Proposal for a COUNCIL REGULATION (EC) on aid which Norway, Austria and Finland may grant on stocks held by private operators on 1 January 1995
Date: 1994-10-21
Institutions: European Commission
Subjects: Austria, Finland, agricultural product, private stock, storage, support policy

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(94) 441 final 
Brussels, 21.10.1994 

Proposal  for a 

CQUNCIL REGULATION  (EC) 

on aid which Norway, Austria and Finland may grant on 
stocks held by private operators on 1 January 1995 

(presented  by the Commission) 

EXPLANATORY MEMORANDUM 

I. Introduction 

The transitional arrangements provided for in the Act of Accession of 
Norway, Austria, Finland and Sweden are based on the application of the CAP 
to the new Member States in the same way as to the present Member States 
from the first day of accession. 

Contrary to the arrangements in all previous Acts of Accession, this Act 
involves neither the progressive alignment of the agricultural prices in the 
new Member States on the common prices nor the abolition in stages of 
customs duties, other import charges, quantitative restrictions and measures 
having equivalent effect in trade between the present and the new Member 
States. The alignment will take place at one sweep on 1 January 1995. 

Similarly, in trade with third countries, the new Member States will apply 
as from that date the import charges applied by the other Member States. 

As a result of the arrangements thus introduced in Norway, Austria and 
Finland, the prices of most agricultural products, which were higher than 
those applying in the Community in 1994, should fall to the level of the 
latter in 1995. 

As a result, operators holding stocks in the three countries will suffer ' 
prejudice, which Article 150 of Act of Accession seeks to make good by 
providing that the Council, acting by a qualified majority on a proposal 
from the Commission, may permit the new Member States to grant aid equal at 
most to the difference in the abovementioned prices to persons holding 
stocks. 

II.  Main points in the proposal 

In the appended proposal drawn up in accordance with the abovementioned 
provisions, the Commission follows the following guidelines: 

1. The authorization to grant aid must be restricted to those new Members 
where prices prior to accession were higher than the common prices  (as 
explained in  I),  namely Norway, Austria and Finland, Sweden, where prices 
for agricultural products do not differ from the common prices, should 
accordingly be excluded; 

2. This authorization should apply to live animals and products which may be 
in storage in the new Member States on 1 January 1995. In accordance with 
normal CAP practice, compensation for products derived from such products 
should, where possible, be calculated by reference to the difference in 
prices of the basic agricultural products from which they are derived. 

A-

The Commission recognizes, however, that the latter approach cannot 
reasonably be applied to all processed products and that in certain cases 
(e.g. sugar) it is more reasonable to calculate the aid on the basis of 
the difference in the prices for the processed product itself. 

In the case of the most important agricultural products, it proposes to 
solve these problems by reference to a list of products showing the 
products on which the maximum aid for products derived therefrom is to be 
calculated. However, aid may also be granted on other product groups. 

3. The maximum aid is to be fixed in terms of the reduction in the wholesale 
prices or the prices at any other stage constituting the first stage of 
marketing  in the three new Member States in question for a period which 
those Member States consider representative of the effects of the 
application of the Treaty of Accession on prices. 

Nevertheless, the Commission considers that, with a view to 
simplification, a calculation based on the prices as subsidized in the 
new Member States prior to accession and/or the prices as subsidized in 
the Community could be used where such subsidies exist. 

4. The maximum aid thus defined may bear interest which cannot exceed the 

normal market rate for the country in question for the period between 
1 January and the date of payment of the aid. The Commission considers 
that payment of interest is implicit in the idea of compensation for the 
prejudice suffered at a particular time. 

III.  Other points in the proposal 

The other points in the proposal call for less comment. They may be 
summarized as follows : 

overcompensation and receipt in combination with aid provided for in 
Article 138 of Act of Accession are explicitly ruled out; 

aid is ruled out in the case of speculative stocks; 

aid may also be granted on products covered by the Regulation where they 
come from non-member countries or other Member States and are in free 
circulation on 1 January 1995 in Norway, Austria or Finland, but 
excluding products on which the applicable impprt charges have not been 
paid; 

the arrangements are to be implemented and the detailed rules for their 
application drafted by the new Member States themselves subject, however, 
to a procedure  for notifying the Commission and for the latter to be able 
to make observations. 

Lastly, the Commission stresses that as the aid is financed solely from 
national funds, this proposal has no financial impact on the budget of the 
European Union. 

Mindful of the importance and urgency of the appended proposal for Norway, 
Austria and Finland and of the need to send a signal quickly to operators in 
those countries on the subject, the Commission calls on the Council to act 
on this proposal in the very near future. 

3 

Proposal 

for a 

COUNCIL REGULATION 

on aid which Norway, Austria and Finland may grant on stocks 

held by private operators on 1 January 1995 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to Treaty establishing the European Community, 

Having regard to the Act of Accession of Norway, Austria, Finland and 

Sweden, and in particular Article 150(3) thereof, 

Having regard to the proposal from the Commission, 

Whereas, in accordance with Article 150 of the Act of Accession, the 

Council, acting by a qualified majority on a proposal  from the Commission, 

may make provision, under certain conditions, for national aid, 

corresponding at most to the difference between the price recorded in a new 

Member State prior to accession and that resulting  from the application of 

the Treaty of Accession, to be granted to private operators holding, on 

1 January 1995, stocks of basic agricultural products or products processed 

therefrom; 

Whereas the abovementioned difference in prices may be observed in Norway, 

Austria and Finland only, prices in Sweden showing no difference with the 

common prices; 

Whereas it emerges from the abovementioned provision of the Act of Accession 

that, apart from specifying the maximum aid which may be granted and certain 

conditions covering the granting thereof, the Community measures 

contemplated should simply lay down a general framework within which the 

three new Member States in question, which are to bear the financial 

liability therefor, will have full latitude to make their decisions; 

Whereas, in accordance with that provision, the product groups concerned 

cover basic products and products processed therefrom; whereas, while live 

animals should be included, this Regulation should permit aid to be granted 

on any product which may be in storage in the three new Member States 

referred to above on 1 January 1995; 

Whereas the maximum aid on live animals and basic products must be equal to 

the fall in prices recorded in the new Member States as a result of the 

application of the Treaty of Accession; whereas, however, those Member 

States should be permitted to determine the period during which that fall 

has occurred and to make provision, with a view to simplification, for the 

maximum aid to be calculated on the basis of the institutional prices where 

such prices exist or have existed; 

tf 

Whereas, in accordance with the general practice of the CAP, the maximum aid 

on processed products must be based as far as possible on the level laid 

down for the basic products; whereas, however, the difficulty in applying 

this method in certain cases  (and in particular where the basic product 

cannot be stocked or has no substantial impact on the prices of the 

processed products) means that the aid is to be calculated  in those cases on 

the basis of the fall in prices for the processed products themselves and 

therefore makes it appropriate to drawn up a list specifying,for the most 

important agreicultural sectors, the products on which the maximum aid is to 

be  calculated  for products derived therefrom; whereas, however, provision 

should be made for the aid to be granted on other products too; 

Whereas the new Member States should be free to consider as part of the 

compensation provided  for herein payment of interest at a rate equal at most 

to the normal rate on the market in the new Member States in question for 

the period between 1 January 1995 and the date of payment of the aid; 

Whereas the other conditions to be laid down must prevent any risk of 

overcompensation and of receipt in combination with other aid provided for 

in the Act of Accession and should rule out the granting of the aid on 

speculative stocks and products imported into the new Member States prior to 

1 January 1995 where the applicable import charges have not been paid; 

Whereas, subject to the abovementioned  limits and conditions, the new Member 

States should be allowed to lay down the detailed rules for the application 

of the arrangements, providing that the latter are submitted to the 

Commission under a procedure reconciling the interests of suitable 

monitoring at Community level with the need for swift action in this area by 

the new Member States, 

6 

HAé  ADOPTED  THIS  REGULATION: 

Article  1 

In order  to offset,  in  full  or  in part, any  fall  in prices  recorded  as  a 

result  of  the  application  of  the Treaty  of Accession,  Norway,  Austria  and 

Finland  may grant  aid  to private  operators  (producers, processors  and 

traders)  who,  at  00.00  hours  on  1 January  1995, own: 

(a)  live  animals  covered  by Chapter  I of  the  CCT; 

(b)  stocks  of  agricultural  products  listed  in Annex  I; 

(c)  stocks  of  products  derived  from  the products  referred  to  in (b); 

(d)  stocks  of  products  listed  in Annex  II  to  the  EC  Treaty  other  than 

those  referred  to  in  (a) ,  (b) or  (c) and products  processed 

therefrom. 

Article  2 

1. The  aid provided  for  in Article  1 may not  exceed: 

(a)  in the  case  of  the products  referred  to  in Article  1 ( a ),  (b)  and 

(di,  the  fall  in prices  recorded  in Norway,  Austria  or  Finland, 

at  the wholesale  stage or any other  stage  constituting  the  first 

stage of  marketing  of  the product  in question,  and 

for a  period: 

considered  by  those  States  as  representative  of  the  effects  of 

the  application  of  the Treaty  of Accession  on prices,  and 

not  extending  beyond  the  storage  life  of  the product  after  the 

date  of  accession; 

* 

(b>  in the case of products referred to in Article 1(c) and those 

processed  from the products listed in Annex II to the EC Treaty as 

referred  to in Article ltd), the maximum laid down  in  (a) tor t hi-

products from which they are derived, multiplied by: 

-  a coefficient reflecting value in the case of meat; 

a processing coefficient reflecting the impact of the products from 

which they are derived in the case of other product groups. 

The coefficients provided for in  (b) shall be determined by the Member State 

in question. 

• 

it 
t  i: 

»  j: 

S 

2. The maximum provided for in paragraph 1(a) may be replaced: 

in the case of products subject, prior to accession, in the Community and 

in Norway, Austria or Finland, to a price support system, by the 

difference between the prices as subsidized in December 1994 in the 

abovementioned Member States and the prices as subsidized by the 

Community  in January 1995; 

in the case of products subject, prior to accession, to a price support 

system in Norway, Austria or Finland only, by the difference between the 

prices as subsidized in those Member States in December 1994 and the 

prices applying in those Member States at the marketing stage referred to 

in the first indent of paragraph 1(a) at a time in 1995 which they 

consider representative for the purposes of calculating  the fall in 

prices as a result of the application of the Treaty of Accession; 

in the case of products which, prior to accession, were subject to a 

price support system in the Community but not in Norway, Austria or 

Finland, by the difference between the prices recorded in new Member 

States at the marketing stage referred to in the first indent of 

paragraph 1 (a) at a time in 1994 which they consider representative for 

the purposes of calculating the fall in prices as a result of the 

application of the Treaty of Accession and the prices as subsidized in 

the Community in January 1995. 

3. The maximums provided for in paragraphs 1 and 2 shall not preclude the 

right of the Member State in question to increase the aid by interest at 

a rate equal at most to the normal rate on the market in that Member 

State for the period between 1 January 1995 and the date of payment. 

3 

Article 3 

1. Products as referred to in Article 9(2) of the EC Treaty which are  on 

the territory of Norway, Austria or Finland on 1 January  1995 shall be 

deemed to be  stocks for the purposes of this Regulation. 

However, products in free circulation on the territory of those Member 

States shall qualify for the aid provided for herein only where import 

thereof took place after the applicable customs duties and charges having 

an equivalent effect were collected. 

2. Norway, Austria and Finland shall ensure that the aid provided for in 

Article li 

does not exceed the amount necessary to offset the fall in prices 

recorded as a result of the application of Treaty of Accession; 

is deducted from the aid provided for in Article 138 of the Act of 

Accession where the latter is granted on the same products, as such or 

after processing; 

is not granted on speculative stocks. 

.Article 4 

1. With a view to the application of this Regulation, Norway, Austria and 

Finland: 

(a)  may undertake an inventory of stocks;; 

I #-

(b)  shall  record  prices  as provided  for  in Article  2(1) (a)  on  the basis, 

where  possible,  of quality  standards  comparable  with  those  provided 

for  in Community  regulations; 

(c)  shall  adopt  detailed  rules on  the granting  of  the  aid  provided  for 

herein  and  on verification  thereof.  Such  detailed  rules  shall 

include  in particular  suitable measures  to prevent  the  aid  being 

granted  on  speculative  stocks. 

2.  Before  31 March  1995, Norway, Austria  and  Finland  shall  notify  the 

Commission  of  the  quantities  which are  likely  to  qualify  for  the  aid 

provided  for  herein. 

Article  5 

1. Norway,  Austria  and  Finland  shall  forward  to  the  Commission  the  draft 

measures  to  introduce  the aids provided  for herein.  At  the  same  time  they 

shall  specify: 

-  the  rate  of  aid  contemplated; 

-  the  factors  serving  to determine  it. 

2.  The  measures  provided  for  in paragraph  1 may not  enter  into  force  before 

they  are  approved  by  the Commission.  The Commission  may  make  such 

approval  subject  to any condition  it considers  appropriate  with  a view  to 

achieving  the  objectives  and observing  the provisions  of  this  Regulation. 

3. Where,  within  one month of  receipt  of  the draft  measure  referred  to  in 

paragraph  1,  the Commission  has not  expressed  any  observations  with 

regard  thereto,  those measures  may be  implemented. 

* 

Article € 

This Regulation snail enter into force on 1 January 1995. 

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

i 

all Ifenber States. 

at Brussels, 

For tfee Council 

ANNEX 

CN  code 

Description 

I. MEAT: 
A.  Meat  of bovine  animals 

Carcases  and  half-carcases of  bovine  animals,  fresh, 
chilled  or  frozen 

B.  Meat  of  swine 

Carcases  and half-carcases of  domestic  swine,  fresh, 
chilled  or  frozen 

C.  Meat  of  sheep or  goats 

Carcases  and half-carcases of  lamb,  fresh,  chilled  or 
frozen 

Carcases  or half-carcases  of  sheep,  fresh,  chilled  or 
frozen 

Carcases  and half-carcases of goats,  fresh,  chilled  or 
frozen 

D.  Poultrymeat 

"70%  chickens",  fresh, chilled  or  frozen 

"80%  turkeys",  fresh,  chilled  or  frozen 

02011000 
and 
02021000 

02031110 

and 

02031124 

02041000 
and 
02043000 

02042100 

or 

02044100 

02045011 
and 
02045051 

02071015 
and 
02072210 

02071031 
and 
02072210 

-  i\ 

CN code 

Description 

02071055 
and 
02072311 

©2 ©71 ©7 3 
a nd 

"70% ducks", fresh, chilled or frozen 

**75% geese%  fresh* chilled or frozen 

E~ Reindeer 

0 2 0 8 1 0 90 

Meat of reindeer 

II. EGGS 

04Q7Q<J3Q 

Birdsr eggs in shell 

ex  G4Û1 

0 4 0 2 1 0 99 

G405QO 

©7ffl 

Q713 

III- BEEUE Mm  MILK PRODUCTS 

Long-life «ilk and créa» 

Milk in powder 

Butter 

IV. EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS 

Potatoes, fresh or chilled 

Dried leguminous vegetables, in particular peas and field 
beans 

V.  EDIBLE  FRESH  AND  PROCESSED  FRUIT  AND  VEGETABLES 

Products listed in Article 1 of Council Regulation (EECÏ n* 1&35/72 of 
18.5.1972 on the common organisation of the markets of fruit and 
vegetables^*  as last amended by Regulation  CECI n* 3669/SK3 ^2* 

Ut  ©ffcJ.  Bo  U ft  of  20f.5.ÏS?*2J»  p.  1 
I 2Ï  O r .^  no  3 38  of  3 I . I 2 . 1 S » 3„  pv  36 

-  1 «-

Products  listed  in Article  1 of Council  Regulation  (EEC)  No  426/86  of  24 
February  1986  on  the common  organization  of  the market  in products  processed 
from  fruit  and  vegetables^',  as  last amended  by  Commission  Regulation  (EC) 
No  1490/94 ( 4) . 

100110 
100190 
10020000 
100300 
100400 
1005 

120100 
120500 
120600 
1209 
1210 

12092950 
1213 
ex  1214 

VI.  CEREALS 

Durum  wheat 
Wheat  and  meslin other  than durum  wheat 
Rye 
Barley 
Oats 
Maize  (corn) 

VII.  OILSEEDS AND OTHER  PRODUCTS  FALLING  WITHIN  CHAPTER  12 
OF  THE  CCT 

Soya  beans 
Rape or  colza  seeds 
Sunflower  seeds 
Seeds,  fruit and  spores, of  a  kind  used  for  sowing 
Hop  cones,  fresh or dried,  whether  or  not  ground,  powdered 
or  in the  form of pellets;  lupulin 
Lupine  seed 
Cereal  straw and husks,  unprepared 
Swedes, mangolds,  fodder  roots, hay,  clover,  sainfoin, 
forage  kale,  lupines, vetches  and  similar  forage  products 

VIII.SUGAR 

17011110 
17011210 
17019910 

Raw  cane  sugar  for  refining 
Raw beet  sugar  for  refining 
White  sugar 

IX.- WINE 

Wine of  fresh grapes 

2204^21 ç 
and 
;2204£&-

(3) 
(4) 

OJ  No  L  49,  27.2.1986,  p.  1. 
OJ  No  L  161,  26.6.1994, p.  13 

*• 

ISSN 0254-1475 

COM(94) 441  final 

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