Proposal for a Council Regulation amending Regulation (EEC) No 1696/71 on the common organisation of the market in hops
Date: 2003-09-25
Institutions: European Commission
Subjects: common organisation of markets, hops

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 25.09.2003
COM(2003)562 final

2003/0216 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 1696/71
on the common organisation of the market in hops

(presented by the Commission)

EXPLANATORY MEMORANDUM

The present proposal concerns a modification of Council regulation (EEC) n° 1696/71 aiming
to extend the application of the production aid arrangement for hops for the harvest year 2004.

Indeed, the  Commission has to  submit  an  evaluation report to the  Council  by  31  December
2003,  relating  to  all  the  provisions  of  the  common  market  organisation.  This  report  will
consist  of  reform  proposals  which  should  not  enter  into  force  until  2005.  Therefore,  in  a
transition context, it is indispensable to provide for an extension of the Hops production aid
arrangement of one year.

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2003/0216 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 1696/71
on the common organisation of the market in hops

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the third
subparagraph of Article 37(2),

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the European Economic and Social Committee3,

Having regard to the opinion of the Committee of the Regions4,

Whereas:

(1)

(2)

(3)

Article 12(5)(a) of Council Regulation (EEC) No 1696/715 fixes the aid per hectare for
hops  produced  in  the  Community  for  a  period  of  eight  years,  from  the  1996  to  the
2003 harvests.

The  assessment  report  that  the  Commission  must  present  to  the  Council  by
31 December  2003  under  the  second  paragraph  of  Article  18  of  Regulation  (EEC)
No 1696/71,  will  cover  all  provisions  relating  to  the  common  organisation  of  the
market, in particular the production aid scheme. The assessment can be accompanied
by  proposals.  It  is  advisable  in  this  context  to  provide  for  a  detailed  debate  of  the
entire  sector.  In  order  to  ensure  a  thorough  debate,  the  period  for  which  the  aid  has
been fixed should be extended by one year.

A producer group can withhold up to 20% of the aid to finance special measures for
adjusting to the market and the amounts withheld can accumulate for a period of three
years.  As  it  is  proposed  to  extend  the  aid  scheme  for  a  year,  the  maximum
accumulation period should also be extended for a year.

(4)

Regulation (EEC) No 1696/71 should be amended as a result,

1

2

3

4

5

OJ C …, …, p. …
OJ C …, …, p. …
OJ C …, …, p. …
OJ C …, …, p. …
OJ  L  175,  4.8.1971,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  1514/2001  (OJ L 201,
26.7.2001, p. 8.).

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HAS ADOPTED THIS REGULATION:

Article 1

Article 12(5) of Regulation (EEC) No 1696/71 is hereby amended as follows:

1)

point (a) is replaced by the following:

"(a) The aid per hectare for hops shall be the same for all groups of varieties.  For

nine years from the 1996 harvest it shall amount to EUR 480/ha."

2)

point (d) is replaced by the following:

"(d) The aid withheld may be accumulated for a maximum period of four years; at

the end of that period all aid withheld must have been spent."

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its  publication  in  the
Official Journal of the European Union.

Article 2

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council
The President

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FINANCIAL STATEMENT

BUDGET HEADING:
B1-181

APPROPRIATIONS:
EUR 13 million

TITLE:
Council  Regulation  amending  Regulation  (EEC)  No  1696/71  on  the  common  organisation  of  the
market in hops

1.

2.

3.

4.

5.

5.0

5.1

LEGAL BASIS:
Article 37(2) of the Treaty

AIMS:
To extend the current aid scheme for a year

FINANCIAL IMPLICATIONS

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
-

NATIONAL

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

26 000 ha x EUR 480/ha = EUR 12.5 million

12 MONTH
PERIOD

(EUR million)
12.5

CURRENT
FINANCIAL
YEAR 2003
(EUR million)
-

FOLLOWING
FINANCIAL
YEAR 2004
(EUR million)
12.5

-

-

-

2005
-
-

2006
-
-

2007
-
-

2008
-
-

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN
THE RELEVANT CHAPTER OF THE CURRENT BUDGET?

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS
OF THE CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?

YES / NO

YES / NO

YES / NO

6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?

YES / NO

OBSERVATIONS:

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