Proposal for a COUNCIL REGULATION (EC) adjusting, for the fourth time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece
Date: 1994-09-09
Institutions: European Commission
Subjects: Greece, accession to the European Union, cotton, norm price, production aid, protocol to an agreement

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

C0M(94) 377 final 
Brussels, 09.09.1994 

94/ 0200  (CNS) 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

adjusting,  for the fourth time, the system of aid 

for cotton introduced by Protocol 4 

annexed to the Act of Accession of Greece 

(presented  by  the  Commission) 

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EXPLANATORY  MEMORANDUM 

Pursuant  to Article  2 of  Council  Regulation  (EEC) No  1964/87  adjusting  the 

system of  aid  for cotton, the maximum reduction  (cutoff) of  the  norm  price 

applied in the event of an overrun of the maximumguaranteed quantity  is 20% 

from  the  1994/95  marketing  year,  whereas  it  was  15%  for  the  1993/94 

marketing year.  In order  to prevent the increase  in the  limrt  from  15% to 

20% having  damaging  repercussions  for operators  , the  adjustment  should  be 

introduced progressively  by applying an intermediate  limit of  18.5% for the 

1994/95 marketing year. 

\  V*A  S 

-

COUNCIL REGULATION  (EC) No 

/.. 

of 

adjusting,  for the lourth time, the system of aid 

for cotton introduced by Protocol 4 

annexed to the Act of Accession of Greece 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  the  Act  of  Accession  of  Greece,  and  in  particular 

paragraph  11 of  Protocol  4 on cotton, as  last  amended  by  Regulation  (EEC) 

No 1553/931, 

Having  regard  to  Council  Regulation  (EEC)  No  1964/87  of  2  July  1987 

adjusting  the system of aid  for cotton introduced  by Protocol  4 annexed  to 

the Act of Accession of Greece^, and in particular Article 3(2) thereof, 

Having regard to the proposal from the Commission-*, 

Having regard to the opinion of the European Parliament^, 

Having regard to the opinion of the Economic and Social Committee-*, 

Whereas  Article 2(2) of  Regulation  (EEC) No 1964/87  provides  that,  with  a 

view  to  avoiding  excessive  variations  in  the  reduction  of  t.ho noi m  pi ire 

appl iod  if th<* m.ix imuin <ju<ir<int «MM! quantity  is exceeded, the reduction  shall 

be limited; whereas  the said reduction  is limited to 2 0% of  the  norm  price 

from  the  1994/95  marketing  year,  while  the  reduction  for  the  1993/94 

marketing year was limited to 15%; 

1  OJ No L  154, 25.06.1993, p. 21 
2  OJ No L  184, 3.7.1987, p.  14. Regulation  as last amended  by  Regulation 

(EEC) No 1553/93. 
3 
OJ No C 
4  OJ No C 
5  OJ No C 

-2-

whereas,  in  order  to  prevent  the  increase  in  the  limit  from  15%  to  20% 

having  damaging  repercussions  for  operators  ,  the  adjustment  should  be 

introduced progressively  by applying an intermediate  limit of  18.5% for the 

1994/95 marketing year, 

HAS ADOPTED THIS REGULATION: 

Article 1 

This  Regulation  provides  for  adjustments  to  the  system  of  aid  for  the 

production  of  cotton  provided  for  in paragraph  3 of  Protocol  4 annexed  to 

the Act of Accession of Greece and adjusted by Regulation  (EEC) No 1964/87. 

Article 2 

The  second  subparagraph  of Article  2(2) of  Regulation  (EEC) No  1964/87  is 

replaced by the following: 

However, without  prejudice  to  the  third  subparagraph,  if  the  reduction  in 

the  amount  of  aid  exceeds  20% of  the  norm  price,  this  reduction  shall  be 

limited to 20% for the marketing year concerned, except  in the case of the 

1994/95  marketing  year,  in  respect  of  which  the  two  percentages  shall  be 

18.5%.  The  reduction  which  exceeds  these  limits  shall  be  carried  over  to 

the norm price for the following marketing year within the limit of 7%.' 

Article 3 

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

publication in the Official Journal of the European Communities. 

It shall apply from the  1994/95 marketing year. 

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

all Member States. 

Done at, 

For the Council. 

F I N A N C I AL 

STATEMENT 

1. BUDGET HEADING:  Bl- 141 

APPROPRIATIONS:  760 Mio Ecu 

2. TITLE: 

Draft Council Regulation adjusting, for the fourth tine, the system of aid 
for cotton introduced by Protocol  4 annexed to the Act of Accession of Greece 

3. LEGAL BASIS: 

Article 3(2) of Regulation  (EEC) No 1964/87 

4. AIMS OF PROJECT: To limit the maximum reduction of aid for 1994/95 to 18.5% of the norm price 

5. FINANCIAL  IMPLICATIONS 

PERIOD OF 12 MONTHS 

CURRENT FINANCIAL 
YEAR 
(93) 

FOLLOWING  FINANCIAL 
YEAR 
(94) 

5.0. EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(REFUNDS) 

- NATIONAL  ADMINISTRATION 
- OTHER 

•>.l . RKVKKUK 

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

-  NATIONAL 

5.0.1. ESTIMATED  EXPENDITURE 
5.1.1. ESTIMATED REVENUE 

5.2. METHOD OF CALCULATION: 

+ 21 

+ 21 

1996 

1997 

1998 

1999 

1.014,6  Ecu/t X 1,5  % x 1,15 Mio t x 1,207 (FT) = + 21,1 Mio ECU  (B) 

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

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

6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

COMMENTS:The impact  is included in the global cost of the prices decision for  1994/95 

already announced to the Council when the compromise of 18-19 July was adopted. 

xxx xxx 

XXX  XXX 

Yes xxx 

u 

BSN 0254-1475 

COM (94) 377 final 

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ISBN 92-77-80486-6 

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