2002/972/EC: Council Decision of 28 November 2002 authorising the Greek Government to grant aid to cotton growers in Greece
Date: 2002-11-28
Institutions: Council of the European Union
Subjects: Greece, aid system, cotton, production aid

L 337/82

EN

Official Journal of the European Communities

13.12.2002

COUNCIL DECISION
of 28 November 2002
authorising the Greek Government to grant aid to cotton growers in Greece

(2002/972/EC)

(5)

(6)

loss of income jeopardises the viability of many cotton
farms in Greece and could have a very negative social
impact in the regions concerned.

In order to offset the reduction in income of the families
affected by the application of the stabiliser mechanism,
the Greek Government has envisaged granting aid to
those cotton producers who have complied with good
agricultural practice to meet the environmental require-
ments. The maximum amount of the aid concerned will
not exceed EUR 90 000 000.

Exceptional circumstances exist, making it possible to
consider, by way of derogation and to the extent strictly
necessary in order to remedy the situation of imbalance
recorded, such aid to be compatible with the common
market, on the terms specified in this Decision,

HAS ADOPTED THIS DECISION:

Article 1

Exceptional aid by the Greek Government
in the form of
payment for the 2001/2002 marketing year to cotton growers
in Greece who have observed good agricultural practices of
national
than
EUR 90 000 000 for the quantities produced recognised by the
Commission as eligible for aid under Regulation (EC) No 1398/
2002 shall be considered compatible with the common market.

compensation

totalling

more

not

This Decision is addressed to the Hellenic Republic.

Article 2

Done at Brussels, 28 November 2002.

For the Council
The President
M. FISCHER BOEL

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 88(2),
third subparagraph,
thereof,

Having regard to the request made by the Greek Government
on 14 October 2002,

Whereas:

(1)

(2)

(3)

(4)

In 2001 the Community aid scheme for cotton was
amended by the entry into force of Council Regulation
(EC) No 1051/2001 of 22 May 2001 on production aid
for cotton (1), which henceforth allows Member States to
take measures limiting the production of cotton for
environmental reasons. This new scheme introduced a
stricter co-responsibility mechanism than before. This
gave rise to serious problems in applying the scheme,
the detailed implementing rules of which are laid down
in Commission Regulations (EC) No 1591/2001 (2) and
(EC) No 1398/2002 (3).

The implementation of
the new scheme for cotton
harvested in 2001, for which yields per hectare were
extremely high, has meant that the total cotton produc-
tion levels for the 2001/2002 marketing year are very
in the
high, which has brought about a sharp cut
compensation paid pursuant
to Regulation (EC) No
1051/2001.

The Greek authorities excluded 206 365 tonnes of
unginned cotton from the quantity eligible for aid for
the period 2001/2002. However, Commission Regula-
tion (EC) No 1398/2002 set the quantity of unginned
cotton at 1 246 839 tonnes. Hence, application of the
stabiliser mechanism resulted in a reduction of Commu-
nity aid.

This reduction in aid consequently affected the incomes
of 93 405 farmers. Many of these farmers had made
considerable investments to meet
the environmental
requirements and observe good agricultural practice. The

(1) OJ L 148, 1.6.2001, p. 3.
(2) Commission Regulation (EC) No 1591/2001 of 2 August 2001
laying down detailed rules for applying the cotton aid scheme (OJ L
210, 3.8.2001, p. 10). Regulation as last amended by Regulation
(EC) No 1486/2002 (OJ L 223, 20.8.2002, p. 3).

the 2001/2002 marketing year,

(3) Commission Regulation (EC) No 1398/2002 of 31 July 2002 fixing,
for
the actual production of
unginned cotton in Greece and the resulting reduction of the guide
price and derogating,
from
certain management rules and aid award procedures in Greece (OJ L
203, 1.8.2002, p. 24).

for the 2001/2002 marketing year,