Report from the Commission to the Council and the European Parliament on progress in implementation of the specific measures  for the smaller Aegean islands in 1996 and 1997
Date: 2001-02-07
Institutions: European Commission
Subjects: Aegean Islands, agricultural product, aid per hectare, aid system, supply, supply balance sheet

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.2.2001
COM(2001) 64 final

REPORT FROM THE COMMISSION TO THE COUNCIL
AND THE EUROPEAN PARLIAMENT

on progress in implementation of the specific measures
for the smaller Aegean islands in 1996 and 1997

REPORT FROM THE COMMISSION TO THE COUNCIL
AND THE EUROPEAN PARLIAMENT

on progress in implementation of the specific measures
for the smaller Aegean islands in 1996 and 1997

TABLE OF CONTENTS

1.

2.

3.

Introduction.............................................................................................................. 5

Measures provided for in Regulation (EEC) No 2019/93 .......................................... 6

Progress in implementation of the measures ............................................................. 6

3.1.

Specific supply arrangements ................................................................................... 6

(1)

(2)

(3)

(4)

(5)

Yoghurt .................................................................................................................... 7

Sugar........................................................................................................................ 8

Wheat flour .............................................................................................................. 8

Feedingstuffs............................................................................................................ 9

Fruit and vegetables................................................................................................ 10

3.2.

Measures to support local products......................................................................... 10

(1)

(2)

(3)

(4)

(5)

(6)

(7)

4.

5.

6.

7.

8.

9.

Livestock................................................................................................................ 10

Milk products ......................................................................................................... 11

Fruit, vegetables and flowers .................................................................................. 12

Potatoes.................................................................................................................. 12

Wine sector ............................................................................................................ 13

Olive groves ........................................................................................................... 14

Honey..................................................................................................................... 14

EAGGF Guarantee Section expenditure on implementation of the measures........... 15

Derogations applicable to structural measures......................................................... 15

National system of controls .................................................................................... 16

Evaluation report .................................................................................................... 18

Economic Impact.................................................................................................... 20

Conclusions............................................................................................................ 26

ANNEX 1 Regulations adopted at 31 December 1995.......................................................... 28

1.

Framework Regulation ........................................................................................... 28

2

2.

(1)

(2)

3.

Detailed rules of application ................................................................................... 28

Specific supply arrangements: ................................................................................ 28

Measures to support local products......................................................................... 29

Derogations applicable to structural measures......................................................... 31

ANNEX 2 Administrative acts adopted to implement the measures...................................... 32

1.

2.

3.

Specific supply arrangements ................................................................................. 32

Measures to support local products......................................................................... 32

Derogations applicable to structural measures......................................................... 34

ANNEX 3 Aid for supply – summary table .......................................................................... 35

ANNEX 4 Summary table – aid for local production............................................................ 36

3

PREFACE

This document combines both the annual report on the implementation of the specific
agricultural measures applied in the Aegean islands for the years 1996 and 1997 as well as a
general report on the impact these measures had on the economic situation of the islands.

These two reports are foreseen by Article 15(1 and 2) of Regulation (EEC) No 2019/93.

4

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) No 2019/933.

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.

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
implementation of the programme during 1993 and 1994 (COM(96) 387 final).

to Parliament and the Council on the

In 1998 the Commission presented the second report to Parliament and the Council on the
implementation of the programme during 1995 (COM(1998) 292 final).

1

2

3

SEC(92) 36 final of 13 January 1992.
COM(92) 569 final of 23 December 1992.
OJ L 184, 27.7.1993, p. 1.

5

This report covers the implementation during 1996 and 1997.

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.

In accordance with Article 15(2) of Regulation (EEC) No 2019/93, the Commission is required to
present a general report on the economic situation of the Aegean islands, showing the impact of the
measures implemented. To this purpose an evaluation report was commissioned and carried out by
an independent consultant (Speed Ltd) and its results are shown in points 7 and 8 below.

2.

MEASURES PROVIDED FOR IN REGULATION (EEC) 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 EUR
25 million in 1996 and EUR 24,3 million in 1997 (EUR 21 million and EUR 20,4 million
under heading B1-1833 for plant products in 1996 and 1997 respectively, and EUR
4 million and EUR 3,9 million under heading B1-2513 for livestock products for 1996 and
1997 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 final 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 transport 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 Thassos, 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.

6

The islands and prefectures belonging to group B (distant islands) are the Prefectures of the
Dodecanese, Khios, Lesvos 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 EUR 15/t and EUR 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
digressive (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:

Unit aid

(EUR/t)

(1)

(2)

(1)

(2)

15
18,11

30
36,22

Balance
fixed
(t)

(3)

1 000

(3)

3 000

4 000

Table 1

1996

Outturn

Quantity
(t)

0

0

0

%

0

0

0

Total cost
(EUR ‘000)

0

0

0

Balance
fixed
(t)

(4)

300

(4)

600

900

1997

Outturn

Quantity
(t)

0

0

0

%

0

0

0

Total cost
(EUR ‘000)

0

0

0

Regulation (EEC) No 2958/93 of 27 October 1993.
Regulation (EC) No 1802/95 of 25 July 1995: as from 1.2.1995 the correcting factor (1,207509)
for agricultural conversion rates was abolished and consequently amounts fixed in ecus were
adjusted.
Regulation (EC) No 3004/94 of 9 December 1994.
Regulation (EC) No 206/97 of 3 February 1997.

Group of
islands

A

B

Total

(1)

(2)

(3)

(4)

There was no interest shown by the dairy suppliers for this measure during 1996 and 1997.
This outcome was expected following the poor implementation performance of previous
two years. The industry maintains that the high cost of the special labelling of each pot (a
national provision requirement to show that the product is subsidised by the EAGGF) in
relation to the low rate of aid in terms of the product’s value prevents it from passing on
the aid to the end user.

The Greek authorities consider that an increase in the unit aid to offset the extra cost of the
labelling and the introduction of some flexibility at the time when the certificates for aid
are approved might contribute to the improvement of this measure.

4

Since 01.02.1995 when the correcting factor (1,207509 at the time) for the agricultural conversion rates was
abolished, the aid was adjusted to EUR 18,11/t and EUR 36,22/t respectively.

7

(2)

Sugar

Progress in implementation:

Table 2

Group of
islands

A

B

Total

(1)

(2)

(3)

(4)

Unit aid

(EUR/t)

(1)

(2)

(1)

(2)

15
18,11

30
36,22

Balance
fixed
(t)

(3)

3 000

(3)

9 000

12 000

1996

Outturn

Quantity
(t)

159

418

577

%

5,3

4,64

4,81

1997

Total cost
(EUR ‘000)

Balance
fixed
(t)

Quantity
(t)

Outturn

%

Total cost
(EUR ‘000)

2,88

(4)

600

145

24,17

2,63

15,14

18,02

(4)

9 000

9 600

6 340

6 485

70,44

67,55

229,64

232,26

Regulation (EEC) No 2958/93 of 27 October 1993.
Regulation (EC) No 150/95 of 23 January 1995: as from 1.2.1995 the correcting factor (1,207509)
for agricultural conversion rates was abolished and consequently amounts fixed in ecus were
adjusted.
Regulation (EC) No 1160/96 of 26 June 1996.
Regulation (EC) No 1274/97 of 1 July 1997.

The Greek Sugar Industry (GSI) is the major supplier of the product. In 1995 it supplied
92% against 8% of the smaller sugar traders. The low use of the fixed balance of local
production/needs in 1996 is due to the GSI’s abstention from the aid scheme.

According to the Greek authorities’ view this situation has improved in 1997 because the
GSI has re-organised its supply system and increased its participation in the aid scheme
(67,55%), despite the low supplies made to the islands from group A.
It is deemed by the same view that there exists the potential for increased supplies to the
islands of group A given the presence on these islands of renown small companies
producing sugar based products.

(3)

Wheat flour

Progress in implementation:

Unit aid

(EUR/t)

15 (1)
18,11 (2)
30 (1)
36,22 (2)

Table 3

1996

Balance
fixed
(t)

Quantity
(t)

Outturn

%

Total cost
(EUR ‘000)

Balance
fixed
(t)

Quantity
(t)

10 000 (3)

8 082

80,82

146,37

11 000 (4)

6 364

30 750 (3)
40 750

30 750
38 832

100
95,29

1113,77
1260,13

40 000 (4)
51 000

37 419
43 783

1997

Outturn

%

57,85

93,55
85,85

Total cost
(EUR ‘000)

115,25

1 355,32
1 470,57

Regulation (EEC) No 2958/93 of 27 October 1993.
Regulation (EC) No 150/95 of 23 January 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.
Regulation (EC) No 2949/95 of 20 December 1995.
Regulation (EC) No 2416/96 of 18 December 1996.

Group
of
islands

A

B

Total

(1)

(2)

(3)

(4)

Implementation is progressing satisfactorily even though for the islands in group A there is
a lower (58%) utilisation of the 1997 balance compared to that of 1996.

The Greek authorities attribute the successful implementation of this measure to the
healthy competition between the big suppliers from the mainland participating in this aid
scheme as well as to the efficient
that characterises the transportation of
commodities with high specific weight such as flour and sugar.

factor

8

(4)

Feedingstuffs

The following table shows,
this measure is proceeding very
satisfactorily, particularly for the islands in group B, and for some products it approaches
99% of the forecast supply balance.

implementation of

Barley produced on the island 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. The
low out-turn is due to the reduction of Lesvo's supplies from Limnos because, according to
the Greek authorities, the barley supplies from the mainland northern ports Alexandroupoli
and Kavala to Lesvos are more competitive since they benefit with the group B rate of aid.

Table 4

1996

Outturn

Quantity
(t)
4 929

661

%

Total cost

49,29

5,51

89,26

11,97

850

85,00

15,39

Balance
fixed
(t)

(3)

(3)

10 000

12 000

(3)

1 000

Group
of
islands

Product

Unit aid
(EUR/t)

grain cereals

barley from
Limnos

residues and waste
from food
industries

preparations used
in animal feeding

(1)

15

(3)

1 000

720

72,00

13,04

lucerne and fodder

(2)

18,11

(4)

1 000

0

0,00

0

(EUR ‘000)

1997

Outturn

Quantity
(t)
5 783

1 130

%

Total cost

79,22

22,60

104,73

20,46

3 700

92,50

67,01

1 000

40,00

18,11

0

0,00

0

Balance
fixed
(t)

(5)

(5)

7 300

5 000

(5)

4 000

(5)

2 500

(6)

1 000

Total 1

grain cereals

residues and waste
from food
industries

preparations used
in animal feeding

lucerne and fodder

Total 2

Total

25 000

7 160

(3)

30 750

30 694

28,64

99,82

129,67

19 .800

11 613

58,80

210,31

1 111,74

(5)

41 750

41 700

99,88

1 510,37

(1)

30

(3)

16 500

16 475

99,85

596,72

(3)

6 500

(4)

2 000

(2)

36,22

6 458

99,35

233,91

1553

77,65

56,25

(5)

26 300

(5)

12 000

(6)

2 450

26 000

98,86

941,72

12 000

100

434,64

2315

94,49

83,85

55 750

55 180

98,98

1998,62

82 500

82 015

99,41

2 970,58

80 750

62 340

77,20

2 128,29

102 300

93 628

91,52

3 180,89

Regulation (EEC) No 2958/93 of 27 October 1993.
Regulation (EC) No 150/95 of 23 January 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.
Regulation (EC) No 2949/95 of 20 December 1995.
Regulation (EC) No 258/96 of 12 February 1996.
Regulation (EC) No 2416/96 of 18 December 1996.
Regulation (EC) No 87/97 of 20 January 1997.

9

A

B

(1)

(2)

(3)

(4)

(5)

(6)

(5)

Fruit and vegetables

Progress in implementation:

Group
of
islands

Products

Unit aid
(EUR/t)

Potatoes

Vegetables

Fruit

Total 1
Potatoes

Vegetables

Fruit

Total 2
Grand total

A

B

(1)

(2)

(3)

(4)

Table 5

1996

Outturn

Quantity
(t)
0

0

0

%

0

0

0

Total
cost
0

0

0

0
1 406

0
14,06

0
20,37

1 022

19,28

14,81

2 289

4 717
4 717

30,54

20,67
16,37

33,17

68,35
68,35

Unit aid
(EUR/t)

(1)

3

(2)

3,62

(1)

6

(2)

7,24

Balance
fixed
(t)
(4)

523

(4)

(375
(
(1 687
2 585
2 000

(4)

(4)

(4)

1 891

(4)

3 700
7 591
10 176

(EUR ’000)

1997

Quantity
(t)
402,90

(559,10
(
(502,70

Outturn

%

Total
cost

77,04

1,46

51,49

3,84

1 464,70
102,00

56,66
5,10

253,40

13,40

982,20

26,55

5,30
0,74

1,83

7,11

1 337,60
2 802,30

17,62
27,54

9,68
14,98

Balance
fixed
(t)
3 000 (3)

(1)

6

1 000 (3)

(2)

7,24

(1)

12

(2)

14,49

2 000 (3)

6 000
10 000

(3)

(3)

5 300

(3)

7 518
22 818
28 818

Regulation (EEC) No 2958/93 of 27 October 1993.
Regulation (EC) No 150/95 of 23 January 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.
Regulation (EC) No 2995/95 of 19 December 1995.
Regulation (EC) No 2432/96 of 18 December 1996.

In the case of fruit and vegetable supplies, implementation was intended to be
digressive 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, implementation of the measure is weak. 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)

Livestock

The following aid is granted to support the sector:

–

–

fattening aid for male bovine animals, equal to an additional EUR 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 EUR 40 per suckler cow held by the producer on the day of the
application, subject to a ceiling of 40 cows per holding.

10

Progress in implementation:

Type of aid

Aid for fattening male bovine animals
1st instalment
2nd instalment

Suckler cow premium
Total
(1)

Table 6

Unit aid

(EUR/head)

40 (1)
48,3 (2)

40 (1)
48,3 (2)

1996
Outturn

1997
Outturn

Quantity
(head)

Total cost
(EUR ‘000)

Quantity
(head)

Total cost
(EUR ‘000)

12 209

589,69

8 160
20 369

394,12
983,82

10 392
2 771

8 464
21 627

501,93
133,84

408,81
1 044,58

(2)

Regulation (EEC) No 2019/93 of 19 July 1993 and (EEC) No 2889/93 of 21 October 1993.
Regulation (EC) No 2417/95 of 13 October 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.

Implementation of the measure is progressing satisfactorily. As a result, 21-23% of
bovine animals qualifies each year for the second instalment of the fattening aid for
male bovine animals.

(2)

Milk products

Aid amounting to EUR 2.28/t/day 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.

Ladotyri

Graviera

Feta

Total

(1)

(2)

Progress in implementation:

Product

Unit aid

(EUR/t/day) Quantity

Table 7

1996
Outturn
Duration
days

150

150

Total cost
(EUR ‘000)

Quantity
(t)

0

5.78

158.40
164.18

0

0

320
320

1997
Outturn
Duration
days

Total cost
(EUR ‘000)

0

0

132
132

150

2.28 (1)
2.75 (2)
2.28 (1)
2.75 (2)
2.28 (1)
2.75 (2)

(t)

0

14

384
398

Regulation (EC) No 3393/93 of 10 December 1993.
Regulation (EC) No 1802/95 of 25 July 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.

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

11

(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
EUR 500/ha where the Member State contributes at least EUR 300/ha and if the
least EUR 200/ha. If the
individual producer or producer group contributes at
Member State’s and/or the producers' contribution is lower than those amounts, the
Community aid is reduced proportionally. The aid is increased by EUR 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 adjusted to EUR 603.75,
EUR 362.25, EUR 241.50 and EUR 120.75 respectively, due to abolition of the
corrective factor for agricultural conversion rates.

Implementation of this measure was expected at the end of 1995 but in actual fact it
was never implemented to date. Reasons for this failure are attributed to lack of
the local authorities responsible for publicising the measure and
personnel at
mobilising the farmers. The non-formation of producers
into groups and
consequently the non-compilation of initiatives programme. The lack of interest from
specialist companies to offer technical assistance and the small size of holdings,
which often have less than the minimum area necessary for implementation.

(4)

Potatoes

Flat-rate aid of EUR 494/ha 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

Potatoes

(1)

(2)

1996

1997

Balance
fixed
(ha)
3 200

Quantity
(ha)
1 544

Outturn

%

48,25

Total cost
(EUR ‘000)
772,60

Balance
fixed
(ha)
3 200

Quantity
(ha)
1 618

Outturn

%

50,50

Total cost
(EUR ‘000)
965,15

Unit aid
(EUR/ha)

(1)

(2)

494
596,51

Regulation (EEC) No 2019/93 of 19 July 1993 and (EC) No 3404/93 of 10 December 1993.
Regulation (EC) No 150/95 of 23 January 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.

Implementation is progressing fairly satisfactorily, attaining 48,25% and 50,5% of
the maximum in 1996 and 1997 respectively. The target of 3 200 ha was probably
not achieved because of the minimum holding requirement of 0.2 ha laid down to
qualify under the measure.

12

(5)

Wine sector

–

Area under vines

Flat-rate aid of EUR 394.83/ha is granted for the continued cultivation of vine
varieties geared to local production of quality wines psr.

Progress in implementation:

Crop

Areas under vines

Unit aid
(EUR/ha)

(1)

(2)

394.83
476.76

Table 9

1996
Outturn

1997
Outturn

Quantity
(ha)
5 156,58

Total cost
(EUR ‘000)
2 458,45

Quantity
(ha)
5 143,46

Total cost
(EUR ‘000)
2 452,20

(1)

(2)

Regulation (EC) No 3112/93 of 10 November 1993.
Regulation (EC) No 2537/95 of 30 October 1995: as from 1.2.1995 the correcting factor (1,207509)
for agricultural conversion rates was abolished and consequently amounts fixed in ecus were
adjusted.

Implementation of the measure is progressing satisfactorily.

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

–

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 hl a year.

Progress in implementation:

Table 10

Product

Ageing of liqueur
wines

Unit aid
(EUR/hl/day)

0,0197
0,02379

(1)

(2)

Quantity
fixed
(hl)

1996

Outturn

Quantity
(hl)

Total cost
(EUR ‘000)

Quantity
fixed
(hl)

1997

Outturn

Quantity
(hl)

Total cost
(EUR ‘000)

40 000

65,25

0

40 000

67,50

0

(1)

(2)

Regulation (EC) No 3112/93 of 10 November 1993.
Regulation (EC) No. 2537/95 of 30 October 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.

Progress in implementation has been very poor as local production is currently being
disposed of quickly on the market. In 1996 storage was interrupted so no aid was
paid. In March 1997 a quantity of 67,5 hl went into storage. 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.

13

(6)

Olive groves

Fixed-rate aid of EUR 120/ha/year 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::

Crop

Olive groves

Unit aid
(EUR/ha)

(1)

(2)

120
144.90

Table 11

1996

Outturn

1997

Outturn

Quantity
(ha)
93 660,11 (3)

Total cost
(EUR ‘000)
13 571,35

Quantity
(ha)
94 063,79 (3)

Total cost
(EUR ‘000)
13 629,84

(1)

(2)

(3)

Regulation (EEC) No 2019/93 of 19 July 1993.
Regulation (EC) No 150/95 of 23 January 1995: as from 1.2.1995 the correcting factor
(1,207509) for agricultural conversion rates was abolished and consequently amounts fixed in
ecus were adjusted.
Regulation (EC) No 2813/94 of 18 November 1994. Density 80 trees/ha.

Progress in the measure is very satisfactory.

(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
under which quality honey is marketed and promoted. The aid amounts to
EUR 10/hive/year subject to a maximum of 50 000 hives/year. For a transitional
period of two years (1993,1994) while groups were established and recognised, aid
of EUR 7/hive was granted to any bee-keeper with at least 10 hives, and was subject
to a maximum of 100 000 hives.

Progress in implementation::

Table 12

1996

Outturn

Quantity
(hives)

Total cost
(EUR ‘000)

Balance fixed
(hives)

Balance fixed
(hives)

1997

Outturn

Quantity
(hives)

Total cost
(EUR ‘000)

50 000

72.574

876,70

50 000

75 501

604,00

Unit aid
(EUR/hive)

(1)

10
12.08

(2)

Regulation (EC) No 3063/93 of 5 November 1993.
Regulation (EC) No 2362/95 of 9 October 1995: as from 1.2.1995 the correcting factor (1,207509) for
agricultural conversion rates was abolished and consequently amounts fixed in ecus were adjusted.

Hives

(1)

(2)

It is observed that in both years the quantities approved exceeded the fixed balances
and as a consequence a reduction factor was applied 0,311048 for 1996 and 0,337757
for 1997.

In 1996, six groups comprising 912 members received the aid after the national
authorities approved their programmes. In 1997 nine groups submitted programmes
for aid.

14

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 1996 and 1997 is as follows.

Products

plant
animal
Total

Table 13

EUR million

Expenditure declared and charged

1996
18.66
0.97
19.63

1997
21.27
1.16
22.43

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

5.

(1)

DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES

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 EUR 25

15