1995 report on progress in implementation of the specific measures for the smaller Aegean islands
Date: 1998-05-11
Institutions: European Commission
Subjects: Aegean Islands, EAGGF, agricultural production, production aid, supply

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 11.05.1998 
COM(1998) 292  final 

1995 Report on progress in implementation of the specific 
measures for the smaller Aegean islands 

(presented by the Commission) 

TABLE OF CONTENTS 

1. INTRODUCTION 

1  eu 

2. MEASURES PROVIDED FOR IN REGULATION (EEC) NO 2019/93 

3. PROGRESS IN IMPLEMENTATION OF THE MEASURES 

flour 

3.1 Specific  supply arrangements 

(1) Yoghurt 
(2) Sugar 
(3) Wheat 
(4) Feeding stuffs 
(5) Fruits and vegetables 

3.2 Measures to support local products 

(1) Stockfarming 
(2) Milk products 
(3) Fruit, vegetalbes and flowers 
(4) Potatoes 
(5) Wine sector 
(6) Olive groves 
(7) Honey 

4. EAGGF GUARANTEE SECTION EXPENDITURE ON IMPLEMENTATION OF 
THE MEASURES 

5. DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES 

6. NATIONAL SYSTEM OF CONTROLS 

7. CONCLUSIONS 

ANNEX 1 - REGULATIONS ADOPTED AT 31 DECEMBER 1995 
1. FRAMEWORK REGULATION 
2. DETAILED RULES OF APPLICATION 
(1) Specific supply arrangements 
(2) Measures to support local products 

3. DÉROGATIONS APPLICABLE TO STRUCTURAL MEASURES 

ANNEX 2 - ADMINISTRATIVE ACTS ADOPTED TO IMPLEMENT THE 
MEASURES 
1. SPECIFIC SUPPLY ARRANGEMENTS 
2. MEASURES TO SUPPORT LOCAL PRODUCTS 
3. DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES 

ANNEX 3 - AID FOR SUPPLY - SUMMARY TABLE 

ANNEX 4 - SUMMARY TABLE - AID FOR LOCAL PRODUCTION 

2 

2 

2 
3 
4 
5 
5 
7 

7 
7 
8 
9 
10 
10 
11 
12 

12 

13 

14 

17 

19 
19 
19 
19 
20 
22 

23 
23 
23 
25 

26 

27 

A 

1.  INTRODUCTION 

The  Rhodes  European  Council  of  2  and  3 December  1988  recognised  the  specific  socio 
economic problems affecting  certain island regions of the Community. 

In  line  with  the  conclusions  of  the  aforementioned  European  Council  and  in  compliance 
with  its  commitments,  the Commission undertook  a general  study  of  the  specific  problems 
of  the  Aegean  islands  in  partnership  with  the  Greek  authorities,  which  resulted  in  the 
drafting  of  an  interim  Commission  report1  on  progress  in  the  study.  This  study  phase 
enabled  the  Commission  to  submit  a  final  report2,  accompanied  by  suitable  proposals, 
defining  the  overall  strategy  and  practical  means  of  solving  the  problems  of  the  Aegean 
islands. 

The  final  report  outlined  the  Community's  response  and  enabled  the  Commission,  in the 
agricultural  field,  to  submit  its  regulatory  proposals  designed  to  draw  up  a  framework  of 
agricultural measures to be financed by the EAGGF Guarantee and Guidance Sections. 

The proposed measures were intended to encourage the economic and social development of 
small  islands  (less  than  100 000  inhabitants)  featuring  a difficult  geographical  situation and 
structural backwardness in relation to other regions of the Community. 

The  difficulties  experienced  by  such  islands  in  kickstarting  their  economic  and  social 
development stem from their insularity,  remoteness,  small  land area,  and difficult  relief and 
climate. 

In view of the islands' specific problems, the Commission proposal contemplated a series of 
multiannual  and  multisectoral  measures  designed  to  facilitate  supplies,  provide financial 
support  for  production  with a view  to  improving  the  islands'  self-sufficiency,  and improve 
their agricultural structures and the living conditions of their inhabitants. 

The  Council  followed  up  the  Commission  proposals  by  adopting  Regulation  (EEC) 
No2019/933. 

The  Commission  quickly  adopted  all  the  regulations  needed  to  implement  the  measures 
planned,  so  making  their  implementation  possible  as  of  1993,  but  the  administrative 
procedures  for  actual  execution  and the  necessary  adaptation  of  the  economic  operators  to 
the new  mechanisms  introduced  meant that only  a small  number of  measures  in support  of 
local  products  could  be  executed  in  1993.  In  1994  all  the  measures  were  implemented 
except  for  that  relating  to  the  development  and/or  diversification  of  production  and/or 
improvement  of  the  quality  of  the  fruit,  vegetables  and  flowers,  which  could  not  be 
implemented in 1995 either, owing to a lack of personnel  in the national administration. 

1 

SEC  (92) 36 final  of  13 January  1992. 

2  COM  (92) 569 final of 23 December  1992. 

3  OJL  184, 27.7.1993, p. 1. 

In  accordance  with  Article  15(1)  of  Regulation  (EEC)  No 2019/93,  the  Commission  is 
required to present an annual report on the implementation of the measures  planned. 

In  1996  the  Commission  presented  the  first  report  to  Parliament  and  the  Council  on  the 
implementation of the programme during  1993 and  1994 (COM (96)387 final). 

This report covers  1995 but also includes data on  1993 and  1994 to give an idea of progress 
in  implementation  of  the  measures.  There  are  also  some  adjustments  to  certain  data 
included  in the previous  report. 

The  late  preparation  of  the  reports  is  due  to  the  national  administration's  difficulties  in 
obtaining all the information  needed to compile them from regional offices  in the islands. 

2.  MEASURES  PROVIDED  FOR IN REGULATION (KEC) NO 2019/93 

The Regulation  introduces: 

-  a set of specific  market  measures  with expenditure to be borne by the EAGGF Guarantee 
Section  (essentially  specific  supply  arrangements  and  aid  for  certain  local  products),  for 
which  specific  headings  were  included  in the  Community  budget  for  a total  of  ECU  15 
million  in  1993, ECU  19 million  in  1994 and  ECU 27 million  in  1995 (ECU  12 million, 
ECU  18  million  and  ECU  23  million  under  item  B1-1833  for  plant  products  in  1993, 
1994  and  1995  respectively  and  ECU  3  million,  ECU  1 million  and  ECU  4  million 
under  item Bl-2513 for  livestock products  for  1993,  1994 and  1995 respectively); 

-  a  series  of  derogations  needed  in  the  structural  field,  in  order  to  facilitate  EAGGF 
Guidance  operations.  However,  additional  amounts  were  not  entered  in  the  budget  for 
these  derogations,  the  expenditure  being  covered  by  EAGGF  Guidance  appropriations 
under the CSF. 

3.  PROGRESS IN IMPLEMENTATION OF THE  MEASURES 

3.1  Specific  supply  arrangements 

The  arrangements  seek  to offset  the extra costs, due to the geographical  situation  of the 
islands, of supplies  of a certain  number of products  for  everyday  consumption from the 
rest of the Community, so they are available at fair prices. 

The quantities of products qualifying  under these supply arrangements are determined on 
the  basis  of  forecast  supply  balances,  reviewed  periodically  in  the  light  of  market 
requirements.  Special  attention  is  paid  to  the  knock-on  effects  of  the  arrangements,  in 
particular as regards the passing-on to the end user of the benefits  granted. 

For the purposes of applying the supply arrangements, the islands were classified  in two 
groups  A  and  B  on  the  basis  of  their  distance  from  the  mainland  and  the  aid  was 
determined  on  the  basis  of  the  marketing  costs  calculated  from  the  usual  ports  of 
shipment in mainland Greece. 

The islands and the prefectures  (nomoi) belonging to group A (islands close to mainland) 
are Thasos,  Samothrace,  Sporades,  Kithira,  Antikithira,  Amouliani,  the  islands  of  the 

prefecture  of  Evvia,  excluding  the  island  of  Evvia,  and  of  the  prefecture  of  the 
Kiklades  islands,  Kea,  Kithnos,  Giaros,  Andros,  Tinos,  Siros,  Mykonos,  Dilos  and 
Rinia. 

The  islands  and  prefectures  belonging  to  group B (distant  islands)  are  the  Prefectures 
of  the  Dodecanese,  Khios,  Les vos  and  Samos  and  the  islands  of  the  prefecture  of  the 
Kiklades, excluding those in group A. 

The  Community  contribution  accounts  for  90%  of  the  total  cost  of  the  measures,  the 
remaining  10% being borne by the Member State. 

The  aid  for  supplies  was  fixed  at  ECU  15/t  and  ECU 30/t4  for  groups  A  and  B 
respectively.  In  addition,  the  aid  for  1993  was  to  be  increased  by  50%  in  order  to 
encourage the operators to implement the measure quickly. 

In  the  case  of  fruit  and  vegetable  supplies,  implementation  was  to  be  temporary  and 
degressive  (from  1993 to  1997).  For  1994,  1995,  1996 and  1997, the aid  was  fixed  at 
80%,  60%, 40% and 20% of the amount applicable in 1993. 

Implementation  of  the  measure  started  in  1994  only,  as  the  relevant  administrative 
instruments  needed  to  be  approved  and  the  Greek  administration  and  the  operators 
needed to adapt to the new procedure. 

The situation regarding the development of supplies by product  is as follows: 

(1) 

Yoghurt 

Progress in implementation 

Table 1 

group of 
islands 

A 

15(1) 
18(2) 

30(1) 
36(2) 

500 (3) 

1 250 (3) 

Total 

1.750,0 

unit aid 

(ECU/t) 

balance 
fixed (t) 

1993 

outturn 

quantity 

(t) 

total cost 
(ECU'OOO) 

balance 
fixed (t) 

1994 

outturn 

quantity 

(t) 

total cost 
(ECU'OOO) 

balance 
fixed (t) 

1995 

outturn 

quantity 
(t) 

total cost 
(ECU'OOO) 

0 

0 

0 

0 

2 000 (3) 

0 

0 

1 000 (4) 

0 

0 

0 

5 000 (3) 

2,3 

0,07 

3 000(4) 

34 

1,2 

0 

7.000 

2,3 

0,07 

4.000 

34 

1,2 

(1) Regulation (EEC) No 2958/93 of 27 October 1993. A 50% increase was laid down for 1993. 

(2) Regulation (EC) No 1802/95 of 25 July 1995 

(3) Regulation (EC) No 3163/93 of 17 November 1993. 

(4) Regulation (EC) No 3004/94 of 9 December 1994. 

4 

Since  1995 when  the correcting  factor  lor the agricultiiial conversion  rates was done away  with, the aid  has 
been  ECU  18/t and  ECU 36/t respectively. 

The  measure  shows  very  poor  implementation  and  take-up  in  1995  is  well  below  the 
forecast  supply balances,  which  in turn are significantly  down on the  1994 forecast.  In 
all  likelihood  this  is  due  partly  to  the  very  high  cost  of  the  special  labelling  of  each 
pot,  as  required  by  national  provisions,  to  show  that  the product  is  subsidised  by  the 
EAGGF,  and  to the  low  rate  of  aid  in terms  of  the product's  value,  and  partly  to  the 
industry's difficulties  in passing on the aid to the end user. 

The  Greek  authorities  propose  increasing  the  unit  aid  to  offset  the  extra  cost  of  the 
labelling.  However,  the  situation  could  be  improved  by  special  labelling  on  the 
cardboard  packs only  and displaying  a sign at sales points to the effect  that the product 
is subsidised. 

(2) 

Sugar 

Progress in implementation 

Table 2 

unit aid 

group of 
islands 

(ECU/t) 

balance 
fixed (t) 

1993 

outturn 

quantity (t) 

total cost 
(ECU'OOO) 

balance 
fixed (t) 

1994 
outturn 

quantity (t) 

total cost 
(ECU'OOO) 

balance 
fixed (t) 

1995 

outturn 

quantity (t) 

total cost 
(ECU'OOO) 

A 

B 

2 250 (3) 

6 750 (3) 

15(1) 
18(2) 

30(1) 
36(2) 

Total 

9.000,00 

0 

0 

0 

0 

3 000 (3) 

265 

4 

3 000 (4) 

237.0 

4,3 

0 

9 000(3) 

7.866 

236 

9000(4) 

7.902,5 

284.5 

0 

12.000,00 

8.131 

240 

12.000,00 

8.139,5 

288,8 

(1) Regulation (EEC) No 2958/93 of 27 October  1993. A 50% increase was laid down for 1993. 

(2) Regulation (EC) No 3004/94 of 9 December  1994. 

(3) Regulation (EC) No 3065/93 of 5 November  1993. 

(4) Regulation (EC) No 1731/95 of  14 July 1995. 

Implementation  of  the  measure  is  fairly  satisfactory  (68% compared  with  the  forecast 
supply balance), particularly for the islands in group B, where it is 88%. 

(3)  Wheat flour 

Progress in implementation 

Table 3 

group of 
Islands 

unit aid 

(ECU/t) 

balance 
fixed  (t) 

1993 

outturn 

quantity 
(t) 

total cost 
(ECU'OOO) 

balance 
fixed (t) 

1994 

outturn 

quantity 
(t) 

total cost 
(ECU'OOO) 

balance 
fixed (t) 

1995 

outturn 

j 
] 
total cost] 
(ECU'OOO) 

quantity 
(t) 

A 

B 

2  500(3) 

7  500(3) 

15(1) 
18(2) 

30(1) 
36(2) 

Total 

10.000 

0 

0 

0 

(1) Regulation (EEC) No 2956793 of 27 October  1993. 

(2) Regulation (EC) No 3004/94 of 9  December  1994. 

(3) Regulation (EC) No 3066/93 of 5  November  1993. 

(4) Regulation (EC) No 1961/95 of 9 August  1905. 

0 

10 000(3) 

7.268 

109 

10 000 (4) 

8.055,5 

145 

0 

30 750 (3) 

30.750 

923 

30 750(4) 

30.750.0 

1.107 

0 

40.750 

38.018 

1.032 

40.750 

38.805,5 

1.252 

Implementation  is  progressing  very  satisfactorily  and  stands  at  95%  (100%  for  the 
islands in group B). 

(4) 

Feedingstuffs 

As  the  following  table  shows,  implementation  of  this  measure  is  proceeding  very 
satisfactorily, particularly  for the islands in group B, and for some products it stands at 
100% of the forecast supply balance. 

As  from  1995,  barley  produced  on  the  islands  of  Limnos  has  been  covered  by  the 
arrangements  and qualifies  for  the  aid  for  the  islands  in  group  A,  irrespective  of the 
island of destination. During 1995, barley supplies rose only slightly, no doubt owing to 

^^lafe implementation. 

Progress in implementation 

Table  4 

group 
of  islands 

product 

unit 
aid 

1993 

1994 

(ECU  V00) 
1995 

balance 

outturn 

balance 

outturn 

balance 

outturn 

#REFI 

(t) 

quantity 
(t) 

total 
cost 

(t) 

quantity 
(t) 

total 
cost 

quantity 
(t) 

total 
cost 

(t) 

grain cereals 

2 500 (3) 

residues and waste from 
the food industries 

15(1) 

250 (3) 

A 

preparations  used 
in animal feeding 

18(2) 

250 (3) 

lucerne and fodder 

1 000(5) 

Total 1 

4.000,00 

grain cereals 

7 700(3) 

0 

0 

0 

0 

0 

0 

barley from Limnos 

residues and waste from 
the food industries 

B 

preparations used 
in animal feeding 

36(2) 

1 600(3) 

lucerne and fodder 

0(5) 

Total 2 

13.450,0 

Grand total 

17.450,0 

0 

10 000(3) 

5.319,5 

80 

10 000(4) 

4.627 

83,3 

0 

1 000(3) 

680,5 

10 

1 000(4) 

850 

15,3 

0 

1 000(3) 

699,1 

11 

1 000(4) 

657 

11,8 

0 

4 000(5) 

781,8 

12 

4 000(7) 

36 

0,6 

0 

16.000,00 

7.480,9 

113 

16.000,0 

6.170 

111 

0 

30 750(3) 

29.391,80 

882 

30 750(4) 

29.539 

1.063,4 

12L53000(1 

200 

3,6 

30(1) 

4 150(3) 

0 

0 

16 500(3) 

17 336.7(6) 

495 

16 500(4) 

16.058 

578.1 

0 

0 

0 

0 

0 

6 500(3) 

4.756,70 

143 

6 500(4) 

6.360 

229,0 

0 

250(5) 

282(8) 

8 

250(7) 

250 

9.0 

0 

54.000,00 

51 767,2(9) 

1.528 

66.000,0 

52.407 

1.883,10 

0 

70.000,00 

59 248,1(10) 

1.641 

82.000,0 

58.577 

1.994.1 

(1 ) Regulation  (EEC) No 2058/03 of 27 October  1003.  The  aid Is Increased by 50% for the first year  of application 

(2) Regulation  (EC)  No 3004/04 of 0  December  1004. 

(3) Regulation  (EC) No 3066/03 of 5  November  1003. 

(4)  Regulation  (EC)  No  1061/05 of 0 August  1005 

(5) Regulation  (EEC)  No 3021/03 of 20 October  1003 

(6) Aid limited to  16 500  t. 

(7) Regulation  (EC) No 3173/94  of 21  December  1094. 

(8) Aid payable in respect  of up to 2501 only. 

(0) Aid payable in respect of up to 50 808.51 only. 

(10) Aid payable In respect  of up to 58  370.41 only. 

(11 ) Aid for group A, i.e.  E CU  18A. 

(5) 

Fruit and vegetables 

Progress in implementation 

Table 5 

group of 
islands 

product 

unit 
aid 

(ECU/! 

balance 
fixed 
(t) 

1993 

outturn 

quantity 
(t) 

total 
cost 

balance 
fixed 
(t) 

1994 

outturn 

quantity 
(t) 

total 
cost 

balance 
fixed 
(t) 

(ECU '000) 
1995 

outturn 

quantity 
(t) 

total 
cost 

potatoes 

A 

vegetables 

fruit 

total 1 

potatoes 

B 

vegetables 

fruit 

total 2 

15(1) 

18(2) 

30(1) 

36(2) 

500(3) 

613(3) 

1598(3) 

2.711,00 

1 667(3) 

11311(3 

5 145(3) 

18.123,0 

Grand total 

20.834,0 

(1 ) Regulation (EEC) No 2956/83 of 27 October 1993. 
(2) Regulation (EC) No 3004/94 of 9 December 1994. 
(3) Regulation (EC) No 3254793 of 26 December 1993. 
(4) Regulation (EC) No 3128/94 of 20 December  1994. 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3 000(3) 

0 

3 679(3) 

0 

9 590(3) 

3 000(4) 

1000(4) 

2 000(4) 

0 

16.269,00 

148,0 

1,8 

6.000,0 

0 

0 

0 

10 000(3) 

0 

67 864(3) 

0 

30 867(3) 

10 000(4) 

782 

16.9 

5 300(4) 

1.136 

24.5 

7 518(4) 

1.828 

39.5 

0 

108.731,0 

975 

23,4 

22.818,0 

3.746 

80.9 

0 

125.000,0 

1.123 

25,2 

28.818,0 

3.746 

80,9 

The  forecast  supply  balances  for  group  A  include  1 000  t  of  mandarins  from  Khios, 
4 0001 of potatoes from Naxos, 2 0001 of tomatoes  and 3001 of courgettes from Siros 
for transport to the other islands. 

In  the  case  of  fruit  and  vegetable  supplies,  implementation  was  intended  to  be 
degressive  and to cover  a  limited  time  span (until  1997) in order  to  facilitate  supplies 
to the  islands  for  a period,  pending  the adaptation of local production through  specific 
incentives provided for in the programme. 

As Table 5 shows, there is no progress in implementation of the measure. Even after  the 
drastic reduction  in the  forecast  supply balance  for  1995 as compared  with the previous 
year, the rate of implementation remains very poor. This can be put down to the fact that 
fruit and vegetables are supplied to the islands in small quantities and by small operators 
without  the  facilities  to  complete  the  administrative  procedures  necessary  to  take 
advantage of the aid. 

3.2  Measures to support local products 

(1) 

Stockfarming 

The following aid is granted to support the sector: 

- 

fattening  aid for  male bovine animals, equal to an additional  ECU 40/head  on top of 
the  special  premium  provided  for  in  Article 4b  of  Regulation  (EEC)  No 805/68  on 
the common organisation of the market in beef and veal; 

-  a  supplement  to  the  suckler-cow  premium  provided  for  in  Article 4d  of  Regulation 
(EEC)  No 805/68,  paid  to  beef  and  veal  producers.  The  supplement  is  equal  to 
ECU 40 per  suckler  cow held  by the producer  on the day  of the application,  subject 
to a ceiling of 40 cows per holding. 

The aid has been increased  to ECU 48.3 per head  in  1996 since the correcting  factor  for 
the agricultural conversion rates was done away with. 

Progress in implementation 

Table 6 

unit  aid 

1993 
outturn 

1994 
outturn 

1995 
outturn 

type of aid 

(ECU/head) 

quantity 
(head) 

total  cost 
(ECU "000) 

quantity 
(head) 

total  cost 
(ECU "000) 

quantity 
(head) 

total cost 
(ECU "000) 

aid for fattening male 
bovine animals 

suckler cow premium 

40(1) 
48.3 (2) 

40(1) 
48.3 (2) 

6.355 

254,2 

10 710(3) 

428,4 

11 872(4) 

474.88 

8.735 

349,4 

8.060 

322,4 

9.921 

396,84 

Total 

15.090 

603,6 

18.770 

750,8 

21.793 

871,72 

(1) Regulations (EEC) No 2019/93 of 19 July  1993 and No 2889/93 of 21 October  1993. 

(2) Regulation (EC)  No 2417/95  of  13 October  1995 

(3) The second  instalment of the aid granted in 1993 was paid in 1994  in respect of  1 996 of these bovine animals. 

(4) The second instalment of the aid granted In 1994 was paid In 1995 in respect of  1 482 of these bovine animals. 

Implementation  of the measure is progressing  satisfactorily.  As a result,  15% of bovine 
animals qualify  each year for the second  instalment  of the fattening  aid for  male bovine 
animals. 

(2)  Milk products 

Aid  amounting  to  ECU 2.28/t/day  (ECU 2.75/t/day  from  1995)  is  granted  for  the 
private storage of certain local cheeses (feta,  graviera and ladotyri). 

There  is a ceiling of  5 000 t/year  and  the minimum  storage period  is 60 days.  The aid 
must not exceed the amount corresponding  to the standard storage period of  150 days. 

Progress  in  implementation 

Table 7 

unit aid 

1993 
outturn 

1994 
outturn 

1995 
outturn 

product 

(ECU/t/day) 

quantity (t) 

total cost 
(ECU '000) 

quantity (t) 

total cost 
(ECU '000) 

quantity (t) 

total cost 
(ECU '000) 

ladotyri 

graviera 

feta 

Total 

2.28(1) 
2.75 (2) 

2.28  (1) 
2.75  (2) 

2.28  (1) 
2.75  (2) 

0 

0 

0 

0 

0 

0 

0 

0 

10 

1,71 

0 

0 

22,5 

7,02 

8,0 

2,4 

200 

40,13 

453,5 

136,7 

210 

41,84 

484 

146,12 

(1) Regulation (EC) No 3393/93 of 10 December 1993. 
(2) Regulation (EC) No 1802/95 of 25 July 1995. 

In  1994, aid was paid under the measure  in respect of  10 t of  ladotyri  cheese and 200 t 
of feta.  Storage in  1994 amounted to 3 151 tonne-days. 

In  1995, the above quantities were stored for  13 340 tonne-days, while storage of 253.5 t 
of feta,  12.5 t of ladotyri and 8 t of graviera commenced for a total of 39 794 tonne-days. 

The relevant aid was only paid on completion of storage of each lot. 

Implementation of the measure was poor on account of fast disposal of production. 

(3) 

Fruit, vegetables and flowers 

Aid  per  hectare  is granted  to producers  and  recognised  producer  groups  implementing 
programmes  of  initiatives  approved  by  the  competent  authorities  for  the  development 
and/or  improvement  of  the quality  of  the  fruit,  vegetables  and  flowers.  The  initiatives 
supported  must  seek  in  particular  to  develop  production  and  product  quality,  in 
particular  by  varietal  conversion  and  improvements  in  cultivation  techniques.  They 
must  be  incorporated  in  programmes  implemented  for  at  least  three  years  and  must 
cover at least 0.3  ha.  The programme does not cover tomatoes. 

Payable  on  a  yearly  basis  for  up  to  three  years,  the  aid  can  amount  to  up  to 
ECU  500/ha  where  the  Member  State  contributes  at  least  ECU  300/ha  and  if  the 
individual producer  or producer  group contributes  at least ECU 200/ha.  If the  Member 
State's and/or the producers'  contribution  is lower than those amounts, the Community 
aid  is  reduced  proportionally.  The  aid  is  increased  by  ECU  100/ha  where  the 
programme  of  initiatives  is  submitted  and  implemented  by  a  producer  group  or 
organisation;  it provides  for  technical  assistance  for  implementation  and  must  cover  at 
least  2 ha.  From  1995  on,  the  above  amounts  were  increased  to  ECU 603.75, 
ECU  362.25, ECU  241.50 and  ECU  120.75  respectively. 

The  measure  was  not  implemented  until  the end  of  1995 owing  to  lack  of  personnel  at 
the  locrl  authorities  responsible  for  publicising  the  measure  and  mobilising  the 

farmers.  Another  reason  is the  small  size  of  holdings,  which  often  have  less  than  the 
minimum area necessary  for  implementation. 

(4) 

Potatoes 

Aid of ECU  500/ha  (ECU 603.75/ha  from  1995) is granted each year  for  growing seed 
potatoes  and  potatoes  for  human  consumption  on  plots  of  at  least  0.2 ha  and  a 
maximum of 3 200 ha of land cultivated  and harvested a year. 

Progress in implementation 

Table 8 

crop 

unit 
aid 
(ECU/ha) 

1993 

balance 
fixed (ha) 

outturn 

quantity 
(ha) 

total cost 
(ECU'OOO) 

balance 
fixed 
(ha) 

1994 

outturn 

quantity 
(ha) 

total cost 
(ECU'OOO) 

balance 
fixed 
(ha) 

1995 

outturn 

quantity 
(ha) 

total cost 
(ECU'OOO) 

potatoes 

500(1) 
603.75(2) 

3.200 

0 

0 

3.200 

1.202 

601 

3.200 

1.484 

895,97 

(1) Regulations (EEC)  No 2019/93  of 19 July  1993 and (EC) No 3404/93 of  10 December  1993 

(2)  Regulation (EC)  No  150/95 of 23 January  1995. 

Implementation  is  progressing  fairly  satisfactorily,  attaining  34.6%  and  46.4%  of  the 
maximum  in  1994  and  1995  respectively.  The  target  of  3 200 ha  was  probably  not 
achieved because of the minimum of 0.2 ha laid down to qualify  under the measure. 

(5)  Wine sector 

-  Area under vines 

Flat-rate aid of ECU 394.83/ha (ECU 476.76/ha from 1995) is granted  for the continued 
cultivation of vine varieties geared to local production of quality wines psr. 

Progress in implementation 

Table 9 

crop 

unit 
aid 
(ECU/ha) 

1993 
outturn 

1994 
outturn 

1995 
outturn 

quantity 
(ha) 

total cost 
ECU '000 

quantity 
(ha) 

total cost 
(ECU '000) 

quantity 
(ha) 

total cost 
(ECU '000) 

areas under  vines 

394.83(1) 
476.76 (2) 

(1)  Regulation (EC)  No 3112/93 of  10 November  1993. 

(2) Regulation (EC)  No 2537/95  of 30 October  1995. 

4.887,30 

1.930 

4.993,52 

1.972 

5.199,55 

2.478,90 

Implementation of the measure is progressing  satisfactorily. 

As  from  the  1997/98  wine  year,  the  aid  will  be  granted  solely  to  producer  groups  or 
organisations which introduce a measure for improving the quality of wines produced on 
the  basis  of  a  programme  approved  by  the  national  authorities,  entailing  in  particular 
facilities  for improving conditions of vinification,  storage and distribution. 

10 

-  Private storage of liqueur wines 

Aid  is  granted  for  the  ageing  for  at  least  two  years  of  local  quality  liqueur  wines 
produced by traditional methods.  It is paid during the second  year  of  ageing  for  up  to 
40 000 hi a year. 

Progress in implementation 

Table 10 

product 

unit 
aid 
(ECU/hl/day 

quantity 
fixed 
(hi) 

1993 

outturn 

quantity 
(hi) 

total cost 
(ECU'OOO) 

quantity 
fixed 
(hi) 

1994 

outturn 

quantity 
(hi) 

total cost 
(ECU'OOO) 

balance 
fixed (hi) 

1995 

outturn 

quantity 
(hi) 

total cost 
(ECU'OOO) 

ageing of 
liqueur wines 

0.0197(1) 
0.02379 (2) 

40.000 

2.000 

1.2 

40.000 

2.154 

14,5 

40.000 

2.154 

17,23 

(1 )  Regulation (EC) No 3112/93 of 10 November 1993. 

(2)  Regulation (EC) No 2537/95 of 30 October 1995. 

Progress  in  implementation  has  been  very  poor  as  local  production  is  currently  being 
disposed  of quickly  on the market.  2 000 hi  went  into  storage on  1  December  1993 and 
154 hi  on  31 November  1994. The  aid  is  paid  at  the  end  of  two  years  of  storage.  The 
table shows the costs for the period of the calendar year when a quantity of wine was in 
storage. 

(6) 

Olive groves 

Fixed-rate  aid  of  ECU  120/ha/year  (ECU  144.9/ha  from  1995)  is  granted  for 
maintaining olive groves in areas of traditional olive cultivation,  provided that the trees 
are kept  and  maintained  in good production  conditions.  The minimum density  was  set 
initially  at  50  trees/ha.  As  from  1995,  the  minimum  density  was  increased  to  80 
trees/ha. 

Progress in implementation: 

Table 11 

unit 
aid 
(ECU/ha) 

crop 

1993 
outturn 

1994 
outturn 

1995 
outturn 

quantity 
(ha) 

total cost 
(ECU '000) 

quantity 
(ha) 

total cost 
(ECU '000) 

quantity 
(ha) 

total cost 
(ECU '000) 

olive groves 

120(1) 
144.9 (2) 

(1) Regulation (EEC) No 2019/93 of 19 July  1993. 

93 020.4 (2) 

11.162 

100 390(2) 

12.047 

90 473.4 (4) 

13.109,66 

(2) Regulation (EEC) No 2837/93 of 18 October  1993. Density 50 trees/ha 

(3) Regulation (EC) No  150/95 of 23 January  1995. 

(4) Regulation (EC) No 2813/94  of 18 November  1994. Density 80 trees/ha 

Progress in the measure is very  satisfactory. 

11 

(7) 

Honey 

Aid  per  hive  in  production  is  granted  to  recognised  honey-producer  groups  for  the 
production  of  honey  of  specific  quality  with  a  high  thyme-honey  content  who 
undertake  to  carry  out  annual  programmes  of  initiatives  to  improve  the  conditions 
is  marketed  and  promoted.  The  aid  amounts  to 
under  which  quality  honey 
ECU  10/hive/year 
a  maximum  of 
50 000 hives/year.  For  a transitional  period  of  two years  while  groups  are  established 
and  recognised,  aid  of  ECU 7/hive  is to be  granted  to any  bee-keeper  with  at  least  10 
hives,  and is subject to a maximum of  100 000 hives. 

(ECU  12.08 

subject 

1995), 

from 

to 

Progress in implementation: 

Table 12 

unit 
aid 
(ECU/hive) 

balance 
fixed 
(hives) 

1993 

outturn 

quantity 
(hives) 

total cost 
(ECU'OOO) 

balance 
fixed 
(hives) 

1994 

outturn 

quantity 
(hives) 

total cost 
(ECU'OOO) 

balance 
fixed 
(hives) 

1995 

outturn 

quantity 
(hives) 

total cost 
(ECU'OOO) 

hives 

7 or 10(1) 
8.453 or 
12.08(2) 

100.000 

85.304 

597 

100.000 

105 074(3) 

700 

50.000 

47.663 

575,77 

(1) Regulation (EC)  No 3063/93 of 5 November  1993. 

(2) Regulation  (EC)  No 2362/95  of 9 October  1995. 

(3) Aid payable In respect of up to 100 000 hives only. 

In  1993  and  1994  respectively,  1  325  and  1  732  bee-keepers  were  granted  the  aid.  In 
1995, five groups comprising 711 members received the aid after  their programmes were 
approved by the national authorities. 

4.  EAGGF  GUARANTEE  SECTION  EXPENDITURE  ON IMPLEMENTATION  OF THE  MEASURES 

The  costs  shown  in  Chapter  3  and  set  out  in  the  tables  in  Annexes  3  and  4  are 
calculated  per  calendar  year  on  the  basis  of  the  figures  provided  by  the  Greek 
authorities.  In view of the time needed by the latter to check and declare expenditure to 
the  Commission  on  the  one  hand,  and  of  the  lack  of  correspondence  between  the 
calendar  year  (for  implementing  the  measures)  and  the  budget  year  (16 October  to 
15 October  of the following  year)  (for  payments by the EAGGF Guarantee Section) on 
the  other,  expenditure  declared  and  charged  to  the  EAGGF  Guarantee  Section  per 
budget year  in  1993 and  1994 is as  follows. 

12 

Table 13 

products 

•xpendfeure declared  and  charged 

(ECUmilHon) 

1983 

1994 

1995 

plant 

animal 

total 

0 

0 

0 

16,8 

0,7 

17,5 

20 

0,9 

20,9 

The  EAGGF's  contribution  to the cost  of the  supplies  amounts  to  90% of  the  total  in 
Annex 3. 

5.  DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES 

(1) 

Notwithstanding  Articles 5,  6,  7,  10 and  19 of  Regulation  (EEC)  No  2328/91 
on  improving  the  efficiency  of  agricultural  structures5,  investment  aid  for 
agricultural holdings located in the smaller Aegean islands  is granted under the 
following conditions: 

-  the  investment  aid scheme can be  applied to farmers  who do  not practise 
farming  as  their  main  activity  but  draw  at  least  25%  of  their  overall 
income from farming their holdings and whose farms do not require more 
than  the  equivalent  of  one  man-work  unit  (MWU)  as  long  as  the 
investments  planned  do  not  exceed  ECU 25 000.  Except  for  local 
specialities, all food produced must be for local consumption; 

-  simplified  accounts must be kept; 

-  on  family  pig  farms,  the  limits  laid  down  by  Regulation  (EEC) 
No 2328/91  need  not  be  met.  However,  once  the  plan  has  been 
completed,  the  equivalent  of  at  least  10% of  the  food  consumed  by  the 
pigs must be produced on the holding; 

- 

in  the  case  of  egg  and  poultry  production,  investments  are  allowed  on 
family holdings; 

-  the maximum aid for investments is 55% for any type of investment; 

' 

-  the compensatory allowance may be increased to ECU  180.5/LU  for up to 
a  maximum  of  ECU 3 540  per  holding  in  1993  and  this  may  be  granted 
for  all  vegetable  crops,  as  long  as  they  are  produced  in  a  manner 
compatible with the requirements of environmental protection; 

OJL  218, 6.8.1991, p.  1. Last amended  by Regulation  (EEC) No. 950/97 (OJ. L  142, 2.6.1997,  p. 1). 

13 

-  when  the  compensatory  allowance  for  all  the  less-favoured  areas  is 
calculated,  account  will  be taken of  cows  whose  milk  is  intended  for  the 
market within that region. 

(2) 

Notwithstanding  the second subparagraph of  Article  17(3) of Regulation (EEC) 
No 4253/88,  the Community  contribution can be  increased  to over  50% in the 
case  of  investments  in  the  processing  and  marketing  of  certain  agricultural 
products with a view to improving the living conditions of the inhabitants. 

Progress in implementation 

Table 14 

1993 

estimated  additional 

number 

cost to EAGGF 
(ECU '000) 

number 

1994 
estimated additional 
cost to EAGGF 
(ECU '000) 

number 

1995  . 
estimated additional 
cost to EAGGF 
(ECU '000) 

improvement plans for 
non-farmers 

improvement plans for 
farmers with 65% aid 

improvement plans for 
farmers with 55% aid 

improvement plans for 
poultry production 

improvement plans for 
pig production 

young farmers setting up 
in farming with 0.5 MWU. 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

77 

0 

357 

0 

0 

4 

163 

69 

0 

8 

65 

381 

0 

0 

0 

1 

0 

50 

compensatory allowance 

15.000 

2.800 

15.000 

2.980 

8 593(1) 

processing/marketing 

0 

0 

0 

0 

0 

Total 

2.800 

3.208 

(1 ) The aid for recipients In the noma of Klklades was paid In 1696. 

457 

80 

828 

23 

0 

248 

1.280(1) 

0 

2.916 

As  from  1993  the  derogation  in  respect  of  the  compensatory  allowance  has  not been 
applied.  In  1994,  certain  improvement  plans  based  on  the  corresponding  derogations 
were approved and use was made of  all the derogations  in  1995, with the exception  of 
improvement  plans  for  pig  production  and  the  derogation  for  processing/marketing, 
although there was provision for the latter in the national OP for 1994-99. 

6.  NATIONAL SYSTEM OF CONTROLS 

j  With  a view  to  effective  monitoring  of  aid  for  supplies,  an  interministerial  Decision 
(No 443790 of 22 December  1993) specifying  the supporting documents to accompany 
the products  was published.  It designates  the bodies  responsible  for  controls  and lays 
down the method of payment and the rules  for checking  that the aid is actually passed 
on  to  the  end  user.  This  procedure  is  applied  in  all  cases  as  regards  the  supporting 
documents.  Sampling  checks are carried out by the regional  offices  of  the Ministry  of 
Agriculture. 

14 

In the case of measures to support local products,  specific  administrative acts covering 
each activity  were published on the implementation of the measures  and the procedure 
for  granting the aid.  Controls  involve general  administrative  and on-the-spot  sampling 
checks. 

The checks conducted and the results are set out in Table  15 below. 

15 

1  prvfoctur* 

Year 

application*, ate.)  or 

cation*,  quantttJe* 

IrrafluJarHlaa  oba*rv»d 

R e m a r k* 

Type of  m * * * u r* 

(number  (ha, t), 

pareantage of  appli 

Number  of 

SV/TRAD/EGEE/RA85**  2 

• u p p I lM 

local  production 

check*  conducted 

or areee  checked 

euppilea 

local  production 

f 

It  Lesvos 

i  1 
| 
J I 
I 
I 
I 
| 

2 
1994 

3 

4 

Anime!  fudtngatufts 

fruit  and  vegetables 

5 

181 

otlv*grov«* 

17 379eppUealbfla  (44.200 h 

vln*yardi 

potato** 

Mv*s 

167 application* 

176 (83.66  ha) 

199 application* 

•ucMereow* 

661  applications (2  630  h*ad) 

1996 

Sugar,  fruit  and  vegetables 

animal  faadlngaluffi 

mat*  bovto*  animal* 

695  application* (2  775  h*ad) 
4 

ollv*grov** 

1  906 application* (166.7  ha) 

2.  Samoa 

1994 

Animal faadlnoatufhi 

(run and  vagalabla* 

sugar 

vineyard* 

potatoes 

hrv*s 

storage of  c h * * ** 

ollvagrova* 

vineyards 

hives 

potato** 

Sugar, fruit and  vegetal* 

aoalng o(  win* 
i* 

1996 

animal faadlngatuffa 

176  appUcatlona 

36  applications (2.3  ha) 

6  application* 

2661 
10 
16 
6 
300 
230 
40 
10 
4 

27 

t 
100% 

100% 

10% 
10% 
100% 

100% 
6% 

100% 
10% 
10% 
10% 
100% 
10% 
10% 
10% 
3,6% 
10% 
10% 
60% 
100% 

16% 

7 
0 

0 

9 

Administrative  check 

(*> 

0 
0 
0 

146  application* 
0 
10 rejected (63.6  ha) 
0 
0 
0 

Adminletratfce *  on-the-epot  check 

On-the-epot  check 

On-the-spot  check 

On-the-spot  check 

On-ttie-eput  check 

On-th*-apot  check 

AdrnWetrattw  check 

(*)  payment*  suspended  becauaa 

o< eupporUng document* 

76 
0 
10 
0 
0 

0 
0 
0 
0 
0 

On-the-epot  check 

On-the-spot  check 

On-the-epot  check 

On-tha-apot  check 

On-the-epot  check 

AdmWetratlve check 

AdrnWatrallva  check 

Admlraatratlva check 

AdrranWratlva  •  on-tha-apot check 

Administrative  •  on-the-spot  check 

AAraraatretlve  •  on-tha-apot cheek 

AdmWetratlva  •  on-tha-apot  check 

Administrate*  •  on-tha-apot  check 

8.6% 

iiesiiirieaaWailaai  -*- 

-* 

3.  Dodecanese 

1994 

Animal faadmgtTuBl1 

•ugar, whaat, 

potatoes 

1996 

Animal feedlngstufls 

•ugar,  wheal. 

potato** 

( K K l du 

1994 

Whaat,  animal 

faadlnaaluffa 

oMv* groves 

7 
14 400  application* (16 016  ha 

cracks:  1 4 64 

sucMercows 

667 application* (3  066  haad) 

10.31% 

100% 

mala bovln*  animal* 

667  application. (2  339  haad) 

100% 

ollv* grove* 

potato** 

vtnayard* 

66 
1 4 78 ha 

69.9 ha 

1 1 6 4 .6  ha 

mat* bovln*  animal* 

2 017  haad 

aucMareow* 

okV*grova* 

potato** 

vineyards 

ageing of wine 

hlva* 
•udder  cow* 

2  016  haad 
22 
61 
761 
691 
212 
1 
76 
1 4 28 

mat* bovln*  animal* 

1.671 

1995 

Animal fMdlngatuITi 

whaal 

6  Khtot 

1994 

Animal feedlngstuffs, 

wheal. 

potato** 

augar 

private atorag* o( 

c h * * ** 

oHvagrova* 

61 
6 
6 
6 
6 
application* for  10 459  h« 

91  applications (46.3  ha) 

14 appUcatlons (3.86  ha) 

28  applications (10.46  ha) 

1996 

Animal  faadlngatuffa. 

whaat 

polatoM, 

augar 

10 

olive groves 

potato** 

6 400 application* (7 448  ha) 

16lapptlcatlona(81.4ha) 

B.  Evro, (Mind 
of  Samolhrace) 

7.  Khalkldlkl 

1994 

1996 

1994 

1996 

hrves 

2 

Animal feedlngrtun's 

oHve groves 

12 
7  application* (10.19  ha) 

6.  E w le  (Wand 

1994 

Skyros) 

9  MagnMa 

1994 

Whaal 

1995 

Wheal 

lO.Kavala 

1994 

Animal  feedlngstufls, 

whaat, 

fru*  and  vegetables 

1995 

Animal feedlngslufrs, 

whaat, 

fruN and  vagalabla* 

I I M r e ea 

1994 

oHvagrova* 

674  application* (69 chock*) 

hlva* 

27 application* (1 261 hrves) 

oHvagrova* 

suckfar oow* 

oHva groves 

aucKlar cow*  and 

mat*  bovlna animal* 

4 

126 appUcatlona 

4 
2 
167 

4 
11 

7 

16 

oHvagrova* 

appUcatlona (6 716.6  ha) 

14 
6 
16 

1 216 eppHsatlena 

oHvagrova* 

oHvagrovu 

sucklsroows 

mala  bovlna  animal* 

1995 

Whaat 

4001 

oHvagrova* 

•ucUaroow* 

mat*  bovlna  animal* 

1 336 aaaHcatbne (1 4 6 18  ha) 
124 
91 

10,60% 
10% 
20,80% 
12% 
100% 

100% 
11% 
12% 
10% 
92% 
11% 
100% 
12% 
100% 

100% 
2% 
3% 

100% 
3% 
3% 
3% 
3% 
10% 
10% 

10% 

10% 

6% 

10% 

10% 

10% 

100% 

10% 
100% 

10% 

100% 

10% 

100% 

45% 

38% 

6 0% 
11% 

10% 

1 1% 

100% 

100% 

12% 
100% 

100% 

3 

0 
0 

0 

0 
0 
0 
0 

0 

0 

0 

0 

0 

0 

AaWsMaWttNt  •  OfrlhO-OpOt ChOCk 

0 2 1 26  cows  found 

The  aM v an canceled  tor  the 

O  2  128 bovkw  aramala found. 

Tho on  VM  CAnot*tod for  tho 

Ol>thO-OpQt ChOCk 

O f M h O ^ C h O C fc 

Oivtfi*-opot chock 

On-tho-opoi chock 

Oi>4ho*opo1 chock 

AflTWaMTtlaWt ChOCk 

AaBntWetOYBOVO ChOCk 

MkwiMrooVo •  otvlho-opot chock 

MntnK/mk/% 

•  Gt>4ho-opo1 chock 

ALaOnWOYOiiVO *  Oft IhO  Opot chock 

AdnynMnMvs •  oo tho  opot chock 

AwniiiWrativo •  oiMhOHOpot chock 

AOJIWOWOOVO  *  OfMho^Opot chock 
AtwIWMsXObVO •  Qt>-lhOaOPOt chock 

0 
C) 
o 

0 
0 
0 
0 
0 

31 
0 
0 
0 
1 
0 
0 

0 

Otvtta  o p*  chock 

Otvtho-opot chock 

Oft^NMCot  chock 

On  lh>  Opot ChOCk 

AAiMiMrotiVo chock 

*  apfU'-y'lrjns  ia)atlail 

(4 6  ha) »1  application 

10%  reduction 

On-tho-opot chock 

3  appHcallona rejected 

(1.088  ha) 

OtVthi  opot chock 

2  aMMcattons ralacMtf 

OfMhtvopot chock 

0 

0 

* 4 6 ( 1 0 % r o * i c t 8 9 n lo 

28 opckcoUono,  10 

oppaacoliono rojoctod) 

OMho-opot  chock 

SontpMnQ chock 

6  application rejected 

Ofv4no-opot chock 

( 81  ha) 

No chocks.  No  octMty 

o n W o n t o o f V n o u t i o ni 

Adnatattratlvo  chock 

0 
0 

0 

0 

12  application*  (21. Thi 

i 

0% 

0 

0 

* 

AnomaUoa war*  obaarvad  In raapact 

of  1 2 28  application* (1  111.16  h i) 

3  appHoatlons reiectaej 

3  aaoNoajloM rejected 
3 aptftoalwns rejected 

61  applloatlon* rafacted (163  ha) 

16 

For structural measures, the procedure applied for checks is the same as for the normal 
implementation of the measures. 

To be more precise: 

- 

in the case of improvement plans, the checks are applied to all investments; 

- 

- 

in the case  of  young  farmers,  each  individual  case  is examined  to  see. whether the 
recipient meets all the requirements, and 

in the case of  the compensatory  allowance,  both general administrative  and on-the-
spot sampling checks are applied. 

7.  CONCLUSIONS 

Regulation (EEC) No 2019/93 was adopted by the Council on 18 July  1993 and certain 
measures  in support  of  local  products  (measures  to support  stockfarming  and for  the 
continued  cultivation  of  areas  under  vines  and  olive  groves  and  honey  production) 
were applied from  1993. The supply measures were applied from 1994 only,  despite a 
50% rise in the aid to encourage speedy implementation. 

In  1994 and  1995  implementation of the supply  measures averaged 41.8% and 65.2% 
respectively  as against the forecast  supply  balances,  and 47.1% and 90.5% as against 
the  forecast  cost  for  those  periods,  though  the  rate  of  implementation  varied 
considerably from one  product  to  another.  The  highest  rate was  achieved  for  animal 
feedingstuffs,  flour and, to some extent,  sugar.  The lowest rate was recorded for  fruit, 
vegetables, potatoes and yoghurt. 

Generally,  implementation  of  the  measures  in  support  of  local  products  progressed 
satisfactorily,  with the exception of the measure for the production of fruit, vegetables, 
and  flowers,  which  was  not  implemented  at  the  end  of  1995,  although  the  aid  for 
supplies  of  fruit,  vegetables  and  potatoes  was  to  fall  progressively  in  order  to 
encourage  fast  development  of  local  production  of  such  products  with  a  view  to 
improving supplies of fruit and vegetables to the local market. 

Best  performances  were  achieved  on  the  one  hand  in  the  case  of  the  measures  to 
maintain  olive  groves,  where  an  increase  in  the  minimum  density  laid  down  for  the 
allocation  of  the  aid  was  applied  from  1995  (it  rose  from  50 trees/ha  to  80 trees/ha) 
and areas under  vines  for  the production  of  quality  wines psr,  and on the other hand 
for honey. 

/  Progress  in the implementation of the measures  for  fattening  male bovine animals and 
the  maintenance  of  suckler  cows  and  the  production  of  potatoes  for  human 
consumption and seed potatoes was fairly  satisfactory,  while it was poor in the case of 
the private storage of certain cheeses and liqueur wines owing to fast disposal of local 
production in those years. 

As  regards  the  derogations  concerning  structural  measures,  the  provisions  on 
derogations  from  Regulation  (EEC)  No 2328/91  on  improving  the  efficiency  of 
agricultural  structures  were  adopted  in  1993,  so  enabling  15 000  farmers  to  take 

17 

advantage of the derogation concerning the compensatory allowance.  The only measure 
where  no  progress  was  recorded  at 
the 
processing/marketing  of agricultural products. 

the  end  of  1995  concerned 

In  1994 and  1995,  a large number of  checks  were conducted by the Greek authorities 
to see whether the measures were applied properly. 

Overall  progress  in  the  programme  is  satisfactory,  initial  difficulties  in  starting  up 
having been overcome. 

The Greek  authorities  have presented requests  for certain measures to be  adapted. The 
Commission will  shortly define  its position with respect to these requests after drafting 
the general report on the economic situation in the islands in accordance with Regulation 
(EEC) No 2019/93. 

18 

ANNEX 1 

Regulations adopted at 31 December 1995 

1.  FRAMEWORK REGULATION 

•  Council  Regulation  (EEC)  No  2019/93  of  19  July  1993  introducing  specific 
measures  for  the smaller Aegean islands concerning certain agricultural products* !> 

• 

(l)0JL184,27.7.1993,p.  I. 

2.  DETAILED RULES OF APPLICATION 

(1) 

Specific  supply arrangements: 

-  Commission  Regulation (EEC) No 2958/93 of 27 October  1993 laying down detailed 
rules  for  the  application  of  Council  Regulation  (EEC)  No  2019/93  as  regards  the 
specific  arrangements for the supply of certain agricultural products 

(1) OJL 267, 28.10.1993, p  4. 

-  Commission  Regulation  (EC)  No  3163/93  of  17  November  1993  establishing  the 
forecast  supply  balance  as  part  of  the  specific  arrangements  for  the  supply  of  milk 
products  to  the  smaller  Aegean  islands(,),  as  amended  by  Commission  Regulation 
(EC)No3004/94(2) 

(1 ) OJ L 283, 18.11.1993, p. 18. 
(2) OJL 317,  10.12.1994, p. 4. 

-  Commission  Regulation  (EC) No  1802/95 of 25 July  1995 amending the Regulations 
that  fixed,  prior to  1 February  1995, certain prices and amounts in the market  in milk 
and  milk products of which  the value  in ecus was adapted  as a result  of the  abolition 
of the correction  factor  for agricultural conversion rates 

(l)OJL  174, 26.7.1996, p. 27. 

-  Commission  Regulations No  1445/94 of 23 June  19940), and No  1731/95 of  14 July 
1995(2) establishing  the sugar  forecast  supply balances to the smaller Aegean  islands 
for  1994/95 and  1995/96 

(l)OJL  157. 24.6.1994, p 7. 
(2) OJL  165,  15.7.1995, p. 4. 

-  Commission Regulation (EC) No 3254/93 of 26 November  1993 laying down detailed 
rules  for  the  application  of  Council  Regulation  (EEC)  No  2019/93  as  regards  the 
specific  supply  arrangements  for  certain  fruits  and  vegetables  for  the  benefit  of  the 
smaller  Aegean  islands*1), as  amended  by  Regulations  (EC)  No 2747/94*2> and  (EC) 
No 3128/94(3) 

(1) OJL 293, 27.11.1993, p. 34. 
(2) OJL 290,  11.11.1994, p. 8. 
(3) OJL 330. 21.12.1994, p. 45. 

-  Commission  Regulation (EC) No 822/94 of  13 April  1994 adjusting  the CN codes  for 
apples  listed  in  the  Annex  to  Council  Regulation  (EEC)  No  2019/93  introducing 

\ 

19 

specific  measures  for  the  smaller  Aegean  Islands  concerning  certain  agricultural 
products (') 

(l)OJL 95,  14.4.1994, p. 1. 

-  Commission Regulation (EC) No  1363/95 of  15 June 1995 amending the Regulations 

that fixed, prior to  1  February  1995, certain prices and amounts in the market in  fruit 
and vegetables and the market in processed fruit and vegetable products, of which the 
value  in  ecus  was  adapted  as  a consequence  of  abolishing  the  corrective  factor  for 
agricultural conversion rates*1) 

(l)OJL132,  16.6.1995, p. 8. 

-  Commission Regulation (EC) No 825/94 of 13 April 1994 adjusting the CN codes for 
apples  listed  in Annexes  to Regulation  (EC) No  3254/93  laying down detailed rules 
for the application of Council Regulation (EEC) No 2019/93*1) 

(l)OJ  L95,  14.4.1994, p.7. 

-  Commission Regulation (EC) No 3175/94 of 21 December 1994 laying down detailed 
rules for application for the specific  arrangements for the supply of cereal products to 
the smaller Aegean islands and establishing the forecast supply balance*1). 

(l)OJL274,6.11.1993,pl2. 

-  Commission  Regulations  (EEC)  No 3173/94  of  21  December  1994^)  laying  down 
detailed rules of application for the specific  measures for the smaller Aegean islands 
with regard to the special arrangement for the supply of dried fodder 

(l)OJL 335, 23.12.1994, p. 51. 

-  Council Regulation (EC) No  150/95 of 23 January  1995 amending Regulation (EEC) 
No  3813/92  on  the  unit  of  account  and  the  conversion  rates  to  be  applied  for the 
purposes of the common agricultural policy*1) 

(l)OJL22,31.1.1995,pl. 

(2)  Measures to support local products 

-  Commission Regulation (EEC) No 2889/93  of 21  October  1993 laying down certain 
detailed  rules  for  the  application  of  Regulation  (EEC)  No  2019/93  as  regards  the 
supplements  to  the  special  premium  for  producers  of  beef  and  veal  and  to  the 
premium for maintaining suckler cows*1) 

(1) OJL 263, 22.10.1993, p 8. 

Commission Regulation (EC) No 2417/95 of  13 October 1995 updating and amending 
Regulations  in  the  beef  sector  fixing  before  1  February  1995  certain  prices  and 
amounts  whose  values  in  ecus  have  been  adjusted  because  of  the  abolition  of  the 
corrective factor in agricultural conversion rates*1) 

(l)OJ  L 248,  14.10.1995, p 39. 

-  Commission Regulation (EC) No 3393/93 of 10 December 1993 laying down detailed 
rules governing  the granting  of private storage aid for certain cheeses  manufactured 
on the smaller Aegean islands*1) 

( 1 ) OJ L 306,  11.12.1993, p 32. 

20 

Commission Regulation (EC) No 3253/93 of 26 November 1993 laying down detailed 
rules  for  the  application  of  Council  Regulation  (EEC)  No  2019/93  as  regards  the 
support  measures  for  local  products  for  the  smaller  Aegean  islands  in  the  fruit, 
vegetable and flower sectors*1) 

(l)OJ  L 293,27.11-1993, p 28. 

Commission  Regulation  (EC)  No  3404/93  of  10  December  1993  on  rules  for  the 
application  of Council  Regulation  (EEC) No  2019/93  introducing  specific  measures 
for  the  smaller  Aegean  islands,  as  regards  the  growing  of  potatoes  for  human 
consumption and seed potatoes*1) 

(l)OJ  L310,  14.12.1993,p7. 

Commission Regulation (EC) No 3112/93 of 10 November 1993 laying down detailed 
rules  for  the  application  of  the  specific  aid  arrangements  for  the  smaller  Aegean 
islands in respect of areas under vines and the private storage of liqueur wines*1) 

(1)0JL278,  11.11.1993, p. 52. 

Commission  Regulation  (EC)  No  2537/95  of  30  October  1995  amending  the 
Regulations  that  fixed,  prior to  1 February  1995,  certain  prices  and amounts  in the 
market  in  wine,  of  which  the  value  in  ecus  was  adapted  as  a  consequence  of 
abolishing the corrective factor for agricultural conversion rates*') 

(1) OJL 260, 31.10.1995, p. 10. 

Commission Regulation (EEC) No 2837/93 of  18 October 1993 laying down detailed 
rules for the application of Council Regulation (EEC) No 2019/93 with regard to the 
maintenance  of  olive  groves  in  traditional  olive-growing  areas*1),  as  amended  by 
Regulations (EC) No 3499/93*2) and (EC) No 2813/94*3) 

(1) OJL 260,  19.10.1993, p 5. 
(2)OJ L 319, 21.12.1993, p 22. 
(3)OJL298,  19.11.1994,p. 24. 

Commission Regulation (EC) No 3063/93 of 5 November  1993 laying down detailed 
rules for the application of Council  Regulation (EEC) No 2019/93 with regard to the 
aid scheme for the production of honey of specific quality*') 

(1) OJL 274, 6.11.1993, p 5. 

Commission  Regulation  (EC)  No  2362/95  of  9  October  1995  amending  Council 
Regulation (EEC) No 2019/93 which fixed before  1  February  1995 the amount of aid 
for the production  of honey  for the smaller Aegean islands, whose value in ecus has 
been  adapted  due  to  the  abolition  of  the  corrective  factor  of  the  agricultural 
conversion rate*') 

(1)0JL24I,  10.10.1995, p. 12. 

21 

3. 

D É R O G A T I O NS  A P P L I C A B LE  TO  S T R U C T U R AL  M E A S U R ES 

-  Commission  Decision  of  4  May  1994  concerning  greater  efficiency  in  agricultural 
structures  in Greece  (smaller Aegean islands)  in accordance with Regulation (EEC) 
No 2328/91 

-  Commission  Decision of 28 March  1995 on improving the efficiency  of agricultural 

structures in Greece in accordance with Regulation (EEC) No 2328/91 

22 

Annex 2 

Administrative acts adopted to implement the measures 

1.  SPECIFIC SUPPLY ARRANGEMENTS 

-  Ministerial  Decision No 443790 of 22 December  1993 on the supporting documents 
required  for  payment  of  aid  for  supplies  of  certain  agricultural  products  to  the 
smaller Aegean islands (Greek OJ B No 927 of 23 December  1993) 

-  Ministerial  Decision  No  186854 of  19 July  1995 amending  Decision  No 443790 of 
22  December  1993  on  the  procedures  and  the  supporting  documents  required  for 
payment  of  aid  for  supplies  of  certain  agricultural  products  to  the  smaller  Aegean 
islands 

-  Administrative  Act  No  2/94  laying  down  strict  rules  on  the  transport  and  normal 
marketing  of  subsidised  products  as  regards  the  marking  of  the purchase  price  on 
the  shipping  document,  as  amended  and  supplemented  by  Administrative  Acts 
Nos 4/94 and 8/94  (Greek OJ No 244 of 7 April  1994) 

-  Administrative  Act  No  4/94  on  markings  on  packs  of  yoghurt  qualifying  for 

consumption aid in the Aegean islands 

-  Administrative  Act  No  5/94  of  19  May  1995  on  markings  on  packs  of  yoghurt 
qualifying  for  consumption  aid  in the Aegean  islands  (Greek  OJ Section  2  No 489 
of  1  June  1995) 

-  Ministerial  Decision  No  A2-1292  of  22  March  1994  on  the  marketing  of  animal 
feedingstuffs  qualifying  for aid for supplies to the Aegean islands (Greek OJ No 244 
of 7 April  1994) 

-  Ministerial  Decision  No  A2-2201  of  15  April  1994  on  the  marketing  in  bulk  of 
animal feedingstuffs  in the Aegean islands (Greek OJ No 313 of 25 April  1994) 

- 

[Circular  No  145348  of  26  January  1996 on the specific  arrangements  for  supplies 
of certain agricultural products to the smaller Aegean islands] 

2.  MEASURES TO SUPPORT LOCAL PRODUCTS 

-  Stock/arming: 

Ministerial  Decision  No  190019  of  1 July  1994 on additional  aid  for  the fattening  of 
male  bovine  animals  and  the  supplement  to  the  premium  for  the  maintenance  of 
suckler cows (Greek OJ No 536 of 7 July  1994) 

-  Private storage of certain locally manufactured cheeses: 

Ministerial  Decision No  190080 of  1  July  1994 on the supporting documents for entry 
into and removal from storage and additional procedures relating to aid for the private 

23 

storage of certain locally manufactured  cheeses  in accordance with Regulations (EEC) 
No 2019/93  and (EC) No 3393/93 

-  Potatoes for  human consumption and seed potatoes: 

Circular  No  166309  of  26  February  1994  on  procedures  for  the  granting  of  aid per 
hectare to potato producers in the Aegean islands 

-  Continued cultivation of areas under vines for  the production of quality wines psr 

in traditional areas of production: 

Circulars  No  444236  of  1  December  1993  and  No  326567  of  16  March  1994 
concerning  the  implementation  of  the  specific  aid  scheme  for  areas  under  vines 
producing  quality  wines  psr  in the  smaller  Aegean  islands  under  Council  Regulation 
(EEC) No 2019/93 

Ministerial  Decision  No  328321  of  14  March  1995  on  the  granting  of  aid  for 
continued  cultivation  of  areas  under  vines  for  the production  of  quality  wines  psr in 
the smaller Aegean islands under Council  Regulation (EEC) No 2019/93  (Greek OJ B 
211  of 23 March  1995) 

-  Ageing  of locally produced liqueur wines: 

Ministerial  Decision  No  189304  of  28  June  1994 on procedures  for  granting  aid for 
the ageing of liqueur wines in the smaller Aegean islands 

-  Maintenance  of olive groves: 

Circular  No  212538  of  7  December  1993  on  the procedure  for  granting  flat-rate  aid 
for the maintenance of olive groves in the smaller Aegean islands 

-  Honey: 

Circular  No 212538  of 7 December  1993 on procedures  for granting  aid per hive  for 
the production of honey of specific  quality (Greek OJ B 215 of  1 April  1994) 

Decision  No  329361  of  23  March  1994  on  the  authority  responsible,  the procedure, 
the  supporting  documents  and  controls  for  implementation  of  the  specific  procedure 
for  granting  aid for the production of  honey  of  specific  quality  (thyme)  in the smaller 
Aegean islands (Greek OJ B 215 of  1 April  1994) 

Ministerial  Decision  No  344487  of  17 April  1995  on the approval  of  programmes  of 
initiatives of honey producer groups for  1995 

-  Management and controls: 

Agricultural  Ministry  Circular  No  173440  of  27  March  1995  on  the  Integrated 
Administration  and  Control  System  and  the  rules  for  the  application  of  certain 
Community aid schemes 

24 

3.  DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES 

-  Ministerial  Decree  No  112  of  27  December  1993  on  the  implementation  of 
Regulation (EEC) No 2019/93  introducing specific measures for the smaller Aegean 
islands concerning certain agricultural products. Derogations applicable to structural 
measures: improvement plans and compensatory allowances 

-  Ministerial  Decree  No  149 of  30  November  1994 on the aid  scheme  for  mountain 
and  hill  areas  and  for  less-favoured  areas  for  1994  (compensatory  allowance) 
pursuant  to  Council  Regulation  (EEC)  No  2328/91  on  improving  the  efficiency  of 
agricultural structures 

-  Ministerial  Decision  No 415312/6255  of  29  September  1994 on procedures  for the 
inclusion of  investment plans in Council  Regulation (EEC)  No 866/90 of 29 March 
1991  on  improving  the  processing  and  marketing  conditions  for  agricultural 
products,  as  amended  by  Regulation  (EC)  No  3669/93,  and  the  procedure  for 
granting national and Community aid 

-  Circular  No  432922/7249  of  12  December  1994  on  the  implementation  of 

Regulation (EEC) No 866/90 for the period  1994-99 

-  Ministerial Decision No°372828/10012 of  11 December 1996 on incentives for young 

farmers to set up in farming under Regulation (EEC) No 2328/91 

-  Ministerial Decision No°252 of 11 December  1996 on incentives and aid for speeding 

up the adjustment of agricultural structures under Regulation (EEC) No 2328/91 

25 

Aid for supply - summary table 
( The EAGGF Guarantee Section covers 90% of the amounts mentioned in the table.) 

ANNEX 3 

Table 16 

product 

1MS 

1994 

(ECU VO0) 

1995 

unit 
aid 
(ECU/t) 

forecast 

outturn 

balance 

outturn 

balance 

outturn 

quantity 
(t) 

total 
cost 

quuntlt 
(t) 

total 
cost 

quantity 
(t) 

total 
cost 

quantity 
(t) 

total 
cost 

quantity 
(t) 

total 
cost 

quantity 
(t) 

total 
cost 

(a) yoghurt 

of which: 
group A 
group B 

(b) sugar 

of which: 
group A 
group B 

(c) wheat flour 

of which: 
group A 
group B 

total 

1.750 

67,5 

0 

0 

7.000 

180,0 

15(1)(2) 
30(1 )(2) 

500 
1.250 

11.25 
56.25 

2.000 
5.000 

30,0 
150,0 

2,3 

0.0 
2,3 

0,07 

4.000 

105,0 

34,0 

0,00 
0,07 

1.000 
3.000 

15,0 
90,0 

0 
34,0 

1,2 

0 
1.2 

total 

9.000 

354,38 

0 

0 

12.000 

315,0 

8131,0 

240,00 

12.000 

135,0 

8.139,5 

288,8 

15(1)(2) 
30(1 )(2) 

2.250 
6.750 

50,63 
303.75 

3.000 
9.000 

45,0 
270,0 

265,0 
7866,0 

4,00 
236.00 

3.000 
9.000 

45,0 
90.0 

237,0 
7.902,5 

4.3 
284.5 

total 

10.000 

393,75 

0 

0 

40.750 

1072,5 

38.018,0 

1.032,00 

40.750 

1.072,50 

38.805.5 

1.252,0 

15(1)(2) 
30(1 K2) 

2.500 
7.500 

56,25 
337,50 

10.000 
30.750 

150,0 
922,5 

7.266,0 
30.750,0 

109.00 
923,00 

10.000 
30.750 

150.0 
922,5 

8.055.5 
30.750,0 

145,0 
1.107.0 

(d) animal feedlngstuffs 

total 

17.450 

695,25 

15(1)(2) 
30(1)(2) 

4.000 
13.450 

00,00 
805,25 

of which: 
group A 
group B 

- grain cereals 

group A 
group B (6) 

150,(2) 
30(1 )(2) 

2.500 
7.700 

56,25 
346,50 

- residues and waste of 
food  industry 

group A 
group B 

15(1)(2) 
30(1 K2) 

250 
4150 

5,63 
186.75 

- Preparations for 
animal feed 
of which: 

group A 
group B 

15(1)(2) 
30(1 )(2) 

250 
1.600 

5,63 
72,00 

- lucerne and fodder 

group A 
group B 

15(1)(2) 
30(1 )(2) 

(e) fruit, vegetable*" and 
potatoes, of which: 

1.000 
0 
20.834 

22,50 
0 
866,54 

group A 
group B 

5(1)(2)(3) 
0(1)(2)(3) 

2.711 
18.123 

61,00 
805,54 

of which: 

total 

group A 
group B 

59.034 

2.387,41 

11.961 
47.073 

269,12 
2.116,29 

0 

0 
0 

0 
0 

0 
0 

0 
0 

0 
0 
0 

0 
0 

0 

0 
0 

0 

0 
0 

0 
0 

0 
0 

0 
0 

0 
0 
0 

0 
0 

70.000 

1.860,0 

59.248,10 

1.641,00 

82.000 

2.220,0 

58.577,0 

1.994.1 

16.000 
54.000 

240,0 
1.620,0 

7.480,90 
51.767.20 

113,00 
1.528,00 

16.000 
66.000 

240.0 
1.980,0 

6.170.0 
52.407.0 

111.0 
1883.1 

10.000 
30.750 

150,0 
922,5 

5.319,5 
29391.8 

80.00 
882,00 

10.000 
42.750 

150,0 
1.282,50 

4.627,0 
29.739.0 

83,3 
1067,0 

1.000 
16.500 

15,0 
495,0 

680,5 
17.336,7(4) 

10,00 
495,00 

1.000 
16.500 

15.0 
495.0 

850,0 
16058.0 

15.3 
578.1 

1.000 
6.500 

15.0 
195,0 

699,1 
4.756.70 

11,00 
143.00 

1.000 
6.500 

15,0 
195.0 

657.0 
6360.0 

11.8 
229.0 

4.000 
250 
125.000 

60,0 
7,5 
2.804,70 

781,8 
282(5) 
1.123 

12.00 
8.00 
25,20 

4000 
250 
28.818 

60 
7.5 
464,7 

36.0 
:$o.o 
3.746,0 

16.269 
108.731 

195,2 
2.609,5 

148 
975 

1,80 
23,40 

6000 
22.818 

54,0 
410.7 

0 
3.746.0 

0.6 
9 
80,9 

0 
80,9 

0 

254.750 

6.232,2 

106.522,4 

2.938,27 

167.568 

3.997,2 

109.302,0 

3.617.0 

0 
0 

47.2G9 
207.481 

660,2 
5.572,0 

15.161,9 
91.360,5 

227.80 
2.710,47 

36.000 
131.568 

504,0 
3 493,2 

14 462,5 
94.839.5 

260.3 
3.356,7 

(1) Regulation (EEC) No 2958/93. The aid la Increased by 50% for the first year. 

(2) Regulation (EC) No 3004/94 of 9 December 1994. 

(3) For 1994 and 1995 the aid payable equals 80% and 60% respectively of the aid for 1993. 

(4) Aid payable In respect of up to 18 5001 only. 

(5) Aid payable In reaped of up to 2301 only. 

26 

ANNEX  4 
Summary table - aid for local production 

Table 17 

product 

1.Livestock  production 

bovine animals (ECU/head) 

- premium for fattening 

-  stickler cow premium 

total 
-  private storage of cheese (ECU/t/day) 
total 1 

2. Crop  production 

- aid for production of 

fruit and vegetables (ECU/1) 
- fruit and vegetables 
- potatoes 

- wine sector 

• aid per hectare (ECU/ha) 
- ageing of quality wines psr 

(ECU/hl/day) 

- olive-oil sector 

flat-rate aid (ECU/ha) 

unit aid 

forecast 
quantity 
(hsad.ha, 
hl,t, etc) 

1993 

quantity 

total 
cost 

(ECU '000} 

outturn 

1994 

quantity 

1995 

total 
cost 

quantity 

total 
cost 

40(1) 

40(1) 

2.28(2) 

5.000 

6.355 

254,2 

10.710 

428,40 

11.872 

474.88 

8.735 
15.090 
0 

349,4 
603,6 
0 
603,6 

8.060 
18.770 
210(3) 

322,40 
750,80 
41,84 
792,64 

9.921 
21.793 
484(4) 

396.84 
871,72 
146,12 
1.017,84 

500(5) 
500(6) 

3.200 

0 
0 

0 
0 

0 
1.202 

0,0 
601,0 

0 
1.484.00 

0 
895,97 

394.83(7) 

4.887,30 

1.929,6 

4.993,52 

1971.6 

5.199.55 

2.478.90 

0.0197(8) 

40.000 

2.000 

1.2 

2.154,00 

14,5 

2.154,00 

17.23 

120(9) 

•J3.020.40 

11.162,0 

100.390,00 

12.047,0 

90.473.40 

13.109.66 

- honey (ECU/ hive) 

7 or 10(10) 

100 000(11) 

85.304 

597,1 

105.074(12) 

700.0 

47.663.00 

575.77 

total 2 

grand total 

13.689,9 

15.334,1 

17.077.53 

14.293,5 

16.126,7 

18.095,37 

(1) The unit aid for 1995 is ECU 40 (Regulation (EC) No 2417/95). 
(2) The aid for 1995 ts ECU 2,75/t/day (Regulation (EC) No 1802/95). 
(3) Of which 2001 of feta cheese and 101 of ladotyrl cheese. 
(4) Of which 2101 placed in storage in 1994. 
(5) The aid for 1995 Is ECU 603.76/na. 
(6) The aid for 1995 is ECU 603 75/ha. 
(7) The unit aid for 1995 Is ECU 476.76/ha. 
(8) The aid for 1995 Is ECU 0.02370/hl/day. 
(9) The aid for 1006 Is ECU 144.0/ha. 
(10) The aid for 1006 Is ECU 12 08/hrve. 
( 11 ) Since 1096 aid has been payable for up to 60 000 hrves. 
(12) The aid was payable for up to 100 000 hives 

27 

ISSN 0254-1475 

COM(98) 292  final 

DOCUMENTS 

EN 

03  13  10  01 

Catalogue number  : CB-CO-98-303-EN-C 

ISBN 92-78-35966-1 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

Z%