in 
paragraph  2.  This  amount  shall  be  spread  over  the  first  five  years  of  each 
member  of  staffs  employment;  it  may  be  spread  degressively  over  this 
period.  The maximum  eligible  total of  the aid shall  be ECU  54  000 for  each 
member  of  staff." 

(c) 

In  paragraph  6: 

(i) 

(ii) 

in  the  first  subparagraph,  the  words  "farm  management  services"  are 
replaced  by  "services  to  assist  farm  management", 
in  the  second  subparagraph,  the  figure  "501.4"  is  replaced  by  "750". 

10.  Article  18  is  amended  as  follows: 

(a)  The  words  "retirement  pension"  in  the  first  subparagraph  of  paragraph  1 and  in 

paragraph  2  are  replaced  by  "retirement  or  early-retirement  pension". 

(b) 

In  paragraph  2,  the  word  "reimbursement"  is replaced  by  "part-financing". 

11.  Article  19(1)  is  amended  as  follows: 

(i) 
(ii) 

the  first  indent  of  (b)(i)  is  deleted; 
the  second  sentence  of  (c)  is  deleted. 

12.  Articles  21  to  27  are  deleted. 

13.  Tn  the  first  subparagraph  of  Article  28(1),  the  words  "Articles  3  and  5  to  16"  are 

replaced  by  "Articles  5 to  16". 

14.  Article  29  is  replaced  by  the  following: 

"Article  29 

1.  Measures  under  this  Regulation  shall  be  included  in  the  plans  drawn  up  and 
presented  by  the  Member  States  in  accordance  with  Article  11(1)  and  (2)  of 
Regulation  (EEC)  No  2052/88  and  Articles  5,  6  and  7  of  Regulation  (EEC)  No 
4253/88. 

2.  Measures  under  Articles  5  to  11,  13  to  20  and  28  of  this  Regulation  shall  be 
included  in  the  Community  support  frameworks  drawn  up  in  accordance  with 
Article  11(3) of Regulation  (EEC) No 2052/88 and Articles  8 and 9 of  Regulation 
(EEC)  No  4253/88  and  approved  by  Commission  decision  in  accordance  with 
Article  10 of  Regulation  (EEC)  No 4253/88." 

12 

15.  Article  30  is  replaced by  the  following: 

"Article  30 

1.  Member  States  shall  forward  the  following  with  the  plans  referred  to  in 

Article 29(1): 

(a) 

an  aid  application  presented  in  accordance  with  Article  14(1)  and  (2)  of 
Regulation  (EEC)  No  4253/88  relating  to  the  measures  referred  to  in 
Article  29(2)  and  aid  under  Council  Directives  72/159/EEC*  and 
72/160/EEC"; 

(b) 

all laws, regulations or administrative provisions concerning  aid schemes to 
implement  the  measures  provided  for  in  Article  29(2)  as  well  as  in 
Article  12. 

2. 

The  Commission  shall  examine  all  the provisions  referred  to  in paragraph  1 and 
shall  decide  on  the  grant  of  assistance  from  the  Fund  in  accordance  with 
Article  14(3)  and (4) of  Regulation  (EEC) No  4253/88. 

O J N oL  96, 23.4.1972,  p.  1. 

* 
**  OJ No  L 96,  23.4.1972, p. 9." 

16.  Articles  31  and 32  are deleted. 

17.  Article  33  is  replaced by  the  following: 

"Article 33 

1.  Assistance  shall  be  paid  in  accordance  with  Article  21  of  Regulation  (EEC)  No 
4253/88;  however,  payment  of  the  balance  shall  be  subject  to  the  conditions 
referred  to  in  paragraph  4  of  that  Article  and  based  on  a  statement  of  the 
expenditure  incurred  by  the  Member  States  during  a  calendar  year,  which  is 
submitted to the  Commission  before  1 July of  the' following  year. 

2. 

The Commission  shall adopt detailed rules for the application of this Article after 
consulting  the  Committee  referred  to  in  Article  29  of  Regulation  (EEC)  No 
4253/88." 

18.  Article 35  is replaced by the  following: 

"Article 35 

1. 

This Regulation shall be without prejudice to the right of Member States to adopt 
additional aid measures in the areas covered by this Regulation, with the exception 
of  those  covered  by  Articles  5  to  9,  11,  12(2),  (3)  and  (4)  and  17  on  terms 
differing  from  those laid down therein, or in amounts  exceeding  the ceilings  laid 
down therein, provided that Articles  92, 93 and 94 of the Treaty are not infringed. 

13 

2. 

Articles  92, 93 and 94 of the Treaty, with the exception of Article  92(2), shall not 
apply  to the aid measures governed by  Articles  5 to 9,  11,  12(2), (3)  and (4) and 
17." 

19.  Article  36  is  replaced  by  the  following: 

"Article  36 

Checks  shall  be  carried  out  in  accordance  with  Article  23  of  Regulation  (EEC)  No 
4253/88." 

20.  Article  37  is  replaced  by  the  following: 

"Article  37 

The following  special  provisions  shall  apply  to Portugal  until  31  December  1995: 

(a)  The  Commission  may,  when  taking  decisions  as  referred  to  in  Article 29(2), 
authorize  Portugal,  for  the  purposes  of  fixing  the  reference  income  within  the 
meaning  of  Article  5(3),  to  apply  a  correction  coefficient  to  the  average  gross 
income  of  non-agricultural  workers  throughout  Portuguese  territory.  This 
coefficient  may not exceed: 

- 1.7 for 1993, 
- 1.5 for 1994, 
- 1.3 for 1995. 

(b)  The  Commission  may,  when  taking  decisions  as  referred  to  in  Article  29(2), 
authorize Portugal to apply Article  9(1) to (4) to group-operated holdings of which 
only  two-thirds of the members  meet the condition  referred to  in Article  5(1 )(a). 
At the same time, the Commission shall determine the specific terms on which aid 
is to be granted to  such group-operated holdings. 

(c)  The compensatory  allowance  within the meaning of Article  17 may be granted to 
farmers who farm at least  1 ha of utilized agricultural area in mainland Portugal." 

21.  Article  38  is  amended  as follows: 

(a) 

In paragraph  1 : 

(i)  points  (a), (b)  and (c)  are deleted; 

(ii)  the  following  is  added to  (f): 

"The ceiling  laid down  in the second indent of  the second subparagraph  of 
Article  9(4)  shall  be increased to three times that volume of investment per 
holding"; 

(iii)  point  (h) is deleted. 

14 

(b)  Paragraph  2 is  replaced  by  the  following: 

"2.  Points  (d)  to  (g)  of  paragraph  1 shall  apply  until  31  December  1996." 

22.  Article  39  is  deleted. 

Regulation  (EEC)  No  866/90  is  amended  as  follows: 

Article  2 

1.  The  end  of  the  last  sentence  of  Article  1(1)  from  the  word  "namely"  is  deleted. 

2.  The  title  of  Title  I  is  replaced  by  the  following: 

"TITLE  I 

Programming" 

3.  Article  2  is  replaced  by  the  following: 

"Article  2 

Plans  and  Community  support  frameworks 

1. 

The common  measure referred  to in Article  1 shall be the subject of  programming 
under  the  conditions  referred  to  in  Article  11 of  Regulation  (EEC)  No  2052/88. 

2.  Measures  under  this  Regulation  shall  be  included  in  the  plans  drawn  up  and 
presented  by  the  Member  States  in  accordance  with  Article  11(1)  of  Regulation 
(EEC)  No  2052/88  and  Articles  5, 6  and  7 of  Regulation  (EEC)  No  4253/88. 

3. 

Investments  under this Regulation shall be financed on the basis of the Community 
support  frameworks  referred  to in  Article  11(3) of  Regulation  (EEC) No  2052/88 
and  Articles  8  and  9  of  Regulation  (EEC)  No  4253/88  and  approved  by 
Commission  decision  in  accordance  with  Article  10  of  Regulation  (EEC)  No 
4253/88." 

4.  Articles  3 to  7 are  deleted. 

5.  Article  8(1)  is replaced  by  the  following: 

"1. 

Investments eligible for assistance from  the Funds under this Regulation shall meet 
selection criteria fixing priorities and indicating investments which may not receive 
Community  financing." 

6.  Articles  9  and  10 are  replaced  by  the  following: 

15 

"Article  9 

Forms  of  assistance 

The  Fund  shall  provide  assistance  in  the  implementation  of  the  measure  which  is  the 
subject  of  this  Regulation  by  means  of: 

(a) 

the part-financing  of operational programmes within the meaning of Article  5(2)(a) 
of  Regulation  (EEC)  No  2052/88 

or 

(b) 

the provision  of global  grants  within  the meaning of  Article  5(2)(c) of  Regulation 
(EEC)  No  2052/88. 

Article  10 

Applications  for  aid 

Member  States  shall  forward  the  following  with  the  plans  referred  to  in  Article  2(2): 

(a) 

(b) 

an aid application presented in accordance with Article  14(1) and (2) of Regulation 
(EEC)  No  4253/88; 

all  laws,  regulations  or  administrative  provisions  adopted  to  implement  the 
common  measure  defined  in  Article  1 of  this  Regulation." 

7.  The  following  is  added  to  Article  11(2): 

", in accordance with Council Regulation  (EEC) No 2092/91 of 24 June  1991 on  organic 
production  of  agricultural  products  and  indications  referring  thereto  on  agricultural 
products  and  foodstuffs*. 

O J N oL  198, 22.7.1991, p.  1." 

8.  Article  12(2)  is replaced  by  the  following: 

"2. 

Investments  under this Regulation  shall concern the products  listed  in Annex II  to 
the Treaty, to the  exclusion  of those  concerning  fishery  and aquaculture  products. 
However,  investments  concerning  products  falling  within  CN  codes  4502,  4503 
and  4504  shall  also be  allowed. 

The  Commission  may  accept  investments  concerning  other  products  provided: 

aid  recipients  have  direct  contractual  links  with  producers  of  the  basic 
agricultural  products  or 
the products  concerned  are similar to those listed  in Annex  II to the Treaty." 

16 

9.  The  third  indent  of  Article  13 is  deleted. 

10.  Article  14 is  deleted. 

11. 

In  Article  15: 

(a) 

paragraph  1 is  replaced  by  the  following: 

"1.  The  Commission  shall  decide  on  the  grant  of  assistance  from  the  Fund  in 

accordance  with  Article  14 of  Regulation  (EEC)  No 4253/88." 

(b)  paragraph  3  is  deleted. 

12.  In Article  16(3) the words, "investments selected by the Commission for assistance  from 

the  Fund"  are  replaced  by  "investments  eligible  for  assistance  from  the  Fund". 

13.  Article  18 is  replaced  by  the  following: 

"Article  18 

Checks 

Checks  shall  be  carried  out  in  accordance  with  Article  23  of  Regulation  (EEC)  No 
4253/88." 

14.  Articles  19,  19a and  20  and  22  are  deleted. 

Article  3 

Regulation  (EEC)  No  1360/78  is  amended  as  follows: 

1.  Article  12  is replaced  by  the  following: 

"Article  12 

1. 

2. 

The  set  of  measures  provided  for  in  this  Regulation  shall  constitute  a  common 
measure  within  the  meaning  of  Article  2(1)  of  Council  Regulation  (EEC)  No 
4256/88*. 

The  common  measure  referred  to  in  paragraph  1  shall  be  the  subject  of 
programming  under the conditions referred  to in Article  11 of Council  Regulation 
(EEC)  No 2052/88**. 

Applicants  shall  be entitled to aid as provided for in this Regulation  only  if all  the 
conditions  of  this Regulation  are  met  and the  financial  resources  provided  by  the 
programming  defined  in  Article  14 have  not  been  exhausted. 

*  OJ No  L  374, 31.12.1988, p. 25. 
**  OJ  No  L  185,  15.7.1988, p.  9." 

17 

2.  Article  14  is  replaced  by  the  following: 

"Article  14 

1.  Measures  under  this  Regulation  shall  be  included  in  the  plans  drawn  up  and 
presented  by  the  Member  States  in  accordance  with  Article  11(1)  and  (2)  of 
Regulation  (EEC)  No  2052/88  and  Articles  5,  6  and  7  of  Council  Regulation 
(EEC)  No 4253/88*. 

2.  Measures under Article  10(1), (2), (2a) and (3) of this Regulation shall be included 
in the Community support frameworks drawn up in accordance with Article  11(3) 
of  Regulation  (EEC)  No  2052/88  and Articles  8  and  9  of  Regulation  (EEC)  No 
4253/88  and approved by  Commission  decision  in accordance  with Article  10 of 
Regulation  (EEC)  No  4253/88. 

*  OJNoL  374,  31.12.1988,  p.  1." 

3.  The following  Article  14a is inserted: 

"Article  14a 

1.  Member  States  shall  forward  the  following  with  the  plans  referred  to  in 

Article  14(1): 

(a) 

an  aid  application  presented  in  accordance  with  Article  14(1)  and  (2)  of 
Regulation  (EEC)  No  4253/88  relating  to  the  measures  referred  to  in 
Article  14(2)  and aid  under Council  Regulation  (EEC)  No 389/82*; 

(b)  all  laws, regulations or administrative provisions concerning  aid schemes to 

implement  the measures provided for in Article  14(2). 

2. 

The Commission  shall  examine  all  the provisions  referred  to  in paragraph  1 and 
shall  decide  on  the  grant  of  assistance  from  the  Fund  in  accordance  with 
Article  14(3)  and (4)  of  Regulation  (EEC) No  4253/88. 

* 

OJNoL  51, 23.2.1982,  p.  1." 

4.  Article  15  is  replaced  by the  following: 

"Article  15 

1.  Assistance  shall  be  paid  in  accordance  with  Article  21  of  Regulation  (EEC) 
No  4253/88;  however,  payment  of  the  balance  shall  be  subject  to  the  conditions 
referred  to  in  paragraph 4  of  that  Article  and  based  on  a  statement  of  the 
expenditure  incurred  by  the  Member  States  during  a  calendar  year,  which  is 
submitted  to the  Commission  before  1 July of  the following  year. 

18 

2. 

The  Commission  shall  adopt  detailed  rules  for  the  application  of  this Article  after 
consulting  the  Committee  referred  to  in  Article  29  of  Regulation  (EEC)  No 
4253/88." 

5.  Article  19 is  deleted. 

Article  4 

Regulation  (EEC)  No  1035/72  is  amended  as  follows: 

1.  The  second  subparagraph  of  Article  14b(2)  is  deleted. 

2.  Article  36  is  replaced  by  the  following: 

"Article  36 

1. 

2. 

The  provisions  laid  down  by  regulation  on  the  financing  of  the  common 
agricultural  policy  shall  apply  to  the  market  in  the  products  referred  to  in 
Article  1. 

Aid  granted  by  the  Member  States  in  accordance  with  Article  14(1),  (2)  and  (3) 
and Article  14b(l) and (2) shall  constitute a common  measure  within  the meaning 
of  Article  2(1) of  Council  Regulation  (EEC) No 4256/88*. The  common  measure 
shall be the subject  of programming  under the conditions referred  to in Article  11 
of  Council  Regulation  (EEC)  No 2052/88**. 

Applicants  shall  be  entitled  to  the aid  referred  to in the  first  subparagraph  only  if 
all  the  conditions  of  this Regulation  are met  and  the  financial  resources  provided 
by  the  programming  defined  in  Article  36a  of  this  Regulation  have  not  been 
exhausted. 

O J N oL  374,  31.12.1988, p. 25. 
OJNo  L  185,  15.7.1988, p.  9." 

3.  The  following  Articles  36a,  36b  and  36c  are  inserted: 

"Article  36a 

1.  Measures  under  Article  36(2)  of  this  Regulation  shall  be  included  in  the  plans 
drawn  up  and  presented  by  the  Member  States  in  accordance  with  Article  11(1) 
and  (2)  of  Regulation  (EEC)  No  2052/88  and  Articles  5,  6  and  7  of  Regulation 
(EEC)  No 4253/88*. 

2.  Measures  under  Article  36(2)  of  this  Regulation  shall  be  included  in  the 
Community  support  frameworks  drawn  up  in  accordance  with  Article  11(3)  of 
Regulation  (EEC)  No  2052/88  and  Articles  8  and  9  of  Regulation  (EEC)  No 
4253/88  and  approved  by  Commission  decision  in  accordance  with  Article  10 of 
Regulation  (EEC)  No  4253/88. 

19 

Article  36b 

1.  Member  States  shall  forward  the  following  with  the  plans  referred  to  in 

Article  36a(l): 

(a) 

an  aid  application  presented  in  accordance  with  Article  14(1)  and  (2)  of 
Regulation  (EEC)  No  4253/88  relating  to  the  measures  referred  to  in 
Article  36a(2); 

(b)  all  laws, regulations or administrative provisions concerning  aid schemes to 

implement the measures  provided  for  in  Article  36a(2). 

2. 

The  Commission  shall  examine  all  the  provisions  referred  to  in paragraph  1 and 
shall  decide  on  the  grant  of  assistance  from  the  Fund  in  accordance  with 
Article  14(3)  and (4)  of  Regulation  (EEC) No  4253/88. 

Article  36c 

1.  Assistance  shall  be  paid  in  accordance  with  Article  21  of  Regulation  (EEC)  No 
4253/88;  however,  payment  of  the  balance  shall  be  subject  to  the  conditions 
referred  to  in  paragraph  4  of  that  Article  and  based  on  a  statement  of  the 
expenditure  incurred  by  the  Member  States  during  a  calendar  year,  which  is 
submitted to the Commission  before  1 July of the following  year. 

2. 

The Commission  shall  adopt detailed rules for the application of this Article after 
consulting  the  Committee  referred  to  in  Article 29  of  Regulation  (EEC)  No 
4253/88. 

OJNoL  374,  31.12.1988,  p.  1." 

Articles  1 and 7 of  Regulation  (EEC)  No  449/69  are repealed. 

Article 5 

Article  6 

This Regulation  shall  enter into force  on the seventh  day following  that of  its publication  in 
the Official  Journal  of  the European  Communities. 

It shall  apply  from  1 January  1994. 

1.  However, the procedure for fixing Community part-financing rates as provided for in the 
first  subparagraph  of  Article  31(2)  of  Regulation  (EEC)  No  2328/91  prior  to  its 
amendment  by  this  Regulation  shall  continue  to  apply  throughout  the  territory  of  the 
Community, including the regions not covered by Objective  1 as defined  in Article  1 of 
Regulation  (EEC) No  2052/88, until the Community  support frameworks  referred to in 
Article  11(3) of  Regulation  (EEC)  No  2052/88  take  effect. 

20 

2.  Articles  3 and 21  to 24  of Regulation  (EEC) No  2328/91  shall  continue to apply  under 
the  terms  laid  down  in  Article  11  of  Council  Regulation  (EEC)  No  78/92  of 
30 June  1992  on  agricultural  production  methods  compatible  with  the  requirements 
of  the protection  of  the environment  and the  maintenance  of  the countryside09). 

3.  Articles  25,  26  and 27  of  Regulation  (EEC)  No  2328/91  shall  continue  to apply  under 
the terms laid  down  in Article  8 of  Council  Regulation  (EEC) No  2080/92  of  30 June 
1992  instituting  a Community  aid  scheme  for  forestry  measures  in agriculture(20). 

Point 20  of  Article  I  shall  apply  from  1 September  1992. 

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

Done  at Brussels, 

For the Council 
The President 

°9)  OJ No  L 215, 30.7.1992, p. 85. 
(20)  OJ No  L 215,  30.7.1992,  p. 96. 

21 

W O R K I NG 

D O C U M E NT 

Objective  No  5(a)  of  the  reform  of  the  Structural  Funds 

(1994  -  1999) 

Proposal  for  a 
COUNCIL  REGULATION  (EEC) 

amending  Regulations  (EEC)  Nos  2328/91,  866/90,  1360/78,  1035/72 
and  449/69  with  a view  to  expediting  the  adjustment  of 
production,  processing  and  marketing  structures  as part 
of  the  reform  of  the  common  agricultural  policy 

22 

PROPOSAL FOR AMENDED  COUNCIL REGULATION  (EEC)  No  2328/91n 

on improving  the efficiency  of  agricultoraLstnictures 

Article  1 

With  a  view  to  expediting  the  adjustment  of  agricultural  structures  in  the  Community 
pursuant  to  Objective  5(a)  as  set  out  in  Article  1 of  Regulation  (EEC)  No  2052/88,  a 
common  measure  within  the  meaning  of  Article  2(1)  of Regulation  (EEC)  No 4256/88, 
to  be  implemented  by  the  Member  States,  is  hereby  introduced  with  the  following 
objectives: 

(i) 
(ii) 

(iii) 

to  help  restore  the  balance  between  production  and  market  capacity; 
to  help  improve  the  efficiency  of  farms  by  developing  and  reorganizing  their 
structures  and  by  promoting  supplementary  activities; 
to maintain  a viable agricultural  community  and thus help develop the social  fabric 
of rural areas by ensuring a fair  standard of living for  farmers  and by offsetting  the 
effects  of  natural  handicaps  in  mountain  areas  and  less-favoured  areas; 

(iv)  to  contribute  to  the  safeguarding  of  the  environment  and  the  preservation  of  the 

countryside,  including  the  long-term  conservation  of  natural  farming  resources. 

In  accordance  with  Articles  5(2)(b)  and  11  of  Regulation  (EEC)  No  2052/88,  the 
EAGGF. hereinafter  called 'the Fund', Guidance Section, shall  acting under the common 
measure  referred  to  in  paragraph  1.  provide  part-financing  for  national  aid  schemes 
concerning: 

[a) 

...1 (set-aside:  replaced  by  Regulations  1765/92  and  2078/92) 

b)  measures  relating  to  investments  in  agricultural  holdings,  in  particular  to  reduce 
production  costs,  to  improve  the  living  and  working  conditions  of  farmers,  to 
promote the  diversification  of  their  activities, including the marketing  of  products 
on  the  farm,  and  to  preserve  and  improve  the natural  environment; 

c)  measures  to  encourage  the  setting-up  of  young  farmers; 

d) 

back-up  measures  to  assist  agricultural  holdings,  involving  the  introduction  of 
accounts  and  the  launching  of  groups,  services  and  facilities  for  the  benefit  of 
several  holdings; 

e)  measures to support farm  incomes and to maintain viable agricultural  communities 
in  mountain  or  less-favoured  areas  by  means  of  agricultural  aid  for  offsetting 
natural  handicaps; 

[fl 

...)  (environment  premium:  replaced  by  Regulation  2078/92); 

[g) 

...]  (forestry  measures;  replaced  by  Regulation  2080/92) 

nText  combining  the  existing  Regulation  and  the  proposed  amendments  underlined.  The 
parts  between  square  brackets  \  1 are  deleted. 

23 

h) 

vocational  training measures connected with the measures referred to in points (b), 
(c)  and (d). 

[  ...  ] (method  of  financing  set-aside:  no  longer  relevant) 

The  common  measure  referred  to  in  paragraph  1 shall  be  the  subiect  of  programming 
under the  conditions  referred  to  in  Article  11 of  Regulation  (EEC)  No  2052/88. 

Applicants  shall  be  entitled  to  aid  as  provided  for  in  this  Regulation  only  if  all  the 
conditions  of  this  Regulation  are  met  and  the  financial  resources  provided  by  the 
programming  defined  in  Article  29  of  this  Regulation  have not been  exhausted. 

[ 
TITLE I 
Set-aside  of  arable land 
Article  2 
(replaced  by  Regulations  1765/92  and  2078/92) 

] 

TITLE II 
[ 
Extensification  of  production 

] 
(replaced  by  Regulation  2078/92) 

Article  3 

[ 

TITLE III 
Conversion  of  production 
] 
Article  4 
(deleted  because  inapplicable) 

TITLE IV 
System  of  aid for  investments  in  agricultural  holdings 

Article 5 

In order to contribute to the improvement of agricultural  incomes and of living, working 
and production conditions on agricultural  holdings, Member States shall  pursuant to the 
common  measure  referred  to  in  Article  1,  introduce  a  system  of  investment  aid  to 
agricultural  holdings  where the farmer: 

a) 

practises  farming  as his main  occupation. 

Member States may, however,  apply  the aid scheme referred to  in Articles  5 to  9 
to farmers who, while they do not practise farming as their main occupation, derive 
at least 50 % of their total income from farming, forestry, tourism or craft activities 
of  activities  for  maintaining  the  countryside  which  qualify  for  public  aid, carried 
out on the holding, provided that the proportion  of  income  deriving  directly  from 
farming on the holding  is not  less  than 25% of the farmer's total  income  and that 
offfarm  activities do not account for more than half the farmer's total working time; 

(4) 

24 

b) 

possesses  adequate occupational  skill  and competence; 

c) 

submits  a  plan  for  materially  improving  his  holding.  This  plan  must  show  by 
means of  specific  calculations that the investments  are justified  from the point  of 
view  of  the  situation  of  the  holding  and its economy  and that implementation  of 
the plan will  bring about a lasting  improvement of that situation, and in particular 
of  the  labour  income  per  man-work  unit  (MWU)  employed  on the  holding  or  is 
necessary  for  maintaining  the present  level  of  labour  income  per MWU. 

d) 

undertakes to  keep  simplified  accounts  entailing  at least: 

the recording of the revenue and expenditure of the holding, with supporting 
documents, 
the drawing up of  an annual balance sheet of the assets and liabilities of the 
holding. 

[  ...  ] (temporary  derogation  in  respect of  accounts:  expired  on  31  December  1991.) 

The  aid system  referred  to  in paragraph  1 shall  be limited to  agricultural  holdings: 

where  labour  income  per MWU  is  less  than the  reference  income  referred  to  in 
paragraph 3, 
where  improvement  plans,  as  referred  to  in  paragraph  1(c),  do not  provide  for  a 
labour income  in excess  of  120% of  such reference  income. 

Member  States  may  restrict  the  aid  system  referred  to  in  paragraph  1 to  agricultural 
holdings  which  have  a family  character. 

Member  States  shall  fix  the  reference  income  referred  to  in  paragraph  2  at a level  not 
exceeding  the  average  gross wage  of  non-agricultural  workers in the region. 

The improvement  plan referred to  in paragraph  1 shall  contain  at least: 

a description  of  the  initial  situation, 
a description  of  the situation  upon  completion  of  the plan,  drawn up on the basis 
of  an estimative  budget, 
an indication  of  the measures  and in particular the investments planned. 

Member  States  shall,  for  the  purposes  of  this  Regulation,  define  what  is  meant  by  the 
expression  'farmer practising  farming  as his  main occupation'. 

This definition  shall,  in  the  case  of  a natural  person, include  at least  the  condition  that 
the proportion of income derived from the agricultural holding must be 50% or more of 
the farmer's total  income  and that the working time devoted to  work  unconnected  with 
the holding  must be  less than half  of  the farmer's total  working time. 

On the basis of the criteria referred to in the foregoing  subparagraph, the Member States 
shall  define  what  is  meant  by  this  same  expression  in  the  case  of  persons  other  than 
natural persons. 

25 

6. 

In addition, Member States shall lay down the criteria for assessing the occupational  skill 
and  competence  of  the  farmer,  by  reference  to  the  standard  of  agricultural  training 
received  and/or to  a minimum  period of  farming  experience. 

1. 

The aid  scheme  referred  to  in  Article  5 may  be applicable  to  investments  relating to: 

Article  6 

the  qualitative  improvement  and  conversion  of  production  in  line  with  market 
requirements,  and, where necessary,  with  Community  quality  standards, 
the diversification  of  activities on the holding,  in particular by the introduction  of 
tourism  and  craft  activities  or  the  manufacture  and  sale  of  farm  produce  on  the 
farm, 
the  adaptation  of  the  holding  for  the  purposes  of  reducing  production  costs  and 
saving  energy, 
the improvement  of  living  and working  conditions, 
the improvement of the hygiene conditions of livestock  enterprises and compliance 
with Community animal welfare standards, or, failing these, national standards until 
Community  standards are adopted, 
the protection  and improvement  of  the environment. 

2. 

The investment aid referred to in paragraph  1 may be refused or limited where the  effect 
of  the  investments  concerned  is  to  increase  the  holding's  production  of  products  for 
which  no  normal  market outlets  can be found. 

The  Council,  acting  by  a qualified  majority  on  a proposal  from  the  Commission,  shall 
adopt  the  necessary  measures  and shall  define  the products  falling  within  the  meaning 
of  the preceding  subparagraph. 

3. 

Except  where  decisions  subsequently  taken pursuant to  paragraph  2 provide  otherwise, 
the aid provided for in paragraph  1 shall not be granted in respect of investments relating 
to milk production the effect  of  which is to exceed the reference  quantity  determined in 
accordance  with  rules  on  the  additional  levy  for  milk  and  milk  products,  unless  an 
additional  reference  quantity  has  been  granted  beforehand  as  provided  for  in  Article 
4(l)(c) of Council Regulation (EEC) No 857/84 of 31 March  1984 adopting general rules 
for the application of the levy  referred to in Article 5(c) of Regulation (EEC) No  804/68 
in the milk and milk products sector, as last amended by Regulation (EEC) No  1630/91, 
or obtained by  means of  a transfer in  accordance  with Article  7(1)  of that Regulation. 

In  such  cases,  the granting  of  aid  shall  be  subject  to  the  condition  that the  investment 
does not serve to  raise the number of  dairy  cows to more than 40  per MWU and more 
than 60  per holding  or,  where  the holding  has  more  than  1.5  MWU,  does  not  serve  to 
raise the number of  dairy  cows  by  more than  15%. 

On  a proposal  from  the  Commission,  the  Council  shall  adopt,  at the  latest  six  months 
after the expiry of Regulation  (EEC) No  857/84, the conditions to which the granting of 
aid to investments entailing an increase in milk production shall be subject after the said 
Regulation  expires. 

26 

4.  Aid  may  not  be  granted  for  investments  as  referred  to  in  paragraph  1 which  have  the 

effect  of  increasing  pig places. 

The place  required  by  one  breeding  sow  shall  correspond  to  6.5  fattening  pig places. 

Furthermore, where  an improvement plan provides for investment in the pig production 
sector,  the  granting  of  aid  in  respect  of  such  an  investment  shall  be  subject  tp  the 
condition  that,  upon  completion  of  the  plan,  at  least  the  equivalent  of  35%  of  the 
quantity  of  feed  consumed  by  pigs  can be produced on the holding. 

5.  Aid as provided for in paragraph  1 and granted for investments relating to the beef sector 
shall  be  restricted  to  livestock  enterprises  where the beef-cattle  stocking  rate does not, 
in  the final year  of  the  plan,  exceed  the  following  number of  livestock  units (LU)  per 
hectare  of  forage  area  used  for  feeding  the  cattle:  3,  2.5  and  2 LU/ha  for  the  plans 
ending  respectively  in  1994,  1995  and  1996 or later. 

The LU  conversion  table  is  given  in  Annex I. 

6. 

The investment  aid referred to in paragraph  1 may not be granted in the egg and poultry 
sector. 

Article  7 

1. 

The system of  aid for investments  referred to in Article  6(1) shall  cover aid in the form 
of  capital  grants  or  the  equivalent  thereof  in  interest  rate  subsidies  or  deferred 
repayments, or a combination  of  these,  in respect of the  investments necessary  to carry 
out the  improvement  plan but  with  the  exception  of  expenditure  incurred in buying; 

- land, 
-  livestock  in the form  of  pigs, poultry  and calves  for  slaughter. 

With regard to the purchase of  livestock,  only  the first purchase for  which  provision  is 
made  in the  improvement  plan  may  be covered. 

The system of aid may also cover guarantee for loans contracted and the interest thereon, 
where the  security  or personal  guarantee provided  is  insufficient. 

2.  Capital  grants  as provided  for  in  paragraph  1 may  apply  to  a total  investment  of  ECU 
60  743  per MWU or ECU  121  486  per holding.  Member  States  may  set these  limits at 
lower  levels. 

The value of the aid provided for in paragraph  1 expressed as a percentage of the amount 
of  the  investment,  shall  not  exceed: 

a) 

In the case  of  the areas  referred  to  in Article  2  and 3  of  Directive  75  /268/EEC: 
-  45% for  fixed  assets, 
-  30% for  other types  of  investments; 

27 

b)  in the  case of  other areas: 

-  35% for  fixed  assets, 
-  20% for other types of  investment. 

Where the aid is not granted in the form of a capital grant, Member States shall draw up 
each year a table showing the value of the aid, expressed as a percentage of the amount 
of the investment,  taking into consideration  the average annual  rate of  interests on non-
subsidized loans, the value of the interest subsidy, the term of the loans, deferred interest 
subsidies  and  repayments  and  any  other  factor  used  for  expressing  the  aid  in  grant 
equivalent terms. 

The  Council,  acting  by  a qualified  majority  on  a proposal  from  the  Commission,  may 
authorize  a  Member  State,  for  a  specified  period,  to  grant  aid  exceeding  the  level 
specified  in the preceding  subparagraph, if  such  action  is warranted by the situation on 
the capital  market in that Member State. 

[  ...  ]  (10% increase  in  aid:  expired on  31  December  1991) 

Article 8 

Member States may  grant the aid referred to in Article  7 to farmers who, after  completing an 
improvement plan, continue to fulfil  the conditions laid down in Article 5(1), provided that the 
conditions laid down in Article 6 are met. However, the number of plans per beneficiary  which 
may  be  accepted  during  a  six-year  period  shall  be  limited  to  two  and  the  total  investment 
which may be considered  in connection  with the reimbursement of  aid pursuant to Article 33 
shall  be limited to ECU  60  743  per MWU  and ECU  121  486  per holding  for that period. 

Article  9 

1.  An improvement plan within the meaning of Article 5(1 )(c)  may relate to an individual 
holding or to a number of holdings grouped together with a view to the merger of all or 
part of  these holdings. 

2. 

In the case of  group-operated holdings, the improvement  plan shall  concern the group-
operated  holding  and  any  parts  of  holdings  which  continue  to  be  run  by  the  group 
members. 

3.  Member States may  grant the  aid referred to  in  Article  78  to group-operated holdings 

if  all  the members of  such holdings  satisfy  the conditions  laid down in  Article  5(1). 

4. 

Except for aquaculture, the ceilings laid down in Articles 7(2) and 8 may be multiplied 
by the number of holdings belonging to the group. The ceilings laid down in Article 6(3) 
and (4) may only be multiplied by the number of such holdings in the case of a holding 
resulting  from  a complete  merger. 

However,  these  ceilings  may not  exceed: 

120 cows, 
three  times  the  amount  per  holding  referred  to  in  the  first  subparagraph  of 
Article  7(2). 

28 

per group-operated holding, including any parts of holdings which continue to be run by 
the group members. 

5. 

In accordance with the procedure laid down in Article 30, the Commission may authorize 
a Member  State to grant the aid referred to in Article  7, under the conditions  stipulated 
in paragraph 4  above, to  agricultural  cooperatives  whose sole objective  is to manage an 
agricultural  holding.  At  the  same  time,  the  Commission  shall  lay  down  specific 
conditions  for the granting  of  aid to  such  cooperatives,  as  well  as the  conditions  under 
which  and the limits within  which  the volume of  investment  provided for  in paragraph 
4  may  be  exceeded. 

6.  Member States shall  lay  down  the conditions  to be met by  group-operated  holdings,  in 

particular: 

- their legal  form, 
-  their minimum  duration, which  must not be  less than six years, 
- the formation  of  their capital, 
-  the participation  of  members  in  management. 

Article  10 

1.  Member  States  may  grant  setting-up  aid  to  young  farmers  under  40  years  of  age  on 

condition that: 

the  young  farmer  sets  up  as  head  of  the  holding,  which  means  that  he  assumes 
civil  and tax liability  or joint  liability  for the  management of  the holding  and the 
social  status  accorded  in  the Member  State  concerned to  self-employed  heads  of 
holding, 
the young farmer sets up as a farmer practising farming as his main occupation or 
begins,  after  having  set up as  a part-time  farmer, to  practise  farming  as his main 
occupation, 
the occupational  qualifications of the young farmer are at a satisfactory  level at the 
time of  his  setting  up or at the latest two  years thereafter,  and 
the  holding  requires  a volume  of  work  equivalent  to  at  least  one  MWU,  which 
must be  achieved  at the latest two years  after  the setting up. 

2. 

The setting-up  aid may  comprise: 

a) 

b) 

a single  premium  of  a maximum  eligible  amount of  ECU  10 000.  The  premium 
may  be paid over  a period not  exceeding  five  years.  Member  States  may  replace 
the premium by  an equivalent  interest  subsidy; 

an  interest  subsidy  on  loans  taken  out  with  a view  to  covering  the  costs  arising 
from  setting up. 

The rate of interest subsidy shall be not more than 5% for a period of  15 years; the 
capitalized  value  of  the  interest  subsidy  may  not  exceed  ECU  10 000. 

Member  States  may  pay,  in  the  form  of  a  grant,  the  equivalent  of  the  interest 
subsidy  resulting  from  the volume  and duration of  the  loans taken out. 

29 

3.  Member  States  shall  define: 

the  conditions  governing  setting up, 
specific  conditions  in  a  situation  where  a young  farmer  does  not  set  up  as  sole 
head of the holding,  in particular where he sets up as a member of  an association 
or cooperative whose principal object is the management of an agricultural holding; 
these conditions must be equivalent to those required for setting up as a sole head 
of  a holding, 
the  agricultural  training  which  a young  farmer  must have  had  at the time of  his 
setting up, or must achieve within  two years thereafter,  in order for the premium 
to  be eligible  under the Fund, 
the  conditions  under  which  it  will  be  recognized  that  the  volume  of  work 
equivalent  to  at least one  MWU  has been achieved  within  the maximum  time  of 
two years  after  setting up, 
the  amount of  the  setting-up aid. 

Article  11 

Member States may grant young farmers under 40 years of  age additional  aid for  investments 
to  be  made  under  a  material  improvement  plan  within  the  meaning  of  Article  5(1 )(c), 
amounting to a maximum of 25% of the aid granted pursuant to Article 7(2), provided that the 
young farmer submits the improvement plan within five years of setting up and provided that 
he possesses  the occupational  qualifications  referred to  in Article  10(1). 

Article  12 

1.  Aid  for  investments  in  agricultural  holdings  satisfying  the  conditions  laid  down  in 
Articles  5 and 9 which exceeds the amounts laid down in Article  7(2)  increased, where 
appropriate, by the aid referred to in Article  11, are hereby prohibited, with the exception 
of aid: 

for the construction  of  farm buildings, 
for the relocation  of  farm  buildings  where this is  done in the public  interest, 
for  land improvement  operations, 
for  investments  for the purposes  of  environmental  protection  and improvement, 

provided  that the  granting  of  these  higher  amounts  does  not  infringe  the  provisions  of 
Article  5 of  this Regulation  and Articles  92 to  94 of  the Treaty. 

2.  Where  Member  States  grant  aid  for  investments  in  holdings  which  do  not  satisfy  the 
conditions laid down in Article  5, such aid must be at least one-quarter less than the aid 
granted pursuant to  Article  7,  with  the  exception  of  aid for: 

energy  saving, 
land  improvement, 

which  may  reach the  amount  laid down  in  Article  7(2). 

Such aid may be granted for a total  investment of ECU 60 743 per MWU and ECU  121 
486  per holding  for  a period of  six years. 

30 

3.  Notwithstanding  paragraph  2, Member  States may  grant temporary  aid for  investments 
in small  agricultural  holdings  which  do  not  satisfy  the  conditions  laid down  in  Article 
5(1). 

This temporary aid may be granted for investments up to ECU 25 252 only and may not 
be granted on terms more favourable  than those  provided  for  in  Article  7,  plus, where 
appropriate, the  aid provided  for  in  Article  11. 

4.  Aid for investments in holdings shall be prohibited where such investments do not satisfy 
the conditions  laid down  in  Article  5 and where Article  7  does not permit the granting 
of  such aid. 

However,  the aid referred to in  paragraph 2  and 3 may be granted: 

for  investments  in the sector of  geese  and ducks for the production  of  foie  gras, 
for the purchase of cattle which may be encouraged under Article 7(1) even where 
it is not the first purchase. 

Moreover, as regards the holdings referred to in paragraphs 2 and 3, the number of dairy 
cows  referred to  in Article  6(3)  shall  be 40 per MWU  and per holding. 

5. 

The prohibitions  and limitations  provided for  in this Article  shall  not apply to: 

aid for  land purchase, 
subsidized operating loans the term of which does not exceed one marketing year, 
aid for the purchase of  male breeding stock, 
securities for loans contracted, including  interest, 
aid for investment in the protection and improvement of the environment, provided 
that it  does not entail  an increase  in production, 
measures  in  respect  of  investments  for  the  purpose  of  improving  hygienic 
conditions or of compliance with Community animal welfare standards where these 
are stricter from Community standards, provided that these investments do not give 
rise to  an increase  in production, 
aid  for  investments  in  agricultural  holdings  not  relating  to  field  crops  or 
stockfarming. 

provided that they  are granted in  accordance  with Articles 92  to  94  of the Treaty. 

TITLE V 

Other measures to  assist  agricultural  holdings 

Article  13 

1.  Member States may introduce a scheme to encourage the introduction of  accounting on 

agricultural  holdings. 

31 

The  scheme  shall  involve  granting  to  farmers  whose  main  occupation  is  farming,  and 
who  apply  therefore,  an  aid  spread  over  at  least  the  first  four  years  during  which 
management accounts are kept on their holdings, on the understanding that accounts will 
be kept  for  at least  four years. 

Member  States  will  determine the  amount  of  such  aid within  a range  of  ECU  700  to 1 
050. 

2. 

The keeping  of  accounts  referred  to  in paragraph  1 shall: 

a) 

comprise: 

the preparation  of  annual  opening  and closing  valuations, 
the systematic and regular recording over the accounting year of the various 

transactions  in  cash or in  kind concerning  the holding; 

b) 

conclude  with  the presentation  each year  of: 

a description  of  the general  characteristics  of  the  holding,  and in particular 
of  the inputs, 
a  detailed  balance  sheet  (assets  and  liabilities)  and  trading  account 
(expenditure  and income), 
the necessary  data, including  in particular the earned income per MWU and 
the  farmer's income,  for  assessing  the efficiency  of  the  management  of the 
holding  as  a  whole  and  the  profitability  of  the  main  enterprises  of  the 
holding. 

3.  Where  a holding  is chosen  by bodies  appointed by Member  States for the  collection  of 
accountancy data for the purposes of information and scientific study, in particular within 
the framework  of the Community accountancy  data network, and the farmer is in receipt 
of  aid  as  provided  for  in  paragraph  1,  he  must  undertake  to  make  available  to  those 
bodies,  under conditions  of  anonymity,  the accountancy  data relating to his holding. 

Article  14 

Member States may, on request, grant to recognized groups which have as their object: 

mutual  aid between holdings, including the use of new technologies  and practices 
for  safeguarding  and improving the environment and preserving  the countryside, 
the  introduction  of  alternative  farming practices, 
the more rational joint  use of  agricultural means of  production, 
the operation  of  a group holding, 

and which  are formed on or after  1 April  1985, launching  aid as a contribution  to their 
operating  costs  during not more than the first five years  after  their formation. 

32 

Member  States shall  fix  the amount of such  aid by reference  to the number of  members 
and to the activity  performed jointly,  with the maximum  amount being ECU  15 044 per 
recognized group. 

In  addition,  Member  States  shall  determine  the  legal  form  of  such  groups  and  the 
provisions  governing  cooperation  between  members. 

Article  15 

1.  Member  States  may,  on  request,  grant  launching  aid  to  contribute  to  covering  the 
management costs of agricultural associations having as their object the provision of farm 
relief  services. 

2. 

In order to be  eligible  for  the  aid  referred  to  in paragraph  1, the relief  service  must  be 
approved  by  the Member  States  and employ  at least one  full-time  worker  who  is  fully 
qualified  for  the work  he  is  called  upon to perform. 

3.  Member  States shall  lay  down the conditions for the approval  of services  as referred to 

in paragraph  1, and in particular: 

their  legal  form, 
the provisions  governing  their management  and accounting  practices, 
the  type  of  replacement  which  may  comprise  the  replacement  of  the  farmer,  his 
spouse  or an adult worker, 
their  minimum  duration, which  must not be less than  10 years, 
the minimum  number of  affiliated  farmers. 

4.  Member  States  shall  fix  the  amount  of  the  launching  aid  referred  to  in  paragraph  1, 
which  shall  not exceed ECU  12 035  per relief worker employed  on a full-time  basis in 
the work referred to in paragraph 2. This amount shall be spread over the first five years 
of  each  worker's employment;  it  may  be  spread degressively  over that period. 

Article  16 

1.  Member  States may, on request, grant aid to agricultural  associations for the purpose of 
creating  or  developing  services  to  assist  farm  management  and which  is  to  help  cover 
their  management costs. 

2. 

3. 

The  aid  referred  to  in  paragraph  1  shall  be  granted  in  respect  of  the  work  of  staff 
responsible  for providing  individual  assistance in the technical, economic  financial  and 
administrative  management  of  agricultural  holdings. 

To be eligible for the aid referred to in paragraph  1, farm management services must be 
approved by the Member State and must employ on a full-time basis at least one member 
of  staff  qualified  for  the  work  specified  in paragraph 2. 

4  Member  States shall  lay  down the  conditions for the approval  of  services  as referred to 

in paragraph  1, and in particular: 

their legal  form, 
the provisions  governing  their management  and accounting practices, 
their  minimum  duration,  which  must not be less than  10 years, 
the  minimum  number of  affiliated  farmers. 

33 

5.  Member States shall  fix  the amount of the aid referred to in paragraph  1 per member of 
staff  employed  on  a full-time  basis on the work  specified  in paragraph  2.  This amount 
shall  be spread  over  the first five years  of  each  member of  staffs  employment;  it may 
be spread degressively  over this period.  The maximum total  eligible  amount of the aid 
shall  be ECU  54  000  for  each  member of  staff. 

6.  Member States may replace the system of launching aid provided for in paragraph 5 with 
a system of farm management aid for farmers practising farming as their main occupation 
who  make  use of  the  services  to  assist farm  management  referred  to in paragraph  1. 

In this event, Member States shall  set the aid up to a maximum of ECU  750 per holding, 
to be spread over  at least  two years. 

TITLE VI 
Specific  measures to  assist  mountain  and hill  farming 
and farming  in  certain  less-favoured  areas 

Article  17 

1. 

2. 

In regions which appear on the Community list of less-favoured farming areas within the 
meaning  of  Directive  75/268/EEC,  Member  States  may  grant  an  annual  compensatory 
allowance  to  assist  farming  activities,  such  allowance  to  be  fixed  according  to  the 
permanent natural handicaps described in Article 3 of that Directive within the limits and 
subject to the conditions  laid down  in Articles  18 and  19 of  this Regulation. 

The granting of such a compensatory allowance which exceeds those limits or which fails 
to satisfy  the conditions laid down in Articles  18 and  19 shall  be prohibited in the areas 
appearing on the  list  referred  to  in paragraph  1. 

Article  18 

1.  Where  Member  States  grant  a  compensatory  allowance,  farmers  with  at  least  three 
hectares  of  usable  agricultural  area  who  undertake  to  pursue  a  farming  activity  in 
accordance  with  the  aims  of  Article  1 of  Directive  75/268/EEC  for  at least  five  years 
from  the  first  payment  of  a  compensatory  allowance  shall  be  eligible  for  such  an 
allowance;  where  a  farmer  gives  up  farming  and  the  area  concerned  continues  to  be 
worked,  he  may  be  released  from  such  undertaking;  he  shall  be  released  from  such 
undertaking  in cases  of  force  majeure,  for  example  where his property  is  compulsorily 
purchased  or  purchased  in  the  public  interest;  in  addition,  farmers  in  receipt  of  a 
retirement  or early-retirement pension  shall  be  released  from  such  undertaking. 

However,  in  the  Mezzogiorno,  including  the  islands,  in  the  regions  in  the  French 
overseas  departments  and in the  Greek,  Portuguese  and Spanish  regions, the  minimum 
utilized  agricultural  area per holding  shall  be two hectares. 

2. 

Expenditure  in  respect  of  the  compensatory  allowances  shall  not  be  eligible  for  part-
financing  by the Fund under Article  31 where the farmer is in receipt of a retirement or 
early-retirement pension. 

34 

Member  States  may  lay  down  additional  or  limiting  conditions  for  the  grant  of  the 
compensatory  allowance,  including  conditions  which  encourage  the  use  of  practices 
compatible  with  the  need  to  safeguard  the  environment  and  preserve  the  countryside. 

Article  19 

Member  States  shall  fix  the  amounts  of  the  compensatory  allowance  according  to  the 
severity of the permanent natural handicaps affecting  farming activities and having regard 
to  the  limits  set  out  below,  although  no  allowance  may  be  less  than  ECU  20.3  per  LU 
or,  where  appropriate,  per  hectare  in  the  areas  referred  to  in  Article  3  of  Directive 
75/268/EEC: 

a) 

in the  case of  farms  keeping  cattle, sheep, goats or  equines  the allowance  shall  be 
calculated  in  relation  to  livestock  numbers.  The  allowance  may  not  exceed  ECU 
102 per LU. The total  amount  of the allowance granted  may non  exceed ECU  102 
per  hectare  of  total  forage  area of  the holding.  A  conversion  table  for  expressing 
cattle,  equines,  sheep  and  goats  as  LUs  is given  in  Annex  1. 

However, in less-favoured  agricultural areas where the permanent natural handicaps 
are  serious  enough  to justify  it,  the  local  allowance  granted  may  be  increased  to 
ECU  121.5  per  LU  and  per  hectare. 

The  allowance  shall  be granted  in  respect  of  not  more  than  1.4 LU per  hectare  of 
the  total  forage  area  of  the  holding. 

Cows  whose  milk  is  intended  for  marketing  may  be  taken  into  consideration  for 
the  calculation  of the compensatory  allowance only  in the  areas  defined  in  Article 
3(3)  of  Directive  75/268/EEC,  and  in the  areas  defined  in  Article  3(4)  and  (5)  of 
that  Directive  where  dairying  forms  an  important  part  of  farming  activity. 

When Member States exercise this right in the areas defined  in Article 3(4) and (5) 
of the  abovementioned  Directive, the number of  dairy  cows per  eligible farmer  to 
be taken into consideration  for  the calculation  of the compensatory  allowance  may 
not  exceed  20; 

b) 

In  the  case  of  production  other  than  of  cattle,  equines,  sheep  and  goats,  the 
allowance shall be proportional  to the area farmed,  less that devoted to the  feeding 
of  livestock  and: 

(i) 

in all less favoured  agricultural  areas, less that given over to wheat growing: 

[-  ...]  (durum  wheat  outside  traditional  areas:  deleted) 

except areas given  over to the growing  of  common  wheat,  in areas the 
average yield  from  which  does not  exceed  2.5 tonnes per hectare  used 
for  this  product; 

(ii) 

in  all  less-favoured  agricultural  areas,  less  any  areas  which  are  full 
plantations of apple, pear or peach trees exceeding 0.5  hectares per holding; 

35 

(iii) 

in the less-favoured  agricultural  areas  referred  to  in  Article  3(4)  and (5)  of 
Directive  75/268/EEC,  less  any  areas  assigned  to  the  production  of  wine, 
apart from vineyards the yield from which does not exceed 20 hectolitres per 
hectare, or the production  of  sugarbeet  or intensive crops. 

The  allowance  may  not  exceed  ECU  102  per hectare.  However  in  less-favoured 
agricultural  areas in which the severity  of the permanent natural handicaps is great 
enough  so to justify,  the total  amount granted may be increased to ECU  121.5 per 
hectare; 

c)  Member States may vary the compensatory allowance on the basis of the economic 
situation  of  the  holding  and  of  the  income  of  the  farmer  qualifying  for  the 
compensatory  allowance.  [...  ] (variation related to protection of the environment: 
replaced  bv  Regulation  2978/92). 

2.  Member  States may  refrain  from  granting  the  compensatory  allowance  for  some  or all 

of  the types  of  production  which  may  qualify  under paragraph  1(b). 

3. 

1. 

The maximum  amount eligible  under the fund shall  be limited to the equivalents of  120 
units per holding, whether livestock  units (LU) or area units (ha); moreover, beyond the 
equivalent of the first 60 units, the maximum amount eligible  per LU or hectare shall be 
reduced  to half the  maximum  amount of  the  allowance  referred  to  in paragraph  1. 

Article  20 

In the areas referred to in Article  17(1), Member States may grant aid to joint investment 
schemes for fodder production, including the storage  and distribution of  fodder,  and for 
the improvement  and equipping  of  pastures  which  are farmed jointly  and, in  mountain 
areas,  to joint  or  individual  investment  in  water  points,  in  minor  roads  for  immediate 
access  to pastures, including  mountain pastures, and in shelters  for herds. 

However,  where  stock-breeding  constitutes  a peripheral  activity  in  these  areas, the  aid 
provided  for  in the first subparagraph  shall  be  extended  to  agricultural  activities  other 
than  stock-breeding. 

2.  Where  economically  justified,  the  work  referred  to  in paragraph  1 may  include  small-
scale  farm  water  supply  measures  compatible  with  protection  of  the  environment, 
including small-scale irrigation works, and the construction or repair of shelters necessary 
for  transhumance. 

3. 

The  amount  of  aid  as referred  to  in paragraph  1 which  is  eligible  for  financing  by  the 
Fund may  not  exceed  ECU  100 293  per joint  investment  project, ECU  500  per hectare 
of  pasture  improved  or equipped  and ECU  501.4  per hectare irrigated. 

36 

[ 

TITLE VII 
Environment  premium  in  sensitive  areas 
Articles  21  to  24 
] 
(replaced bv  Regulation  2078/92) 

[ 

TITLE VIII 
Forestry  measures 
Articles  25  to  27 
(replaced  bv  Regulation  2080/92) 

] 

TITLE IX 

Adjustment  of  vocational  training  to the  requirements 
of  modern  agriculture 

Article  28 

1. 

In so  far  as  no  provision  is  made  for  their  financing  in  Council  Regulation  (EEC)  No 
4255/88  of  19  December  1988  laying  down  provisions  for  implementing  Regulation 
(EEC) No 2052/88  as regards the European Social Fund, Member States may, in  regions 
where the need is apparent and with a view to the smooth implementation of the relevant 
measures, introduce a system of special  aid for the improvement of the agricultural  skills 
of  persons  covered  by  the  measures  referred  to  in  Articles  5  to  16  and young  farmers 
under 40 years of  age. 

This system  may  comprise: 

courses of basic and advanced vocational instruction or training for farmers, family 
helpers and agricultural workers who have passed the minimum school-leaving age 
and courses  of  additional  training  for  such persons,  intended to prepare  them  for 
qualitative  reorientation  of  production;  the  application  of  production  practices 
compatible  with  protection  of  the  landscape  and  acquisition  of  skills  needed  to 
enable them to  manage their woodlands, 
courses of instruction or training for leaders and managers of producer groups and 
cooperatives,  where  this  is  necessary  to  improve  the  economic  organization  of 
producers  and  the  processing  and  marketing  of  agricultural  products  from  the 
region  concerned. 
the  courses of  further training  needed  to  achieve  the  level  of  vocational  training 
referred to  in Article  10 which  must be of  a minimum  length of  150 hours. 

2. 

The system  referred to in paragraph  1 shall  comprise aid: 

a) 

b) 

for  attendance  at courses  of  instruction  or training; 

for  the organization  and provision  of  courses of  instruction  and training. 

37 

3. 

The expenditure  incurred by Member States in granting the aid referred  to in paragraph 
2(a) and (b)  shall  be eligible  for  assistance  from  the Fund up to a maximum  amount  of 
ECU  7  020  per  person  completing  a course  of  instruction  or  training.  Of  this  amount, 
ECU 2 507 must have been given for further courses on reorientation of production, with 
regard to production practices compatible with landscape protection  and management of 
woodlands. 

The measures covered  by this Article shall  not include  courses of  instruction or training 
which form part of normal programmes or systems of agricultural education at secondary 
or higher  level. 

TITLE X 

General  and financial  provisions 

Article  29 

1.  Measures  under this Regulation  shall  be  included  in  the plans  drawn up  and presented 
by the Member States in accordance with Article  11(1) and (2) of Regulation  (EEC) No 
2052/88  and Articles  5 to  7 of  Regulation  (EEC) No  4253/88 

2.  Measures  under  Articles  5 to  11,  13 to  20  and  28  of  this Regulation  shall  be  included 
in  the  Community  support  frameworks  drawn  up  in  accordance  with  Article  11(3)  of 
Regulation (EEC) No 2052/88 and Articles  8 and 9 of Regulation (EEC) No 4253/8iTand 
approved  by  Commission  decision  in  accordance  with  Article  10 of  Regulation  (EEC) 
No  4253/88. 

Article  30 

1.  Member  States  shall  forward  the following  with  the plans  referred to  in  Article  29(1): 

a) 

b) 

aid  application  presented  in  accordance  with  Article  14(1)  and  (2)  of  Regulation 
(EEC)  No  4253/88  relating  to  the  measures  referred  to  in  Article  29(2)  and  aid 
under Directives  72/159/EEC  and 72/160/EEC; 

all  laws,  regulations  or  administrative  provisions  concerning  aid  schemes  to 
implement  the  measures provided  for  in Article 29(2)  as well  as in  Article  12. 

2. 

The  Commission  shall  examine  all  the  provisions  referred  to  in  paragraph  1 and  shall 
decide on the grant of assistance from the Fund in accordance with Article  14(3) and (4) 
of Regulation  (EEC)  No  4253/88. 

[Article  31] 
(deleted  on  account  of  programming) 

38 

[Article  32] 
(deleted  on  account  of  programming) 

Article  33 

1.  Assistance shall  be paid in accordance with Article  21 of Regulation (EEC) No 4253/88; 
however,  payment  of  the  balance  shall  be  subject  to  the  conditions  referred  to  in 
paragraph 4 of that Article  and based on a statement of the expenditure  incurred by the 
Member  States  during  a  calendar  year,  which  is  submitted  to  the  Commission  before 
1 July  of  the  following  year. 

2. 

The  Commission  shall  adopt  detailed  rules  for  the  application  of  this  Article  after 
consulting  the  Committee  referred  to  in Article  29  of  Regulation  (EEC)  No  4253/88. 

Article  34 

Member States may lay down additional  conditions as regards the implementation of the 
aid measures provided  for in this Regulation. 

Article  35 

1. 

This  Regulation  shall  be  without  prejudice  to  the  right  of  Member  States  to  adopt 
additional  aid  measures  in the  areas  covered  by  this Regulation,  with  the  exception  of 
those  covered  bv  Articles  5 to  9.  11,  12(2),(3)  and (4)  and  17 on  terms  differing  from 
those  laid  down  in  this  Regulation,  or  in  amounts  exceeding  the  ceilings  laid  down 
herein, provided  that Articles  92, 93  and 94  of  the Treaty  are not  infringed. 

2.  Articles  92. 93 and 94 of the Treaty, with the exception of Article  92(2). shall not apply 

to the  aid measures  governed  bv  Articles  5 to  9.  11,  12(2).(3)  and (4)  and  17. 

Article  36 

Checks  shall  be  carried  out  in  accordance  with  Article  23  of  Regulation  (EEC)  No 
4253/88. 

The following  special  provisions  shall  apply  to  Portugal  until  31  December  1995: 

Article  37 

39 

a) 

The  Commission  may,  when  taking  decisions  as  referred  to  in  Article  29(2), 
authorize  Portugal,  for  the  purposes  of  fixing  the  reference  income  within  the 
meaning  of  Article  5(3)^ to  apply  a  correction  coefficient  to  the  average  gross 
income  of  non-agricultural  workers  throughout  Portuguese  territory.  This 
coefficient  may  not exceed: 

- 1.7 for 1993. 
- 1.5 for 1994. 
- 1.3 for 1995. 

b) 

The  Commission  may,  when  taking  decisions  as  referred  to  in  Article  29(2), 
authorize Portugal to apply Article 9( 1 ) to (4) to group-operated holdings of which 
only  two-thirds  of  the  members  meet the  condition  referred  to  in  Article  5( 1 )(a). 

At the same time, the Commission shall determine the specific  terms on which aid 
is to be  granted to  such  group-operated holdings. 

c) 

The compensatory  allowance  within  the meaning ofArticle  17 may be granted to 
farmers who  farm  at least  1 ha of  utilized  agricultural  area in  mainland  Portugal. 

Article  38 

1. 

The  following  special  provisions  shall  apply  to  the  territory  of  the  former  German 
Democratic  Republic: 

[a), b)  and c)]  (set-aside:  provisions no  longer  apply) 

d)  When family  holdings  are being  set up: 

the condition  in the first indent of  Article  5(2)  shall  not apply, 
Germany  may  grant  the  aid  referred  to  in  Articles  10  and  11  to  farmers 
below the age of  55 years. However,  aid granted to farmers over the age  of 
40 years  is not  eligible  under the Fund. 

e) 

The conditions  in the  second  subparagraph  of  Article  6(3)  and the first indent  of 
Article  9(4)  shall  not  apply  to  aid  granted  in the  context  of  the  creation  of  new 
family holdings or the restructuring of cooperative holdings if the number of dairy 
cows on all the new or restructured holdings  does not exceed the number of dairy 
cows held previously  on the old holdings. 

If  the  Council  has  not  adopted,  by  31  December  1990,  the  arrangements  for 
applications  submitted  from  1  January  1991  for  investment  aid  in  the  pig 
production  sector,  the  conditions  in  Article  6(4)  and  the  second  indent  of  the 
second subparagraph of Article 9(4) referring to the number of pig places shall not 
apply  to  aid granted  in the  context of  the  creation of  new  family  holdings  or the 
restructuring of cooperative holdings if the number of pig places on all the new or 
restructured holdings does not exceed the number of pig places previously held on 
the old holdings. 

40 

f) 

The volume of investment referred to in the first subparagraph of Article 7(2) shall 
be ECU  140 000 per MWU and ECU 280  000 per holding. The ceiling  laid down 
in the second  indent of  Article  9(4)  shall  be  increased to three times that  volume 
of  investment  per holding. 

g) 

In the context of  the restructuring  of  cooperative  holdings,  Article  9(5)  shall  also 
apply  to  associations  which  do  not  adopt the legal  form  of  a cooperative. 

h) 

(provisions  concerning  less-favoured  areas:  expired  31.12.91) 

2. 

Paragraph  1(d) to  (g)  shall  apply  until  31  December  1996. 

[Article  39] 

(lapsed transitional  provisions  on  extensification  and the  environment) 

Article  40 

1.  Regulations  (EEC)  No  797/85  and (EEC)  No  1760/87  are hereby  repealed. 

2.  References to the Regulations repealed shall be construed as references to this Regulation 

and should  be  read in  accordance  with the  correlation  table in  Annex II. 

Article 41 

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. 

41 

PROPOSAL FOR AMENDED  COUNCIL REGULATION  (EEC)  No  866/90n 

Article  1 

Objectives  of  the  common  measure 

1.  A common  measure within the meaning of Article 2(1) of Regulation  (EEC) No 4256/88 
and  under  Objective  5(a),  as  defined  in  Article  1 of  Regulation  (EEC)  No  2052/88,  is 
hereby  introduced  with the aim of facilitating  the improvement and rationalization of the 
treatment, processing and marketing of agricultural products. This measure shall also help 
to  achieve  Objectives  1 and  5(b)as  set  out  in  the  said  Article  1, namely  promoting  the 
development  of  those  regions  in  which  development  is  lagging  behind  and  rural  areas. 

2. 

To  facilitate  the  improvement  and  rationalization  of  the  treatment,  processing  and 
marketing of agricultural products, the EAGGF Guidance Section, hereinafter  referred  to 
as the  'Fund',  may  contribute  to  the  financing  of  investments  which  satisfy  at  least  one 
of  the  following  criteria  : 

a) 

b) 

c) 

d) 

e) 

helping  to  guide  production  in  keeping  with  foreseeable  market  trends  or 
encouraging the development of new outlets for  agricultural products, in  particular 
through  facilitating  the  production  and  marketing  of  new  products  or  of  high-
quality  products,  including  organically-grown  products; 

relieving  the  intervention  mechanisms  of  the  market  organizations  by  furthering 
long-term  structural  improvement  where  this  is  needed; 

being  located  in regions  which  are faced  with  special  problems  in  adapting  to  the 
economic  consequences  of  developments  on  the  agricultural  markets, or  being  of 
benefit  to  such  regions; 

helping to improve or rationalize  marketing  channels or processing procedures  for 
agricultural  products; 

helping  to  improve  the  quality,  presentation  and  preparation  of  products  or 
encouraging  a better  use of  by-products, particularly  by  recycling  waste. 

^ e xt  combining  the  existing  Regulation  and  the  proposed  amendments  underlined.  The 
parts  between  square  brackets  [ ]  are  deleted. 

42 

TITLE I 

Programming 

Article  2 

Plans  and Community  support  frameworks 

1. 

The common  measure referred to in Article  1 shall  be the subject of programming under 
the  conditions  referred  to  in  Article  11 of  Regulation  (EEC)  No  2052/88. 

2.  Measures  under this  Regulation  shall  be  included  in  the  plans  drawn  up and presented 
by the Member States in accordance with Article  11(1) of Regulation (EEC) No  2052/88 
and Articles  5 to  7 of  Regulation  (EEC) No  4253/88. 

3. 

Investments  under  this  Regulation  shall  be  financed  on  the  basis  of  the  Community 
support  frameworks  referred  to  in  Article  11(3)  of  Regulation  (EEC)  No  2052/88  and 
Articles  8 and 9 of Regulation (EEC) No 4253/88 and approved by Commission decision 
in accordance  with  Article  10 of  Regulation  (EEC) No  4253/88. 

[Articles  3 to  7 are  deleted.] 

Article 8 

Selection  criteria 

1. 

2. 

3. 

Investments  eligible  for  assistance  from  the  Funds  under  this  Regulation  shall  meet 
selection  criteria  fixing  priorities  and  indicating  investments  which  may  not  receive 
Community financing. 

The  selection  criteria  shall  be  drawn  up  in  accordance  with  the  guidelines  of  the 
Community's policies,  particularly  the  common  agricultural  policy. 

The selection  criteria and, where applicable, amendments thereto shall be adopted by the 
Commission  in  accordance  with  the  procedure  laid  down  in  Article  29  of  Regulation 
(EEC)  No  4253/88.  The  Decision  shall  be  communicated  to  the  Member  States  and 
published  in the  Official  Journal  of  the European  Communities. 

43 

TITLE  II 

Operational  programmes  and  global  grants 

Article  9 

Forms  of  assistance 

The  Fund  shall  provide  assistance  in  the  implementation  of  the  measure  which  is  the 
subject  of  this  Regulation  by  means  of: 

a) 

b) 

the part-financing  of operational programmes within the meaning of Article  5(2)(a) 
of  Regulation  (EEC)  No  2052/88 
or 
the provision  of  global  grants within  the meaning of  Article  5(2)(c) of  Regulation 
(EEC)  No  2052/88. 

Article  10 

Applications  for  aid 

Member  States  shall  forward  the  following  with  the plans  referred  to  in  Article  2(2): 

a) 

b) 

an aid application presented in accordance with Article  14(1) and (2) of Regulation 
(EEC)  No  4253/88; 

all  laws,  regulations  or  administrative  provisions  adopted  to  implement  the 
common  measure  defined  in  Article  1 of  this  Regulation. 

Article  11 

Eligible  investments  and  expenditure 

1. 

To  be  eligible  for  aid  from  the  Fund  in  the  forms  listed  in  Article  9,  investments  must 
relate to: 

rationalizing or developing the preparation, preservation, treatment  and  processing 
of  agricultural  products  or  recycling  of  by-products  or  manufacturing  waste, 
improving  marketing  channels,  including  the transparency  of  price  formation, 
applying  new  processing  techniques,  including  the  development  of  new  products 
and  by-products,  or  opening  up  new  markets  and  innovative  investments, 
improving  product  quality. 

44 

2. 

Special  priority  may  be  given  to  investments  to  improve  the  marketing  structures  for 
agricultural products, particularly if such investments encourage the development of new 
outlets by facilitating  the marketing of new products or of high-quality  products having 
characteristics  which  comply  with  the  Community's  policy  on  foodstuffs,  including 
organically-grown  products,  in  accordance  with  Council  Regulation  (EEC) No  2092/91 
of 24 June  1991 on organic production of agricultural  products and indications  referring 
thereto on  agricultural  products  and  foodstuffs*. 

3. 

Eligible expenditure in respect of the investments referred to in paragraph  1 may include 

a) 

b) 

c) 

the construction  and acquisition of immovable property, with the exception of land 
purchase; 

new machinery  and equipment,  including  computer  software  and programmes; 

general  costs,  such  as  architects',  engineers'  and  consultants'  fees  and  feasibility 
studies, up to  a ceiling  of  12% of  the cost  referred  to  in (a)  and (b). 

Article  12 

Products  concerned  and participation  of  the  producers 

1. 

2. 

Investments  must  contribute  to  improving  the  situation  of  the  basic  agricultural 
production  sector in question; in particular, having  regard to the specific  nature of each 
sector, they  must guarantee the producers of  the basic products an adequate and lasting 
share in the  resulting  economic  benefits. 

Investments  under  this  Regulation  shall  concern  the  products listed  in  Annex  II  to  the 
Treaty, to the exclusion of those concerning fishery and aquaculture products.  However, 
investments concerning products falling  under CN codes 4502, 4503  and 4504 shall  also 
be allowed. 

The Commission  may  accept  investments  concerning  other products provided: 

aid recipients have direct contractual  links with producers of the basic  agricultural 
products or 
the products  concerned  are similar to those  listed  in  Annex  II to the Treaty. 

3. 

Sufficient  evidence  must be given  that the investments  will  be  profitable. 

OJNoL  198. 22.7.1991. p.  1. 

45 

Article  13 

Ineligible  investments 

The following  investments  shall  be  excluded : 

investments  at the retail  level, 
investments  in  the processing  or marketing  of  products  from  third countries, 
[  J 

- 

[Article  14  deleted] 

Article  15 

Decision  to  grant aid and budget  commitment 

1. 

2. 

The  Commission  shall  decide  on  the  grant  of  assistance  from  the  Fund  in  accordance 
with  Article  14 of  Regulation  (EEC) No  4253/88. 

The decision  referred to in paragraph  1 shall  be communicated to the authority  referred 
to in Article  14(1) of Regulation No 4253/88 or to the intermediary  referred to in Article 
16(1) of  that Regulation,  and to the Member  State  concerned. 

3- 

[  ] 

TITLE III 

Financial  and general  provisions 

Article  16 

Aid  rates and rules 

1.  Aid  from  the  Fund  may  not  exceed,  in  relation  to  the  eligible  costs  of  the  selected 

investments: 

a) 

50% in  the  Objective  1 regions  referred  to  in point  1 of  Article  1 of  Regulation 
(EEC)  No  2052/88; 

b) 

30% in other regions. 

2. 

3. 

Aid  from  the  Fund  shall  in  general  take  the  form  of  capital  grants.  If  other  forms  of 
assistance  are used, they  must not  exceed  the said capital  grant equivalent. 

The Member States concerned must undertake to participate in financing  the investments 
eligible  for  assistance  from  the Fund, to at least  5% of  the eligible  costs. 

46 

The financial  contribution by the recipients referred to in Article  14(1)  in relation to the 
eligible  costs  of  selected  investments  must be not  less  than : 

a) 

25% in  the  Objective  1 regions  referred  to  in  point  1 of  Article  1 of  Regulation 
(EEC)  No  2052/88; 

b) 

45% in other regions. 

Within the field of application of this Regulation, Member States may take aid measures 
which  are  subject  to  conditions  or  rules  concerning  granting  which  differ  from  those 
provided  for  in  this  Regulation,  or,  where  the  amounts  of  aid  exceed  the  ceilings 
specified  herein, on  condition  that  such  measures  comply  with  Articles  92  to  94  of  the 
Treaty. 

Article  17 

Procedures  for payment  of  the aid 

1. 

2. 

Payment  of  advances  or  balances  to  be  carried  out  in  accordance  with  Article  21  of 
Regulation  (EEC) No  4253/88  shall  be made to  the authority  designated  in  accordance 
with  Article  14(1)  of  the  said  Regulation  or,  where  applicable,  to  the  intermediary 
referred to in Article  16(1) of that Regulation, the Member States concerned being duly 
informed  of these payments. 

The  authority  or  intermediary  referred  to  in  paragraph  1  shall  check  the  supporting 
documents relating to the expenditure of  the final recipients and ensure that they  are in 
order before  paying the  Community  contribution.  It shall  also  make on-the-spot  checks 
to  verify  that  the  information  contained  in  the  application  corresponds  to  the  true 
situation. 

Payment  to  final  recipients  must  take  place  within  six  weeks  of  the  date  when  the 
application was lodged, provided that the application contains all the documents required 
to  establish  that the  expenditure  was justified. 

3. 

At the end of each quarter the authority or intermediary  referred to in paragraph  1 shall 
forward to the  Commission  a statement of  the payments made to recipients. 

4.  An implementation  report shall  be  sent to the Commission  every year. 

Article  18 

Checks 

Checks  shall  be  carried out  in  accordance  with  Article  23  of  Regulation  (EEC) No  4253/88. 

[Articles  19,  19a and 20  are deleted]  (transitional  provisions:  lapsed) 

47 

Article  21 

Transitional  provisions  for payments  in  respect  of  projects under 
Regulation  (EEC)  No  355/77 

1. 

From  1 January  1991, the payment of aid in respect of the projects referred to in Article 
10(3) of  Regulation  (EEC) No  4256/88  shall  be carried out in accordance  with  Articles 
17 and  18 of  this  Regulation. 

2.  Member States shall, not later than  15 December  1990, communicate to the Commission 

the  authorities they  have  designated  to pay  out the aid in question, 
the estimated  amount of  the payments for the first half of  1991, and 
the basis on  which  that estimate  was calculated. 

3.  On  receipt  of  the  duly  substantiated  communication,  the  Commission  shall  make  an 
initial  lump-sum payment; it will  make additional payments on the basis of the quarterly 
Statements referred to in Article  17(3), according to the estimated needs  communicated 
by the Member States. 

[Article  22  is  deleted]  (transitional  provisions:  lapsed) 

Article  23 

Application 

The Commission shall adopt detailed rules for the application of this Regulation in accordance 
with the procedure laid down  in Article  29 of  Regulation  (EEC) No  4253/88. 

Article  24 

Entry  into  force 

This Regulation  shall  enter into force  on  1 January  1990. 

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

48 

PROPOSAL  FOR AMENDED  REGULATION  (EEC)  No  1360/78(') 

TITLE  IV 

Financial  and  general  provisions 

Article  12 

1. 

2. 

The  set  of  measures  provided  for  in  this Regulation  shall  constitute  a common  measure 
within  the  meaning  of  Article  2(1)  of  Regulation  (EEC)  No  4256/88. 

The  common  measure  referred  to  in  paragraph  1 shall  be  the  subject  of  programming 
under  the  conditions  referred  to  in  Article  11 of  Regulation  (EEC)  No  2052/88. 

Applicants  shall  be  entitled  to  aid  as  provided  for  in  this  Regulation  only  if  all  the 
conditions  of  this  Regulation  are  met  and  the  financial  resources  provided  by Jhe 
programming  defined  in  Article  14 of  this  Regulation  have not  been  exhausted-
Article  13 

Before  1 January  1997 the Commission  shall submit to the Council, on the basis of  information 
supplied  by the Member  States, a report  on the  results of the implementation  of this  common 
measure. 

Article  14 

1.  Measures  under  this  Regulation  shall  be  included  in  the  plans  drawn  up  and  presented 
bv the Member  States in accordance  with  Article  11(1) and (2) of Regulation  (EEC)_No 
2052/88  and  Articles  5 to  7 of  Regulation  (EEC) No  4253/88. 

" 

" 

2.  Measures  under  Article  10(1). (2).  (2a)  and  (3)  of  this  Regulation  shall  be  included  in 
the  Community  support  frameworks  drawn  UP in  accordance  with  Article  11(3)  of 
Regulation (EEC) No 2052/88 and Articles  8 and 9 of Regulation (EEC) No 4253/88'and 
approved  bv  Commission  decision  in  accordance  with  Article  10 of  Regulation  (EEC) 
No 4253/88. 

r)Only  Title  IV is  amended.  Hie  text combines me existing  Tide  IV and the  proposed 
amendments underlined.  The  parts between square  brackets  [ ]  are deleted. 

49 

Article  14a 

1.  Member  States shall  forward  the following  with  the plans referred  to in Article  14(1): 

a) 

b) 

an aid application presented in accordance with Article  14(1) and (2) of Regulation 
(EEC)  No  4253/88  relating  to  the  measures  referred  to  in  Article  14(2)  and  aid 
under Regulation  (EEC) No  389/82; 

all  laws,  regulations  or  administrative  provisions  concerning  aid  schemes  to 
implement  the measures provided  for  in  Article  14(2). 

2. 

The  Commission  shall  examine  all  the  provisions  referred  to  in  paragraph  1 and  shall 
decide on the grant of assistance from the Fund in accordance with Article  14(3) and (4) 
of  Regulation  (EEC)  No  4253/88. 

Article  15 

1.  Assistance shall be paid in accordance with Article  21 of Regulation (EEC) No  4253/88; 
however,  payment  of  the  balance  shall  be  subject  to  the  conditions  referred  to  in 
paragraph  4 of that Article  and based on a statement of the expenditure  incurred by the 
Member  States  during  a  calendar  year,  which  is  submitted  to  the  Commission  before 
1 July  of  the following  year. 

2. 

The  Commission  shall  adopt  detailed  rules  for  the  application  of  this  Article  after 
consulting  the  Committee  referred  to  in Article  29 of Regulation  (EEC) No  4253/88. 

[  Article  16  ] 

(deleted  bv  Regulation  (EEC)  No  3808/89) 

Article  17 

Should  the  Commission  decide,  pursuant  to  Article  2  of  Regulation  No  26  applying 
certain  rules  of  competition  to  production  of  and  trade  in  agricultural  products,  that 
Article  85  (1)  of  the Treaty  is  applicable to  agreements,  decisions  or practices: 

by which persons referred to in Article 5(1), second indent, join together in a group 
fulfilling the conditions laid down in this Regulation, or groups form an association 
fulfilling  the conditions  of this Regulation, 
or  by  which  the  common  rules  referred  to  in  Article  6(1 )(b)  are  adopted  or 
executed, 

a  decision  relating  thereto  shall  apply  only  from  the  date  on  which  the  Commission 
reached its  conclusion. 

50 

Article  18 

This Regulation  shall  not prejudice the  right of  the Member  States to  adopt,  within  the 
sphere of  this Regulation,  additional  aid measures, the conditions  or procedures for  the 
granting of which differ from those laid down in this Regulation or the amounts of which 
exceed  the  upper  limits  laid  down  therein,  provided  that  these  measures  are  taken  in 
accordance  with  Articles  92,  93  and 94  of  the Treaty. 

(provisions  partially  covered  by  Articles  13  and  14a and by  Regulation  4253/88) 

[  Article  19  ] 

Article  20 

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

It shall  apply  as  from  the  entry  into  force  of  the provisions  referred  to  in  Article  6(3), 
second  indent. 

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

51 

PROPOSAL FOR AMENDED  REGULATION  (EEC)  No  1035/72(') 

on  the  common  organization  of  the  market  in  fruit  and  vegetables 

Specific  measures  for  nuts  and  locust  beans 

TITLE  Ha 

Article  14b 

The  second  subparagraph  of  paragraph  2  is  deleted  (rate  of  cofinancing: 
programming) 

replaced  by 

TITLE  V 

General  provisions 

Article  36 

1. 

The  provisions  laid  down  by  regulation  on  the  financing  of  the  common  agricultural 
policy  shall  apply  to  the  market  in  the  products  referred  to  in  Article  1. 

2.  Aids  granted  bv  the  Member  States  in  accordance  with  Article  14(1).  (2)  and  (3)  and 
Article  14b(l) and (2) shall  constitute a common measure in the meaning of Article  2(1) 
of  Regulation  (EEC)  No  4256/88. 
The common  measure shall  be the subiect of programming  under the conditions  referred 
to  in  Article  11 of  Regulation  (EEC)  No  2052/88. 

Applicants  shall  be entitled to the  aid  referred  to in the  first  subparagraph  only  if all  the 
conditions  of  this  Regulation  are  met  and  the  financial  resources  provided  by  the 
programming  defined  in  Article  36a  of  this  Regulation  have  not  been  exhausted. 

3. 

Articles  1 and  7 of  Regulation  (EEC)  No  449/69  are hereby  repealed. 

r)Only  Tides  lia  and V  are amended in  the articles  mentioned.  The  proposed  amendments 
are underlined. 

52 

Article  36a 

1.  Measures under Article  36(2) of this Regulation  shall be included in the plans drawn up 
and  presented  by  the  Member  States  in  accordance  with  Article  11(1)  and  (2) _of 
Regulation  (EEC)  No  2052/88  and Articles  5 to  7 of  Regulation  (EEC) No  4253/88 

2.  Measures  under  Article  36(2)  of  this  Regulation  shall  be  included  in  the  Community 
support frameworks drawn up in accordance with Article  11(3) of Regulation  (EECJLNO 
2052/88  and  Articles  8  and  9  of  Regulation  (EEC)  No  4253/88  and  approved  by 
Commission  decision  in accordance  with  Article  10 of Regulation  (EEC) No  4253/88^ 

Article  36b 

1. 

The  Member  States  shall  forward  the  following  with  the  plans  referred  to  in 
Article  36a(l): 

a) 

b) 

an aid application presented in accordance with Article  14(1) and (2) of Regulation 
(EEC)  No  4253/88  relating to the  measures  referred to  in  Article  36a(2); 

all  laws,  regulations  or  administrative  provisions  concerning  aid  schemes  to 
implement  the  measures provided  for  in Article 36a(2). 

2. 

The  Commission  shall  examine  all  the  provisions  referred  to  in  paragraph  1 and  shall 
decide on the grant of assistance from the Fund in accordance with Article  14(3) and (4) 
of  Regulation  (EEC) No  4253/88. 

Article  36c 

1.  Assistance shall be paid in accordance with Article 21 of Regulation (EEC) No 4253/88; 
however,  payment  of  the  balance  shall  be  subiect  to  the  conditions  referred Jq_in 
paragraph  4 of that Article  and based on ajitatement of the expenditure  incurred by the 
Member  States  during  a calendar  year,  which  is  submitted  to  the  Commission  before 
1 July of  the following  year. 

2. 

The  Commission  shall  adopt  detailed  rules  for  the  application  of  this  Article  after 
consulting  the Committee  referred  to  in Article  29 of  Regulation  (EEC) No  4253/88. 

53 

COM(93) 270  final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-328-EN-C 

ISBN 92-77-57031-8 

Office for Official Publications of the European Communities 
L-2985 Luxembourg