1999/849/EC: Council Decision of 14 December 1999 relating to the granting of a national aid by the Austrian Government to small producers in less-favoured areas by virtue of Annex XV of the 1994 Act of Accession
Date: 1999-12-14
Institutions: Council of the European Union
Subjects: Austria, State aid, aid to agriculture, less-favoured agricultural area, monetary compensatory amount, smallholding

21. 12. 1999

EN

Official Journal of the European Communities

L 327/59

COUNCIL DECISION

of 14 December 1999

relating to the granting of a national aid by the Austrian Government to small producers in
less-favoured areas by virtue of Annex XV of the 1994 Act of Accession

THE COUNCIL OF THE EUROPEAN UNION,

(4)

(1999/849/EC)

Having regard to the Treaty establishing the European
Community, and in particular the third subparagraph of Article
88(2) thereof,

Having regard to the request made by the Government of the
Republic of Austria on 20 October 1999,

Whereas:

(1)

(2)

(3)

Article 151(1) of the 1994 Act of Accession provides
that the Acts listed in Annex XV shall apply in respect of
the new Member States under the conditions laid down
in that Annex; Annex XV, Chapter VII, Section ‘D. Struc-
tures’ paragraph 2(c) provides that by way of derogation
from Article 35 of Council Regulation (EEC) No 2328/
91 of 15 July 1991 on improving the efficiency of
agricultural structures (1), ‘the Republic of Austria may,
subject to authorisation by the Commission, continue to
to small producers
grant, until 31 December 2004,
which were entitled thereto in 1993 by virtue of
national legislation, national aid to the extent that the
compensatory allowance referred to in Articles 17 to 19
is not sufficient to compensate permanent natural handi-
caps. The aid granted in total to these producers must
not exceed the amounts granted in Austria in the afore-
mentioned year’;

On the basis of this derogation, after the entry into force
of the Treaty of Accession the Austrian Government
continued to grant national aid adjusted to take account
of the Community system of aids established since 1995
and due to remain in force until 2004;

On 26 October 1995, the Austrian Government notified
the Commission of the ‘Special Directive concerning the
granting of a compensatory allowance in less-favoured
areas and national aid’, seeking confirmation that the
method to be applied by the Austrian authorities for
granting the national aid between 1995 and 1998 and
for maintaining it until 2004 was valid;

In its Decision of 20 December 1995 (C(95) 3368)
relating to national aid, the Commission limited the
granting of national aid to holdings the size of which in
hectares of usable agricultural area did not exceed the
average size for Austria of all agricultural holdings run
on a full-time basis, on the one hand, and on a part-time
basis, on the other, and could in no circumstances
exceed 25 hectares; moreover that Decision is limited to
31 December 1999;

That Decision limits the application of the derogation
provided for in Annex XV, by excluding from national
compensation approximately 2 500 holdings which had
an area above the average area of 23 hectares for full-
time holdings that received aid and 6 hectares for part-
time holdings that received aid out of approximately
124 000 holdings in total that received aids;

The Commission's taking the definition of ‘small produ-
cer’ as a basis for setting a limit on granting this aid
means that not all small producers eligible in 1993
under Austrian law, on which the derogation was estab-
lished, can be compensated as from 1995;

The amount of national aid excluded by the Commission
Decision represents less than EUR 1 million, equivalent
to 0,5 % of the total Austrian national aid to holdings;

The flat-rate aid granted to holdings since 1995 and
planned to continue until 2004 does not exceed the
amount of aid granted in Austria in 1993;

(5)

(6)

(7)

(8)

(9)

The aid in question is unlikely to distort competition
within the Community;

(10) Owing to the abovementioned derogation for Austria,
all the beneficiaries of the national aid scheme working
holdings located in particular in mountainous areas or in
regions close to the Eastern border of Austria expected
no reduction in the overall compensation paid in 1993,
nor that it would be abolished, until 2004;

(1) Replaced by Regulation (EC) No 950/97 (OJ L 142, 2.6.1997, p. 1).
Regulation as amended by Regulation (EC) No 2331/98 (OJ L 291,
30.10.1998, p. 10). Article 35 of the old Regulation corresponds to
Article 37 of the new Regulation.

(11)

This being the case, there are exceptional circumstances
for considering the intervention planned by the Austrian
Government as compatible with the common market,
under the conditions provided for in this Decision,

L 327/60

EN

Official Journal of the European Communities

21. 12. 1999

HAS ADOPTED THIS DECISION:

Article 1

The scheme for maintaining the aids described in the ‘Special Directive concerning the granting of
compensatory allowances in less-favoured areas and national aid’ as forwarded to the Commission on 26
October 1995, shall be deemed compatible with the common market until 31 December 2004, providing
as it does that if the calculation of the compensatory allowance granted to a holding as from 1995 results
in a smaller amount of aid for a holding than it received under this scheme in 1993, the balance shall be
made up in the form of national aid.

This Decision is addressed to the Republic of Austria.

Article 2

Done at Brussels, 14 December 1999.

For the Council

The President

K. HEMILÄ