Proposal for a COUNCIL REGULATION (EC) providing for additional measures for direct support of producers' incomes or for the beef and veal sector
Date: 1996-11-26
Institutions: European Commission
Subjects: animal disease, beef, financial aid, production aid, support policy

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

* 

-et 

Brussels, 26.11.1996 
C()M(%)  606  final 

96/0286  (CNS) 

Proposal for a 

COUNCIL  RECÎULATION  (EC) 

providing for additional measures for direct support of producers' incomes or for the 
beef and veal sector 

(presented  by  the  Commission) 

Explanatory Memorandum 

Following the outbreak  of the crisis  in the beef  market due to consumer  concern over the 
possible  transfer  of  Bovine  Spongiform  Encephalopathy  (B.S.E.) to humans  through  beef 
products,  a  series  of  initial  measures  were  adopted  by  the  Commission  to  protect 
consumers, to restore confidence  and to support the beef market. Then, as the longer term 
impact on the change in consumer behaviour became evident, the Commission proposed on 
30 July  1996 to amend Council  Regulation (EEC) No 805/68 by adapting beef production 
better to consumer demand and making proposals on labelling and promotion. 

In the meantime there was a general recognition of the need to provide immediate, short-
term income support, within the Union's budgetary possibilities, to beef producers and the 
Council  adopted  measures  providing  additional  payments  to  producers  on  8  July  1996 
through Council Regulation (EC) No  1357/96. These measures included supplements to the 
premium  for  suckler cows of 27 ecu and to the male animal  premium  of 23 ecu while the 
balance  between  the  figure  available  for  top-up  premia  and  the  total  of  850  mecu  was 
distributed  to Member States, on the basis of a key reflecting,  in particular, the size of their 
non-dairy  cattle  herds,  as  a  contribution  to  national  aid  schemes  in  cases  where  some 
complementary  aid was needed to help to resolve problems not fully  addressed by the top-
up premia. The overall  level of support was based on an analysis of the impact of the price 
reduction  which had taken place since 20 March as a result of the  B.S.E. crisis, projected 
forward  to the end of the year, though the Commission recognised  at the time that such an 
estimate  could  not  be  precise  since  market  disturbance  had  made  the  measurement  of 
current prices  difficult. 

Al  its meeting  of 28-30 October,  the Council  agreed  a package  of urgent  measures  in the 
beef and veal sector and considered that the continuing serious difficulties  in the beef sector 
justified  additional  measures  for  direct  support  of producers'  incomes or  for  the beef and 
veal sector amounting to 500 mecus. 

The Council  requested  the Commission to find the means of reaching this objective of 500 
mecus  in  the  framework  of  the  agricultural  budget,  taking  into  account  also  possible 
savings, if any, arising from  the agreed compromise package. The Council also considered 
that such financial assistance should be distributed  among the Member States according to 
an agreed key. 

This  proposed  regulation  formalises  the  compromise  for  the  provision  of  the  500  mecu 
support package, giving Member States the flexibility  to spend their part of this aid either to 
support producers' incomes or the beef and veal sector in their territory. 

1 

Proposal for 

COUNCIL REGULATION (EC) No. 

providing for additional measures for direct support of producers' incomes or for the 
beef and veal sector 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty of the European Community, and in particular Articles 42 and 

43 thereof, 

Having regard to the proposal from the Commission  ', 

Having regard to the opinion of the European Parliament2, 

Whereas,  in  the  light  of  the  continuing  serious  difficulties  in  the  beef  and  veal  sector 

resulting from  consumer concerns in relation to bovine spongiform  encephalopathy  (B.S.E) 

and further  to those measures which were made to support producers'  incomes by Council 

Regulation  (EC)  No  1357/96  3,  additional  measures  for  the  direct  support  of  producers' 

incomes or for the beef and veal sector are necessary; 

Whereas the amount of aid  available to each  Member  State for  direct  support  of producer 

incomes or the beef and veal sector shall be distributed according to a key which takes into 

account,  in  particular,  the  size  of the  beef  herd  in each  Member  State;  whereas  Member 

States shall distribute the total amount of finance available on the basis of objective criteria, 

and shall avoid any market distortion; 

1  OJNo. 

2  OJNo. 

3  O J N oL  175, 13.7.1996, p.9. 

3 

Whereas, for  budgetary  reasons, the Community  shall  finance  the expenditure  incurred by 

Member  States  in relation  to the direct  support  of  producer  incomes or the beef  and veal 

sector only where such payments are made by a certain deadline, 

HAS ADOPTED THE FOLLOWING REGULATION: 

Article 1 

Member  States  shall  use  the  amounts  set  out  in  Annex  I to  make  additional  payments, 

according  to objective  criteria, to support producers'  incomes or the beef and veal  sector 

in their territory, provided  that these payments do not cause distortion of competition. 

Article 2 

1.  The  measures  introduced  by  Article  1 of  this  regulation  shall  be  deemed  to  be 

intervention  intended  to stabilize agricultural  markets within the meaning of Article 

3 (1) of Regulation (EEC) No 729/70  \ 

2.  The Community  shall  finance  the expenditure incurred by Member States in relation 

to  the  payments,  referred  to  in  Article  1, only  where  such  payments  are  made  by 

them by  15 October  1997 at the latest. 

OJNoL94,  28.4.1970, p. 13. 

4-

Article 3 

The conversion rate to be applied shall be the agricultural rate valid on 1  December 1996. 

Article 4 

Any  detailed  rules  necessary  for  the  application  of  this  Regulation  shall  be  adopted  in 

accordance with the procedure set out in Article 27 of Regulation (EEC) No. 805/68 5. 

Article 5 

This Regulation shall enter into force on the day of its publication in the Official  Journal of 

the European Communities. 

It shall not be applicable before the day the General Budget of the European  Communities 

for the financial year  1997 has been declared as finally  adopted. 

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

Done at 

For the Council 

The President 

5  OJ No L  148, 28.6.1968, p.24. 

Belgium 

Denmark 

Germany 

Greece 

Spain 

France 

Ireland 

Italy 

Luxembourg 

Netherlands 

Austria 

Portugal 

Finland 

Sweden 

United Kingdom 

ANNEX I 

Amounts referred to in Article  1 

ECU (millions) 

22,12 

12,29 

98,33 

1,47 

28,52 

117,01 

36,87 

44,25 

1,47 

32,45 

10,32 

5,90 

5,90 

10,32 

64,41 

G 

FINANCIAL  STATEMENT 

BUDGET  HEADING:  Bl-2128 

APPROPRIATIONS:  ECU  442  million 
(LA2  to  PDB  1997) 

2. 

TITLE: 

Proposal  for  a Council  Regulation  providing  for  additional  measures  for  direct  support  of  producers'  incomes  or  for  the 
beef  and  veal  sector. 

LEGAL  BASIS:  Article 43 

AIMS: 

Additional  support  to the  beef  sector  due to continuing  serious  difficulties. 

5. 

FINANCIAL  IMPLICATIONS: 

5.0. 

5.1. 

EXPENDITURE 
-  CHARGED  TO HIE  EC  BUDGE 
(REFUNDS/INTERVENTION) 

-  NATIONAL  AUTHORITIES 
-  OTHER 

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

-  NATIONAL 

5.0.1. 
5.1.1. 

•  ESTIMATED  EXPENDITURE 

ESTIMATED  REVENUE 

5.2. 

METHOD  OF  CALCULATION: 

PERIOD OF  12 
MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL 
YEAR 
(1997) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR 
(1998) 
(ECU  million) 

500 

1999 

0 

2000 

2001 

2002 

ECU  491.63  million  (A)  x  1.017 (DT)  ECU  500  million  (B) 

6.0. 

6.1. 

6.2. 

6.3. 

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

Y-US/NO 

! 

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

WILL  A SUPPLEMENTARY  BUDGET  BE  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

YES/NO 

¥fcS/NO 

VËS/NO 

-1 
OBSERVATIONS  Given  the  need  to  keep  within  the  1997 budgetary  framework  and  since  LA  2/97  currently  only  provides  for 
ECU  442  million,  the  Commission  will  look  for  ways of achieving  the  objective  of  ECU  500  million  in the 
agriculture budget 

ISSN 0254-1475 

COM(96) 606 final 

DOCUMENTS 

EN 

03  01 

Catalogue number  :  CB-CO-96-598-EN-C 

ISBN 92-78-11726-9 

Office  for Official  Publications of the European  Communities 

L-2°85  Luxembourg 

g