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 1998 and 1999.
Date: 2002-10-07
Institutions: European Commission
Subjects: Aegean Islands, agricultural product, aid per hectare, aid system, supply, supply balance sheet

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 07.10.2002
COM(2002) 546 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 1998 and 1999

.

.

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 1998 and 1999

Table of contents

PREFACE .................................................................................................................................. 4

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 ................................................................................................................ 8

Fruit and vegetables ..................................................................................................... 9

3.2.

Measures to support local products.............................................................................. 9

(1)

(2)

(3)

(4)

(5)

(6)

(7)

4.

5.

6.

7.

Livestock ...................................................................................................................... 9

Milk products ............................................................................................................. 10

Fruit, vegetables and flowers ..................................................................................... 11

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

Wine sector ................................................................................................................ 12

Olive groves ............................................................................................................... 13

Honey ......................................................................................................................... 13

EAGGF Guarantee Section expenditure on implementation of the measures........... 14

Derogations applicable to structural measures........................................................... 14

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

Conclusions................................................................................................................ 19

2

ANNEX 1 Regulations adopted at 31 December 1995............................................................ 21

1.

2.

(1)

(2)

3.

Framework Regulation............................................................................................... 20

Detailed rules of application ...................................................................................... 20

Specific supply arrangements: ................................................................................... 20

Measures to support local products............................................................................ 21

Derogations applicable to structural measures........................................................... 22

ANNEX 2 Administrative acts adopted to implement the measures ....................................... 25

1.

2.

3.

Specific supply arrangements .................................................................................... 23

Measures to support local products............................................................................ 23

Derogations applicable to structural measures........................................................... 24

ANNEX 3 Aid for supply – summary table............................................................................. 26

ANNEX 4 Summary table – aid for local production.............................................................. 27

3

PREFACE

This annual report on the implementation of the specific agricultural measures applied in the
Aegean  islands  for  the  years  1998  and  1999  is  foreseen  by  Article 15(1)  of  Council
Regulation (EEC) No 2019/93.

According  to  the  new  Article  15(2)  of  Council  Regulation  (EC)  No 442/2002  amending
Regulation  (EEC)  No 2019/93,  the  next  Commission  report  on  the  implementation  of  this
regulation is expected before the end of 2005.

Therefore the present report is the last of a series of annual reports as provided for under the
previous Article 15(1) 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 the
one  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. It is based
upon the annual report that the national administration submits to the Commission.

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

In  1998  the  Commission  presented  the  second  report  to  Parliament  and  the  Council  on  the
implementation of the programme in 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

                                                
In 1999 an evaluation report was commissioned and carried out by an independent consultant
(Speed  Ltd)  and  in  February  2001  its  results  were  included  in  the  Commission  report
presented to Parliament and the Council on the implementation of the programme in 1996 and
1997 (COM(2001) 64 final).

As  a  consequence  of  that  report,  the  Commission  submitted  a  proposal  COM(2001) 638  of
7 November  2001  to  the  Council  in  which  it  proposes  the  amendment  of  Regulation  (EEC)
No 2019/93 (see relevant paragraph in the conclusions).

The present report covers the implementation during the years 1998 and 1999 and is based on
the corresponding reports from the Ministry of Agriculture.

The  late  preparation  of  the  report  is  due  to  the  national  administration’s  difficulties  in
collecting  all  the  information  needed  to  compile  it  from  the  regional  offices  in  the  islands.
These difficulties seem to continue to the present day.

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.  A
total of EUR  23 million  in  1998  (EUR 22  million  under  heading  B1-1832  for  plant
products and EUR 1 million under heading B1-2512 for livestock products). In 1999
these  specific  headings  were  amended  and  the  total  of  EUR  24,67  million  for  that
year  was  recorded  as  EUR 5,68 million  under  heading  B1-3230  for  the  supply
arrangements  measure  (EUR 5,66 million  for  plant  products  and  EUR 0,02 million
for  livestock  products)  and  EUR 18,99 million  under  heading  B1-3231  for  other
measures  (EUR 17 million  for  plant  products  and  EUR 1,99 million  for  livestock
products);

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.

6

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.

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:

Group of
islands

A

B

Total

Unit aid

(EUR/t)

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

Balance
fixed
(t)

300 (3)

600 (3)
900

Table 1

1998

Outturn

Quantity
(t)

0

0

0

%

0

0
0

Total cost
(EUR ‘000)

0

0
0

Balance
fixed
(t)

0

0
0

1999

Outturn

Quantity
(t)

0

0
0

%

0

0
0

Total cost
(EUR ‘000)

0

0
0

(1)
(2)

(3)

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 EUR were adjusted.
Regulation (EC) No 2491/97 of 12 December 1997.

For  the  third  year  running  the  dairy  suppliers  for  this  measure  showed  no  interest
during  1998  and  consequently  the  Commission  for  1999  fixed  no  balance.  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.

4

Since  1.2.1995  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:

Group of
islands

A

B

Total

Unit aid

(EUR/t)

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

Table 2

1998

1999

Balance
fixed
(t)

Quantity
(t)

600 (3)

165

9 000 (3)
9 600

7 409,47
7 574,47

Outturn

%

27,50

82,33
78,90

Total cost
(EUR ‘000)

Balance
fixed
(t)

Quantity
(t)

Outturn

%

Total cost
(EUR ‘000)

2,99

600 (4)

158

26,33

2,86

268,37
271,36

9 000 (4)
9 600

6 481,4
6 639,4

72,02
69,16

234,76
237,62

(1)
(2)

(3)
(4)

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 EUR were adjusted.
Regulation (EC) No 1320/98 of 25 June 1998.
Regulation (EC) No 1435/99 of 30 June 1999.

Although the Greek Sugar Industry (GSI) remains the major supplier of the product,
co-operatives and super-market chains have started joining the scheme. However, the
impact of the benefit of the aid at the level of the end user was difficult to prove for
this sector.

(3)

Wheat flour

Progress in implementation:

Unit aid

(EUR/t)

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

Group
of
islands

A

B

Total

Table 3

1998

Balance
fixed
(t)

Quantity
(t)

Outturn

%

Total cost
(EUR ‘000)

Balance
fixed
(t)

Quantity
(t)

1999

Outturn

%

Total cost
(EUR ‘000)

11 000 (3)

5 148,15

46,80

93,23

11 000 (4)

5 444,00

49,49

98,59

40 000 (3)
51 000

30 148,60
35 296,75

75,37
69,21

1 091,98
1 185,21

40 000 (4)
51 000

29 971,50
34 415,50

74,93
67,48

1 085,57
1 184,16

(1)
(2)

(3)
(4)

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 EUR were adjusted.
Regulation (EC) No 1960/98 of 15 September 1998.
Regulation (EC) No 2782/98 of 22 December 1998.

Implementation progressed at a moderate pace in the course of these two years. Use
of  the  balances  in  1994,  1995,  1996  and  1997  was  93,29%,  95,23%,  95,29%  and
85,85% respectively.

(4)

Feedingstuffs

Implementation of this measure is depicted in the table that follows for the different
categories  of  animal  feed.  Progress  appears  to  be  satisfactory,  particularly  in  the
islands of group B.

Lesvos  and Chios replaced their  source  of  barley  supply  (island  of  Limnos),  by  the
mainland  northern  ports  Alexandroupoli  and  Kavala.  According  to  the  Greek
authorities,  the  barley  supplies  from  these  ports  to  Lesvos  an  Chios  are  more
competitive since they benefit with the higher group B rate of aid. To compensate for
this  loss  of  market  for  the  barley  produced  in  Limnos  the  Ministry  report  proposes
that  the  barley  from  Limnos  qualify  for  the  group  B  rate  of  aid,  irrespective  of  the

8

island  of  destination.  The  same  report  repeats  the  request  to  include  the  island  of
Gavdos in the group B of islands.

Group
of
islands

Product

Unit aid
(EUR/t)

Balance
fixed
(t)

grain cereals

barley from Limnos

A

residues and waste
from food industries

preparations used in
animal feeding

15 (1)

18,11 (2)

8 000 (3)

5 000 (3)

5 000 (3)

Table 4

1998

Outturn

%

49,82

41,40

78,96

Quantity
(t)

3 985,85

2 070

3 948

(EUR ‘000)

Balance
fixed
(t)

1999

Outturn

Quantity
(t)

%

8 000 (5)

4 026,10

50,33

5 000 (5)

310

0,06

Total
cost

72,91

5,61

5 000 (5)

4 553,69

91,01

82,47

Total
cost

72,18

37,49

71,50

2 500 (3)

1 322,40

52,90

23,95

2 000 (5)

997,86

49,89

18,07

lucerne and fodder

1 000 (4)

170

17,00

3,08

1 000 (5)

406,72

40,67

7,37

Total 1

grain cereals

residues and
waste from
food industries

preparations used in
animal feeding

B

30 (1)

36,22 (2)

21 500

11 496,25

53,47

208,20

21 000

10 294,37

49,02

186,43

50 000 (3)

41 173,80

82,35

1 491,32

60 000 (5)

59 097,70

98,50

2 140,52

35 000 (3)

28 586,74

81,68

1 035,41

40 000 (5)

40 065,14

100,16

1 451,16

18 000 (3)

11 456,78

63,65

414,96

18 000 (5)

12 607,43

70,04

456,64

lucerne and fodder

5 000 (4)

0

0,00

0,00

5 000 (5)

2 545

50,90

92,18

Total 2

Total

108 000

81 217,32

75,20

2 941,69

123 000

114 315,27

92,94

4 140,50

129 500

92 713,57

71,59

3 149,89

144 000

124 609,64

86,53

4 326,93

(1)
(2)

(3)
(4)
(5)

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 EUR were adjusted.
Regulation (EC) No 1960/98 of 15 September 1998.
Regulation (EC) No 2064/98 of 28 September 1998.
Regulation (EC) No 2782/98 of 22 December 1998.

(5)

Fruit and vegetables

According  to  Article  3(2)  of  Regulation  (EEC)  No  2019/93,  aid  for  fruit  and
vegetables  were  to  be  paid  for  a  period  of  five  years  as  from  1993.  This  aid  was
intended to be digressive and to cover a limited time span (until 1997). So, in 1998
the  rate  of  aid  has  digressed  to  zero  and  therefore  the  measure  was  no  longer
applicable. The objective was to facilitate supplies to the islands for a period, pending
the  adaptation  of  local  production  through  specific  incentives  provided  for  in  the
programme.

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;

9

– 

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.

As from 26.6.1999 the aforementioned Regulation was replaced by Regulation (EC)
No 1254/1999 so Articles 4b and 4d correlate to Articles 4 and 6, respectively, in the
new Regulation.

Progress in implementation:

Type of aid

Aid for fattening male bovine animals
1st instalment

2nd instalment
Total bovine

Suckler cow premium

Table 6

Unit aid

(EUR/head)

40 (1)
48,3 (2)

40 (1)
48,3 (2)

1998

Outturn

1999

Outturn

Quantity
(head)

Total cost
(EUR ‘000)

Quantity
(head)

Total cost
(EUR ‘000)

10 392

501,93

10 199

492,61

2 771
13 163

133,84
635,77

1 136
11 335

54,87
547,48

8 476

409,39

7 998

386,30

21 639

1 045,16

19 333

933,78

Total

(1)
(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  seems to  settle  around  the  average  of  the  last  seven
years  which  is  12 000  animals  for  bovine  and  8 000  for  suckler.  The  percentage  of
bovine  animals  that  qualified  for  the  second  instalment  was  26,7%  and  11,1%  for
1998 and 1999 respectively.

(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.

10

Progress in implementation:

Product

Unit aid

(EUR/t/day) Quantity

(t)

Table 7
1998
Outturn
Duration
(days)

Total cost
(EUR ‘000)

1999
Outturn
Duration
(days)

Quantity
(t)

Total cost
(EUR ‘000)

2,28 (1)
2,75 (2)
2,28 (1)
2,75 (2)
2,28 (1)
2,75 (2)

0

0
36
80
168
284

0

0
124
147
150
–

0

0

0
12,28
32,34
69,30
113,92

0
30
45
169,5
244,5

65 – 127
65 – 132
87 – 150
–

0

0
6,36
9,16
55,62
71,14

Regulation (EEC) 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.

Ladotyri

Graviera

Feta

Total

(1)
(2)

(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
individual  producer  or  producer  group  contributes  at  least  EUR 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 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
personnel  at  the  local  authorities  responsible  for  publicising  the  measure  and
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. The measure proved
too heavy and non-adaptable to the local conditions.

11

(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:

Crop

Unit aid

(EUR/ha)

Potatoes

494 (1)
596,51 (2)

Table 8

1998

Ceiling
fixed
(ha)

Quantity
(ha)

Outturn

%

Total cost
(EUR ‘000)

Ceiling
fixed
(ha)

1999

Outturn

%

Quantity
(ha)

Total cost
(EUR ‘000)

3 200

1 371

42,84

817,81

3 200

1 797

56,15

1 071,92

(1)
(2)

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 seems to have attained 42,84% and 56,15% of the target (3 200ha) in
1996 and 1997 respectively. This aid programme for potatoes is deemed positive and
has contributed to a slight increase of the local potato production.

(5)

Wine sector

– 

Area under vines

A  flat-rate  aid  of  EUR 394,83/ha  is  granted  for  maintaining  the  cultivation  of  vine
varieties geared to local production of quality wines psr.

Progress in implementation:

Crop

Areas under vines

Unit aid
(EUR/ha)

394,83 (1)
476,76 (2)

Table 9
1998

Outturn

1999

Outturn

Quantity
(ha)

5 084,81

Total cost
(EUR ‘000)

2 424,23

Quantity
(ha)

5 133,22

Total cost
(EUR ‘000)

2 447,31

(1)
(2)

Regulation (EEC) 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.

12

Progress in implementation:

Product

Unit aid

(EUR/hl/day)

Quantity
fixed
(hl)

Table 10
1998

Outturn

Quantity
(hl)

Total cost
(EUR ‘000)

Quantity
fixed
(hl)

1999

Outturn

Quantity
(hl)

Total cost
(EUR ‘000)

Ageing of liqueur
wines

0,0197 (1)
0,02379 (2)

40 000

0

0

40 000

0

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 1998 no storage took place so no aid was paid.
In March 1999 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.

(6)

Olive groves

Flat-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)

120 (1)
144,90 (2)

Table 11
1998

Outturn

1999

Outturn

Quantity
(ha)

Total cost
(EUR ‘000)

Quantity
(ha)

Total cost
(EUR ‘000)

93 927,76 (3)

13 610,13

95 205,87 (3)

13 795,33

(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. However the Ministry considers that the
rate  of  aid lies rather  at a  low  level  by  arguing  that  good  production  conditions  are
attained  through  manual  work  rather  than  the  use  of  machinery.  The  labour  cost
constitutes  46%  of  the  total  cost  of  production  unit  whereas  the  use  of  machinery
3,5%. However, this aid contributes satisfactorily in the maintenance of olive groves.

(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.

13

Progress in implementation:

Hives

(1)
(2)

Table 12
1998

Outturn

Quantity
(hives)

Total cost
(EUR ‘000)

Balance
fixed
(hives)

Balance
fixed
(hives)

1999

Outturn

Quantity
(hives)

Total cost
(EUR ‘000)

50 000

82 392

603,89

50 000

106 412

603,93

Unit aid

(EUR/hive)

10 (1)
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.

It is observed that in both years the quantities approved exceeded the fixed balances
and as a consequence a reduction factor was applied: 0,3931 for 1998 and 0,5301 for
1999.

The Ministry is of the opinion that as the number of producer organisations willing to
undertake  to  carry  out  annual  programmes  of  initiatives  rises  steadily  it  becomes
necessary  to  increase  the  maximum  of  hives/year  at  least  by  doubling  the  initial
number.

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  hand,  expenditure  declared  and  charged  to  the
EAGGF Guarantee Section per budget year in 1998 and 1999 is as follows.

Products

plant
animal
Total

Table 13

EUR million

Expenditure declared and charged

1998
21,1
1,1
22,2

1999
21,3
1,5
22,8

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

5.

(1)

DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES

Notwithstanding Articles 5, 6, 7, 10 and 19 of Council 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:

5

OJ  L  218,  6.8.1991,  p.  1.  Regulation 
(OJ L 142, 2.6.1997, p. 1).

last  amended  by  Regulation 

(EC)  No 950/97

14

                                                
– 

– 

– 

– 

– 

– 

– 

– 

– 

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 25 000. 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  provisions  in  the  previous  three  indents  apply  only  insofar  as  livestock
production  is  undertaken  in  a  manner  compatible  with  animal  welfare  and
environmental protection requirements;

the  compensatory  allowance,  in  the  case  of  cattle  farming,  may  be  raised  to
EUR 180,5/LU  for  up  to  a  maximum  of  EUR 3 540  per  holding  in  1993;  the
compensatory allowance may be granted on the islands for all vegetable crops,
as long as they are cultivated in a manner compatible with the requirements of
environmental protection and subject to a maximum amount of EUR 3 540 per
holding for 1993;

when the compensatory allowance for all the less-favoured areas is calculated,
account may be taken, up to a maximum of 20 livestock units, of cows whose
milk is intended for the market within that region;

in the case of  the setting up of a  young  farmer, the  condition  that the  holding
must  achieve  at  the  latest  two  years  after  the  setting  up  a  volume  of  work
equivalent to at least one MWU is not required.

(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.

15

Progress in implementation:

Table 14
1998
Estimated additional
cost to EAGGF
(EUR ‘000)

139

1 148

2 121

30

0

151

Number

138

238

1 215

3

0

136

Number

168

381

1 178

0

1

525

1999

Estimated additional cost
to EAGGF
(EUR ‘000)

171

2 078

2 307

0

6

1 502

16 615

9 300*

18 830

11 990*

Improvement plans for non-farmers

Improvement plans for young 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

Compensatory allowance * (includes
basic amount plus derogation)

Processing/marketing

8

Total

1 195

14 084

12

968

19 022

6.

NATIONAL SYSTEM OF CONTROLS

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.

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.

16

Type of measure

Table 15

Checks
conducted
(number, ha, t,
applications,
etc.)

Checks as
% of
applications,
quantities
or areas

Number of
irregularities
observed

Remarks

Supplies

Local
production

Supplies

Prefecture

Year

1. Lesbos

1998

2. Samos

3. Dodecanese

1999

1998
1999
1998

1999

4. Kiklades

1998

1999

1998
1999

1998

1999

1998

1999
1998

5. Khios

6. Evros
(island of
Samothrace)

7. Evvia

8. Magnisia

9. Kavala

10. Pireas

animal feedingstuffs
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
animal feedingstuffs
animal feedingstuffs
supply arrangements
supply arrangements
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
sugar
wheat flour
animal feedingstuffs
animal feedingstuffs
animal feedingstuffs
animal feedingstuffs
animal feedingstuffs
animal feedingstuffs

animal feedingstuffs

animal feedingstuffs
animal feedingstuffs
animal feedingstuffs

wheat flour

1999

wheat flour

1998
1999
1998
1999

-
supply arrangements
-
-

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
0
0
0

0

0
0
0

0

0
0
-
-

-
-
-
-
14%
17%
13%
-
47%
-
-
-
-
-
-
100%
100%
-
38%
100%
-
12%
-
-
34%
-
-
40%
35%
40%
39%
40%
40%
-
68%
80%
55%
-

37%
15%
100%
-

10%
-
10%
100%
-
-
-
70%
-
-

2
2
4
-
11
2
2
45
47
12
2
4
8
2
10
18
2
12
-
-
-
6
3
7
9
1
3
15
17
15
24
17
17
-
-
-
-
7

22

-
14

16
-
-
-
-
-
-
9
-
-

17

potatoes
potatoes
potatoes

olive groves

olive groves

olive groves
bovine

olive groves
-

-
-

Local
produc-
tion

-

port
store-rooms + port
store-rooms + port
-
-
-
-
-
-
-
-
port
-
-
store-rooms + port
store rooms
-
port
-
-
port
-
-
store rooms
store rooms
store rooms
store rooms
store rooms
store rooms
administrative only
on-the-spot checks
on-the-spot checks
on-the-spot checks
on-the-spot checks and administrative

store-rooms + port
store-rooms + port
-
on-the-spot checks

on-the-spot checks
on-the-spot checks and administrative
on-the-spot checks
on-the-spot checks
on-the-spot checks and administrative
on-the-spot checks
administrative only
store-rooms + port
-
-

0
0

0

0

0
0

0

-
-

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.

The findings from the controls made by the Member State do not indicate any  irregularities.
However,  the  Commission's  services  audit  that  took  place  in  2000  and  2001  have  identified
major problems in the implementation of the measures. Examples are the  case of the aid for
the maintenance of olive groves, potatoes, vineyards and the specific supply measures.

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  with  vines  and  olive  groves  and  honey  production)  were  applied  from
1993.  The  supply  measures  were  applied  only  from  1994,  despite  a  50%  rise  in  the  aid  to
encourage speedy implementation.

In  1998  and  1999  implementation  of  the  supply  measures  averaged  70,97%  and  80,97%
respectively in relation to the forecast supply balances, and 72,97% and 84,29% in relation to
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,  wheat  flour
and sugar. Yoghurt  showed  a  zero  rate  of  implementation  for  these  two  years.  For  fruit  and
vegetables the aid has finally reached the end of its phasing out in 1998.

In  general  terms,  implementation  of  the  measures  in  support  of  local  products  progressed
satisfactorily. The exception was the measure for production of fruit, vegetables, and flowers
despite the planned progressive disappearance of the supply aid for these products in order to
encourage  fast  development  of  local  production  of  such  products  with  a  view  to  improving
availability of fruit and vegetables to the local market. The production of potatoes for human
consumption  and  seed  potatoes  showed  an  implementation  rate  in  relation  to  the  forecast  of
43%  and  56%  for  the  two  years  respectively.  Progress  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.

Again,  during  these  two  years,  the  best  performances  were  achieved  by  the  three  measures:
The maintenance of olive groves where the minimum density foreseen for the granting of the
aid was increased in 1995 from 50 trees/ha to 80 trees/ha. The cultivation of vineyards for the
production of quality wines VQPRD and the production of honey.

Progress  in  the  implementation  of  the  measures  for  fattening  male  bovine  animals,  the
maintenance of suckler cows was fairly satisfactory.

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, thus enabling more than 15 000 farmers to take advantage of the derogation
concerning  the  compensatory  allowance.  Also  enabling  more  than  3000  farmers  to  invest  in

18

their  holdings.  The  derogation  measure  from  processing  and  marketing  of  agricultural
products is showing 20 projects completed during this period.

In 1998 and 1999, a number of checks were conducted by the Greek authorities to see whether
the measures were applied properly. It is important that the co-ordination in the management
and monitoring of the programme is enhanced and controls on the passing on of the aid to
the consumer are increased.

Although overall progress in the programme seems to be satisfactory, the above observations
together with those of the independent evaluator call for some adjustments to the Regulation
(EEC) No 2019/93.

The  Greek  authorities  have  presented  requests  for  certain  measures  to  be  adapted.  The
Commission,  taking  into  account  some  of  these  requests  and  on  the  basis  of  its  own
assessment on the implementation of this Regulation, has examined the possibility of making
certain adjustments that will result from the following:

In the case of Specific Supply Arrangements:

– 

– 

– 

– 

the revision of the two rates of aid for groups A and B,

the revision of the classification of the islands into these groups,

the  feasibility  of  introducing  a  third  rate  of  aid  (or  group)  for  the  additional
transportation, unloading and reloading costs from main island ports to smaller island
ports,

the revision of the products list, namely whether to remove or maintain products such
as yoghurt, sugar and fruit & vegetables.

In the case of aid to local produce:

– 

– 

the revision of the products list, namely whether to remove or maintain products such
as milk products (concerns storage of cheese), fruit & vegetables, flowers, and from
the wine sector the storage of wines/liqueur wines.

the re-introduction of derogation from structural measures with regard to the rates
of financial assistance to final  recipients  for  investments in farming,  processing  and
marketing  through  an  amendment  of  Articles  7  and  28(2)  of  Regulation  (EC)
No 1257/1999.

All  the  above  have  been  included  in  the  Commission's  proposal  COM(2001) 638  of
29 November  2001.  This  proposal  has  been  discussed  within  the  Council  in  November  and
December  2001.  At  that  level  it  was  decided  to  add  a  couple  of  products  (wheat  for  human
consumption  and  cottonseeds  as  animal  feedingstuffs)  in  the  list  of  Supply  Arrangements.
Whereas in the assistance to Local Production it was decided the planned area for production
of potatoes for human consumption and seed potatoes to be reduced from 3 200 ha to 2 200 ha
and to increase the ceiling of bee hives to 100 000.

The  ESC  was  consulted  on  the  COM  proposal  on  16.1.2002  whereas  the  EP  gave  its
favourable opinion in its plenary session of 5.2.2002.

The Agricultural Council adopted the amended regulation in its meeting of 18.2.2002 and the
said  regulation  was  published  in  OJ L 68  of  12.3.2002  as  Council  Regulation  (EC)
No 442/2002.

19

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(1).

(1)

OJ L 184, 27.7.1993, p. 1.

2.

(1)

DETAILED RULES OF APPLICATION

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),

(1)

OJ L 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(1),  as amended by Commission
Regulation (EC) No 3004/94(2),
OJ L 283, 18.11.1993, p. 18.
(1)
OJ L 317, 10.12.1994, p. 4.
(2)

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,

(1)

OJ L 174, 26.7.1996, p. 27.

Commission  Regulations  No  1445/94  of  23 June  1994(1),  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,

(1)
(2)

OJ L 157, 24.6.1994, p 7.
OJ L 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)
(2)
(3)

OJ L 293, 27.11.1993, p. 34.
OJ L 290, 11.11.1994, p. 8.
OJ L 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  specific  measures  for  the  smaller  Aegean  Islands
concerning certain agricultural products(1),

20

– 

– 

– 

– 

– 

(1)

OJ L 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),

(1)

OJ L 132, 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),
(1)

OJ L 95, 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),

(1)

OJ L 274, 6.11.1993, p 12.

Commission  Regulations  (EEC)  No 3173/94  of  21 December  1994(1)  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,

(1)

OJ L 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).
(1)

OJ L 22, 31.1.1995, p. 1.

(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)

OJ L 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),
(1)

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.

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

21

– 

– 

– 

– 

– 

– 

regards the support measures for local products for the smaller Aegean islands
in the fruit, vegetable and flower sectors(1),

(1)

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),

(1)

OJ L 310, 14.12.1993, p. 7.

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)

OJ L 278, 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),

(1)

OJ L 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)
(2)
(3)

OJ L 260, 19.10.1993, p. 5.
OJ L 319, 21.12.1993, p. 22.
OJ L 298, 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),
(1)

OJ L 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).

(1)

OJ L 241, 10.10.1995, p. 12.

3.

DEROGATIONS APPLICABLE TO STRUCTURAL MEASURES

– 

– 

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

– 

Stockfarming:

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

23

– 

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 No 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  No 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  No 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.

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

24

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 1994-1999,

–  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

ANNEX 3
Aid for supply – summary table
(The EAGGF Guarantee Section covers 90% of the amounts mentioned in the table)

Product

Unit aid
(EUR/t)

Balance

Outturn

Balance

Quantity
(t)

Total cost

Quantity
(t)

Total cost

Quantity
(t)

Total cost

Outturn

Quantity
(t)

Total cost

Table 23

1998

1999

(EUR ‘000)

(a) Yoghurt

(b) Sugar

(c) Wheat flour

(d) Animal feedingstuffs

- grain cereals

-

residues  and  waste  of  food
industry

- preparations for animal feed

-

lucerne and fodder

(e) Fruit, vegetables and

potatoes

of which:

Grand total

total
of which:
group A
group B

total
of which:
group A
group B

total
of which:
group A
group B

total
of which:
group A
barley from Limnos
group B

group A
barley from Limnos
group B

group A
group B

group A
group B

group A
group B

total
of which:
group A
group B

group A
group B

18,11
36,22

18,11
36,22

18,11
36,22

18,11
18,11
36,22

18,11
18,11
36,22

18,11
36,22

18,11
36,22

18,11
36,22

0
0

900

300
600

9 600

600
9 000

51 000

11 000
40 000

129 500

16 500
5 000
108 000

8 000
5 000
50 000

5 000
35 000

2 500
18 000

1 000
5 000

0

0
0

27,16

5,43
21,73

336,85

10,87
325,98

1 648,01

199,21
1 448,80

4 301,13

298,82
90,55
3 911,76

144,88
90,55
1 811,00

90,55
1 267,70

45,28
651,96

18,11
181,10

0

0
0

0
0,00%
0
0

7 574,47
78,90%
165
7 409,47

35 296,75
69,21 %
5 148,15
30 148,60

92 713,57
71,59%
9 426,25
2 070
81 217,32

3 985,85
2 070
41 173,80

3 948
28 586,74

1 322,40
11 456,78

170
0

0
0%
0
0

0

0
0

271,36

2,99
268,37

1 185,21

93,23
1 091,98

3 149,89

170,71
37,49
2 941,69

72,18
37,49
1 491,32

71,50
1 035,41

23,95
414,96

3,08
0

0

0
0

191 000

6 313,15

33 400
157 600

604,88
5 708,27

135 584,79
70,97%
16 809,40
118 775,39

4 606,46
72,97%
304,42
4 302,04

26

0

0
0

9 600

600
9 000

51 000

11 000
40 000

144 000

16 000
5 000
123 000

8 000
5 000
60 000

5 000
40 000

2 000
18 000

1 000
5 000

10 176

2 585
7 591

204 600

32 600
172 000

0

0
0

336,85

10,87
325,98

1 648,01

199,21
1 448,80

4 835,37

289,76
90,55
4 455,06

144,88
90,55
2 173,20

90,55
1 448,80

36,22
651,96

18,11
181,10

64,32

9,36
54,96

6 820,23

590,39
6 229,84

0
0,00%
0
0

6 639,40
69,16%
158
6 481,40

34 415,50
67,48%
5 444
29 971,50

124 609,64
86,53%
9 984,37
310
114 315,27

4 026,10
310
59 097,70

4 553,69
40 065,14

997,86
12 607,43

406,72
2 545

2 802,30
27,54%
1 464,70
1 337,60

165 664,54
80,97%
15 896,37
150 768,17

0

0
0

237,62

2,86
234,76

1 184,16

98,59
1 085,57

4 326,93

180,82
5,61
4 140,50

72,91
5,61
2 140,52

82,47
1451,16

18,07
456,64

7,37
92,18

14,99

5,30
9,68

5 748,71
84,29%
287,88
5 460,83

ANNEX 4

Summary table – aid for local production

Product

Unit aid

Table 24

Forecast
quantity
(head, ha,
hl, t, etc.)

(EUR ‘000)

Outturn

1998

1999

Quantity

Total cost

Quantity

Total cost

1. Livestock production
Bovine animals (EUR/head)
- premium for fattening
- suckler cow premium

Total

- private storage of cheese

(EUR/t/day)

Total 1

2. Crop production
- aid for production of fruit and

vegetables (EUR/t)
- fruit and vegetables
- potatoes

- wine sector

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

(EUR/hl/day)

- olive oil sector:

flat-rate aid (EUR/ha)

48,3
48,3

13 163
8 476

635,77
409,39

21 639

1 045,16

11 335
7 998

19 333

2,75

5 000

284 (1)

113,92

244,5 (2)

1 159,08

547,48
386,30

933,78

71,14

1 004,92

603,75
596,51

476,76

0,02

3 200

0
1 371

0,00
817,81

0
1 797

0,00
1 071,92

5 084,81

2 424,23

5 133,22

2 447,31

0 (3)

0,00

67,50 (4)

0,00

144,90

40 000

93 927,76

13 610,13

95 205,87

13 795,33

- honey (EUR/hive)

12,08

50 000

82 392

603,89

106 412

603,93

Total 2

Grand total

17 456,06

18 615,14

17 918,49

18 923,41

(1)
(2)
(3)
(4)

36 t, 80 t and 168 t feta cheese. For 124 days, 147 days and 150 days respectively.
30 t, 45 t and 169,5 t feta cheese. For 65 to 127 days, 65 to 132 days and 87 to 150 days respectively.
Stored less than 2 years.
Storage since March 1999.

SEC(92) 36 final of 13 January 1992.
COM(92) 569 final of 23 December 1992.
OJ L 184, 27.7.1993, p. 1.
Since 1995 when the correcting factor for the agricultural conversion rates was done away with, the aid has been
EUR 18/t and EUR 36/t respectively.
OJ L 218, 6.8.1991, p. 1. Regulation last amended by Regulation (EEC) No 950/97 (OJ L 142, 2.6.1997, p. 1).

27