2000/167/EC: Commission Decision of 22 December 1999 approving a Finnish national aid programme implementing in particular Article 141 of the Act concerning the conditions of accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden (notified under document number C(1999) 5200) (Only the Finnish and Swedish texts are authentic)
Date: 1999-12-22
Institutions: European Commission
Subjects: Finland, State aid, accession to the European Union, aid programme, aid to agriculture

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Official Journal of the European Communities

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II

(Acts whose publication is not obligatory)

COMMISSION

COMMISSION DECISION

of 22 December 1999

approving a Finnish national aid programme implementing in particular Article 141 of the Act
concerning the conditions of accession of the Republic of Austria, the Republic of Finland and the
Kingdom of Sweden

(notified under document number C(1999) 5200)

(Only the Finnish and Swedish texts are authentic)

(2000/167/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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

Having regard to the Act of Accession of Austria, Finland and
Sweden, and in particular Article 141 thereof,

(5)

Whereas:

(1)

(2)

(3)

(4)

On 25 October 1999, Finland notified the Commission,
pursuant in particular to Article 143 of the Act of
Accession and Article 88 of the EC Treaty, a national aid
programme implementing in particular Article 141 and
comprising other related measures for regions A and B
and the Archipelago of regions A and B.

On 6 December 1999, Finland submitted an amended
version of the programme.

On 30 July 1996, following an earlier Finnish noti-
fication,
the Commission adopted Decision 97/428/
EC (1) approving a Finnish aid programme implementing
in particular Article 141 of
the Act concerning the
conditions of accession of the Republic of Austria, the
Republic of Finland and the Kingdom of Sweden and
other related measures,

Under the amended version of the notification submitted
by Finland, certain aid measures previously authorised
by the Commission in Decision 97/428/EC are discon-
tinued, other authorised aids are maintained, the dura-

(1) OJ L 184, 12.7.1997, p. 50.

tion of certain aids is extended to the end of 2003 and
certain new aids are introduced to apply from 1 January
2000 to 31 December 2003.

In Article 1(a) of Decision 97/428/EC, the Commission,
acting pursuant to Article 141 of the Act of Accession,
approved from 1 January 1997 to 31 December 2001 a
national aid for farmers with a development plan for
investments in primary production (on-farm agriculture
and horticultural activities) that do not entail an increase
of the total production capacity of the sector existing on
the date of adoption of that Decision (30 July 1996),
amounting at most to 50 % of the total cost of invest-
ments in the pigmeat, poultrymeat and eggs sectors and
to 75 % of that same cost in other sectors, subject to
compliance with the individual maximum limits laid
down by Commission Decision C(96) 733 of 19 April
1996. Article 1 (b) of Decision 97/428/EC also author-
ises aid to be granted for up to five years as an income
support where there is a change of production.

(6)

(7)

Finland has requested the Commission to extend the
authorisation of
this aid for investments in primary
production to 31 December 2003.

to Article 3 of
The data sent by Finland pursuant
Decision 97/428/EC indicates that this aid for invest-
ments in primary production helps, through structural
improvements,
existing
production patterns; the request to extend the duration
of this aid should be accepted for this reason.

to maintain and improve

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(8)

(9)

(10)

(11)

(12)

In Article 2 of Decision 97/428/EC, the Commission has
authorised certain aid measures for an indefinite dura-
tion in accordance with Article 88 of the Treaty.

In its notification, Finland has indicated that it intends to
discontinue some of these measures, but to maintain the
aid for the development of quality systems referred to in
Article 2(d) of Decision 97/428/EC and the additional
aids referred to in Article 2(e) of that Decision.

There is no reason to review the previous assessment of
the Commission that
these aids can be considered
compatible with the common market. These aids there-
fore continue to be authorised in accordance with
Decision 97/428/EC.

In its notification of 25 October 1999, Finland also
asked the Commission to approve, under Article 141 of
the Act of Accession,
from 1 January 2000 to 31
December 2003, certain direct payments to producers in
the animal husbandry, milk and horticultural production
sectors.

In accordance with Article 141 of the Act of Accession,
the Commission may authorise Finland to grant national
aids to producers so as to facilitate their full integration
into the common agricultural policy where there are
serious difficulties
resulting from accession which
remain after full utilisation of the provisions of Articles
138, 139, 140 and 142 and of the other measures
resulting from the rules existing in the Community.

(13)

In accordance with Article 137(3) of the Act of Acces-
sion, the period during which aid under Articles 138,
139 and 140 may be granted expired on 31 December
1999.

(18)

(19)

The Commission took the view in Decision 97/428/EC
that aid under Article 141 of the Act of Accession
inefficiencies that could be
should address structural
changed in order to facilitate the full
integration of
producers into the common agricultural policy.

In the light of experience, however, it appears that trans-
itional and degressive direct income payments may be
seen as a necessary complement to a structural adjust-
ment policy, providing that such payments are essen-
tially intended to accompany structural adaptation, do
not hinder the realisation of the necessary structural
changes and are limited to the period of time necessary.

(20) However, given the length of time necessary to achieve
long-term structural change, it is appropriate to set the
duration of the aid authorised by the present Decision to
the period expiring on 31 December 2003.

(21)

(22)

The total amount of production eligible for support
should be limited to that which was previously eligible
for aid pursuant to Article 138 of the Act of Accession.
The production in question is
than 1 % of
Community production in all the relevant sectors, and is
not therefore expected to have a serious effect on the
Community markets.

less

Finland should be required to provide a detailed report
on all measures and sectors concerned before 30 June
2003, including an assessment of the results of these
measures
in solving the serious difficulties and in
assisting the full integration of Finnish farmers in the
common agricultural policy.

(23) As regards the livestock sector, for reasons of adminis-
trative efficiency, Finland has asked to apply an aid per
livestock unit in certain cases rather than aid per kilo-
gramme or per animal,

(14) Article 142 of the Act of Accession does not apply to
the regions included in the national aid programme
notified to the Commission on 25 October 1999.

HAS ADOPTED THIS DECISION:

Article 1

(15) Due to climatic conditions, as well as to the small size of
the farms and the higher levels of fixed costs, the profit-
ability of agricultural production in Southern Finland is
very low.

The Commission authorises Finland to continue to grant the
aid referred to in Article 1(a) of Decision 97/428/EC until 31
December 2003.

(16)

The data sent by Finland shows that a sudden reduction
in support due to the expiry of aid under Articles 138,
139 and 140 of the Act of Accession would cause
severe problems in that reducing farmers' income signifi-
cantly would endanger the continuation of agricultural
production in Southern Finland.

(17) Although some improvement was achieved in recent
years, further structural adjustment of the farm sector in
Southern Finland is still needed in order to ensure the
effective integration of Finnish agriculture into the
common agricultural policy.

Article 2

The Commission authorises Finland to grant,

1.
from 1
January 2000 to 31 December 2003, the aid referred to in
Annex I, up to the maximum amount indicated in the table.

The aid referred to in paragraph 1 shall be granted within

2.
the following limits:

— for cows' milk: the individual references quantities of the
farmers concerned in accordance with Council Regulation
(EEC) No 3950/92 (1);

(1) OJ L 405, 31.12.1992, p. 1.

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— for bovine animals: the ceilings provided for in Council
Regulation (EC) No 1254/1999 (1) (Annexes I and II);

— for male bovine animals: 90 head per holding;
— for suckler cows and male bovine animals: the total number
of animals receiving aid cannot exceed a density factor
equal to 2 LU/ha of forage area;

— for ewes and goats: the individual limit allocated to produ-
cers in application of Article 10 of Council Regulation (EC)
No 2467/98 (2).

Article 4

No later than 30 June 2003, Finland shall provide a detailed
report on the application of
the measures authorised by
Decision 97/428/EC and by this Decision, and their effects on
the integration of Finnish agriculture into the common agricul-
tural policy.

This Decision is addressed to the Republic of Finland.

Article 5

Article 3

Done at Brussels, 22 December 1999.

The Commission authorises Finland to grant an additional aid
per bull during the adjustment period from January to June
2000, up to the maximum mentioned in Annex II, due to the
change in the aid system from slaughter-related aid to aid per
livestock unit.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ L 160, 26.6.1999, p. 21.
(2) OJ L 312, 20.11.1998, p. 1.

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ANNEX I

Unit

kg

kg

Maximum rate of aid
FMK/unit

2000

2001

2002

2003

0,45

0,37

0,43

0,355

0,415

0,345

0,405

0,335

LU

420

400

385

376

LU

2 210

2 120

2 050

2 000

LU

2 260

2 140

2 045

1 980

Milk

— Outer archipelago and mainland Åland

— Other areas of A- and B-regions

Suckler cows

A- and B-region

Male bovine animals

A- and B-region

Ewes and she-goats

A- and B-region

Bovines and ewes: supplement in archipelago to
the normal payment of A- and B-region
(includes dairy cows, suckler cows, male bovines,
other bovines and ewes)

LU

2 570

2 460

2 380

2 322

Pigmeat and swine

— Outer archipelago and mainland Åland

— Other areas of A- and B-region

Laying hens

— Outer archipelago and mainland Åland

— Other areas of A- and B-region

LU

LU

LU

LU

2 290

1 930

2 160

1 830

2 070

1 750

2 004

1 692

2 300

1 860

2 180

1 760

2 080

1 685

2 017

1 634

Other poultry

A- and B-region

Horses

A- and B-region

Heifers for slaughter

A- and B-region

LU

2 270

2 150

2 055

1 992

LU

2 115

2 000

1 910

1 852

animal

710

680

660

642

Greenhouses

m2

76

73

70

68

Horticultural product stores

— With thermal control

— Without thermal control

m3

m3

95

67

92

64

89

62

86

60

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Notes:

In the unit column,

‘LU’ means livestock unit

1. The following table is to be used when determining the average amount of livestock units (LU maximum):

including parent hens

Bovines six months to 24 months
Bovines over 24 months
Ewes
She-goats
Sows
Laying hens,
Parent ducks, broilers, geese or turkeys
Pheasant and mallard parents
Broilers
Horses, over six months
— Mares for breeding (incl. pony mares)
— Finnish horse
— One to three year old other horses and ponies

LU

0,6
1,0
0,15
0,48
0,7
0,013
0,026
0,013
0,0053

1,0
0,85
0,60

2. The following table is to be used when determining livestock units (LU) in the case of pigs and poultry intended for

meat production (at least the indicated number of slaughtered animals for one livestock unit):

13 slaughtered fattening pigs

550 slaughtered ducks
320 slaughtered geese
190 slaughtered turkeys
1 375 slaughtered pheasants
1 375 slaughtered mallards

1 LU
1 LU
1 LU
1 LU
1 LU
1 LU

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ANNEX II

Aid for bulls during the adjustment period from January to June 2000 due to the change in aid system from
slaughter-related aid to aid per livestock unit

Outer archipelago

January — February 2000
March — April 2000
May — June 2000

Mainland Åland Islands

January — February 2000
March — April 2000
May — June 2000

Other areas of A- and B-Region

January — February 2000
March — April 2000
May — June 2000

1 030 FIM/animal
655 FIM/animal
280 FIM/animal

740 FIM/animal
470 FIM/animal
200 FIM/animal

675 FIM/animal
430 FIM/animal
185 FIM/animal